An analysis of the article News in depth: Radio tunes out of Google in a rare miss for web titan — company misjudged capa of its technology to work beyond the Internet by Jessica E. Vascellaro
According to Vascellaro (2009) Google thought of creating a mechanism that would be used by chief marketing officers so that they would be able to measure, compare and spend dollars across print, radio, television and the Internet. It was thought that by creating this Internet mechanism, it would eliminate the intermediaries, specifically advertising agencies, thus entering the traditional ad markets. Although Google thought that this would be the case, they refused to negotiate prices ahead of time, such as the radio would have handled it.
Emmis Radio executive Rick Cummings met with Google executives and he recommended that adding zeros to the spot price would be better for airtime. Having this type of partnership with Emmis was thought that the online-advertising brainpower would make a change into the old-fashioned way of people performing business. Chad and Ryan Steelberg were teamed up with Google and Chad, in 2006, thought that because they had technology for transmitting, scheduling, and tracking radio ads, they were going to conquer the radio. This, however, was not the case. Google pulled the plug on the multibillion-dollar business of off-line ad sales.
Google misjudged the capacity of doing business without the human touch. Radio stations did not want to delve into performing business with set prices that were lower than their own prices and advertisers steered away from this endeavor. This does not mean that Google was a failure. It meant that it failed in this venture. Google, according to Vascellaro (2009), sells approximately one-third of all online ads in the U.S., by dollar amount. The radio venture was a small venture since they wanted to extend themselves to developing a successful model for selling ads linked to Internet searches through traditional media: print and television. It also retrieved from the newspaper ad-sales. It remains with the traditional media effort to sell television ads. Google claimed that they had "devoted substantial resources" to developing the radio and print ads but the impact was not as expected. Google Chief Executive Eric Schmidt stated that the efforts failed because Google did not come up with a good way to measure listener response. He stated that although the math was performed well on the computer, the sound had very little to desire.
Some of the customers did not like the fact that Google had its limitations, such as not being able to track down if the ads were driving sales. The Steelberg brothers did not measure up with Google’s engineer-heavy corporate culture.
Google and DMarc did not agree upon using the human touch element. This was a terrible decision from Google’s part. When humans are involved, automation does not necessarily fit the spectrum to approach and service the customers.
Google erred in both instances, in the strategy formulation and the strategy implementation. Had Google delved into using the human element and approached the prospective customers using a personalized approach, different would have been the results. This would have resulted in a new approach of seeking customers by using technology and the human touch.
Centeno (1989) attested to the fact that the human element should be included in all business transactions. This would lead to less errors in business transactions and business transaction failures, such as the Nestle Milk Powder in Africa (where many infants died), the Pinto car in Brazil (Pinto in Brazil means a small male organ), and the NOVA car in Venezuela (NOVA means it will not run). If the publicity and marketing teams had performed their research, these business transactions would not have failed, furthermore incurred in fatalities, such as it may be extrapolated that if the Google online advertising business transaction and strategies would have taken into account DMarc insistence in the human element outcomes may have been different – positive.
Centeno, M. (1989). Cultural sensitivity and the corporate world.
Dissertation. State College, PA: The Pennsylvania State University.