Google is to cut up to 40 jobs after deciding to walk
away from its radio advertising business.
"We have decided to exit the broadcast radio business and focus
our effort on online streaming audio," said product management VP
Susan Wojcicki in a
blog posting.
"We have always accepted that if you take risks, not all of them
will pay off," she said.
The search firm launched Google Audio Ads and Google Radio
Automation in 2006 with the aim of extending its internet
advertising revenue success.
The launch followed Google's agreement to acquire dMarc
Broadcasting for $102m to get the technology to enable advertisers
to track their radio campaigns.
Google then integrated the dMarc technology into the Google
AdWords service to create its radio ad distribution channel for
advertisers.
The company is to phase out existing Google Audio Ads and
AdSense for Audio products by the end of May and sell the Google
Radio Automation business.
Google will now use its technology to develop internet-based
systems to deliver ads for the emerging market for advertising
through online streaming audio
The company will continue to invest in its TV advertising
business, but online advertising remains a key revenue stream that
Google expects to help it through the global economic downturn.
Google believes
online advertising will be immune from the budget cuts for TV
and print because ads alongside search results offer a measurable
return on investment.