Google to Target Us With dMarc

Google (Nasdaq: GOOG) announced today is acquiring radio advertising technology firm dMarc Broadcasting Inc. for $102 million in cash and contingent payments that could reach as high as $1.136 billion over the next three years. (See Google Buys Ad Firm.)

DMarc, once called dMarc Networks, is the company that pioneered the field of sending targeted text to car radios with LCD screens. The company also helps radio stations schedule ads, allowing them to fill all available inventory with spots automatically. But dMarc's master stroke was the text-ad distribution scheme, which essentially turned radio stations into wireless data providers. Radio stations use the technology today to send different text ads to different car radios, depending on what part of town the consumer is passing through. And they charge handsome prices for the privilege.

With dMarc, Google can show more ads to more people across more devices. The company says it will marry dMarc's technology with its own AdWords program -- a combo that will let advertisers pay a premium price to reach their prospective customers all over the place, be they online, in their cars, or just wearing a wireless phone or PDA.

The purchase also suggests Google is having to consider playing in other media to continue its growth. "Online advertising accounts for approximately 6% of overall advertising in 2005, likely to grow to only 8% by 2010..." writes Oppenheimer analyst A. Saša Zorovic, in a note to clients last week.

For phone companies and cable providers, Google's moves are always of interest, as folks wonder what communications services Google will commoditize using its vast network of dark fiber and collocation facilities. (See Video Lights Google's Fiber and Google's Own Private Internet.) The company is already using ad delivery to subsidize a metropolitan Wifi network, a free VOIP client, and a video store. (See Google's Ad-Mad Network , Google Plans Video Service, and Google Talks the Talk.)

— Phil Harvey, News Editor, Light Reading