Google said it was ending its radio project, Google Audio Ads, because it had failed to live up to expectations. Up to 40 people are expected to lose their jobs.
Google Audio Ads had faced challenges since it began in 2006, when Google acquired dMarc Broadcasting, a radio advertising technology company. The next year, the dMarc founders left Google amid culture clashes and a chilly reception to Google in the radio industry. Many radio stations feared that Google would turn their advertising business into a commodity. Some refused to do business with Google, while others offered Google only small slivers of their air time.
In April 2007, Clear Channel Radio, the largest radio station owner in America, agreed to let Google sell about 5 percent of its advertising space. The agreement included prime-time spots in major markets. Still, the program did not take off, as Google was not able to persuade a large number of its online advertisers to also advertise on radio.
The Google is still active in media buying for TV. But Google has not reached deals with any of the major cable companies.