The audio ad service was launched in 2006 to enable the buying and selling of radio ads via Google AdWords. However, the search company now feel that in spite of investing a lot of resources, these services have not actually managed to create the kind of impact that was expected and it would be better to discontinue these services.
Google's entry into radio advertising may not come as a complete surprise. The company hinted at such a move in January 2006, when it bought dMarc Broadcasting. The purchase cost the company approximately $1 billion, but it bought them a company that connects radio stations to advertisers via an automated system.
If Google radio ads actually catch on, they could have significant implications for the way radio ads are sold. That could be a good thing for an industry that saw April revenues, for example, drop 5 percent from a year ago, according to the Radio Advertising Bureau trade association.
Even though Google executives maintain that they are closing the audio ads service due to failed expectations, if one looks at all their other recent cut-backs - print ads, followed closely by the closure of Jaiku, Dodgeball and Notebook - it looks suspiciously like a move to try and keep up the profit margin and tide over the financial meltdown by sticking to what they know best - search.
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