Thursday, January 15, 2009

SpotMixer Should Shed Light on Lost Opportunity

SpotMixer aquisition should connect the dots for local media. They should now see AdSense for content for what it is -- a Trojan horse.

Google has been positioned (first through adsense, then through radio advertising, now spot mixer, etc.) to own local ad spend. Meanwhile, TV and Newspapers have been helping Google (running adsense on their sites, sales partnerhsips) build relationships with local businesses. Every time a company signs up for adsense with a $50-$500 account, it is a new relationship for Google and a lost relationship for local media.

Local Media was focused on one or two $20MM deals with auto makers to support the core. They ignored the florist who has $500 to spend. They were winning a sprint but losing a marathon. In the end, it is a missed opportunity for local media, particularly newspapers.