Google ads will stream out to XM listeners

In what looks to be another accomplishment on its supposed quest for world domination, Google is expanding yet again. This time, the search-engine-turned-conglomerate is making way for AdWords customers to get their plugs into the ears of XM satellite radio listeners. In a deal between the two companies, XM will allow Google's AdWords clients to get their spots on whichever non-music XM channel they feel appropriate -- apparently not even Google had the wherewithal (or the desire) to get advertisers onto XM's "commercial free music channels." Having purchased dMarc Broadcasting for $102 million in Janurary, Google isn't a radio newcomer, and this signing provides a fairly enormous audience when combined with their plans for terrestrial radio (they're already advertising in Detroit). Google, presumably looking out for the little guys (and its profit margins), envisions satellite ads to be less expensive and more appealing to small businesses by cutting out the lengthy sales pitch typically found in plain 'ole AM / FM radio advertising. Aside from making the process of getting a commercial on the air much less painful, touting those "7 million XM subscribers" as potential buyers will likely attract a new wave of AdWords customers as well. So, what've they got their hands in now? Your Dell PC, a new internet, a vast supply of "dark fiber," WiFi in cities, and now satellites -- apparently the plan is coming together beautifully.

[Scabies @ Aug 3rd 2006 2:37PM]

Horrid. Ads on subscription services.
Then again, I get them on my DishNetwork... So boo on Google, but an understandable boo.

[Davix Baxtin @ Aug 3rd 2006 2:39PM]

Another reason to get SIRIUS satallite radio....NO ADS. You pay 10 bucks, you expect no ads and SIRIUS delivers.

[Jason @ Aug 3rd 2006 2:45PM]

F#@K Google

[Mack Swift @ Aug 3rd 2006 2:48PM]

As Mr. Burns would say - "Excellent!"

Seriously though, it's all in an effort to make money (duh!). XM already flashes ads on the text screen on the non-music stations which really doesn't bother me. I usually listen to the music stations anyways (Squizz!) , and once in a while you get an ad for a band's new album but it's usually tied to a promo or something that XM or the station is sponsoring.

[Felix @ Aug 3rd 2006 2:51PM]

I for one welcome our google adword overlords

[otakucode @ Aug 3rd 2006 3:18PM]

Anyone who continues paying a subscription fee to a service that garners income via advertisement is an idiot and is supporting a bad business model that is harsh on consumers everywhere.

Write or call XM and tell them you want a discount or free membership if ads start showing up. And cancel if they refuse. Don't expect companies to shy away from tactics like this if YOU make it pay off for them!

[James @ Aug 3rd 2006 3:29PM]

Davix: The ads are going onto non-music stations. The XM Music stations will remain ad free. So you're saying Sirius doesn't have ads on Howard 100?

[Alex @ Aug 3rd 2006 3:36PM]

Well in XM's defense, they still have as many commercial-free stations as Sirius, so the fact that they have ads wouldn't be enough reason to make me switch over.

I do wonder though, who is going to be reading these ads? Are the DJs gonna read them (like the old "Trim Spa" ads on KROCK) or is it gonna be a computer-generated voice?

[GeneMack @ Aug 3rd 2006 3:41PM]

otakucode:

Then you don't have cable or satelitte television?

And, as has been pointed out once, but some still seem to miss, this is on talk stations, which have always had ads. And Sirius talk stations have ads also.

But, in my infinite wisdom, I still predict 50 more posts saying people shouldn't pay for a service with ads and you should go with Sirius, because it is ad free.

[CH @ Aug 3rd 2006 3:41PM]

It only makes sense. Now that Google has gotten their feet wet in radio advertising look for them to get into podcasting advertising next.

[daaper @ Aug 3rd 2006 3:48PM]

P.S. I second Mack Swift's SQUIZZ!

[Poopmaster @ Aug 3rd 2006 4:02PM]

Hmm. I'm not convinced that Google is anywhere close to all-powerful, but they are making strides in that direction. Wonder when someone will organize a "Day Without Google" day?

[Frankenstein Black @ Aug 3rd 2006 4:08PM]

COMING SOON TO XM: MORE COMMERCIALS - and by the Demonic Clear Channel Communications no less!
http://www.businessweek.com/technology/content/apr2006/tc20060413_150389.htm

Man, are those young punks at Sirius teaching you (XM) a big lesson! What, you ask? Simple “Exclusive Content is King!” Worth repeating “EXCLUSIVE CONTENT IS KING!” How ugly is it that they (Sirius) will probably pass you in total subscribers in 07. GOOGLE CAN’T SAVE YOU!

SCREW XM AND THEIR PALS CLEAR CHANNEL. WINEY MONOPOLISTIC FUXs! I had 3 XM radios and as of today I have ZERO!!!

[John @ Aug 3rd 2006 4:10PM]

otakucode, are you serious? Terrestrial radio is free because you have 20 min of commercials per hour, listened to by millions of people. XM and Sirius are still losing $ despite your $13/mo. And you've obviously never watched cable (aka paid) TV.

[daaper @ Aug 3rd 2006 4:33PM]

Did you even read that article you posted, Frankenstein? Since I'm not sur eyou did, I'll paraphrase for you. It says both companies (XM and Sirius) are commited to not allowing commercials into their music channels (however realistic that is for either). It also says that both are losing mass amounts of money. However, it says that XM should be profitable by 2008. Sirius, on the other hand, is so far in the red they don't even have a projection. What's that mean? They are the ones more likely to start including advertising in more of their channels. Why are they so far in the red? ...because "EXCLUSIVE CONTENT COSTS THEM AN ARM AND A LEG!". The $500,000,000+ they paid Stern is rediculous...

"last fall, Tanqueray, the maker of a popular gin, ran ads on Sirius that were 2.5 minutes long. The segment included an original hip-hop song, 'Get Your Ice On.'" ...nice, yeah Sirius is the clear winner here...

[Kevin @ Aug 3rd 2006 5:08PM]

Well, ad breaks are important on the non-music stations because the hosts need to go to the bathroom and snack for five minutes... Not to mention, sometimes breaks are helpful in getting their creative juices flowing when it's a live show. Sure, there are alternatives to advertising when it comes to these breaks (play a song instead, etc) but if it supplements the revenue and keeps subscriber costs stable, I'll allow ads.

[Revrant @ Aug 3rd 2006 10:22PM]

Grandpa has Sirius, he seems to love it, came with his new Dodge(Believe me, I tried to get him to look at the Titan, I *tried*), I have to say, Radio with no commercials is rather orgasmic, you're raised your entire life with commercials, it's almost like a Drug without them, TV and Music, so I support ads on Talk channels to keep the dream alive!

Good that Google is getting in on it, I wonder what they'll advertise exactly.

[Kevin M. @ Aug 3rd 2006 10:35PM]

This is fine by me, an XM super-fan. There aren't any ads on the music channels XM controls. And this is more money for XM. That is passed off to the subscriber! For over 3 years, XM was less expensive than Sirius, at least for a basic subscription. (There are no longer premium services.) Sirius is in MAJOR debt, and rumors are flying about a bump in subscription coast.

Both Sirius and XM have commercial free music (XM has more) and both have ad-supported talk channels. XM does have 5 ad-supported music channels, not by their choice, but by arbitratiob. Basically, XM made a deal with Clear Channel to get some startup money, and CC controls %2.5 of the bandwith.

This Google deal means very little. It's just ads where there already are some. Don't want to hear them? Go listen to music.

[Frankenstein Black @ Aug 3rd 2006 10:48PM]

Now daaper, that’s funny! Of course they are both loosing money, but the question for every potential satellite radio consumer is this: WHY PAY FOR CONTENT THAT YOU CAN GET ELSEWHERE FOR FREE?

I have DirecTV so the music stations are available to me. I have regular Radio so content like O&A, BBC, ABC, Air America radio (and others) are available to me. I have TV so the rebroadcast audio content CNN, FOX etc. is available to me. SO WHY PAY? Doesn’t make sense. Again it’s all about EXCLUSIVE CONTENT (i.e. offering content that you can’t get anywhere else). Why do you think XM woke up and went after Oprah? They kinda got it, but they got it too late!

Remember this little chat when the Engadget post in 2007 reads:
SIRIUS SURPASSES XM IN TOTAL SUBSCRIBERS! Is there any doubt that this will happen?! Or SIRIUS TO PURCHASE, UM, MERGE WITH XM. This is also a possibility. See you in 007 ;^)...

[Torontoguy @ Aug 3rd 2006 11:18PM]

I think this is GREAT! I didn't want anything to do with Sirius (because of Stern) and now XM has put itself out of the race by teaming with GAGgle. This has finally put the nail in the Satellite radio coffin for me.

Let's see what DAB can do for us...it HAS to be better!

[Mikey @ Aug 4th 2006 1:14AM]

XM has enough exclusive content in The Ron & Fez Show that I will never leave as long as I get them and the full O&A show. XM is very smart. I signed up for the music but a little over a hear ago I stumbled upon 202 and now my reciever rarely leaves 202, I mean, I still love the music channels and I think they play a better variety of music than Sirius does. (yes, I have heard plenty of Sirius, and while it isn't terrible, it skews a lot more mainstream than XM, and honestly, I feel like it's more like regular radio in that regard. Especially if you like Punk or Hardcore/Metal. Fungus and XMLM play way more good, legit underground stuff than The Faction and Hard Attack do.)

Amyway, as long as 202 is there, they have my $13 a month. Hopefully these Google ads mean no more awful XM in house promos! "This is Andreas Cantor, the world cup is just 340926 days away!!"

[stantheman @ Aug 4th 2006 11:28AM]

What people have failed to mention is that the CC channels on XM were countered by non-commercial XM music stations that play the same type of music.

Kiss 21 is complimented by Flight 26
Mix 22 is complimented by Hitlist 30

Is an example of what XM did to counter the commercials which are very limited. I'll still chose XM for O&A, MLB and their better technology and larger better playlists.