Google's foray into radio advertising is likely to get a whole lot bigger, if Merrill Lynch analyst Jessica Reif Cohen is correct in thinking a deal is imminent between Google and CBS Radio. According to Paid Content, Reif Cohen says the sticking point in the deal is likely related to control of ad sales and the size of a revenue guarantee Google would pay to CBS.
“We would expect a deal to include low quality Radio inventory for use with Google's dMarc service, but do not believe a deal for CBS's TV network or TV station advertising time is likely,” Reif Cohen wrote. “Assuming that an agreement included 10% of CBS Radio's advertising time, this portion of a deal could involve approximately $200mn in revenue.”
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