I have been working on a solution to this problem for about a week with no luck. I have create a raster data set and exported it as a .tif file with the intentions of adding the Aerial overlay to Google Earth. My problem is the Black Background comes in Google Earth even though I have set the background to no color in my raster symbology. Any help with this would be appreciated. Thanks,
Based on this thread and my own experience, converting to a PNG should allow you to have transparent raster values in Google Earth.
Conversely instead of trying to create an overlay from your existing image, you could use the Map to KML Tool to create a georeferenced KMZ of your map.
