Google Brings Buzz to Radio

By Meena Thiruvengadam, San Antonio Express-News

Apr. 17–Google Inc.’s deal with Clear Channel Communications Inc. may inject new excitement into radio advertising, industry experts said Monday.

A radio advertising agreement promises to give Google access to prime radio airtime for the first time and to bring Clear Channel new advertisers.

Google has been testing radio advertising since late last year but has struggled to find sufficient airtime for a thorough test, spurring rumors of alliances with various radio broadcasters.

Lee Westerfield, a managing director with BMO Capital Markets, calls the Clear Channel deal, which has been in the works since last year, “a real-world test of Google’s step into radio.” Clear Channel is the only radio operator capable of such a large-scale deal, he said.

Under the deal, Google gains the opportunity to sell less than 5 percent of airtime on 675 Clear Channel stations.

The 30-second spots will be available at various times and on major market stations such as KFI in Los Angeles.

“We are partnering with arguably the hottest sales organization in the world, and they will be helping us sell more of our available time,” Clear Channel Radio CEO John Hogan said in an internal company memo obtained by the Express-News. “This is good for our company and for all of us.” Radio ad revenues have been struggling for several years, rising 1 percent from 2005 to 2006, according to the Radio Advertising Bureau.

This deal will “introduce some new blood” to radio advertising, Frost & Sullivan research analyst Aimee Roberts said. “Not only will new advertisers be brought to Clear Channel, but Google’s ads in conjunction with AdSense will create higher-impact advertising.”

A separate announcement Monday unveiled a system for tracking how well the Google/Clear Channel arrangement is working. LAN International’s VIERO transACT promises to allow Google to view available ad spots and radio operators to see how much Google is selling.

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