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Google to Expand to Radio Industry

Google Inc. just keeps on growing. The ever-expanding internet company from Silicone Valley has recently announced that it intends moving into the offline media industry by helping customers buy advertisements in 50 newspapers across the United States. A public test of Google Audio Ads will begin by the end of 2006, whereby advertisers will be able to sign up for targeted radio ads online.

Google already made a definite move into the $20-billion radio industry when it agreed to pay dMarc Broadcasting ? a company that connects advertisers to radio stations - the sum of $1-billion. Google is also in the process of hiring many radio sales people and hopes that in the near future, it will be able to employee over 1000 radio people in the fields of sales, engineering and operation. What draws people to working for Google radio sales is the fact that they are presently paying about 50% more than other companies. Google already employs close to 9,500 people.

Industry rumor has it that Google is eyeing to buy into Clear Channel, one of the country?s biggest radio operators. Clear Channel controls about 20% of local radio industry revenues and is, at present, considering selling up the company. Two other private equities are also vying for a piece of Clear Channel and a buyout offer could push share prices up to $40 ? placing the value of the company at approximately $20-million. However, Clear Channel is not the only radio operator that has caught Google?s eye and the company has apparently approached several other operators in the past few weeks to get a feel for the market.