Source : Toronto Star

Web search leader Google Inc. is hiring scores of radio sales people and is spending heavily in a bid to expand its position in the $20 billion (U.S.) radio industry.

Google spokesman Michael Mayzel said the company will begin a public test of Google Audio Ads by the end of the year.

Advertisers will be able to go online and sign up for targeted radio ads using the same AdWords system they use to buy Web search ads.

Google is testing its ability to move into offline media, this week saying it would help customers buy advertisements in 50 U.S. newspapers.

It made a clear move into radio in January when it agreed to pay more than $1 billion, depending on performance, for dMarc Broadcasting Inc., which connects advertisers to radio stations through an automated advertising system.

"Google is hiring sales people in most major markets and they're hiring sales people to sell radio. They're paying about 50 per cent more than a typical radio sales person might make," said Bill Figenshu, chief operating officer of privately held Software Media Exchange Inc.

Figenshu said three people he had spoken to believed Google was in talks to buy about $1 billion in radio advertising inventory from Clear Channel Communications Inc., the biggest radio station operator in the U.S.

Two private equity consortia are looking into making bids for Clear Channel, sources familiar with the matter said late last month. Analysts estimated an offer could value the company at just under $20 billion.

© Toronto Star