Google set for major move into radio market

SAN FRANCISCO - Google could be set to bid for a stake in US radio giant Clear Channel Communications.

The suggestion comes as it races to hire radio sales people ahead of a push into the ad market of the US radio industry. Google is reportedly paying considerably over the odds to hire radio sales staff ahead of a public test of Google Audio Ads by the end of the year.

Google Audio Ads is the business created from the acquisition of dMarc Broadcasting in January for $1bn (£580m).

It is expected initially that Google will buy around $1.2bn in radio advertising inventory from Clear Channel, but it is also said to have approached other US radio groups as it seeks to do deals.

The dMarc system allows advertisers to connect directly to radio stations through its automated ad platform, giving brand owners an easier way to track their campaigns. For broadcasters, dMarc automatically schedules and places ads, helping to increase revenue and decrease the costs associated with processing ads.

However, according to some reports this could lead to Google buying into Clear Channel and the US radio industry, which is valued at $20bn.

Clear Channel, which controls around 20% of local US radio, recently put itself up for sale, leaving the way open for a new entrant into the radio market.

According to a report from Reuters two private equity groups are looking into making bids for Clear Channel, which is valued at around $20bn.

The expansion of Google's interest in radio follows its move into the newspaper advertising business earlier this week with the announcement of a service that will offer customers the chance to place ads in more than 50 titles in the US, including The New York Times and Washington Post.

It has launched a three-month trial programme of its Print Ads service where it will work with 100 existing advertisers of its Google AdWords programme.

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