Google Introduce Radio Advertising System

Google Inc. announced that it has completed the development of its widely anticipated radio advertising system. Customers can now buy ads trough its online ad-buying system which is built into its existing AdWords online ad system.The AdWords system allows users to track how much is spent on the ads, as well as when it's aired. Analysts hope this simplified, web-based system shakes up the industry.

Google Audio Ads is an online ad-buying system that was developed by dMarc Broadcasting, a company purchased by Google for around $100 million in 2006.

A small advertiser logs into Google's Adwords Web site and creates a radio ad campaign online, selecting the geographical area, demographics of the radio audience, time of day and radio format. The advertiser can bid on how much it is willing to pay to buy the air time, but doesn't know the exact station that will carry the advertiser's ad.

If the advertiser doesn't already have a radio ad created, Google will provide access to on-air talent and producers who bid on the job, which will allow the two sides to negotiate the price and content.

The radio stations can see how many advertisers bid on each slot, listen to an ad and choose or reject one -- all online. Google makes a commission off of the transaction with the radio station.

Analysts expect Google Audio Ads to shake up the $20 billion annual U.S. radio advertising industry by offering a simplified Web-based purchasing process for radio ads to its existing base of hundreds of thousands of text advertisers.

Google wants to expand beyond the web search advertising industry, and just this week announced a deal with Sky broadband where Sky will Google's video content tools and search and advertising tools across its websites.

The trial is going on in the US at the moment, but Google has not said when the system will be made available to all stations. But broadcasters participating in the Google test said they have been satisfied with the results.