The 30-second slots will air one advert at a time and bidders will specify at what time they would like the advert to air. Other variables available to advertisers will include station format and the US location in which they would like the advert to air. The advertisements will be sold online in a system similar to the AdWords platform, which Google also uses to sell newspaper, magazine and television advertising, and will be made compatible with Clear Channel's own advertising system in the future.
Google will offer advertising on around ten per cent of the 12,000 or so FM radio stations in the US. But with only five per cent of advertising time given to the search engine, there is still a long way to go until it is a major force in the radio advertising medium. The deal does, however, give the myriad of advertisers around the world who advertise on Google's PPC system an easy way to make a foray into more traditional forms of advertising.
Clear Channel are hoping that with more competition brought into the medium through Google, ad sales, demand and costs will increase while also helping the industry progress and preventing stagnation. If the system is a success, Clear Channel may open up more time on their network for Google advertising in the future - and it could lead to the involvement of other Clear Channel radio networks from around the world.
Looking to the future, Google may also see fit to extend their deal with Clear Channel into other forms of media. The Clear Channel Communications conglomerate includes television stations as well as a huge billboard network in the US.
In the United Kingdom, Clear Channel's takeover of Adshel gave it a massive share of the billboards located in this country, as well as almost giving the firm a monopoly on bus shelter advertising in the Republic of Ireland. A system of bidding on advertisements to be shown on billboards or bus shelter posters around the country could prove to be a lucrative deal for both parties, but this is purely speculation at the present moment.
