Google is spending for radio ads

Web search leader Google Inc. is hiring scores of radio salespeople and is spending heavily in a bid to expand its position in the $20-billion radio industry.

Google spokesman Michael Mayzel said the company would begin a public test of Google Audio Ads by year-end. Advertisers will be able sign up for targeted radio ads using the same AdWords system they use to buy Web search ads.

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

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

It’s part of what Google Chief Executive Eric Schmidt has said is an investment in radio advertising that could grow over time to include as many as 1,000 Google employees -- not just in ad sales, but also in engineering and operations.

The fast-growing Silicon Valley Internet company had 9,378 employees in September.

“Google is hiring salespeople in most major markets and they’re hiring salespeople to sell radio,” said Bill Figenshu, chief operating officer of Softwave Media Exchange Inc.

Figenshu said three people he had spoken with believed that Google was in talks to buy about $1 billion in radio advertising inventory from Clear Channel Communications Inc. Softwave Media Exchange sells radio ads online and competes with DMarc.

Google declined to elaborate on its plans. The company’s shares fell $4.38 to $472.57.