This comes via a client of mine who runs several locally-owned FM and AM stations in Cleveland (yes, local radio does still exist if you know where to look). The way most commercial stations are run is using a software-based programming automation system. This system manages the playlists, the DJ booth’s selection of material, as well as tracking what got played and when–songs, programs, and advertisements.

One of the top vendors in this area is a company called Scot Studios–which manufacturers a Windows-based automation system for networks at radio stations. So when I was working at my client today, I was surprised to see a cardboard box with a Google logo sitting on the floor in his server room. I asked him if he’d purchased a Google search appliance, and he informed me that the box had contained a new automation server. Google has acquired Scot Studios, and has gotten into the business of syndicating overflow advertising spots on terrestrial radio. The purpose of the new server was to track which of the overflow ads were played on the local airwaves so that Google can kick back funds to the radio station, a la AdWords/AdSense. Apparently, the revenue is split 50-50 with the local station (quite a premium over what webmasters receive since they deliver ad hits by the click and not by the listen).

I find it interesting that Google is spreading out in so many different directions, and I’m compelled by the notion of their tying all of their advertising options together.  It would nice if, one day, while listening to streaming radio, you could have the option of visiting an advertiser’s web site, while the ad was playing, Google style.  I would also bet money that the HD “side bands” will begin to proliferate Google-driven advertising, since Google will take a risk on that medium before a traditional, conservative mom and pop advertiser would not.