Late last week, Google formally began selling radio ad spots through their AdWords platform entitled Googel Audio Ads. The new Google Audio Ads are being sold in the same manner that typical keyword ads are sold: advertisers set criteria and bid using an open online marketplace.

Back in August Google announced that they've partnered with XM Satellite Radio - reportedly along with "hundreds" of other radio stations - to be included in the Google Audio Ads program. Much like AdWords, the advertiser can only select geographical area, demographics of the radio audience, time of day and radio format - but we don't know what station/service the ad will be run on.

D. Scott Karnedy, XM's Senior VP of Sales and Marketing Solutions said that Google had sold "hundreds, if not thousands of ads" since August.

Great news, but at what price? Are these sold at a premium because of Google's targeting abilities? Or at a discount because of the lack of inventory? Advertising revenue, just like subscriber revenue, is key to the survival and growth of the satellite radio industry.

[Washington Post]