Google, XM Strike Radio Ad Pact

NEW YORK Google said it would begin selling ad space on XM Satellite Radio programming, marking its first major deal to extend its ad system beyond the Web.

Under terms of the agreement, XM will provide Google with an undisclosed amount of inventory on its non-music channels, which feature programming from Oprah Winfrey and Major League Baseball, and news from ABC, CNBC and CNN. XM has 7 million subscribers.

Google will sell the ads via it dMarc technology, which it acquired in January. Google said dMarc would be fully integrated into its AdWords system by the end of the year.

Financial terms of the agreement were not disclosed. In similar deals Google has struck to sell advertising on third party Web sites, more than 75 percent of ad revenue generated goes to the publisher.

The XM deal is Google’s most significant since it began moving its AdWords system into non-Web media. It marks the first time dMarc has expanded beyond terrestrial radio. The company has experimented with print advertising, and its executives have said TV advertising is in their plans.

Google did not disclose how it would target the radio spots on XM. Officials were unavailable for comment.