Source: marketwatch.com

Google Inc.’s nascent radio advertisement business, known as Google Audio, has run into an unexpected snag: it seems Google doesn’t have access to enough radio airtime for would-be advertisers to thoroughly test out the initiative, an analyst said Monday.

But help may be on the way for this supposed problem. Several news reports Monday claimed that Google is deep into negotiations to buy a large swath of airtime from CBS Radio.

By doing so, Google could stave off the domino-like effect of the airtime shortage, which may mean delays introducing Google Audio to a much broader audience, RBC Capital Markets analyst Jordan Rohan said Monday.

Until Google can strike a deal with CBS, or some other radio giant, "there will be no significant impact until mid-2007" on Google’s bottom line, or the radio industry in general, Rohan said in his research note.

"We believe a critical mass of advertisers is interested in testing the platform," Rohan said, based on his interviews with his own sources. "However, there is simply not enough radio inventory in the Google Audio system (yet) to enable buyers to run campaigns."

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