• by Erik Sass  @eriksass1, November 11, 2009

Citadel Media en Espanol is preparing to launch a suite of new online brand extensions for its Spanish-language programming in partnership with Terra, which produces digital content targeting Hispanic consumers.

Terra is also taking over responsibility for online ad sales for some of the new channels. The new online content capitalizes on the American Hispanic population's online traffic, which is growing faster than the population at large.

The new Citadel Media en Espanol online initiatives include the launch of a new Web site for "Tu Vida Es Mi Vida," a talk radio show hosted by Maria Marin, a motivational speaker and columnist, which is syndicated by Citadel to 27 affiliates across the country.

Terra will manage editorial programming, advertising sales, user experience and Web design for the new Web site, which will feature exclusive interviews, photos, discussion boards, and behind-the-scenes video. The advertising opportunities include product integration, which has enjoyed growing popularity in Spanish-language media.

Future online brand extensions may drawn on popular programs such as "Conexion Thalia," hosted by Latin music superstar Thalia, and sports content.

Overall, Citadel Media en Espanol claims to reach 8 million Hispanic listeners per week via 159 Spanish-language radio stations across the U.S. eMarketer estimates there are 23 million Hispanics online, making up 11.5% of the total online population. That's up from 11% in 2008; by 2013, eMarketer estimates there will be 29.2 million Hispanics online, making up 13.2% of the total online population.

Earlier this week, Citadel Broadcasting reported total revenues of $184 million in the third quarter of 2009, down 14%. This resulted in a net loss of just over $21 million.

Worse, the company revealed in a filing with the Securities and Exchange Commission that it probably will not be able to comply with the revised terms of lending covenants agreed upon in March and may have to file for Chapter 11 bankruptcy protection from creditors come January. Specifically, it will not be able to fulfill the amended covenant's requirement that it have $150 million in cash on hand in January.