• by Erik Sass  @eriksass1, October 3, 2007

Following close on the heels of last week's announcement from Clear Channel Radio, virtually all the other big American radio broadcasters said Tuesday they will begin using technology that allows listeners to "tag" songs played over HD radio for later purchase on iTunes. The list includes CBS Radio, Cumulus Media, Cox Radio, Entercom Communications and Greater Media.

Although the first tagging-enabled HD sets won't debut for several months, the adoption of the tagging tech by radio broadcasters is an important step toward integrating the radio listening experience with the flexibility and "on-demand" nature of the Internet. It takes advantage of the digital capabilities of HD radio, currently available in all major markets, which include transmitting various kinds of song information to HD radio sets. Listeners can then transfer the information to an Apple iPod, allowing them later to purchase it from Apple's online iTunes store.

The new technology, first adopted by Clear Channel, was produced through collaboration between Apple and HD iBiquity, the company that controls HD radio technology. iTunes tagging may prove to be just the first in a series of steps integrating radio with the Internet. In spring 2006 Bob Struble, head of HD iBiquity, predicted that HD radio sets will one day feature "buy" or "more info" buttons for responding to ads, video screens and related features that allow local businesses to deliver digital coupons to drivers using GPS targeting.

At the same time, interest in radio delivered via the Internet to computers is growing. According to a September report from Media Audit, a research firm, 18% of Americans on the Internet visit the Web site of a radio station at least once a month. And while certain royalty disputes are unsettled, broadcasters and advertisers are clearly betting on Internet radio as a key growth area.

In July, Clear Channel's Katz Media Group acquired Net Radio Sales, renamed Katz Net Radio Sales--allowing advertisers to deliver ads across a variety of audio and Web-based platforms, including hundreds of station Web sites in its digital network. Also, Ronning Lipset Radio announced that it had partnered with Corstarr to use its Adcor technology for delivering Internet radio ads.

Plus, TargetSpot has signed up a slew of big radio broadcasters for its online service, which allows advertisers to create and place streaming audio ads synced with banner displays on radio Web sites. TargetSpot's list of partners includes CBS, Entercom and Warp Radio.

While the future looks bright for Internet radio, HD radio remains an unproven quantity. Two studies from March and September of this year suggest very different levels of awareness in the general population about HD radio. A phone survey conducted by Critical Mass Media for the HD Radio Alliance found that 77% of Americans were aware of HD radio--but a March survey from Paragon Media pegged overall awareness at just 42%.