Radio One Buys Community Connect, Builds Ad Reach

group shotRadio One is acquiring Community Connect, a company that operates online social networks targeting ethnic minorities, for $38 million. The acquisition gives Radio One advertisers access to the Web sites, which offer display advertising as well as sponsorship opportunities. It will also allow Radio One to offer them more integrated cross-media campaigns.

Founded 10 years ago, Community Connect operates three different networks--BlackPlanet.com, MiGente.com and AsianAve.com--with a total membership of over 23 million. The company also owns a network that targets gay professionals, Glee.com, and a network for Christians called Faithbase.com.

Radio broadcasters have dabbled in social networking for several years, but have only recently begun embracing it as a strategy to increase contact with consumers and build listener loyalty. Last year, CBS acquired Last.fm, which allows members to share music via an online social network, and recently announced that the companies would begin sharing content.

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Companies that place audio and display ads in online radio have signed deals with some social networks that offer radio-like features. In January, Targetspot signed up inTune.fm, a popular audio application on Facebook that allows Facebook members to discover new music by sampling their friends' lists of favorite artists and albums. Launched in October 2007, it closely resembles anywhere.fm, but is customized for Facebook.

Twenty-four of Clear Channel Radio's top stations now have social networks. (The station formats include pop, urban, alternative, and sports.) Altogether, they boast about 400,000 members--who, according to Clear Channel, have uploaded over 1 million photos. The stations are currently in the process of rolling out some Facebook-like features, such as news feeds and a status bar, as well as an RSS manager.

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