dMark Radio = Google (AP)

Google is continuing to expand its advertising capabilities beyond the online world, agreeing to buy a company that automatically connects advertisers with radio stations. The price could top $US1.2 billion.

The company, dMarc Broadcasting, creates an automated platform that lets advertisers more easily schedule and deliver ads over radio and keep track of when they air. On the broadcaster side, the dMarc technology automatically schedules and places such advertising, helping stations minimise costs.

Under the deal, announced on Tuesday, Google would pay dMarc at least $US102 million in cash. If performance targets are met, Google would make additional payments of up to $US1.14 billion over three years.

The up-front cash payment will make only a small dent in Google's reserves. Through September, Google had $US7.6 billion in cash and marketable securities, though it has since committed to making a $US1 billion investment in Time Warner's America Online unit.

Google said it plans to integrate the dMarc technology with its highly successful Google AdWords platform, in which third-party websites share revenues with Google for carrying the company's highly profitable search ads.

"Google is committed to exploring new ways to extend targeted, measurable advertising to other forms of media," said Tim Armstrong, Google's vice president for advertising sales.

Already, Google has bought advertising in print publications such as tech magazines and resold chunks of the space to its online advertisers.

TheAge.com