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New Wave

AM/FM not doing it for you? Your customers are surfing the Web now--sooner or later, they'll be listening to Internet radio.

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This story appears in the June 2001 issue of Entrepreneur. Subscribe »

The prospect of advertising on Internet radio stations may haveseemed far-fetched last year; many marketers decided to spend theironline dollars on banner ads instead. But given the disappointingclick-through rates for mute banners, Internet radio ads havesuddenly become more appealing.

Although Internet radio is still in its infancy, it'squickly gaining in popularity. In fact, the results from a recentsurvey by media research firm Arbitron indicate the medium will geta considerably larger chunk of overall Internet ad dollars in thenext three years, given that the number of Americans who'velistened to online radio grew from 6 to 20 percent between 1998 and2000. By 2005, about 41 percent of the population is expected totune in to Internet radio at least once per week, according toForrester Research.

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