Madison Avenue has been keeping an eye on Google
This morning's announcement that Google will begin serving up ads on non-music XM Satellite Radio
It's a good step for XM, too. Save for the four channels that Clear Channel
XM can use the boost more than Sirius at this point. This past quarter, XM generated ad revenue that amounted to just $0.45 a month per subscriber, while Sirius tallied a healthier $0.62.
Ad revenue will never overtake meaty subscription revenues, but Google should help monetize XM's airplay more efficiently. At the very least, it doesn't hurt a beaten-down stock like XM to have its name tossed into the same headline with a crisper Google. Rumors of deeper alliances may follow. They may be photographed having dinner together. Eat your heart out, Madison Avenue -- and pay some respect.
XM is an active recommendation in the Rule Breakers newsletter service, though the stock is trading significantly lower since it got the nod. You're welcome to read the original buy report and participate in the active subscriber-only XM discussion board, where Rick and his fellow Fools hang out, with a free 30-day all-access pass.
Longtime Fool contributor Rick Munarriz has been a Sirius satellite subscriber since 2004 and an XM subscriber since this spring. He does not own shares in any of the companies mentioned in this story. The Fool has a disclosure policy. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
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