Google Takes Local Angle

Reports that Google(GOOG Quote) is amassing a radio-advertising salesforce sparked a wave of speculation last week, ranging from a possible partnership with Clear Channel(CCU Quote) to an all-out acquisition of the broadcaster.

But regardless of whether Google announces any sort of deal, the buildup is something that investors in the Internet sector should watch. It will have serious implications for the increasingly important local-search space.

Last week, a research note by RBC Capital Markets analyst David Bank set off a firestorm by reporting that Google had hired high-profile radio-ad salespeople, and was in the process of bringing in 100 more. Bank found the development odd because Google doesn't currently have many places to put radio ads. ...