Public Radio Raking in Bucks From Dot-Coms, Too.

Like virtually all Internet companies, U.S. Interactive Inc. is spending serious bucks on marketing itself to potential customers and employees. But unlike most of its dot-com brethren, its L.A. radio ad campaign bypasses Howard Stern, classic rock, hip-hop and traditional stations altogether.

Instead, the Philadelphia-based company's Los Angeles branch has opted to underwrite programs on public radio station KCRW-FM 89.3. The brief spots (10 or 15 seconds long) only give the barest details, including the company's Web address, and no selling points. But it's more than enough.

"We're really getting tremendous feedback," said Amy Goldsmith, spokeswoman for U.S. Interactive. "We've been contacted by many companies who said they heard about us on the radio, and we've gotten a lot of resumes."

U.S. Interactive, an Internet consulting firm, is one of a growing number of Web-based companies -- including Akamai Technologies Inc., Futurestep.com and BizBuyer.com -- clamoring for time on public radio. While dot-coms have been pouring ad dollars into most media outlets, business-to-business Web companies find they can get the most bang for their buck on public radio, with its highly desirable demographic.

"(The audience is) a very blue-chip group, from a marketing perspective," said Bob Williams, president of National Public Broadcasting, a New York firm specializing in placing underwriter spots on public radio and television.

"What distinguishes our audience is that they're affluent, educated and executive," said Jackie Webber, development associate for KCRW. "From an advertising perspective, these companies have access to business makers and opinion leaders."

So far this year, 16 percent of KCRW's underwriters have been business-to-business dot-coms, up from 7 percent last year, Webber said.

Money gusher

Webber estimates that KCRW has generated $423,000 so far this year from dot-com underwriting. That's more, in less than a month, than the $400,000 for all of 1999, and more than 10 times the $40,000 for 1998.

The early-2000 pace is not expected to last because companies tend to make their underwriting commitments at the beginning of the year. But whereas companies traditionally commit to underwrite in three-month blocks, this year several dot-com companies are committed to the full year.

Public stations are not allowed to air advertising in the commercial sense. But as federal funds for public media dried up in the mid-1980s, the Federal Communications Commission loosened public radio revenue-generating constraints. Underwriters are only allowed to give their name, contact information and a brief description of what they do, while price information, product pitches and other blatant commercial appeals remain prohibited.

For many businesses, such as car dealers, these restrictions make underwriting unattractive. But for some dot-coms, it's the perfect partnership. "It's a listenership you don't have to shout at," said Williams. "All (that underwriters) need to do is say, 'We exist, here's our URL (Web address)."'

KPCC-FM 89.3 in Pasadena, which is in the midst of a reorganization, still receives 70 percent of its funding from listener contributions and is only now beginning to cut underwriting deals, according to General Manager Cindy Young.

But over at classical station KUSC-FM 91.5, Director of Marketing Abe Shefa said dot-com underwriting could mean the station will close out this fiscal year almost $200,000 ahead of projections. "The dot-coms have been using our station more in the past three months," said Shefa. "We expect even more in the coming months."

Marketing value

TelePacific Communications, a new Los Angeles-based telephone and Internet service provider, was looking to target "decision makers and business customers" without breaking the bank, according to Ken Bisnoff, vice president of sales and marketing.

"We don't have the advertising budget of some commerce dot-coms," said Bisnoff. "We need to be targeted. (KCRW) gave us the opportunity to be direct with our business."

Companies may soon be able to use public radio even more, as stations begin opening up their Web sites to include banners from underwriting companies.

While there are no legal restrictions on the types of ads that public radio stations can put on their sites, many station officials say they will carry their underwriting guidelines over to the Web, to stay true to their non-commercial roots and avoid alienating listeners.

Indeed, public station officials are being cautious in their quest to mine the new revenue fields so that they don't offend listeners.

"Listeners complain if the station sounds too commercial," said Webber of KCRW. "We'll run up to six underwriting spots per hour, but we prefer to run four."