Responding to competition from satellite radio and iPods, Clear Channel Communications is trying a new model: ridding radio of ads, reports the New York Times.

Dallas-based KZPS 92.5 was chosen to pilot the experiment and have eliminated 30- and 60-second ad broadcasts. Instead, advertisers may sponsor an hour of programming during which the DJ will promote them in the midst of conversation. Clear Channel calls this integration.

"People are not as willing to listen to the commercials, and soon we'll have the Internet streaming directly into cars," said radio consultant Robert Unmacht. He added that the key to the model's success is allotting "enough time to develop it, which is hard in a world that's judged in 13-week periods."

J. D. Freeman, the marketing manager for the Dallas station, conveyed Clear Channel's confidence about the success of the campaign, explaining that 92.5 has been "insulated" from the pressure of revenue garnering for the next 90 days.

Adding to integration's appeal is the promise that advertisers will own their categories. The station's four initial sponsors, which include AT&T, Southwest, Coors and Guitar Center, have the benefit of knowing competing companies in telecommunications, airlines, beer or instrument retail will not be able to sponsor space on their stations.

In 2005, three Long Island stations owned by the Morey Organization tried a similar model but desisted soon after.

Sean Ross, a radio analyst with Edison Media Research, praised the Clear Channel move, noting that "At a time like this, it’s easier to postulate sponsorships and product placement than actually walk away from your spot-advertising revenue."

Some pressure does rest on the model's success, however. KZPS slipped to 17th place in 2006, compared to an Arbitron position of 7th in the fall of 2000, when Clear Channel purchased it. Clear Channel shareholders are also voting on a $19.4 billion takeover bid from Thomas H. Lee Partners and Bain Capital on May 8.