In signing a deal with Microsoft Canada, a group of Toronto-area radio stations have taken a significant step forward in eliminating the geographic limitations of traditional radio.

The stations are now transmitting their signal over the Net through the new Microsoft Windows Radio toolbar, which is integrated directly into the Internet Explorer 5 browser, allowing users to surf the Web while listening to streamed audio through their computer’s sound system.

The result of their efforts could hold some tantalizing benefits for advertisers seeking to reach Net-savvy consumers via a content-rich medium.

The Edge 102.1, Toronto’s long-time alternative music broadcaster, is one of the first Canadian stations to use the new streaming technology. Earl Veale, vice-president of Internet operations at The Edge (CFNY), which is part of the Shaw Radio network, says the station is looking at ways of maximizing the effectiveness of online radio marketing.

While Veale says it’s still too early to start pushing the station’s online presence with advertisers, he is confident they will eventually want to make use of the innovative promotional opportunities that the Web can provide.

The Edge’s online music site receives about 2,000 visitors each day, a number which is expected to jump dramatically as the momentum for streaming audio builds. According to the station, most of the visitors to The Edge Web site are people who have lived in Toronto, or who know the area, but who are now living abroad or on Canadian university campuses outside the Toronto area.

The ability to extend a station’s reach beyond its broadcast signal gives it the ability not only to attract new and distant listeners but to cater to its existing listener base when they are outside the broadcast area.

‘The Web would be a way to reinforce loyalty and broaden the experience of the existing base,’ says Mark Verdun, business development manager, Internet customer unit at Microsoft Canada.

There are now more than 300 radio stations registered worldwide distributing their signal over the Net and the number of Canadian stations doing so is expected to grow to 20 in the next four months, Verdun says. In addition to The Edge, the stations that have signed with Microsoft include 680News, CHFI, Energy 108 and CFRB.