Google has struck a deal with American satellite radio company XM Satellite to allow the search engine's Adwords advertisers to automatically place ads on XM's non-music radio channels.

The deal gives Google advertisers a way to reach XM's 7 million and growing subscribers while lowering the costs related to processing ads, the two companies said.

Under the deal, Google advertisers will have a simple, automated way to reach XM's millions of subscribers nationwide and XM will have access to Google's large and small advertisers to offer relevant, targeted messages to their subscribers.

"XM is excited about the opportunity to leverage Google's extensive advertising base to open up a new revenue stream", said D. Scott Karnedy, senior vice president, sales and marketing solutions, XM Satellite Radio.

XM is America's number one satellite radio service and includes a lineup of more than 170 digital channels.

The deal however will not apply to the company's more lucrative stations such as the Oprah & Friends network and Major League Baseball.

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