NEW YORK – CBS Radio Chief Executive Dan Mason spent the last several weeks on a roadshow for advertisers, ready to rebut any claims his business cannot withstand satellite radio, iPods or a soft economy.

Stopping in Los Angeles, Detroit, Chicago, New York and elsewhere, Mason pitched CBS Radio's move into digital broadcasting and the overhauls at key stations, including a format change at flagship WCBS FM in New York.

“We were asking our advertisers to rethink how they think about radio and of course it gave us an opportunity to present our whole digital presence,” he said in an interview.

CBS Corp brought in Mason to lead its radio division in April 2007, leaving him to cope with the departures of well-known radio hosts Don Imus and Howard Stern, low ratings at a number of key stations and the threat posed by iPods, XM Satellite Radio Inc and Sirius Satellite Radio Inc.

Under Mason, CBS has made a big push into Internet radio, including a recent deal with Time Warner Inc's AOL to combine online radio networks. He is also working closely with another CBS division, Last.fm, a Web music and social networking site.

Behind CBS's digital radio efforts is the idea it can expand both the size of radio audience and the amount of time they stay tuned.

For instance, Mason believes CBS Radio stations can reach listeners in their cars driving to work, keep them at the office with online radio and grab them again on the drive home.

Having a bigger digital business also helps radio shake off any criticism that it has been left behind in the new media world.

“It's glitzy, it makes their product glamorous, it makes radio glamorous to play in this space. That's kind of good for us because it creates a new market,” Mason said.

Still, Mason said CBS Radio is only about 50 percent through its turnaround. Beyond the digital push, CBS Radio has sold some stations and made format changes at others where it was struggling to retain advertisers and listeners.

Results in the first quarter point to the uphill battle. CBS Radio revenue fell 6 percent on a same station basis, or 9 percent to $363.5 million on a reported basis due to depressed advertising and the station sales.

“There is work left to do. It took a lot to get to the place where we are now. But we've identified a vast market with Internet radio,” he said. “Obviously, we've built the mousetrap, now we have to monetize that. The good news is that's additional revenue for CBS.”

CBS Corp Chief Executive Les Moonves has said online revenue from CBS Radio was about $30 million last year and will rise to $50 million this year. He also said CBS Radio will increase its overall revenue this year, despite the slow start to 2008.

It will have to do so as an economic slowdown puts advertising budgets in jeopardy. Mason acknowledges there are ”accounts who are not spending right now because of whatever economy we are in,” but says radio still could hold up better than other advertising outlets in the downturn.

“There used to be a saying years ago that radio was recession proof because it was a lower cost medium. If an advertiser had a problem with a budget they could also depend on radio and cut out TV or something,” he said.

“I'm not so sure about that, but radio is still a very effective way to reach the masses compared to other mediums.”

(Editing by Andre Grenon)