STEPS TO OPEN A RADIO STATION - STATION EARNINGS

If you are considering the steps to open a FM radio station, it is important to assess what your radio station earnings may be. The state of the local economy will also have a reasonably major impact on the earning potential of your radio station. If the local economy is buoyant, generally radio advertising spend will be up, and you would expect to earn more for advertisements that are played on air.

However, the reverse is also true. When the local economy is struggling, radio advertising is one area that businesses will look at cutting back on first. Many businesses do not consider advertising to be an essential spend, and simply put, if the business is not doing as well, they will have less discretionary money to spend on advertising in general. During times of protracted stagnation in the local economy, it is not uncommon for ad rates to also drop, which of course will have an impact on your station's revenue.

STEPS TO OPEN A RADIO STATION - STATION EARNINGS - Continued

Finally, there are the quarterly radio surveys to take into account. During these surveys, a random selection of listeners in your area are given survey cards, on which they are to indicate which radio stations they listen to during different times of the day. When these survey results are published, they will give an indication of which radio stations have the highest audience share, and over a period of time, also show how the ratings are changing.

Advertisers can then look at these survey results, and see how your station compares to other stations. If your audience has gone up over the previous survey, you could look forward to more advertisers wanting to place ads with your station, and also being able to increase your ad rates. Again, the reverse is also true. If your audience share has reduced over the last period, you may find advertises less willing to renew advertising contracts, and may look to doing so at a reduced ad rate.

© HoganWest, 2009

This is an excerpt from Mulcher Broadcasting 'Guide to starting a FM radio station'. We provide this publication as part of our service which assists people with information and advice on the steps to open a FM radio station.

 

Mulcher Broadcasting 10685-B Hazelhurst Dr. #6369 • Houston, TX 77043 Email: radio@themulcher.com "Proud to support customers across the United States"

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