Post on 18-Jan-2016
The Business of Radio
RADIO NEEDED SPONSORS
The Business of Radio
1930s-GOVERNMENT REGULATES COMMERCALS
The Business of Radio
The Business of Radio
The Business of Radio
TELEVISION!!
The Business of Radio
Radio stations make money selling airtime.
The Business of Radio
Advertising rates vary by DAYPARTS.
The Business of Radio
DAYPARTS:Morning DriveMorningAfternoonEvening DriveNightOvernight
The Business of Radio
DAYPARTS:Morning Drive AAAMorning AAAfternoon AEvening Drive AAANight BOvernight C
The Business of Radio
The Business of Radio
LEVELS OF AIRTIME SALES
RETAIL
LOCAL
NATIONAL
The Business of Radio
LEVELS OF AIRTIME SALES
RETAIL: Direct sales to businesses
LOCAL
NATIONAL
The Business of Radio
LEVELS OF AIRTIME SALES
RETAIL: Direct sales to businesses
LOCAL: Local Ad Agencies
NATIONAL
The Business of Radio
LEVELS OF AIRTIME SALES
RETAIL: Direct sales to businesses
LOCAL: Local Ad Agencies
NATIONAL: National Ad Agencies
The Business of Radio
PROMOTION DEPARTMENT
To gain listeners for the station.
The Business of Radio
PROMOTION DEPARTMENTGiveaways (T-shirts, bumper stickers)
Concert PromotionsAir Personality Appearances
Contests
The Business of Radio
PROMOTION DEPARTMENTSTEALTH PROMOTION:
A contest where the station announces a listener’s name, who
then has a certain time period to call in and claim the prize.
The Business of Radio
RATINGS: How many people are listening?
The Business of Radio
RATINGS: How many people are listening?
The Business of Radio
RATINGS: How many people are listening?
Diary PPM: Portable People Meter
The Business of Radio
NIELSENAUDIO
The Business of Radio
THE MOST IMPORTANT INFORMATION FOR RADIO STATIONS ARE:
The Business of Radio
RATING
THE MOST IMPORTANT INFORMATION FOR RADIO STATIONS ARE:
The Business of Radio
RATING
SHARE
THE MOST IMPORTANT INFORMATION FOR RADIO STATIONS ARE:
The Business of Radio
RATING
SHARE
THE MOST IMPORTANT INFORMATION FOR RADIO STATIONS ARE:
Percentage of the size of an audiencerelative to ALL households that own radios.
The Business of Radio
RATING
SHARE
THE MOST IMPORTANT INFORMATION FOR RADIO STATIONS ARE:
Percentage of the size of an audiencerelative to ALL households that own radios.
Percentage of the size of an audiencerelative to households who HAVE THEIRRADIO ON.
The Business of Radio
Total radio households: 10
The Business of Radio
Only 6 have their radios on
The Business of Radio
3 are listening to WABC
WABC
WABC WABC
The Business of Radio
2 are listening to WXYZ
WABC
WABC WABC
WXYZ
WXYZ
The Business of Radio
1 is listening to WWME
WWME
WABC WABC
WXYZ
WXYZ
WABC
The Business of Radio
WABC: 3/10=30% or a 30 Rating
WWME
WABC WABC
WXYZ
WXYZ
WABC
The Business of Radio
WABC: 3/10=30% or a 30 Rating
WWME
WABC WABC
WXYZ
WXYZ
WABC
WXYZ: 2/10=20% or a 20 Rating
The Business of Radio
WABC: 3/10=30% or a 30 Rating
WWME
WABC WABC
WXYZ
WXYZ
WABC
WXYZ: 2/10=20% or a 20 RatingWWME: 1/10=10% or a 10 Rating
The Business of Radio
WABC: 3/6=50% or a 50 Share
WWME
WABC WABC
WXYZ
WXYZ
WABC
The Business of Radio
WABC: 3/6=50% or a 50 Share
WWME
WABC WABC
WXYZ
WXYZ
WABC
WXYZ: 2/6=33% or a 33 Share
The Business of Radio
WABC: 3/6=50% or a 50 Share
WWME
WABC WABC
WXYZ
WXYZ
WABC
WXYZ: 2/6=33% or a 33 ShareWWME: 1/6=17% or a 17 Share
The Business of Radio
WABC: 30/50
WWME
WABC WABC
WXYZ
WXYZ
WABC
WXYZ: 20/33WWME: 10/17
The Business of Radio
WWME
WABC WABC
WXYZ
WXYZ
WABC
RATINGS!