Generating Income for a radio station
A radio station needs to earn stable income to support its monthly expenses. This income primarily comes from advertisers for a commercial station.
A radio station business plan should incorporate this data in great detail.
Thus a radio station ought to know ways to attract regular advertisers.
This brings us to the question - What attracts advertisers ?
Advertisers want to know the quantity and quality of listeners subcribing to the various programs of a radio station.
Thus it is very important for a radio station to be able to collate and furnish data like -
1) How may listeners subcribe to the radio station ?
2)How may listeners subcribe to a particular program ?
3)What is the demography of these listeners ?
4)What are their tastes & preferences ?
Unfortunately there is no way to find out the exact number of listeners or about their tastes and preferences.
It is here that a radio station has to take the services of what are called as:
”media rating agencies’ or ‘media research companies’
These agencies estimate these listener’s data by sampling method.
A few houses are used as samples to represents the total population of the subcribers. The constituents of the sample are asked to participate in regular surveys to share their opinions about the programs aired during the period.These days, we also find the rating agencies using some electronic gadget that is attached to radios to automatically collect these vital statistics and send them onwards for collation.
Based on the results of these surveys these agencies arrive at an estimation of number of listeners and their tastes and preferences.
These ratings are widely used by advertisers to estimate the total listener base of a radio station which then decides the pricing of airing commercials on the radio station.
Larger the listener base,higher is the price commanded by the commercials of the radio station.
To sum up, it all boils down to increasing the popularity of the radio station and a stable and growing income will automatically follows suit.
To take it forward, find out some of the media rating agencies for your place and ask them for quotations for rendering these services. Any search engine should be able to tell you about your local media rating agency.
Have a great day :)
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