The primary income for a radio station is the revenue it earns from broadcasting commercials. So they will have sales representatives who will pitch business owners to air their commercials on the radio station in return for a price.Most of the advertisers would be interested in knowing the total number of listeners and the tastes and preferences of these listeners before buying any advertisement slots. The primary task then is to estimate the number and types of listeners subcribing to a particular program that is broadcasted
How is the number of listeners estimated?
This estimation is done by media research or media rating companies. Nielsen and Arbitron are the two well known media research companies of the world.
These media research companies first choose a sample of few houses that statistically represents the total population of the community. This is done because it is not possible to be including all individual listeners in the survey. The selected houses then participate in periodical surveys(daily, weekly or monthly) to share their opinions about the various programs aired during the period.
Now a days several media rating agencies use several advanced pocket devices that monitor and connect this data automatically. Some times the people will participate in these surveys for free only to get their voices heard. At other places these rating agencies also pay to a section of the people for participating in these surveys.
How is the rating calculated?
The rating agencies then add up these figures for a large sample size to estimate the potential number of listeners to a particular radio program.
How does that affect the advertisement income of a radio station?
Larger and more relevant the listener base, greater would be the willingness of advertisers to spend on airing commercials. The job of the sales representative is then to use these ratings from media research companies to convince the advertiser that they can reach out to a large and relevant market by the advertising.
Conclusion If a radio station commands good listeners' base and if the statistics is presented across to advertisers in a credible format, there is no dearth of advertisers willing to spend on airing commercials. This however begins with broadcast of quality programs to attract the desired profile of listeners.
Anyone planning to build a radio station must therefore first look at producing good quality contents for broadcast. Every thing else eventually falls into the right place.
To learn how to set up a radio station of your own, instantly download this 50-page, hard-hitting, step-by-step guide book on how to start radio station.
Or, warm up with this Free resources on radio station business plan
Bhaskar Chaudhary - Start up Consultant
This estimation is done by media research or media rating companies. Nielsen and Arbitron are the two well known media research companies of the world.
These media research companies first choose a sample of few houses that statistically represents the total population of the community. This is done because it is not possible to be including all individual listeners in the survey. The selected houses then participate in periodical surveys(daily, weekly or monthly) to share their opinions about the various programs aired during the period.
Now a days several media rating agencies use several advanced pocket devices that monitor and connect this data automatically. Some times the people will participate in these surveys for free only to get their voices heard. At other places these rating agencies also pay to a section of the people for participating in these surveys.
How is the rating calculated?
The rating agencies then add up these figures for a large sample size to estimate the potential number of listeners to a particular radio program.
How does that affect the advertisement income of a radio station?
Larger and more relevant the listener base, greater would be the willingness of advertisers to spend on airing commercials. The job of the sales representative is then to use these ratings from media research companies to convince the advertiser that they can reach out to a large and relevant market by the advertising.
Conclusion If a radio station commands good listeners' base and if the statistics is presented across to advertisers in a credible format, there is no dearth of advertisers willing to spend on airing commercials. This however begins with broadcast of quality programs to attract the desired profile of listeners.
Anyone planning to build a radio station must therefore first look at producing good quality contents for broadcast. Every thing else eventually falls into the right place.
To learn how to set up a radio station of your own, instantly download this 50-page, hard-hitting, step-by-step guide book on how to start radio station.
Or, warm up with this Free resources on radio station business plan
Bhaskar Chaudhary - Start up Consultant
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