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How Do Radio Stations Make Money Through Advertising?

Posted by on Jul 24, 2016

While radio isn’t as popular as it was in its heyday, it still brings in billions of dollars each year. The majority of the money that stations made is earned through advertising.

The advertising space on radio station is sold by a dedicated sales staff. They work to find clients who want to air radio ads, and find the best places for their ad slots. These sales people don’t work with a single radio station. Instead, they typically work with a number of stations.

Many of these sales people are paid through commission, which means that they are extremely dedicated to finding advertisers. When you listen to the radio, you will notice that there are always plenty of ads; this is the reason why.

The cost of a radio ad is largely dependent on two things: the time that the ad airs, and the length of an ad. Ads that air during common commute times tend to sell for a premium price; the number of people these ads can reach is very high. Ads that air at night tend to cost significantly less.

If a potential client doesn’t have an ad ready to go, the radio station will work with them to find another solution. It’s very common for radio hosts to have to read a few advertisements while hosting their show. While these ads can be expensive, the client doesn’t have to pay for the ad itself. Because of that, it may provide the client with a better return on their investment.

Radio stations have been making money off of advertising for a very long time. As long as people continue to listen to the radio, stations will keep on earning money in the same way. Sales people will work hard to sell all of the ad space that they can.

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