The Dynamics of Mass Communication

The Dynamics of Mass Communication
Chapter 1 Communication: Mass and Other Forms The Dynamics of Mass Communication Seventh Edition Joseph R. Dominick

Part 3 Electronic Media

Chapter 1 Communication: Mass and Other Forms
Radio

Radio History Early Radio Milestones
Chapter 1 Communication: Mass and Other Forms Radio History Early Radio Milestones Heinrich Hertz sends, detects radio waves Guglielmo Marconi sends wireless signal in Morse Code, sees promise of "wireless“ as a naval communication medium Reginald Fessenden makes first device that can broadcast human voice and music Lee de Forest invents vacuum tube which makes it much easier to receive audio waves WW I Inventor patent wars hamper radio development; U.S. Navy takes over and log jam is broken HISTORY Early Radio Milestones : James Maxwell of Scotland suggests an electromagnetic signal could be sent through space without using wires : Heinrich Hertz, of Germany, verifies Maxwell's theory in a series of experiments by sending and detecting radio waves : Guglielmo Marconi sends wireless signal two miles in Morse Code (letters encoded by a system of dots and dashes); sees promise of "wireless" (radio's first name) as a ship-to-shore or ship-to-ship communication medium; starts wireless telegraphcompany : Reginald Fessenden, with the help of G.E., makes first high-speed continuous-wave generator that can broadcast the human voice and music; makes first "broadcast" of music to ships in New York Harbor on Christmas Eve : American Lee de Forest, inventor of the vacuum tube (which made it much easier to receive audio waves), broadcasts a classical phonograph concert from the Eiffel Tower Patent wars between inventors severely hampers early radio’s development, but when the U.S. Navy assumes responsibility for all relevant patents at the outbreak of World War I, the log jam is broken and great technical strides take place.

Evolution of Radio as a Mass Medium
Chapter 1 Communication: Mass and Other Forms Evolution of Radio as a Mass Medium Big Business Radio’s profit potential attracts big corporations; GE, AT&T, and Westinghouse are early investors. Mass Audience In 1920, station KDKA, Pittsburgh, becomes the first to prove radio can profit by targeting programming to general audiences. Better Receivers Technical and cosmetic changes help turn radio into a “must have” household appliance; 17 million sets sell by 1930. The Evolution of Radio as a Mass Medium Big Business While radio development before World War I had been characterized by individual inventions, during the postwar years it would be characterized by corporate maneuvers. In 1919, the Marconi Company sold its radio rights to General Electric (GE), who, in turn, created the Radio Corporation of America (RCA) to house the new division. Stock would be jointly held by GE, the American Telephone and Telegraph Company (AT&T), and Westinghouse Electric. David Sarnoff, an RCA mid-manager but soon-to-be president of RCA, suggested radio would be a household appliance. Mass Audience Shortly before 1920, Frank Conrad, a Westinghouse engineer, began broadcasting a potpourri of sports scores and music from his garage. A local department store promoted the broadcasts by offering $10 discounts on their ready-built wireless sets. Westinghouse saw the opportunity and initiated the first radio station, KDKA of Pittsburgh, on November 20, RCA began broadcasting in 1921, and GE in By 1926, there were over two million sets in operation. By discovering that an audience existed for broadcast programs intended for the general public, radio had found the role it was to play for the foreseeable future. Better Receivers Early radios were bulky, filled with tubes and batteries, and always required lots of patience from users in order to find—and keep—the desired radio signal for which they were looking. In 1925, Gimbel's Department Store displayed a bulky radio set in their window ($99, a huge sum in the 20s); that same day, they sold 5,300 sets. Radio receivers quickly evolved from a bulky, battery-dependent, one-listener hobby kit into a major piece of fashionable furniture running on household current that everyone could listen to at once. Living room family radio arrived. Between , some 17 million sets were sold at an average price of $80.

Evolution of Radio (Con’t)
Chapter 1 Communication: Mass and Other Forms Evolution of Radio (Con’t) Radio Goes Commercial AT&T’s “air time for sale” idea quickly demonstrates advertising can be radio’s chief revenue source. Networks NBC starts two networks in 1926; CBS follows with one in By 1937, NBC has 111 affiliates, CBS 105. Government Regulation Unregulated airwaves prompt Congress to order chaotic radio practices with the Radio Act of 1927. Radio Goes Commercial Station operating and equipment costs rose steadily along with personnel expenses. Radio needed a steady revenue source to meet expenses. AT&T's radio station began charging a "toll" to anyone who wished to broadcast a message, and the most logical customers for that service were businesses who had services or products to sell. Almost overnight, advertising became the way stations would make money. Networks The fifth element of radio's evolution came about when stations saw they could drastically cut their production costs by sharing program content; this inter-station agreement produced networks. Additionally, if enough stations were networked, an advertiser could reach a much larger audience, while dealing with only one network broker. The first network was the National Broadcasting Company (NBC), who went on the air in 1926; actually, NBC opened with two separate networks, one made up of RCA owned stations, and another made up of stations originally owned by AT&T. By 1937 NBC had 111 affiliates, and CBS had It wasn’t long before advertisers were spending more than $27 million annually on network advertising. Government Regulation As more radio stations came online in the 1920s, interference became a major problem. In response, Congress passed the Radio Act of 1927 and created the Federal Radio Commission to curtail practices that were causing massive interference problems by using non-authorized frequencies and power levels. The FRC defines the AM band, standardizes channel designations, and abolishes portable stations. Thus, by the end of the 1920s, the framework for modern radio was in place. It would be a commercially supported medium dominated by networks and regulated by an agency of the federal government.

Chapter 1 Communication: Mass and Other Forms Evolution of Radio (Con’t) The Depression: Industry avoids bad times, thrives by becoming an inexpensive escapist outlet for national audiences. Roosevelt creates FCC in 1934 to regulate entire electromagnetic spectrum. Seven-member board governs national resource. Birth of FM Invented mid 1930s, FM is curtailed by WW II, later by TV. Radio Programs Programming expands to drama, soap operas, comedy, news, and westerns. Roosevelt becomes first “radio President.” The Depression: Unlike other industries, radio fared fairly well in the Depression years. Radio revenues tripled, and radio’s audience did the same (by 1940, radio was in 81 percent of U.S. homes). But there were also other significant evolutionary events for radio during this period; the Federal Communications Commission (FCC) was formed in President Roosevelt created a new agency in charge of regulating all types of electronic communications; this seven-member, appointed-for-life commission remains intact today and generally follows its original mandate. Birth of FM In the mid-1930s, Edwin Howard Armstrong, a noted inventor, demonstrated frequency modulated radio, or FM. Despite FM's obviously superior quality (compared to AM radio), Armstrong's audience, RCA, is not interested, opting instead to concentrate on developing TV as an emerging technology. Though a few companies buy licenses from Armstrong to develop sets, WW II curtails FM's development. Radio Programs The gloom of the Depression years meant more people turned to radio for free entertainment; popular radio programs of this era reflected the need for diversion and escape. Dramatic programs such as The Lone Ranger, Gangbusters, The Shadow, Dick Tracy, and Buck Rogers flourished. Then radio created an entirely new dramatic genre, the soap opera; by 1940 there were some 40 different soaps on the air such as Helen Trent, Our Gal Sunday, Backstage Wife, and Clara, Lu 'n' Em. On the reality side, the 1930s saw network news grow into a serious and highly respected format. News commentator Edward R. Murrow of CBS News quickly became one of America's most respected news personalities (another first for radio). President Franklin Roosevelt also introduced a new and controversial role for radio, political speeches, with his famous Depression era "Fireside chats."

Chapter 1 Communication: Mass and Other Forms Evolution of Radio (Con’t) World War II Network news thrives as public follows war developments with “name” correspondents. Ad revenues double during war years. Supreme Court orders NBC to sell one of its two networks. ABC is formed from that court order. World War II Radio thrives during WW II era. Ad revenues double from , outpacing newspapers as the top national advertising vehicle in In that same year, the Supreme Court forever alters the broadcast landscape by forcing NBC to divest itself of one of its two networks. The new network that emerges, ABC, ends the war years with 195 affiliates, making it a full-fledged competitor with NBC and CBS.

Innovation and Change: 1945-1954
Chapter 1 Communication: Mass and Other Forms Innovation and Change: In the nine years following WW II, the public’s attention focuses on TV as the nation’s new entertainment medium. Radio switches from dramatic programming to airing pre-recorded music, finds new markets and thrives. FM’s development is further delayed by corporate and public preoccupation with the new TV medium. Innovation and Change: In the nine years following WW II, the growth of television forced radio to abandon its role as a dramatic entertainer and switch to playing pre-recorded music. The public’s focus on television as the nation’s new entertainment medium also helped delay the widespread acceptance of FM radio.

FM RADIO (frequency modulated radio)
Chapter 1 Communication: Mass and Other Forms FM RADIO (frequency modulated radio) FM and TV share nearly same wavelength areas on the electromagnetic wave band; in 1945, FCC gives TV the FM bands and bumps FM into the MHz band where it remains today. Though FM was technically better than AM (FM sounded better and was less affected by static), FM radio stayed in the shadows until the 1970s, partly due to WW II, a preoccupation with TV, and regulatory hurdles. FM Although FM sounded better than AM, was static free, and could reproduce a wider range of sound frequencies, some bad fortune hampered FM’s quick development. Initially, of course, World War II froze FM development, but later these problems added to FM’s woes: . FM was trying to develop at the same time television was becoming popular . FM and TV shared nearly the same electromagnetic wave area; in 1945, the FCC gave TV FM’s former bandwidths, moving FM into the MHz band where it remains today.

Television’s Influence on Radio
Chapter 1 Communication: Mass and Other Forms Television’s Influence on Radio TV’s entertainment advantage forces radio to create new program formats. Talk, music, news and sports, and religious shows debut as a result. Though station revenues remain intact, network affiliations are cut in half due to a lack of demand. Profits rise as stations turn to local businesses to provide primary advertising revenues. Television The emergence of TV meant changes in the content, economics, and functions of radio. Although TV did not have a negative effect on individual station revenues, it did drastically affect network radio. Network affiliations were nearly cut in half; but despite a brief drop in revenues, radio profits continued to increase steadily. Radio stations maintained their revenues by turning away from network-based advertising and toward local advertisers for support. Local stations created new formats (music, talk and news) to help fill the empty network program airtime.

Specialized Formats Among the new program formats, pre-recorded music quickly becomes a favorite offering. Some stations begin specializing in certain music formats, none of which is more popular than the “Top 40” genre. DJs become new radio personalities themselves as they intertwine personal talk and top 40 record hits. The clock hour, a scheduling tool that specifies every element of programming within a given time frame, emerges. Specialized Formats More than anything, these changes allowed local radio to adopt specialized formats, sounds that have distinctive appeal to a certain segment of the audience. One highly successful format, the Top-40, was so popular that many stations that adopted the format were indistinguishable from each other—until, that is, the advent of the radio DJ, a home-grown personality in his own right that gave a station a distinctive edge over any other competition. The clock hour, a program scheduling tool that specified every element of a station’s programming within a given time frame, soon emerged as a way to keep order within a program.

Growth and Stabilization: 1955-1990
Chapter 1 Communication: Mass and Other Forms Growth and Stabilization: Stations double in number. Profit potential of Top 40 format leads some record companies to bribe DJs with payola schemes. Format specialization continues, increases. FM emerges as viable medium. In 1965 FCC passes its “nonduplication rule.” No more than 50% of content can be duplicated on AM/FM sister stations; FM stations become attractive investments. Growth and Stabilization: Radio stations more than doubled during this period, and the Top-40 format became popular enough to tempt record promoters to bribe DJs to play selected music (an illegal practice known as payola); the idea was that the more a record was played on air, the more that record would sell. Formats became more and more specialized, even at the network level. ABC, which was imitated by the other networks, soon splintered into four different formats for its 1300 affiliate stations: contemporary, entertainment, informational, and FM. The most significant development for radio, however, happened in 1970, when FM emerged as a mass medium. FM licenses were easier to get than AM, and in 1965 the FCC passed the nonduplication rule, which prevented AM-FM sister stations from sharing more than 50 percent of the content. Faced with these factors, and the fact that FM had a much better sound quality, FM stations became an attractive commodity. By 1990, FM had captured over 70 percent of the national radio audience.

Growth and Stabilization: 1955-1990 (Con’t)
Chapter 1 Communication: Mass and Other Forms Growth and Stabilization: (Con’t) Country music becomes favorite FM format, followed by adult contemporary AM is home to talk, news, oldies, and religious formats. National Public Radio (NPR) debuts in 1970 as the first non-commercial network; it boasts 160 affiliates by By 1970, FM controls 70 % of the entire radio audience. Country music became the most popular radio format, followed by adult contemporary, while AM became the home to news-talk, oldies, and religious stations. National Public Radio (NPR) went on the air in the early 1970s as the country’s first non-commercial network; by 1980, it had over 160 affiliates and was reaching five million people weekly. It’s two most successful offerings are its daily news programs, “Morning Edition” and “All Things Considered.”

The Volatile 1990s Congress passes Telecommunication Act of It allows unlimited station ownership, but limits the number of stations that can be owned within same market to eight. As a result, an era of unprecedented station mergers and acquisitions begins. Radio conglomerates flourish. Original FCC philosophy of “localism,” which mandated that stations should serve local interest, now replaced with a corporate view: the public interest is served by offering content that interests the public. The Volatile 1990s An unprecedented era of station consolidation began in 1994, when an FCC ruling upped the number of stations a company could own to 20 AM and 20 FM stations, and also allowing holding up to four stations in a single market. Congress later passed the Telecommunications Act of 1996, which completely eliminated the number of stations a company could own and also upped the number of allowable single-owned stations within a single market to eight. The overall philosophy that first guided the development of radio was localism. Radio stations were, in principle, licensed primarily to serve the public interest of those within the listening area of the station. Today, however, station mergers and acquisitions by large corporations have greatly diminished the localist philosophy. A corporate view now commands center stage, essentially advocating the idea that the public interest is served by offering content that interests the public.

RADIO IN THE DIGITAL AGE
Chapter 1 Communication: Mass and Other Forms RADIO IN THE DIGITAL AGE IBOC (in band, on channel) technology now allows simultaneous transmission of analog and digital signals; digital radio debuts in 2001. Satellite radio Aimed at expanding the commuter market, direct-satellite-to-car technology offers 100 commercial free program formats for $10 monthly fees. Internet radio With commercial free, highly specialized formats, over 300 Internet-only stations now offer their brand of programming plus Internet service options such as chat, e-commerce, and content-related web links. RADIO IN THE DIGITAL AGE IBOC Until the advent of IBOC (in-band, on channel) technology in the 1990s, digital radio had developed slowly in the U.S. As of 2001, stations could adopt a system that simultaneously broadcasts their signal to both traditional analog receivers and the newest digital models. The switch to digital radio offers several advantages: 1) AM radio sounds as good as traditional FM, and traditional FM now offers the sound quality of CDs; 2) digital radio is essentially static free. Satellite Radio Digital radio will also create a new threat to existing stations: direct satellite-to- receiver transmissions (mostly aimed at listeners in cars). For about a $10 per month subscription fee, the customer gets up to 100 channels of commercial free program formats. GM and Ford are among the early investors in this enterprise. Internet-Only Stations Internet-based stations, currently over 300 of them, target their largely commercial free and highly specialized format programs to people at work. Two of the most popular services are Spinner.com (AOL Time-Warner) and Broadcast.com (Yahoo!). In addition to the broadcast itself, Internet stations can also offer chat rooms, e-commerce links, bulletin boards, and their own original content on the station’s web page.

DEFINING FEATURES OF RADIO
Chapter 1 Communication: Mass and Other Forms DEFINING FEATURES OF RADIO Radio is . . . portable – small, convenient to carry supplemental – listening often a secondary focus universal – most people have one, tune in daily selective – niche medium of specialized audiences DEFINING FEATURES OF RADIO Radio is: portable – small and convenient enough to go anywhere, anytime supplemental – most listening occurs while doing something else: driving, working, studying universal -- most homes have six radios with one in almost every car; 75% of us listen daily selective – radio is a niche medium, with specialized formats attracting narrowly defined audiences; only 2 or 3 % of the available audience is usually sufficient to generate a profit.

ORGANIZATION OF THE RADIO INDUSTRY
Chapter 1 Communication: Mass and Other Forms ORGANIZATION OF THE RADIO INDUSTRY There are about 12,500 radio stations in the U.S., most of which use local programming plus network and/or syndicated shows. While reliance on network programming is declining, the new demand is for syndicated shows featuring hosts such as Russ Limbaugh, Dr. Laura Schlessinger, and Don Imus, plus a variety of other specialized content. ORGANIZATION OF THE RADIO INDUSTRY There are about 12,500 radio stations in the United States, many of which use network programming (all affiliates carry the same program at the same time) and/or syndication services (stations decide themselves when to use program content); in practice, however, most radio stations broadcast whatever content they get whenever it suits them best. Local Stations, Nets, and Syndicators Network radio, a dominant force in the , has greatly diminished in its role as a content provider. Today the leading networks (ABC, Westwood, and Premiere) generally limit what they offer to news and public affairs programming, and, of course, limit national advertising. By contrast, syndicated shows, such as the programs based on “stars” like Russ Limbaugh, Dr. Laura Schlessinger, Don Imus, and Tom Joyner now enjoy an all-time high demand. Other, more specialized syndicated shows such as the Comedy Network and NASCAR also enjoy a niche market.

AM Station Classifications
Chapter 1 Communication: Mass and Other Forms AM Station Classifications While AM signals travel further, FM’s signals offer superior sound quality and are less affected by interference. AM has three station classifications: clear channel regional local AM Stations Everything being equal, AM (amplitude modulation) signals travel further than FM (frequency modulation) signals, especially at night. With AM listeners on the decline, FM radio commands about 75 percent of the total audience. AM radio has three channel classifications: . clear a single, dominant station designed to provide service over a wide area, almost always urban, and broadcasting with 50,000 watts of power . regional a channel shared by many stations that serve fairly large areas . local a channel designed to be shared by a large number of stations that broadcast only to their local communities

FM Station Classifications
Chapter 1 Communication: Mass and Other Forms FM Station Classifications FM has three station classifications, also largely based on a descending order of output power. A 100,000-watt “C” station, for example, will have more power than a “B” or “A” station. FM, though not as powerful as AM, does have these significant technical advantages: . superior sound quality . less likely to be affected by outside interferences (storms) Like AM, FM stations are also organized by classes of descending output power; an FM class “C” station (100,000 watts), for example, has more power than a class “B” or “A” station.

Station Formats Stations are best categorized by format, a type of consistent programming designed to appeal to a specific audience which, in turn, attracts advertisers trying to connect with that audience type. There are three basic categories: music black or ethnic news / talk Station Formats Perhaps the best way to categorize a station is by its format, a type of consistent programming designed to appeal to a certain segment of the audience. This gives the station a distinctive type of personality that attracts a certain audience, which, in turn attracts advertisers seeking to connect with that type of audience. There are three basic categories: music, ethnic, and news/talk. . The Music Format The largest category, with many subdivisions and variations, and boasts the two most popular formats: Adult Contemporary (with four distinct subgroups and 15% of the audience), and country, (two subgroups and 11%). . Black and Ethnic Formats Aimed at audiences primarily defined by race and nationality, with about 175 stations aimed at black audiences and 260 stations serving Hispanics. Some 60 stations target other ethics groups such as Polish, German, Italian, Irish, and Greek. . News/Talk Format Most popular on AM, News/Talk accounts for some 17% of all radio listening time and attracts a primarily male audience in the year-old category. The talk show format attracts a similar audience, using such format variations as call-ins, advice shows, interviews, and the occasional abrasive and/or opinionated host; all this is often blended in with hard news, sports, weather, and traffic reports.

Format Homogenization
Chapter 1 Communication: Mass and Other Forms Format Homogenization Many stations across the nation sound essentially the same for good reasons: 1. Owners believe that what works well in one city should work well in another. 2. Satellite program transmissions are standardizing content. 3. Program choices are increasingly influenced by a limited band of radio consultants and audience research firms. Format Homogenization Many radio stations sound alike because of a number of factors, such as: . many group-owned stations assume that what works well in one city should work well in another city . satellite-delivered music services are becoming more common, and thus delivering standardized music throughout the country . programming decisions are often based on the recommendations of program consultants and audience research firms, which compile playlists based on audience surveys and focus groups; recommendations tend to be the same from station to station

Noncommercial Radio Some 1,900 noncommercial stations are owned by non-profit organizations, with most programming supplied by two networks: National Public Radio (with 530 affiliates); stations pay NPR a usage fee based on audience size and budget. Most stations also receive funding from the CPB, or Corporation for Public Broadcasting, an agency funded by Congress. Public Radio International Distributes programming from station-based, independent and international producers. Noncommercial Radio In 1945, the FCC set aside several FM frequencies for educational broadcasting. By 2000, there were about 1,900 noncommercial radio stations on the air (operated and supported mostly by universities and private foundations). Programming for these stations is largely supplied by two networks: . National Public Radio (NPR, founded in 1970, serves about 530 affiliates. Stations pay NPR a programming fee based on audience size and annual budget). The public radio stations that help support NPR receive financial support from the Corporation for Public Broadcasting (CPB), a private non-profit organization funded by Congress. . Public Radio International (PRI), formerly American Public Radio, is a network that acquires and distributes programming from station-based, independent and international producers. Unlike NPR, PRI does not produce any of its programming but does finance program production at member stations. A noncommercial station can be an affiliate of either or both NPR and PRI.

OWNERSHIP IN THE RADIO INDUSTRY
Chapter 1 Communication: Mass and Other Forms OWNERSHIP IN THE RADIO INDUSTRY The Telecommunications Act of 1996 encouraged a strong trend toward radio station consolidation and group ownership. As a result, several radio station conglomerates now dominate U.S. markets, the largest of which owns some 904 stations. OWNERSHIP IN THE RADIO INDUSTRY The Telecommunications Act of 1996 spawned a flurry of major multi-billion dollar station mergers and acquisitions, among them a $23.5 billion merger between Clear Channel Communications and AMFM Incorporated, which resulted in the largest radio company in history (904 stations); also of note is the $4.9 billion merger between Westinghouse/CBS and Infinity Broadcasting, which now boasts a 163-station empire of multiple stations in top markets.

PRODUCING RADIO PROGRAMS
Chapter 1 Communication: Mass and Other Forms PRODUCING RADIO PROGRAMS Most stations are divided into four departments . sales . news . programming . engineering Most stations also employ two top positions: . general manager . program director PRODUCING RADIO PROGRAMS Departments and Staff Most stations are also divided into four departments: . sales news . programming engineering Though departmental radio organization varies by station size, most organizations feature the same two top positions: . general manager enforces station policies, maintains contact with the community, and monitors program content, ratings, and sales information . program director responsible for the station’s sound, plus hiring/firing on air personalities

Putting Together a Program
Chapter 1 Communication: Mass and Other Forms Putting Together a Program Music Format: Uses a format wheel divided into program element segments and the times they’re scheduled to air. Talk Format: Staff produced, topics are geared to local interests. These shows require more equipment, staff and technical expertise than DJ-based programs. All-News Format: The most costly of all formats, news shows schedule specific spots for news, weather, sports, business reports, and commercials. Their repeat story cycle usually starts at the top or bottom of the hour. Putting Together a Program Music Format When the staff of a station puts together a program, the first step is generally to lay out a format wheel (a.k.a. format clock), a pie chart of an hour divided into segments representing different program elements and the times they’re scheduled to be aired. Talk Format Produced by the local staff, talk show topics are geared to the interests of the local audience listening in at a particular time. Producing a talk show requires more equipment and technical expertise than a DJ program, since there is more need for things like delay time (used to censor anything unseemly from a caller) and a call screener (someone who ranks waiting calls for importance and probable interest). All-News Format Similar to a music format programming wheel, an all-news format schedules in specific spots for news, weather, sports, business reports, and commercials. The cycle (the time that elapses before the program order is repeated) generally starts at the top and/or bottom of the hour. This is the most difficult and costly program format because of the large staff required to produce the programming.

RADIO ECONOMICS At $20 billion annually, radio advertising holds 8 percent of the advertising market. From , the industry enjoyed 93 consecutive months of revenue increases. Revenue comes from three main sources: national advertising (5 percent) regional or national spot advertising (16 percent) local advertising (79 percent) ECONOMICS Rocky at the start of the 1990s, radio revenue has improved markedly since then. From the industry recorded 92 consecutive months of revenue increases, with $20 billion in revenues, some 8% of the total advertising market. Station mergers and a big increase in dot.com ads helped fuel the increase. As morning and evening rush-hour commuting times increase—radio’s equivalent to prime time in TV—the drive time audience, and resulting profits from them, should also increase. Sources of Revenue Radio stations earn money by selling advertising time, the amount for which is generally included in the station’s rate card. Revenue for on air commercials come from three sources (average percentage of station revenue follows): . national ads (usually on network programs) 5 % . regional ads or national spot ads (less market coverage than national, more than local) 16 % . local ads (purchased generally by local business or organizations) 79 %

GENERAL EXPENSES A radio station generally incurs five types of expenses: technical programming selling administration news General Expenses Expenses in radio are divided into five areas: . technical engineering, staff, payroll, plus technical repairs and maintenance . programming covers talent salaries, tape and record costs, music fees . selling sales, staff salaries, and sales-related expenses . administration management and business staff salaries, building expenses, supplies . news news source fees

FEEDBACK Audience figures for radio stations are monitored by Arbitron, which surveys 3,000 to 4,000 randomly selected listeners in some 262 markets nationwide. The results (usually only 40 to 50 percent of the surveys sent out), take two forms: ratings ratio of station listeners to all people in the market shares ratio of station listeners relative to the total number of people in the market share actually listening to radio at the same time FEEDBACK Radio program ratings are conducted by professional research organizations, the largest in the industry being Arbitron, which surveys radio listening in about 262 markets across the country. Some 3,000-4,000 listeners are chosen at random in a given market, and those who agree to do the survey fill in a daily diary noting which stations they listen to and when (only percent of the diaries returned are in useable form). Measurements of audience patterns are made and then sent to the participating stations. The results take two forms: ratings ratio of station listeners to all people in the market shares ratio of listeners relative to the total number of people in the market share actually listening to radio at the same time

Examples of ratings / shares
Chapter 1 Communication: Mass and Other Forms Examples of ratings / shares Ratings Example: ,000 people in the market with 20, listening to station WXYZ ratings = 20,000/100,000 or a 20 % rating Shares Example: ,000 people are listening to radio with ,000 tuned in to WXYZ share = 20,000/80,000 or a 25 % share . ratings ratio of listeners to a station relative to all the people in that market Example: ,000 people in the market with 20,000 listening to station WXYZ ratings = 20,000/100,000 or a 20 percent rating . share ratio of listeners to a station relative to the total number of people in the market actually listening to radio at the same time Example: 80,000 people are listening to radio with 20,000 tuned in to WXYZ share = 20,000/80,000 or a 25 percent audience share Ratings and audience share figures are important because they determine how much a station should charge for on-air advertising time.

Radio Audience Profiles
Chapter 1 Communication: Mass and Other Forms Radio Audience Profiles million radios in U.S. (over two per person); 1/3 are in cars . on a typical day, 3/4 of all adults will listen to some radio . average person has the radio on for about three hours daily . most listen to radio during the twice daily rush-hour drive times . FM listenership rising (72%), biggest increase from teenagers . as people age, they tend to evolve from one format to another Radio Audience Profiles . 550 million radio sets in the U.S. (about two per person), one third of which are in cars . on a typical day three-fourths of all adults will listen to some radio . the average person will have the radio on for about three hours daily . most people listen to radio during the twice daily rush-hour drive times (6-10 am and 4-7 pm) . FM listenership continues to rise (72%), the biggest audience increase coming from teenagers . as a person ages, he or she tends to leave one radio format and listen in to another -- End of Chapter 7 --

End of Chapter 7 Radio

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