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Divide Bar

     B.  Radio
	1.  High Costs

The costs of radio advertising vary greatly among radio stations. Some attributing factors are ratings, programming schedules (which may include "special events" where ad rates are billed at a premium), and quite simply, supply and demand. Here in the Cleveland area, the major players in radio are Clear Channel and Chancellor. These two conglomerates own a significant portion of the radio stations with high ratings placement. Though the format of the stations may be different, their pricing schemes are often similar. During the late 1990s, a sample of radio advertising costs for Clear Channel and Chancellor stations locally, revealed charges $10.00 - $270.00 for one 60 second slot. One of these stations suggested 14 of the 60 second slots over a period of one week. The total cost for this package would be approximately $1,530.00 and this is only 14 minutes of advertising spread across one week! The monthly cost would be in the neighborhood of $6,120.00! That’s outrageous!

	2.  Time Consumption

Advertising on the radio is not only a large financial commitment, but also an enormous time commitment. First, you must research the various stations in your area to determine when and where you can reach your target market. Second, you must contact a sales representative for that station (which in itself can prove to be difficult depending on how busy they are). Then, you would meet with the rep, exchange information about the companies, create a marketing plan, and then record a 60 second spot. After all is said and done, you may even find yourself preoccupied with listening to the radio to assure your spots are being played. Remember, not only are the costs high, but advertising in this manner consumes a great deal of time as well. Time is money. Many business owners actively manage and participate in the day to day operations of their business; to make time for all of these advertising meetings, they would have to pay someone to take their place at work.

	3.  Ineffective Response

Most sales associates I have spoken with among the industries of newspaper, radio, and television agree that an ad will not be effective if it is not run for a long period of time. Again, that means these forms of advertising are extremely costly; considering an average cost of over $1,500.00 per week to advertise on the radio. Another problem with radio, according to a Arbitron Ratings poll of that time, is that radio may be losing its young listener base. The number one reason young people are turning off their radios is too many commercials. In support of this reasoning, is clear evidence that radio ad sales will reach a record number this year [1998-1999]. A business needs to gain a young customer base to ensure future success. Radio spots will not necessarily meet this business requirement!

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