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In the United States, commercial radio stations make the most of their revenue by selling airtime to run on radio ads . These advertisements are the result of businesses or services that provide valuable consideration, usually money, in return for stations broadcasting their advertisements or mentioning them in the air. The most common ads are "spot ads", which typically last for no more than one minute, and longer programs, typically run for up to an hour, known as "informercials".

The United States Federal Communications Commission (FCC), established under the Communications Act of 1934, regulates commercial broadcasting, and the law on radio advertising remains relatively unchanged from the Radio Act of 1927. In 2015, radio accounts for 7.8 % of total U.S. media. production.


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Histori

Commercial commercials by the audio service returned to even before the introduction of radio broadcasting, starting with the 1893 establishment of the HontarÃÆ'³ Telephone based phone from Budapest, Hungary. In 1901, this "phone newspaper" sold a twelve second spot for one florin each to reach a customer listening service program.

The first radio station, introduced in the late 1800s, used a rough spark transmitter, which could only send Morse dots and lines of code. Beginning in the early 1900s, the first transmitters capable of audio transmission were created, and although initially this was primarily used for point-to-point communication, there were experiments along with news and entertainment broadcasting. Test transmission for many of these earliest stations applies advertising to their owners and new technologies. However, it soon became common practice for the station to arrange to play the phonograph in exchange for mentioning in the air of the company providing the recording. The earliest known example of this practice occurred in July 1912, when Charles Herrold in San Jose, California began making weekly radio broadcasts from his technical school, with an initial broadcast featuring phonograph notes provided by Wiley B. Allen's company.

A more ambitious attempt occurred in the fall of 1916, after De Forest Radio Telephone & amp; The Telegraph Company started operating an experimental radio station, 2XG, in New York City. Lee de Forest made an appointment with record company Columbia Gramophone to broadcast record records from their offices - the record company provided the recordings in exchange for "announcing the title and 'Columbia Gramophone Company' with each play". The debut program was broadcasted on October 26, 1916 and it was announced that the evening news transmission interspersed with Columbia recordings would be sent from the Highbridge laboratory from Forest from 1 November. De Forest initially also used this broadcast to advertise "its products." from De Forest Radio Co., most of the radio, with all the spirit of our catalogs and price lists, "until a comment by Western Electric engineer caused him to eliminate sales messages.At that moment, a commentator in QST magazine noted that 2XG's efforts showcased the practicality of "doing regular advertising and radio talk" which is "something to think about".

Radio broadcasting was suspended in April 1917 after the United States entered the First World War, when a government ban silenced civilian radio stations during the conflict. This prohibition was lifted in October 1919, and several additional promotional footage broadcasts took place, including Westinghouse engineer Frank Conrad, above the 8XK experimental station, located at his home in Wilkinsburg, Pennsylvania, who thanked Brunswick Shop in return the store supplied him with a newly released record. A more formal example was the broadcast at the end of October 1920, above the Precision Equipment Company in Cincinnati, Ohio experimental station, 9XB, sponsored by Randolph Wurlitzer Company, and featuring Victor footage for sale in November. However, shortly after the radio broadcast became established in the United States in 1922, the recording industry became concerned that instead of promoting sales, radio broadcasts were actually pressuring purchases, and this promotional broadcast ended.

Many early broadcast stations were airborne by radio equipment manufacturers, such as Westinghouse Electric & amp; Manufacturing Companies and General Electric, and radio receiver sales agents, including department stores such as Gimbel, Bamberger's and Wanamaker. It provides their customers programming for their purchase, with the operation of the sales financing station. But as more and more stations start to operate, station owners are increasingly faced with the problem of how to keep paying fees, because operating a radio station becomes a significant cost, especially when it becomes the norm for paying players, and after successful music publishers argue that they are royalty to music played by the station.

In February 1922, American Telephone & amp; The Telegraph company (AT & T) announced that it plans to start building a station that will be dedicated to sell their airtime to interested parties, called AT & T as "toll broadcasting". The main station, WEAF in New York (now WFAN), broadcasted its first pay-TV advertisement on August 28, 1922 to Queensboro Corporation, advertising a new apartment complex in Jackson Heights, Queens, near the recently completed # 7 subway line. Based on a series of industry cross-licensing agreements, AT & T originally claimed that its patents granted them a monopoly on commercial radio transmissions. Although the court upheld this contradiction, this practice was highly disliked, and AT & T soon got a licensing scheme to allow individual stations to start selling airtime.

It seems that some other radio stations may have quietly sold airtime and brought paid advertisements before WEAF. Frank V. Bremer reportedly rented Jersey City, the New Jersey amateur station, 2IA, to the Jersey Review in May 1920, for $ 35 for broadcast twice a week, then on January 1, 1922 further leased the station for $ 50 to Jersey Journal for the New Year's broadcast. In addition, on April 4, 1922 Alvan T. Fuller reportedly bought time at WGI Medford Hillside, Massachusetts, to promote his Packard car dealership.

Initially the idea of ​​radio advertising was highly controversial. An article in the November 1922 issue of Radio Broadcast magazine regrets that "advertising dribets... float through the ether every day" and expressed concern that "Forests are full of controlled opportunists by no objections when the scent of wind gains. "Although until the mid-1920s there were several stations opposed to advertising, no other proven financing scheme proved practical, and by the late 1920s most US radio stations carried commercially-sponsored programs.

During the golden days of radio, advertisers sponsor all programs, usually with a kind of message like "We thank our sponsors for making this program possible", airing at the beginning or end of the program. Although radio has clear limits to be limited to sound, as industry develops, major stations begin experimenting with multiple formats. Advertising has become a hot commodity and there is money to make. E. H. Sanders, advertising director at Shell Oil Co., urged radio broadcasters to deal directly with relevant advertisers, and sold commercial tie-in to existing radio programs. Like a newspaper advertisement at the time, Sanders assumed that advertisers and radios would benefit from selling spot spots to gain listeners' attention. Radio is a well-known medium, but Sanders calls his initiative a radio 'grow up' in terms of its business aspects and how it handles advertising. The "visual" part of the broadcast is provided by the infinite imagination of the listener. Actor and voice actor Stan Freberg demonstrated this point in his radio show in 1957, using sound effects to dramatize the 10 tonne cherry maraschino recall by the Royal Canadian Air Force, which dropped it to 700-ft. a mountain of whipped cream floating on Lake Michigan filled with hot chocolate, up to a cheer of 25,000 extras. The bit is then used by the Radio Advertising Agency of the USA to promote radio advertising.

The radio industry has changed significantly over time, and radio is big business nowadays. Although other media and new technologies are now more demanding on consumers' time, 95% of people still listen to the radio every week. Hearing US Internet radio is also growing rapidly, up from 12% in 2002 to more than 50% by 2015. Although consumers have more options today, a 2009 study reported that 92% of listeners keep watching when the ad goes to in their program.

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Format

There are various options for the type and length of radio advertising. With changes in the radio industry and better production technology, commercial presentation modes have changed, and commercial advertising can take many forms. The two main types of radio advertising are "direct reading" and generate spots.

Cousin of commercial advertising, direct reading refers to when a DJ reads the place of advertisers in the air, delivered from a script, fact sheet, or personal knowledge. It can also refer to when DJ "supports" the advertiser's goods or services. Radio Agency (RAB) defines endorsements as: "where station or personality" supports "advertiser products or services, usually" live "in the air."

The resulting spots appear more general. A place is 'produced' if a radio station or advertising agency records it for a client. Commercial formats produced include: direct reading with sound effects or background music, dialogs, monologues (in which voice talent describes characters, as opposed to broadcasters), jingles, and combinations of these. Studies show that the quality of the ads is just as important for the listener as, generally, like the number of ads they hear.

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Research and rates

The current radio stations generally run their ads in groups or sets, scattered throughout broadcast hours. Studies show that the first or second ads for air during ad breaks have a higher memory than they are served later in the scene.

Nielsen Audio is one of the premier data ranking providers in the United States. Most radio stations and advertising agencies subscribe to this paid service, because ranking is key in the broadcast industry. Agencies generally buy radio based on target demographics. For example, their clients may want to reach men between the ages of 18 and 49. Ratings allows advertisers to select segments of specific audience audiences and purchase appropriate airtime. Ratings are also referred to as "numbers" in business.

The numbers can show who is listening to a particular station, the most popular time of day for the listener in the group, and the percentage of total audience listening that can be reached with a specific ad schedule. The numbers also show you exactly how many people are listening at every hour of the day. This allows advertisers to choose the strongest station in the market with specificity and tell them how many days will be the best time to run their ads.

In addition to the basic numbers, most radio stations have access to other data, such as Scarborough Research, which details more about listening audiences than what age group they fall into. For example, some data will provide the type of activity that the listener followed, their ethnicity, what type of work they did, their income level, what type of car they were driving, and whether they ever visited a certain entertainment venue.

Radio stations sell their air time according to the day section. Typically, the line of station day packages will look like the following: 6 am-10am, 10 am-3pm, 3 pm-7pm, and 7 pm- midnight. The spots that run after midnight, from 12 am-6am, are referred to as "night stay". Although today's schedules may vary from station to station, most stations run the same day formation and sell their ads accordingly. Driving times, or mornings and evenings when people are commuting, is usually the most popular time of the day and also when every station has the most audience. "Tariff", or what station charges to advertisers, will reflect that.

Rates may also be affected by the time of the advertiser's year. January is almost always a very slow time of the year, and many stations run special deals on their rates during that month. This is not the case in warm weather markets like Florida, where "snow birds" migrate and increase population. In this situation, tariffs are usually at the highest level when populations swell. Radio advertising costs also vary on how well the parties negotiate. During busy times of the year, stations can actually sell all advertisements, because, unlike print media, radio stations have only a limited number of available commercial units per hour. During the dot-com boom, some stations run as many as twenty minutes of advertising per hour. Although the commercial rate is not approaching today, with an average station running about nine minutes of ad per hour, peak periods can and actually sell.

Accordingly, the advertising rate will vary depending on the time, time, how well the station is in the specific demographics the advertiser wants to reach, how well the station compares to other stations, and the demand on the station inventory. The busier the time of year for the station, the more advertisers can spend it. And, higher ranking than a station on the market, according to ranking data, more advertisers can be expected to be billed to run at that station.

The ad rate may vary depending on the length of place the advertiser chooses to run. Although the second sixty points are the most common, the station also sells airtime in intervals of thirty, fifteen, ten and two seconds. Thirty second ads are always popular in television commercials, but radio stations have just adopted this format recently. Clear Channel started the "Less More" initiative in 2004, utilizing thirty seconds advertising on markets across the US. Although research shows that fewer ads lead to better withdrawal rates, research shows that a traditional sixty-second point might be a better option, with brands and messages higher than with newer thirty-second ads.

The station also runs a ten second spot, or "billboard". Typically, this type of place runs close to some station features, such as traffic reports, stating, "This traffic was brought to you by...", and is usually limited to about thirty words. Fifteen seconds of place is generally reserved for station promotion announcements, although some stations sell them.

In addition to traditional radio advertising, some stations sell airtime during their streaming broadcasts. In the past, streams of radio stations only included ads that also aired in the air. CBS announced it would begin broadcasting 'live broadcasts' on its streaming radio broadcast, sold and voiced separately from station regular places, noting the effectiveness of direct support.

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Benefits

More than eight out of ten Americans feel listening to advertising in exchange for free radio is a "fair deal". Furthermore, radio broadcast ads often offer localized benefits and are not expensive when compared to other media such as television. Thus, radio advertising can be an effective and low cost medium in which a business can reach its target customers. Studies show that radio advertising creates an emotional reaction in the listener. In turn, consumers consider advertising more relevant to them personally, which can lead to increased market awareness and sales for businesses running ad schedules. Twenty-five percent of listeners say they are more interested in a product or a business when they hear it at a station of their choice.

Local DJs create personal relationships with their audience listeners, and that the audience is more likely to believe what they say and respond to their message. Direct support is growing in popularity, as advertisers are looking for new ways to reach consumers and cut out the clutter around them. Studies show that life readings have higher memory and response rates than typical recording sites. Perhaps because the listener develops with their favorite station, twenty-six percent of listeners are more interested in the product or business when a DJ supports it. As more advertisers are turning to live support, heavy demands are placed on DJs to announce it. And, as the number of available DJs shrinks, the remaining ones are often flooded with requests for endorsements.

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Settings Considerations

The Communications Act of 1934 establishes the FCC, which in turn regulates broadcast media. In response to the 1950s payola scandal, the FCC established guidelines, known as the "sponsors disclosure" rule. These rules apply both to pay-for-play and advertising, recognizing that consumers are entitled to know "by whom they are being persuaded".

Of great importance to advertisers is Section 317 of the Act, the provision of "Broadcast Payments Announcement". It states, in general terms, that where money, services or other valuables are directly or indirectly paid to a radio station in exchange for any mention in the air, the station shall disclose that fact. For example, if a cell phone provider gives a free cell phone to a DJ station, which then talks about that cell phone provider in the air, perhaps mentioning what great service he has, the broadcaster should disclose that it is an advertisement.

Typically, listeners can distinguish radio ads from entertainment content. The Communications Act involves exceptions "oversight": if there is clearly something commercial, the announcement-for-payment terms do not apply. However, when something of value changes hands in exchange for mention in the air, a station has an obligation to disclose it.

The Federal Trade Commission is also responsible for the regulation of the broadcasting industry, in terms of false or misleading advertising practices. In October 2009, the FTC published guidelines on support, requiring a clear disclosure of the relationship between an advertiser and an endorser. Under the FTC guidelines, an endorser is responsible for disclosing any "material connection" they have with the seller/business.

In recent years, there has been a tendency towards obscuring entertainment/editorial content and advertising. Marketers are "embedding" products into the media so consumers are not aware that they are being advertised. On the radio, it's sometimes hard to tell where the DJ chit-chit ends and an ad begins.

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See also

  • Jingle
  • Promo (media)

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External links

  • "Selling Goods During the Golden Age of Radio" by Danny Goodwin (old-time.com)
  • "Zoot Radio: Free long time radio show downloading radio ads during Golden Age of Radio" (zootradio.com)
  • "Broadcast Radio Funding: Commercial Sponsorship" by Thomas H. White (earlyradiohistory.us)

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References

Source of the article : Wikipedia

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