landtuna said:
michael hagerty said:
rockjock420 said:
AJ and East Mesa are full of retirement communities, trailer parks, and retirement trailer parks. Seems like an audience that would appreciate the music they're playing, don't mind AM radio, and don't drive around much.
rockjock:
But try selling advertising with that as your audience profile.
But Michael......wouldn't that station be considered the epitome of LOCAL? Seems there would be a market for ads directed at local residents (meaning the *ahem* older subdemo of the greater East Valley). You know....drug stores, restaurants, bingo tournaments, services of all sorts, orthopedic devices and mortuaries.
Doubt the revenue would be huge but the expenses probably are not huge either. I seem to remember a Standards/MusicOfYourLife station in Green Valley, AZ (also a retirement community) that did quite well (KGVY?).
Landtuna: You're right logically. But here are the complicating factors:
Drugstores are now pretty much a CVS/Walgreens/Osco world. That's an agency buy, not a local, and though it seems counter-intuitive, they're buying 25-54 when they buy radio (think...you hear them hawking easter candy to Moms, not Depends to grandma).
Restaurants? A ton of Village Inn/Denny's/Perkins gong on there.
There are mom and pops, but to move their needle, they'll probably need to advertise at least once an hour 6A-6P. Let's pretend the station can get 10 bucks a spot. Mom and Pop have to come up with 120 dollars a day, 600 a week, $31,200 a year to do that. Even if the spot rate is cut in half, you're probably talking about more than they pay a waitress.
Bingo tournaments and mortuaries? Is advertising really going to change their traffic?
And for any of them...using the basis you provide...the customers they get are low-income, fixed-income or both and will only spend so much.
And then there's the station's end. With that night signal let's (charitably) figure only 12 hours a day are salable. Working for Bergamo taught me that in a small operation, 60% sellout at rate card is sometimes all you can do. So they're selling maybe 120 spots a day at 5 bucks a spot....$600 a day. Debt service, the power bill, licensing fees, salaries and commissions, other costs of doing and changing business.........
There are...or at least were...GMs and GSMs in Phoenix blowing through six bills a day in travel and entertainment expenses alone before the economy went south. On their own. Not the staff. That was extra.
Running a whole radio station on their pocket money is tough. If these guys can do it, they're heroes.