gr8oldies said:
I don't see a problem with running commercials on LPFM. You wouldn't be able to charge much, and it would help keep them on the air. In addition, the sponsors you would get generally can't afford a schedule on Clear Channel. You certainly can do "name, rank and serial number" which is better than name only, as in the old public broadcasting days.
Something nobody ever mentions is, if LPFM stations could run commercials, they would be considered "Commercial Stations." That would put them into the realm of the FCC Auction process. By law, the FCC is required to auction new commercial frequencies to the highest bidder. Do we really want that for LPFM stations?
Obviously, that problem could be changed by an Act of Congress that exempted the service. Historically, it has proven difficult to pass any pro-LPFM legislation, so I wouldn't give that one much hope. Maybe I'm wrong.
On the other hand, I think that some kind of limited "commercialism" would be a good thing for LPFM and all other NCE services. Operating a successful LPFM or NCE station is no easy task. If you plan to do much more than stick a computer and a satellite receiver into a closet and let it run forever, it will take some effort on your part. It also takes money that has to come from somewhere.
For instance, limiting the length of such announcements, as well as the number per hour, and maybe even the locations of the sponsors, could work. Since LPFM is supposed to be a local service, it wouldn't be unreasonable to limit sponsorship to businesses that are located within 25 miles of the stations transmitter. I pick that number because that is the current distance limit for 80% of the LPFM's Board Members. They are supposed to be local. It makes sense that most of the people who support the station should be local too.
Local businesses are a very important part of your community - as much so as many non-profit organizations. The local dry cleaner can't afford to advertise on many full power stations, but he can afford a few bucks at a local LPFM station. For such small businesses, it can be extremely effective target advertising, even if it is limited to conventional underwriting announcements. There is something called "The Halo Effect" that associates your business with a radio station that is loved and admired by the community it serves. It is very powerful, and should never be ignored.
It is possible to support these stations through conventional underwriting, but it is difficult. Many LPFM stations would like some relief. It is also fair to point out that the licensee should have known what he was getting into before applying for the station. I don't think that very many did, and that has caused some problems. Perhaps the next round of applicants will learn from the mistakes of those who have come before them.