TimeIsTight said:
...looking at this as a client in charge of a marketing campaign to increase the subscription rate among young adults for The New York Times newspaper, even though the ratings, age demos, geography and spot prices work, any agency that placed a lot of ads on Hip Hop, and Spanish language stations would be fired because the Return On Investment would be so poor.
Here's a case where the client would not be looking at hip-hop or CHR because the demo is so young that it has never been associated with newspaper readership. I'd suspect the Times would be looking for 35-54, where a print medium still has some chance. So they would find stations in formats like AC, Classic Rock, Urban AC and Classic Hits to be useful. And, given the bilingualism of older Hispanics, who tend to be Puerto Ricans, WSKQ might be a valuable choice.
It's also possible that a campaign would be designed using areas where home delivery rather than newsstand sales was common, eliminating much of the City and the Boroughs... not due to ethnicity but to a desire to cultivate subscriptions rather than single copy sales.
In addition to age and ratings, good marketers have to take lifestyle data into account too. In this case, the education and income level of NY Times readers within that demo would suggest the most likely ad targets would not be expected to listen to Hip Hop or Hispanic stations in any significant numbers.
Generally, age and gender criteria will cover the restrictions. Advertisers seek to develop new consumers as well as reinforcing new ones... but remember much of what is sold on the radio that is bought with numbers is mass market, not niche.
Using a variety of formats is preferred as it avoids unintentional stereotyping which limits the reach of a campaign.
Here's a stereotype for you from more than a decade ago: a certain Spanish news talk station approached a certain Scandanavian car's dealer association ad manaager, and was told that "your listeners don't buy our cars, they steal them." Only when higher ups were informed that the leading mid price car in Puerto Rico was the Volvo, and that the brand had enormous equity with Puerto Ricans did they relent, only to discover that sales to Hispanics catapulted.
Formats and ethnicities are not good indicators any more for the affluence of listeners. A friend, in his 30's, loves hip hop. He also graduated from a leading Ivy League school and recently switched from BMW to Infinity... anecdotal for sure but representative of a very changing landscape in America that can be backed by real quantitative numbers.
Since the 1950s, radio stations have selected their formats to serve certain market slices, where lifestyle differences like education, income etc. can be even more important than age differences for advertising placement. You want to sell grand pianos you put the spots on a classical station, age demo matters not.
Piano stores are very niche, and generally not agency / ratings based buys. But in the 50's and 60's, when all that mattered were the relatively few big AM signals, formats were chosen for mass appeal. In New York City in the late 50's and early 60's, what formats were on big signals (570, 660, 710, 770, 880, 930, 1010, 1050, 1130 (and maybe 1560) other than some Top 40 or MOR variant or one easy listening operation? Those formats were chosen for reach.
Classical and other niche formats have long used income and other items to try to make up for lower ratings (except for a few like WGMS in DC), but generally rate and demo match are the prime buy criteria.
If too much consideration were given the averages for each station as to income and such, many opportunities would be missed. Several of the biggest volume Lexus dealers in LA have as much as half their volume coming from Hispanics, and that is why they have used Spanish language AC stations with good success. The average income of one of those stations would deceive... but there are tens of thousands of highly affluent listeners, and they are the target.
There was a time when an FCC First Class license was needed on premises whenever stations were transmitting,
For an AM, only if directional... and for FM not an issue (I started with a 3rd ticket in '59 and was almost always alone at the station I worked for) and that requirement went away when equipment became so reliable as to not need constant attention.
Technology has changed the traffic department, accounting, billing, sales and, of course, the need for live people in the studio. In many cases, they were only there because there was no alternative.