What are your thoughts?

[lipripper]

According to the estimates from BIA Financial Network, radio stations in major markets continue to struggle with a weak ad market while stations in small and medium size markets are showing gains in revenue and the promise of faster growth than the top 10 markets.

 

[kyscott]

Medium and small market stations are actually serving the listeners. Large and major market stations serve the shareholders. You do the math.

 

[hail2theorange]

If you look at this as a consumer, it makes perfect sense... In a major market, there are a myriad of ways to connect with your customer, with coupon mailers, regionally focused TV ads, etc. In the small/mid market, it is pretty much the local radio station(s) and the local newspaper, both of which are more responsive to their community than the big market counterparts.

 

[lipripper]

I so agree.
I wonder what others here think?

 

[gr8oldies]

Some truth to their being more ad choices in larger markets. As far as "serving the shareholders", smaller market stations have at least some types of investors, and/or a bank that needs to be paid.

 

[leethalweapon]

I would also think that there are less overheads in smaller markets.

 

[Inside your head]

small markets still have alt stations.
coincidance?

 

[BRice16]

It is very interesting, indeed. Knoxville, TN, for example is the most profitable market for Journal broadcast Group, and is among the tops in profit for Citadel, and each group has stations with full local staffs, for the most part. Citadel has one automated Oldies station, but off-sets that with a mostly local talker and a sports talker that has three local dayparts, two of them with 3+ personalities. Journal has one station that is heavily VT'd, but their other signals are all live and local.

Go to bigger markets for each of those companies, and you find automated and voicetracked stations with no local flavor that make no money. The companies' solutions? Instead of fixing the bigger stations, they want to come in and cut costs at the stations that are making money, to make them more like the big markets. And we wonder why terrestial radio is failing?

 

[whit979]

If you look at this as a consumer, it makes perfect sense... In a major market, there are a myriad of ways to connect with your customer, with coupon mailers, regionally focused TV ads, etc. In the small/mid market, it is pretty much the local radio station(s) and the local newspaper, both of which are more responsive to their community than the big market counterparts.

Dead on. When you're in a small city/town, usually you've got 2 or 3 options for advertising: the one local newspaper, and the one or two radio stations in town.