In this world every organization always aim on maximizing making profit. For many years I have been asking myself where do radio station and television get revenue from despite being non manufacturing firms. This question has directed me to a deep research and find a solution to many people have the same question. Radio Stations always haves workers like any other firm and they are entitled to remuneration like any other workers. Inorder the firm to meet the cost employees they must have adquate revenue generation.
Radio stations are free to listen so we cannot say that listeners are the customers. Listeners are the station audience which is sold to advertiser. A firm will always want to advertise it's commodity in a radio stations with high audience this is because the information will reach more people. Radio station most rely on advertising and calling charges to make money. Radio station is said to sell it's aired time to advertiser of the product. The basis of calculating the advertising fee is based on length of advert, the time of the day and the popularity of the show. All adverts done toward news time are considered to be expensive as you compare with other adverts aired on normal time. The main reason is that most people tune on their radio toward news time inorder to get the news. Otherwise one second of an advert may cost more than 3000 in radio stations and even 10000 in popular television channels. Thanks for reading this article.
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