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46 Cards in this Set

  • Front
  • Back
Radio in 2009
More radio stations in U.S. than combined TV stations, consumer magazines, & daily newspapers.

radio is a secondary media buy, but marketers find to be a useful part of their overall media strategy.
Since 1970, the number of radio stations has about ______
doubled
Time spent listening to radio
12- to 17-year olds decreased more than 20 percent since 1993.

More than 10 percent of teenage boys dont listen

If young people stop listening, the radio industry will find itself in the same position as the newspaper business—most of the audience will be dead in 25 years.
terrestrial radio stations (AM and FM bands) face competition from
downloads to MP3 players
direct broadcasting from satellites (DBS)
mobile broadband Internet devices
Internet streaming
Of all major media, radio appears to be the_____ suited to an _____
least- online transition
Hence, among new audio content platforms, Internet radio has been the slowest to take off—at least so far.
Business Week recently reported that radio was the ______of publicly traded media companies during the past five years
worst-performing sector
2 european professors who helped toward broadcasting of radio
James Clerk-Maxwell (theorized about electromagnetic radiation and detection)
Heinrich Hertz (detected “Maxwell’s waves”)
Guglielmo Marconi
built a working device for Morse code
Reginald Fessenden
(built a working device for voice and music)
From Purdue
As the number of broadcasters increased.....
the signals of radio stations caused massive interference and difficulty for those trying to listen.
Because those signals crossed state lines, Congress acted to regulate broadcasters nationwide.
Radio Act of 1927 based on two principles:
Licensed by federal govt
Scarcity
trusteeship
Scarcity
(the electromagnetic spectrum is a finite natural resource with physical limits; not all citizens can simultaneously broadcast at will)
Trusteeship
(those chosen to be broadcasters are public trustees of a natural resource and must operate stations in ways that benefit those of us who are listeners)
Localism
-trusteeship
-Stations are expected to be integral parts of their local communities.
-licensees are expected to be responsive to the needs of local residents within the range of their signals.
-“public interest, convenience, and necessity.”
Updates to the Radio Act of 1927
Communications Act of 1934 - FCC
Telecommunications Act of 1996
Radio’s brief golden age
1930-1945
began as networks achieved national coverage by 1930
ended when those networks shifted to television after World War II
-networks linked radio stations in diff cities by telephone lines to enable a single program to be heard nationwide in real time.
1930-1945 90% of radio stations were affiliated with (4)
NBC Red
NBC Blue (later ABC)
CBS
Mutual
Television exerted a displacement effect on
network radio programming
network radio audiences
dollars spent on the purchase of radio air time by national advertisers.
Major changes in the radio industry between 1946-1989
-music ‘n’ news
-content provided free by record companies
-shows hosted by popular local djs
-Music ‘n’ news was enthusiastically supported by local advertisers.
Payola (pay for play)
-scandal ended music ‘n’ news programming controlled by individual radio disc jockeys.
-The FCC required licensees to take responsibility for programs that aired on their stations.
non duplication
requirement that FM stations provide separate programming from co-licensed AM stations
By the late 1970s ______ as the dominant method of terrestrial broadcasting.
FM had replaced AM
2009 Terrestrial radio:
AM and FM analogue
HD digital transmission on AM and FM via IBOC (In Band On Channel) technology
The FCC has approved, but not mandated HD radio (better quality)
2009 internet radio
streaming from terrestrial stations
streaming from Internet-only program originators
podcasts
Satellite radio: Sirius and XM
The merger of XM and Sirius
announced in march 2007 and completed in july 2008
XM-Sirius must look out for...but they offer...
ipod docks in cars
internet radio
fm radio
terrestrial hd broadcasts
but offer good specialized content
Sale of advertising time:
local sponsors (78%)
national & regional sponsors (17%)
network sponsors (5%)
Small amounts from other sources
Expenses at terrestrial radio stations
40% general admin (management salaries, office supplies)
25% sales (salaries of sales staff)
20% programming (salaries of talent, music licensing fees)
15% news & technical (salaries of news & engineering staff, acquisition and maintenance of equipment)
The radio audience
Radio ranks 2nd (after TV) in amount of time Americans spend using mass comm
~70% of people age 12+ listen to radio each day.
Affluent Americans spend more time ____
listening to radio than watching TV.
since the mid 1990s, overall time spent listening to radio has _____steadily across demographics, and especially among teens.
decreased
stations listened to
Individuals listen to only two or three radio stations at any given period in their lives.
The “most preferred” station accounts for 65 to 70 percent of their listening time.
“music generations”
People 10 years apart in age
Portable People Meter (PPM) ratings
identify a radio station by detecting inaudible codes transmitted by stations equipped with the Arbitron PPM encoder
collect audio signatures of radio stations using other (competing) encoding systems
The PPM is used in New York, Los Angeles, Chicago, Philadelphia, and Houston.
Diaries vs. PPM
Diaries measure what people say they listen to.
People meters measure actual listening.
are discrepancies
ratings
ratio of a given station’s estimated number of listeners at specified time (divided into quarter hours) to all people who reside in the station’s market (a specified listening area), whether listening or not.
share
ratio of that same listening estimate to the total number of people in the station’s market who are estimated to be listening to radio at that same specified time.
why advertisers require share and ratings
A given station can deliver a healthy share of the available audience even with a low rating.

Advertising comparisons among competing media vehicles require a metric with a common denominator (rating).
Recent industry developments
pocket-sized satellite radio players (XM-2-go) and digital media players with radio (Microsoft Zune)
talk formats from AM to FM
FCC authorization of low-power FM stations to “translate” the programming of certain struggling AM stations
walmart is pushing to do what?
sell HD radios at a low price to catch attention and popularize the form of radio
Departments stores and radio
1922- had own stations
opera, classical, and conservative
avoided offensive content
intertwined content with ad's for store
stopped making own station and started buying air time
aimed towards women
Catherine Hughes
head of radio one
first african american woman to head a publicly traded company
radio station that uses User Generated Content
KYCY now KYOU
Bus Radio
Allows students to listen to specialized radio for their age group on their way to school
fairchild "deterritoralizing radio"
no connection between radio and local
statist position-assures broadest # of peope benefit from medium
corporatist view- market is best determiner of public interest
Why aren't teens listening to radio?
ipod myspace cell phones, you tube ect
they target 18-49 year olds b/c ads