Despite the Internet and television, the popularity of radio is growing every year. This is due to the emergence of an increasing number of cars, the drivers of which, most often, listen to the radio while on the road.
The popularity of radio suggests that a radio station business idea can be extremely profitable. A radio station, as a business, can bring in very high incomes, especially if the radio station is popular among listeners. Radio advertising is one of the most effective channels for promoting goods and services.
Radio station business idea: who is better to implement it?
The idea of creating a radio station especially impresses people who are sociable, creative, able to attract the attention of listeners. And, at first glance, the radio station business seems simple.
However, in reality, the implementation of the business idea of a radio station is fraught with many problems that are specific to this type of media. The creation of a radio station requires significant investments, so you should start implementing a business idea only after conducting a marketing study and a detailed calculation of the profitability of the project.
Basic steps to start a business
The main problems of organizing the business of a radio station are related to obtaining various permits for the right to broadcast. First of all, you need to keep in mind that obtaining permits takes quite a long time.
1) Before the radio station starts broadcasting, you need to obtain permission from Roskomnadzor by collecting an impressive package of documents for this.
This package should include documents on registration of a legal entity; on registration of mass media; Charter, which reflects the areas of activity related to radio broadcasting; confirmation of payment of fees and so on.
2) In addition to obtaining a broadcasting license, you also need to obtain a certificate of radio frequency assignment.
To do this, you will have to contact the Main Radio Frequency Center and get an opinion on a free radio frequency, since popular radio frequencies are most often busy. The most popular radio frequencies are between 100 and 108 megahertz.
Experience has shown that obtaining a license to use a radio frequency can take several months.
To speed up the procedure, you can contact specialized organizations that are subsidiaries of the Main Radio Frequency Center.
In settlements with a population of less than 100 thousand people, the right to use the radio frequency can be obtained without a competition. In larger cities, such a right can only be obtained by the results of a competition, since there may be several applicants for one frequency.
The complexity of documentary procedures is associated with the need for examinations. Examinations are also quite expensive procedures, and are carried out after the execution of the main documents.
3) As for other technical issues, the acquisition of equipment is not a problem.
The problem may be the placement of towers for broadcasting radio frequencies. To get maximum coverage, towers must be located on the highest real estate, and for this you need to obtain the consent of the owners and conclude an appropriate agreement.
4) Another side, no less important, is the formation of a creative team and the choice of the subject of the radio station. We know that the most popular radio stations have their own themes and specializations.
How do radio stations make money?
The business idea of the radio station is to generate income from advertising. The cost of advertising and the desire of the customer to place his advertisement on the radio station depend on the number of listeners and the popularity of the program.
It should be noted that according to the law, no more than 20% of the total volume of the radio station’s broadcasting is allowed to be given to advertising.
All the rest of the time, the leading radio stations must keep the attention of radio listeners with interesting programs and programs. And here the principles of competition begin to work, which are no less strong on the air than in trade or production.
That is why, at the initial stage of creating a radio station, it is so important to conduct marketing research, identify the target audience, evaluate its volume and plan business development in the near future. The cost of commercials, the frequency of their placement on the air and, accordingly, the income of the owners of the radio station depend on the number of listeners.
The implementation of the business idea of the radio station can bring high profits in case of successful implementation of the project and achieving popularity among radio listeners.