Marketing research of the radio station

Marketing research

The profitability of a radio station business project directly depends on the polarity of the radio station among radio listeners.

The source of income for any radio station is advertising. Since the bulk of radio listeners are car drivers, most of the air of any radio station is occupied by music.

Selecting the target audience of listeners

However, there is a very high competition among radio stations, and it is impossible to keep the attention of listeners on the waves of your radio station with music alone. The popularity of the radio station will be great only if the target audience of listeners is correctly defined.
According to the interests of the target audience, programs should be prepared.
To identify the target audience and choose your own niche in a competitive market, it is necessary to conduct marketing research.

Analysis of competitors in marketing research

Marketing research of a radio station should begin with identifying competition and determining the target audiences of competing radio stations. This must be done in almost any locality, especially if the radio station will focus on its own topics, and not act as an agent of large radio stations.

But even with the option of broadcasting radio programs on the terms of an agency agreement, it is still necessary to assess in advance the popularity of the radio station’s topics among listeners in order to calculate the return on investment of the project.

Obtaining a license and permits for broadcasting

The main problem of creating a radio station is obtaining a license and permits for broadcasting. These procedures take a very long time and, if carried out independently, can make the radio station’s business idea unprofitable from the very beginning.
To speed up the procedures, it is easier to contact specialized organizations that can professionally resolve these issues for a fee.

The composition of the initial costs of launching a radio station

1) Therefore, the initial costs of creating a radio station will primarily include the costs of documenting and obtaining a license, obtaining various permits and conducting examinations.

2) In addition, a significant part of the initial costs will be the purchase of the necessary equipment. Moreover, the purchase of equipment will have to be carried out even before the start of broadcasting, during the period of paperwork, since the equipment and studio complex will require certification.

That is, investments in the business project of the radio station will have to be made at the initial stage, long before the first income is received. This gap between the investment and the start of work must be taken into account when calculating the payback period of the project and preparing the business plan.
Experience shows that the initial costs for the purchase of equipment and the technical equipment of the radio station range from 500 thousand to one and a half thousand dollars.
3) To these costs, you must add the costs of installing antennas and concluding contracts with property owners for their placement.

Choosing a room for a radio station

As for the radio station itself, it does not require special dimensions. A small radio station can be placed in an ordinary three-room apartment. The main costs for equipping the premises will require the installation of technical equipment and soundproofing of the studio in which the presenters will work.

When calculating the business plan of the radio station, the initial costs must also include staff salaries in the period before broadcasting, the cost of purchasing furniture, repairing the premises and other expenses.

Composition of current costs

The operating expenses of the radio station consist of the costs of:

— staff salaries,

— the cost of renting premises and utilities,

– equipment maintenance,

— deductions of income to right holders,

— transport costs and so on.

The radio station’s income comes from advertising, the cost of which is highly dependent on the number of listeners of the radio station and its popularity. Experience shows that despite the long launch of the radio station and high initial income, a popular radio station reaches a payback within the first year of existence.
But, of course, the profitability of a radio station’s business idea largely depends on its specialization and good team, interesting programs and creative ideas.
Calculating the profitability of a radio station business project must be taken seriously enough, a detailed and high-quality business plan must be prepared, taking into account all the necessary deadlines and investments.

To do this, it is better to contact highly qualified specialists and order a radio station business plan on our website .