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Furthermore, broadcast radio advertising often offers the advantage of being localized and inexpensive in comparison with other mediums such as television. [37] Thus, radio advertising can be an effective, low-cost medium through which a business can reach their target consumer. Studies show that radio ads create emotional reactions in listeners.
JSAs are counted toward ownership caps for television and radio stations. [1] [2] In Canada, local marketing agreements between domestic stations require the consent of the Canadian Radio-television and Telecommunications Commission (CRTC), although Rogers Media has used a similar arrangement to control a U.S.-based radio station in a border ...
Individuals, foundations, and non-profit donors may underwrite programming without the need for an underwriting informational advertising contract. PBS and CPB rules permit underwriting commercial use for broadcast stations with certain speech limits that are only required of broadcast stations because of the nature of the non-profit license.
Stations which carry a network's programming by method of affiliation maintain a contractual agreement, which may allow the network to dictate certain requirements that a station must agree to as part of the contract (such as programming clearances, local programming quotas or reverse compensation of a share of a station's retransmission consent revenue to the network).
Radio stations pay fees to licensing bodies for nonexclusive rights to broadcast music. Radio stations and businesses typically pay a flat rate once a year, called a blanket license, which can vary based on the size of the audience, value of the advertising revenues, and amount and nature of music usage. As part of the license contract a radio ...
Radio broadcasting originally began without paid commercials. As time went on, however, advertisements seemed less objectionable to both the public and government regulators and became more common. While commercial broadcasting was unexpected in radio, in television it was planned due to commercial radio's success.