The presentation of my thesis "Perceptions of Online Radio Station Managers Regarding Advertising". The aim of this dissertation is to shed light on the online radio advertising industry. The research focuses on owners and managers of web radio stations. The managers are usually the decision makers for the monetization of the station’s content. For this exploratory study, the managers contributed by giving their valuable insights.

1. Perceptions of Online Radio
Station Managers Regarding
Advertising
EFSEVEIA
KATSOULIERI

2. Purpose of the study
Exploratory Research
Advertising on Online Radio
Stations as perceived by
Managers and Owners of
Web Radios

3. At a time of turbulence, radio provides an enduring
platform to bring communities together. On the
way to work, in our homes, offices and fields, in
times of peace, conflict and emergencies, radio
remains a crucial source of information and
knowledge.
Ms Irina Bokova, Director-General of UNESCO
(12th February 2017)

4. RADIO BACKGROUND
1920: Telegraphy for international and maritime messages rather than as mass
broadcasting
1998
12% of all Americans
had listened for at
least one time an
online radio station
2000
5,009 AM Stations
8,298 FM Stations
2010
33 Million
Listeners
Sterling and Kittross (2001)
Radio Spectrum Policy Group (2010)

5. RADIO BACKGROUND
Arbitron and Edison Media Research (2008)
XAPP Media Report (2015)
2014
ü 30 billion listening
hours (USA)
ü 42.7% expected
growth over a three-
year period
2016
“Digital
Switchover” in
Europe

6. ONLINE RADIO
2016 - US
Ø 155m Listeners/Month
Ø 136m Listeners/Week
Ø 2018: 183m Listeners/Month
Media Reach Weekly
79% of 12-24
65% of 25-54
XAPP Media Report (2015)
Edison Research and Triton Digital (2016)

7. ONLINE RADIO ADVERTISING
Interactive Advertising Bureau (2016)
Radio Advertising Bureau (2015)
v Advertising Revenues (USA, 2015): $59.6 bn
• Q3: $14.7 bn
• Q4: $17.5 bn
v 20.4% Growth from 2014 to 2015
v 15% of publishers choose Internet Radio
Advertising

8. ONLINE RADIO ADVERTISING
Interactive Advertising Bureau (2016)
Radio Advertising Bureau (2015)
Top Radio Spot Categories
• Auto Dealers and Rentals
• Communications Services
• Financial Services
• Health Care Services
Top Spenders
• Walmart
• Verizon Wireless
• Hyundai
• Burger King

9. ONLINE RADIO ADVERTISING
Interactive Advertising Bureau (2016)
Radio Advertising Bureau (2002)
v 9 to 20 spots/hour
v 3 minute blocks
v Rates based on:
• Day Part
• Time
• Seasonality of Demand
• Seasonality of Offer

10. ONLINE RADIO ADVERTISING
Interactive Advertising Bureau (2016)
Radio Advertising Bureau (2002)
Types of Radio Commercials
Ø Jingles
Ø Live Commercial
Ø Public Service Announcement
Ø Drama
Ø Humor
Ø Informative Advertisement
Ø Combination

11. Research Questions
RQ 1: What are the characteristics of professional radio station managers?
Age, gender, years of broadcasting experience, employment status and education level
RQ 2 : What are the characteristics of professional online radio stations?
Years of active broadcasting, location of the station, staff and show hosts involved,
revenue estimation
RQ 3 : Is the country of broadcasting related with differences on the managers’
perceptions?
Policies on broadcasting, fees on music rights and availability of certain music platforms
vary from country to country

12. Research Questions
RQ 4: Could the gender of the manager be related with differences on the managers’
perceptions?
Studies have shown differences in leadership styles and gender characteristics related to
job performance (Roth, Purvis & Bobko, 2010)
RQ 5 : Is the employment status of the manager related with differences on his/her
perceptions?
Differences of job satisfaction between self employed and employees (Millán, Hessels,
Thurik & Aguado, 2011)
RQ 6 : Are radio stations of different revenue estimation per month statistically different?

13. Methodology Ø Exploratory
Ø Quantitative
• Construction of an Online Questionnaire
• Distributed with SurveyMonkey links
• Analyzed with SPSS v.23

14. Methodology + Less expensive
+ Less time consuming
than interviews
+ Easy To distribute
(Kumar, 1999)
- Low response rate
- Difficulty to clarify the
questions during the
survey
(Berenson, Levine &
Krehbiel, 2001)
Why was the Questionnaire chosen?

15. Methodology
Questionnaire Design
Thematic Sections
1. Radio Station’s Characteristics
2. Radio Advertising on the Online Radios
3. Ways of Approaching Advertising
4. Perceptions of the Advertisers’ Perspective on a new
commercial
5. Perceptions of the Radio Stations’ Perspective on a
new commercial
6. Revenue Streams for an Online Radio Station
7. Promotion Tools Used
8. Perceived Competition in the Music Broadcasting
Industry
Demographics of the Respondents

16. Radio Station’s Characteristics
ü Type of Content
ü Years of Broadcasting
ü Country of Operation
ü Number of staff
ü Number of Show Hosts
ü Monthly Revenue
Estimation
Nominal & Ratio Scales

17. Radio Advertising on the Online Radios
ü Type of
Advertising
ü Number of paid
spots weekly
ü PSAs
Broadcasting
Nominal & Ratio Scale

18. Ways of Approaching Advertising
Attitudes of Radio
Managers
5-point Likert Scale

19. Perceptions of the Advertisers’ Perspective
on a new commercial
5-point Likert Scale
Importance of radio
station’s characteristics

20. Perceptions of the Radio Stations’ Perspective
on a new commercial
5-point Likert Scale
Importance of
requirements

21. Revenue Streams for an Online Radio
Station
5-point Likert Scale
Frequency of
Selecting Alternative
revenue streams

22. Marketing Strategies Used
Nominal Scale
Which tactics do
managers use as
to promote their
station?

23. Perceived Competition in the Music
Broadcasting Industry
Ordinal Scale
Competition Ranking

24. Demographic Questions
Nominal Scale & Ratio Scale
ü Gender
ü Age
ü Level of education
ü Employment status
ü Years of broadcasting experience

25. Methodology Participant Qualifications
a) Either have the ownership of an online radio station or be
managers with experience in online radio stations.
b) Agree to participate in this study
c) Complete the whole questionnaire as to consider it valid

26. Methodology v Convenience Sampling
Distributed Online at:
• Radiojar Newsletter & Social Media Platforms
• Radio- Related Forums
• Facebook and LinkedIn Groups
Ø 154 Respondents (76% Full Response Rate)

27. Data Analysis
• SPSS v. 23
• Excel v.15
Statistical Analyses:
Ø Descriptive Statistics: Sample Profile
Ø Independent-samples T-tests

28. Radio Manager’s Profile
q Males (83,8%)
q Owners of at least one radio station (60,4%)
q Bachelor graduates (81,7%)
q Employed: 50% | Self-Employed: 47% | Retired: 3%

29. Radio Stations’ Profile
q 4 to 10 years (50%) –
1 to 2 years (25%)
q Up to 5 Admins (95%)
q 8 to 15 show hosts
(46.1 %)
q 11 stations with no
shows
q 69.5% have paid
commercials

30. Radio Stations’ Profile

31. Radio Stations’ Profile
q 73.8% make offers to
companies directly
q 60% is negative on approaching
advertising agencies
q 68.2% have a positive attitude
on business while networking

32. Taking offers from
advertising agencies
Radio Stations’ Profile

33. Positive Agreement
with all statements
Perceptions of Managers on the advertiser's
perspective when making a deal

34. Perceptions of Managers on the radio station's
perspective when making a deal

35. Alternative Revenue
Streams
ü 51.6% use buy URL on website
ü 25.5% use buy URL on application
ü 73.2% do not use any banner advertising
ü 50% use advertising visuals on the player
ü 23.5% use in-show product placement
ü 17% co-create content
ü 15.7% curate events
Results

36. Marketing Strategies for
Promoting the Station
ü 51% of stations use a website
ü 52% have a dedicated mobile application
ü 55% can be found on a music directory
ü 22.2% offer media sponsorship
ü 28.5% curate promotional events
ü 25% use social media marketing
! 2.6% do not use any type of marketing
Results

37. Competition in the
Broadcasting Industry
1. Web TV channels
2. Streaming Services, e.g. Spotify/Pandora
3. Terrestrial radio stations (FM/AM)
4. TV
5. Online Radio Stations
6. Directories, e.g TuneIn/ e-radio
Results

38. Country and Radio Advertising

39. Country and Radio Advertising
Music category
Accepting offers & Making offers
directly to companies
Website and Media Sponsorships
Loyal listeners’ base and Personal
relationships
Using visuals and buy URLs on app
Various genre
Making offers to advertisers
Getting listed in directories
Local niche of listeners, Reliability of
Reporting and Gaining experience
Using buy URLs on website, banners &
in-show product placement

40. Manager’s Gender and Radio Advertising
♀ Locality of listeners
♀ Third Party Company Manager
♂ Visuals on Player
♂ Buy URLs on Mobile App
♂ Co-create Content
♂ Event Organizing

41. Managers’ Employment Status and Radio Advertising
Employed for Wages
ü Making offers to advertisers &
Letting the show hosts making
ads decisions
ü Locality of listeners & Personal
Relationships
ü Visuals on Player, Co-create
Content & Organizing events
Self Employed
ü Music Only
ü Reliability of Reporting
ü Website & Social Media
Marketing

42. Revenue Estimation of the Station and Radio Advertising
2501 – 5000$
Third party service managing the
advertising
Importance of loyal listeners
Organizing Commercial Events
More than 5001$
Importance of Reliable reporting
Use of visuals
0 - 1000$
Advertising Experience
Use of Website Buy URLs &
in-show Product Placement
1001 – 2500$
Use of Radio promos
Importance of loyal listeners
& local listeners
Use of Application Buy URLs

43. Conclusions
Ø Difference of Top Categories:
Online Radio vs Terrestrial
Ø Perceptions of Competition
Ø Gender of Manager
Ø Spending Power of the Radio
Station

44. Ø Exploratory research
Ø Time and budget constraints
Ø Relatively small sample (N=154)
Ø May not be applicable in related
business sectors
Limitations of the Research

45. Ø More countries involved
Ø Correlation in the perceptions
between online radios, digital
radios & podcasts professionals
Ø Priorities of advertisers and third
party companies
Future Research Proposals

46. Thank
you!