jhopkins Wrote:
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> So, I'm not sure how this works, but I assume ad
> time cost is based on rantings.
>
> For example (I'm making this up entirely)
> Rated 1 show - $10k/minute
> Rated 2 to 5 - $8k/minute
> ...
>
> Is that basically how it works?
>
> So, what would a 21st place show charge vs a 25th
> place show?
>
> How much is Mike getting paid?
>
> If we had those numbers we should be able to
> calculate the point in time at which Mike is
> costing the Edge more money to be on the air than
> he can generate in ad revenue.
Radio stations wish they could charge $10K a minute. More like $400 or $500 for a 30 second spot for a top-rated station. Also, keep in mind that a lot of ad buys are done through package deals, so the actual rate may be even lower than that.
In the case of 21st place versus 25th place, it shouldn't impact the rate too much (probably in the $100 to $150 range). It's mostly about unloading the inventory. At some point, they start giving spots away to their more loyal advertisers so that they don't need to reduce the general ad rate any further.
As for Mike costing the station money, it's really about opportunity cost. Odds are The Edge is pulling in something near $1 million in revenue even with shitty ratings. And I doubt Mike is making much. However, if the show didn't suck and the ratings were in the high teens, the station could be pulling in $5 million or more.
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