Doing Business On The Air

When it comes to raising significant amounts of money, most stations use their airtime two ways: On-air pledge drives and underwriting credits.

To many listeners’ ears, underwriting credits are a more tolerable way to raise money than on-air pledge drives. According to AUDIENCE 98^®

a third (35%) find underwriting credits more annoying than in the past, but six-in-10 (59%) say fund drives are getting harder to listen to.

How can public radio professionals use these two pieces of information to maximize listener-sensitive income while minimizing damage to listener relations?

At many stations, underwriting generates more income per minute of airtime than on-air fundraising. You can calculate this for yourself (see below).

There’s no doubt that on-air drives are the most effective means of recruiting new givers to a station, and that on-air drives make money. But a thoughtful plan that considers listener sensitivities and the rate of return on the two major sources of revenue could yield a more successful, long-term fundraising strategy for the future.

Calculating Income per Minute

On-Air Pledge Drives:

Total Dollars Raised =
Total Dollars Pledged x Fulfillment Rate

Income per Minute =
Total Dollars Raised / Total Minutes Spent Pitching

Underwriting:

True Average Rate =
Total Dollars Collected / Total Credits Broadcast

     Be sure to include all bonus spots.

Income per Minute =
True Average Rate x Credit Length Factor^*

   * For 10 second credits multiply True Average Rate by 6.
     For 15 second credits multiply True Average Rate by 4.
     For 20 second credits multiply True Average Rate by 3.
     For 30 second credits multiply True Average Rate by 2.

– John Sutton
AUDIENCE 98 Associate

Audience Research Analysis
Copyright © ARA and CPB.  All rights reserved.
Revised: September 01, 2000 12:38 PM.