Listeners are not customers; they are sold and make up the radio station’s audience. Hence most radio stations are free to listen to. The product being sold to marketers is the listening audience, analogous to a TV audience and social media users. Radio stations make money by selling advertisements. Sponsored programming and events (which is also a kind of advertising) and charging callers provide additional revenue.

On-Air Promotions

If you want to know how do radio stations make money, On-air advertising accounts for a significant amount of a radio station’s revenue. Companies who wish to reach an audience with messages about their products or services buy airtime from radio stations. Advertising spot placement, length, time of day they broadcast, and show during which the advertisement airs can all impact its value and price. For example, the most expensive advertisements post shortly after a show goes to commercial or right before it returns. Stations would often charge more for an ad that aired during a popular program or during peak listening hours (e.g., rush hour).
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