Financial and Strategic Management of Successful Local Radio Stations in Finland

Abstract

This article explores the factors that contribute to the success of local commercial radio stations in Finland. Although the average station loses money, a few stations are profitable, and this study explores the reasons for their success. The study found that successful stations were less dependent on national advertising, spent less on major costs, and were more productive than the average station. It also found that successful local stations target older audiences, dominate their local radio markets, and have clear formats and a strong local orientation. Nearly all the differences result from choices within the scope of managers or in positioning and marketing strategies that are within the scope of management.