Sales Promotions as Nontraditional Revenue

Abstract

The broadcast industry has experienced unprecedented change and growth within the last decade. Mergers, acquisitions, and federal law relaxations and restrictions have all changed the landscape for radio and television stations. One result is greater pressure being placed on the advertising sales departments at broadcast entities to meet larger bottom lines and greater investor expectations. However, traditional advertising revenue has been either stagnant or declining in many markets. Accordingly, television and radio stations have increasingly turned to other sources of income referred to as nontraditional revenue (NTR). Typically, sources of NTR have included cause-related marketing, event sponsorship and internet-based couponing and sweepstakes. Accordingly, this study, based on a survey of industry professionals, reveals the local broadcast television and radio industries' present and future levels of activity in pursuing various NTR promotional areas and how the NTR function is managed from an organizational point of view within the station.