IMPACT OF COMMERCIALS ON THE SUCCESS OF PRIVATE RADIO STATIONS IN NIGERIA

 
The study examined the impact of commercials on the success of private radio stations in Nigeria with a particular referenceto Unique 103.1 F.M, Ilesha, Osun State. Commercialization is thriving because editors, publishers and owners of the broadcast stations/print media see the organizations or their investment as a profit making venture that should yield the required financial return. Increasingly, commercial-oriented news stories are taking the place of hard news reports these days. Survey research method coupled with questionnaire was used in eliciting data from the selected respondents. The data were analyzed using table and frequency and percentage tables. The paper recommends that broadcast media should design better ways of generating funds without necessarily selling the integrity of their respective media to the sponsors.
 
Radio promotions are competitive for retailers as more than the brands the retail store compete in the marketplace in Nigeria. Hence, retailers are engaged in extensive promotional activity by advertising through all media. Radio advertisements are largely targeted to the urban commuters. Besides media, retailers also outsource sales promoters to deliver gifts and price lists to people at strategic traffic points. Such promotion campaigns allow the store to increase its turnover by achieving a higher volume of sale in the market area, an increase in the frequency of visits, and stimulate spending by consumers in the store. Store-level promotions through radio advertisements help urban commuters to acquire information and take decision on buying or induce family and friends to help in visiting stores to witness promotions and buy. The radio advertisements reinforce a low-price positioning, a key to attract customers of price sensitive segment using an ‘everyday low price’ or ‘everyday new promotion’ strategy. However, such a strategy leads to an increase in sales at the expense of a substantial loss in profit in long run (Hoch et al, 1994).
Radio commercials hold a marginal share among the main media categories, for example newspaper and television. However, it is still regarded as an important and useful medium in marketing and advertising in large cities and metropolitans. The broadcast of commercials on radio needs real feel orientation and voice is the single major determinant that draws the attention of listeners. Programs on sales and market news are the principal preferences of urban commuters for large metro radio stations (Parker, 1993). The majority of short and informative advertisements for consumer products in an urban setting use radio advertising with communication appeal related to the efficacy of products and psychosocial enhancement of consumers at retail outlets. Promotional efforts by manufacturing and retailing companies appear to focus on positive emotional appeal to influence consumers through radio advertisements (Yusuff and Yusuf, 2009).
Though the print and television media has taken the major share of revenue from commercials, advertisements on radio still hold audience of large cities. However, little research has been published on the impact of commercial broadcast by AM or FM radio on urban consumers. Most studies did not consider radio and outdoor advertising as principal research agenda, despite their importance in business communication, consumer behavior and towards sale stimulation for retailers (Mulhern, 1997; Volle, 2001). This study aims at analyzing the impact of commercials on the success of private radio stations in Nigeria. The study attempts to determine the impact of commercials on the success of private radio advertising supported by outdoor advertising by retailing firms on situational variables on re-dissemination of information, the store choice and buying preferences based on empirical investigation in Osun state. The moderating role of individual variables such a past buying behavior and psychodynamics also been discussed in the study in the context of the radio commercials and outdoor advertising. Accordingly, this paper contributes to the existing literature on the subject.
1.3   Objectives of the Study
The study sought to evaluate the impact of commercials on the success of private radio stations in Nigeria. Specifically, the study sought to;
i.  evaluate whether commercials have significant impact on the success of private radio stations.
ii.  examine the effect of commercials on the growth of a private radio station.
iii.  determine the relationship between commercials and the success of private radio stations.
1.4   Research Questions
i.  Is there a significant impact of commercials on the success of private radio stations?
ii.  What is the influence of commercials on the patronage of a private radio station?
iii.  What is the relationship between commercials and the success of private radio stations?
1.5   Research Hypotheses
Hypothesis I
H0: There is no significant impact of commercials on the success of private radio stations.
Hi: There is a significant impact of commercials on the success of private radio stations.
Hypothesis II
H0:   There is no relationship between commercials and the success of private radio stations.
Hi:    There is a relationship between commercials and the success of private radio stations.
1.6   Significance of the Study
This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.
1.7   Scope/Limitations of the Study
This study is on the impact of commercials on the success of private radio stations in Nigeria. The study will be conducted in Unique 103.1 F.M, Ilesha, Osun State.
Limitations of study
Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
1.8   Definition of Terms
Commercial: This may refer to advertising, paid messages in newspapers, magazines, flyers, billboards, and paid announcements over radio and television. Radio advertisement.
Success: Achievement of an action within a specified period of time or within a specified parameter.
Private Radio Station: This a radio transmitting station carrying on a message service for business purposes but not open to the public.