Monday, July 13, 2009

Country Ranks #7 In Converting Ratings Into Revenue

Copyright© 2009 Miller, Kaplan, Arase & Co., LLP

Thanks to Mike McVay for the tip that this data for last year is now online at the Miller, Kaplan, Arase & Co. website.
Power Ratios act as a benchmark so you can compare your performance to others’ radio stations in your format. They facilitate the determination of revenue expectations based on audience share. For example, a Power Ratio of 1.2 signifies that the format receives 20% more revenue than your audience share would suggest. A 10.0 share on a station with a 1.2 power ration means that station should garner 12% of the advertising revenue in their market.

MKA publishes two different Power Ratio reports. Power Ratios by format is based on data that is prepared by MKA’s Market Revenue Division which gathers top line information for radio stations in over 100 US markets.

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