Section II. Radio When Being No. 1 is Not Enough

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226 The vast majority of minority-owned broadcasters are not market consolidators, defined in

this study as companies who owned four or more stations in a local market. The few exceptions

are Radio One, Inc., which owns four stations in both Washington, D.C. and Baltimore and

accounted for 10% and 17% of the market revenues, respectively, in those two markets. The other

exception is Spanish Broadcasting System, which owned six stations in Miami and accounted for

11% of that market’s revenues. The market revenue shares of these companies were significantly

less than the leading consolidators in these three markets— Infinity with 34% of the Baltimore

market revenues, Clear Channel with 26% of the market revenues in Miami, and Chancellor with

30% of the market revenues in Washington, D.C. (Source: Who Owns What? Inside Radio, Inc.,

October 19, 1998.) Only nine percent of the respondents to the survey undertaken for this study

reported the presence in their market of a minority broadcaster that qualified as a local market

consolidator (see next footnote for definition).

 

227 For the purpose of the survey questionnaire, a market consolidator was defined as a

broadcaster that owns four or more stations in the local market and that controls 30% or more of

the local market sales revenues.

This analysis implies that small firms are at a competitive disadvantage. Stations with large

parent companies have greater revenue streams with which to hire the best on-air talent, to invest in

program production and to spend on sales promotion. These competitive advantages ultimately work

to the disadvantage of small and minority-owned firms.226 

 4. Market Consolidation, Advertising Practices and Access to Capital

In their responses to the survey questionnaire, minority broadcasters reported that local market

consolidators enjoy strategic advantages that substantially impact on the advertising revenues of

minority firms.227 Survey participants were asked whether they were facing competition from a local

market consolidator. Ninety- three percent of the respondents reported facing competition from an

average of three local market consolidators. Sixty percent of the respondents indicated that they were

facing direct competition from majority-owned consolidators that air minority-formatted programming.

The sizes of the three local market consolidators were reported to be five local stations for the

first consolidation group, four for the second, and four for the third. These duopolies (or

superduopolies), on average, are more than twice the size of duopolies owned by minority broadcasters.

In terms of competitive advantages associated with local market consolidation, minority

broadcasters responded as follows (#1 denoted the highest level of importance):
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Question: Please describe any competitive advantages that

local market consolidators have over your station in terms of

their ability to solicit spot sales.

Average Response

on a scale of 1 to 10 

(1 denotes the highest

level of importance)

Able to offer advertisers a wider range of demographics than your

station.

2

Able to afford undercutting the price of your spot sales. 4

 None 8

Question: What impact have local market

consolidators had upon your station?

Average Response

on a scale of 1 to 10 

(1 denotes the highest level

of importance)

Taken sales away such that station revenues have

significantly declined.

5

Taken away audience share such that listenership has

significantly declined.

5

No impact 6

The practice of price undercutting involves offering ad agencies a price that is deliberately intended to

undercut a competitors price. This practice may be employed by a consolidator that seeks to compete

directly with the format of a minority broadcaster. By airing minority-formatted programming and

undercutting the price of spot sales, a consolidator has a strategic advantage.

Consolidators generally offer a wide range of formats (e.g. news, country, urban, easy listening)

on their local radio stations in order to reach a diverse set of demographics. This enables consolidator

sales representatives to offer media buyers the ability to reach any consumer they wish to target with

a media buy. Media buyers may find it convenient to negotiate a price with one sales person in order

to reach all of their targeted audiences.

The survey participants were also asked to describe the impact, if any, that local market

consolidators are having upon their station.

and,
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Question: Do such practices interfere with the ability to

raise capital to acquire minority-formatted stations?

(check only one)

Distribution of

Responses

Very much so. 44%

Moderately. 33%

Minimally. 18%

Not at all. 5%

Question: Do such practices detract from the market value

of a minority-formatted station when it is being sold?

(check only one)

Distribution of

Responses

By a substantial amount. 44%

Moderately. 29%

Minimally. 25%

Not at all. 2%

The responses to the last two questions suggest that although minority broadcasters face direct

competition from local market consolidators, they are experiencing only a moderate adverse impact

in terms of listeners and revenues. Based upon the perception of the survey respondents, local market

competition has less adverse impact than the effect of advertising practices involving “discounts” and

“dictates.”

The survey respondents were also asked to estimate the impact of “minority discounts” and “no

Urban/Hispanic dictates” upon access to capital and station valuation.

Forty-four percent of the minority entrepreneurs responding to the survey believed that

advertising practices detract by a substantial amount from their ability to raise capital to acquire new

stations that will be used to air programming to the minority population. This is due, in part, to the

anticipated adverse impact that advertising practices have upon the ability of such stations to attract

advertising revenues. An equal number of survey respondents expressed their view that when a
Section II. Radio When Being No. 1 is Not Enough

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minority-owned station is sold, advertising practices regarding “no Urban/Spanish dictates” and

“minority discounts,” detract from the station’s sales price by a substantial amount. This results, in

part, from the adverse effects of advertising practices upon the revenues of stations that air

programming targeted to the minority population.

D. Recommendations for Further Research

It is recommended that further statistical analysis be undertaken that is beyond the scope of

this study. This study suggests that minority ownership, ownership size, and the racial/ethnic

composition of the listening audience can be linked to the advertising performance of program formats.

The relative impact of other variables has not been determined. Further analysis should attempt to

isolate and quantify the effect of additional factors. Such factors should include: 

< audience age, income and education;

< the market rank of the station;

< national revenues; and

< Station sales budgets, particularly the amount of expenditures for qualitative data used to

overcome “no Urban dictates” and “minority discounts.”

This study examined data averages for one year. However, the marketplace involves dynamic

relationships that should be studied over time. Hence a time series analysis of the variables mentioned

above should be undertaken. 

Another important area warranting further investigation is whether there are substantial

variances in the general market cost per point, paid to minority-formatted and general market

stations. Such an analysis is necessary in order to determine whether advertisers, in general market ad

campaigns, pay discounted rates to minority-formatted and/or minority-owned stations. The data

necessary to perform such an analysis is generally proprietary, and CRF was not able to obtain it. A

federal agency with jurisdiction over advertisers and ad agencies may have to use its subpoena powers

to obtain such information. 

On the basis of questions raised by this study concerning the impact of advertising practices

on minority-owned and minority-formatted stations, CRF also recommends the following research

initiative:

< A broader study, funded with sufficient resources, should be undertaken to analyze the impact

of various factors on broadcasters’ performance. Such an analysis will help the FCC identify

whether there are impediments to entry and growth in the broadcast industry that warrant

Commission action, and the reasons for those obstacles. 

< The analysis should examine factors such as: the impact of ownership size on revenue and

power ratios; advertising pricing variances (including cost per point variances) by format; the
Section II. Radio When Being No. 1 is Not Enough

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racial/ethnic classification of the owner, and owner size; differences in quantity of advertising

time made available by stations; consumer responsiveness to advertising on minority-targeted

media compared to general market media; the extent to which a broad variety of formats are

subjected to systematic “discounts,” or “dictates” based on the audience served; the relationship

between “dictates” or “discounts” and the range of formats on a broadcaster’s stations; the

extent to which “discounts” are based on audience income levels for various formats; the

quantity of discounts experienced by minority-formatted stations and other formats, and their

pervasiveness; the extent to which discounts may be related to station classifications of power

and reach (i.e. AM or FM, Class A or Class C); the extent and pervasiveness of “no

Urban/Spanish dictates,” and the use of dictates for other formats. 

< Additionally, the analysis should consider the impact of the race/gender of station, ad agency,

advertiser and representative firm personnel; the practices of broadcast owners in competing

against minority-formatted or minority-owned stations based upon misrepresentations and

improper disparagements; the ownership of radio and television stations by women; whether

stations targeting programming at women are subjected to similar practices in the advertising

industry, and the influence of such factors. 

< The analysis should also probe the use of media ratings services in advertising decisions,

particularly unaccredited services. It should examine the effect of audience undercounting by

media ratings services on the advertising performance of minority-owned and minorityformatted broadcasters. It should investigate the impact of advertising practices on viewers and

listeners, i.e. whether they affect the availability of format, diversity of viewpoints on the

airwaves, and broadcasters’ service to the American public. Finally, the analysis should

investigate whether minority or women owners encounter barriers based on race or gender, and

whether any such findings justify remedial measures or incentives to remove barriers to market

entry, growth and competition for small, minority and women-owned radio stations.
 

228 Survey submitted by station that has requested anonymity.

 

229 The survey instrument was sent to all 30 television licensees identified by the U.S.

Department of Commerce in 1997 as owned by minorities. Thus, the survey results are based upon

completed questionnaires submitted by 36.6% of the sample universe. 

III. Minority-Owned Television

As noted earlier, the medium of television is not targeted to narrow audience demographics in

the same way as radio. Consequently, efforts to analyze any linkage between televised minority-oriented

programming and advertising practices bore evidence only with regard to such Spanish-language

television stations. In response to questions concerning discriminatory advertising practices related to

programming, one station wrote in the margin of the survey, “radio maybe, not television.”

Problems related to researching the relationship between television programming and

discriminatory advertising practices are compounded by the fact that a significant number of stations

owned by African-Americans are Home Shopping Network affiliates that air continuous

advertisements. Therefore, complaints about lack of advertiser support coming from these stations

may stem from the unique nature of their program format and not from the racial or ethnic

composition of their viewing audience. 

Excluding the responses of the Home Shopping stations to the survey questions, CRF found

only one Spanish-language station that alleged negative advertiser support due to its Spanish-language

format and the minority composition of its viewing audience. A Spanish-language station located in a

different market responded in just the opposite way—that it had not experienced lack of advertiser

support for Spanish-language programming or its minority viewing audience. 

The one Spanish-language station that reported negative advertising support for its

programming noted that racial discrimination had been encountered in other forms as well. According

to the General Manager of a television station in the south-west region, comments from advertisers

such as the following are frequently heard:

Mexicans have bad credit, Mexicans cannot afford our product.

228

With regard to the issue of whether minority sales staff or status as a minority owner have any

bearing on the decision-making of advertisers, the response of the stations was divided and could not

form the basis of any broad generalizations.

A. Results of the Survey Questionnaire

The survey questionnaire was completed by eleven stations.229 While this number may be

insufficient to support broad generalizations, the survey results contain widely varied responses

regarding advertiser support. Station characteristics that account for some of the range of experiences

with advertisers include Spanish-language format, continuous advertisement format, and market

location. Further research in this area should attempt to control for these factors. 
Section III. Minority-Owned Television When Being No.1 is Not Enough

Page 87

 

230 Univision is the largest programmer of Spanish-language television in the U.S. The Univision

Network is publicly-traded and non-minority-owned. Univision owns several stations, while other

affiliates are independently owned but air Univision’s programming. 

 

231 Granite Broadcasting is a minority-owned company that owned 12 television stations in 1997. 

See, BIA MasterAccess database, 1998. The majority of its programming is “general market”

format.

1. The Relationship Between Minority-Oriented and Spanish Language Programming and

Advertiser Support.

Of the eleven stations that responded to the survey, only two indicated that more than half of

their programming is targeted to minority viewers. Both of these stations were Univision affiliates230

that program a significant portion of their programming in the Spanish language. 

In response to questions concerning discriminatory advertising practices related to

programming, only a few stations noted that such practices might be related to programming in a

language other than English or programming targeted to minority viewers. The two Spanish language

stations provided opposite responses to this issue. Specifically, KLDO indicated that advertisers do not

withhold support due to minority viewership or non-English programming. The other Spanish language

station, KINT, responded just the opposite—that advertisers do withhold support due to minority

viewership and also because of non-English programming. 

Two stations owned by Granite Broadcasting,231 neither of which air Spanish language

programming or devote over half of their programming to minorities, provided responses that were

consistent with KINT— that foreign language and minority targeted programming will adversely affect

advertising performance. Granite Broadcasting station agreed that advertisers are less likely to

patronize minority programming and non-English language programming. WTVH disagreed with those

statements. 

In summary, the response to the questions was as follows:. 

Q. Does your station target more than half of its programming to

minority viewers?

A. Yes (two stations)

A. No (nine stations)

and...
Section III. Minority-Owned Television When Being No.1 is Not Enough

Page 88

 

232 One Home Shopping Network affiliate indicated that its programming targets the general

population and that no specific efforts are directed toward minority viewers. 

Q. If your answer to question #1 is “no,” is there another socioeconomic audience segment toward which a majority of your

programming is targeted? 

A. Yes. (one station232)

A. No (eight stations)

and...

Q. Do you believe that advertisers or their advertising agency

representatives engage in practices to withhold advertising support to

a station if they perceive the station’s programming is targeted to the

viewers described in questions 1 or 2?

A. Yes (two stations)

A. No (nine stations)

and...

Q. Do you believe that advertisers or their advertising agency

representatives withhold advertising support to a station because the

station’s programming is in a non-English language?

A. Yes (three stations)

A. No (seven stations)

and...

Q. Do you know of specific advertisers or advertising agencies that

view your programming and/or audience reached as negative factors

which prohibit them from using your station as an advertising

vehicle?

A. Yes (two stations)

A. No (nine stations)
Section III. Minority-Owned Television When Being No.1 is Not Enough

Page 89

 

233 KINT is owned by Entravision Holdings LLC, an Hispanic broadcaster.

The two stations that responded in the affirmative to the last question also indicated that

advertiser support is either withheld or substantially discounted due to their programming. The Home

Shopping Channel indicated that 71% or more of its advertising support is either withheld or

discounted due to its programming. One of the Spanish language stations indicated that 25-30 percent

of its advertising support is lost due to the nature of its minority-oriented programming. 

These same two stations and an additional Home Shopping affiliate indicated that members of

their sales staff have had encounters with ad agencies or advertisers that would “lead [one] to believe

that [their] station’s programming was a negative factor in obtaining advertiser support.” In response

to a question about the level of decision-making within the advertiser community, one Home Shopping

affiliate attributed the lack of advertiser support to decision-making by ad agencies. The other Home

Shopping affiliate attributed the lack of support to ad agencies as well as advertisers. Ad agencies were

perceived as responsible for the lack of support, according to the Spanish-language station.

Only two stations estimated the amount of lost sales related to negative advertiser perceptions

about minority-targeted programming. One Univision affiliate estimated lost sales at 17 percent. A

Home Shopping affiliate estimated lost sales in excess of 60 percent. It should be noted that the

programming of both of the Home Shopping affiliates is not targeted to minority viewers. It is

presumed, therefore, that any negative perceptions on the part of advertisers are related to the

continuous advertisements that are aired by these stations.

2. The Relationship Between Ownership and Control by Minorities and Advertiser Support

The response was divided on the question of whether ownership or control by minorities

negatively affected advertiser support. Four of the eleven stations responded in the affirmative to the

question, “Do you believe that advertisers or their advertising agency representatives engaged in

practices to withhold advertising support to your station, if they perceive the station’s ownership and

control is by minorities?” WHSL, a Home Shopping affiliate in St. Louis, Missouri, and KINT,233 a

Univision affiliate in El Paso, Texas indicated that they knew of specific advertisers or agencies that

view their station’s ownership or control by minorities as negative factors that hinder advertiser

support.

Questions related to ownership were completed by the latter two stations as follows; the other

nine stations did not respond to these questions.
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Q. Has anyone on your station’s sales force reported or

discussed any encounters with advertisers or their advertising

agency representatives which would lead you to believe that

your station’s ownership and control by minorities as a

negative factor in obtaining 

advertising support? 

A. Yes (WHSL & KINT)

and...

Q. If you answered yes to question # 5, at which level in the

decision making process do you believe your station’s potential

to obtain advertising support from advertisers or their

advertising agency representatives was impaired?

A. Mostly from advertisers (KINT)

A. [Advertisers and ad agencies] evenly (WHSL)

and...

Q.Give an estimate of sales loss which can be attributable to

advertisers or their advertising agency representatives

perception of your station’s ownership and control by

minorities

A. 3% to 5% (KINT)

A. 61% or more (WHSL)

The next section summarizes the survey findings concerning minority sales personnel.

3. The Relationship Between Minority Sales Staff and Advertiser Support

Stations were asked to respond to questions concerning the experiences of minority sales staff

in relationship to advertiser support. Four of the stations indicated that the race or ethnic background

of their sales staff does have a bearing upon the decision-making of ad agencies or advertisers to support

their station. Seven of the stations indicated that the race of the sales staff was not a factor. The first

four stations also indicated that the minority status of their sales staff can have either a positive or a

negative impact on the decision-making of advertisers. Specifically, in some instances, status as a

minority sales person was a positive factor in encouraging sales, and in another set of instances the

impact was negative.
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The following questions were completed by only the four stations that indicated that the race

or ethnic background of sales personnel has a bearing upon advertiser support.

Q. What percent of cases has the minority race or ethnic background of your

sales representative had a negative bearing upon decision of an agency or

advertiser to place an ad with your station? 

A. 0% to 10% (two stations)

A. 11% to 30% (two stations)

and...

Q. What percent of cases has the minority race or ethnic background of

your sales representative had a positive bearing upon decision of an agency

or advertiser to place an ad with your station?

A. 0% to 10% (three stations)

A. 71% and above (one station)

Three of the television stations indicated that they knew of specific advertisers or ad agencies

that had not supported their station due to the minority status of the salesperson. The same three

stations also provided an indication of how frequently advertiser support is withheld due to the

minorities in the sales force. 

Q. If yes, please indicate the percentage of instances during the course of a year

that advertising support is either withheld or substantially discounted because of the

minority status of your salespeople.

A. 0% to 10% (one station)

A. 11% to 30% (three stations)

Four of the eleven stations also indicated that members of their sales force reported encounters

with advertisers or ad agencies that led them to believe that the race or ethnic background of the

salesperson contributed to the inability to obtain advertising. All four of the same stations reported

that those difficulties stemmed from the advertisers themselves, as opposed to the ad agencies.
Section III. Minority-Owned Television When Being No.1 is Not Enough

Page 92

 

234 See, NTIA Minority Broadcast Ownership Report, 1997. The report listed 20 AfricanAmerican, 9 Hispanic, and 1 Asian owned television stations. Respondents to the survey included 9

African-American and 2 Hispanic-owned stations. 

Five of the stations indicated that they experience a 0% to 10% loss in sales that can be

attributed to advertiser or ad agency perceptions concerning the minority status of sales personnel

representing the station. 

As a summary question, the survey requested the stations to rate several factors that potentially

affect the decision-making of agencies or advertisers. Averages for the responses provided by the eight

stations that supplied answers to the question are as follows:

Question: To what extent do the following factors negatively

influence advertiser or advertising agency decisions to

advertise on your station?

Average Rate 

on a scale of 1 to 10

(1 denotes highest

level of importance)

programming targeted to minority audience 8

programming targeted to [other specific audience demographics] 9

station ownership and control by minorities 10

race/gender of the account executive representing the station 8

The next section suggests areas for further research.

B. Recommendations for Further Policy Analysis

The survey instrument for this study was sent to all 30 television stations listed as owned by

minorities by the U.S. Department of Commerce.234 The eleven stations that elected to participate

represent 36.6% of the sample universe. Given the small size of the survey response and the small

number of minority television owners, future research should endeavor to achieve survey participation

that is representative of the ethnic and network diversity that characterizes minority ownership.

In order to better understand the relationship between advertiser support and minority-owned

television stations, follow-up research should control for certain factors that this study found to

influence the findings: 1) non-English language (e.g. Spanish or Chinese) programming; 2) market

location, which may influence perceptions regarding minority ownership; and 3) affiliation with the

Home Shopping Network, which appears to cause reluctance on the part of some advertisers due to

lack of entertainment and informational programming. Future research should also examine the impact

of advertising practices on the choice of whether shows related to minorities are produced or aired, and
Section III. Minority-Owned Television When Being No.1 is Not Enough

Page 93

 

235 Of the 20 African-American owned television licences listed in the U.S. Department of

Commerce Minority Ownership Report for 1997, five were Home Shopping Network affiliates

compared to four ABC, five NBC, two CBS, one Fox, and one World Broadcasting affiliates. One

station was independent and the affiliation for one other was unknown.

on the advertising performance of such shows. It should also examine the impact of advertising with

regard to programming oriented toward women.

An additional issue that warrants further exploration is why so many African-American

television owners are affiliated with the Home Shopping Network. An estimated 19% to 25% of the

stations owned by African-Americans air 24-hour commercials.235 Questions to be explored include

whether capital market discrimination is preventing African-Americans from establishing affiliations

with the major networks and program syndications. The extent to which African-Americans been able

to migrate from HSN to the major networks should also be researched. 
 

236

 See Glossary, Appendix K.

IV. Conclusion

The findings of this study can be summarized as follows:

A. Radio stations that target programming to minority listeners are unable to earn as much

revenue per listener as stations that air general market programming.

B. Minority-owned radio stations earn less revenue per listener than majority broadcasters that

own a comparable number of stations nationwide.

C. These disparities in radio advertising performance may be attributed to a variety of factors

including economic efficiencies derived from common ownership, assessments of income and

spending patterns, and racial stereotypes that influence the media buying process. It was

beyond the scope of this study to determine the precise degree to which each of these factors

may explain these disparities. 

D. Anecdotal data collected by the study suggest that in certain instances the media buying process

is guided by factors including: stereotypical perceptions of minorities, presumptions about

minority disposable income, the desire to control product image, unfounded fears of pilferage.

E. Anecdotal data suggest that the factors mentioned in item D appear to form the basis of “no

Urban/Spanish dictates” and “minority discounts” as practiced by advertisers and/or ad

agencies.

Advertisements are the life-blood of the broadcast industry. To the extent that “no

Urban/Spanish dictates” and “minority discounts”236 impede the ability of minority-formatted stations

to obtain advertisements, such stations are less able to serve the needs of the listening public.

The consensus view of the media executives interviewed and surveyed for this study was that

advertisers and/or ad agencies place less value on minority consumers. This view was supported by

quantitative evidence that indicated that stations which target programming to minorities earn less ad

revenue per listener than stations which program to the general market. Perhaps the single most

important observation that can be made in light of the evidence is that it is the interest of radio listeners

that are ultimately being imperiled. 

Minorities overwhelmingly patronize stations that are hampered by “no Urban/Spanish

dictates” and “minority discounts.” It is their choice of programming options, therefore, that are being

compromised. However, these practices also have implications for all Americans. By 

lessening the incentives to air a diversity of ideas, including views and programming of interest to

minorities, all Americans receive a narrower range of information.

In the context of EEO requirements intended to promote programming diversity, FCC

Chairman William E. Kennard and Commissioner Gloria Tristaini commented:
Section IV. Conclusion When Being No. 1 is Not Enough 

Page 95

 

237 Joint Statement of FCC Chairman William E. Kennard and Commissioner Gloria Tristani,

1998 EEO NPRM.

 

238

 Statement of Policy on Minority Ownership, 68 FCC 2d 979, 980 (1978) (“[W]e are compelled to

observe that the views of racial minorities continue to be inadequately represented in the broadcast

media.”(notes omitted)).

 

239 NTIA Minority Ownership Report, 1998, page 1; Section One, page 1; Section Two, page 1,

Section Three, page 1, Section Four, page 1.

 

240

 See, Metro Broadcasting, Inc., v. FCC, 497 U.S. 547, 581 (Stations owned by minorities “appear

to have specific impact on the presentation of minority images in local news, inasmuch as minorityowned stations tend to devote more news time to topics of minority interest and to avoid racial and

ethnic stereotypes in portraying minorities.”(notes omitted)).

[T]he issue is whether we will ensure that the mass media reflect all of society for the benefit of all of

society. We believe that these principles are the bedrock of our democratic system of government and our

way of life as a free and inclusive society.237

If we are to continue making great strides in ridding the media of racial and ethnic stereotypes

and ensuring that news and public affairs programming is responsive to the needs of all sectors of

society, practices that discriminate against the minority consumers must be prohibited. Accordingly,

the Commission should exercise its jurisdiction to further investigate how “no Urban/Spanish dictates”

and “minority discounts” act as market entry barriers, and take appropriate action. By doing so, the

Commission will promote competition and ensure that the broadcast media is able to serve the needs

of diverse sectors of American society.

Twenty years ago, the Commission acknowledged that the views of minorities are inadequately

represented in the broadcast media.238 In 1998, only 2.9% of the nation’s radio stations and 2.6% of

the country’s television stations were owned by minorities, although minorities comprised

approximately 27% of the population.239 Advertising practices that impede competition, market entry,

and access to capital for minority-formatted stations further compound the problem of inadequate

minority representation in the media. 

“No Urban/Spanish dictates” and “minority discounts” also appear to have a disproportionate

impact on minority broadcasters. Seventy-five percent of minority-owned radio stations air

programming targeted to minority listeners. Only eight percent of majority-owned stations air

minority-formatted programming. Therefore, policy initiatives designed to address discriminatory

advertising problems will greatly benefit minority broadcasters by removing barriers to market entry

and growth, enabling such broadcasters to serve the American public.240
Section IV. Conclusion When Being No. 1 is Not Enough 

Page 96

 

241 1998 May See $2 Billion in Online Ads, The Industry Standard, http://www.thestandard.

com/articles/industry-index/0,1447,102,00html, accessed December 4, 1998.

 

242 Putting Money Where Your Mouse Is, Washington Technology, September 26, 1996, 1996 WL

11557269

 

243 FAQs, Interactive PR and Marketing News, Phillips Business Information, Inc., August 29,

1997, 1997 WL 10344721. 

 

244

 James Cobb, Cyberspace Offering More For On-Line Blacks, The Plain Dealer, Cleveland, Ohio,

January 8, 1996, 1998 WL 3529959.

 

245 Ethnic Sites Find Growing Audience, Advertiser Base, Electronic Marketplace Report, Simba

Information, Inc., November 5, 1996, 1996 WL 8691094.

In the private sector, there is a need for voluntary action on the part of advertisers and ad

agencies. The private sector should adopt a code of conduct that prohibits “no Urban/Spanish

dictates”and “minority discounts.” Ad solicitations by urban and Spanish formatted stations should

be evaluated on basis of individual merit and market research, as opposed to blanket policies that

disfavor advertising to minorities.

The issues raised in this study hold implications not only for radio, but for other forms of

communication as we enter the next millennium. Advertising over the Internet during the second

quarter of 1998 increased 97%, compared to the second quarter of 1997.241 Internet advertising is

projected to reach $20 billion by the year 2000.242 Like radio, the Internet is a medium that plays host

to targeted marketing. In response to an inquiry about critical success factors for advertising on the

Internet, one trade publication said:

Companies targeting well educated, affluent males or ‘average’ college students have great potential for success,

because their segments are highly represented on the Internet.243

Such broad generalizations about Internet users tend to perpetrate stereotypical thinking about

the characteristics of online users. The Plain Dealer published an article that addressed such thinking.

The article opened with the following line:

Quick now. Conjure up a stereotype of an on-line computer user. Male, right? Mid-30s, maybe 40s. White.244

Such assumptions ignore the significant and growing presence of minority online users as

demonstrated by the 300,000 to 750,000 hits that NetNoir (a web site oriented to African-Americans

users) receives every month.245 In the same Plain Dealer article, a Black software developer is quoted

as saying:
Section IV. Conclusion When Being No. 1 is Not Enough 

Page 97

 

246 Note 244, supra.

Content is the bridge that gets people, and particularly people of color, on-line...It makes people feel welcome.246

Such online content is not unlike minority-formatted radio. And like radio, the success of web

sites (i.e. those that appeal to minorities) depends on advertising.

Accordingly, it is important that we as a society become aware of how stereotypes may affect

content on radio, television, and the Internet. Stereotypes may drive resources toward or away from

a station or web site. Exclusionary practices and those which pay stations less because their audience

is composed of minority group members, must be eliminated to ensure a diversity of ideas,

programming and viewpoints on the broadcast media. This will also ensure that the new media can

serve the interest of all Americans.