The 15 largest radio broadcasters, which own about 11 percent of all U.S. stations, accounted for about 42 percent of all industry advertising revenues in 1997, up from six percent of stations and 34 percent of revenues in 1996. The ensuing consolidation has allowed for the centralization of back-office functions such as sales, billing, and marketing, and investment in new product and sales efforts. This one-stop shopping concept boosts the attractiveness of radio as an advertising medium, no matter whether the advertiser is a local merchant, or national advertiser. A majority of these firms are headquartered in major cities such as New York, Chicago, and Los Angeles. Although traditionally dominated by large, public corporations, most advertising agencies average only 11 employees.
Advertising agencies vary greatly in size and scope.
Smaller agency personnel are responsible for a variety of tasks, while those in larger agencies find their job duties to be more defined. Agencies generally receive compensation for production costs from the client, plus a standard 15 percent commission from the media source for the ad placement. However, this pricing structure is changing from a flat fee to a cost plus contract structure. Firms that are currently on the Internet. The profile of the owners of these businesses are typically 30 - 49 years old, male.