Internal and External Competition for Advertising Revenues in the Greek Radio Market

Abstract

This study investigates both the internal competition for advertising revenues among radio stations and the external competition with other media. The study of the advertising revenues of the Greek radio market from 1988 to 2007 shows that there is a low concentration in the sector, allowing low barriers to entry. However, the radio market is inferior to other media regarding advertising revenues. A key reason is the constant decrease of the advertising cost, something that in the future may affect the intensity of competition and the quality of radio station content.

Notes

We would like to thank Thimios Zaharopoulos for important help improving the previous version, Manwlis Heretakis for giving advice for the data, Kwstas Xouris and Xenia Kourtoglou for providing us the data, and the two anonymous reviewers for their useful comments.