Advertising in radio has been relatively stable over the past 30 years

Question

Advertising in radio has been relatively stable over the past 30 years. The radio ads that air today are remarkably similar to those aired 30 years ago. Most ads are either a 30- second presentation focusing on services and companies or an endorsement by a radio personality. These ads have been quite successful. However, the ever-changing dynamics of internet radio pose new challenges to companies wishing to advertise on the radio. Those advertisers are being forced to adapt their technique and methods on a regular basis to adapt to new forms of internet radio.

For instance, when radio stations stream their content onto the internet some ads must be stripped out for legal reasons. Advertisements featuring radio personalities often have to be removed because there is no arrangement to pay for the rights of on-air talent, writers and producers. This commonly used advertising type, featuring a trusted personality endorsing a product of service, will not be heard by the listeners who choose to listen on internet radio. Thus, advertisers have to consider the benefits of producing these types of ads in the new environment.

RightSpot, the leading advertising agency in internet radio suggests that new radio advertising be geared to the internet format, which allows for more specialization and opens a market for small local business. RightSpot is a service that will let advertisers of any size create commercials for their desired audience and purchase ads that will be placed into the streamed audio, doing away with the need for radio executives to visit clients and choose correct placement. Rightspot will allow clients to define and locate their audience using sophisticated demographic data or geographic information. Using this new technology, advertisers could decide to focus their ads to appeal to the type of person they expect to use their goods and services. For instance, a chocolate company could indicate that it wanted it’s add placed after love songs to increase the likelihood that listeners would desire it’s products. Local companies could tailor their ads to play only in the local demographic while global companies could advertise in all markets.

RightSpot and similar agencies are working to turn a nascent field into a viable business that benefits advertisers of any size. They expect the percentage of internet radio listeners to increase from 24 percent of listeners in 2006 to 50 percent in 2010. This increase will further add to the necessity for radio advertisers to change methodologies. Those that embrace the changes will certainly see positive results.   1 
 1. The Primary purpose of the article is to

(A) Demonstrate why radio ads featuring an on-air personality are no longer effective.
(B) Suggest that radio advertisers use RightSpot to craft new advertising strategies geared toward internet radio.
(C) Describe changes in radio formats and their effect on radio advertisers
(D) Describe how radio advertising has remained relatively stable for the past 30 years.
(E) Describe the ways in which Right Spot and similar agencies are turning a nascent field into a viable business.

2 
 2.The author implies that all of the following are changes internet radio is causing in the industry EXCEPT

(A) Advertisements featuring radio personalities must are always removed because there is no arrangement to pay for the rights of on-air talent.
(B) Radio ads from 30 years ago are similar to those aired today
(C) Internet radio allows advertisers to use demographics to focus their advertisements on their target audience.
(D) The percentage of internet radio listeners is expected to more than double from 2006 to 2010
(E) Internet radio does not contain all of the same advertisements that are in the same non-internet broadcast.

3 
 3. According to the article, RightSpot believes internet radio provides new opportunities for

(A) On-Air personalities
(B) Internet radio companies
(C) Small local businesses
(D) Advertising agencies
(E) Radio executives

4 
 4. The tone of the author towards advertising opportunities in internet radio can best be described as

(A) Distrustful
(B) Frustrated
(C) Enthusiastic
(D) Disinterested
(E) Fervent

roopika2990 · Answer

Can you please explain why A for q2 ... it is clearly mentioned as a change here  For instance, when radio stations stream their content onto the internet some ads must be stripped out for legal reasons. Advertisements featuring radio personalities often have to be removed because there is no arrangement to pay for the rights of on-air talent, writers and producers.

aryabhatta · Answer

All the others one were pretty easy, apart from q2. q2 says 
 The author implies that all of the following are changes internet radio is causing in the industry EXCEPT 
Option B is not caused by internet radio.
Please explain.

Dmitriy · Answer

Because "often have to be done" is not the same with "MUST be done". The fist means in most cases, while the second one means always. This kind of trap is quite often used in GMAT.

Dmitriy · Answer

As I understood the question we should eliminate all reasons that changed the industry. Fot instance, lets look on D. The growing number of users is not caused by the internet radio, but obviously it is the reason of changes. B plays the same role. The industry had not been changed and was outdated; therefore, it had to be changed for needs of the internet marketing.

In contrast, "A" gives us the reason not mentioned in the article. So A.

Avinash99 · Answer

But doesnt the language mean that ...the changes internet radio are causing.... A may b extreme but is still relevant B is something IR has no effect on D may be thought of as ...the features are causing the viwershi to increase as in ..its the effect of the good things abt IR B still seem the right answer may b i understood something incorectly lease explain

US09 · Answer

For question number 2, even though A is an extreme statement, B is not stated as a change that internet radio is causing. I marked B. Still do not understand why A is correct. Can anyone please explain?

Nikhil · Answer

Hello  urvashis09

The statement B says that "Radio ads from 30 years ago are similar to those aired today" and following is what I understand from the passage.

The internet radio has already started in the past. It is not something that is going to start in the future or starting now. Since the internet radio has already started and the author says that radio ad's today are similar to those 30 years ago, I think the internet radio has a role in keeping these ads similar. This eliminates option B.

Does this make sense ?

bM22 · Answer

Hi  acegmat20 ,

4. The tone of the author towards advertising opportunities in internet radio can best be described as

A) Distrustful
B) Frustrated
 C) Enthusiastic
 D) Disinterested
E) Fervent

Explanation: Author in the passage discusses about how the radio internet radio pose new challenges to companies wishing to advertise on the radio and how different companies are adapting and gearing up to the internet format. Author seems pretty enthusiastic, as he mentions in the last para:
"RightSpot and similar agencies are working to turn a nascent field into a viable business that benefits advertisers of any size. They expect the percentage of internet radio listeners to increase from 24 percent of listeners in 2006 to 50 percent in 2010. This increase will further add to the necessity for radio advertisers to change methodologies. Those that embrace the changes will certainly see positive results."

The author doesn't seem to be Distrustful, Frustrated, Disinterested or overly passionate. He simply mentions the obstacles that the radio companies are facing and how they are trying to overcome. Other options are too extreme. Thus C is the best answer.

Hope This Helps.
Thanks.

VerbalBot · Answer

Automated notice from GMAT Club VerbalBot: 

A member just gave Kudos to this thread, showing it’s still useful. I’ve bumped it to the top so more people can benefit. Feel free to add your own questions or solutions.

 This post was generated automatically.

Advertising in radio has been relatively stable over the past 30 years

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Reading Comprehension (RC) Questions

Advertising in radio has been relatively stable over the past 30 years

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards