Running an Internet broadcast station requires a financial commitment regardless of its size. There are monthly expenditures for station operation that include : Internet access, media server bandwidth, studio equipment, computer hardware, and facilities costs.

The amount of money required to run an Internet broadcast station is dependent on the size of the broadcast operation. Some of these finances can be generated from audience donations, or program subscriptions, however this approach normally does not cover all incurred expenses.

Internet based advertising content can provide a reliable source for operating income. Broadcasters can place advertising on the station website, or within the broadcast itself. ( This advertising content can be in audio or video format. )

Internet based advertising has matured into a very profitable and respectable business sector. The advertising content can be broad or narrow based. Broad based advertising is well suited for high traffic, large audience broadcast stations. Niche advertising markets have also proven to be very profitable. Niche advertising combined with niche media content has been been able to out perform broad based, high traffic advertising in some instances.

There are several things to consider prior to committing a broadcast station to a particular method of advertising.

These include :

Which media format the station will be offering - audio or video content ?
( Advertising can be tailored to fit specific media formats. )

What is the target audience of the Internet broadcast station ?
( These demographics are based on the media content that the station broadcasts in addition to analyzing the stations web site traffic. )

Which method of advertising is best suited for the Internet broadcast station's financial goals ?
( Will this be the primary or secondary source of income for station operation? )

Broadcasters should thoroughly research and test various advertising methods before finalizing their choice for a advertising format. A time frame of sixty to ninety days should be allowed for testing different advertising formats. It is very important to document these results, as this will allow the broadcast station to choose the best suited advertising format.

A well planned and executed advertising program can provide both valuable experience and operating income to an Internet broadcast station.