Commercial Interest In Radio

Advertising and sponsorship of radio programs during the 1920s was on of the most influential factors in the future of radio.

Commercial interest, or advertising, is a way for companies to present their product to the public.  As most people look to some form of media for news or entertainment, television and radio is often a way that sponsors look to advertise.  These advertisements help fund the network, which broadcasts programs and also helps to inform the public.  In the Radio Act of 1927, the FCC stated that the radio must act in the "public interest, convenience and necessity" of the American people.  Later, they would define that advertising was part of the public interest because it encouraged consumerism.

In the early 20s, AT&T began to charge broadcasters a fee for using the radio stations.  This soon led to advertisers paying to have their product pushed during radio programs.  As radio was a low profit medium, these advertisements helped to create revenue.  Beyond just this, the advertisements helped to create a unique format for radio.  Over the course of about 5 years,  privately owned stations became affiliates of larger networks, which then decided what programs were broadcast.  The advertisements funded programs that allowed people all across the country to feel as if they were a part of an imagined community.  This radio format changed culture, by increasing knowledge of other regions and national issues. One example of this can be seen in the newscasts made by Edward R. Murrow.  Murrow presented both national and global stories that reached the American public and changed opinion towards war and life in general.