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20 Chicano-Latino L. Rev. 35 (1999)
A Tale of Two Systems: Minority Consumers Devalued by Advertisers

handle is hein.journals/chiclat20 and id is 37 raw text is: A TALE OF TWO SYSTEMS: MINORITY CONSUMERS DEVALUED BY ADVERTISERS WILLIAM E. KENNARD CHAIRMA N FEDERAL COMMUNICATION COMMISSION Blacks don't buy Volvos. Hispanics don't bathe. African-Americans are suspects, not prospects. All of these are stereotypes; generalizations that we all thought and hoped had gone the way of the black-and-white tele- vision and the rotary phone. Unfortunately, this is not the case. All of these sentiments were expressed by various advertis- ers and advertising executives. They were excuses given for not advertising on minority-formatted radio stations, even on outlets that are some of the highest-rated stations on the dial. In a first of its kind study of the advertising industry, the FCC has found that the story of the radio business is a tale of two systems. Some companies refuse to advertise on urban-formatted or Spanish-language stations or are told by their advertising firms to do so. And others will only do so, but only after demanding deep discounts - often as large as 59 percent. Because of these practices, minority-formatted radio stations find it harder and harder to generate the revenues they need to remain profitable. In fact, our study found that these practices reduce revenues to these stations by as much as two-thirds. The bottom line is clear. They are being deprived of advertising, the lifeblood of their business. This is a system whose tale must be told, and whose story must end. These practices are not only unfair. They do not make any business sense. Madison Avenue needs to understand to- day's Main Street. There is not only a diversity of peoples in America, but a diversity of types of people within each group - rich and poor, educated and unskilled, blue and white collar. Unfortunately, the examples offered in this study suggest that some advertisers do not recognize the reality of minority consumers and the power of minority-formatted stations in reaching them. They fail to realize that there are untapped mar-

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