... it would be hard for small market stations to turn a profit. A fellow poster says that it profits were rising. I think they are confusing profit with revenue. So, is there money in small markets?
Profits and revenue are both relevant. Your ultimate goal is profit: imagine having huge revenue, but a larger outlay causing loss!!
To get long-term revenue in a small market, you must provide something people want.
In this age of McRadio, all the formats are so inbred and monotone. Country is all suburban country pop-ish stuff. All Top-40 sounds like Adult Contemporary and Hot AC, etc. Even religious music stations sound a lot like regular AC these days. Old rock is almost identical on all stations playing said format. Then you have a switch up for talk and sports radio that is outside the general McRadio formatting of iHeart and other big chains.
A local outlier in my area began playing gritty, old country standards and novelty pieces from the 50s-80s, and their ratings rose them into prominence in a rimshot market of 200,000+.
A local small-town station hangs on by doing local reporting, farm reports, all local sports for HS and a college, and playing some country, switching to 80s R&B at night for the university students (mostly urban youths).
These stations do well because they have relatively large incomes, a connection to people through unique programming, and small outlay.
The gritty-country station is without DJs or on-air personalities. They offer funny interstitials. Talk is scarce, music is king. Automated. It probably has a crew of one or two, outside of advertising sales. $$$$
The local sports-farm station is run almost entirely by a family: mom, dad, two kids. They have another who does sports broadcasting from local schools 300+ days a year. They do well.
When I hear a radio out here, it is usually tuned to religious radio or the local farm radio, or a talk station. I would assume most rural areas are like this.
Modern music is rejected due to irritability and a cultural disconnect. Info is key, but pleasant or memorable music is desired.
Rural programming is completely against the grain of urban programming, if you are an independent station. You MUST cater to your audience and keep expenditures low.