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A radio station makes money by advertising on its station. Much like TV audiences, this includes streaming and cable. Radio audiences are the product being sold to advertisers by a radio station.
Radio stations can also make extra money from sponsored events and sponsored content. However, technically this is still a form of advertising revenue. In nearly every way a radio station makes money, it is somehow linked to advertising.
Companies pay radio stations to broadcast audio commercials on their stations that target that radio station's audience. Sometimes radio hosts or radio DJs will also read advertisements on air.

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