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The rapid development of new media has led conventional media to the edge of existence radio is still significant. The main problem faced by radios is the continuous decline in advertising revenue. The factor of free trade escalation which made a number of radio stations shut down. In the midst of these difficulties, there were a number of local radios that survived. Therefore, it is necessary to study how local radio can survive its business, and how business diversification is done by the owner. The method used in this research is a case study on Thomson Radio in Bandung and Aden Radio in Cianjur. The result of the study showed that local radio managers are creative to survive, so that revenue from advertising is no longer the main target as a source of income. Business diversification is done in the form of non-broadcasting businesses; such as being an agent for direct sales or off-air activities. Local radio acts as a marketer and seller to takes advantage of herbal products. Non-cash business is actually dilemma if it is associated with broadcasting regulations which stated that broadcasting income should only come from business related to broadcasting. Thus, fair broadcasting rules are needed.

Challenges of Local Radios in Advertising Their Business