Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary...

34
chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

TAGS:

Transcript of Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary...

Page 1: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

chapter twelve

Electronic Media:

Television

and Radio

McGraw-Hill/IrwinEssentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Page 2: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-2

Objectives_1

Describe the advantages and drawbacks of broadcast television as an advertising medium

Discuss the advantages and drawbacks of cable television as an advertising medium and explain how it differs from broadcast television

Explain the process of buying cable and broadcast TV time

Evaluate the different types of television advertising available

Page 3: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-3

Objectives_2

Describe the process of TV audience measurement

Discuss the main factors to consider when buying television time

Analyze the pros and cons of using radio in the media mix

Explain the major factors to consider when buying radio time

Page 4: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-4

The Electronic Media Landscape in the U.S.

1,685 local commercial TV stations 10,000+ local radio stations 4 major TV networks 10,000+ local cable systems

Page 5: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-5

Top Cable TV Networks

Discovery Channel ESPN Cable News

Network (CNN) Turner Network

Television (TNT) USA Network Nickelodeon

TBS Superstation Spike TV Arts & Entertainment

(A&E) Lifetime ESPN2 The Weather

Channel

Page 6: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-6

Cable Facts

Cable reaches 85% of TV households Most consumers receive more than 100

channels, but watch only 15-19 channels

Cable households watch more hours of TV than non-cable households

Most channels are privately owned Cable fees make up about 1/3 of cable

revenues

Page 7: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-7

Broadcast TV Facts

Heaviest viewers are middle-income, high-school-educated

Average U.S. home viewers watch 8 hours of TV (includes cable and VCR/DVR) per day

Older women watch the most TV

Page 8: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-8

Pros of Broadcast TV Advertising

Mass coverage Relatively low cost

per viewer Some selectivity Persuasion power

Impact Creativity Prestige Social dominance

Page 9: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-9

Power of Television

Page 10: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-10

Cons of Broadcast TV Advertising

High production cost

High airtime cost Long lead times Limited

selectivity

Audience fragmentation

Brevity Clutter Zipping and

zapping

Page 11: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-11

What forms of advertising will replace traditional commercials?

Sponsorship of TV programs and televised sporting events

Product placements Interactive advertising during programs Ads embedded in VOD programs Ads within the DVR main menu Ads within VOD main menu Celebrity endorsement deals

Page 12: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-12

Pros and Cons of Cable TV Advertising

Pros Selectivity Audience

demographics Low cost Flexibility Testability

Cons Limited reach Fragmentation Quality Zipping and

zapping

Page 13: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-13

Buying TV Time

Sponsoring TV programs Participating in programs Purchasing spot announcements Purchasing spots from syndicators Running program-length ads

Page 14: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-14

Participation: Most Expensive Shows

American Idol Desperate

Housewives CSI Grey’s Anatomy ER

Extreme Makeover Survivor The Apprentice The Apprentice,

Martha Stewart Two and a Half Men

Page 15: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-15

Syndication

Largest source of programming Forms

– Off-network– First-run– Barter

Page 16: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-16

Exhibit 12-7a Network Approach

Page 17: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-17

Exhibit 12-7b Syndication Approach

Page 18: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-18

Growth in Program-Length Ads

Consumers pay attention and can respond immediately

PLAs combine the power of advertising, direct response, and sales promotion

PLAs allow for product demonstration and brand differentiation

Results are measurable and accountable

Page 19: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-19

TV Audience Measurement

Nielsen Media Research– Nielsen Television Index (NTI)

• People meters in 55 markets• Diaries in 210 local markets during

sweeps Simmons Market Research Bureau Mediamark Research

Page 20: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-20

Audience Measurements

TV Households(TVHH)

Audience Composition

Households using TV

(HUT)

Total Audience

ProgramRating

Audience Share

Page 21: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-21

TV Dayparts

Daytime: 9:00 a.m.-4:00 p.m. Early fringe: 4:00-5:30 p.m. Early news: 5:00 or 5:30-7:30 p.m. Prime access: 7:30-8:00 p.m. Prime: 8:00-11:00 p.m. Late news: 11:00-1130 p.m. Late night: 11:30 p.m.-1:00 a.m.

Page 22: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-22

Buying Television Time

Determine available programs and costs

Analyze program efficiencies

Negotiate prices with station reps

Determine number and frequency of viewers

Review affidavits of performance

Sign broadcast contracts

Page 23: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-23

Program Efficiency

Cost Per Point (CPP) = Cost/Rating

Cost Per Thousand (CPM) = Cost/Thousands of People

Cost Per Thousand-Target Market (CPM-TM) =Cost/Thousands of People in Target Audience

Page 24: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-24

Radio Facts

95.4% of the U.S. population listens to the radio at least once in an average week

The average American listens to the radio more than 3 hours per day

The CPM for radio has risen less than for any other major medium

Page 25: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-25

Pros of Radio Advertising

Frequent access to large audience

Selectivity Cost efficiency Visualization Timeliness

Immediacy Local relevance Creative flexibility Image transference Enhanced

interactive aspects

Page 26: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-26

Cons of Radio Advertising

Limitations of sound Segmented

audiences Short-lived/ half-

heard Clutter

No visual component

Threats of satellite radio and personal music systems

Page 27: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-27

Programming Formats

Country News/Talk Religious Oldies Adult

contemporary Classic rock Spanish

Top 40 Soft adult

contemporary Easy listening Rock Alternative rock Jazz Classical

Page 28: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-28

Types of Radio Advertising

Network Spot Local

Page 29: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-29

Radio Dayparts

Morning drive: 6:00-10:00 a.m. Daytime: 10:00 a.m.-3:00 p.m. Afternoon/Evening drive: 3:00 p.m.-7:00

p.m. Nighttime: 7:00 p.m.-12:00 a.m. All night: 12:00-6:00 a.m.

Page 30: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-30

Radio Terminology

Run of station (ROS)

Total audience plan (TAP)

Average quarter-hour audience (AQH persons)

Average quarter-hour rating

Average quarter-hour share

Gross impressions Gross rating points Cume persons Cume rating

Page 31: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-31

Steps in Preparing a Radio Schedule

Identify stations with greatest cume of target audience

Identify station formats with best access to prospects

Determine best dayparts

Construct a schedule using rate cards to guide budget

Evaluate buy in terms of audience delivery

Determine CPM-TM

Negotiate and place buy

Page 32: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-32

Key Terms_1

Affidavit of performance

Audience composition

Audience share Avails Average quarter-

hour audience Average quarter-

hour rating

Average quarter-hour share

Barter syndication Broadcast TV Cable TV Cost per rating point Cost per thousand Cume persons Cume rating

Page 33: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-33

Key Terms_2

Daypart mix Designated market

area Digital video

recorder Drive time First-run syndication Gross impressions Gross rating points

Households using TV

Imagery transfer Infomercial Inventory Local time Makegoods Networks Off-network

syndication

Page 34: Chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies,

12-34

Key Terms_3

Participation Preemption rate Prime time Program-length

advertisement Program rating Programming format Rating service

Run-of-station Sponsorship Spot announcement Spot radio Sweeps Total audience Total audience plan TV households


McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill ...

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill ...

12-1 McGraw-Hill/Irwin © 2012 The McGraw-Hill Companies, All Rights Reserved McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All.

12-1 McGraw-Hill/Irwin © 2012 The McGraw-Hill Companies, All Rights Reserved McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All.

#14-1 McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights.

#14-1 McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights.

McGraw-Hill/Irwin Copyright © 2008 The McGraw-Hill Companies ...

McGraw-Hill/Irwin Copyright © 2008 The McGraw-Hill Companies ...

Chapter McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill ...

Chapter McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill ...

Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Chapter Ten LocalMarketing in Emerging Markets Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,,

Chapter Ten LocalMarketing in Emerging Markets Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,,

10-1 McGraw-Hill/Irwin

10-1 McGraw-Hill/Irwin

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, All Rights Reserved McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, All Rights Reserved.

McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, All Rights Reserved McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, All Rights Reserved.

McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill ...

McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill ...

Chapter 10 · Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2001 $ Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., ...

Chapter 10 · Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2001 $ Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., ...

11-1 McGraw-Hill/Irwin

11-1 McGraw-Hill/Irwin

McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, All Rights Reserved Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, All Rights Reserved Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

© The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin.

© The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin.

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004 ...

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004 ...

Local Marketing in Mature Markets Chapter Eight. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,,

Local Marketing in Mature Markets Chapter Eight. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,,

McGraw-Hill/Irwin McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill/Irwin McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

16-1 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

16-1 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.