Status of Satellite Television Broadcast Programs Implementation
Copyright © 2012 Pearson Canada Inc. Chapter 9 Broadcast Media: Television and Radio 9-1.
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Transcript of Copyright © 2012 Pearson Canada Inc. Chapter 9 Broadcast Media: Television and Radio 9-1.
Copyright © 2012 Pearson Canada Inc.
Learning Objectives
Identify the organizations involved in the Canadian broadcasting industry
Assess the advantages and disadvantages of television and radio as advertising media
Explain the factors considered in, and procedures used, for buying television and radio time
Identify recent technologies affecting commercial television and radio in Canada
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The CanadianTelevision Market
Television and radio reaches 99% of Canadian households.
90% of households have satellite or cable TV. On an average day, 82% of Canadians view
television at least once.
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Television MarketThe television market is divided between: National Networks
e.g. , CTV – 18 stations
Regional Networks CTV operates regional networks in Ontario,
Atlantic Canada, and Saskatchewan
Specialty cable channels TSN, MuchMusic, History Channel
Pay TV Digital Networks
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Trends Affecting Television and Television AdvertisingThe landscape of the Canadian Television industry is changing. Commercial Avoidance and Personal Video
Recorders Audience Fragmentation Alternative Viewing: Video-on-Demand Mobile Media Convergence of media ownership
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Television Viewing Highlights
Media-viewing data is collected by two organizations in Canada: BBM Bureau of Measurement and Nielsen Media Research
A valuable resource for advertisers to assess advertising costs and for identifying what programs are popular.
Ratings are audience estimates expressed as a percent of the population in a defined geographic area.
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Advantages ofTelevision Advertising
Impact & Effectiveness of Messages
Demonstration Capability
High Reach
Frequency Potential
Some Demographic Selectivity
Some selectivity for geographic coverage
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Disadvantagesof Television Advertising
High Cost
Limitations on target-market selectivity
Audience Fragmentation
Commercial Avoidance
Lack of Planning Flexibility
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Television Advertising Alternatives
Network Advertising
National Spot (Selective spot) Advertising
Sponsorships Opportunities
Product Placement and Branded Content
Station specific Advertising for local businesses
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Television Ad Rates and Buying Procedures
Supply and Demand
Nature of Advertising Purchase
Type of Programs
Dayparts (Time of Day)
Length of Commercial
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Buying Television Time
Media buying in television is a complex process.
National and Regional Networks Supply and demand system = grid card with varying price levels Spot rates depend upon daypart, audience size, and time of
year.
Local-Market Television Rates Offer continuity discount for 52-week contracts. Commercials are rotated vertically through the day, and
horizontally during the week
Gross Ratings Points are a key metric
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Discounts Offered by Television
Frequency
Volume
Continuity
Seasonal
Package Plans
ROS (Run Of Schedule)
Pre-emption Rates
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Media Optimizers
New optimizing software technology is playing a much bigger role in buying more efficient advertising time on TV.
An optimizer searches the TV-ratings database for daypart or program combinations that increase target reach (or reduce the cost of buying it)
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The Canadian Radio Market 649 commercial radio stations in Canada 184 are AM (amplitude modulation) 465 are FM (frequency modulation) Average adult spends about 19 hours/week listening to
radio Radio broadcasting is divided between
Canadian Broadcasting Corporation (government funded) Independently owned and operated stations dependent
on advertising revenues
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Trends Influencing the Radio Industry
Trends Influencing the Radio Industry: Digital Radio (e.g. CBC) Internet Radio (e.g. 3wk.com) Satellite Radio (e.g. Sirius Canada) Ipods and other Portable devices (e.g. iTunes)
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Radio Listening HighlightsConventional Radio are transmitted two ways: AM – varying the height of radio waves FM – varying frequency of radio waves
Tuning Hours: Average listener tunes in 16-21 hours a week
Teens spend 8 hours on iPods, cell phones, and Internet, which are more attractive to them
Radio is more popular in the morning, when people wake up or travel to work
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Radio Station FormatsRadio audiences are largely determined by a station’s format (type and nature of the programming)
Adult Contemporary Golden oldies Country News/Talk Contemporary Hit Radio (CHR)
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Pros and Cons of Radio Advertising
Advantages Disadvantages Target-Market Selectivity
Reach Potential
Frequency
Modest Cost for placement and production
Flexibility
Audience Fragmentation
Low engagement
Limited Message Retention
Media-Planning Consideration
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Radio Advertising Rates and Buying Procedures
Seasonal Rate Structures
Dayparts Reach Plans Type of Advertiser
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Radio Discounts
Number of spots over a specified period of time
FrequencyFrequency
VolumeVolume
ContinuityContinuity
Large number of spots
For a contract that covers a specified period of time
Continued…
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Radio Discounts (cont.)Purchase a minimum weekly number of spots in return for a packaged discount rate
Package PlansPackage Plans
CombinationCombination
Run-of-ScheduleRun-of-Schedule
If they air commercials on more than one station
If allowed relocate commercials through schedule at its own discretion
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Buying Radio Time
Factors that have an impact on the spot rate: Volume Frequency (the total number of spots in a
buy) Timing (in terms of day or season) Continuity (length of the plan)
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Buying Radio Time
Rotation Plans
Vertical Rotation
Horizontal Rotation
Reach Plan (Total Audience Plan)
The rotation of commercials through dayparts based on predetermined frequency at the discretion of the station.
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