Chapter 14

Chapter 14

Using Electronic Media: Television and Radio McGraw-Hill/Irwin

Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter Overview

Factors to evaluate when considering radio & television in the creative mix 14-2

Chapter Objectives Describe pros & cons of broadcast TV as an ad medium

Describe TV audience measurement

Discuss the pros and cons of cable TV ads

Discuss factors to consider when buying TV time

Explain the process of buying cable and broadcast TV time

Analyze pros & cons of radio in the creative mix

Evaluate different types of TV advertising

Discuss factors to consider when buying radio time 14-3

The Medium of Television

Broadcast TV

Cable TV

VHF and UHF

Premium Services

Independent Stations

Ad-Supported Networks

Network Affiliates

Superstations 14-4

TV Audience Trends

Demographics

Cable households

DVD Rental

Viewing patterns

TV viewing hours

Audience fragmentation 14-5

The Medium of Television Pros

Cons

Mass coverage

High production cost

Relatively low cost

High airtime cost

Some selectivity

Limited selectivity

Impact

Brevity

Creativity

Clutter

Prestige

Zipping and zapping

Social dominance 14-6

Cable TV Pros and Cons Pros

Cons

Selectivity

Limited reach

Audience demographics

Fragmentation

Low cost

Quality

Flexibility

Zipping and zapping

Testability

14-7

The Medium of Television

How adult viewers rate various media

14-8

Types of TV Advertising Sponsorship Participation basis Syndication Spot ads Infomercials 14-9

Network & Syndication Distribution

14-10

TV Ad Spending (Billions)

Network TV dominates, but is losing ground

14-11

Types of TV Advertising Prime time’s most expensive 30-second spots

http://www.fr ankwbaker.c om/2006_20 07_ad_rates. htm

1612

Insert ex. 16-7, p. 517

Ad cost per 30-sec spot Position = 2.9”horiz., 1.5” vertical

Size = 4.6” TALL Resolution: 300 dpi

14-12

Most Expensive 30-Second Spots

14-13

TV Audience Measurement Rating Services

Defining TV Markets

Dayparts

Audience Measures

Nielsen & Others Cable Ratings

14-14

TV Audience Measurement Rating Services

Defining TV Markets

Nielsen & Others

Designated Market Areas

Dayparts

Audience Measures

Cable Ratings

14-15

Designated Market Area

Columbus, Georgia designated market area 14-16

TV Audience Measurement Rating Services

Defining TV Markets

Nielsen & Others

Designated Market Areas

Cable Ratings

Dayparts

Audience Measures

Daytime 9 a.m. – 4 p.m. Early Fringe 4 – 5:30 p.m.. Early News 5 or 5:30 – 7:30 p.m. Access 7:30 – 8 p.m.

Prime Time 8 – 11 p.m. Late News 11 – 11:30 p.m. Late Fringe 11:30 – 1 a.m.

14-17

TV Audience Measurement Rating Services

Defining TV Markets

Nielsen & Others

Designated Market Areas

Dayparts

Audience Measures TV Households Households Using TV

Cable Ratings

Rating =

TVHH tuned to program Total TVHH in area

Program Rating Audience Share

14-18

Buying TV Time Gross Rating Points

Cost per Point

Cost per Thousand

GRP =

CPP

=

CPM =

Reach (avg rating) × Frequency

Cost Rating

Cost Thousands of People

14-19

Buying TV Time

1. Request avails from media rep

2. Select most efficient programs

3. Negotiate prices and contracts

14-20

Other Forms of Television

DBS

MDS

STV

SMATV

14-21

The Medium of Radio Who uses radio? 93% of U.S adults listen each week

72% of U.S. adults listen every day Average time is 2.5 hours per day Radio’s reach exceeds other media

14-22

Most Popular Program Formats

14-23

Pros and Cons of Radio Ads Pros

Cons

Reach & frequency

Limitations of sound

Selectivity

Segmented audiences

Cost efficiency

Short-lived, half heard

Testability

Clutter

Timeliness & immediacy Local relevance Creative flexibility 14-24

Mini-network Programming Each network targets a specific demographic group

14-25

Special Programming Radio stations can increase market share with special programming

14-26

Buying Radio Time

Network

Spot

Local

14-27

Key Radio Terms

Cumes

Average quarterhour audiences

Dayparts

Morning drive 6 a.m. – 10 a.m. Daytime 10 p.m. – 3 p.m. Afternoon drive 3 p.m. – 7 p.m. Nighttime 7 p.m. – midnight All night Midnight – 6 a.m.

14-28

Ratings Based on Dayparts Run-of-Station (ROS) Total Audience Plan (TAP) Average QuarterHour (AQH)

Gross Rating Points (GRP) Cume Estimates

AQH Rating =

AQH Persons × 100 Population

GRP = AQH Rating × No. of Spots

Cume Rating =

Reach Potential × 100 Population

14-29

Satellite Radio

Sirius & XM are major players Over 16 million listeners Many program choices Exclusive programming

14-30