Broadcast advertising 1

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Broadcast advertising 1

  1. 1. Broadcast Advertising
  2. 2. Advertising Defined• Non-personal Communication• Usually paid for• By an identified sponsor• Persuasive in nature• About products, ideas or services• Through various media
  3. 3. Advertising in the Marketing Mix• Product – Quality, package, appearance, etc.• Price – Deep discount to premium• Place – Distribution channels• Promotion – POP, personal selling, PR, Advertising
  4. 4. Advertising Classified• By audience – Consumer – Business to Business • Industrial • Trade • Professional • Farm
  5. 5. Advertising Classified• Geographically – National – Regional – Local – International
  6. 6. Advertising Classified• By medium – Electronic • Radio • Television • Cable • Internet
  7. 7. Advertising Classified• Print – Newspaper – Magazine• Outdoor – Billboard – Transit
  8. 8. Advertising Classified• Specialty – Novelties – POP – Product placement – Etc. – Etc. – Etc.
  9. 9. Advertising Classified• By function – Product -vs- non-product – Commercial -vs- non-commercial – Direct action -vs- non-direct action
  10. 10. The advertising industry• Agencies• The media• The advertisers• The support services and suppliers• The regulators• The consumers
  11. 11. Advertising History• Functions of advertising: – Identify products and differentiate them – Communicate information about product – Induce consumers to try the product – Increase product usage – Build brand preference and loyalty
  12. 12. Advertising History• Dates to 1600s – British newspapers paid notices
  13. 13. Advertising History• Ben Franklin is credited with introducing white space and illustrations
  14. 14. Advertising History• Magazines became first national medium• Volney Palmer – first ad agency – 1841 – Bought newspaper and magazine space in large volumes at discount. – Marked up 15%• N. W. Ayer – first full service agency
  15. 15. Broadcast Advertising History• Out of the debate on how to pay for broadcasting came…• “Toll” broadcasting – WEAF – AT&T station • “telephone philosophy of paying toll for long distance calls.• First commercial broadcast• http://www.old-time.com/commercials/1stcommercia http://www.old-time.com/commercials/1stcommerci
  16. 16. Broadcast Advertising History• Post WWI – Radio grew – Lifestyles improved – Spending increased – Radio networks emerged – Advertising stressed the “Unique Selling Proposition”
  17. 17. Broadcast Advertising History• Television explodes post WWII – Radio programs shift to television – Radio adopts musical formats• Advertising costs increase• Sponsorships give way to participations or “spots”• By the 1960s – advertising entered the “image era”
  18. 18. Broadcast Advertising History• Depicting a lifestyle – not product information• Emotional appeals – not logical appeals• Remember the package – not the name• Focus on benefits to consumer
  19. 19. The contemporary advertising industry• Complicated by the proliferation of media• Audiences are splintered – Narrowcasting• Clutter and competition• High costs of media drive demand for research
  20. 20. Effects of advertising• On prices• On competition• On product image• On demand – “Creating” demands? – Bran, fiber, carbs, cosmetics, vitamins, etc. – Slow a declining market – “repositioning”
  21. 21. Media strategy• Buying patterns – Weekly cycles – Monthly cycles – Annual cycles – Seasonal products• Products/service with fixed maximum capacities
  22. 22. Media strategy
  23. 23. Media strategy
  24. 24. Media strategy
  25. 25. Media strategy
  26. 26. Media strategy• Reach – Unduplicated exposures – gross impressions – Number of different people exposed to the message• Frequency – Average number of exposures – How many times audience is exposed to message
  27. 27. Media strategy• Best frequency – Outdoor, newspapers, magazines• Best Reach – Network advertising, magazines• Best combination – Radio
  28. 28. Media strategy• Calculating cost efficiency• Cost per thousand (CPM) – How much it costs to deliver 1000 gross impressions – How much to reach 1000 listeners, viewers, readers, households, etc.
  29. 29. CPM2 spots @ $8.00 each1 reaches 4500 QHP1 reaches 3500 QHP
  30. 30. CPM• 4500 + 3500 = 8000 gross impressions• 2 spots @ $8 = $16 – cost of the schedule• $16 ÷ 8000 =• .002• .002¢ per person• X 1000 = 2.00• $2 per 1000 QHP
  31. 31. CPM Number of spots Cost per spot Total cost QHP Total QHP 1 80 3400 8 10 2913 4 10 5825Totals
  32. 32. CPM Number of spots Cost per spot Total cost QHP Total QHP 1 80 80 3400 3400 8 10 80 2913 23300 4 10 40 5825 23300Totals $200 50000 200 ÷ 50000 = .004
  33. 33. CPM Number of spots Cost per spot Total cost QHP Total QHP 4 11 26500 8 15 3000 10 19 4700Totals
  34. 34. CPM Number of spots Cost per spot Total cost QHP Total QHP 4 11 44 26500 106000 8 15 120 3000 24000 10 19 190 4700 47000Totals $354 177000 354 ÷ 177000 = .002
  35. 35. Waste circulation• Reaching people who are not the desired audience• Demographics = age, gender, income• Psychographics = “lifestyle”
  36. 36. Audience research• How we know the size of the audience reached• Rating = percentage of all possible viewers or listeners• Share = percentage of people using media• Share is always a larger number
  37. 37. Audience research 100%All possible viewers or listeners
  38. 38. Audience research 100% TVHH
  39. 39. Audience research NotHUT 50% viewing HUT level = 50
  40. 40. Audience research Not viewingTunedto our spot
  41. 41. Audience research25% of TVHH – 50% of HUT
  42. 42. Audience researchRating = 25 Share = 50
  43. 43. Audience research terms• Gross ratings points• Average quarter hour people (QHP)
  44. 44. Audience research• Began in the 1920s with radio listenership• Archibald Crossley personal interviews• C. E. Hooper – Hooperatings – personal• A. C. Nielsen – Diaries – Audimeter
  45. 45. Audimeter
  46. 46. A.C. Nielsen• Now only television ratings• Use diaries, audimeters and “people meters”• Meters used for “overnights”
  47. 47. A.C. Nielsen terminology• Total survey area (TSA)• Designated market area (DMA) – Every county in the U.S. assigned to a DMA• Metro survey area (MSA)
  48. 48. Market areasTSA DMA TSA DMA TSA
  49. 49. Arbitron• Radio research• Dairies• Developing the “personal people meter” (PPM)
  50. 50. Arbitron terminology• Total survey area (TSA)• Area of Dominant Influence (ADI) – Every county assigned to an ADI• Metro survey area (MSA)
  51. 51. Problems in audience research• Poor return rates of diaries• Absenteeism – controlled by PMs• Hyping• What does “listening” or “viewing” really mean as it relates to advertising?

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