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Broadcast advertising 1

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  • 1. Broadcast Advertising
  • 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. 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. Advertising Classified• By audience – Consumer – Business to Business • Industrial • Trade • Professional • Farm
  • 5. Advertising Classified• Geographically – National – Regional – Local – International
  • 6. Advertising Classified• By medium – Electronic • Radio • Television • Cable • Internet
  • 7. Advertising Classified• Print – Newspaper – Magazine• Outdoor – Billboard – Transit
  • 8. Advertising Classified• Specialty – Novelties – POP – Product placement – Etc. – Etc. – Etc.
  • 9. Advertising Classified• By function – Product -vs- non-product – Commercial -vs- non-commercial – Direct action -vs- non-direct action
  • 10. The advertising industry• Agencies• The media• The advertisers• The support services and suppliers• The regulators• The consumers
  • 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. Advertising History• Dates to 1600s – British newspapers paid notices
  • 13. Advertising History• Ben Franklin is credited with introducing white space and illustrations
  • 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. 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. Broadcast Advertising History• Post WWI – Radio grew – Lifestyles improved – Spending increased – Radio networks emerged – Advertising stressed the “Unique Selling Proposition”
  • 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. 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. 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. 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. Media strategy• Buying patterns – Weekly cycles – Monthly cycles – Annual cycles – Seasonal products• Products/service with fixed maximum capacities
  • 22. Media strategy
  • 23. Media strategy
  • 24. Media strategy
  • 25. Media strategy
  • 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. Media strategy• Best frequency – Outdoor, newspapers, magazines• Best Reach – Network advertising, magazines• Best combination – Radio
  • 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. CPM2 spots @ $8.00 each1 reaches 4500 QHP1 reaches 3500 QHP
  • 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. CPM Number of spots Cost per spot Total cost QHP Total QHP 1 80 3400 8 10 2913 4 10 5825Totals
  • 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. CPM Number of spots Cost per spot Total cost QHP Total QHP 4 11 26500 8 15 3000 10 19 4700Totals
  • 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. Waste circulation• Reaching people who are not the desired audience• Demographics = age, gender, income• Psychographics = “lifestyle”
  • 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. Audience research 100%All possible viewers or listeners
  • 38. Audience research 100% TVHH
  • 39. Audience research NotHUT 50% viewing HUT level = 50
  • 40. Audience research Not viewingTunedto our spot
  • 41. Audience research25% of TVHH – 50% of HUT
  • 42. Audience researchRating = 25 Share = 50
  • 43. Audience research terms• Gross ratings points• Average quarter hour people (QHP)
  • 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. Audimeter
  • 46. A.C. Nielsen• Now only television ratings• Use diaries, audimeters and “people meters”• Meters used for “overnights”
  • 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. Market areasTSA DMA TSA DMA TSA
  • 49. Arbitron• Radio research• Dairies• Developing the “personal people meter” (PPM)
  • 50. Arbitron terminology• Total survey area (TSA)• Area of Dominant Influence (ADI) – Every county assigned to an ADI• Metro survey area (MSA)
  • 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?