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                    Evaluation of Broadcast Media




McGraw-Hill/Irwin              © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
Television Advantages

   Creativity and Impact
     High Impact
     Sight-Sound-Motion
   Coverage and Cost Effectiveness
     Mass Coverage
     High Reach
   Captivity and Attention
     Attention Getting
     Favorable Image
   Selectivity and Flexibility
     High Prestige
     Low Exposure Cost
This TV commercial gives viewers the
sensation of driving a sports car
Television Disadvantages


     Cost
     Lack of Selectivity
     Fleeting Message
     Clutter
     Limited Viewer Attention
     Distrust and Negative Evaluation
Top 10 Network Advertisers - 2001


1.    General Motors
2.    Procter & Gamble
3.    Johnson & Johnson
4.    Philip Morris Cos.
5.    AOL Time Warner
6.    Pfizer
7.    GlaxoSmithKline
8.    PepsiCo.
9.    Walt Disney Co.
10.   Ford Motor Co.
Use Television Advertising When...


  The budget is large enough to produce high
  quality commercials.
  The media budget is sufficient to generate
  and sustain the number of exposures needed.
  The market is large enough and reachable
  efficiently through a specific network, station,
  or program.
  There’s a genuine need for a medium with
  high creative potential to exert a strong
  impact.
Buying TV Time

 Network Versus Spot

     Networks
        Affiliated stations are linked
        Purchase transactions are simplified
     Spot and local
        Commercials shown on local stations
        May be local or “national spot” commercials

 Syndicated Programs

     Sold and distributed station by station
        Off-network syndication are “reruns”
        First-run syndications are also featured
     Advertiser-supported or bartered
        Programs sold to stations in return for air time
Methods of Buying Time


 Sponsorship
   Advertiser assumes responsibility for the production
   and perhaps the content of the program
   Sponsor has control and can capitalize on the
   prestige associated with a show
 Participations
   Multiple advertisers buy spots on a program
   May participate regularly or sporadically
   Advertiser isn’t responsible for production
   Participants lack control over content
 Spot Announcements
   May be purchased by daypart or adjacency
Three TV Buying Decisions


   Network Versus Spot
     Reach is the primary consideration but
     ease of purchase is important.
   National Versus Local Spot
     Spots purchased by national advertisers
     are known as national spot.
   Sponsor, Participate, or Spot
     Method of buying affects cost,
     commitment, and identification.
   Specific Daypart and Weeks
     Scheduling depends on reach and
     frequency requirements.
TV Dayparts



Morning             7:00 AM - 9:00 AM Mon. - Fri.
Daytime             9:00 AM - 4:30 PM Mon. - Fri.
Early fringe        4:30 PM - 7:30 PM Mon. - Fri.
Prime-time access   7:30 PM - 8:00 PM Sun. - Sat.
Prime time          8:00 PM - 11:00 PM Mon. - Sat.
Prime time Sun.     7:00 PM - 11:00 PM Sun.
Late news           11:00 PM - 11:30 PM Mon. - Fri.
Late fringe         11:30 PM - 1:00 AM Mon. - Fri.
Other TV Vehicles

  Cable / CATV
    Offers opportunity for narrowcasting,
    economy, and flexibility.

  Superstations
    They send their signals directly to CATV
    operators for rebroadcast.

  Video Cassette Recorders
    They permit delayed viewing but also
    allow ZIPPING of commercials.

  Personal Video Recorders (PVRs)
Personal Video Recorders such as TIVO may
change the way people watch television
Cable Television (CATV)


 Characteristics of Cable
     National, regional, and local available.
     Targets specific geographic areas.


 Advantages of Cable
     Highly selective “narrowcasting.”
     Reaches specialized markets.
     Low cost and flexibility.


 Limitations of Cable
     Overshadowed by major networks.
     Audience is fragmented.
     Lacks penetration in some markets.
Measuring TV Audiences

    Audience Measures
      Measured by rating services
      Size and composition indicated
    Television Households
      Number of HH that own a TV
      Usually total HH in a market
    Program Rating
      Percentage of TV HH tuned to a show
      “Rating point” = 1 percent of TV HH
    Households Using TV (HUT)
      Percentage of homes in an area watching
      TV at a given time
    Share of Audience
      Percentage of HUT tuned to a show
TV Audience Measures


                         Program Rating

                       HH tuned to show
          Rating =
                       Total U.S. HH



            Share of Audience

           HH tuned to show
Share =    U.S. HH using TV
Radio Formats by Age Group

Adult contemporary
        News/talk
          Top 40
          Country
           Urban
       Album rock
          Spanish
           Oldies
      Classic rock
      Modern rock
       Urban AC
  NAC/smooth jazz
         Religious
         Classical                 18-24   25-34    35-44        45-54
Remaining formats
   MOR/big band
                     0   10   20      30   40      50       60           70
Advantages of Radio


       Cost and Efficiency

       Selectivity

       Flexibility

       Mental Imagery

       Integrated Marketing
       Opportunities
Radio can enhance a TV campaign through
imagery transfer
Limitations of Radio


     Creative Limitations
     Audience Fragmentation
     Chaotic Buying
     Limited Research Data
     Limited Listener Attention
     Clutter
Dayparts for Radio




Morning Drive Time     6:00 AM — 10:00 AM
Daytime                10:00 AM — 3:00 PM
Aft./Eve. Drive Time
                       3:00 PM — 7:00 PM
Nighttime
                       7:00 PM — 12:00 AM
All Night
                       12:00 AM — 6:00 AM
Buying Radio Time


    Network Radio
      Three national networks
      Over 100 regional/area networks
      A multitude of syndicated programs
    (National) Spot Radio
      About 20% of all spot announcements
      Allows great flexibility and targeting
      Purchase transaction can be difficult
    Local Radio
      Nearly 80% of advertisers are local
      Local CATV is becoming competitive
Radio Differs from TV



    Radio Broadcasting . . .
      Offers only an audio message.
      Is more limited communication.
      Costs much less to produce.
      Costs much less to purchase.
      Has less status and prestige.
Radio and TV Similarities

   Both Media . . .
    Are time oriented media
    Are sold in time segments
    Have some network affiliates
    Have some independents
    Use the public airway
    Are regulated by the F.C.C.
    Are externally paced media
    Are passive, low-involvement
Satellite Radio may change the way people
listen to the medium

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Chap11 Evaluation Of Broadcast Media

  • 1. 11 Evaluation of Broadcast Media McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 2. Television Advantages Creativity and Impact High Impact Sight-Sound-Motion Coverage and Cost Effectiveness Mass Coverage High Reach Captivity and Attention Attention Getting Favorable Image Selectivity and Flexibility High Prestige Low Exposure Cost
  • 3. This TV commercial gives viewers the sensation of driving a sports car
  • 4. Television Disadvantages Cost Lack of Selectivity Fleeting Message Clutter Limited Viewer Attention Distrust and Negative Evaluation
  • 5. Top 10 Network Advertisers - 2001 1. General Motors 2. Procter & Gamble 3. Johnson & Johnson 4. Philip Morris Cos. 5. AOL Time Warner 6. Pfizer 7. GlaxoSmithKline 8. PepsiCo. 9. Walt Disney Co. 10. Ford Motor Co.
  • 6. Use Television Advertising When... The budget is large enough to produce high quality commercials. The media budget is sufficient to generate and sustain the number of exposures needed. The market is large enough and reachable efficiently through a specific network, station, or program. There’s a genuine need for a medium with high creative potential to exert a strong impact.
  • 7. Buying TV Time Network Versus Spot Networks Affiliated stations are linked Purchase transactions are simplified Spot and local Commercials shown on local stations May be local or “national spot” commercials Syndicated Programs Sold and distributed station by station Off-network syndication are “reruns” First-run syndications are also featured Advertiser-supported or bartered Programs sold to stations in return for air time
  • 8. Methods of Buying Time Sponsorship Advertiser assumes responsibility for the production and perhaps the content of the program Sponsor has control and can capitalize on the prestige associated with a show Participations Multiple advertisers buy spots on a program May participate regularly or sporadically Advertiser isn’t responsible for production Participants lack control over content Spot Announcements May be purchased by daypart or adjacency
  • 9. Three TV Buying Decisions Network Versus Spot Reach is the primary consideration but ease of purchase is important. National Versus Local Spot Spots purchased by national advertisers are known as national spot. Sponsor, Participate, or Spot Method of buying affects cost, commitment, and identification. Specific Daypart and Weeks Scheduling depends on reach and frequency requirements.
  • 10. TV Dayparts Morning 7:00 AM - 9:00 AM Mon. - Fri. Daytime 9:00 AM - 4:30 PM Mon. - Fri. Early fringe 4:30 PM - 7:30 PM Mon. - Fri. Prime-time access 7:30 PM - 8:00 PM Sun. - Sat. Prime time 8:00 PM - 11:00 PM Mon. - Sat. Prime time Sun. 7:00 PM - 11:00 PM Sun. Late news 11:00 PM - 11:30 PM Mon. - Fri. Late fringe 11:30 PM - 1:00 AM Mon. - Fri.
  • 11. Other TV Vehicles Cable / CATV Offers opportunity for narrowcasting, economy, and flexibility. Superstations They send their signals directly to CATV operators for rebroadcast. Video Cassette Recorders They permit delayed viewing but also allow ZIPPING of commercials. Personal Video Recorders (PVRs)
  • 12. Personal Video Recorders such as TIVO may change the way people watch television
  • 13. Cable Television (CATV) Characteristics of Cable National, regional, and local available. Targets specific geographic areas. Advantages of Cable Highly selective “narrowcasting.” Reaches specialized markets. Low cost and flexibility. Limitations of Cable Overshadowed by major networks. Audience is fragmented. Lacks penetration in some markets.
  • 14. Measuring TV Audiences Audience Measures Measured by rating services Size and composition indicated Television Households Number of HH that own a TV Usually total HH in a market Program Rating Percentage of TV HH tuned to a show “Rating point” = 1 percent of TV HH Households Using TV (HUT) Percentage of homes in an area watching TV at a given time Share of Audience Percentage of HUT tuned to a show
  • 15. TV Audience Measures Program Rating HH tuned to show Rating = Total U.S. HH Share of Audience HH tuned to show Share = U.S. HH using TV
  • 16. Radio Formats by Age Group Adult contemporary News/talk Top 40 Country Urban Album rock Spanish Oldies Classic rock Modern rock Urban AC NAC/smooth jazz Religious Classical 18-24 25-34 35-44 45-54 Remaining formats MOR/big band 0 10 20 30 40 50 60 70
  • 17. Advantages of Radio Cost and Efficiency Selectivity Flexibility Mental Imagery Integrated Marketing Opportunities
  • 18. Radio can enhance a TV campaign through imagery transfer
  • 19. Limitations of Radio Creative Limitations Audience Fragmentation Chaotic Buying Limited Research Data Limited Listener Attention Clutter
  • 20. Dayparts for Radio Morning Drive Time 6:00 AM — 10:00 AM Daytime 10:00 AM — 3:00 PM Aft./Eve. Drive Time 3:00 PM — 7:00 PM Nighttime 7:00 PM — 12:00 AM All Night 12:00 AM — 6:00 AM
  • 21. Buying Radio Time Network Radio Three national networks Over 100 regional/area networks A multitude of syndicated programs (National) Spot Radio About 20% of all spot announcements Allows great flexibility and targeting Purchase transaction can be difficult Local Radio Nearly 80% of advertisers are local Local CATV is becoming competitive
  • 22. Radio Differs from TV Radio Broadcasting . . . Offers only an audio message. Is more limited communication. Costs much less to produce. Costs much less to purchase. Has less status and prestige.
  • 23. Radio and TV Similarities Both Media . . . Are time oriented media Are sold in time segments Have some network affiliates Have some independents Use the public airway Are regulated by the F.C.C. Are externally paced media Are passive, low-involvement
  • 24. Satellite Radio may change the way people listen to the medium