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Broadcast Media. Television Facts. Main Advantage : Delivers the best visual and emotional impact of any medium. Uses sight, sound, color and motion (= most senses engaged of any medium). Facts : - 110.2 million U.S. television households among a population of 300 million people.
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Television Facts • Main Advantage: Delivers the best visual and emotional impact of any medium. Uses sight, sound, color and motion (= most senses engaged of any medium). • Facts: • - 110.2 million U.S. television households among a population of 300 million people. • - The average prime-time show reaches 7 million homes. • - CPM = $20 for network prime time advertising and $4.60 for daytime advertising. • - Typical production cost for a national brand 30 second spot: $400,000. • Typically one-third of tv audience is lost during commercial breaks. • The 30 second spot is still the dominant tv commercial. • - TV demographic (“heavy watchers”) skews towards lower income and education • Trends: • - Smaller national audiences, but higher ad rates (inflation adjusted). • - Network TV (ABC, NBC, CBS, Fox) has been losing viewers to: Cable, Satellite TV & other forms of entertainment (internet, video games, etc.)
Coverage (Reach) and Cost Effectiveness Coverage and Cost Effectiveness Captivity and Attention (?) Captivity and Attention Selectivity and Flexibility Television Advantages Creativity and Impact Creativity and Impact
Fleeting Message Cost Limited Attention Low Selectivity Zipping Clutter Zapping Negative Evaluation Distrust Television Disadvantages Fleeting Message Cost Limited Attention Low Selectivity Negative Factors Zipping Clutter Negative Evaluation Distrust
The media budget is sufficient to generate and sustain the number of impressions needed. The media budget is sufficient to generate and sustain the number of exposures needed. The market is large enough and easily reachable through a specific network, station, or program. The market is large enough and easily reachable through a specific network, station, or program. TV Advertising Works Best When… The budget is large enough to produce high quality commercials. The budget is large enough to produce high quality commercials.
Affiliated stations are linked Purchase transactions are simplified Commercials shown on local stations May be local or “national spot” commercials Network Versus Spot TV Affiliated stations are linked Network Purchase transactions are simplified Commercials shown on local stations (KQED) Spot & Local
Off-network syndication are “reruns” Programs sold to stations in return for commercial air time First-run syndications are also featured Syndicated Programs vs. Network TV Off-network syndication “reruns” – (i.e. Seinfeld) Sold and distributed station by station First-run syndications – (i.e. Jerry Springer) Advertiser-supported or bartered
Sponsorship Participations Spot Announcements 1. Advertiser assumes responsibility for show production and perhaps content 2. Sponsor controls the advertising “stacks” – who advertises, how long, what order, etc. 1. Participating sponsors share the cost 2. May participate regularly or sporadically 3. Advertiser is NOT responsible for production 4. Participants lack control over show content • Are typically “adjacency” slots that function like “Participations” • Lowest audience attention % • Usually the cheapest in absolute cost, but CPMs may be higher Methods of Buying Air Time Sponsorship Participations
Prime Time Morning Late News Daytime Early Fringe Late Fringe Prime-Time Access Late Night Common Television Dayparts 12 12 1 1 11 11 2 2 10 10 PM AM 9 3 9 3 8 4 8 4 7 5 7 5 6 6
Cable Cable (CATV) Delivers signals through fiber or coaxial wire rather than the airways Delivers signals through fiber or coaxial wire or satellite. 150+ “hyper-targeted” audiences. Superstations Superstations Independent local stations that broadcast nationally via satellite through CATV Independent local stations that broadcast nationally via CATV satellite (e.g. TBS Superstation) – mimics CATV. DVRs/VOD Digitally record TV shows and store them on hard drives, giving viewer control over content and advertising. Other TV Vehicles
Are DVRs like TiVo impacting television and the traditional advertising model?
Characteristics Advantages Limitations • National, regional, and local advertising available. • Precise geographic, demographic & psychographic targeting. • Highly selective “narrowcasting.” • Reaches specialized markets networks can’t get to. • Lower cost (production & airtime) and more flexibility. • Strong summer season. • Competition from major networks. • Fragmented audiences. Limited reach (for tv). • Disloyal audiences. Cable Television (CATV) Characteristics Advantages
Television Households Audience Measures Program Rating Share of Audience Households Using TV Measuring TV Audiences Television Households Other Audience Measures Program Rating Households Using TV
Program Rating Program Rating HH tuned to show HH tuned to show Rating = Rating = Total U.S. HH Total U.S. HH Share of Audience HH tuned to show Share = U.S. HH using TV TV Audience Measures
Motel 6’s First TV Ad Was Similar to a Radio Spot *Click outside of the video screen to advance to the next slide
Radio Facts Main Advantage: Radio engages the imagination and communicates on a personal level like no other medium can. “Theater of the mind”. Facts: - 99% of all American households have at least one radio in the house. - Radio reaches over three-quarters of Americans daily. - Americans listen to radio an average of 3 hours per day. - 13,000+ radio stations (AM – 4,800 and FM – 6,200). - Public radio (NPR and affiliates) is (slowly) gaining listeners as public tv declines. - Satellite Radio (XM, Sirius - any station, location independent) has 5 million+ subscribers. - Network and Local Radio: Most radio advertising is local. - Radio is naturally a highly targeted advertising medium: segmented by special interests (music, religion, financial, political, etc.) and age.
Is more limited communication Offers only an audio message Costs much less to produce Has less status and prestige Costs much less to purchase Radio Differs from TV Offers more limited communication potential Offers only an audio message Costs much less to produce Airtime much less costly than TV
Radio Audiences • Radio Listener Segmentation • “Station” Fans • Largest segment • Clear preference for one or two stations • Listen an average of eight hours a day • Predominantly women between the ages of 25 and 44 • “Radio” Fans • Listen to four or five different stations – no clear preference for any one • Mostly under 35 years of age – male or female • Women over 55 • “Music” Fans • 11% of radio listeners • Listen exclusively for music • Predominantly men between ages of 25 and 45 • Some elderly • “News” Fans • News or information driven • One or two favorite stations • Listen in short segments • Age 35 or older – predominantly baby boomers and elderly
Advantages and Limitations of Radio Advantages Disadvantages Cost and Efficiency Cost and Efficiency Creative Limitations Creative Limitations Audience Fragmentation Audience Fragmentation Selectivity Selectivity Chaotic Buying Flexibility Ubiquity Chaotic Buying Limited Research Data Limited Research Data Mental Imagery Mental Imagery Limited Listener Attention Limited Listener Attention Integrated Marketing Integrated Marketing/Synergy Clutter
Nighttime Morning Drive Time Daytime All Night Afternoon/Evening Drive Time Dayparts for Radio 12 12 1 1 11 11 2 2 10 10 PM AM 9 3 9 3 8 4 8 4 7 5 7 5 6 6
Measuring Radio Audiences - Metrics Coverage: The equivalent of “circulation” for print media. Number of homes that can pick up a station’s signal. Average Quarter Hour Figure (AQH): Average number of people listening to a station for at least five minutes during a quarter-hour segment during a specific daypart. Average Quarter Hour Rating (AQH-R): AQH expressed as a % of survey area population. Average Quarter Hour Share (AQH-S): AQH expressed as a % of survey area population listening to the radio. Cume: Total number of people listening to a station for at least five minutes during a quarter-hour segment during a specific daypart. Radio’s measurement of reach.
