Learning Objectives. Learning Objectives 17/03/2016. Chapter 11 Evaluation of Media: Television and Radio

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1 Chapter 11 Evaluation of Media: Television and Radio Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives To examine the structure of the television and radio industries and the role of each medium in the advertising program To consider the advantages and limitations of TV and radio as advertising media 11-2 Learning Objectives To explain how advertising time is purchased for the broadcast media, how audiences are measured, and how rates are determined To consider future trends in TV and radio and how they will influence the use of these media in advertising

2 Advantages of Television Excellent creativity and impact High coverage and more cost-effectiveness High captivity and attention Selectivity and flexibility 11-4 Limitations of Television Costs Lack of selectivity Fleeting message Clutter Limited viewer attention Zipping: Occurs when viewers fast-forward through commercials as they play back a previously recorded program Zapping: Changing channels to avoid commercials Distrust and negative evaluation 11-5 Network Advertising Spreading messages by purchasing airtime from a television network Television network: Assembles a series of affiliates to which it supplies programming and services Affiliates: Allied local TV stations Networks have affiliates throughout the nation for complete national coverage

3 Network Advertising Advantage Simplifies the purchase process Disadvantages Cost of advertising on prime time is very high Availability of time slots Up-front market: Buying period that occurs before the TV season begins Scatter market: Buying period that occurs throughout the season 11-7 Spot and Local Advertising Spot advertising: Commercials shown on local TV stations Time is negotiated and purchased directly from the individual stations National spot advertising: Nonnetwork advertising done by a national advertiser Local advertising: Airtime sold to local firms 11-8 Advantages Spot and Local Advertising Offers flexibility to national advertisers Growth in syndication Disadvantages Difficult to acquire Greater variations in the pricing policies and discount structure of individual stations Station reps: Individuals who act as sales representatives for a number of local stations in dealings with national advertisers Subject to more commercial clutter

4 Network versus Spot Network Affiliated stations that are linked Purchase transactions are simplified Spot & 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 Advertisersupported or bartered Programs sold to stations in return for air time Syndication Syndicated programs Shows that are sold or distributed on a station-by-station or marketby-market basis Types Off-network syndication - Reruns of network shows that are bought by individual stations First-run syndication - Shows produced specifically for the syndication market Advertiser-supported or barter syndication Shows are sold to stations in return for a portion of the commercial time in the show Offers both off-network and first-run syndicated programs

5 Advantages and Disadvantages of Syndication Advantages Saves money Broadens reach for national advertisers Targets specific audiences Disadvantages Audiences are often rural and older Syndicators do not supply much research information Requires media buyers to come up with a syndication schedule to ensure maximum reach Methods of Buying Time Sponsorship 1. Advertiser assumes responsibility for the production and perhaps content 2. Sponsor has control and can capitalize on a show s prestige Participations 1. Participating sponsors share the cost 2. May occur regularly or sporadically 3. Advertiser doesn t do production 4. Participants lack control over content Spot Announcements 1. May be purchased by daypart or adjacency TV Advertising Buying Decisions Network Versus Spot Reach is the primary consideration but ease of purchase is important. National Versus Local Spot Considerations are the geographic markets and ability to acquire airtime. Sponsor, Participate, or Spot Method of buying affects cost, commitment, and identification. Specific Daypart and Weeks Scheduling depends on reach and frequency requirements

6 Methods of Buying Time Sponsorship: Advertiser assumes responsibility for the production and content of the program, and the advertising that appears within it Allows a firm to: Capitalize on the prestige of a high-quality program Have more control over the shows carrying their commercials Methods of Buying Time Participations: Several advertisers buying commercial time on a particular program Advantages Advertiser has no long-term commitment to a program Expenditures can be adjusted to buy spots that fit within the budget Provides greater reach in the media schedule Methods of Buying Time Disadvantages Advertiser has little control over the placement of ads Availability of spots can be an issue Spot announcements - Purchased from the local stations, appear during adjacencies Adjacencies: Time periods adjacent to network programs

7 Selecting Time Periods and Programs Cost of TV advertising time varies depending on the: Time of day Particular program TV time periods are divided into dayparts Dayparts: Specific segments of a broadcast day Advertising rates depend on the size and popularity of dayparts Cable Television Delivers TV signals through fiber or coaxial wire Cable networks and channels get revenues from ads and subscriber fees Superstations: Independent local stations that send signals nationally via satellite to cable operators Make their programs available to subscribers Carry national advertising Advertising on Cable Television Has increased revenues steadily National advertisers are turning to spot advertising on local cable systems Helps reach specific geographic markets Interconnects: Number of cable systems and networks in a geographic area are joined for advertising purposes

8 Common Television Dayparts Advertising on Cable Television Advantages Limitations 1.National, regional, and local available 2.Highly selective narrowcasting 3.Low cost 4.Flexibility 1.Overshadowed by major networks 2.Audience fragmentation 3.Lacks penetration in major markets Advertising on Cable Television Advantages Offers selectivity Offers a chance for narrowcasting Narrowcasting: Reaching very specialized markets Low cost Flexibility Disadvantages Overshadowed by major networks Audience fragmentation Lacks penetration in major markets

9 Future of Cable Challenges Increases in the number of channels Changes in government regulations Competition in the programming distribution business Reaching relevant audiences Growth due to multiplexing Multiplexing: Transmitting multiple channels from one network Television Audience Measures Size and composition measured by ratings services Television household Home with at least one operable TV or monitor with the ability to deliver video Program rating Percentage of TV households in an area that are tuned to a specific program during a specific time period Ratings point: Represents 1 percent of all the television households in a particular area tuned to a specific program Measuring the TV Audience Total Audience Program Rating Share of Audience Households Using TV

10 Television Audience Measures Households using television (HUT) Percentage of homes in a given area where TV is being watched during a specific time period Share of audience Percentage of households using TV in a specified time period that are tuned to a specific program Total audience Total number of homes viewing any five-minute part of a telecast National Audience Information Nielsen television index Provides daily and weekly estimates of the size and composition of the national viewing audiences For programs aired on the broadcast and major cable networks People meter Records what is being watched and by whom in 10,000 households National Audience Information

11 Local Audience Information Designated market areas (DMAs): Non overlapping areas used for planning, buying, and evaluating TV audiences Include group of counties in which stations are located in a metropolitan or central area NSI reports Viewing times Programs watched Audience size estimates Demographics Local Audience Information Local people meter (LPM) - Used to measure the largest local markets Sweeps: Viewing audiences in every local television market are measured at least four times a year Developments in Audience Measurement Commercial ratings: Measures of the average viewership of the commercials both live and up to three days after the ads are played back on a DVR Anytime anywhere media measurement (A2/M2) - Introduction of electronic measurement in all local markets Addition of Internet and out-of-home measurement in Nielsen s People Meter sample Development of passive measurement devices

12 Developments in Audience Measurement Cross-platform campaign ratings: Measures the number of people who: Watch an ad only on television Who view an ad online Overlap between the two Radio and TV Similarities Are time oriented media Both 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 Cost and efficiency Receptivity Selectivity Flexibility Mental imagery Advantages of Radio Image transfer: Images of a TV commercial are implanted into a radio spot Integrated marketing opportunities

13 Figure Rating of Emotional Attributes for Radio Limitations of Radio Creative limitations Fragmentation Chaotic buying procedures Limited research data Limited listener attention Competition from digital media Clutter Buying Radio Advertising Time Network radio - Purchased on a network basis using one of the national networks Spot radio provides: Greater flexibility in selecting markets Individual stations Airtime and a chance to adjust the message for local market conditions Local radio - Purchased from individual stations by local companies

14 Figure Dayparts for Radio Arbitron provides: Audience Information Person estimates - Estimated number of people listening Rating - Percentage of listeners in the survey area population Share - Percentage of the total estimated listening audience Audience Information Average quarter-hour (AQH) figure Average number of people estimated to have listened to a station for a minimum of five minutes during any quarter-hour in a time period Cume Total number of different people who listened to a station for at least five minutes in a quarter-hour period within a reported daypart Average quarter-hour rating (AQH RTG) Estimated number of listeners as a percentage of the survey area population

15 Audience Information Average quarter-hour share (AQH SHR) Percentage of the total listening audience tuned to each station Portable People Meter (PPM) Wearable device that electronically tracks what consumers listen to on the radio RADAR (Radio s All Dimension Audience Research) Measurements are based on information collected throughout the year