Chapter 11 Evaluation of Broadcast Media

¾ The market is large enough and reachable efficiently through a specific network, station, or program... Buying TV TimeNetwork Versus Spot ¾ Networks ƒ Affiliated stations are linked ƒ

Evaluation of Broadcast Media

11

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

This TV commercial gives viewers the sensation of driving a sports car

¾ Limited Viewer Attention

¾ 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

¾ The budget is large enough to produce high quality commercials

¾ The media budget is sufficient to generate

and sustain the number of exposures needed

¾ The market is large enough and reachable

efficiently through a specific network, station,

or program

¾ There’s a genuine need for a medium with

high creative potential to exert a strong

impact

Buying TV Time

Network Versus Spot

¾ Networks

ƒ Affiliated stations are linked

ƒ Purchase transactions are simplified

¾ Spot and local

ƒ Commercials shown on local stations

ƒ May be local or “national spot” commercialsSyndicated Programs

¾ Sold and distributed station by station

ƒ Off-network syndication are “reruns”

ƒ First-run syndications are also featured

¾ Advertiser-supported or bartered

ƒ Programs sold to stations in return for air time

Methods of Buying Time

¾Sponsorship

ƒ Advertiser assumes responsibility for the production and perhaps the content of the program

ƒ Sponsor has control and can capitalize on the

prestige associated with a show

¾Participations

ƒ Multiple advertisers buy spots on a program

ƒ May participate regularly or sporadically

ƒ Advertiser isn’t responsible for production

ƒ Participants lack control over content

¾Spot Announcements

ƒ May be purchased by daypart or adjacency

Three TV Buying Decisions

¾Network Versus Spot

ƒ Reach is the primary consideration but ease of purchase is important

¾ National Versus Local Spot

ƒ Spots purchased by national advertisers are known as national spot

¾Sponsor, Participate, or Spot

ƒ Method of buying affects cost,

commitment, and identification

¾Specific Daypart and Weeks

ƒ Scheduling depends on reach and

frequency requirements

TV Dayparts

7:00 AM - 9:00 AM Mon - Fri.9:00 AM - 4:30 PM Mon - Fri.4:30 PM - 7:30 PM Mon - Fri.7:30 PM - 8:00 PM Sun - Sat.8:00 PM - 11:00 PM Mon - Sat.7:00 PM - 11:00 PM Sun

11:00 PM - 11:30 PM Mon - Fri.11:30 PM - 1:00 AM Mon - Fri

¾ Video Cassette Recorders

ƒ They permit delayed viewing but also allow ZIPPING of commercials

¾ Personal Video Recorders (PVRs)

Personal Video Recorders such as TIVO may change the way people watch television

Cable Television (CATV)

Characteristics of Cable

ƒ National, regional, and local available.

ƒ Targets specific geographic areas.

Advantages of Cable

ƒ Highly selective “narrowcasting.”

ƒ Reaches specialized markets.

ƒ Low cost and flexibility.

Measuring TV Audiences

¾Audience Measures

ƒ Measured by rating services

ƒ Size and composition indicated

¾Television Households

ƒ Number of HH that own a TV

ƒ Usually total HH in a market

¾Program Rating

ƒ Percentage of TV HH tuned to a show

ƒ “Rating point” = 1 percent of TV HH

¾Households Using TV (HUT)

ƒ Percentage of homes in an area watching

TV at a given time

¾Share of Audience

ƒ Percentage of HUT tuned to a show

TV Audience Measures

HH tuned to show U.S HH using TV

Share =

Share of Audience

HH tuned to show Total U.S HH

Rating =

Program Rating

Radio Formats by Age Group

MOR/big band

Remaining formats

Classical Religious NAC/smooth jazz

Urban AC Modern rock

Classic rock

Oldies Spanish Album rock

Urban Country Top 40 News/talk Adult contemporary

45-54 35-44

25-34

18-24

Radio can enhance a TV campaign through imagery transfer

Limitations of Radio

¾ Creative Limitations

¾ Audience Fragmentation

¾ Chaotic Buying

¾ Limited Research Data

¾ Limited Listener Attention

¾ Clutter

Dayparts for Radio

6:00 AM — 10:00 AM 10:00 AM — 3:00 PM 3:00 PM — 7:00 PM 7:00 PM — 12:00 AM 12:00 AM — 6:00 AM

Morning Drive Time

Daytime

Aft./Eve Drive Time

Nighttime

All Night

Buying Radio Time

¾ Network Radio

ƒ Three national networks

ƒ Over 100 regional/area networks

ƒ A multitude of syndicated programs

¾ (National) Spot Radio

ƒ About 20% of all spot announcements

ƒ Allows great flexibility and targeting

ƒ Purchase transaction can be difficult

¾ Local Radio

ƒ Nearly 80% of advertisers are local

ƒ Local CATV is becoming competitive

Radio Differs from TV

¾ Offers only an audio message.

¾ Is more limited communication.

¾ Costs much less to produce.

¾ Costs much less to purchase.

¾ Has less status and prestige.

Radio Broadcasting

Both Media

Radio and TV Similarities

¾ Are time oriented media

¾ Are sold in time segments

¾ Have some network affiliates

¾ Have some independents

¾ Use the public airway

¾ Are regulated by the F.C.C.

¾ Are externally paced media

¾ Are passive, low-involvement

Satellite Radio may change the way people listen to the medium