Evaluation of Broadcast MediaEvaluation of Broadcast Media

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Selectivity and FlexibilitySelectivity and Flexibility

Captivity and AttentionCaptivity and Attention

Coverage and Cost EffectivenessCoverage and Cost Effectiveness

Creativity and ImpactCreativity and Impact

Captivity and AttentionCaptivity and Attention

Coverage and Cost EffectivenessCoverage and Cost Effectiveness

Creativity and ImpactCreativity and Impact

Television Advantages

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ZippingZippingZippingZipping

LowSelectivity

LowSelectivity

FleetingMessageFleetingMessage CostCost

ClutterClutter

DistrustDistrustNegativeEvaluationNegative

EvaluationNegative

EvaluationNegative

Evaluation DistrustDistrust

LowSelectivity

LowSelectivity

ClutterClutter

CostCostFleetingMessageFleetingMessage

Television Disadvantages

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LimitedAttentionLimited

AttentionNegativeFactors

NegativeFactors

LimitedAttentionLimited

Attention

Top 10 Network TV Advertisers

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1. Proctor & Gamble $833.6*

2. General Motors 753.5

3. Johnson & Johnson 521.6

4. Ford Motor Co. 497.6

5. Time Warner 451.9

6. Pfizer 417.8

7. Walt Disney Co. 417.6

8. SBC Communications 396.2

9. PepsiCo 379.5

10. DaimlerChrysler 359.4

CompanyCompany $ Amount$ Amount

* millions of dollars

Digital Video Recorders Such as TiVO are Impacting Television

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There is a genuine need for a medium with high creative potential to exert a strong impact.

There is a genuine need for a medium with high creative potential to exert a strong impact.

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.

The media budget is sufficient to generate and sustain the number of exposures needed.

The media budget is sufficient to generate and sustain the number of exposures needed.

The budget is large enough to produce high quality commercials.

The budget is large enough to produce high quality commercials.

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.

The media budget is sufficient to generate and sustain the number of exposures needed.

The media budget is sufficient to generate and sustain the number of exposures needed.

The budget is large enough to produce high quality commercials.

The budget is large enough to produce high quality commercials.

TV Advertising Works Best When…

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Purchase transactions are simplified

Purchase transactions are simplified

Affiliated stations are linked

Affiliated stations are linked

Commercials shown on local stations

Commercials shown on local stations

May be local or “national spot” commercials

May be local or “national spot” commercials

Commercials shown on local stations

Commercials shown on local stations

Purchase transactions are simplified

Purchase transactions are simplified

Affiliated stations are linked

Affiliated stations are linked

Network Versus Spot

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NetworkNetwork

Spot &Local

Spot &Local

Test Your Knowledge

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

_____ are shows that are sold or distributed on a station-by-station, market-by-market basis.

A) Spot broadcasts B) Televised advertorials C) Affiliate programs D) Participation programs E) Syndicated programs

SponsorshipSponsorship

1. Advertiser assumes responsibility for the production and perhaps content

2. Sponsor has control and can capitalize on the prestige associated with a show

1. Advertiser assumes responsibility for the production and perhaps content

2. Sponsor has control and can capitalize on the prestige associated with a show

ParticipationsParticipations

1. Participating sponsors share the cost

2. May participate regularly or sporadically

3. Advertiser isn’t responsible for production

4. Participants lack control over content

1. Participating sponsors share the cost

2. May participate regularly or sporadically

3. Advertiser isn’t responsible for production

4. Participants lack control over content

Spot Announcements

Spot Announcements

1. May be purchased by daypart or adjacency

1. May be purchased by daypart or adjacency

ParticipationsParticipationsSponsorshipSponsorship

Methods of Buying Time

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Considerations are the geographic markets and ability to acquire airtime.Considerations are the geographic markets and ability to acquire airtime.

National Versus Local Spot

National Versus Local Spot

Considerations are the geographic markets and ability to acquire airtime.Considerations are the geographic markets and ability to acquire airtime.

National Versus Local Spot

National Versus Local Spot

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

Network Versus Spot

Network Versus Spot

Method of buying affects cost, commitment, and identification.Method of buying affects cost, commitment, and identification.

Sponsor, Participate, or

Spot

Sponsor, Participate, or

Spot

Scheduling depends on reach and frequency requirements.Scheduling depends on reach and frequency requirements.

Specific Daypart and Weeks

Specific Daypart and Weeks

Method of buying affects cost, commitment, and identification.Method of buying affects cost, commitment, and identification.

Sponsor, Participate, or

Spot

Sponsor, Participate, or

Spot

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

Network Versus Spot

Network Versus Spot

TV Advertising Buying Decisions

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Common Television Dayparts

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Prime-Time Access

Late News

Morning

Early Fringe Late Fringe

Prime Time

Daytime

Late Night

PM

121

2

3

4

56

10

11

9

7

8

AM

121

2

3

4

56

10

11

9

7

8

Digitally record TV shows and store them on hard drive, or select and view content giving viewer control

Digitally record TV shows and store them on hard drive, or select and view content giving viewer control

DVRs/VODDVRs/VOD

Independent local stations that broadcast nationally via satellite through CATV

Independent local stations that broadcast nationally via satellite through CATV

SuperstationsSuperstationsIndependent local stations that broadcast nationally via satellite through CATV

Independent local stations that broadcast nationally via satellite through CATV

SuperstationsSuperstations

Delivers signals through fiber or coaxial wire rather than the airways Delivers signals through fiber or coaxial wire rather than the airways CableCableDelivers signals through fiber or coaxial wire rather than the airways. Cable networks also transmit via satellite.

Delivers signals through fiber or coaxial wire rather than the airways. Cable networks also transmit via satellite.

Cable(CATV)Cable(CATV)

Other TV Delivery Vehicles

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AdvantagesAdvantages

1. Highly selective “narrowcasting.”

2. Reaches specialized markets.

3. Low cost and flexibility.

1. Highly selective “narrowcasting.”

2. Reaches specialized markets.

3. Low cost and flexibility.

CharacteristicsCharacteristics

1. National, regional, and local available.

2. Targets specific geographic areas.

1. National, regional, and local available.

2. Targets specific geographic areas.

LimitationsLimitations

1. Overshadowed by major networks.

2. Audience is fragmented.

3. Lacks penetration in major markets.

1. Overshadowed by major networks.

2. Audience is fragmented.

3. Lacks penetration in major markets.

CharacteristicsCharacteristics

Cable Television (CATV)

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AdvantagesAdvantages

Television HouseholdsTelevision

Households

Program Rating

Program Rating

Households Using TV

Households Using TV

Share of AudienceShare of Audience

Audience MeasuresAudience Measures

Households Using TV

Households Using TV

Program Rating

Program Rating

Television HouseholdsTelevision

Households

Audience MeasuresAudience Measures

Measuring TV Audiences

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Test Your Knowledge

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The sole source of network television and local audience information is:

A) Arbitron Co. B) Nielsen Media Research. C) RADAR D) Smart-TV E) Burke Research

TV Audience Measures

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HH tuned to show

U.S. HH using TVShare =

Share of Audience

HH tuned to show

Total U.S. HHRating =

Program Rating

HH tuned to show

Total U.S. HHRating =

Program Rating

Sweeps Periods Are Used To Measure TV Audiences

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Are time oriented mediaAre time oriented media

Are sold in time segmentsAre sold in time segments

Have some network affiliatesHave some network affiliates

Have some independentsHave some independents

Use the public airwayUse the public airway

Are regulated by the F.C.C.Are regulated by the F.C.C.

Are externally paced mediaAre externally paced media

Are passive, low-involvementAre passive, low-involvement

Are externally paced mediaAre externally paced media

Are regulated by the F.C.C.Are regulated by the F.C.C.

Use the public airwayUse the public airway

Have some independentsHave some independents

Have some network affiliatesHave some network affiliates

Are sold in time segmentsAre sold in time segments

Are time oriented mediaAre time oriented media

Radio and TV Similarities

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Both Media…

Both Media…

Is more limited communicationIs more limited communication

Costs much less to produce

Costs much less to produce

Costs much less to purchase

Costs much less to purchase

Offers only an audio messageOffers only an audio message

Costs much less to purchase

Costs much less to purchase

Costs much less to produce

Costs much less to produce

Is more limited communicationIs more limited communication

Offers only an audio messageOffers only an audio message

Radio Differs from TV

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Has less status and prestige

Has less status and prestige

Radio Formats by Age Group

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Contemporary hits

Urban

Alternative

Adult contemporary

Hispanic

Rock

Country

Oldies

News/talk/info

Religion

Smooth jazz

Classical

18-24

25-34

34-44

45-54

The RAB Promotes Synergy

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Audience FragmentationAudience Fragmentation

Limited Research DataLimited Research Data

Creative LimitationsCreative Limitations

Chaotic BuyingChaotic Buying

Limited Listener AttentionLimited Listener Attention

Cost and EfficiencyCost and Efficiency

SelectivitySelectivity

FlexibilityFlexibility

Mental ImageryMental Imagery

Integrated MarketingIntegrated Marketing

ClutterClutter

Limited Listener AttentionLimited Listener Attention

Limited Research DataLimited Research Data

Chaotic BuyingChaotic Buying

Audience FragmentationAudience Fragmentation

Creative LimitationsCreative Limitations

Integrated MarketingIntegrated Marketing

Mental ImageryMental Imagery

FlexibilityFlexibility

SelectivitySelectivity

Cost and EfficiencyCost and Efficiency

Advantages and Limitations of Radio

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AdvantagesAdvantages DisadvantagesDisadvantages

Radio Ads Can Enhance TV Campaigns

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Over 100 regional/area networksOver 100 regional/area networksOver 100 regional/area networksOver 100 regional/area networks

Three national networksThree national networks

A multitude of syndicated programsA multitude of syndicated programs

About 20% of all spotsAbout 20% of all spots

Allows great flexibility, targetingAllows great flexibility, targeting

Purchase transaction can be difficultPurchase transaction can be difficult

Nearly 80% of advertisers are localNearly 80% of advertisers are local

Local CATV is becoming competitiveLocal CATV is becoming competitive

Nearly 80% of advertisers are localNearly 80% of advertisers are local

Purchase transaction can be difficultPurchase transaction can be difficult

Allows great flexibility, targetingAllows great flexibility, targeting

About 20% of all spotsAbout 20% of all spots

A multitude of syndicated programsA multitude of syndicated programs

Three national networksThree national networks

Buying Radio Time

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Network Radio

Network Radio

National Spot

National Spot

Local RadioLocal Radio

Dayparts for Radio

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Nighttime

Afternoon/Evening Drive Time

Morning Drive Time

Daytime All Night

PM

121

2

3

4

56

10

11

9

7

8

AM

121

2

3

4

56

10

11

9

7

8

Test Your Knowledge

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Arbitron: A) focuses primarily on measurement of

local radio audiences B) measures listenership to webcasts C) provides radio stations with monthly

cume ratings D) now owns RADAR which is a source of national network rating numbers E) is accurately described by all of the

above

Person estimatesPerson

estimates

ShareShare RatingRating

Network audience measures

Network audience measures

Person estimatesPerson

estimates

ShareShare RatingRating

Audience Information

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ArbitronArbitron

RADARRADAR

New Digital Technologies are Impacting Radio

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