RTV 001Introduction to Broadcasting

Chapter 6Internet & New Media

Chapter 6 Internet & New Media

New Media is the term applied to the convergence of Audio/Video technologies with the World Wide Web.“Technological obstacles to the transmission of quality video over the Web include problems of downloading large video files quickly…”

America Gets Wired

• U.S. teletext/data services were organized by private industries

• 1978 = William Von Meister starts The Source, the first home computer network

• 1980 = Compuserve founded by H&R Block as way to link tax services

Early Info Services

• 1985 = Prodigy founded by Sears and IBM– First to use “computer bulletin boards”– First to integrate graphical ads– Designed like an online magazine

• 1985 = Quantum (later America Online) founded by Quantum Computer Services

–First to use “chat rooms”

Internet Service Providers

• ISPs = Internet Service Providers

• Early challenges:– Many online services initially served larger cities

– so many rural people needed to dial long distance to connect

– Modem speeds were still slow (1,200 baud/second)

Rise of ISPs Popularity• Long distance rates dropped in the early 90s• ISP usage fees dropped• Big ad campaigns for AOL, Prodigy,

Compuserve • Faster modems emerged• More powerful computers debuted

– Color monitors and better online graphics

Rise of ISPs

• Online services strive to retain customers and attract new users

• Goal is to limit Churn rate (Churn = customer turnover)

Growth of the WWW• 1993 = Mosaic (first commercial

GUI Web browser - Graphical User Interface) debuts

• Network Solutions = company that initially registered Internet domain names

• Search engine = Tool to find content/data on the web (examples: Yahoo & Google)

Internet Basics• Internet is not owned or

managed by any single person, company, or government

• Several organizations, such as the Internet Society and the World Wide Web Consortium, set guidelines for the its standards and its operation.

Internet Standards• Standards are important because it ensures that

everything works

• When a Universal Resource Locator (URL) address is typed into a browser, a request for information is made from the gateway to the server housing information.

• Domain names help to

provide pathways for information.

Domain name standards

– .com (Commercial)– .edu (Education)– .net (Networking

Organizations/Commercial)– .org (Organizations)– .mil (U.S. military)– .gov (government)

New domains

• More top level domains exist…but few people are using them– .biz (business)– .info (information)- Many country extensions are used for

commercial purposes• .ca (Canada) • .ws (Western Samoa)

Browser Wars

• Netscape Navigator vs. Microsoft Explorer• Navigator challenged by Microsoft’s debut of

Explorer in 1995• 1997 = Explorer 4.0 surpasses Netscape• 2003 = More than 90% of users browse Web

via Explorer• Alternates exist…Firefox• http://www.google.com/chrome

Browsers• Browsers display contents of HTML (Hypertext

Markup Language) HTML is the publishing language of the World Wide Web.

• HTML page = Web page

• Web pages may contain more than just text and pictures– Plug-In software extends the functionality of the

browser

RTV 001Introduction to Broadcasting

Chapter 7The Business of Broadcasting…

Advertising

The next step is to find out how many potential viewers you can reach for

your money.

* Target Audience

* Demographics

* Psychographics

Buying Power Index (BPI)

• Buying Power Index (BPI) = data that ranks how much potential money there is to spend among listeners in a specific region or demographic

Advertising

• Gross Rating Points (GRPs), gives the buyer a way to evaluate a run of __

commercials over a specific time period.

• Gross impressions measures the total ad impressions reached by a commercial– Example: Pepsi ad was viewed by 32 million

viewers combined for all of its run on TV

Cost Per Thousand (CPM)

Cost-per-thousand (CPM) is a way to compare the cost of advertising on different media.

• To calculate the CPM, you need to know the cost of the spot and the size of the audience

• Example:

• CPM = Cost of Spot = $240 = $12• Audience Size 20,000

– The cost is $12 per thousand viewers/listeners

Radio and TV stations use rate cards to help media buyers place

their ads.

Rate Cards and Dayparts

• Media buyers select timeslots, called dayparts, to advertise.

–Morning and afternoon drivetime are the most expensive dayparts to buy.

Dayparts

• Radio broadcast day is broken into five dayparts:

–Morning drive–Mid-day–Afternoon drive–Evening–All-Night

Dayparts

• Morning drive– 6 a.m.-10 a.m.– The most listened to daypart– Highest pay– Often a team, rather than an individual– “Morning Zoo” or other comedy format– Funny, entertaining– Emphasis on traffic conditions

Dayparts

• Mid-day– 10 a.m.-3 p.m.– Emphasis on the music– Largely female listenership– More laid-back than morning– Most at home listeners, but many at work

Dayparts

• Afternoon drive– 3 p.m.-7 p.m.– Commuters and teens home from school– “day is over…time to play” attitude

Dayparts

• Evening– 7 p.m.-Midnight– Competing with Television– Heavy reliance on interactivity (requests,

dedications)

Dayparts

• All-Night– Midnight-6 a.m.– “Dead zone”– Longer music sweeps– Fewer commercials– Slot for beginners

Advertising Demographics

• Where to place an ad?

• Size is not always important!!!

• What TYPE of listener/viewer are you reaching?– A good demographic may be more important than

audience size

Demographics

• For example: – News/Talk radio stations have affluent listeners– Ratings may be lower than hit radio station, but

many advertisers are more interested in specifically reaching this rich audience

– Fewer listeners – but a better fit

Radio Sales• Local, national spot and network sales

provide venues for advertisers to focus in on specific audiences or advertise broadly.

Local Ads

• Local = Ads placed by local businesses (example: Stockton Auto Mall, Chuck’s Diner)

• Nearly 75% of all radio sales are LOCAL• Co-op ads = local business shares cost of ad with

national business– Example: Ford Motor Company ad for new car mentions

local Stockton dealership (both Ford and local company get branding in ad)

National Ads• Ads sold to national

advertisers• Example: Coke, Pepsi• Media buyers may

purchase ads on multiple stations with a single ad buy

Network Ads

• Sale of advertising at the network level

• Local affiliates can sell remaining ad time but must carry the national ads within the program

Non-commercial Radio• Non-commercial radio does not air ads• However, it does have sponsors (“This

program funded by…”)

Television Ad Sales

3 Types of Advertising Purchases

1. Local Sales

2. National Spot Sales

3. Network Sales

TV Advertising

• Local stations can add adjacencies (local ads) into national programming– Example: NBC sends local affiliate new episode of

“Community” along with imbedded national ads. Local outlet does not get money from national ads, but it can mix in some local ads for profit

TV Advertising– Local news times tend to be very

profitable local spot times for television network affiliates.

– Stations fill broadcast times with syndication and local programming when networks do not provide programming.

• Example: “Oprah”,“Judge Judy”, “Jerry Springer”

Cable Advertising

– Just like local TV networks, the cable and satellite companies can also insert their own ads.

– Cable franchises sell time on their own local systems while media buyers use cable networks to buy for nationally advertised products.

TV Advertising• Unlike radio, the majority of the television ad

revenue is NOT local

Advertising

• There are several types of announcements on radio and television.– Commercial time is paid by advertisers.– Promotional announcements made by the station

itself help to provide excitement for the station or its programming.

– Public Service Announcements (PSAs) provide free announcements and publicity to non-for-profit organizations.

Web Advertising &New Media Opportunities

• Station Web sites are increasingly important to building strong ties to listeners or

viewers in the community.• As a result Web sites are important promotional vehicles for

broadcast stations• A good Web site provides extended coverage for local news

stories on the Web.• Today it’s about coordination. Broadcasters, networks, and program producers are vitally interested in making sure

their audiences online experience provides the right complement to its programming.

• http://www.emmysfoundation.org/2010-sessions

Web Advertising &New Media Opportunities

• Internet Advertising is becoming an important secondary source of revenue for

many media outlets (TV & Radio Stations) . • A variety of sales techniques such as banners,

contextual ads (with display), pop-ups, and interstitials (brief ad display) are used.