Evaluation of Broadcast MediaEvaluation of Broadcast Media

11

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Television Advantages

Selectivity and FlexibilitySelectivity and Flexibility

Captivity and AttentionCaptivity and Attention

Coverage and Cost EffectivenessCoverage and Cost Effectiveness

Creativity and ImpactCreativity and Impact

Reaching Large Audiences via Program

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Television Disadvantages

LowSelectivity

LowSelectivity

FleetingMessageFleetingMessage CostCost

ClutterClutter

DistrustDistrustNegativeEvaluationNegative

Evaluation

LimitedAttentionLimited

AttentionNegativeFactors

NegativeFactorsZippingZipping

ZappingZapping

Viewer Involvement

DVRs are Impacting Television

Top 10 Network TV Advertisers

Clever TV Ads Entertain, Inform, and Retain

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Network versus Spot

May be local or “national spot” commercials

May be local or “national spot” commercials

NetworkNetwork

Spot &Local

Spot &Local

Purchase transactions are simplified

Purchase transactions are simplified

Affiliated stations that are linked

Affiliated stations that are linked

Commercials shown on local stations

Commercials shown on local stations

The CW Network

Syndicated Programs

Off-network syndication are “reruns”

Off-network syndication are “reruns”

First-run syndications are also featured

First-run syndications are also featured

Advertiser-supported or

bartered

Advertiser-supported or

bartered

Sold and distributed station by

station

Sold and distributed station by

station

Programs sold to stations in return for air time

Programs sold to stations in return for air time

Top 10 Syndicated Programs

Methods of Buying Time

SponsorshipSponsorship

1. Advertiser assumes responsibility for the production and perhaps content

2. Sponsor has control and can capitalize on a show’s prestige

1. Advertiser assumes responsibility for the production and perhaps content

2. Sponsor has control and can capitalize on a show’s prestige

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

Weekday Television Dayparts

Prime-Time Access 7:30 p.m.-8:00 p.m.

Late News 11:00-11:30 p.m.

Morning 7:00-9:00 a.m.

Early Fringe 4:30 p.m.-7:30 p.m.

Late Fringe 11:30-1:00 a.m.

Prime Time 8:00 p.m.-11:00 p.m.

Daytime 9:00 a.m.-4:30 p.m.

Cable Television (CATV)

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

ESPN is One of the Most Popular Cable Networks

SportsCenter Spots

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The Future of Cable

Govt. regulations

Govt. regulations

More channels

More channels

CompetitionCompetition

Future Challenges

Future Challenges

DBS services

DBS services

New technology

New technology

Test Your Knowledge

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

Measuring the TV Audience

Total Audience

Total Audience

Program Rating

Program Rating

Households Using TV

Households Using TV

Share of AudienceShare of Audience

TV Audience Measures

HH tuned to showU.S. HH using TVShare =

Share of Audience

HH tuned to showTotal U.S. HHRating =

Program Rating

National Audience Information

Local Audience Information

Sweeps Periods

Developments in Audience Measurement

Commercial Ratings data (C3)

Engagement metrics

Anywhere Media Measurement (A2/M2)

Radio and TV Similarities

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

Both media…

Both media…

Radio Differs From TV

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

Has less status and prestige

Has less status and prestige

Advantages of Radio

Mental ImageryMental Imagery

FlexibilityFlexibility

SelectivitySelectivity

Receptivity Receptivity

Cost and Efficiency Cost and Efficiency

Integrated MarketingIntegrated Marketing

Mental Imagery

• Visual elements of television commercials are transferred into the consumer’s mind by using a similar audio track in radio commercials

Burger King Uses Radio Creatively

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Radio Gives Customers a Clearer Picture

Limitations of Radio

Audience FragmentationAudience Fragmentation

Limited Research DataLimited Research Data

Creative LimitationsCreative Limitations

Chaotic BuyingChaotic Buying

Limited Listener AttentionLimited Listener Attention

ClutterClutter

Digital Media CompetitionDigital Media Competition

Buying Radio Time

Over 100 regional/area networksOver 100 regional/area networks

Three national networksThree national networks

A multitude of syndicated programsA multitude of syndicated programs

Network Radio

Network Radio

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

SpotRadioSpotRadio

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

Local CATV is becoming competitiveLocal CATV is becoming competitive

Local RadioLocal Radio

Dayparts for Radio

Test Your Knowledge

Arbitron:

A) Measures 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) All of the above

Audience Information

Person estimatesPerson

estimates

ShareShare RatingRatingArbitronArbitron

Network audience measuresNetwork audience measuresRADARRADAR

Media Planner Responsibilities

Identify advertising ratesIdentify advertising rates

Optimize the advertiser’s budgetOptimize the advertiser’s budget

Ensure target audience coverageEnsure target audience coverage

Set time schedulesSet time schedules