Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc.,...

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Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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Page 1: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Evaluation of Broadcast Media(TV and Radio)Fall 2011

Evaluation of Broadcast Media(TV and Radio)Fall 2011

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

Page 2: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 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

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

Page 3: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

TV Commercials on Programs Such As the Super Bowl Reach Large Audiences

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Page 4: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

ZippingZippingZippingZipping

LowSelectivity

LowSelectivity

FleetingMessageFleetingMessage CostCost

ClutterClutter

DistrustDistrustNegativeEvaluationNegative

EvaluationNegative

EvaluationNegative

Evaluation DistrustDistrust

LowSelectivity

LowSelectivity

ClutterClutter

CostCostFleetingMessageFleetingMessage

Television Disadvantages

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LimitedAttentionLimited

AttentionNegativeFactors

NegativeFactors

ZappingZapping

LimitedAttentionLimited

Attention

Page 5: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Top 10 Network TV Advertisers

11-5

Top 10 Network TV Advertisers

Page 6: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Digital Video Recorders Such as TiVO and Netflix are Impacting Television

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Page 7: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

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…

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

Page 8: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

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

Page 9: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Trends in Advertising Spending

http://online.wsj.com/article/SB10001424052748704825504574582310496271156.html

Page 10: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Common Television Dayparts

11-10

Page 11: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Cable Television

• Rapid growth during last 20 years– 91% of households have cable TV via

wired cable or satellite

• Development of superstations– Independent local stations that send their

signals nationally via satellite– Sports, movies, and reruns of network

shows– Carries national advertising

11-11

Page 12: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Advertising on Cable Television

Advantages

1. National, regional, and local available

2. Highly selective “narrowcasting”

3. Low cost

4. Flexibility

Limitations

1. Overshadowed by major networks

2. Audience fragmentation

3. Lacks penetration in major markets

11-12

Page 13: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

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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Page 14: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

TV Audience Measures

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

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

Page 15: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

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Page 16: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.
Page 17: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.
Page 18: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

http://popwatch.ew.com/2010/10/18/american-idol-glee-and-football-top-the-list-of-most-expensive-broadcast-tv-shows-for-advertising/

Page 19: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Sweeps Periods Are Used To Measure TV Audiences

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Page 20: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

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

Page 21: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

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

Page 22: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 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

Page 23: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Radio Time Classifications

11-23

Page 24: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Person estimatesPerson

estimates

ShareShare RatingRating

Network audience measures

Network audience measures

Person estimatesPerson

estimates

ShareShare RatingRating

Audience Information

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

ArbitronArbitron

RADARRADAR

Page 25: Evaluation of Broadcast Media (TV and Radio) Fall 2011 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

New Digital Technologies are Impacting Radio

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