MCOM 341Week 8 Summary

CLASS 1: TELEVISION & RADIO

Definitions:

broadcast TV   Television sent over airwaves as opposed to over cables.

cable TV   Television signals carried to households by cable and paid by subscription

satellite TV   Television broadcast from geostationary satellites in space to satellite dishes on Earth.

first-run syndication  

Programs produced specifically for the syndication market, such as “Oprah” and “Entertainment Tonight.”

off-network syndication  

The availability of programs that originally appeared on networks to individual stations for rebroadcast, such as “Two and a Half Men” and “How I Met Your Mother.”

TV households (TVHH)  

Households with TV sets.

gross rating points (GRPs)  

The total audience delivery or weight of a specific media schedule. One rating point equals 1 percent of a particular market's population.

rating   The percentage of homes or individuals exposed to an advertising medium

rating services   These services measure the program audiences of TV and radio stations for advertisers and broadcasters by picking a representative sample of the market and furnishing data on the size and characteristics of the viewers or listeners. Examples: Nielsen and Arbitron.

sponsorship   The presentation of a radio or TV program, or an event, or even a Web site by a sole advertiser. The advertiser is often responsible for the program content and the cost of production as well as the advertising. This is generally so costly that single sponsorships are usually limited to TV specials.

participation   Several advertisers share the sponsorship of a television program. A "participating" advertiser has no control of the program content. Partnership commitment is usually limited to a relatively short period.

spot announcements  

An individual commercial message run between programs but having no relationship to either. Spots may be sold nationally or locally. They must be purchased by contacting individual stations directly.

infomercial   A long TV commercial that gives consumers detailed information about a product or service; also known as a program-length advertisement.

product placement  

Paying a fee to have a product prominently displayed in a movie or TV show.

programming format  

The genre of music or other programming style that characterizes and differentiates radio stations from each other (i.e., contemporary hit radio, country, rock, etc.).

network radio   Provides national and regional advertisers with simple administration and low effective net cost per station.

spot radio   National advertisers' purchase of airtime on individual stations. Buying spot radio affords advertisers great flexibility in their choice of markets, stations, airtime, and copy.

local time   Radio spots purchased by a local advertiser

run of station (ROS)  

Leaving placement of radio spots up to the station in order to achieve a lower ad rate.

total audience plan (TAP)  

A radio advertising package rate that guarantees a certain percentage of spots in the better dayparts.

Other Concepts:

Key TV statistics:

99% of U.S. households have at least 1 television TV has been the top U.S. mass medium since 2004 Over 50% of all ad spending in the U.S. goes to television, approximately $70 billion Broadcast TV ad revenues make up about 2/3 of total U.S. TV spending Cable/satellite TV ad revenues make up about 1/3 of total U.S. TV spending About 90% of American TV households (TVHH) pay for television, e.g. cable & satellite

Television DaypartsEarly Morning 6 – 9 A.M.Daytime 9 A.M. – 4:30 P.MEarly Fringe 4:30 – 7:30 P.M.Prime Access 7:30 – 8 P.M.Prime Time 8 – 11 P.M.Late News 11 – 11:30 P.M.Late Fringe 11:30 – 2 A.M.

Calculating a TV show’s rating:

Calculating a TV show’s share:

TV ad campaign metrics:

Radio DaypartsMorning drive 6 A.M. – 10 A.M. Daytime 10 A.M. – 3 P.M. Afternoon drive 3 P.M. – 7 P.M. Nighttime 7 P.M. – midnightAll night Midnight – 6 A.M.

Radio metrics:

Total TVHH in area

TVHH tuned to program=

Rating

1,147,910 (CLT DMA)

50,000=4.

36

HH with TV on

TVHH tuned to program=

Share

537,955 (50% of TV’s in market)

50,000=8.7

1

Cost per Thousand

Cost per Point

Gross Rating Points

Reach (avg. rating) ×

Frequency=

GRP

=CPP

Rating

Cost

Thousands of Viewers

=CPM

Cost

=Cume Rating Population

Reach Potential ×

100Cume Estimates

Gross Rating Points (GRP)

Average Quarter-Hour (AQH)

AQH Rating Population

AQH Persons × 100=

GRP

AQH Rating × No. of Spots

=

CLASS 2: DIGITAL INTERACTIVE ADVERTISING

Definitions:

Page views A measure of web traffic, the number of total pages downloaded by users of a web site in a given month.

Unique visitors A measure of web traffic, the number of individuals who visit a specific web site within a given month.

Impressions Each time an online ad serves to a web site page, it represents an ad impression. Click-through When a user clicks on an online ad and is directed elsewhere, that is a click-through.Click-through rate The percentage of click-throughs to impressions served for an online ad campaign. The U.S.

national average is 0.10%Search engines Web sites that are devoted to finding and retrieving requested information from the World

Wide Web.Keyword   A word (or phrase) that a user inputs into an internet search engine to request information

similar in subject matter to that word. Advertisers may buy keywords from search engines so that their advertisements appear in premium positions on the page when a user inputs the purchased word.

Cost per click A type of advertising price structure where the advertiser pays based on the number of times a published ad is clicked on. Search engines often base search result rankings on the dollar amount paid for each click. The highest ranking goes to the highest bidder.

CPM impressions Many digital display ads (banners) are purchased by a cost per thousand (CPM) impressions.Search engine The process of buying keywords through bidding to appear higher in search engine results.marketingSearch engine The process of maximizing web pages to achieve high rankings in search engine results.optimizationEmail advertising   A direct marketing tactic whereby an advertising message is delivered to recipients’ email

addresses. Emails may be permission based or spam. Banner ads Online display ads generally found along the top and right of a web site’s content pages.

Banner ads come in standard sizes, measured in pixels, regulated by the Interactive Advertising Bureau (IAB).

Rich media ads Digital ads that use a full range of animation and sound and often involve user interaction.Video ads Ads in video form. They can take place in the context of rich media. They may run with other

video content or static content.

Other Concepts:

The Digital Advertising Landscape: Types of Interactive Ads

Projected Online Ad Spending

Banner ads Rich media ads Video ads

Facebook Twitter YouTube LinkedIn Etc. Craigslist

Cars.com Monster.com

Trulia.com Etc.

US Online Spending Relative to Other Media

Please note that online ad spending is 2nd only to television in total ad dollars spent in the U.S.