Television Bureau of Advertising Spot 101 An Introduction to Planning and Buying Local Broadcast...
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Transcript of Television Bureau of Advertising Spot 101 An Introduction to Planning and Buying Local Broadcast...
Television Bureau of AdvertisingTelevision Bureau of Advertising
Spot 101An Introduction to
Planning and Buying Local Broadcast Television
2
Spot Television buys are often among the largest investments
an advertiser will make.
In fact, advertisers spend more money on Local Broadcast Television than on
Network, Cable or Syndication.
The Spot Television MediumThe Spot Television Medium
3
TV Ad Expenditures
Source: TNS 2008
$16,494,563
$25,445,871
$4,444,930
Spot Network Syndication TV
(Most Recent Annual, in Millions)(Most Recent Annual, in Millions)
4
TV Programs and Commercials are Delivered in a Variety of Ways:
Network – Simultaneous station telecast of programming and commercials to 95% of the US (e.g. NBC).
Syndication – Individual station telecasts in markets (e.g. Oprah). “Cleared” markets are grouped, so advertising time can be sold to national advertisers.
TV DistributionTV Distribution
5
TV Programs and Commercials are Delivered in a Variety of Ways:
Spot – Programming and commercials telecast by individual stations in individual markets (e.g. WLS-TV/Chicago).
Cable – Programming delivered via cable into the home (e.g. Lifetime). Cable can be Network or Spot.
TV DistributionTV Distribution
6
A spot buy is local or national depending on the following criteria:
Who the advertiser is. National companies distributing products into many US markets, such as Kraft = National Spot. Local companies advertising in their own market, such as Banks = Local Spot.
How the time is bought. If bought through national rep firms, it’s national spot. If bought directly from the stations, it’s local spot.
Local Spot or National SpotLocal Spot or National Spot
7
O&O – Owned and Operated by a TV network.
Affiliate – Independently owned, but affiliated with a TV network. Broadcasts that network’s programming.
Independent – Independently owned and programmed.
Public – Non-commercial.
Types of StationsTypes of Stations
8
Nielsen divides the US into 210 Designated Market Areas (DMAs) based on viewing.
A television station is assigned to the market where its signal originates.
TV Markets (DMA’s)TV Markets (DMA’s)
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Sight, sound, motion, emotion. Television offers advertisers a broad range of creative options to capture
viewer attention.
A Few Nice Words About TelevisionA Few Nice Words About Television
10
More of an advertiser’s prospective customers, in almost every major demographic segment – for longer periods of time every day than any other medium.
Television ReachTelevision Reach
Source: TVB - Nielsen Media Comparisons Study 2008
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Television Reaches More Adults Each Day than Any Other MediumTelevision Reaches More Adults Each Day than Any Other Medium
90.2
63.873.4
50.1
65.6
Television Newspapers Radio Magazines Internet
A18+ % Reached Yesterday
Source: TVB - Nielsen Media Comparisons Study 2008
12
Adults Spend More Time with Television Each Day Than They Do with Any Other
Medium
Adults Spend More Time with Television Each Day Than They Do with Any Other
Medium
26.7
98.0
16.7
98.5
236.6
Television Newspapers Radio Magazines Internet
A18+ Minutes Spent
Source: TVB - Nielsen Media Comparisons Study 2008
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Newspapers9.9%
Radio4.6%
Magazines15.6%
Television52.9%
Internet17.0%
More Adults Learn About Products From TV
More Adults Learn About Products From TV
Source: TVB - Nielsen Media Comparisons Study 2008
A18+A18+
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TV is the Most Authoritative, Exciting, Influential and Persuasive Medium
TV is the Most Authoritative, Exciting, Influential and Persuasive Medium
Television NewspapersMagazines Radio Internet
Most Authoritative49.2 21.7 12.3 10.4 6.4
Most Exciting 77.9 3.9 6.4 5.2 6.6
Most Influential 79.1 7.4 3.8 3.0 6.7
Most Persuasive 69.7 10.5 9.0 6.3 4.6
Source: TVB, Nielsen Media Comparisons Study 2008
Why Spot?Why Spot?
Television is usually an essential element of a media plan.
If Network can reach all of the US, why use Spot?
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Large or small, Rolling out nationally, Limited by distribution, Dependent on key markets, In test, …
If your brand is…If your brand is…
Why Spot?Why Spot?
17
Interested in local promotions Under competitive assault Advertising nationally and
under-delivering key markets Want to keep brand top-of-mind Subject to budget limitations
… … SpotSpot can help achieve your goals.can help achieve your goals.
Why Spot?Why Spot?
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Geographic TargetingIdentifying a brand’s best prospects, and reaching them where they live and shop, is a powerful media strategy.
In fact, geography can be more predictive of salesthan demography (age/sex).
Why Spot?Why Spot?
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124
126
133
160
San Diego
New Orleans
Palm Springs
Larado
Source: The Lifestyle Market Analyst-2008
Own Smart Cellular PhonesIndex to the national average (100).
Geographic TargetingGeographic Targeting
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131
135
148
173
New Orleans
Savannah
Palm Springs
Ft. Myers
Cruise Ship VacationsIndex to the national average (100).
Geographic TargetingGeographic Targeting
Source: The Lifestyle Market Analyst-2008
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118
121
123
120
San Francisco
West Palm Beach
Honolulu
Ft. Myers
Stock / Bond InvestmentsIndex to the national average (100).
Geographic TargetingGeographic Targeting
Source: The Lifestyle Market Analyst-2008
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This kind of local market selectivity even extends to the purchase of individual brands.
Different market groups can over-deliver average U.S. sales by significant margins.
Geographic TargetingGeographic Targeting
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DTC Allergy ReliefThe best 1/3 of the US indexes at 148.
Source: IMS prescription data/MRI - Based on Brand Sales (BDI)
Geographic TargetingGeographic Targeting
Coke Classic
The best 1/3 of the US indexes at 153.
Source: IRI/MRI - Based on Brand Sales (BDI)
Geographic TargetingGeographic Targeting
Oreo CookiesThe best 1/3 of the US indexes at 124.
Source: IRI/MRI - Based on Brand Sales (BDI)
Geographic TargetingGeographic Targeting
BMW 530The best 1/3 of the US indexes at 224.
Source: Polk Special tabulation/MRI - Based on Brand Sales (BDI)
Geographic TargetingGeographic Targeting
Advertising to consumers who are more likely to buy,
based on demography and geography, can boost brand
sales.
Geographic TargetingGeographic Targeting
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Television Markets Vary By Ethnicity
The top 25 African American Markets reach 61.5% of all African American households.
The top 25 Hispanic Markets reach 76.1% of all Hispanic households.
Ethnic TargetingEthnic Targeting
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Top 10 African American MarketsTop 10 African American Markets
Source: Nielsen Media Research, NSI, Jan 2009
Rank* DMA Rank Market
A-ATV HH
DMAs % of Total US
A-A TV HH
Cumulative% Total US
A-ATV HH
A-A TV HH% of
DMA HH
1 1 New York, NY 1,272,940 9.127 9.13% 17.12%
2 8 Atlanta, GA 653,240 4.684 13.81% 27.57%
3 3 Chicago, IL 601,600 4.313 18.12% 17.22%
4 9 Washington, DC (Hagerstown, MD) 563,490 4.040 22.16% 24.27%
5 4 Philadelphia, PA 534,010 3.829 25.99% 18.10%
6 2 Los Angeles, CA 482,540 3.460 29.45% 8.53%
7 11 Detroit, MI 395,070 2.833 32.29% 20.50%
8 10 Houston, TX 373,230 2.676 34.96% 17.72%
9 5 Dallas-Ft. Worth, TX 356,800 2.558 37.52% 14.33%
10 26 Baltimore, MD 298,360 2.139 39.66% 27.07%
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Top 10 Hispanic MarketsTop 10 Hispanic Markets
Source: Nielsen Media Research, NSI, Jan 2009
Rank* DMA Rank MarketHispanicTV HH
DMAs % of Total US Hispanic TV HH
Cumulative% Total USHispanicTV HH
Hispanic TV HH% of
DMA HH
1 2 Los Angeles, CA 1,854,810
14.655 14.66% 32.80%
2 1 New York, NY 1,242,160
9.814 24.47% 16.71%
3 16 Miami-Fort Lauderdale, FL 658,490 5.203 29.67% 42.57%
4 10 Houston, TX 549,890 4.345 34.02% 26.11%
5 5 Dallas-Ft. Worth, TX 488,150 3.857 37.87% 19.60%
6 3 Chicago, IL 485,270 3.834 41.71% 13.89%
7 37 San Antonio, TX 382,990 3.026 44.73% 46.79%
8 12 Phoenix, AZ 381,180 3.012 47.75% 20.54%
9 6 San Francisco-Oakland-San Jose, CA
377,730 2.984 50.73% 15.25%
10 87 Harlingen-Weslaco-Brownsville-McAllen, TX
291,220 2.301 53.03% 83.23%
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Local TV is Not all the SameLocal TV is Not all the Same
Spot Television is a proven media strategy.
But consider it carefully . . .
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Local Cable can be an effective choice for:
Children audiences Small trading areas HS sports sponsorships...
Local TV is Not all the SameLocal TV is Not all the Same
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Broadcast reaches many more people, more frequently and at much lower cost-per-1,000 viewers.
Local TV is Not all the SameLocal TV is Not all the Same
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Find out about the nuances of a market’s viewers, lifestyles and television options.
A Few Tips on Buying SpotA Few Tips on Buying Spot
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Tip #1: Make your buying guidelines as specific as possible. Tip #2: Talk to the competition Tip #2: Talk to the competition – this is good leverage in – this is good leverage in negotiation.negotiation.
A Few Tips on Buying SpotA Few Tips on Buying Spot
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Tip #3: See the station guys – use every meeting to learn something new about the market.
Tip #4: Be responsive and expect the same from the seller.
A Few Tips on Buying SpotA Few Tips on Buying Spot
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Tip #5: Challenge the station to offer creative options and the best priced packages.
A Few Tips on Buying SpotA Few Tips on Buying Spot
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Does the coverage area match my client’s Retail Trading Area?
Can I choose programs or will my messages rotate through broad dayparts?
Questions To Help You Buy the Market
Questions To Help You Buy the Market
39
Will my commercial air in all homes that receive your programming?
Will you provide proof of performance for all of the spots I pay for?
Questions To Help You Buy the Market
Questions To Help You Buy the Market
40
TVB offers Advertisers and Agencies (planners or buyers) a full range of information about Local Television at tvb.org:
Buying Spot TelevisionBuying Spot Television
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The Resource Channel on the TVB web site was created for advertisers and agencies.
We invite you to visit and learn more about things like:
Planning and Buying Spot Television Local Broadcast TV vs. Other Media ePort: Enabling electronic buying and selling processes
Buying Spot TelevisionBuying Spot Television
Television Bureau of AdvertisingTelevision Bureau of Advertising
Thank youSee you at www.tvb.org