© 2006 Pearson Education Canada Inc. 9.1

Canadian Advertising in Action

Chapter 9

Broadcast Media:

Television and Radio

© 2006 Pearson Education Canada Inc. 9.2

Learning Objectives

Identify Canadian broadcasting industry organizations

Assess advantages and disadvantages of television and radio advertising

Explain considerations and processes in buying television and radio time

Identify recent technologies affecting Canadian television and radio

© 2006 Pearson Education Canada Inc. 9.3

Technologies Affecting Commercial Television

Pay TV and Specialty Networks

Internet and Web TV

PVRs (personal video recorders)

Virtual Advertising

Media Optimizers (software)

© 2006 Pearson Education Canada Inc. 9.4

Advantages & Disadvantages of Television

Impact

High Reach

Frequency Potential

Some Demographic Selectivity

Coverage Flexibility

Demonstration

High Cost

Clutter

Lack of Target Market Selectivity

Audience Fragmentation

Commercial Avoidance

Lead Time (Network)

Creative Limitations

Advantages Disadvantages

© 2006 Pearson Education Canada Inc. 9.5

Television Advertising Options

• Network

• National Spot (Selective spot)

• Sponsorships

• Branded Content

• Local Station

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Influences on Television Ad Rates

Supply and Demand

Nature of Purchase

Type of Program

Daypart

Commercial Length

© 2006 Pearson Education Canada Inc. 9.7

Discounts Offered by Television

• Frequency

• Volume

• Continuity

• Seasonal

• Package Plans• ROS (run of schedule)

• Pre-emption Rates

© 2006 Pearson Education Canada Inc. 9.8

Technologies Affecting Radio

Digital Radio (e.g. CBC)

Internet Radio (e.g. 3wk.com)

The radio industry is changing but at a slower rate than television. Changes will have a negative impact on traditional AM and FM stations.

Visit these websites and outline the advertising advantages these ‘stations’ have compared to traditional radio.

© 2006 Pearson Education Canada Inc. 9.9

Radio Advertising

FM is much more popular than AM.

Radio audiences are largely determined by a station’s format.

• Adult Contemporary

• News / Talk• Sports Talk• CHR

• AOR

• Country

• Classical

• Gold (declining)

© 2006 Pearson Education Canada Inc. 9.10

Radio Listening

Does the above chart reflect your family’s listening habits?

© 2006 Pearson Education Canada Inc. 9.11

Advantages and Disadvantages of Radio

Target Market

Selectivity

Reach Potential

Frequency

Cost

Flexibility

Audience

Fragmentation

Message Retention

Media-Planning

Considerations

Advantages Disadvantages

© 2006 Pearson Education Canada Inc. 9.12

Influences on Radio Rates

Seasonal Rate Structures

Dayparts

Reach Plans

Type of Advertiser

© 2006 Pearson Education Canada Inc. 9.13

Buying Radio Time

Rotation Plans

• Vertical Rotation

• Horizontal Rotation

Reach Plan (Total Audience Plan)

The rotation of commercials through dayparts based on predetermined frequency.

© 2006 Pearson Education Canada Inc. 9.14

Discounts Offered by Radio

Frequency

Volume

Continuity

Package Plans (Reach)

Combination Rates

ROS (run of schedule)