broadcast media advertising principles and practices

Broadcast Media

Advertising Principles and Practices

Holiday Inn Express Stays SmartHoliday Inn Express Stays Smart

\

• Holiday Inn needed to establish a subbrand to compete with Marriott and Hampton Inn.

• Focusing on “road warriors,” they used TV spots on a few cable networks on selected days to build familiarity and momentum.

9-2Prentice Hall, © 2009


Broadcast Media BasicsBroadcast Media Basics

• Media than transmits sounds or images electronically.– Radio, TV, video, movie, cell phones

• Bought in time (seconds, minutes).• Messages are fleeting.• Engage sight and sound; more entertaining.• Radio advertising engages the imagination

and television creates powerful brand imagery.

• Both radio and TV use emotion and repetition to intensify memory.


Radio BasicsRadio Basics

• More than 10,000 commercial radio stations, mostly serving local markets.

• Radio industry growth is flattening, with only a 5% increase in national ad spending for 2007, and only a 1% decrease in local ad spending.


Radio Industry StructureRadio Industry Structure


The Radio AudienceThe Radio Audience

• Highly segmented by type of music, format

• Listeners divided into segments– Station fans– Radio fans– Music fans– News fans

• Audiences grouped by dayparts – Morning Drive: 6–10 a.m. – Mid-Day: 10 a.m.–3 p.m. – Evening Drive: 3–7 p.m. – Evening: 7 p.m.–midnight– Late Night: midnight–6 a.m.


Radio Audience MeasurementRadio Audience Measurement

• Coverage (number of homes able to pick up station; tuned in or not)

• Ratings (percent of homes tuned to a station)

• Audience Rating Services– Arbitron Ratings Company:

estimates audiences for 250 markets in the United States.

– RADAR (Radio’s All-Dimension Audience Research): estimates audiences for both local and network radio.


Radio AdvertisingRadio Advertising

• Delivers high frequency using jingles for repetition.

• Uses drama to engage the imagination as in public service announcements (PSAs), which are created free by agency personnel and run broadcast free by media.

Principle: Radio advertising has the power to engage the

imagination and communicate on a more personal level than other forms of media.


Radio Revenue CategoriesRadio Revenue Categories

• Network Radio Advertising– Group of local affiliates connected to one or more national

networks (ABC, CBS, Westwood One, Unistar, Clear Channel)– National medium for food, beverages, cars, over-the-counter drugs– Growth has contributed to increase in syndicated radio

• Spot Radio Advertising– Advertiser places ads with an individual station, not a network– Makes up nearly 80% of all radio advertising due to flexibility.– Messages can be tailored for particular audiences– Flexibly in content, timing, and rates

• Syndicated Radio Advertising– Offers advertisers a variety of high-quality, specialized, and

usually original programs– Advertisers value syndicated programming because of the high

level of audience loyalty (the Paul Harvey show)


Television BasicsTelevision Basics

• Television is pervasive– 98% of U.S. homes have at

least one television; 60% have three or more televisions.

• Parents and early childhood experts are concerned about children’s TV use– U.S. kids spend about 4

hours/day watching TV

Principle: Television advertising is tied to television programming and its effectiveness is determined by the popularity of

the television program.


Television Industry StructureTelevision Industry Structure


Television Industry StructureTelevision Industry Structure

• Network– 2+ stations broadcasting same

program from a single source; 15+ hours of prime-time per week, 8-11

• Cable and Subscription– Provides highly targeted, special

interest programs

• Local Television– Independent (non affiliate) stations

with ads by local retailers, financial institutions, auto dealers, restaurants

• Public Television– Reach well-educated, affluent

households with program sponsorships


Distribution & ProgrammingDistribution & Programming• Low-power television (LPTV)

– 15-mile radius; used by hotels

• Pay-per-view – Via satellite, sports/music events

• Program Syndication– Independent TV and cable stations

purchase reruns – First-run syndication

• Interactive Television – TV set with computer capabilities

• High-Definition TV (HDTV)– High-resolution playback

• Digital Video Recorders (DVRs) – Record shows to watch whenever– Commercials can be skipped


The Television AudienceThe Television Audience

• Many advertisers still consider TV their primary advertising medium.

• Challenges faced by advertisers include viewers switching, zipping through ads, or avoiding them entirely with TiVo.

• Advertisers must learn to address “clutter” by creating breakthrough messages.


TV Audience MeasurementTV Audience Measurement

• Households Using Television (HUT) measures exposure based on houses with sets on.

• Impressions—the number of viewers watching a program—measured by:– Ratings– Share

• A.C. Nielsen measures national and local audiences using people meters and viewer diaries.


Television AdvertisingTelevision Advertising

• Tells stories, engages emotions, creates fantasies, has great visual impact

• Demonstrates how things work

Principle: If you are going to use television, design a message that

takes advantage of its visual and emotional impact.


Forms of TV AdvertisingForms of TV Advertising


2006 $/:30 second

American Idol $600,000Desperate Housewives $394,00024 $364,000CSI $347,000Grey’s Anatomy $344,000Survivor $296,000

2004 $/:30

Friends $473,500Will & Grace $414,500

2001 $/:30

ER $425,400Friends $353,600

Table 9.2 Time Is Money: The Top Shows by Ad Rates

Sources: Claire Atkinson, “’Desperate Housewives’ Keeps Sunday Rates Competitive,” Advertising Age, September 21, 2006, http://www.adage.com; 2006–2007 Prime Time TV Season 30 Second Ad Rates, http://www.frankwbaker.com; Joe Mandese, “The Buying and Selling,” Advertising Age, Spring 1995, 20; “Top 10 Shows by Ad Rates,” Advertising Age, September 15, 1997, S2.

1988 $/:30

Seinfeld $575,000ER $560,000

1992 $/:30

Murphy Brown $310,000Roseanne $290,000

1987 $/:30

Cosby Show $369,500Cheers $307,000

1980 $/:30

M*A*S*H $150,000Dallas $145,000


Other Broadcast FormsOther Broadcast Forms

• Film and Video– Movie theaters trailers

– Ads before DVDs/videos

– Videos in stores and offices

– Videos on MySpace, YouTube, video.google.com

• Product Placement– Company buys verbal or visual

brand exposure in movie or TV– Less intrusive; product

demonstrated in natural setting– Unexpected; occurs when viewer

resistance is down – Unnoticed; product may not match

movie or audience; movie may fail


Radio Advertising

Advantages

Pervasiveness; in most every home and carReaches specialized target audiencesReaches them at critical apertures (morning and

evening drive time)AffordabilityOffers high frequency; music can be repeated

more easily than other forms of advertisingFlexible, easy to changeGood for local tie-ins and promosMental imagery can be highly engagingHigh level of acceptance; not considered irritatingAudience less likely to switch channels when ads

come on

Television Advertising

Advantages

Pervasiveness; in most every homeHigh level of viewingReaches a mass national audience although can

be targeted by programsHigh impact: has audio, video, motion, music,

color, high drama Cost efficient

Limitations

Listener inattentiveness; may just be on in the background

Lack of visualsClutterScheduling and buying difficulties in local buysLack of control: talk show content is

unpredictable and may be critical

Limitations

Clutter—with cable there are a large number of channels

High production costsWasted reachInflexibility; can’t easily make last-minute changesIntrusiveness—some audience resistance to advertising leads to zipping and zapping

Practical Tips Broadcast Media Advantages and Limitations


Movie Advertising

Advantages

Captive audienceNo need for intrusiveness because audience can’t

do multi-tasking High impact

Product Placement

Advantages

Not as intrusiveIf product fits the story line, can be a naturalistic

demonstration or testimonyAssociation with celebritiesAssociation with glitzy movie, hopefully a well-liked film

Limitations

Audience resistance is high; hates being a captive audience

Expensive; needs high value production

Limitations

Can get lost in the storyPoor match between product and movie storylineMovie turns out to be a dud


All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall

—

broadcast media advertising principles and practices

Documents