chapter 11 presentation

Promotional StrategyMKT4230

Evaluation of Media: Television and Radio

Patricia Knowles, Ph.D.

Associate ProfessorClemson University

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The Impact of DVRs on TelevisionAlthough television is still the primary form of entertainment in most households, and the largest advertising medium, viewing habits are changing. Consumers can now watch programs when, where, and how they want… and that does not include commercials. Plus, the audience has been fractured by the large number of programs available from which to choose.

TextbookPages 363 - 365

DVRs also make it easier for content providers to push programming directly to end users, on a pay-per-view, commercial-free basis. This is essentially TV on demand, which makes it more difficult to measure viewing audiences, more difficult to develop media plans for television, and more difficult to capture and retain the attention of consumers.

Viewing habits are also being impacted by other technologies, such as video game consoles and online video streams (YouTube, Hulu).

However, the average household still watches more than 7 hours of television per day.


Television AdvantagesTelevision is unique in its ability to combine visual images, sound, motion, and color. These characteristics provide the advertiser with an opportunity to develop the most creative and imaginative advertising appeals of any medium.

• Creativity and Impact: The interaction of sight and sound offers tremendous creative flexibility and opportunities for the advertising message

• Coverage and Cost Effectiveness: TV can reach large audiences cost effectively• Captivity and Attention: Commercials impose themselves on viewers as they watch

their favorite programs and are likely to be seen unless some effort is made to avoid them

• Selectivity and Flexibility: Audiences vary by program content, broadcast time, and geographic coverage; cable television offers additional selectivity



Top 10 Network TV AdvertisersThis visual shows a list of the top ten network television advertisers from 2006.

TextbookPage 366 / Figure 11 - 1


Selectivity and FlexibilityAdvertisers are trying to turn TV advertising into a selective media. Some selectivity is possible due to variations in the composition of an audience as a result of:

• Program content• Broadcast time• Geographic coverage

TextbookPages 367

For example, Saturday morning programs cater to children and Saturday and Sunday programs target the sports-oriented male.

The Oxygen cable network, as shown in this ad, is trying to capture young, upscale women who like to try new products, as well as recommend them to others.


Television LimitationsThis visual presents the disadvantages of TV that limit its use by many advertisers.


LowSelectivity

FleetingMessage

Cost

Clutter

DistrustNegativeEvaluation

LimitedAttention

NegativeFactorsZipping

Zapping


Network vs. SpotThis visual shows the differences between network and spot/local advertisements.


May be local or “national spot” commercials

Network

Spot &Local

Purchase transactions are simplified

Affiliated stations that are linked

Commercials shown on local stations


The CW NetworkThe major television networks that currently exist in the United States: NBC, ABC, and CBS. A fourth major network is Fox, which broadcasts over a group of affiliated independent stations. The other television network in the United States is CW, which was formed in 2006 when WB and UPN merged.

TextbookPages 373 - 374 / Exhibit 11 - 5

The CW Network is co-owned by CBS/Viacom and Warner Bros., which is part of the Time Warner media conglomerate.

The CW Network targets the 18-to-49 demographic, but does not offer a prime-time schedule. It airs 15 hours of prime-time programming over six days, with only a morning cartoon block on Saturdays.

Popular shows on this network include America’s Next Top Model and Supernatural.


Test Your Knowledge_____ are shows that are sold or distributed on a station-by-station, market-by-market basis.

A. Spot broadcasts

B. Televised advertorials

C. Affiliate programs

D. Participation programs

E. Syndicated programs


Syndicated ProgramsThis chart shows how syndicated programs are sold or distributed.


Off-network syndication are “reruns”

First-run syndications are also featured

Advertiser-supported or bartered

Sold and distributed station by station

Programs sold to stations in return for air time


Top 10 Syndicated ProgramsThis chart shows the Top 10 regularly scheduled syndicated programs for the 2009-2010 season.



Methods of Buying TimeThese are the three methods of buying television advertising time:

Sponsorship

1. Advertiser assumes responsibility for the production and perhaps content

2. Sponsor has control and can capitalize on a show’s prestige

Participations

1. Participating sponsors share the cost

2. May occur regularly or sporadically

3. Advertiser doesn’t do production

4. Participants lack control over content

Spot Announcements

1. May be purchased by daypart or adjacency



TV Advertising Buying DecisionsThese are various ways a company can purchase commercial time on television and a summary of the characteristics of each.


Considerations are the geographic markets and ability to acquire airtime.National Versus Local Spot

Reach is the primary consideration but ease of purchase is important.Network Versus Spot

Method of buying affects cost, commitment, and identification.Sponsor, Participate, or Spot

Scheduling depends on reach and frequency requirements.Specific Daypart and Weeks


Common Television DaypartsThis chart shows common television dayparts:

TextbookPages 378 - 379 / Figure 11 - 3


Cable TelevisionCable television has now reached 91% of the nation’s 114.9 million households. Cable networks and programs have a dual revenue stream… monthly subscription charges and ad revenue.

Cable TV broadens programming options available to the viewer as well as the advertiser by offering specialty channels, including all-news, music, weather, and educational channels.

Many cable systems also carry superstations… independent local stations that send their signals nationally via satellite. Programming on superstations generally consists of sports, movies, and reruns of network shows.

Expanded viewing options via cable have led to audience fragmentation, which can help advertisers better target their audience.



Advertising on Cable TelevisionThese are the advantages and limitations of advertising on cable TV:


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

These are the future challenges that face cable television:


The Future of Cable


Govt. regulationsMore channels

CompetitionDBS services

New technology

Future Challenges


Test Your KnowledgeThe sole source of network television and local audience information is:

A. Arbitron Co.

B. Nielsen Media Research

C. RADAR

D. Smart-TV

E. Burke Research


Measuring the TV AudienceThese are the various ways in which an audience can be measured:


Total Audience Program Rating

Households Using TV

Share of Audience


TV Audience MeasuresThis is how program rating and share of audience numbers are calculated:

TextbookPages 386

Share of Audience

Program Rating


National Audience InformationNielsen Media Research has a national RV ratings service known as the Nielsen Television Index, which provides daily and weekly estimates of the size and composition of the national viewing audience.

TextbookPages 387

Nielsen uses a national sample of 10,000 homes, which are carefully selected be representative of the population of U.S. households. Ratings are based on the viewing patterns of the homes, which are measured using the people meter shown on this slide.

Data collected by the people meter includes when the set is turned on, which channel is viewed, when the channel is changed, when the set is off, and who is viewing. The demographic characteristics of the viewers are also in the system, and viewership can be matched to these traits.


Local Audience InformationThis is a list of the information provided by an Neilsen Station Index (NSI) report:


NSI Reports

• Viewing times• Programs watched• Audience size estimates• Demographics


Sweeps PeriodsThis chart shows how WJZ in Baltimore promotes its dominance of the sweeps ratings in various categories.

TextbookPage 38 / Exhibit 11 - 13


Developments in Audience MeasurementThese are the three developments in audience measurement:


Commercial Ratings Data (C3)

EngagementMetrics

Anywhere Media Measurement (A2/M2)


Radio and TV SimilaritiesThese are the similarities of radio and television, which are the two major forms of broadcast media that can be used for advertising.


Are time oriented media

Are sold in time segments

Have some network affiliates

Have some independents

Use the public airway

Are regulated by the F.C.C.

Are externally paced media

Are passive, low-involvement

Both Media…


Advantages of RadioThis is a list of some of the advantages that radio has as an advertising medium:

TextbookPage 391 - 395

Mental Imagery

Flexibility

Selectivity

Receptivity

Cost and Efficiency

Integrated Marketing


Radio Gives Customers a Clearer PictureThis visual shows a Radio Advertising Bureau ad that promotes the synergy between radio and newspaper advertisements. Radio can also be used in conjunction with a number of other media and events, including:

• Sales promotions• Event marketing• Cause-related marketing• Place-based/point-of-purchase promotions• Special sales• Live broadcast promotions at beaches and

sporting events

TextbookPage 395 / Exhibit 11 - 17


Buying Radio TimeThese are the various options for purchasing advertising time on the radio:


Over 100 regional/area networks

Three national networks

A multitude of syndicated programs

Network Radio

About 20% of all spots

Allows great flexibility, targeting

Purchase transaction can be difficult

SpotRadio

Nearly 80% of advertisers are local

Local CATV is becoming competitive

Local Radio


Radio Time ClassificationsThis chart shows the dayparts breakdown for radio advertising:

TextbookPage 398 / Figure 11 - 7


Test Your KnowledgeArbitron:

A. Measures local radio audiences

B. Measures listenership to webcasts

C. Provides radio stations with monthly cume ratings

D. Now owns RADAR, which is a source of national network rating numbers

E. All of the above


Audience InformationThis visual shows the major radio listener ratings providers:

TextbookPage 398 - 401

Person Estimates

Share RatingArbitron

Network audience measuresRADAR

chapter 11 presentation

Marketing

network television advertisers

syndicated programs

television advertising

cw network

station programs

hours of television

major network

morning programs