Download - Television Bureau of Advertising Spot 101 An Introduction to Planning and Buying Local Broadcast Television

Television Bureau of AdvertisingTelevision Bureau of Advertising

Spot 101An Introduction to

Planning and Buying Local Broadcast Television

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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

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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)

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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

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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

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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

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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

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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

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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


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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


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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


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?

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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).



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118

121

123

120

San Francisco

West Palm Beach

Honolulu

Ft. Myers

Stock / Bond InvestmentsIndex to the national average (100).



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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.


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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)


Coke Classic

The best 1/3 of the US indexes at 153.

Source: IRI/MRI - Based on Brand Sales (BDI)


Oreo CookiesThe best 1/3 of the US indexes at 124.

Source: IRI/MRI - Based on Brand Sales (BDI)


BMW 530The best 1/3 of the US indexes at 224.

Source: Polk Special tabulation/MRI - Based on Brand Sales (BDI)


Advertising to consumers who are more likely to buy,

based on demography and geography, can boost brand

sales.


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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...


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Broadcast reaches many more people, more frequently and at much lower cost-per-1,000 viewers.


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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.


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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.


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Tip #5: Challenge the station to offer creative options and the best priced packages.


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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


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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?



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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

Download - Television Bureau of Advertising Spot 101 An Introduction to Planning and Buying Local Broadcast Television

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