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Evaluation of Broadcast Media Chapter Eleven

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Page 1: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Evaluation of Broadcast Media

Chapter Eleven

Page 2: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Broadcast Networks

Network

Station

Station

Station

Station

Station

High dollarNetwork commercial

High dollarEntertainment,News, sports

Local commercial

$$$

$$$

Page 3: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Network show :08

CommercialBreak :04

Network sells 3:00For $1.5 million toNational advertisers

LocalStation sells1:00 toLocal AdvertisersFor $5,000

Page 4: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Network

Cable Networks

Cable System Cable SystemCable SystemCable System

Page 5: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Network

Cable Networks

Cable System Cable SystemCable SystemCable System

$$

$$$

$$

$$

Page 6: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Network

Cable Networks

Cable System Cable SystemCable SystemCable System

High dollarNetwork commercial

$$$

Local commercial

$$

$

Page 7: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Syndicated Television

Page 8: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Syndicated Television

Producer

Station

Station

Station

Station

Station

High dollarNetwork commercial

High dollarEntertainment,News, sports--Oprah--Jeopardy--Judge Judy

Local commercial

$$$

$$$

Page 9: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Syndicated Television

Producer

Station

Station

Station

Station

Station High dollarEntertainment,News, sports--Oprah--Jeopardy--Judge Judy

$

Cash

$

$$

$

Page 10: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Syndicated Television

Producer

Station

Station

Station

Station

Station High dollarEntertainment,News, sports--Oprah--Jeopardy--Judge Judy

CashBarter

Free

Page 11: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Syndicated Television

Producer

Station

Station

Station

Station

Station High dollarEntertainment,News, sports--Oprah--Jeopardy--Judge Judy

Barter

Page 12: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Television Revenues

• Networks– Network provides high-cost content.– Local stations provide local audiences.– Networks charge high dollars for their commercials.– Local stations get revenue by charging for local time they are

allotted.

• Cable– Advertising revenue: network and local.– Subscription revenues from cable systems to networks.

• Barter– Cash.– Barter.

Page 13: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Television Advertising Advantages, Disadvantages

• Advantages

--Color, Sound, Motion.

--Mass audiences.

--Presence, prestige, and influence.

--Intrusiveness.

--Repetition.

--Some flexibility.

• Disadvantages

--High cost.

--Perception of high cost.

--Ad clutter.

--Limited attention

--Recording, skipping.

--Distrust

Page 14: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Television Advertising Procedures

• Concept, copy.

• Storyboard.

• Preproduction.

--Casting, crew.

--Locations, props, sets.

Page 15: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Television Advertising Procedures (continued)

• Production, post-production.

--Shooting.

--Audio.

--Effects, graphics.

--Editing.

--Dubbing.

--Delivery to stations, networks.

Page 16: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Top 10 Network TV Advertisers, 2004

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

1. Proctor & Gamble $833.6*

2. General Motors 753.5

3. Johnson & Johnson 521.6

4. Ford Motor Co. 497.6

5. Time Warner 451.9

6. Pfizer 417.8

7. Walt Disney Co. 417.6

8. SBC Communications 396.2

9. PepsiCo 379.5

10. DaimlerChrysler 359.4

CompanyCompany $ Amount$ Amount

* millions of dollars

Page 17: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

There is a genuine need for a medium with high creative potential to exert a strong impact.

There is a genuine need for a medium with high creative potential to exert a strong impact.

The market is large enough and easily reachable through a specific network, station, or program.

The market is large enough and easily reachable through a specific network, station, or program.

The media budget is sufficient to generate and sustain the number of exposures needed.

The media budget is sufficient to generate and sustain the number of exposures needed.

The budget is large enough to produce high quality commercials.

The budget is large enough to produce high quality commercials.

The market is large enough and easily reachable through a specific network, station, or program.

The market is large enough and easily reachable through a specific network, station, or program.

The media budget is sufficient to generate and sustain the number of exposures needed.

The media budget is sufficient to generate and sustain the number of exposures needed.

The budget is large enough to produce high quality commercials.

The budget is large enough to produce high quality commercials.

TV Advertising Works Best When…

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 18: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

SponsorshipSponsorship

1. Advertiser assumes responsibility for the production and perhaps content

2. Sponsor has control and can capitalize on the prestige associated with a show

1. Advertiser assumes responsibility for the production and perhaps content

2. Sponsor has control and can capitalize on the prestige associated with a show

ParticipationsParticipations

1. Participating sponsors share the cost

2. May participate regularly or sporadically

3. Advertiser isn’t responsible for production

4. Participants lack control over content

1. Participating sponsors share the cost

2. May participate regularly or sporadically

3. Advertiser isn’t responsible for production

4. Participants lack control over content

Spot Announcements

Spot Announcements

1. May be purchased by daypart or adjacency

1. May be purchased by daypart or adjacency

ParticipationsParticipationsSponsorshipSponsorship

Methods of Buying Time

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 19: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Common Television Dayparts

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Prime-Time Access

Late News

Morning

Early Fringe Late Fringe

Prime Time

Daytime

Late Night

PM

121

2

3

4

56

10

11

9

7

8

AM

121

2

3

4

56

10

11

9

7

8

Page 20: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Television HouseholdsTelevision

Households

Program Rating

Program Rating

Households Using TV

Households Using TV

Share of AudienceShare of Audience

Audience MeasuresAudience Measures

Households Using TV

Households Using TV

Program Rating

Program Rating

Television HouseholdsTelevision

Households

Audience MeasuresAudience Measures

Measuring TV Audiences

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 21: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

TV Audience Measures

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

HH tuned to show

U.S. HH using TVShare =

Share of Audience

HH tuned to show

Total U.S. HHRating =

Program Rating

HH tuned to show

Total U.S. HHRating =

Program Rating

Page 22: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

TV Audience Measures

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

HH tuned to show

U.S. HH using TVShare =

Share of Audience

HH tuned to show

Total U.S. HHRating =

Program Rating

HH tuned to show

Total U.S. HHRating =

Super Bowl XLII

Page 23: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

TV Audience Measures

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

HH tuned to show

U.S. HH using TVShare =

Share of Audience

HH tuned to show

Total U.S. HHRating =

Program Rating

97.5 million viewers

Total U.S. HHRating =

Super Bowl XLII

Page 24: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

TV Audience Measures

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

HH tuned to show

U.S. HH using TVShare =

Share of Audience

HH tuned to show

Total U.S. HHRating =

Program Rating

97.5 million viewers

303 million TV households

Rating =

Super Bowl XLII

Page 25: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

TV Audience Measures

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

HH tuned to show

U.S. HH using TVShare =

Share of Audience

HH tuned to show

Total U.S. HHRating =

Program Rating

97.5 million viewers

303 million TV households

Rating = 32

Super Bowl XLII

Page 26: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

TV Audience Measures

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

97.5 million viewers

U.S. HH using TVShare =

Share of Audience

HH tuned to show

Total U.S. HHRating =

Program Rating

97.5 million viewers

303 million TV households

Rating = 32

Super Bowl XLII

Page 27: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

TV Audience Measures

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

97.5 million viewers

221.6 TVs in useShare =

Share of Audience

HH tuned to show

Total U.S. HHRating =

Program Rating

97.5 million viewers

303 million TV households

Rating = 32

Super Bowl XLII

Page 28: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

TV Audience Measures

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

97.5 million viewers

221.6 TVs in useShare =44

Share of Audience

HH tuned to show

Total U.S. HHRating =

Program Rating

97.5 million viewers

303 million TV households

Rating = 32

Super Bowl XLII

Page 29: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Super Bowl XLII

• 32 rating, 44 share

• 32% of the country watched the game

• 44% of all televisions that were on were tuned to the game.

Page 30: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Are time oriented mediaAre time oriented media

Are sold in time segmentsAre sold in time segments

Have some network affiliatesHave some network affiliates

Have some independentsHave some independents

Use the public airwayUse the public airway

Are regulated by the F.C.C.Are regulated by the F.C.C.

Are externally paced mediaAre externally paced media

Are passive, low-involvementAre passive, low-involvement

Are externally paced mediaAre externally paced media

Are regulated by the F.C.C.Are regulated by the F.C.C.

Use the public airwayUse the public airway

Have some independentsHave some independents

Have some network affiliatesHave some network affiliates

Are sold in time segmentsAre sold in time segments

Are time oriented mediaAre time oriented media

Radio and TV Similarities

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Both Media…

Both Media…

Page 31: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Is more limited communicationIs more limited communication

Costs much less to produce

Costs much less to produce

Costs much less to purchase

Costs much less to purchase

Offers only an audio messageOffers only an audio message

Costs much less to purchase

Costs much less to purchase

Costs much less to produce

Costs much less to produce

Is more limited communicationIs more limited communication

Offers only an audio messageOffers only an audio message

Radio Differs from TV

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Has less status and prestige

Has less status and prestige

Page 32: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Radio Formats by Age Group

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

0 10 20 30 40 50 60 70

Contemporary hitsUrban

AlternativeAdult contemporary

HispanicRock

CountryOldies

News/talk/infoReligion

Smooth jazzClassical

18-24

25-34

34-44

45-54

Page 33: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Radio Formats by Age Group

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

0 10 20 30 40 50 60 70

Contemporary hitsUrban

AlternativeAdult contemporary

HispanicRock

CountryOldies

News/talk/infoReligion

Smooth jazzClassical

18-24

25-34

34-44

45-54

Top format

Page 34: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Radio Formats by Age Group

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

0 10 20 30 40 50 60 70

Contemporary hitsUrban

AlternativeAdult contemporary

HispanicRock

CountryOldies

News/talk/infoReligion

Smooth jazzClassical

18-24

25-34

34-44

45-54

Top format18-34

Page 35: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Radio Formats by Age Group

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

0 10 20 30 40 50 60 70

Contemporary hitsUrban

AlternativeAdult contemporary

HispanicRock

CountryOldies

News/talk/infoReligion

Smooth jazzClassical

18-24

25-34

34-44

45-54

Very poor18-34

Page 36: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Audience FragmentationAudience Fragmentation

Limited Research DataLimited Research Data

Creative LimitationsCreative Limitations

Chaotic BuyingChaotic Buying

Limited Listener AttentionLimited Listener Attention

Cost and EfficiencyCost and Efficiency

SelectivitySelectivity

FlexibilityFlexibility

Mental ImageryMental Imagery

Integrated MarketingIntegrated Marketing

ClutterClutter

Limited Listener AttentionLimited Listener Attention

Limited Research DataLimited Research Data

Chaotic BuyingChaotic Buying

Audience FragmentationAudience Fragmentation

Creative LimitationsCreative Limitations

Integrated MarketingIntegrated Marketing

Mental ImageryMental Imagery

FlexibilityFlexibility

SelectivitySelectivity

Cost and EfficiencyCost and Efficiency

Advantages and Limitations of Radio

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

AdvantagesAdvantages DisadvantagesDisadvantages

Page 37: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Radio Ads Can Enhance TV Campaigns

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 38: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Over 100 regional/area networksOver 100 regional/area networksOver 100 regional/area networksOver 100 regional/area networks

Three national networksThree national networks

A multitude of syndicated programsA multitude of syndicated programs

About 20% of all spotsAbout 20% of all spots

Allows great flexibility, targetingAllows great flexibility, targeting

Purchase transaction can be difficultPurchase transaction can be difficult

Nearly 80% of advertisers are localNearly 80% of advertisers are local

Local CATV is becoming competitiveLocal CATV is becoming competitive

Nearly 80% of advertisers are localNearly 80% of advertisers are local

Purchase transaction can be difficultPurchase transaction can be difficult

Allows great flexibility, targetingAllows great flexibility, targeting

About 20% of all spotsAbout 20% of all spots

A multitude of syndicated programsA multitude of syndicated programs

Three national networksThree national networks

Buying Radio Time

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Network Radio

Network Radio

National Spot

National Spot

Local RadioLocal Radio

Page 39: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Dayparts for Radio

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Nighttime

Afternoon/Evening Drive Time

Morning Drive Time

Daytime All Night

PM

121

2

3

4

56

10

11

9

7

8

AM

121

2

3

4

56

10

11

9

7

8

Page 40: Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports

Person estimatesPerson

estimates

ShareShare RatingRating

Diary interviewsDiary interviews

Person estimatesPerson

estimates

ShareShare RatingRating

Audience Information

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

ArbitronArbitron

RADARRADAR