17/03/2016

1

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Chapter 11Evaluation of

Media: Television and

Radio

11-2

Learning Objectives

To examine the structure of the television and radio

industries and the role of each medium in the

advertising program

To consider the advantages and limitations of TV

and radio as advertising media

11-3

Learning Objectives

To explain how advertising time is purchased for

the broadcast media, how audiences are measured,

and how rates are determined

To consider future trends in TV and radio and how

they will influence the use of these media in

advertising

17/03/2016

2

11-4

Advantages of Television

Excellent creativity and impact

High coverage and more cost-effectiveness

High captivity and attention

Selectivity and flexibility

11-5

Limitations of Television

Costs

Lack of selectivity

Fleeting message

Clutter

•Zipping: Occurs when viewers fast-forward through commercials as they play back a previously recorded program

•Zapping: Changing channels to avoid commercials

Limited viewer attention

Distrust and negative evaluation

11-6

Network Advertising

Spreading messages by purchasing airtime from a

television network

Television network: Assembles a series of affiliates

to which it supplies programming and services

Affiliates: Allied local TV stations

Networks have affiliates throughout the nation for

complete national coverage

17/03/2016

3

11-7

Network Advertising

Advantage

Simplifies the purchase process

Disadvantages

Cost of advertising on prime time is very high

Availability of time slots

Up-front market: Buying period that occurs before the

TV season begins

Scatter market: Buying period that occurs throughout the

season

11-8

Spot and Local Advertising

Spot advertising: Commercials shown on local TV

stations

Time is negotiated and purchased directly from the

individual stations

National spot advertising: Nonnetwork

advertising done by a national advertiser

Local advertising: Airtime sold to local firms

11-9

Spot and Local Advertising

Advantages

• Offers flexibility to national advertisers

• Growth in syndication

Disadvantages

• Difficult to acquire

• Greater variations in the pricing policies and discount structure of individual stations• Station reps: Individuals who act as sales representatives for a number of

local stations in dealings with national advertisers

• Subject to more commercial clutter

17/03/2016

4

11-10

Network versus Spot

May be local or “national spot” commercials

Network

Spot &Local

Purchase transactions are simplified

Affiliated stations that are linked

Commercials shown on local stations

11-11

Syndicated Programs

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

11-12

Syndication

Syndicated programs

• Shows that are sold or distributed on a station-by-station or market-by-market basis

Types

• Off-network syndication - Reruns of network shows that are bought by individual stations

• First-run syndication - Shows produced specifically for the syndication market

• Advertiser-supported or barter syndication• Shows are sold to stations in return for a portion of the commercial time in the

show

• Offers both off-network and first-run syndicated programs

17/03/2016

5

11-13

Advantages and Disadvantages of

Syndication

Advantages

Saves money

Broadens reach for national

advertisers

Targets specific audiences

Disadvantages

Audiences are often rural

and older

Syndicators do not supply

much research information

Requires media buyers to

come up with a syndication

schedule to ensure

maximum reach

11-14

Methods of Buying 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

11-15

TV Advertising Buying Decisions

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

17/03/2016

6

11-16

Methods of Buying Time

Sponsorship: Advertiser assumes responsibility for

the production and content of the program, and the

advertising that appears within it

Allows a firm to:

Capitalize on the prestige of a high-quality program

Have more control over the shows carrying their

commercials

11-17

Methods of Buying Time

Participations: Several advertisers buying

commercial time on a particular program

Advantages

Advertiser has no long-term commitment to a program

Expenditures can be adjusted to buy spots that fit within

the budget

Provides greater reach in the media schedule

11-18

Methods of Buying Time

Disadvantages

Advertiser has little control over the placement of ads

Availability of spots can be an issue

Spot announcements - Purchased from the local

stations, appear during adjacencies

Adjacencies: Time periods adjacent to network

programs

17/03/2016

7

11-19

Selecting Time Periods and Programs

Cost of TV advertising time varies depending on

the:

Time of day

Particular program

TV time periods are divided into dayparts

Dayparts: Specific segments of a broadcast day

Advertising rates depend on the size and popularity

of dayparts

11-20

Cable Television

Delivers TV signals through fiber or coaxial wire

Cable networks and channels get revenues from ads

and subscriber fees

Superstations: Independent local stations that send

signals nationally via satellite to cable operators

Make their programs available to subscribers

Carry national advertising

11-21

Advertising on Cable Television

Has increased revenues steadily

National advertisers are turning to spot advertising

on local cable systems

Helps reach specific geographic markets

Interconnects: Number of cable systems and

networks in a geographic area are joined for

advertising purposes

17/03/2016

8

11-22

Common Television Dayparts

11-23

Advertising on Cable Television

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

11-24

Advertising on Cable Television

Advantages

Offers selectivity

Offers a chance for

narrowcasting

Narrowcasting: Reaching

very specialized markets

Low cost

Flexibility

Disadvantages

Overshadowed by major

networks

Audience fragmentation

Lacks penetration in major

markets

17/03/2016

9

11-25

Future of Cable

Challenges

Increases in the number of channels

Changes in government regulations

Competition in the programming distribution business

Reaching relevant audiences

Growth due to multiplexing

Multiplexing: Transmitting multiple channels from one network

11-26

Television Audience Measures

Size and composition measured by ratings services

• Home with at least one operable TV or monitor with the ability to deliver video

Television household

• Percentage of TV households in an area that are tuned to a specific program during a specific time period

• Ratings point: Represents 1 percent of all the television households in a particular area tuned to a specific program

Program rating

11-27

Measuring the TV Audience

Total AudienceProgram Rating

Households Using TV

Share of Audience

17/03/2016

10

11-28

Television Audience Measures

Households using television (HUT)

• Percentage of homes in a given area where TV is being watched during a specific time period

Share of audience

• Percentage of households using TV in a specified time period that are tuned to a specific program

Total audience

• Total number of homes viewing any five-minute part of a telecast

11-29

National Audience Information

Nielsen television index

• Provides daily and weekly estimates of the size and composition of the national viewing audiences

• For programs aired on the broadcast and major cable networks

People meter

• Records what is being watched and by whom in 10,000 households

11-30

National Audience Information

17/03/2016

11

11-31

Local Audience Information

Designated market areas (DMAs): Non overlapping areas used for planning, buying, and evaluating TV audiences

Include group of counties in which stations are located in a metropolitan or central area

NSI reports

Viewing times

Programs watched

Audience size estimates

Demographics

11-32

Local Audience Information

Local people meter (LPM) - Used to measure the

largest local markets

Sweeps: Viewing audiences in every local

television market are measured at least four times a

year

11-33

Developments in Audience

Measurement

Commercial ratings: Measures of the average

viewership of the commercials both live and up to

three days after the ads are played back on a DVR

Anytime anywhere media measurement (A2/M2) -

Introduction of electronic measurement in all local

markets

Addition of Internet and out-of-home measurement

in Nielsen’s People Meter sample

Development of passive measurement devices

17/03/2016

12

11-34

Developments in Audience

Measurement

Cross-platform campaign ratings: Measures the

number of people who:

Watch an ad only on television

Who view an ad online

Overlap between the two

11-35

Radio and TV SimilaritiesAre 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…

11-36

Advantages of Radio

Cost and efficiency

Receptivity

Selectivity

Flexibility

Mental imagery

Image transfer: Images of a TV commercial are

implanted into a radio spot

Integrated marketing opportunities

17/03/2016

13

11-37

Figure 11.5 - Rating of Emotional

Attributes for Radio

11-38

Limitations of Radio

Creative limitations

Fragmentation

Chaotic buying procedures

Limited research data

Limited listener attention

Competition from digital media

Clutter

11-39

Buying Radio Advertising Time

Network radio - Purchased on a network basis

using one of the national networks

Spot radio provides:

Greater flexibility in selecting markets

Individual stations

Airtime and a chance to adjust the message for local

market conditions

Local radio - Purchased from individual stations by

local companies

17/03/2016

14

11-40

Figure 11.7 - Dayparts for Radio

11-41

Audience Information

Arbitron provides:

Person estimates - Estimated number of people

listening

Rating - Percentage of listeners in the survey area

population

Share - Percentage of the total estimated listening

audience

11-42

Audience Information

Average quarter-hour (AQH) figure

• Average number of people estimated to have listened to a station for a minimum of five minutes during any quarter-hour in a time period

Cume

• Total number of different people who listened to a station for at least five minutes in a quarter-hour period within a reported daypart

Average quarter-hour rating (AQH RTG)

• Estimated number of listeners as a percentage of the survey area population

17/03/2016

15

11-43

Audience Information

Average quarter-hour share (AQH SHR)

• Percentage of the total listening audience tuned to each station

Portable People Meter (PPM)

• Wearable device that electronically tracks what consumers listen to on the radio

RADAR (Radio’s All Dimension Audience Research)

• Measurements are based on information collected throughout the year