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Chapter 14 Using Electronic Media: Television and Radio William F. Arens Michael F. Weigold Christian Arens McGraw-Hill/IrwinCopyright © 2013 by The McGraw-Hill.

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Presentation on theme: "Chapter 14 Using Electronic Media: Television and Radio William F. Arens Michael F. Weigold Christian Arens McGraw-Hill/IrwinCopyright © 2013 by The McGraw-Hill."— Presentation transcript:

1 Chapter 14 Using Electronic Media: Television and Radio William F. Arens Michael F. Weigold Christian Arens McGraw-Hill/IrwinCopyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2 14-2 Chapter Overview Factors to evaluate when considering radio & television in the creative mix

3 14-3 Chapter Objectives Describe pros & cons of broadcast TV as an ad medium Analyze pros and cons of using radio in the creative mix Evaluate the available types of television advertising Explain the process of buying cable and broadcast TV time Describe the process of TV audience measurement Evaluate cable TV as an advertising medium and explain how it differs from broadcast TV Discuss factors to consider when buying TV time Discuss factors to consider when buying radio time

4 14-4 TV Viewers Heaviest viewers Middle income, high school grads and families Increased viewing hours Average American spends 4 hours/day watching TV World wide, older women watch most Average 36 hours/week Broadcast vs. cable Homes with cable watch less broadcast TV Many channels causes audience fragmentation DVD viewing has increased

5 14-5 Broadcast vs. Cable Viewer Characteristics

6 14-6 TV Audience Advertising Beliefs How adult viewers rate various media

7 14-7 Compete for Ads The Medium of Television Broadcast TVCable TV VHF and UHF Independent Stations Network Affiliates Many Stations, some PPV Special Interest Stations

8 14-8 Q. 1. What are the various TV audience trends?

9 14-9 TV Audience Trends Demographics DVD Rental Cable households Viewing patterns TV viewing hours Audience fragmentation

10 14-10 Major Cable Networks

11 14-11 Q. 2. What are the pros and cons of TV advertising?

12 14-12 The Medium of Television ProsCons Mass coverage Relatively low cost Some selectivity High production cost High airtime cost Limited selectivity Impact Creativity Prestige Brevity Clutter Zipping and zapping Social dominance

13 14-13 Q. 3. What are the pros and cons of Cable TV advertising?

14 14-14 Cable TV Pros and Cons ProsCons Selectivity Audience demographics Low cost Limited reach Fragmentation Quality Flexibility Testability Zipping and zapping

15 14-15 Digital TV Advantages Improved picture and soundIncreased number of channelsInteractive video and dataEfficiency through multicasting

16 14-16 Use of TV in IMC TV Niche medium Cost effective Imparts brand meaning Leverage Tool

17 14-17 Q. 4. How do advertisers buy time on TV?

18 14-18 Types of TV Advertising Sponsorship Spot ads Direct response Syndication Local – LaVerge Beverage DepotLaVerge Beverage Depot

19 14-19 TV Ad Spending (Billions) Network TV dominates, but is losing ground

20 14-20 Most Expensive 30-Second Spots

21 Types of TV Advertising Prime times most expensive 30-second spots ker.com/2006_2007 _ad_rates.htm How much for a 30- second spot? Insert ex. 16-7, p. 517 Ad cost per 30-sec spot Position = 2.9horiz., 1.5 vertical Size = 4.6 TALL Resolution: 300 dpi

22 14-22 TV vs. Magazine Cost Comparison TV Cost of Ad = $700,00.00 Reach = 4,000,000 Cost Per thousand (CPM) = 700,000/4,000,000/1000 Cost Per thousand (CPM) = $ Magazine Cost of Ad = $100,00.00 Reach = 200,000 Cost Per thousand (CPM) = 100,000/200,000/1000 Cost Per thousand (CPM) = $500.00

23 14-23 Network & Syndication Distribution

24 14-24 Why Direct Response Works Consumers pay attention; respond immediately Competitive advantage for brand managers Sufficient time for brand differentiation Results measurable and accountable Ad campaign can pay for itself Combines power of advertising, direct response, and sales promotion

25 14-25 Defining Television Markets DMA- designated market area for local stations Columbus, Georgia designated market area

26 14-26 Q. 5. How do advertisers measure their audience?

27 14-27 TV Audience Measurement Dayparts Rating Services Defining TV Markets Audience Measures Nielsen & Others Cable Ratings

28 14-28 TV Audience Measurement Dayparts Rating Services Defining TV Markets Audience Measures Nielsen & Others Cable Ratings Designated Market Areas

29 14-29 Designated Market Area Columbus, Georgia designated market area

30 14-30 TV Audience Measurement Daytime9 a.m. – 4 p.m. Early Fringe4 – 5:30 p.m.. Early News5 or 5:30 – 7:30 p.m. Access7:30 – 8 p.m. Prime Time8 – 11 p.m. Late News11 – 11:30 p.m. Late Fringe11:30 – 1 a.m. Dayparts Rating Services Defining TV Markets Audience Measures Nielsen & Others Cable Ratings Designated Market Areas

31 14-31 TV Audience Measurement Dayparts Rating Services Defining TV Markets Audience Measures Nielsen & Others Cable Ratings Designated Market Areas TV Households Households Using TV Program Rating Audience Share Total TVHH in area TVHH tuned to program =Rating

32 14-32 Defining Television Markets Dayparts

33 14-33 TV Audience Measurement Audience Measures TV Households TVHH Households Using TV HUT Program Rating Audience Share Total TVHH in area TVHH tuned to program HUT # of viewers

34 14-34 Buying TV Time Cost per Point =CPP Rating Cost Cost per Thousand Thousands of People =CPM Cost Gross Rating Points Reach (avg rating) × Frequency =GRP

35 14-35 Buying TV Time 2. Analyze program efficiency 3. Negotiate price 1. Determine program availability 5. Sign broadcast contracts 6. Review performance affidavits 4. Determine reach and frequency

36 14-36 The Medium of Radio Who uses radio? 93% of U.S adults listen each week 72% of U.S. adults listen every day Average time is 2.5 hours per day Radios reach exceeds other media

37 14-37 Use of Radio in IMC Involves people Establishes intimate relationship Favors integrated marketing Target demographic group Maintain strategic consistency Stretch media dollars

38 14-38 Most Popular Program Formats

39 14-39 Q. 6. What are the pros and cons of Radio advertising?

40 14-40 Pros and Cons of Radio Ads Pros Cons Reach & frequency Selectivity Cost efficiency Limitations of sound Segmented audiences Short-lived, half heard Testability Timeliness & immediacy Clutter Local relevance Creative flexibility

41 14-41 Mini-network Programming Each network targets a specific demographic group

42 14-42 Q. 7. How do Radio advertisers buy time?

43 14-43 Buying Radio Time LocalNetworkSpot Radio stations can increase market share with special programming

44 14-44 Key Radio Terms Morning drive6 a.m. – 10 a.m. Daytime10 p.m. – 3 p.m. Afternoon drive3 p.m. – 7 p.m. Nighttime7 p.m. – midnight All nightMidnight – 6 a.m. Dayparts Cumes Average quarter- hour audiences

45 14-45 Ratings Based on Dayparts Gross Rating Points (GRP) Average Quarter- Hour (AQH) Total Audience Plan (TAP) Run-of-Station (ROS) AQH Rating Population = AQH Persons × 100 GRPAQH Rating × No. of Spots= Cume Estimates Cume Rating= Population Reach Potential × 100

46 14-46 Satellite Radio Sirius & XM are major players Over 16 million listeners Many program choices Exclusive programming

47 14-47 Preparing a Radio Schedule 1. ID stations with greatest concentration (cume) of target audience 2. ID stations whose format offers highest concentration of buyers 3. Determine which dayparts offer the most potential buyers 4. Construct schedule with strong mix of best times 5. Assess proposed buy in terms of reach and frequency 6. Determine cost/1000 target people 7. Negotiate and place the buy


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