2 Chapter OverviewFactors to evaluate when considering radio & television in the creative mix
3 Chapter ObjectivesDescribe pros & cons of broadcast TV as an ad mediumEvaluate cable TV as an advertising medium and explain how it differs from broadcast TVExplain the process of buying cable and broadcast TV timeEvaluate the available types of television advertisingDescribe the process of TV audience measurementDiscuss factors to consider when buying TV timeAnalyze pros and cons of using radio in the creative mixDiscuss factors to consider when buying radio time
4 TV ViewersHeaviest viewers Middle income, high school grads and familiesIncreased viewing hours Average American spends 4 hours/day watching TVWorld wide, older women watch most Average 36 hours/weekBroadcast vs. cable Homes with cable watch less broadcast TVMany channels causes audience fragmentationDVD viewing has increased
11 Q. 2. What are the pros and cons of TV advertising?
12 The Medium of Television ProsConsMass coverageHigh production costRelatively low costHigh airtime costSome selectivityLimited selectivityImpactBrevityCreativityClutterPrestigeZipping and zappingSocial dominance
13 Q. 3. What are the pros and cons of Cable TV advertising?
14 Cable TV Pros and Cons Pros Cons Selectivity Limited reach Audience demographicsFragmentationLow costQualityFlexibilityZipping and zappingTestability
15 Digital TV Advantages Improved picture and sound Increased number of channelsInteractive video and dataEfficiency through multicasting
16 TV Use of TV in IMC Niche medium Cost effective Leverage Tool Imparts brand meaningLeverage Tool
21 Types of TV Advertising Prime time’s most expensive 30-second spotsHow much for a 30-second spot?Insert ex. 16-7, p. 517Ad cost per 30-sec spotPosition = 2.9”horiz., 1.5” verticalSize = 4.6” TALLResolution: 300 dpi
22 TV vs. Magazine Cost Comparison Cost of Ad = $700,00.00Reach = 4,000,000Cost Per thousand (CPM) = 700,000/4,000,000/1000Cost Per thousand (CPM) = $175.00MagazineCost of Ad = $100,00.00Reach = 200,000Cost Per thousand (CPM) = 100,000/200,000/1000Cost Per thousand (CPM) = $500.00
24 Why Direct Response Works Consumers pay attention; respond immediatelyCompetitive advantage for brand managersSufficient time for brand differentiationResults measurable and accountableAd campaign can pay for itselfCombines power of advertising, direct response, and sales promotion
25 Defining Television Markets DMA- designated market area for local stationsColumbus, Georgia designated market area
26 Q. 5. How do advertisers measure their audience?
27 TV Audience Measurement Rating ServicesDefining TV MarketsDaypartsAudience MeasuresNielsen & OthersCable Ratings
28 TV Audience Measurement Rating ServicesDefining TV MarketsDaypartsAudience MeasuresNielsen & OthersDesignated Market AreasCable Ratings
29 Designated Market Area Columbus, Georgia designated market area
31 TV Audience Measurement Rating ServicesDefining TV MarketsDaypartsAudience MeasuresNielsen & OthersDesignated Market AreasTV HouseholdsCable RatingsHouseholds Using TVTotal TVHH in areaTVHH tuned to program=RatingProgram RatingAudience Share
39 Q. 6. What are the pros and cons of Radio advertising?
40 Pros and Cons of Radio Ads Reach & frequencyLimitations of soundSelectivitySegmented audiencesCost efficiencyShort-lived, half heardTestabilityClutterTimeliness & immediacyLocal relevanceCreative flexibility
41 Mini-network Programming Each network targets a specific demographic group
45 Ratings Based on Dayparts Run-of-Station (ROS)Total Audience Plan (TAP)Average Quarter-Hour (AQH)AQH RatingPopulation=AQH Persons × 100Gross Rating Points (GRP)GRPAQH Rating × No. of Spots=Cume EstimatesCume Rating=PopulationReach Potential × 100
46 Satellite Radio Sirius & XM are major players Over 16 million listenersMany program choicesExclusive programming
47 Preparing a Radio Schedule ID stations with greatest concentration (cume) of target audienceID stations whose format offers highest concentration of buyersDetermine which dayparts offer the most potential buyersConstruct schedule with strong mix of best timesAssess proposed buy in terms of reach and frequencyDetermine cost/1000 target peopleNegotiate and place the buy