Chapter 8 Using Television Kleppner’s Advertising Procedure, 18e Lane * King * Reichart

Learning Objectives Understand the diversified nature of the television industry. Describe the multiple roles of television as an advertising medium. Discuss the changing position of network television. Describe syndicated rating services and television research methodologies. Identify the various segments of television viewing. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Pros of Using Television 99% of all U.S. households have television. TV’s combination of color, sound, and motion offer creative flexibility. Television is very efficient for large advertisers. Digital television will create new opportunities for advertising and programming. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 8.1 Creative Flexibility for Product Messages Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Cons of Using Television The television message is short-lived and easily forgotten without expensive repetition. The television audience is fragmented and skewed to lower income consumers. Shorter spots have contributed to commercial clutter. Channel surfing and recording have decreased the amount of time spent viewing commercials. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Television Bureau of Advertising Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Federal Communications Commission The FCC is the federal authority empowered to license radio and television stations and to assign wavelengths to stations “in the public interest.” Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Limitations of Television Cost: CPM for television still suggests medium can be cost-efficient compared to print Clutter: Commercials account for more than 80% of nonprogram material Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Rating Point A rating point is the basic measure of television audience; it is the percentage of television households in the market a television station reaches with a program. Rating = program audience /total TV households Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Gross Rating Points Gross rating points illustrate the weight of a schedule in terms of the total ratings for all spots bought. Each rating point represents 1% of the universe being measured for the market. GRPs are a function of reach and frequency. They are calculated by multiplying insertions by the rating. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 8.3 GRPs Measure Weight of a Schedule Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 8.4 Cost Per Point and Television Cost Efficiency Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Share Share of audience is the percentage of households using television tuned to a particular program. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 8.5 Ad Spending by Type of Television Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 8.7 Historical Ratings Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Network Television Networks are comprised of local stations that contract to carry network programming. Networks sell national advertising on the basis of station clearance. Compensation is a system whereby networks share advertising revenues with affiliates in return for using local station time for programs. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Advertising Criteria for Network Television Demographics CPM Demand Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 8.8 Top Network Television Advertisers Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Nuances in Television Availability (avails) of spot inventory are rationed so prime commercial spots are packaged with less popular spots Upfront buying refers to the season in which most prime-time spots are bought Scatter plan buys follow the up-front season and refer to quarterly buys throughout the year Make-goods are concessions to advertisers for a failure to achieve a guaranteed rating level Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Reasons to Buy Spot To allow network advertisers to provide additional GRPs in the markets with greatest sales potential To provide businesses with less than national distribution a means of avoiding waste circulation incurred by network television To allow network advertisers to control for uneven network ratings on a market-by-market basis To support local retailers Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 8.10 Top Spot Television Advertisers Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Dayparts Morning, 7:00-9:00am Monday-Friday Daytime, 9:00am-4:30pm Monday-Friday Early fringe, 4:30-7:30pm Monday-Friday Prime-time access, 7:30-8:00pm Monday-Saturday Prime time, 8:00-11:00pm Monday-Saturday, 7:00-11:00pm Sunday Late news, 11:00-11:30pm Monday-Friday Late fringe, 11:30pm-1:00am Monday-Friday Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Local Television Advertising Preemption rates Special features Run of schedule (ROS) Package rates Product protection Schedule rotation Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Television Syndication Syndication is the sale of television programming on a station-by-station, market-by-market basis. Syndicated shows are sold on an advertiser-supported or barter basis. Syndicated shows may be off-network syndication or first-run programs. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Need for Programming The number of television stations means that there is a strong need for program content, like that offered by syndicated programs. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 8.12 Top Syndicated Television Advertisers Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 8.13 Top Cable Advertisers Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Cable’s Success Factor: First-Run Programming Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Reasons for Cable’s Attractiveness to Advertisers Ability to target audiences Low cost Strong summer season Local and spot options Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Cable Operators Can Insert Commercials Such as This One into Their Local Systems Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Time-Shift Viewing Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 8.15 Top 10 Brands Appearing in a TV Program Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 8.15 Top 10 TV Programs Using Product Placement Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Nielsen Media Research is the primary supplier of syndicated television ratings. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Nielsen’s People Meter Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Nielsen Rating System: Areas of Concern Sweeps weeks Diaries Exposure value Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

TVQ Measures Show Popularity Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

For Discussion What has changed most for network television advertising over the last 25 years? Compare and contrast syndication and spot buying. What is the upfront buying season like? Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall