Evaluation of Broadcast Media Chapter Eleven

Broadcast Networks Network Station High dollar Network commercial High dollar Entertainment, News, sports Local commercial $ $ $ $ $ $

Network show :08 Commercial Break :04 Network sells 3:00 For $1.5 million to National advertisers Local Station sells 1:00 to Local Advertisers For $5,000

Network Cable Networks Cable System

Network Cable Networks Cable System $ $ $ $ $ $$ $ $

Network Cable Networks Cable System High dollar Network commercial $ $ $ Local commercial $ $ $

Syndicated Television

Producer Station High dollar Network commercial High dollar Entertainment, News, sports --Oprah --Jeopardy --Judge Judy Local commercial $ $ $ $ $ $

Syndicated Television Producer Station High dollar Entertainment, News, sports --Oprah --Jeopardy --Judge Judy $ Cash $ $ $ $

Syndicated Television Producer Station High dollar Entertainment, News, sports --Oprah --Jeopardy --Judge Judy CashBarter Free

Syndicated Television Producer Station High dollar Entertainment, News, sports --Oprah --Jeopardy --Judge Judy Barter

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.

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

Television Advertising Procedures Concept, copy. Storyboard. Preproduction. --Casting, crew. --Locations, props, sets.

Television Advertising Procedures (continued) Production, post-production. --Shooting. --Audio. --Effects, graphics. --Editing. --Dubbing. --Delivery to stations, networks.

Top 10 Network TV Advertisers, 2004 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1.Proctor & Gamble$833.6* 2.General Motors Johnson & Johnson Ford Motor Co Time Warner Pfizer Walt Disney Co SBC Communications PepsiCo DaimlerChrysler359.4 Company $ Amount * millions of dollars

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 media budget is sufficient to generate and sustain the number of exposures needed. 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 media budget is sufficient to generate and sustain the number of exposures needed. The budget is large enough to produce high quality commercials. TV Advertising Works Best When… © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Sponsorship 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 Participations 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 1. May be purchased by daypart or adjacency Participations Sponsorship Methods of Buying Time © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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 AM

Television Households Program Rating Households Using TV Share of Audience Audience Measures Households Using TV Program Rating Television Households Audience Measures Measuring TV Audiences © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

TV Audience Measures © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin HH tuned to show U.S. HH using TV Share = Share of Audience HH tuned to show Total U.S. HH Rating = Program Rating HH tuned to show Total U.S. HH Rating = Program Rating

TV Audience Measures © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin HH tuned to show U.S. HH using TV Share = Share of Audience HH tuned to show Total U.S. HH Rating = Program Rating HH tuned to show Total U.S. HH Rating = Super Bowl XLII

TV Audience Measures © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin HH tuned to show U.S. HH using TV Share = Share of Audience HH tuned to show Total U.S. HH Rating = Program Rating 97.5 million viewers Total U.S. HH Rating = Super Bowl XLII

TV Audience Measures © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin HH tuned to show U.S. HH using TV Share = Share of Audience HH tuned to show Total U.S. HH Rating = Program Rating 97.5 million viewers 303 million TV households Rating = Super Bowl XLII

TV Audience Measures © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin HH tuned to show U.S. HH using TV Share = Share of Audience HH tuned to show Total U.S. HH Rating = Program Rating 97.5 million viewers 303 million TV households Rating = 32 Super Bowl XLII

TV Audience Measures © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 97.5 million viewers U.S. HH using TV Share = Share of Audience HH tuned to show Total U.S. HH Rating = Program Rating 97.5 million viewers 303 million TV households Rating = 32 Super Bowl XLII

TV Audience Measures © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 97.5 million viewers TVs in use Share = Share of Audience HH tuned to show Total U.S. HH Rating = Program Rating 97.5 million viewers 303 million TV households Rating = 32 Super Bowl XLII

TV Audience Measures © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 97.5 million viewers TVs in use Share = 44 Share of Audience HH tuned to show Total U.S. HH Rating = Program Rating 97.5 million viewers 303 million TV households Rating = 32 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.

Are 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 Are externally paced media Are regulated by the F.C.C. Use the public airway Have some independents Have some network affiliates Are sold in time segments Are time oriented media Radio and TV Similarities © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Both Media…

Is more limited communication Costs much less to produce Costs much less to purchase Offers only an audio message Costs much less to purchase Costs much less to produce Is more limited communication Offers only an audio message Radio Differs from TV © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Has less status and prestige

Radio Formats by Age Group © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Radio Formats by Age Group © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Top format

Radio Formats by Age Group © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Top format 18-34

Radio Formats by Age Group © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Very poor 18-34

Audience Fragmentation Limited Research Data Creative Limitations Chaotic Buying Limited Listener Attention Cost and Efficiency Selectivity Flexibility Mental Imagery Integrated Marketing Clutter Limited Listener Attention Limited Research Data Chaotic Buying Audience Fragmentation Creative Limitations Integrated Marketing Mental Imagery Flexibility Selectivity Cost and Efficiency Advantages and Limitations of Radio © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin AdvantagesDisadvantages

Radio Ads Can Enhance TV Campaigns © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Over 100 regional/area networks Three national networks A multitude of syndicated programs About 20% of all spots Allows great flexibility, targeting Purchase transaction can be difficult Nearly 80% of advertisers are local Local CATV is becoming competitive Nearly 80% of advertisers are local Purchase transaction can be difficult Allows great flexibility, targeting About 20% of all spots A multitude of syndicated programs Three national networks Buying Radio Time © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Network Radio National Spot Local Radio

Dayparts for Radio © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Nighttime Afternoon/Evening Drive Time Morning Drive Time Daytime All Night PM AM

Person estimates Share Rating Diary interviews Person estimates Share Rating Audience Information © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Arbitron RADAR