Arens|Schaefer|Weigold Chapter Eleven Broadcast, Cable, and Satellite Media: Television and Radio Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Learning Objectives Describe the advantages and disadvantages of broadcast television as an advertising medium Discuss the various options for advertising on television Explain how to measure television audiences and select the best programs to buy
Learning Objectives Describe the advantages and disadvantages of radio as an advertising medium Review the options for advertising on radio and how radio audiences are measured
Pros and Cons of Broadcast TV Advertising Advantages Mass coverage Low cost per exposure Some selectivity Impact Creativity Prestige Social dominance Disadvantages High production cost High airtime cost Limited selectivity Brevity Clutter Zipping and zapping
Types of TV Advertising Network advertising Networks, sponsorship, and participation Spot announcement Syndication Inventory, off-network, first-run, and barter Program-length advertisement (PLA)
TV Audience Measurement Rating services and sweeps Cable ratings Defining television markets and dayparts Audience measurements TV households, households using TV, program rating, audience share, total audience, and audience composition Gross rating points (GRPs)
Buying Television Time Selecting programs for buys Cost per rating point (CPP Cost per thousand (CPM) Ways to negotiate lower rates Run-of-schedule positioning Preemption rate Affidavit of performance Makegoods
Radio Programming and audiences FM stations have better sound, more program variety, and fewer commercials AM stations have more news, talk, or sports programs Stations have a specific programming format that appeals to a demographic Programming formats: Genre of music or other programming style that characterizes and differentiates radio stations from each other
Types of Radio Advertising Network radio Spot radio Local time
Buying Radio Time Radio day is divided into five dayparts 6 a.m. to 10 a.m. - Morning drive 10 a.m. to 3 p.m. - Daytime 3 p.m. to 7 p.m. - Afternoon (or evening) drive 7 p.m. till midnight - Nighttime Midnight to 6 a.m. - All night
Buying Radio Time Heaviest radio use occurs during drive times Ways to fix rates Based on the daypart chosen Run-of-station (ROS) Total audience plan (TAP) Average quarter-hour audience (AQH persons
Average Quarter-Hour Audience Average quarter-hour persons estimate expressed as a percentage of the total market population Average quarter-hour rating Station’s audience expressed as a percentage of the total radio listening audience in the area Average quarter-hour share Number of people in the audience multiplied by the number of times an advertisement is delivered to that audience Gross impressions Gross impressions expressed as a percentage of a particular market’s population Gross rating points
Advantages and Disadvantages of Radio Advertising Reach and frequency Selectivity Cost-efficiency Timeliness Immediacy Local relevance Creative flexibility Disadvantages Limitations of sound Segmented audiences Short-lived and half-heard commercials Clutter
Cume Estimates Cume persons Cume rating Total number of different people listening to a radio station for at least one 15-minute segment over the course of a given week, day, or daypart Cume persons Estimated number of cume persons expressed as a percentage of the total market population Cume rating