Evaluation of Broadcast Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Selectivity and Flexibility Captivity and Attention Coverage and Cost Effectiveness Creativity and Impact Captivity and Attention Coverage and Cost Effectiveness Creativity and Impact Television Advantages © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

TV Commercials on Programs Such As the Super Bowl Reach Large Audiences © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Zipping Low Selectivity Low Selectivity Fleeting Message Fleeting Message Cost Clutter Distrust Negative Evaluation Negative Evaluation Negative Evaluation Negative Evaluation Distrust Low Selectivity Low Selectivity Clutter Cost Fleeting Message Fleeting Message Television Disadvantages © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Limited Attention Limited Attention Negative Factors Negative Factors Zapping Limited Attention Limited Attention

Top 10 Network TV Advertisers © 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

Digital Video Recorders Such as TiVO are Impacting Television © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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

Purchase transactions are simplified Affiliated stations are linked Commercials shown on local stations May be local or “national spot” commercials Commercials shown on local stations Purchase transactions are simplified Affiliated stations are linked Network Versus Spot © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Network Spot & Local Spot & Local

Many Companies Develop Commercials for Spanish Language Networks © 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

Advantages 1.Highly selective “narrowcasting.” 2.Reaches specialized markets. 3.Low cost and flexibility. 1.Highly selective “narrowcasting.” 2.Reaches specialized markets. 3.Low cost and flexibility. Characteristics 1.National, regional, and local available. 2.Targets specific geographic areas. 1.National, regional, and local available. 2.Targets specific geographic areas. Limitations 1.Overshadowed by major networks. 2.Audience is fragmented. 3.Lacks penetration in major markets. 1.Overshadowed by major networks. 2.Audience is fragmented. 3.Lacks penetration in major markets. Characteristics Cable Television (CATV) © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Advantages

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

Sweeps Periods Are Used To Measure TV Audiences © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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

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

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 Network audience measures Person estimates Share Rating Audience Information © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Arbitron RADAR

New Digital Technologies are Impacting Radio © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin