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

2. 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.
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3. 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.
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4. Exhibit 8.1 Creative Flexibility for Product Messages
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5. 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.
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6. Television Bureau of Advertising
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7. 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.”
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8. 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
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9. 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
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10. 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.
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11. Exhibit 8.3 GRPs Measure Weight of a Schedule
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12. Exhibit 8.4 Cost Per Point and Television Cost Efficiency
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13. Share
Share of audience is the percentage of households using television tuned to a particular program.
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14. Exhibit 8.5 Ad Spending by Type of Television
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15. Exhibit 8.7 Historical Ratings
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16. 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.
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17. Advertising Criteria for Network Television
Demographics
CPM
Demand
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18. Exhibit 8.8 Top Network Television Advertisers
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19. 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
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20. 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
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21. Exhibit 8.10 Top Spot Television Advertisers
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22. 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
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23. Local Television Advertising
Preemption rates
Special features
Run of schedule (ROS)
Package rates
Product protection
Schedule rotation
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24. 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.
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25. Need for Programming The number of television stations
means that there is a strong need for program content, like
that offered by syndicated programs.
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26. Exhibit 8.12 Top Syndicated Television Advertisers
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27. Exhibit 8.13 Top Cable Advertisers
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28. Cable’s Success Factor: First-Run Programming
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29. Reasons for Cable’s Attractiveness to Advertisers
Ability to target audiences
Low cost
Strong summer season
Local and spot options
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30. Cable Operators Can Insert Commercials Such as This One into Their Local Systems
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31. Time-Shift Viewing
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32. Exhibit 8.15 Top 10 Brands Appearing in a TV Program
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33. Exhibit 8.15 Top 10 TV Programs Using Product Placement
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34. Nielsen Media Research
is the primary
supplier of
syndicated
television ratings.
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35. Nielsen’s People Meter
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36. Nielsen Rating System: Areas of Concern
Sweeps
weeks
Diaries
Exposure
value
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37. TVQ Measures Show Popularity
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38. 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?
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