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Evaluation of Broadcast Media

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Presentation on theme: "Evaluation of Broadcast Media"— Presentation transcript:

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

2 Television Advantages
Creativity and Impact Creativity and Impact Coverage and Cost Effectiveness Coverage and Cost Effectiveness Relation to text This slide relates to the material on pp of the text. Summary Overview This slide shows the numerous advantages of television. They are: Creativity and impact – the interaction of sight and sound offers tremendous creative flexibility and opportunities for the advertising message Coverage and cost effectiveness – TV can reach large audiences cost effectively Captivity and attention – commercials impose themselves on viewers as they watch their favorite programs and are likely to be seen unless some effort is made to avoid them Selectivity and flexibility – audiences vary by program content, broadcast time, and geographic coverage; cable television offers additional selectivity Use of this slide This slide can be used to discuss the various advantages of television. Television is unique in its ability to combine visual images, sound, motion, and color. These characteristics provide the advertiser with an opportunity to develop the most creative and imaginative advertising appeals of any medium. Captivity and Attention Captivity and Attention Selectivity and Flexibility © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

3 TV Commercials on Programs Such As the Super Bowl Reach Large Audiences
Relation to text This slide relates to the material on pp which discusses the advantages of television. Summary Overview This slide contains a commercial called “Worst Spot on the Super Bowl” that was run by the online company LifeMinders during the 2000 Super Bowl. The company bought a 30 second spot on the Super Bowl in the fall of 1999 but its agency did not have time to produce a commercial in time for the big game so the company created its own ad in-house. The commercial was this text only message with black words set against a yellow background. Use of this slide This slide can be used as part of a discussion regarding the value of advertising on television. One of the advantages of television is its ability to reach large audiences. The Super Bowl is the premiere event for TV advertising as it generally gets program ratings in the low 40s and is seen by more than 110 million people in the U.S. However, there is debate over whether the high cost of advertising on the big game is a good expenditure of media dollars. You might ask students how a small company such as LifeMinders could justify paying nearly $2 million for a 30 second spot on the Super Bowl. *Click outside of the video screen to advance to the next slide © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

4 Television Disadvantages
Fleeting Message Fleeting Message Cost Cost Limited Attention Limited Attention Low Selectivity Low Selectivity Negative Factors Relation to text This slide relates to material on pp of the text. Summary Overview Although television is unsurpassed from a creative perspective, the medium has several disadvantages that limit its use by many advertisers. These problems include: Fleeting messages – most TV commercials are 30 seconds or less and leave consumers with nothing tangible to examine Cost – expense of buying airtime and costs of producing TV commercials is high Low selectivity – offers some selectivity, but not very selective for smaller target markets Clutter – a problem because of shorter and an increased number of commercials Distrust and negative evaluation – the pervasiveness of TV commercials and their intrusiveness as well as content creates problems Limited attention – viewers avoid commercials by zipping and zapping or simply by not paying attention to them Use of this slide This slide can be used to discuss the limitations of television as an advertising medium and the various challenges they present to advertisers when using it as part of their media mix. Zapping Zipping Zipping Clutter Clutter Negative Evaluation Distrust Negative Evaluation Distrust © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

5 Top 10 Network TV Advertisers
Company $ Amount 1. Proctor & Gamble $833.6* 2. General Motors 753.5 3. Johnson & Johnson 521.6 4. Ford Motor Co 5. Time Warner 451.9 6. Pfizer 417.8 7. Walt Disney Co 8. SBC Communications 396.2 9. PepsiCo 379.5 10. DaimlerChrysler 359.4 Relation to text This slide relates to material on pp and Figure 11-1 of the text. Summary Overview This slide shows a list of the top ten network television advertisers from Because of its ability to reach large audiences in a cost-efficient manner, TV is a popular medium among companies selling mass-consumption products. Large consumer packaged goods companies, carmakers, and retailers use TV frequently for their advertising messages. Use of this slide This slide can be used to discuss the top advertisers on network television. These are large companies with widespread distribution and availability of their products/services. They use TV to reach the mass market and deliver their messages at a very low cost per thousand. * millions of dollars © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

6 Top 20 Advertisers in 2006 (Taiwan)
    單位:百萬元 2006排序 2005排序 廣告主名稱 2006年上半年 2005年上半年 增加金額 增加幅度 1 9 遠雄集團* % 2 1 寶僑家品公司 % 3 14 台灣留蘭香公司 % 4 4 台灣萊雅(股) % 5 2 中華汽車工業(股) % 6 5 中華電信(股)公司 % 7 7 統一企業(股) % 8 21 福特六和汽車(股) % 9 3 裕隆汽車公司NISSAN % 10 19 台灣大哥大電信公司 % 11 11 嬌生企業公司 % 12 8 花王(台灣)公司 % 13 36 遠傳電信股份公司 % 14 6 聯合利華(股) % 15 25 統一超商(股)公司 % 16 20 家福(股)公司 % 17 23 荷商葛蘭素史克藥廠 % 18 27 台灣松下電器(股) % 19 12 和泰汽車公司 % 20 26 自由時報 %

7 TV Advertising Works Best When…
The budget is large enough to produce high quality commercials. The budget is large enough to produce high quality commercials. The media budget is sufficient to generate and sustain the number of exposures needed. The media budget is sufficient to generate and sustain the number of exposures needed. Relation to text This slide relates to material on pp of the text. Summary Overview This slide summarizes the various situations when television is an effective and efficient advertising medium. Advertising works best when: The budget is large enough to produce high quality commercials The budget is large enough to sustain the number of exposures needed The market is large enough and can be reached efficiently through a specific network, station, or program There is a need for a medium with creative potential to exert a strong impact Use of this slide This slide can be used to discuss the various conditions in which television would be a good medium for a company’s advertising messages. The positive characteristics of television provide the advertiser with an opportunity to develop the most creative and imaginative appeals of any medium. However, it is an expensive medium to buy and for which to produce quality messages. The market is large enough and easily reachable through a specific network, station, or program. The market is large enough and easily reachable through a specific network, station, or program. There is a genuine need for a medium with high creative potential to exert a strong impact. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

8 Syndicated Programs Off-network syndication are “reruns”
Sold and distributed station by station First-run syndications are also featured First-run syndications are also featured Relation to text This slide relates to material on pp of the text. Summary Overview Advertisers may also reach TV viewers by advertising on syndicated programs, which are shows that are sold or distributed on a station-by-station or market-by-market basis. The types of syndicated programming are listed below: Off-network syndication – reruns of network shows that are bought by individual stations. Popular shows are Seinfeld, Everybody Loves Raymond and Friends. First-run syndication – shows specifically produced for the syndication market. Popular shows are Live with Regis & Kelly and The Jerry Springer Show. Advertiser-supported or barter syndication – selling shows to stations in return for a portion of the commercial time in the show, rather than cash. Popular shows are Wheel of Fortune, Jeopardy, and The Oprah Winfrey Show. Use of this slide This slide can be used to explain syndicated programming. Syndication accounts for more than a third of the national broadcast audience and has become a very big business, generating revenue comparable to the big-three networks. In certain dayparts, such as daytime, early prime time, and late fringe syndicated programs have become more popular than network shows. Advertiser-supported or bartered Programs sold to stations in return for air time © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

9 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Methods of Buying Time Sponsorship 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 Participations 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 Spot Announcements 1. May be purchased by daypart or adjacency Relation to text This slide relates to material on pp of the text. Summary Overview This slide shows various methods of buying advertising time on television. A decision facing advertisers is whether to sponsor an entire program, participate in a program, or use spot announcements between programs. Characteristics of each are as follows: Sponsorship – advertiser assumes responsibility for the production and usually the content of the program and the advertising that appears within it. Firm can capitalize on the prestige of a high-quality program Control over the number, placement, and content of its commercials. Participation – many different advertisers buy commercial time on a particular program 90% of network advertising is sold this way Can participate on a regular or irregular basis Advertisers have no financial responsibilities for the program Participants lack control over the content Spot announcements – bought from local stations and ads generally appear during time periods adjacent to network programs rather than within them Use of this slide This slide can be used to discuss the various methods of buying media time. Sponsorship of a program and participation are available on either a network or a local market basis, whereas spot announcements are available only from local stations. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

10 TV Advertising Buying Decisions
Reach is the primary consideration but ease of purchase is important. Network Versus Spot Reach is the primary consideration but ease of purchase is important. Network Versus Spot Considerations are the geographic markets and ability to acquire airtime. National Versus Local Spot Considerations are the geographic markets and ability to acquire airtime. National Versus Local Spot Relation to text This slide relates to material on pp of the text. Summary Overview This slide provides a review of the various ways a company can purchase commercial time on television and a summary of the characteristics of each. These include: Network versus spot – reach is the primary consideration along with ease of purchase. National versus spot – considerations are the geographic markets and ability to acquire airtime. Sponsor, participate, or spot – method of buying affects cost, commitment, and identification. Specific daypart and weeks – scheduling depends on reach and frequency requirements. Use of this slide This slide can be used to show various decisions that media planners have to consider when purchasing media time on television. Method of buying affects cost, commitment, and identification. Sponsor, Participate, or Spot Method of buying affects cost, commitment, and identification. Sponsor, Participate, or Spot Scheduling depends on reach and frequency requirements. Specific Daypart and Weeks © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

11 Common Television Dayparts
Daytime 12 Late Fringe 12 Late News 11 Late Night 1 11 1 Prime Time 10 2 10 2 AM PM 9 3 9 3 Prime-Time Access Morning Early Fringe 8 4 8 4 Relation to text This slide relates to material on pp of the text. Summary Overview This slide shows the various dayparts or time periods into which the segments of a broadcast day are divided. An important consideration in buying TV time is selecting the right period and program for the advertiser’s commercial messages. The cost of TV advertising time varies depending on the time of day and the particular program, since audience size varies as a function of these two factors. Use of this slide This slide can be used to discuss the various dayparts for television. The different daypart segments are important to marketers because they attract different audiences in both size and nature. As such, advertising rates vary accordingly. Prime time draws the largest viewing audience 7 5 7 5 6 6 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

12 Other TV Delivery Vehicles
Delivers signals through fiber or coaxial wire rather than the airways. Cable networks also transmit via satellite. Cable (CATV) Delivers signals through fiber or coaxial wire rather than the airways Cable Independent local stations that broadcast nationally via satellite through CATV Superstations Independent local stations that broadcast nationally via satellite through CATV Superstations Relation to text This slide relates to material on pp of the text. Summary Overview This slide summarizes the other vehicles through which programs which are made available to television viewers. These include: Cable and alternative delivery systems such as direct broadcast satellite Superstations DVRs (Personal video recorders) and VOD (video on demand) Use of this slide This slide can be used to discuss the other options available for advertisers when using TV as an advertising medium as well as DVRs and their impact on TV viewing. Digitally record TV shows and store them on hard drive, or select and view content giving viewer control DVRs/VOD © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

13 Measuring TV Audiences
Television Households Television Households Audience Measures Audience Measures Program Rating Program Rating Relation to text This slide relates to material on pp of the text. Summary Overview One of the most important considerations in TV advertising is the size and composition of the viewing audience. Measuring the size of the audience is very important to marketers. This slide introduces the various audience measurement terms including: Television households – number of households that own a TV Program rating – percentage of TV households in an area that are tuned to a specific program during a specific time period. Households using TV – percentage of homes in a given area where TV is being watched during a specific time period Share of Audience – percentage of households using TV in a specified time period that are tuned to a specified program Audience Measures – size and composition of television audiences Use of this slide This slide can be used to discuss the various audience measurement terms. The sole source of network TV and local audience information is the A.C. Nielsen Co. Nielsen Media Research gathers viewership information from a sample of TV homes and then projects this information to national and local markets. Share of Audience Households Using TV Households Using TV © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

14 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
TV Audience Measures HH tuned to show Total U.S. HH Rating = Program Rating HH tuned to show Total U.S. HH Rating = Program Rating Relation to text This slide relates to material on pp of the text. Summary Overview This slide shows the calculations for program rating and share of audience, which are two common measurements of television viewing audiences. The two formulas use the same numerator, but use different denominators. Households using television is a lower number than total U.S. households, therefore audience share is always higher than the program rating unless all the households have their sets tuned on. Use of this slide This slide can be used to show how the program rating and share of audience numbers are calculated. The program rating is the best known of the audience measures and is important to the stations because it determines how much they can charge for commercial time. The audience share measurement is used to assess how well the program does with the available viewing audience. HH tuned to show U.S. HH using TV Share = Share of Audience © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

15 Sweeps Periods Are Used To Measure TV Audiences
Relation to text This slide relates to material on pp and IMC Perspective 11-3. Summary Overview This slide shows a collateral piece for KFMB TV, which is local CBS affiliate in San Diego, CA, promoting the station’s first place finish in the local ratings for prime time broadcasts during the May 2005 Sweeps period. The text of the piece lists local competing stations and the HH Rating for each. Use of this slide This slide can be used as part of a discussion of sweeps, which are the time periods when Nielsen Media Research measures TV station audiences in 210 local markets. The numbers gathered during the sweeps periods are used as guideposts in the buying and selling of TV commercial time during the rest of the year and are extremely important to local stations. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

16 Radio and TV Similarities
Are time oriented media Are time oriented media Are sold in time segments Are sold in time segments Have some network affiliates Have some network affiliates Both Media… Have some independents Have some independents Relation to text This slide relates to material on pp of the text. Summary Overview This slide shows the similarities of radio and television, which are the two major forms of broadcast media that can be used for advertising. These similarities are that both media: Are time oriented media Are sold in time segments Have network affiliates Have some independents Use the public airways Are regulated by FCC (Federal Communications Commission) Are externally paced media Are passive, low involvement media Use of this slide This slide can be used to discuss the similarities between television and radio which are the two forms of broadcast media that can be used for advertising. Use the public airway Use the public airway Are regulated by the F.C.C. Are regulated by the F.C.C. Are externally paced media Are externally paced media Are passive, low-involvement © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

17 Radio Differs from TV Is more limited communication
Offers only an audio message Offers only an audio message Costs much less to produce Costs much less to produce Relation to text This slide relates to material on pp of the text which discusses radio as an advertising medium. Summary Overview Although there are many similarities between radio and TV, there are also some major differences between the two forms of broadcast media. This slide shows that in comparison to television radio advertising: Has more limited communication Costs much less to produce Cost much less to purchase Has less status and prestige Offers only an audio message Use of this slide This slide can be used to discuss the differences between television and radio as advertising media. Despite some of its limitations when compared to TV, radio continues to be an important advertising medium. Has less status and prestige Costs much less to purchase Costs much less to purchase © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

18 Radio Formats by Age Group
Relation to text This slide relates to material on p. 363 and Figure 11-6 of the text. Summary Overview This slide shows the popularity of different radio formats by various age groups. One of the advantages of radio is the high degree of audience selectivity available through the various program formats and geographic coverage of numerous stations. Most areas have radio stations with formats such as adult contemporary, easy listening, country, or news/talk shows. Use of this slide This slide can be used to discuss the diverse types of radio formats and how they can be used to reach different age segments. As shown on the slide, adult contemporary music, contemporary hits and news/talk are the three most popular formats with the latter skewing to an older audience. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

19 The RAB Promotes Synergy
Relation to text This slide relates to material on pp and Exhibit of the text. Summary Overview This slide shows an ad run by the Radio Advertising Bureau promoting the synergy between radio and newspaper advertising. The Radio Advertising Bureau is the major trade association for the radio advertising industry. Over 4,600 radio stations are members of the RAB whose mission is to promote radio as an advertising medium. The RAB’s National Marketing Department influences advertisers at the national, network, and regional level to spend their advertising dollars on radio. Use of this slide This slide can be used as an example of how an industry trade association promotes a medium based on a major research study. The Radio Marketing Guide and Fact Book is the industry’s most extensively used publication for profiling radio audiences, detailing the consumer behavior of radio listeners, and comparing the benefits of radio to those of competitive media. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

20 Advantages and Limitations of Radio
Disadvantages Cost and Efficiency Cost and Efficiency Creative Limitations Creative Limitations Selectivity Selectivity Audience Fragmentation Audience Fragmentation Flexibility Flexibility Chaotic Buying Chaotic Buying Relation to text This slide relates to material on pp of the text. Summary Overview This slide summarizes the advantages and limitations of using radio as an advertising medium. These are: Advantages Cost and efficiency Selectivity Flexibility Mental imagery Integrated marketing opportunities Disadvantages Creative limitations Audience fragmentation Chaotic buying Limited research data Limited listener attention Clutter Use of this slide This slide can be used to discuss the advantages and disadvantages of using radio. Although it can be overshadowed by television, radio continues to be an important advertising medium. The average American listens to 3 hours of radio every weekday and nearly 5 hours every weekend. This has created an industry that has grown to $18 billion/year in advertising revenue. Mental Imagery Mental Imagery Limited Research Data Limited Research Data Integrated Marketing Integrated Marketing Limited Listener Attention Limited Listener Attention Clutter © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

21 Radio Ads Can Enhance TV Campaigns
Relation to text This slide relates to material on pp and Exhibit of the text. Summary Overview This transparency shows a page from the Radio Advertising Bureau’s Radio Marketing Guide and Fact Book that explains the concept of image transfer. The page describes how radio advertising can boost the effectiveness of a television campaign through the imagery transfer process. The idea behind image transfer is that consumers will replay the visual image mentally when they hear the audio portion of a corresponding radio commercial. Thus, by incorporating similar audio tracks in both TV and radio commercials, advertisers can use radio effectively to transfer the visual images from their television ads into the minds of consumers. Use of this slide This slide can be used as part of a discussion of the image transfer process for radio advertising. Many advertisers rely on this concept when they develop advertising campaigns that utilize both TV and radio ads. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

22 Buying Radio Time Network Radio National Spot Local Radio
Three national networks Three national networks Network Radio Over 100 regional/area networks Over 100 regional/area networks A multitude of syndicated programs A multitude of syndicated programs About 20% of all spots About 20% of all spots Relation to text This slide relates to material on pp of the text. Summary Overview This slide shows the various options for purchasing advertising time on radio. These include: Network radio Three national networks Over 100 regional/area networks Many syndicated programs are available on network radio National spot Accounts for 20% of radio time sold Greater flexibility in selecting markets Purchasing can be difficult to coordinate across various markets Local radio 80% of advertising is purchased on local stations by local companies Local cable is becoming a competitor for local radio Use of this slide This slide can be used to discuss the various options available to advertisers in buying radio time. The purchase of radio time is similar to that of television, as advertisers can make network, spot, or local buys. National Spot Allows great flexibility, targeting Allows great flexibility, targeting Purchase transaction can be difficult Purchase transaction can be difficult Local Radio Nearly 80% of advertisers are local Nearly 80% of advertisers are local Local CATV is becoming competitive © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

23 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Dayparts for Radio Daytime 12 All Night Nighttime 12 11 1 11 1 Morning Drive Time 10 2 10 2 AM PM 9 3 9 3 Afternoon/Evening Drive Time 8 4 8 4 Relation to text This slide relates to material on pp and Figure 11-7 of the text. Summary Overview This ad shows the various dayparts for radio advertising. As with television, the broadcast day for radio is divided into various time periods or dayparts. The size of the radio listening audience varies widely across the dayparts, and advertising rates follow accordingly. Use of this slide This slide can be used to discuss the various dayparts for radio. The largest radio audiences and the highest rates occur during the early morning and late afternoon drive times. Radio rates also vary according to the number of spots or type of audience plan purchased, the supply and demand of time available in the local market, and the ratings of the individual station. 7 5 7 5 6 6 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


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