1. chapter twelve Electronic Media: Television and Radio McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

2. 12-2 Objectives_1 Describe the advantages and drawbacks of broadcast television as an advertising medium Discuss the advantages and drawbacks of cable television as an advertising medium and explain how it differs from broadcast television Explain the process of buying cable and broadcast TV time Evaluate the different types of television advertising available

3. 12-3 Objectives_2 Describe the process of TV audience measurement Discuss the main factors to consider when buying television time Analyze the pros and cons of using radio in the media mix Explain the major factors to consider when buying radio time

4. 12-4 The Electronic Media Landscape in the U.S. 1,685 local commercial TV stations 10,000+ local radio stations 4 major TV networks 10,000+ local cable systems

5. 12-5 Top Cable TV Networks Discovery Channel ESPN Cable News Network (CNN) Turner Network Television (TNT) USA Network Nickelodeon TBS Superstation Spike TV Arts & Entertainment (A&E) Lifetime ESPN2 The Weather Channel

6. 12-6 Cable Facts Cable reaches 85% of TV households Most consumers receive more than 100 channels, but watch only 15-19 channels Cable households watch more hours of TV than non-cable households Most channels are privately owned Cable fees make up about 1/3 of cable revenues

7. 12-7 Broadcast TV Facts Heaviest viewers are middle-income, high-school-educated Average U.S. home viewers watch 8 hours of TV (includes cable and VCR/DVR) per day Older women watch the most TV

8. 12-8 Pros of Broadcast TV Advertising Mass coverage Relatively low cost per viewer Some selectivity Persuasion power Impact Creativity Prestige Social dominance

9. 12-9 Power of Television

10. 12-10 Cons of Broadcast TV Advertising High production cost High airtime cost Long lead times Limited selectivity Audience fragmentation Brevity Clutter Zipping and zapping

11. 12-11 What forms of advertising will replace traditional commercials? Sponsorship of TV programs and televised sporting events Product placements Interactive advertising during programs Ads embedded in VOD programs Ads within the DVR main menu Ads within VOD main menu Celebrity endorsement deals

12. 12-12 Pros and Cons of Cable TV Advertising Pros Selectivity Audience demographics Low cost Flexibility Testability Cons Limited reach Fragmentation Quality Zipping and zapping

13. 12-13 Buying TV Time Sponsoring TV programs Participating in programs Purchasing spot announcements Purchasing spots from syndicators Running program-length ads

14. 12-14 Participation: Most Expensive Shows American Idol Desperate Housewives CSI Greys Anatomy ER Extreme Makeover Survivor The Apprentice The Apprentice, Martha Stewart Two and a Half Men

15. 12-15 Syndication Largest source of programming Forms –Off-network –First-run –Barter

16. 12-16 Exhibit 12-7a Network Approach

17. 12-17 Exhibit 12-7b Syndication Approach

18. 12-18 Growth in Program-Length Ads Consumers pay attention and can respond immediately PLAs combine the power of advertising, direct response, and sales promotion PLAs allow for product demonstration and brand differentiation Results are measurable and accountable

19. 12-19 TV Audience Measurement Nielsen Media Research –Nielsen Television Index (NTI) People meters in 55 markets Diaries in 210 local markets during sweeps Simmons Market Research Bureau Mediamark Research

20. 12-20 Audience Measurements TV Households (TVHH) Audience Composition Households using TV (HUT) Total Audience Program Rating Audience Share

21. 12-21 TV Dayparts Daytime: 9:00 a.m.-4:00 p.m. Early fringe: 4:00-5:30 p.m. Early news: 5:00 or 5:30-7:30 p.m. Prime access: 7:30-8:00 p.m. Prime: 8:00-11:00 p.m. Late news: 11:00-1130 p.m. Late night: 11:30 p.m.-1:00 a.m.

22. 12-22 Buying Television Time Determine available programs and costs Analyze program efficiencies Negotiate prices with station reps Determine number and frequency of viewers Review affidavits of performance Sign broadcast contracts

23. 12-23 Program Efficiency Cost Per Point (CPP) = Cost/Rating Cost Per Thousand (CPM) = Cost/Thousands of People Cost Per Thousand-Target Market (CPM-TM) =Cost/Thousands of People in Target Audience

24. 12-24 Radio Facts 95.4% of the U.S. population listens to the radio at least once in an average week The average American listens to the radio more than 3 hours per day The CPM for radio has risen less than for any other major medium

25. 12-25 Pros of Radio Advertising Frequent access to large audience Selectivity Cost efficiency Visualization Timeliness Immediacy Local relevance Creative flexibility Image transference Enhanced interactive aspects

26. 12-26 Cons of Radio Advertising Limitations of sound Segmented audiences Short-lived/ half- heard Clutter No visual component Threats of satellite radio and personal music systems

27. 12-27 Programming Formats Country News/Talk Religious Oldies Adult contemporary Classic rock Spanish Top 40 Soft adult contemporary Easy listening Rock Alternative rock Jazz Classical

28. 12-28 Types of Radio Advertising NetworkSpotLocal

29. 12-29 Radio Dayparts Morning drive: 6:00-10:00 a.m. Daytime: 10:00 a.m.-3:00 p.m. Afternoon/Evening drive: 3:00 p.m.-7:00 p.m. Nighttime: 7:00 p.m.-12:00 a.m. All night: 12:00-6:00 a.m.

30. 12-30 Radio Terminology Run of station (ROS) Total audience plan (TAP) Average quarter- hour audience (AQH persons) Average quarter- hour rating Average quarter- hour share Gross impressions Gross rating points Cume persons Cume rating

31. 12-31 Steps in Preparing a Radio Schedule Identify stations with greatest cume of target audience Identify station formats with best access to prospects Determine best dayparts Construct a schedule using rate cards to guide budget Evaluate buy in terms of audience delivery Determine CPM-TM Negotiate and place buy

32. 12-32 Key Terms_1 Affidavit of performance Audience composition Audience share Avails Average quarter- hour audience Average quarter- hour rating Average quarter- hour share Barter syndication Broadcast TV Cable TV Cost per rating point Cost per thousand Cume persons Cume rating

33. 12-33 Key Terms_2 Daypart mix Designated market area Digital video recorder Drive time First-run syndication Gross impressions Gross rating points Households using TV Imagery transfer Infomercial Inventory Local time Makegoods Networks Off-network syndication

34. 12-34 Key Terms_3 Participation Preemption rate Prime time Program-length advertisement Program rating Programming format Rating service Run-of-station Sponsorship Spot announcement Spot radio Sweeps Total audience Total audience plan TV households