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Copyright © 2012 Pearson Canada Inc. Chapter 9 Broadcast Media: Television and Radio 9-1
Copyright © 2012 Pearson Canada Inc. Learning Objectives Identify the organizations involved in the Canadian broadcasting industry Assess the advantages and disadvantages of television and radio as advertising media Explain the factors considered in, and procedures used, for buying television and radio time Identify recent technologies affecting commercial television and radio in Canada 9-2
Copyright © 2012 Pearson Canada Inc. The Canadian Television Market Television and radio reaches 99% of Canadian households. 90% of households have satellite or cable TV. On an average day, 82% of Canadians view television at least once. 9-3
Copyright © 2012 Pearson Canada Inc. Television Market The television market is divided between: National Networks e.g., CTV – 18 stations Regional Networks CTV operates regional networks in Ontario, Atlantic Canada, and Saskatchewan Specialty cable channels TSN, MuchMusic, History Channel Pay TV Digital Networks 9-4
Copyright © 2012 Pearson Canada Inc. Trends Affecting Television and Television Advertising The landscape of the Canadian Television industry is changing. Commercial Avoidance and Personal Video Recorders Audience Fragmentation Alternative Viewing: Video-on-Demand Mobile Media Convergence of media ownership 9-5
Copyright © 2012 Pearson Canada Inc. Television Viewing Highlights Media-viewing data is collected by two organizations in Canada: BBM Bureau of Measurement and Nielsen Media Research A valuable resource for advertisers to assess advertising costs and for identifying what programs are popular. Ratings are audience estimates expressed as a percent of the population in a defined geographic area. 9-6
Copyright © 2012 Pearson Canada Inc. Time Spent with Television and Other Media 9-7
Copyright © 2012 Pearson Canada Inc. Advantages of Television Advertising Impact & Effectiveness of Messages Demonstration Capability High Reach Frequency Potential Some Demographic Selectivity Some selectivity for geographic coverage 9-8
Copyright © 2012 Pearson Canada Inc. Disadvantages of Television Advertising High Cost Limitations on target-market selectivity Audience Fragmentation Commercial Avoidance Lack of Planning Flexibility 9-9
Copyright © 2012 Pearson Canada Inc. Television Advertising Alternatives Network Advertising National Spot (Selective spot) Advertising Sponsorships Opportunities Product Placement and Branded Content Station specific Advertising for local businesses 9-10
Copyright © 2012 Pearson Canada Inc. Television Ad Rates and Buying Procedures Supply and Demand Nature of Advertising Purchase Type of Programs Dayparts (Time of Day) Length of Commercial 9-11
Copyright © 2012 Pearson Canada Inc. Buying Television Time Media buying in television is a complex process. National and Regional Networks Supply and demand system = grid card with varying price levels Spot rates depend upon daypart, audience size, and time of year. Local-Market Television Rates Offer continuity discount for 52-week contracts. Commercials are rotated vertically through the day, and horizontally during the week Gross Ratings Points are a key metric 9-12
Copyright © 2012 Pearson Canada Inc. Discounts Offered by Television Frequency Volume Continuity Seasonal Package Plans ROS (Run Of Schedule) Pre-emption Rates 9-13
Copyright © 2012 Pearson Canada Inc. Media Optimizers New optimizing software technology is playing a much bigger role in buying more efficient advertising time on TV. An optimizer searches the TV-ratings database for daypart or program combinations that increase target reach (or reduce the cost of buying it) 9-14
Copyright © 2012 Pearson Canada Inc. The Canadian Radio Market 649 commercial radio stations in Canada 184 are AM (amplitude modulation) 465 are FM (frequency modulation) Average adult spends about 19 hours/week listening to radio Radio broadcasting is divided between Canadian Broadcasting Corporation (government funded) Independently owned and operated stations dependent on advertising revenues 9-15
Copyright © 2012 Pearson Canada Inc. Trends Influencing the Radio Industry Trends Influencing the Radio Industry: Digital Radio (e.g. CBC)CBC Internet Radio (e.g. 3wk.com)3wk.com Satellite Radio (e.g. Sirius Canada)Sirius Canada Ipods and other Portable devices (e.g. iTunes)iTunes 9-16
Copyright © 2012 Pearson Canada Inc. Radio Listening Highlights Conventional Radio are transmitted two ways: AM – varying the height of radio waves FM – varying frequency of radio waves Tuning Hours: Average listener tunes in 16-21 hours a week Teens spend 8 hours on iPods, cell phones, and Internet, which are more attractive to them Radio is more popular in the morning, when people wake up or travel to work 9-17
Copyright © 2012 Pearson Canada Inc. Radio Station Formats Radio audiences are largely determined by a station’s format (type and nature of the programming) Adult Contemporary Golden oldies Country News/Talk Contemporary Hit Radio (CHR) 9-18
Copyright © 2012 Pearson Canada Inc. Pros and Cons of Radio Advertising AdvantagesDisadvantages Target-Market Selectivity Reach Potential Frequency Modest Cost for placement and production Flexibility Audience Fragmentation Low engagement Limited Message Retention Media-Planning Consideration 9-19
Copyright © 2012 Pearson Canada Inc. Radio Advertising Rates and Buying Procedures Seasonal Rate Structures Dayparts Reach Plans Type of Advertiser 9-20
Copyright © 2012 Pearson Canada Inc. Radio Discounts Number of spots over a specified period of time Frequency Volume Continuity Large number of spots For a contract that covers a specified period of time Continued… 9-21
Copyright © 2012 Pearson Canada Inc. Radio Discounts (cont.) Purchase a minimum weekly number of spots in return for a packaged discount rate Package Plans Combination Run-of-Schedule If they air commercials on more than one station If allowed relocate commercials through schedule at its own discretion 9-22
Copyright © 2012 Pearson Canada Inc. Buying Radio Time Factors that have an impact on the spot rate: Volume Frequency (the total number of spots in a buy) Timing (in terms of day or season) Continuity (length of the plan) 9-23
Copyright © 2012 Pearson Canada Inc. Buying Radio Time Rotation Plans Vertical Rotation Horizontal Rotation Reach Plan (Total Audience Plan) The rotation of commercials through dayparts based on predetermined frequency at the discretion of the station. 9-24
Copyright © 2012 Pearson Canada Inc. Radio Rate Card 9-25
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