Broadcast as Business Flashcards
Principle of First Copy Costs is also known as
“The cost of producing the first copy of something is much higher than the cost of the second or any subsequent copy.”
First copy bears all the costs first. It bears the brunt of everything.
Economies of Scale
How Do Consumers Pay for Media Services/ Content
Buy the actual products directly - as in the case of print media.
DIRECT COST
BEFORE: Mostly ___________ cost; we only see the messages we want to hear.
NOW: More ___________ cost; we receive messages that are already paid for by advertisers.
direct;
indirect
THE WHEEL OF FORTUNE
- _______________ – wants to persuade you. Retailers na gustong may ibenta.
Advertising agency – craft ____________________ for retailers; look for media. Look for an advertising agency.
Advertisers;
persuasive messages
THE WHEEL OF FORTUNE
2. _________ – broadcast, OOH, traditional media, digital; we see on media to entice us. Create ads & buy ads time/ space (make message).
Media
THE WHEEL OF FORTUNE
3. _________________: san natin ilalagay ito? Sino ba dapat ang maabot nito?
MEDIA PLAN
THE WHEEL OF FORTUNE
4. _______________: persuaded to buy the product; a portion of the money we buy..
Audience
Books, movies, recordings, and computers are supported almost entirely by ________ costs to the consumers.
direct
REAL PRODUCT = ?
the audience it promises to bring to advertisers
With TV and radio, there is no _________ cause for exposure to a program, but there is a high __________________ the means to receive a program.
direct; cost for purchasing
With magazines, newspapers and cable TV, the costs are split between ___________ and __________.
direct; indirect
How Do Consumers Pay for Media Services/ Content
You can contribute to a product’s advertising budget when you buy their product.
INDIRECT COSTS
How Do Consumers Pay for Media Services/ Content
You are indirectly contributing to a media company. You buy a product that is actively advertised. Purchasing/ supporting a product.
INDIRECT COSTS
How Do Consumers Pay for Media Services/ Content
Subscription, paying access to movies, buying a magazine, book, recording, etc.
DIRECT COST
How Do Consumers Pay for Media Services/ Content
We pay and receive something physical; directly pay for something.
DIRECT COST
_______________________ – TV and radio are different from other media products because they have ______ variable costs, _______ fixed costs.
1 movie : many audience
Broadcast products;
no; only
Goal: reduced _____, high _________. maximize the production cost.
cost; audience
There is no cost to the station for ___________________________ viewer to the audience.
adding an additional
With no variable costs and with a very high first copy fixed cost, broadcast stations work on ________________________________ with each additional audience member added.
dropping their average total costs
2 Kinds of Costs Incurred by Company
These expenses are not related to the level of goods or services produced by the business.
FIXED COST
2 Kinds of Costs Incurred by Company
These expenses are associated with the amount of goods produced or services rendered. It can increase or decrease depending on the producing volume.
VARIABLE COST
2 Kinds of Costs Incurred by Company
Examples of these are raw materials, labor, distribution cost. Nagbabago depende sa dating ng panahon.
VARIABLE COST
2 Kinds of Costs Incurred by Company
Production cost – can decrease or increase
Raw materials, labor, etc.
VARIABLE COST
2 Kinds of Costs Incurred by Company
Common examples are: lease & rent, utilities, insurance, salaries & interest payments, equipment use, talent fees. Any cost; lease, rent.
FIXED COST
2 Kinds of Costs Incurred by Company
Mag produce ka or hindi, kailangan mo siyang bayaran. Hindi mawawala; hindi maiiwasan.
FIXED COST
2 Kinds of Costs Incurred by Company
Capital expenses – electricity
Operational expenses – ex: laptop
FIXED COST
Principle of First Copy Costs
“The cost of producing the first copy of something is much higher than the cost of the second or any subsequent copy.” WHY? Explain.
First copy bears all the costs first. It bears the brunt of everything.
___________________: Units (usually :30s) of time in between airing blocks of programs reserved to sell to advertisers to air their television spot commercials. Time.
Advertising Spot
Strategies for Product Placement (D’Astous & Seguin, 1999)
Portrays a strategy where the product or brand plays a passive role. Product or brand is present during the program but no further attention is put on it.
- ex: lower thirds
Implicit Product Placement
Strategies for Product Placement (D’Astous & Seguin, 1999)
Presents the sponsorship either in the title or at some point during the program without making it an integrated part of it.
Non-Integrated Explicit Product Placement
Strategies for Product Placement (D’Astous & Seguin, 1999)
Product plays an active role and its benefits and attributes are presented clearly. Nakapaloob sa content mismo.
- audio & visual
- script/ plot placement
Integrated Explicit Product Placement
Types of Placement
Purely visual type of placement which involves placing a brand in the background of a show.
Screen Placement
Types of Placement
When a product becomes a part of the plot.
Building the persona of a character or taking a significant place in the story line.
Plot Placement
Types of Placement
Affected yung plot dun sa product (big role).
ex: Del Monte Kitchenomics
Plot Placement
Types of Placement
When a brand is mentioned in a dialogue. Depending on the tone of voice, place in the dialogue, which character is speaking at the time, etc. makes script placement varying in degrees of audio placement.
Script Placement
Types of Placement
A combination of auditory and visual
Script Placement
Types of Placement
Ex: “It’s tasty. It improves your mood when you are angry or depressed.” – Yoo Se Ri on Kitkat, Crash Landing on You Episode 11
Script Placement
Types of Placement
Can be done through creative placement or on set placement.
Screen Placement
Space in between – _____________________
commercial gap
Example: A 1 hour show is allowed only 42 minutes of program time. The rest of the time (18 minutes) is allotted for _______________.
advertising spots
Embedded Marking (or ____________________): Technique where references to specific brands or products are incorporated into the program with intent to promote it.
Product Placement
Dimension of Product Placement (Russel, 1998)
Dimensions:
_________ Dimension – nakikita mo lang; set design
___________________ Dimension – lines
______________________________ –
Visual;
Auditory or Verbal ;
Combination of visual and auditory
Who deals with whom?
Client
Network
- Brand
- Advertising Agency
- Sales & marketing
- Production Team
How is an advertising spot cost computed using the CPIRP scheme?
(depending on volume commitment)
COST X INDIVIDUAL RATING POINT =
ADVERTISING SPOT PER SHOW
____________: 81M with TV
TV Universe
___________________: average number of homes
TV Ratings
____________= TU / no. of viewers
Ratings
____________ = TU x ratings
no. of viewers
_________________ – mas mataas compared sa ratings
Audience Share
ratings → __________
shares → __________
long-term; variable
How Are Clients Charged?
TV commercial spots serve as ___________________.
main currency
_______________ – standard rate
rate card
________________ – they buy this time
advertising time goes to them, not the station.
ex: Eat Bulaga
block timers
Prices are _______ regardless of program performance/ ratings.
Prices are ________ and negotiated annually.
fixed; set
A pricing model allowing advertisers to set a budget according to the set rates and how many individuals are reached by their ads.
CPIRP (Cost Per Individual Rating Point)
The cost per 30 seconder material will depend on the individual month average rating of the specific program. Pay per rating. Set a budget.
ex: ABS-CBN
CPIRP (Cost Per Individual Rating Point)
__________________________: How much advertising budget the client is committing to the network.
client commits they will buy this time
Volume Commitment
cost x individual rating point = ____________________ (CPRP)
ad spot cost per show
VCCost per unit
________________: Programs in the non-prime time slot/ day part
________________: programs in the prime time slot/ day part
Non-Prime;
Prime
- clear evidence
- measurement; parang grade ng isang show
RATINGS
