Lecture 9 Flashcards
TV & Radio are considered
Broadcast Media.
Average American household watches
over 7 hrs of TV per day.
During Primetime (8 to 11 pm) over \_\_\_ are watching TV.
100 M
Popular shows like ‘Big Bang Theory’, ‘Dancing With
The Stars’, ‘The Voice’ may have more than ___
viewers each.
35 million
Radio is an integral part of
our lives.
Average person listens to over ___ per day.
3 hrs of radio
Television Advantages Creativity and Impact
Can make dramatic lifelike presentations, set mood or image, etc. Interaction of sight & sound. Best for ‘demonstrating’ a product.
Television Advantages Coverage and Cost Effectiveness
310 M people watch TVs at home - 76% are 18 or older.
Ave primetime TV show reaches 7 M homes, a top rated show may reach 20 M homes (about 40 M viewers). There are $107 Million TV Households.
CPM is $24 for network evening shows & $4 for daytime weekly shows.
Television Advantages Captivity and Attention
Over 65% of TV viewers do watch most commercials …captive audience. TV commercials effect consumers simply thru heavy repetition & exposure
Television Advantages Selectivity and Flexibility
Selectivity of audiences by broadcast time, geographic coverage, cable, etc
Television Disadvantages Fleeting Message
30-sec spots became the norm in mid-1970s.
Now 15-sec spots account for 60% of all TV
commercials.
Externally paced medium.
Television Disadvantages Cost
Prodn costs of national 30-sec spot averages
$350,000. Small & even midsize advertisers are
priced out of TV advtg.
Costs of production as well as buying airtime.
Television Disadvantages Limited Attention
Young adults & men zap more.
Previews, short closing
scenes, pre-credits action
sequences, etc.
Zipping
Zapping
Television Disadvantages Low Selectivity
Geographic selectivity problem for local advertisers. TV does not offer as much selectivity as radio, direct mail, etc.
Television Disadvantages Clutter
Major networks average 17
mins of non- programming
content per hr
Television Disadvantages Negative Evaluation
Pervasiveness & invasiveness.
Negative effects on elderly & children.
Television Disadvantages Distrust
TV commercials are the most
‘distrusted’ form of advtg.
DVRs make it more difficult to
measure viewing audiences and to develop media
plans for TV.
One major impact DVRs are already having is to
encourage marketers to experiment
with extended ad-forms and other types of “advertainment” that can be shown to
subscribers of these systems. It has become important for marketers to make their
ads more interesting and entertaining in order to encourage consumers to watch
them.
Buying TV Time
TV time can be bought in many ways …. national, regional or local basis ……
or sponsor entire programs … or use spot announcements during or between
programs, etc.
Network Advertising
Each network airs commercials on ‘affiliates’ (local TV stations to which network
supplies programming & services). NBC, CBS, ABC, FOX, WB, UPN (United
Paramount Network). Simplified purchase process….but
high cost of network media time.
Highest rated shows can cost $500,000 for a 30-sec spot.
Most prime-time commercial slots are sold during the ‘up-front market’.
Spot & Local Advertising
Spot advtg are commercials shown on local TV station.
Local advtg is airtime sold to local firms (eg: retailers, restaurants, dealers, etc.
National advertisers use spot TV advtg thru local retailers or dealers as co-op
advtg programs to support local dealers or retailers.
Buying TV Time - Network
Affiliated Stations Are Linked
Purchase Transactions Are Simplified
Buying TV Time - Spot & Local
Commercials Shown on Local Stations
May Be Local or “National Spot” Commercials
Affiliate
a TV station, that is associated with a larger television network
Buying TV Time - Syndicated Programs
- Sold and Distributed Station by Station
- First-run Syndications
Sold and Distributed Station by Station: Off-network Syndication Shows that are “Reruns”. (Seinfeld, Friends, Big Bang Theory, Family Guy, Modern Family, etc).
First-run Syndications: Shows produced specifically for the syndication mkt (“Jerry Springer”, Regis &
Kathie Lee, Ellen, Dr Phil, TMZ, Judge Judy,
Entertainment Tonight, etc).
Buying TV Time - Syndicated Programs
-Advertiser-supported or bartered
Programs Sold to Stations in Return for Air Time
Selecting Time Periods
- Common Television Dayparts
Morning: 7-9 AM Daytime: 9-12 PM, 12 - 4:30 PM Early Fringe: 4:30 - 7:30 PM Prime Time Access: 7:30 - 8 PM Prime Time: 8 - 11 PM Late News: 11 - 11:30 PM Late Fringe: 11:30 - 1 AM Late Night: 1 - 7 AM
The most watched half hr In the US
8.30-9.00 ET
Most popular TV night
Sunday night
Cable (CATV)
Delivers signals through fiber or coaxial
wire rather than the airways. Cable
networks also transmit via satellite.
Superstations
Independent local stations that
broadcast nationally via satellite
through CATV (eg: TBS, WGN,
DVRs/VOD
Digitally record TV shows and store
them on hard drive, or select and view
content giving viewer control
the most significant development in broadcast media.
In 1975, 13% homes had cable. By 2002, 70% households had cable TV.
Cable allows for ‘narrowcasting’ (eg: MTV , CNBC, ESPN, GOLF, etc), infomercials, etc.
Many cable systems carry superstations, independent local stations that send signals
nationally via satellite to cable operators for their subscribers. eg.,TBS, WGN, etc.
Cable TV Characteristics
- National, regional, and local available.
- Targets specific geographic areas.
‘Narrowcasting’
Cable TV Advantages
- Highly selective “narrowcasting.”
- Reaches specialized markets.
- Low cost and flexibility.
Cable TV Limitations
- Overshadowed by major networks.
- Audience is fragmented.
- Lacks penetration in major markets.
The top TV advertisers by spend in U.S.
usually include
Procter & Gamble
(P&G), Berkshire Hathaway, General
Motors, Amazon, AT&T, Ford, TMobile, Toyota, Hyundai and PepsiCo.
Measuring the TV Audience is a very important & very controversial area of
media research, especially since it is not an exact science.
Audience measurement is critical to __ as well as to the networks & stations.
advertisers
Advertisers want to know the ___ _ ___ of the audience they are reaching when they buy time on a program.
size & characteristics
Since the rates they pay are a function of audience size, advertisers want to ensure…
…accuracy of audience measurement.
Audience measurement systems developed to…
…determine the audience size and composition of television programming in the U.S.
Viewer “diaries”
– a target audience self-records its viewing or listening habits
– the assembled statistical models provide a rendering of the audiences of any given show, network, and programming hour
Set Meters
– small devices connected to televisions in selected homes
– these devices gather the viewing habits of the home and transmit the information nightly to Nielsen through a “Home Unit” connected to a phone line
– the technology-based home unit system allows studying television viewing habits on a minute to minute basis, seeing the exact moment viewers change channels or turn off their TV
Analysis of Data: Usually reported as
“ratings/share”
A single national ratings point represents…
…one percent of the total number of TV-equipped households
“Share” is the percentage of television sets…
…in use tuned to the program
A show receiving a 9.2/15 during its broadcast, meaning that on average 9.2 percent of ALL television-equipped households were…
…tuned in to that program at any given moment, while 15 percent of households watching TV were tuned into that program during this time slot
Criticism of rating systems:
Nielsen ratings system is rapidly becoming outdated due to new technologies such as smartphones, DVRs, tablet computers and internet viewing.
• Since viewers are aware of being part of the Nielsen sample, it can
lead to response bias in recording and viewing habit.
• Lack of a system for measuring television audiences in environments outside the home, such as college dormitories, transport terminals, bars, jails, and other public places where television is frequently
viewed, often by large numbers of people in a common setting.
Program Rating
Rating = { HH tuned into show / Total U.S. HH }
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.
Share of Audience
Share = { HH tuned into show / U.S. HH using TV }
The audience share measurement is used to assess how well the program does with the available viewing audience at that time.
“universe estimate”
The number of households in the specified mkt that own a TV is called “universe estimate” (UE). 115 million households in the US own a TV set.
Program Rating
%age of TV households in the area that are tuned to a specific program during a specific time period.
“RATINGS POINT”
represents 1 % of all the TV households in an area that is
tuned to a specific program.
On a national level 1 ratings pt represents approx.
1,200,000 households.
Eg: If “America’s Got Talent” has ave. rating of 6, that means it reaches 7,200,000 HH per week (6 X 1,200,000 = 7,200,000).
HUT (Households Using Television)
Sometimes called ‘sets in use’.
Eg: if 60 million of the US TV households have their sets
turned on at 10 pm on Thurs night, then the HUT =
60,000,000 /120,000,000 = 50%
Share of Audience
% of households using TV in a specified time period that are tuned to a specific program.
Share = HH tuned to a show / HUT
‘Audience share’ is always higher than the ‘Program Rating’.
Program Share
Program Share = { TV households tuned to a show / Total TV households using TV }
Monday Night Football = 16,500,000 / 80,000,000 = 20.6 share
GRP stands for
Gross Rating Point.
Gross Rating Point
It measures advertising impact or ‘weight’ of the ad campaign.
It is a percent of the target market reached multiplied by the exposure frequency.
If you advertise to 30% of the target market and give them 4 exposures each, you would have a GRP of 120.
GRP =
Reach (% of audience reached) x Frequency (number of ad impressions)
Example: A campaign delivers an average frequency of 5 impressions to 1,000,000 Millennials (18-34 year-olds), out of an average total popn of 70,000,000 Millenials GRP = (1,000,000 / 70,000,000) x 5 GRP = 1.43% x 5 GRP = 7.15
Gross Rating Points =
Reach x Frequency
Sweeps Periods
Sweeps Periods Are Used To Measure TV Audiences
Sweeps are the time periods when Nielsen measures TV station audiences in 210 local markets. These ratings numbers for local news broadcasts are vital since as
much as half of a station’s ad revenue comes from commercial time sold during the 4 or 5 hours of local newscasts aired each day.
4 times every year are ratings periods known as “sweeps.” Typically held in…
…February,
May, July and November,
Radio boasts the __ reach among all media
widest
More than ___ commercial radio stations in the U.S.
11,300
4,700 AM stations and 6,600 FM stations
There are over 580 million radios, average almost
5 radios/household
Radio reaches…
…78% of all Americans over 12 yrs old
Average American listens to…2.5 hrs of radio per day
…2.5 hrs of radio per day
Radio and TV Similarities & Differences
- Similarities
Both Media…
are time-oriented media are sold in time segments have some network affiliates have some independents use the public airway are regulated by the F.C.C. are externally paced media are passive, low-involvement
Radio and TV Similarities & Differences
- Radio is different from TV….
Is More Limited Communication. Offers Only an Audio Message. Has Less Status and Prestige. Costs Much Less to Purchase. Costs Much Less to Produce.
Radio Dayparts
Morning drive time Midday Afternoon/evening drive time Nighttime All night
Morning drive time: 6:00 A.M. to 10:00 A.M.
Midday: 10:00 A.M. to 3:00 P.M.
Afternoon/evening drive time: 3:00 P.M. to 7:00 P.M.
Nighttime: 7:00 P.M. to 12:00 A.M.
All night: 12:00 A.M. to 6:00 A.M.
Advantages of Radio
Cost and Efficiency Selectivity Flexibility Mental Imagery Integrated Marketing
Limitations of Radio
Creative Limitations Audience Fragmentation Limited Listener Attention Limited Research Data Chaotic Buying Clutter
Radio advertising can boost the effectiveness of a TV campaign through…
…the imagery transfer process. 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.
By incorporating similar audio tracks in both TV and radio commercials, advertisers use radio effectively to…
…transfer the visual images from their TV ads into the minds of consumers
