Transcript Broadcast Advertising

Broadcast Advertising
Advertising Defined
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Non-personal Communication
Usually paid for
By an identified sponsor
Persuasive in nature
About products, ideas or services
Through various media
Advertising in the Marketing
Mix
• Product
– Quality, package, appearance, etc.
• Price
– Deep discount to premium
• Place
– Distribution channels
• Promotion
– POP, personal selling, PR, Advertising
Advertising Classified
• By audience
– Consumer
– Business to Business
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Industrial
Trade
Professional
Farm
Advertising Classified
• Geographically
– National
– Regional
– Local
– International
Advertising Classified
• By medium
– Electronic
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Radio
Television
Cable
Internet
Advertising Classified
• Print
– Newspaper
– Magazine
• Outdoor
– Billboard
– Transit
Advertising Classified
• Specialty
– Novelties
– POP
– Product placement
– Etc.
– Etc.
– Etc.
Advertising Classified
• By function
– Product -vs- non-product
– Commercial -vs- non-commercial
– Direct action -vs- non-direct action
The advertising industry
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Agencies
The media
The advertisers
The support services and suppliers
The regulators
The consumers
Advertising History
• Functions of advertising:
– Identify products and differentiate them
– Communicate information about product
– Induce consumers to try the product
– Increase product usage
– Build brand preference and loyalty
Advertising History
• Dates to 1600s
– British newspapers paid notices
Advertising History
• Ben Franklin is credited with introducing
white space and illustrations
Advertising History
• Magazines became first national
medium
• Volney Palmer – first ad agency – 1841
– Bought newspaper and magazine space in
large volumes at discount.
– Marked up 15%
• N. W. Ayer – first full service agency
Broadcast Advertising History
• Out of the debate on how to pay for
broadcasting came…
• “Toll” broadcasting
– WEAF
– AT&T station
• “telephone philosophy of paying toll for long distance
calls.
• First commercial broadcast
• http://www.oldtime.com/commercials/1stcommercial.html
Broadcast Advertising History
• Post WWI
– Radio grew
– Lifestyles improved
– Spending increased
– Radio networks emerged
– Advertising stressed the “Unique Selling
Proposition”
Broadcast Advertising History
• Television explodes post WWII
– Radio programs shift to television
– Radio adopts musical formats
• Advertising costs increase
• Sponsorships give way to participations
or “spots”
• By the 1960s – advertising entered the
“image era”
Broadcast Advertising History
• Depicting a lifestyle – not product
information
• Emotional appeals – not logical appeals
• Remember the package – not the name
• Focus on benefits to consumer
The contemporary advertising
industry
• Complicated by the proliferation of
media
• Audiences are splintered
– Narrowcasting
• Clutter and competition
• High costs of media drive demand for
research
Effects of advertising
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On prices
On competition
On product image
On demand
– “Creating” demands?
– Bran, fiber, carbs, cosmetics, vitamins, etc.
– Slow a declining market – “repositioning”
Media strategy
• Buying patterns
– Weekly cycles
– Monthly cycles
– Annual cycles
– Seasonal products
• Products/service with fixed maximum
capacities
Media strategy
Media strategy
Media strategy
Media strategy
Media strategy
• Reach
– Unduplicated exposures – gross
impressions
– Number of different people exposed to the
message
• Frequency
– Average number of exposures
– How many times audience is exposed to
message
Media strategy
• Best frequency
– Outdoor, newspapers, magazines
• Best Reach
– Network advertising, magazines
• Best combination
– Radio
Media strategy
• Calculating cost efficiency
• Cost per thousand (CPM)
– How much it costs to deliver 1000 gross
impressions
– How much to reach 1000 listeners,
viewers, readers, households, etc.
CPM
2 spots @ $8.00 each
1 reaches 4500 QHP
1 reaches 3500 QHP
CPM
• 4500 + 3500 = 8000 gross impressions
• 2 spots @ $8 = $16 – cost of the schedule
• $16 ÷ 8000 =
• .002
• .002¢ per person
• X 1000 = 2.00
• $2 per 1000 QHP
CPM
Number of spots Cost per spot Total cost
1
80
8
10
4
10
Totals
QHP Total QHP
3400
2913
5825
CPM
Number of spots Cost per spot Total cost
1
80
80
8
10
80
4
10
40
Totals
$200
QHP Total QHP
3400
3400
2913
23300
5825
23300
50000
200 ÷ 50000 = .004
CPM
Number of spots Cost per spot Total cost QHP Total QHP
4
11
26500
8
15
3000
10
19
4700
Totals
CPM
Number of spots Cost per spot Total cost QHP Total QHP
4
11
44 26500 106000
8
15
120 3000
24000
10
19
190 4700
47000
Totals
$354
177000
354 ÷ 177000 = .002
Waste circulation
• Reaching people who are not the
desired audience
• Demographics = age, gender, income
• Psychographics = “lifestyle”
Audience research
• How we know the size of the audience
reached
• Rating = percentage of all possible
viewers or listeners
• Share = percentage of people using
media
• Share is always a larger number
Audience research
100%
All possible viewers or listeners
Audience research
100%
TVHH
Audience research
HUT
50%
Not
viewing
HUT level = 50
Audience research
Not
viewing
Tuned
to our
spot
Audience research
25% of TVHH – 50% of HUT
Audience research
Rating = 25
Share = 50
Audience research terms
• Gross ratings points
• Average quarter hour people (QHP)
Audience research
• Began in the 1920s with radio
listenership
• Archibald Crossley personal interviews
• C. E. Hooper – Hooperatings – personal
• A. C. Nielsen
– Diaries
– Audimeter
Audimeter
A.C. Nielsen
• Now only television ratings
• Use diaries, audimeters and “people
meters”
• Meters used for “overnights”
A.C. Nielsen terminology
• Total survey area (TSA)
• Designated market area (DMA)
– Every county in the U.S. assigned to a
DMA
• Metro survey area (MSA)
TSA
Market areas
DMA
TSA
DMA
TSA
Arbitron
• Radio research
• Dairies
• Developing the “personal people meter”
(PPM)
Arbitron terminology
• Total survey area (TSA)
• Area of Dominant Influence (ADI)
– Every county assigned to an ADI
• Metro survey area (MSA)
Problems in audience
research
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Poor return rates of diaries
Absenteeism – controlled by PMs
Hyping
What does “listening” or “viewing” really
mean as it relates to advertising?