Transcript Document

Advertising Principles
and Practices
Broadcast Media
Holiday Inn Express Stays Smart
• Holiday Inn needed to
establish a subbrand to
compete with Marriott
\
and Hampton
Inn.
• Focusing on “road
warriors,” they used TV
spots on a few cable
networks on selected
days to build familiarity
and momentum.
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Broadcast Media Basics
• Media than transmits sounds or images
electronically.
– Radio, TV, video, movie, cell phones
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Bought in time (seconds, minutes).
Messages are fleeting.
Engage sight and sound; more entertaining.
Radio advertising engages the imagination
and television creates powerful brand
imagery.
• Both radio and TV use emotion and
repetition to intensify memory.
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Radio Basics
• More than 10,000
commercial radio
stations, mostly serving
local markets.
• Radio industry growth
is flattening, with only
a 5% increase in
national ad spending
for 2007, and only a
1% decrease in local ad
spending.
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Radio Industry Structure
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The Radio Audience
• Highly segmented by type
of music, format
• Listeners divided into
segments
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Station fans
Radio fans
Music fans
News fans
• Audiences grouped by
dayparts
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Morning Drive: 6–10 a.m.
Mid-Day: 10 a.m.–3 p.m.
Evening Drive: 3–7 p.m.
Evening: 7 p.m.–midnight
Late Night: midnight–6 a.m.
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Radio Audience Measurement
• Coverage (number of homes
able to pick up station;
tuned in or not)
• Ratings (percent of homes
tuned to a station)
• Audience Rating Services
– Arbitron Ratings Company:
estimates audiences for 250
markets in the United States.
– RADAR (Radio’s AllDimension Audience
Research): estimates
audiences for both local and
network radio.
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Radio Advertising
• Delivers high frequency
using jingles for repetition.
• Uses drama to engage the
imagination as in public
service announcements
(PSAs), which are created
free by agency personnel
and run broadcast free by
media.
Principle:
Radio advertising has the power to engage the
imagination and communicate on a more personal level
than other forms of media.
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Radio Revenue Categories
• Network Radio Advertising
– Group of local affiliates connected to one or more national
networks (ABC, CBS, Westwood One, Unistar, Clear Channel)
– National medium for food, beverages, cars, over-the-counter drugs
– Growth has contributed to increase in syndicated radio
• Spot Radio Advertising
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Advertiser places ads with an individual station, not a network
Makes up nearly 80% of all radio advertising due to flexibility.
Messages can be tailored for particular audiences
Flexibly in content, timing, and rates
• Syndicated Radio Advertising
– Offers advertisers a variety of high-quality, specialized, and
usually original programs
– Advertisers value syndicated programming because of the high
level of audience loyalty (the Paul Harvey show)
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Television Basics
• Television is pervasive
– 98% of U.S. homes have at
least one television; 60%
have three or more
televisions.
• Parents and early childhood
experts are concerned about
children’s TV use
– U.S. kids spend about 4
hours/day watching TV
Principle:
Television advertising is tied to television programming
and its effectiveness is determined by the popularity of
the television program.
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Television Industry Structure
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Television Industry Structure
• Network
– 2+ stations broadcasting same
program from a single source; 15+
hours of prime-time per week, 8-11
• Cable and Subscription
– Provides highly targeted, special
interest programs
• Local Television
– Independent (non affiliate) stations
with ads by local retailers, financial
institutions, auto dealers,
restaurants
• Public Television
– Reach well-educated, affluent
households with program
sponsorships
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Distribution & Programming
• Low-power television (LPTV)
– 15-mile radius; used by hotels
• Pay-per-view
– Via satellite, sports/music events
• Program Syndication
– Independent TV and cable stations
purchase reruns
– First-run syndication
• Interactive Television
– TV set with computer capabilities
• High-Definition TV (HDTV)
– High-resolution playback
• Digital Video Recorders (DVRs)
– Record shows to watch whenever
– Commercials can be skipped
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The Television Audience
• Many advertisers still
consider TV their
primary advertising
medium.
• Challenges faced by
advertisers include
viewers switching,
zipping through ads, or
avoiding them entirely
with TiVo.
• Advertisers must learn to
address “clutter” by
creating breakthrough
messages.
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TV Audience Measurement
• Households Using Television (HUT)
measures exposure based on houses with
sets on.
• Impressions—the number of viewers
watching a program—measured by:
– Ratings
– Share
• A.C. Nielsen measures national and local
audiences using people meters and viewer
diaries.
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Television Advertising
• Tells stories,
engages
emotions, creates
fantasies, has
great visual
impact
• Demonstrates
how things work
Principle:
If you are going to use television, design a message that
takes advantage of its visual and emotional impact.
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Forms of TV Advertising
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Table 9.2
Time Is Money: The Top Shows by Ad Rates
2006
$/:30 second
1988
$/:30
American Idol
Desperate Housewives
24
CSI
Grey’s Anatomy
Survivor
$600,000
$394,000
$364,000
$347,000
$344,000
$296,000
Seinfeld
ER
$575,000
$560,000
1992
$/:30
2004
$/:30
Murphy Brown
Roseanne
$310,000
$290,000
Friends
Will & Grace
$473,500
$414,500
1987
$/:30
Cosby Show
Cheers
$369,500
$307,000
2001
$/:30
ER
Friends
$425,400
$353,600
1980
$/:30
M*A*S*H
Dallas
$150,000
$145,000
Sources: Claire Atkinson, “’Desperate Housewives’ Keeps Sunday Rates Competitive,” Advertising
Age, September 21, 2006, http://www.adage.com; 2006–2007 Prime Time TV Season 30 Second Ad
Rates, http://www.frankwbaker.com; Joe Mandese, “The Buying and Selling,” Advertising Age,
Spring 1995, 20; “Top 10 Shows by Ad Rates,” Advertising Age, September 15, 1997, S2.
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Other Broadcast Forms
• Film and Video
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Movie theaters trailers
Ads before DVDs/videos
Videos in stores and offices
Videos on MySpace, YouTube,
video.google.com
• Product Placement
– Company buys verbal or visual
brand exposure in movie or TV
– Less intrusive; product
demonstrated in natural setting
– Unexpected; occurs when viewer
resistance is down
– Unnoticed; product may not match
movie or audience; movie may fail
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Practical Tips
Broadcast Media Advantages and Limitations
Radio Advertising
Advantages
Limitations
Pervasiveness; in most every home and car
Reaches specialized target audiences
Reaches them at critical apertures (morning and
evening drive time)
Affordability
Offers high frequency; music can be repeated
more easily than other forms of advertising
Flexible, easy to change
Good for local tie-ins and promos
Mental imagery can be highly engaging
High level of acceptance; not considered irritating
Audience less likely to switch channels when ads
come on
Listener inattentiveness; may just be on in the
background
Lack of visuals
Clutter
Scheduling and buying difficulties in local buys
Lack of control: talk show content is
unpredictable and may be critical
Television Advertising
Advantages
Limitations
Pervasiveness; in most every home
High level of viewing
Reaches a mass national audience although can
be targeted by programs
High impact: has audio, video, motion, music,
color, high drama
Cost efficient
Clutter—with cable there are a large number of
channels
High production costs
Wasted reach
Inflexibility; can’t easily make last-minute changes
Intrusiveness—some audience resistance to
advertising leads to zipping and zapping
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Movie Advertising
Advantages
Limitations
Captive audience
No need for intrusiveness because audience can’t
do multi-tasking
High impact
Audience resistance is high; hates being a
captive audience
Expensive; needs high value production
Product Placement
Advantages
Limitations
Not as intrusive
If product fits the story line, can be a naturalistic
demonstration or testimony
Association with celebrities
Association with glitzy movie, hopefully a wellliked film
Can get lost in the story
Poor match between product and movie storyline
Movie turns out to be a dud
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