Transcript Chapter 11

Evaluation of
Broadcast Media
(TV and Radio)
Fall 2011
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Television Advantages
Creativity and Impact
Coverage and Cost Effectiveness
Captivity and Attention
Selectivity and Flexibility
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
http://eyeballinthewindow.wordpress.com/2009/02/03/superbowl-xliii-tv-commercial-cpm
TV Commercials on Programs Such As the
Super Bowl Reach Large Audiences
Television Disadvantages
Fleeting
Message
Limited
Attention
Zipping
Cost
Negative
Factors
Low
Selectivity
Clutter
Zapping
Negative
Evaluation
Distrust
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Top 10 Network TV Advertisers
Top 10 Network TV Advertisers
11-5
Digital Video Recorders Such as TiVO
and Netflix are Impacting Television
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
TV Advertising Works Best When…
The budget is large enough to produce
high quality commercials.
The media budget is sufficient to generate and sustain
the number of exposures needed.
The market is large enough and easily reachable
through a specific network, station, or program.
There is a genuine need for a medium with high
creative potential to exert a strong impact.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Network Versus Spot
Affiliated stations
are linked
Network
Purchase transactions
are simplified
Spot &
Local
Commercials shown
on local stations
May be local or “national
spot” commercials
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Trends in Advertising Spending
http://online.wsj.com/article/SB10001424052748704825504574582310496271156.html
Common Television Dayparts
11-10
Cable Television
• Rapid growth during last 20 years
– 91% of households have cable TV via
wired cable or satellite
• Development of superstations
– Independent local stations that send
their signals nationally via satellite
– Sports, movies, and reruns of
network shows
– Carries national advertising
11-11
Advertising on Cable Television
Advantages
1. National, regional,
and local available
2. Highly selective
“narrowcasting”
3. Low cost
Limitations
1. Overshadowed by
major networks
2. Audience
fragmentation
3. Lacks penetration
in major markets
4. Flexibility
11-12
Measuring TV Audiences
Television
Households
Audience
Measures
Program
Rating
Share of
Audience
Households
Using TV
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
TV Audience Measures
Program Rating
Rating =
HH tuned to show
Total U.S. HH
Share of Audience
Share =
HH tuned to show
U.S. HH using TV
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
http://tvbythenumbers.com/2010/10/26/tv-ratings-broadcast-top-25-brett-favre-modern-family-two-anda-half-men-ncis-dwts-the-big-bang-theory-top-week-5-viewing/69680
Accessed: November 1, 2010 - JLS
http://popwatch.ew.com/2010/10/18/american-idol-glee-and-football-top-the-listof-most-expensive-broadcast-tv-shows-for-advertising/
Sweeps Periods Are Used To Measure TV
Audiences
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Radio Differs from TV
Is more limited
communication
Offers only an
audio message
Costs much less
to produce
Has less status
and prestige
Costs much less
to purchase
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advantages and Limitations of Radio
Advantages
Disadvantages
Cost and Efficiency
Creative Limitations
Selectivity
Audience Fragmentation
Flexibility
Chaotic Buying
Mental Imagery
Limited Research Data
Integrated Marketing
Limited Listener Attention
Clutter
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Buying Radio Time
Three national networks
Network
Radio
Over 100 regional/area networks
A multitude of syndicated programs
About 20% of all spots
Allows great flexibility, targeting
National
Spot
Purchase transaction can be difficult
Local
Radio
Nearly 80% of advertisers are local
Local CATV is becoming competitive
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Radio Time Classifications
11-23
Audience Information
Person
estimates
Share
RADAR
Arbitron
Network audience
measures
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Rating
New Digital Technologies are Impacting Radio
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin