BROADCAST ADVERTISING The Players • • • • • • Advertisers Agencies Media Regulators Sales Reps Support – research, buyers, etc. Reach • The number of unduplicated exposures. • i.e.
Download ReportTranscript BROADCAST ADVERTISING The Players • • • • • • Advertisers Agencies Media Regulators Sales Reps Support – research, buyers, etc. Reach • The number of unduplicated exposures. • i.e.
BROADCAST ADVERTISING The Players • • • • • • Advertisers Agencies Media Regulators Sales Reps Support – research, buyers, etc. Reach • The number of unduplicated exposures. • i.e. the number of different people that see or hear an advertisement Frequency • The average number of duplicate exposures. • i.e. the number of times someone is exposed to an advertisement Reach vs. Frequency • The best media vehicle for reach is network television. • TV penetration rates are near 100%. • With a single buy, an advertiser can reach millions of households, and tens of millions of viewers. • Too expensive for high frequency. Reach vs. Frequency • Billboards and Newspapers are best for frequency. • If someone reads a newspaper, they likely read it every day. • If someone passes a billboard, they likely pass the same billboard every day. Reach vs. Frequency • Generally, reach and frequency are mutually exclusive. A medium that delivers one, will not deliver the other. • Radio is possibly the best combination of reach and frequency. • Radio has high penetration, and is cheap enough to allow frequency. Demographics • The more specific the demographics of the audience – the higher the cost to reach the audience. • Minimizing waste circulation. – Attracting a qualified audience of true prospective buyers for the product. Cost per Thousand (CPM) • The cost of reaching one thousand households, viewers, listeners, readers, drivers, etc. • Allows advertisers to cross-compare among several media. Audience Research • Began in 1929 with Archibald Crossley. • The “Hooperatings” dominated from the mid-30s to the 40s. Phone interviews. • A.C. Nielsen began audience research in the 1940s. • Arbitron (A.R.B.) established in 1949. A.C. Nielsen • • • • Originally both radio and TV. Developed the audimeter. Now only TV. Use diaries, audimeters and people meters. Arbitron • Now only radio. • Must rely on diaries. • Experimenting with the passive people meter (PPM). Statistics • Quarter-hour people (QHP), the average number people who listen to a station for at least five minutes within a fifteen minute block. Statistics • TVHH = television households. The number of households equipped with TVs. • HUT = the homes using television. The number of households with their TVs actually turned on. Statistics • Shares = the percentage of the HUT. • Ratings = the percentage of the TVHH. Television Households Home Using Television (HUT level) = 50 Tuned In Rating = 25 Share = 50 Problems in Audience Research • • • • Absenteeism Hypoing Falsifying diaries Poor diary return rates Selling advertising • Networks sell audiences. • Sales based on ratings points. • If guarantee not met – then network provides make goods. • Short rates are higher rates charged when a contract is cancelled before completion. Selling Advertising • • • • Local Stations sell time. 30s, 60s, - less often 15s, 90s, 120s Sell by daypart. ROS, TAP, BTA Radio Dayparts • • • • • Morning drivetime: 6:00 – 10:00 AM Midday: 10:00 AM – 3:00 PM Afternoon drivetime: 3:00 PM – 7:00 PM Evening: 7:00 PM – midnight Overnight: Midnight – 6:00 AM Television Dayparts • • • • • • • Morning: 6:00 – 10:00 AM Midday: 10:00 AM – 3:00 PM Afternoon: 3:00 PM – 7:00 PM Early Fringe: 7:00 – 8:00 PM Prime time: 8:00 – 11:00 PM Late Fringe: 11:00 PM - midnight Late night: Midnight – 6:00 AM Types of advertising • • • • Co-op Barter Barter Syndication Sponsorship versus spot buying