Chapter 8 Using Television
Television Pros Reaches 98% of all U.S. households – Mass coverage and low cost Offers creative flexibility - Selectivity Efficient for large advertisers to reach a mass audiences Digital television will open more opportunities for advertising Creativity Prestige Social Dominance
Television Cons Message is perishable; easily forgotten Audience is fragmented; skewed toward lower income consumers Shorter spots (Brevity) Clutter Zapping -- Remote controls and channel surfing
Limitations of Television Cost of commercials Household viewing hours remain constant Fragment audience Lower ratings Competitive environment for viewer’s time and attention Growing use of shorter spots
Rating Basic measure of television Rating = Program audience Total TV households
Gross Rating Points Gross rating points illustrate the weight of a schedule in terms of the total ratings for all spots bought. Each rating point represents 1% of the universe being measured for the market. GRPs are a function of reach and frequency. They are calculated by multiplying insertions by the rating.
GRPs Measure Weight of a Schedule
Share of Audience Percentage of households using television that are watching a particular show Share = Number of viewers per a certain show Households using television
The Many Faces of Television Network television Spot television Local television Syndication Cable television
Network Television Comprised of local stations that contract to carry network programming Big Four ABC NBC CBS FOX
Dayparts Morning, 7:00-9:00am Monday-Friday Daytime, 9:00am-4:30pm Monday-Friday Early fringe, 4:30-7:30pm Monday-Friday Prime-time access, 7:30-8:00pm Monday-Saturday Prime time, 8:00-11:00pm Monday-Saturday, 7:00-11:00pm Sunday Late news, 11:00-11:30pm Monday-Friday Late fringe, 11:30pm-1:00am Monday-Friday
Terminology Clearance – the percentage of the network’s lineup that has agreed to clear their schedule for network programming Compensation – networks share advertising revenues with their affiliates in return for using local station time for its programs Block programming – “hammock position” – new show in between two hit shows
Spot Television When national advertisers buy from local stations Placed through station reps
Defining the Television Coverage Area Total survey area Designated market area Metro rating area
Local Television Advertising TV day spot buying Pre-emptive rate Station sells slot to another advertiser if better rate comes along or for a package deal. Run of schedule (ROS) Lower rate because station uses whenever spot is available Package rates
Television Syndication Sale of television programming on a station-by-station, market-by-market basis Barter syndication: offer right to run show in exchange for commercial time during the show
Three-Tier Pricing Structure for Syndication Top 10 blockbuster = proven off-network reruns Second tier = sizable, loyal audience Talk shows and less popular reruns
Stripping Most local stations schedule syndicated shows on a five-nights/week basis.
Examples of Shows in Syndication
DVR problems Half of recorded shows are never watched Zipping -- Fast-forward through commercials
Brand Integration Product placement Sponsor entire program
Syndicated Rating Services Nielsen ratings People meter attached to each television set Use of diaries Major areas of concern Sweep weeks Diaries Exposure value
Nielsen’s People Meter
Summary Television is more than an information medium. Television is becoming an interactive system. Television is becoming the gateway to communication. Medium filled with opportunities