chapter 12 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Electronic Media: Television and Radio

12-3 Chapter 12 Objectives Describe advantages and drawbacks of broadcast TV as an ad medium Discuss advantages and drawbacks of cable TV as an ad medium Explain the process of buying cable and broadcast TV time Evaluate different types of TV advertising Describe the process of TV audience measurement Discuss the main factors to consider when buying TV time Explain major factors to consider when buying radio time Analyze pros and cons of using radio in the creative mix

12-4 The Medium of Television Broadcast TVCable TV Attracts most natl advertising Independent Stations Network Affiliates Premium Services Ad-Supported Networks Superstations TV Audience Trends Demographics DVD Rental TV on over 8 hours/day Cable Households Fragmentation Number of Channels

12-5 The Medium of Television Types of local, network and cable TV ads Sponsorship Participation Basis Spot Ads Syndication Program-Length Ads (Infomercials)

12-6 The Impact of Technology Alternatives to the TV commercial

12-7 Types of TV Advertising Network and syndication distribution

12-8 Video Alternatives to TV Commercials TV product placementsFilm product placements Prefilm commercials in cinemas Commercials at Service Stations

12-9 Dayparts Rating Services Defining TV Markets Audience Measures TV Audience Measurement Nielsen & Networks Cable Ratings

12-10 Dayparts Rating Services Defining TV Markets Audience Measures TV Audience Measurement Nielsen & Networks Cable Ratings Designated Market Areas

12-11 TV Audience Measurement Early Morning Daytime 6 – 9 A.M. 9 A.M. – 4:30 P.M Early Fringe4:30 – 7:30 P.M. Prime Access7:30 – 8 P.M. Prime Time8 – 11 P.M. Late News11 – 11:30 P.M. Late Fringe11:30 – 2 A.M. Dayparts Rating Services Defining TV Markets Audience Measures Nielsen & Networks Cable Ratings Designated Market Areas

12-12 TV Audience Measurement Dayparts Rating Services Defining TV Markets Audience Measures Nielsen & Networks Cable Ratings Designated Market Areas TV Households Households Using TV Program Rating Audience Share Total TVHH in area TVHH tuned to program =Rating

12-13 Buying TV Time Cost per Thousand Cost per Point Gross Rating Points Reach (avg. rating) × Frequency =GRP =CPP Rating Cost Thousands of People =CPM Cost 1. Select most efficient program 2. Negotiate prices and contracts

12-14 The Medium of Radio Who uses radio? 93% of U.S adults listen each week 72% of U.S. adults listen every day Average time is 3 hours per day Benefits Cost effective Represents 29% of consumers media use time

12-15 The Medium of Radio Stations in the most common programming formats

12-16 Buying Radio Time Morning drive6 A.M. – 10 A.M. Daytime10 A.M. – 3 P.M. Afternoon drive3 P.M. – 7 P.M. Nighttime7 P.M. – midnight All nightMidnight – 6 A.M. Local Radio Network Spot Radio Dayparts

12-17 Cume Rating = Population Reach Potential × 100 Buying Radio Time Ratings Based on Dayparts Cume Estimates Gross Rating Points (GRP) Average Quarter-Hour (AQH) Total Audience Plan (TAP) Run-of-Station (ROS) AQH Rating Population = AQH Persons × 100 GRPAQH Rating × No. of Spots=