McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 14 Using Electronic Media: Television and Radio

14-2 Chapter Overview Factors to evaluate when considering radio & television in the creative mix

14-3 Chapter Objectives Describe pros & cons of broadcast TV as an ad medium Evaluate different types of TV advertising Discuss factors to consider when buying TV time Discuss the pros and cons of cable TV ads Explain the process of buying cable and broadcast TV time Describe TV audience measurement Analyze pros & cons of radio in the creative mix Discuss factors to consider when buying radio time

14-4 The Medium of Television Broadcast TVCable TV VHF and UHF Independent Stations Network Affiliates Premium Services Ad-Supported Networks Superstations

14-5 The Medium of Television ProsCons Mass coverage Relatively low cost Some selectivity High production cost High airtime cost Limited selectivity Impact Creativity Prestige Brevity Clutter Zipping and zapping Social dominance

14-6 TV Audience Trends Demographics DVD Rental Cable households Viewing patterns TV viewing hours Audience fragmentation

14-7 The Medium of Television How adult viewers rate various media

14-8 Types of TV Advertising Sponsorship Participation basis Spot ads Syndication Infomercials

14-9 TV Ad Spending (Billions) Network TV dominates, but is losing ground

14-10 Most Expensive 30-Second Spots

14-11 Network & Syndication Distribution

14-12 Cable TV Pros and Cons ProsCons Selectivity Audience demographics Low cost Limited reach Fragmentation Quality Flexibility Testability Zipping and zapping

14-13 TV Audience Measurement Dayparts Rating Services Defining TV Markets Audience Measures Nielsen & Others Cable Ratings

14-14 TV Audience Measurement Dayparts Rating Services Defining TV Markets Audience Measures Nielsen & Others Cable Ratings Designated Market Areas

14-15 Designated Market Area Columbus, Georgia designated market area

14-16 TV Audience Measurement Daytime9 a.m. – 4 p.m. Early Fringe4 – 5:30 p.m.. Early News5 or 5:30 – 7:30 p.m. Access7:30 – 8 p.m. Prime Time8 – 11 p.m. Late News11 – 11:30 p.m. Late Fringe11:30 – 1 a.m. Dayparts Rating Services Defining TV Markets Audience Measures Nielsen & Others Cable Ratings Designated Market Areas

14-17 TV Audience Measurement Dayparts Rating Services Defining TV Markets Audience Measures Nielsen & Others Cable Ratings Designated Market Areas TV Households Households Using TV Program Rating Audience Share Total TVHH in area TVHH tuned to program =Rating

14-18 Buying TV Time Cost per Point =CPP Rating Cost Cost per Thousand Thousands of People =CPM Cost Gross Rating Points Reach (avg rating) × Frequency =GRP

14-19 Buying TV Time 2. Select most efficient programs 3. Negotiate prices and contracts 1. Request avails from media rep

14-20 Other Forms of Television DBS MDS STV SMATV

14-21 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 2.5 hours per day Radio’s reach exceeds other media

14-22 Most Popular Program Formats

14-23 Pros and Cons of Radio Ads Pros Cons Reach & frequency Selectivity Cost efficiency Limitations of sound Segmented audiences Short-lived, half heard Testability Timeliness & immediacy Clutter Local relevance Creative flexibility

14-24 Mini-network Programming Each network targets a specific demographic group

14-25 Special Programming Radio stations can increase market share with special programming

14-26 Buying Radio Time LocalNetworkSpot

14-27 Key Radio Terms Morning drive6 a.m. – 10 a.m. Daytime10 p.m. – 3 p.m. Afternoon drive3 p.m. – 7 p.m. Nighttime7 p.m. – midnight All nightMidnight – 6 a.m. Dayparts Cumes Average quarter- hour audiences

14-28 Ratings Based on Dayparts 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= Cume Estimates Cume Rating= Population Reach Potential × 100

14-29 Satellite Radio Sirius & XM are major players Over 16 million listeners Many program choices Exclusive programming