Television Bureau of Advertising Spot 101 An Introduction to Planning and Buying Local Broadcast Television

2 Spot Television buys are often among the largest investments an advertiser will make. In fact, advertisers spend more money on Local Broadcast Television than on Network, Cable or Syndication. The Spot Television Medium

3 TV Ad Expenditures Source: TNS 2008 (Most Recent Annual, in Millions)

4 TV Programs and Commercials are Delivered in a Variety of Ways: Network – Simultaneous station telecast of programming and commercials to 95% of the US (e.g. NBC). Syndication – Individual station telecasts in markets (e.g. Oprah). “Cleared” markets are grouped, so advertising time can be sold to national advertisers. TV Distribution

5 TV Programs and Commercials are Delivered in a Variety of Ways: Spot – Programming and commercials telecast by individual stations in individual markets (e.g. WLS-TV/Chicago). Cable – Programming delivered via cable into the home (e.g. Lifetime). Cable can be Network or Spot. TV Distribution

6 A spot buy is local or national depending on the following criteria: Who the advertiser is. National companies distributing products into many US markets, such as Kraft = National Spot. Local companies advertising in their own market, such as Banks = Local Spot. How the time is bought. If bought through national rep firms, it’s national spot. If bought directly from the stations, it’s local spot. Local Spot or National Spot

7 O&O – Owned and Operated by a TV network. Affiliate – Independently owned, but affiliated with a TV network. Broadcasts that network’s programming. Independent – Independently owned and programmed. Public – Non-commercial. Types of Stations

8 Nielsen divides the US into 210 Designated Market Areas (DMAs) based on viewing. A television station is assigned to the market where its signal originates. TV Markets (DMA’s)

9 Sight, sound, motion, emotion. Television offers advertisers a broad range of creative options to capture viewer attention. A Few Nice Words About Television

10 More of an advertiser’s prospective customers, in almost every major demographic segment – for longer periods of time every day than any other medium. Television Reach Source: TVB - Nielsen Media Comparisons Study 2008

11 Television Reaches More Adults Each Day than Any Other Medium A18+ % Reached Yesterday Source: TVB - Nielsen Media Comparisons Study 2008

12 Adults Spend More Time with Television Each Day Than They Do with Any Other Medium A18+ Minutes Spent Source: TVB - Nielsen Media Comparisons Study 2008

13 More Adults Learn About Products From TV Source: TVB - Nielsen Media Comparisons Study 2008 A18+

14 TV is the Most Authoritative, Exciting, Influential and Persuasive Medium TelevisionNewspapersMagazinesRadioInternet Most Authoritative Most Exciting Most Influential Most Persuasive Source: TVB, Nielsen Media Comparisons Study 2008

Why Spot? Television is usually an essential element of a media plan. If Network can reach all of the US, why use Spot?

16 Large or small, Rolling out nationally, Limited by distribution, Dependent on key markets, In test, … If your brand is… Why Spot?

17 Interested in local promotions Under competitive assault Advertising nationally and under-delivering key markets Want to keep brand top-of-mind Subject to budget limitations … Spot can help achieve your goals. Why Spot?

18 Geographic Targeting Identifying a brand’s best prospects, and reaching them where they live and shop, is a powerful media strategy. In fact, geography can be more predictive of sales than demography (age/sex). Why Spot?

19 Source: The Lifestyle Market Analyst-2008 Own Smart Cellular Phones Index to the national average (100). Geographic Targeting

20 Cruise Ship Vacations Index to the national average (100). Geographic Targeting Source: The Lifestyle Market Analyst-2008

21 Stock / Bond Investments Index to the national average (100). Geographic Targeting Source: The Lifestyle Market Analyst-2008

22 This kind of local market selectivity even extends to the purchase of individual brands. Different market groups can over-deliver average U.S. sales by significant margins. Geographic Targeting

23 DTC Allergy Relief The best 1/3 of the US indexes at 148. Source: IMS prescription data/MRI - Based on Brand Sales (BDI) Geographic Targeting

Coke Classic The best 1/3 of the US indexes at 153. Source: IRI/MRI - Based on Brand Sales (BDI) Geographic Targeting

Oreo Cookies The best 1/3 of the US indexes at 124. Source: IRI/MRI - Based on Brand Sales (BDI) Geographic Targeting

BMW 530 The best 1/3 of the US indexes at 224. Source: Polk Special tabulation/MRI - Based on Brand Sales (BDI) Geographic Targeting

Advertising to consumers who are more likely to buy, based on demography and geography, can boost brand sales. Geographic Targeting

28 Television Markets Vary By Ethnicity The top 25 African American Markets reach 61.5% of all African American households. The top 25 Hispanic Markets reach 76.1% of all Hispanic households. Ethnic Targeting

29 Top 10 African American Markets Source: Nielsen Media Research, NSI, Jan 2009 Rank* DMA RankMarket A-A TV HH DMAs % of Total US A-A TV HH Cumulative % Total US A-A TV HH A-A TV HH % of DMA HH 11New York, NY1,272, % 17.12% 28Atlanta, GA653, % 27.57% 33Chicago, IL601, % 17.22% 49Washington, DC (Hagerstown, MD)563, % 24.27% 54Philadelphia, PA534, % 18.10% 62Los Angeles, CA482, % 8.53% 711Detroit, MI395, % 20.50% 810Houston, TX373, % 17.72% 95Dallas-Ft. Worth, TX356, % 14.33% 1026Baltimore, MD298, % 27.07%

30 Top 10 Hispanic Markets Source: Nielsen Media Research, NSI, Jan 2009 Rank*DMA RankMarket Hispanic TV HH DMAs % of Total US Hispanic TV HH Cumulative % Total US Hispanic TV HH Hispanic TV HH % of DMA HH 12Los Angeles, CA1,854, % 32.80% 21New York, NY1,242, % 16.71% 316Miami-Fort Lauderdale, FL658, % 42.57% 410Houston, TX549, % 26.11% 55Dallas-Ft. Worth, TX488, % 19.60% 63Chicago, IL485, % 13.89% 737San Antonio, TX382, % 46.79% 812Phoenix, AZ381, % 20.54% 96San Francisco-Oakland-San Jose, CA377, % 15.25% 1087Harlingen-Weslaco-Brownsville- McAllen, TX 291, % 83.23%

31 Local TV is Not all the Same Spot Television is a proven media strategy. But consider it carefully...

32 Local Cable can be an effective choice for: Children audiences Small trading areas HS sports sponsorships... Local TV is Not all the Same

33 Broadcast reaches many more people, more frequently and at much lower cost-per-1,000 viewers. Local TV is Not all the Same

34 Find out about the nuances of a market’s viewers, lifestyles and television options. A Few Tips on Buying Spot

35 Tip #1: Make your buying guidelines as specific as possible. Tip #2: Talk to the competition – this is good leverage in negotiation. A Few Tips on Buying Spot

36 Tip #3: See the station guys – use every meeting to learn something new about the market. Tip #4: Be responsive and expect the same from the seller. A Few Tips on Buying Spot

37 Tip #5: Challenge the station to offer creative options and the best priced packages. A Few Tips on Buying Spot

38 Does the coverage area match my client’s Retail Trading Area? Can I choose programs or will my messages rotate through broad dayparts? Questions To Help You Buy the Market

39 Will my commercial air in all homes that receive your programming? Will you provide proof of performance for all of the spots I pay for? Questions To Help You Buy the Market

40 TVB offers Advertisers and Agencies (planners or buyers) a full range of information about Local Television at tvb.org: Buying Spot Television

41 The Resource Channel on the TVB web site was created for advertisers and agencies. We invite you to visit and learn more about things like: Planning and Buying Spot Television Local Broadcast TV vs. Other Media ePort: Enabling electronic buying and selling processes Buying Spot Television

Television Bureau of Advertising Thank you See you at