Commercialism Maximize Profits cheapest programming cheapest programming repeat programs/commercials repeat programs/commercials Re-runs a profitable goal.

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Presentation transcript:

Commercialism Maximize Profits cheapest programming cheapest programming repeat programs/commercials repeat programs/commercials Re-runs a profitable goal Re-runs a profitable goal Media Consolidation Media Consolidation Aided by Telecom Act/ 1996 Aided by Telecom Act/ 1996

Broadcasting Ad time sold: major goal Cable/DBS/etc. Subscription based Ad based [growing] Internet Ads [Web-hits count] Subscriptions

Advertising Types 1)local 2)national-spot 3)network 4) Infomercial 5) Internal promotion

finite space flexible space

1)Relative Audience (in relation to competitors) 2) Absolute Audience (in relation to all programs)

Ad-time Purchases fixed position fixed position definitive time/definitive show definitive demographic reached definitive demographic reached run-of-schedule run-of-schedule time blocks packages packages cluster buys

Sales Location local stations local stations network level network level National firms National firms ad agency (e.g.)

Ads on the Internet What is the best approach? What is the best approach? More ads there daily More ads there daily Browser-pages attractive Browser-pages attractive All Major Corporations Present All Major Corporations Present 35 million [95] Billions now 35 million [95] Billions now Soon exceed Cable & radio Soon exceed Cable & radio

Agencies: Madison Ave. Major league creativity Major league creativity Research, design, buy time Research, design, buy time An all service agency An all service agency Coke ads break new ground Coke ads break new ground 15% agency commission 15% agency commission Competitive: great work Competitive: great work Assist developing products Assist developing products

Self-Regulation NAB Code NAB Code individual stations individual stations audience/sensitivitiesaudience/sensitivities Booze ads, run or pullBooze ads, run or pull Public OpinionPublic Opinion

Programming (least-objectionable) Original Original 1)network 2)local (mostly news) Syndicated Syndicated 1)often post first-run 2)original (Rose)

Radio network affiliation network affiliation talk shows/news programs services programs services individual shows or blocks Radio will face huge change

Programming Strategies What leads-in/lead-outs What leads-in/lead-outs Block programming Block programming Counterprogramming Counterprogramming Cross-promotion Cross-promotion Disney cross promotes Disney cross promotes

Affiliate Rights Rejection of programming Rejection of programming Resheduling of shows Resheduling of shows 1)offensive to audience/owners 2)limitations [locally] (Circumsribed) (Circumsribed)

Ratings: US Skill diaries diaries meters meters new technologies new technologies fine tuned science fine tuned science Statistical Projections to Entire Audience

Nielson Radio Radio Metro Surveys Metro SurveysAreas Area of Area ofDominantInfluence Television Television Designated Designated Market Area Arbitron

Rating=households in market Share=households watching given channel given channel(percentages) HUT=households using TV PUR=persons using radio Cume=cumulative # over extended period