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Chapter 8 Using Television
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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
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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
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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
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Rating Basic measure of television Rating = Program audience
Total TV households
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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.
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GRPs Measure Weight of a Schedule
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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
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The Many Faces of Television
Network television Spot television Local television Syndication Cable television
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Network Television Comprised of local stations that contract to carry network programming Big Four ABC NBC CBS FOX
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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
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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
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Spot Television When national advertisers buy from local stations
Placed through station reps
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Defining the Television Coverage Area
Total survey area Designated market area Metro rating area
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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
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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
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Three-Tier Pricing Structure for Syndication
Top 10 blockbuster = proven off-network reruns Second tier = sizable, loyal audience Talk shows and less popular reruns
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Stripping Most local stations schedule syndicated shows on a five-nights/week basis.
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Examples of Shows in Syndication
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DVR problems Half of recorded shows are never watched
Zipping -- Fast-forward through commercials
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Brand Integration Product placement Sponsor entire program
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Syndicated Rating Services
Nielsen ratings People meter attached to each television set Use of diaries Major areas of concern Sweep weeks Diaries Exposure value
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Nielsen’s People Meter
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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
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