1. Chapter 14 Using Electronic Media: Television and Radio
William F. Arens Michael F. Weigold Christian Arens
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

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

3. Chapter Objectives
Describe pros & cons of broadcast TV as an ad medium
Evaluate cable TV as an advertising medium and explain how it differs from broadcast TV
Explain the process of buying cable and broadcast TV time
Evaluate the available types of television advertising
Describe the process of TV audience measurement
Discuss factors to consider when buying TV time
Analyze pros and cons of using radio in the creative mix
Discuss factors to consider when buying radio time

4. TV Viewers
Heaviest viewers Middle income, high school grads and families
Increased viewing hours Average American spends 4 hours/day watching TV
World wide, older women watch most Average 36 hours/week
Broadcast vs. cable Homes with cable watch less broadcast TV
Many channels causes audience fragmentation
DVD viewing has increased

5. Broadcast vs. Cable Viewer Characteristics

6. TV Audience Advertising Beliefs
How adult viewers rate various media

7. The Medium of Television
Broadcast TV
Cable TV
VHF and UHF
Many Stations, some PPV
Independent Stations
Special Interest Stations
Network Affiliates
Compete for Ads

8. Q. 1. What are the various TV audience trends?

9. TV Audience Trends Demographics Cable households DVD Rental
Viewing patterns
TV viewing hours
Audience fragmentation

10. Major Cable Networks

11. Q. 2. What are the pros and cons of TV advertising?

12. The Medium of Television
Pros
Cons
Mass coverage
High production cost
Relatively low cost
High airtime cost
Some selectivity
Limited selectivity
Impact
Brevity
Creativity
Clutter
Prestige
Zipping and zapping
Social dominance

13. Q. 3. What are the pros and cons of Cable TV advertising?

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

15. Digital TV Advantages Improved picture and sound
Increased number of channels
Interactive video and data
Efficiency through multicasting

16. TV Use of TV in IMC Niche medium Cost effective Leverage Tool
Imparts brand meaning
Leverage Tool

17. Q. 4. How do advertisers buy time on TV?

18. Types of TV Advertising
Sponsorship
Spot ads
Syndication
Direct response
Local – LaVerge Beverage Depot

19. TV Ad Spending (Billions)
Network TV dominates, but is losing ground

20. Most Expensive 30-Second Spots

21. Types of TV Advertising
Prime time’s most expensive 30-second spots
How much for a 30-second spot?
Insert ex. 16-7, p. 517
Ad cost per 30-sec spot
Position = 2.9”horiz., 1.5” vertical
Size = 4.6” TALL
Resolution: 300 dpi

22. TV vs. Magazine Cost Comparison
Cost of Ad = $700,00.00
Reach = 4,000,000
Cost Per thousand (CPM) = 700,000/4,000,000/1000
Cost Per thousand (CPM) = $175.00
Magazine
Cost of Ad = $100,00.00
Reach = 200,000
Cost Per thousand (CPM) = 100,000/200,000/1000
Cost Per thousand (CPM) = $500.00

23. Network & Syndication Distribution

24. Why Direct Response Works
Consumers pay attention; respond immediately
Competitive advantage for brand managers
Sufficient time for brand differentiation
Results measurable and accountable
Ad campaign can pay for itself
Combines power of advertising, direct response, and sales promotion

25. Defining Television Markets
DMA- designated market area for local stations
Columbus, Georgia designated market area

26. Q. 5. How do advertisers measure their audience?

27. TV Audience Measurement
Rating Services
Defining TV Markets
Dayparts
Audience Measures
Nielsen & Others
Cable Ratings

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

29. Designated Market Area
Columbus, Georgia designated market area

30. TV Audience Measurement
Rating Services
Defining TV Markets
Dayparts
Audience Measures
Nielsen & Others
Designated Market Areas
Daytime
9 a.m. – 4 p.m.
Early Fringe
4 – 5:30 p.m..
Early News
5 or 5:30 – 7:30 p.m.
Access
7:30 – 8 p.m.
Prime Time
8 – 11 p.m.
Late News
11 – 11:30 p.m.
Late Fringe
11:30 – 1 a.m.
Cable Ratings

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

32. Defining Television Markets
Dayparts

33. TV Audience Measurement
Audience Measures
TV Households
TVHH
Program Rating
Total TVHH in area
TVHH tuned to program
Households Using TV
HUT
Audience Share
HUT
# of viewers

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

35. Buying TV Time 1. Determine program availability
2. Analyze program efficiency
3. Negotiate price
4. Determine reach and frequency
5. Sign broadcast contracts
6. Review performance affidavits

36. 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

37. Use of Radio in IMC Involves people Establishes intimate relationship
Favors integrated marketing
Maintain strategic consistency
Target demographic group
Stretch media dollars

38. Most Popular Program Formats

39. Q. 6. What are the pros and cons of Radio advertising?

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

41. Mini-network Programming
Each network targets a specific demographic group

42. Q. 7. How do Radio advertisers buy time?

43. Buying Radio Time Network Spot Local
Radio stations can increase market share with special programming

44. Average quarter-hour audiences
Key Radio Terms
Cumes
Average quarter-hour audiences
Dayparts
Morning drive
6 a.m. – 10 a.m.
Daytime
10 p.m. – 3 p.m.
Afternoon drive
3 p.m. – 7 p.m.
Nighttime
7 p.m. – midnight
All night
Midnight – 6 a.m.

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

46. Satellite Radio Sirius & XM are major players
Over 16 million listeners
Many program choices
Exclusive programming

47. Preparing a Radio Schedule
ID stations with greatest concentration (cume) of target audience
ID stations whose format offers highest concentration of buyers
Determine which dayparts offer the most potential buyers
Construct schedule with strong mix of best times
Assess proposed buy in terms of reach and frequency
Determine cost/1000 target people
Negotiate and place the buy