1. BROADCAST ADVERTISING

2. The Players AdvertisersAdvertisers AgenciesAgencies MediaMedia RegulatorsRegulators Sales RepsSales Reps Support – research, buyers, etc.Support – research, buyers, etc.

3. Reach The number of unduplicated exposures.The number of unduplicated exposures. i.e. the number of different people that see or hear an advertisementi.e. the number of different people that see or hear an advertisement

4. Frequency The average number of duplicate exposures.The average number of duplicate exposures. i.e. the number of times someone is exposed to an advertisementi.e. the number of times someone is exposed to an advertisement

5. Reach vs. Frequency The best media vehicle for reach is network television.The best media vehicle for reach is network television. TV penetration rates are near 100%.TV penetration rates are near 100%. With a single buy, an advertiser can reach millions of households, and tens of millions of viewers.With a single buy, an advertiser can reach millions of households, and tens of millions of viewers. Too expensive for high frequency.Too expensive for high frequency.

6. Reach vs. Frequency Billboards and Newspapers are best for frequency.Billboards and Newspapers are best for frequency. If someone reads a newspaper, they likely read it every day.If someone reads a newspaper, they likely read it every day. If someone passes a billboard, they likely pass the same billboard every day.If someone passes a billboard, they likely pass the same billboard every day.

7. Reach vs. Frequency Generally, reach and frequency are mutually exclusive. A medium that delivers one, will not deliver the other.Generally, reach and frequency are mutually exclusive. A medium that delivers one, will not deliver the other. Radio is possibly the best combination of reach and frequency.Radio is possibly the best combination of reach and frequency. Radio has high penetration, and is cheap enough to allow frequency.Radio has high penetration, and is cheap enough to allow frequency.

8. Demographics The more specific the demographics of the audience – the higher the cost to reach the audience.The more specific the demographics of the audience – the higher the cost to reach the audience. Minimizing waste circulation.Minimizing waste circulation. –Attracting a qualified audience of true prospective buyers for the product.

9. Cost per Thousand (CPM) The cost of reaching one thousand households, viewers, listeners, readers, drivers, etc.The cost of reaching one thousand households, viewers, listeners, readers, drivers, etc. Allows advertisers to cross-compare among several media.Allows advertisers to cross-compare among several media.

10. Audience Research Began in 1929 with Archibald Crossley.Began in 1929 with Archibald Crossley. The “Hooperatings” dominated from the mid-30s to the 40s. Phone interviews.The “Hooperatings” dominated from the mid-30s to the 40s. Phone interviews. A.C. Nielsen began audience research in the 1940s.A.C. Nielsen began audience research in the 1940s. Arbitron (A.R.B.) established in 1949.Arbitron (A.R.B.) established in 1949.

11. A.C. Nielsen Originally both radio and TV.Originally both radio and TV. Developed the audimeter.Developed the audimeter. Now only TV.Now only TV. Use diaries, audimeters and people meters.Use diaries, audimeters and people meters.

13. Arbitron Now only radio.Now only radio. Must rely on diaries.Must rely on diaries. Experimenting with the passive people meter (PPM).Experimenting with the passive people meter (PPM).

14. Statistics Quarter-hour people (QHP), the average number people who listen to a station for at least five minutes within a fifteen minute block.Quarter-hour people (QHP), the average number people who listen to a station for at least five minutes within a fifteen minute block.

15. Statistics TVHH = television households. The number of households equipped with TVs.TVHH = television households. The number of households equipped with TVs. HUT = the homes using television. The number of households with their TVs actually turned on.HUT = the homes using television. The number of households with their TVs actually turned on.

16. Statistics Shares = the percentage of the HUT.Shares = the percentage of the HUT. Ratings = the percentage of the TVHH.Ratings = the percentage of the TVHH.

17. Television Households

18. Home Using Television (HUT level) = 50

19. Tuned In Rating = 25Share = 50

20. Problems in Audience Research AbsenteeismAbsenteeism HypoingHypoing Falsifying diariesFalsifying diaries Poor diary return ratesPoor diary return rates

21. Selling advertising Networks sell audiences.Networks sell audiences. Sales based on ratings points.Sales based on ratings points. If guarantee not met – then network provides make goods.If guarantee not met – then network provides make goods. Short rates are higher rates charged when a contract is cancelled before completion.Short rates are higher rates charged when a contract is cancelled before completion.

22. Selling Advertising Local Stations sell time.Local Stations sell time. 30s, 60s, - less often 15s, 90s, 120s30s, 60s, - less often 15s, 90s, 120s Sell by daypart.Sell by daypart. ROS, TAP, BTAROS, TAP, BTA

23. Radio Dayparts Morning drivetime: 6:00 – 10:00 AMMorning drivetime: 6:00 – 10:00 AM Midday: 10:00 AM – 3:00 PMMidday: 10:00 AM – 3:00 PM Afternoon drivetime: 3:00 PM – 7:00 PMAfternoon drivetime: 3:00 PM – 7:00 PM Evening: 7:00 PM – midnightEvening: 7:00 PM – midnight Overnight: Midnight – 6:00 AMOvernight: Midnight – 6:00 AM

24. Television Dayparts Morning: 6:00 – 10:00 AMMorning: 6:00 – 10:00 AM Midday: 10:00 AM – 3:00 PMMidday: 10:00 AM – 3:00 PM Afternoon: 3:00 PM – 7:00 PMAfternoon: 3:00 PM – 7:00 PM Early Fringe: 7:00 – 8:00 PMEarly Fringe: 7:00 – 8:00 PM Prime time: 8:00 – 11:00 PMPrime time: 8:00 – 11:00 PM Late Fringe: 11:00 PM - midnightLate Fringe: 11:00 PM - midnight Late night: Midnight – 6:00 AMLate night: Midnight – 6:00 AM

25. Types of advertising Co-opCo-op BarterBarter Barter SyndicationBarter Syndication Sponsorship versus spot buyingSponsorship versus spot buying