1. © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. Chapter 16 Using Electronic Media: Television and Radio Presents the important factors advertisers need to evaluate when considering the use of radio and television in the creative mix

3. Objectives Describe advantages and drawbacks of broadcast TV as an ad medium Explain the process of buying cable and broadcast TV time Discuss advantages and drawbacks of cable TV as an ad medium Evaluate the different types of TV advertising Describe the process of TV audience measurement Analyze the pros and cons of using radio in the creative mix Explain the major factors to consider when buying radio time Discuss the main factors when buying TV time

4. The Medium of Television Broadcast TV VHF UHF Cable TV TV audience trends Use of television in IMC

5. Types of TV Advertising Network advertising Sponsorship Participation Spot announcements Syndication Program-Length Ads Off-network First-run Barter

6. Types of TV Advertising Network advertising Local TV advertising

7. Pros and Cons of Broadcast TV Advertising Pros Mass coverage Low cost Some selectivity Impact Creativity Prestige Social dominance

8. Pros and Cons of Broadcast TV Advertising Cons Brevity Clutter Zipping and zapping High production cost High air-time cost Limited selectivity

9. Exchanges perception, satisfaction TV Audience Measurement Rating services: The book Cable ratings Neilsen SMRB Mediamark Defining television markets Designated market areas (DMAs)

10. Exchanges perception, satisfaction TV Audience Measurement Dayparts Combine as early fringe Daytime 9 A.M. – 4 P.M (EST) Early fringe 4 – 5:30 P.M. (EST) Early news 5 or 5:30 – 7:30 P.M. (EST) Prime access 7:30 – 8 P.M. (EST) Prime: 8 – 11 P.M. (EST) Combine as late fringe Late news: 11 – 11:30 P.M. (EST) Late fringe: 11:30-1 A.M. (EST)

11. Exchanges perception, satisfaction TV Audience Measurement Dayparts Audience measures TV households (TVHH) Households using TV (HUT) Program rating Rating = TVHH tuned to a specific program Total TVHH in area

12. Exchanges perception, satisfaction TV Audience Measurement Dayparts Audience measures Gross rating points = Reach (average rating) x Frequency Gross Rating Points (GRPs)

13. Exchanges perception, satisfaction Buying Television Time Requesting avails Selecting programs for buys Media buyer selects the most efficient program Cost per point (CPP): CPP = Cost / Rating Cost per thousand (CPM): Cost / Thousands of people

14. Exchanges perception, satisfaction Buying Television Time Requesting avails Selecting programs for buys Negotiating prices and contracts Preemption rate Affidavit of performance Makegoods

15. Exchanges perception, satisfaction Buying Television Time Requesting avails Selecting programs for buys Negotiating prices and contracts Electronic media buying software

16. Other Forms of Television DBS beams programs from space via satellite MDS: microwave delivery system SMATV uses a satellite dish to capture signals STV: over-the-air Pay TV

17. The Medium of Radio Who uses radio? The use of radio in IMC Imagery Transfer Radio programming and audiences

18. The Medium of Radio Radio programming and audiences Programming formats

19. Buying Radio Time Types of radio advertising Networks Spot radio Local radio Radio Terminology Dayparts Gross rating points

20. Buying Radio Time Types of radio advertising Radio Terminology 6am-10amMorning drive 10am-3pmDaytime 3pm-7pmAfternoon drive 7pm-midnightNighttime Midnight-6amAll night

21. Buying Radio Time Radio Terminology Average Quarter-Hour Audience Average Quarter-Hour Rating Average Quarter-Hour Share AQH persons Population X 100 AQH persons of a station AQH persons of all stations X 100 Gross impressions Population X 100 Gross Rating Points Cume Estimates

22. Seven Steps in Preparing a Radio Schedule 1. Identify stations with the greatest concentration of the target audience 2. Identify stations whose format offers the highest concentration of potential buyers

23. Seven Steps in Preparing a Radio Schedule 3. Determine which dayparts on those stations offer the most potential buyers 4. Construct a schedule with a strong mix of the best time periods

24. Seven Steps in Preparing a Radio Schedule 5. Assess the proposed buy in terms of reach and frequency 6. Determine the cost of the target audience 7. Negotiate and place the buy