1. Electronic Media: TV & Radio

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

4. Number of TV sets in the average U.S. household: 2.24

5. % of U.S. homes with 3 or more TV sets: 66

6. Number of hours per day that TV is on in an average U.S. home: 6 hours, 47 minutes

7. % of Americans that regularly watch television while eating dinner: 66 Source: Dr. Norman Herr, CSU-Northridge. “Television & Health,” 2007.

9. In 2009, 57% of ad spending in the U.S. went to TV (2)

10. Total TV ad spending in 2009: $67 billion (2)Sources: 1) “Marketing,” Advertising Age. January 1, 2007. 2) “Nielsen Snapshot of Ad Spending,” Media Info SLC. October 11, 2010.

12. More than 1/3 have DVR’s, allowing them to watch time-switched programming and skip commercials

13. Americans surf the web and watch TV simultaneously, about 3 hours and 41 minutes per month

14. Though we are watching more video online and via mobile phone, TV is dominant at 67 hours watched per monthPhoto c/o ehomeupgrade.com Source: Nielsen Wire Blog, “What Consumers Watch: Nielsen’s Q1 2010 Three Screen Report,” June 11, 2010

16. Can be independent or affiliated with 5 national networks

17. Broadcast generates about $40 billion in advertising revenues

18. Most broadcast advertising is from national companies

19. Average price for a 30-second spot in 2010: $104,051 (1)Logos c/o screenrant.com Source (1): domainshane.com

21. Impact. TV brings sight, sound and motion. No other medium besides the internet can appeal to 3 senses at once.

22. Creativity. The format of TV commercials permit infinitely original and imaginative appeals.

23. Prestige. TV was voted the most authoritative, influential, persuasive and exciting medium.

24. Social dominance. 95% of Americans watch TV every day.Photo c/o tv.gawker.com

26. High airtime costs. For popular shows, 30-second commercials can cost over $200,000 per run.

27. Limited targeting. Broadcast TV is a mass medium, reaching a wide spectrum of viewers.

28. Transience. 30 seconds isn’t much time, and studies show viewers can’t remember details about commercials just watched.

29. DVR’s and remote controls. Many viewers will skip a program’s commercials or change channels during ad breaks.Photo c/o en.wikipedia.org

31. Over 150 channels available, though most viewers watch only 15 or so

32. Most niche sites are independently owned

33. Cable/satellite ad revenues make up about 1/3 of the TV total

34. Each channel or network sells its own advertisingLogos c/o directstartv.com

36. Demographics. Cable viewers are younger, educated and wealthier.

37. Flexibility. Cable commercials can be as long as 2 minutes, and they don’t have the strict standards of broadcast.

38. Testability. Cable is a good place to experiment with advertising campaigns to see what frequency and creative approach work best.Photo c/o deadspin.com

40. Quality. Cable, especially local cable, can have lower production quality than broadcast.

41. DVR’s and remote controls. Many viewers will skip a program’s commercials or change channels during ad breaks. Photo c/o popwatch.ew.com

42. Local Cable TV Commercials BB&T campaign by LGA http://lgaadv.com/portfolio/detail/bbt Providence Café Commercial produced by Time Warner Cable http://www.youtube.com/watch?v=JTDZmTRcgKA

43. Types of TV ads: Sponsorship Sponsorship: an advertiser underwrites the cost of a program in exchange for advertising and visibility within the program. Example: Chevy Sponsorship of Hawaii 5-0 Sponsorships can be sole sponsorships (one), like Chevy’s, or shared sponsorships (multiple), like those for NFL games. Camaro photo (left) c/o imcdb.org Cruze photo (right) c/o constantmotioncm.com

44. Types of TV ads: Participation, Spots Most network advertising is sold on a participation basis, where many advertisers purchase 30- or 60-second commercials within a program. Spot announcements run in clusters between programs or when networks haven’t purchased all available time. They are concentrated by geographic area (DMA), which is why you might see a local advertiser during a national program. Spots are less expensive and more flexible than network ads. They may run 10, 15, 30 or 60 seconds.

45. Types of TV ads: Syndication Syndication: sale of programs on station-by-station, market-by-market basis. Off-network syndication rebroadcast of popular network shows First-run syndication original programming for the syndicated markets Two and a Half Men photo c/o tvbythenumbers.zap2it.com Dr. Phil photo c/o blog.newsok.com

46. Types of TV ads: Infomercials Program-length ads, or infomercials: A long-form television commercial that might last as long as an hour. Micro S’mores photo c/o nj.com P90x photo c/o workoutjourney.com

47. Alternative: Product Placement Product placement: When brands or products are showcased within a show, rather than in a commercial. Days of our Lives photo c/o tvsquad.com 30 Rock photo c/o supernaturalunderground.blogspot.com

48. TV Audience Measurement Dayparts Rating Services Defining TV Markets Audience Measures Nielsen & Networks Cable Ratings

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

50. Designated Market Area (DMA)

51. The Charlotte 22-County DMA

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

53. TV Audience Measurement Dayparts Rating Services Defining TV Markets Audience Measures Nielsen & Networks Designated Market Areas TV Households Households Using TV Cable Ratings ProgramRating TVHH tuned to program = Rating Total TVHH in area AudienceShare

54. TV Audience Measurements TVHH tuned to program = Rating 50,000 = 4.36 Total TVHH in area 1,147,910 (CLT DMA)

55. TV Audience Measurements TVHH tuned to program = Share 50,000 = 8.71 HH with TV on 537,955 (50% of TV’s in market)

56. = GRP Reach (avg. rating) × Frequency Cost = CPP Rating Cost = CPM Thousands of Viewers Buying TV Advertising Gross Rating Points Cost per Point Cost per Thousand Gross rating points: total rating points achieved by a media schedule over a specific period of time. 1. Select most efficient program 2. Negotiate prices and contracts

57. Example An auto dealership wants to run 30 TV ads in May on a local news station that generally reaches 50,000 viewers with each 6 p.m. newscast. In this market that equates to an average rating of 5. Each 30-second commercial costs $500. Calculate the gross rating points, cost per point and cost per thousand.

58. RADIO Who uses radio? 93% of U.S adults listen each week 72% of U.S. adults listen every day Average time is 3 hours per day Radio photo c/o electronics.howstuffworks.com

60. Targeting. Radio station formats enable advertisers to reach specific markets.

61. Cost efficiency. Radio offers one of the lowest CPM’s in media. And production costs are 10% of TV’s.

62. Visualization. Creative radio spots can create visual imagery so the listener can “see” what the ad is talking about.Photo c/o tv.gawker.com

64. Segmented audiences. If a market has several stations of the same format, advertiser may have to buy many or all of them to reach the target.

65. Multi-tasking listeners. Radio listeners are often doing things other than just listening to the radio, so they don’t always comprehend ads. Photo c/o en.wikipedia.org

66. Programming Formats Percentage of stations in the most common programming formats

67. Buying Radio Time Local Radio Network SpotRadio Dayparts

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

69. Example A jewelry store plans to run 20 radio spots for a necklace sale in April. They will run spots on a radio station that reaches 20,000 in an average quarter hour. The Charlotte DMA has approximately 2 million people. Calculate the station’s AQH rating and the ad campaign’s gross rating points.