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Chapter1112.pdf

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Chapter 11 Evaluation of

Media: Television and

Radio

11-2

Advantages of Television

Excellent creativity and impact

High coverage and more cost-effectiveness

High captivity and attention

Selectivity and flexibility

11-3

Limitations of Television

Costs

Lack of selectivity

Fleeting message

Clutter

• Zipping: Occurs when viewers fast-forward through commercials as they play back a previously recorded program

• Zapping: Changing channels to avoid commercials

Limited viewer attention

Distrust and negative evaluation

11-4

Network Advertising

 Spreading messages by purchasing airtime from a

television network

 Television network: Assembles a series of affiliates

to which it supplies programming and services

 Affiliates: Allied local TV stations

 Networks have affiliates throughout the nation for

complete national coverage

11-5

Network Advertising

 Advantage

 Simplifies the purchase process

 Disadvantages

 Cost of advertising on prime time is very high

 Availability of time slots

 Up-front market: Buying period that occurs before the

TV season begins

 Scatter market: Buying period that occurs throughout the

season

11-6

Spot and Local Advertising

 Spot advertising: Commercials shown on local TV

stations

 Time is negotiated and purchased directly from the

individual stations

 National spot advertising: Nonnetwork

advertising done by a national advertiser

 Local advertising: Airtime sold to local firms

11-7

Spot and Local Advertising

Advantages

• Offers flexibility to national advertisers

• Growth in syndication

Disadvantages

• Difficult to acquire

• Greater variations in the pricing policies and discount structure of individual stations • Station reps: Individuals who act as sales representatives for a number of

local stations in dealings with national advertisers

• Subject to more commercial clutter

11-8

Network versus Spot

May be local or “national spot” commercials

Network

Spot & Local

Purchase transactions are simplified

Affiliated stations that are linked

Commercials shown on local stations

11-9

Syndicated Programs

Off-network syndication are “reruns”

First-run syndications are also featured

Advertiser- supported or bartered

Sold and distributed station by station

Programs sold to stations in return for air time

11-10

Syndication

Syndicated programs

• Shows that are sold or distributed on a station-by-station or market- by-market basis

Types

• Off-network syndication - Reruns of network shows that are bought by individual stations

• First-run syndication - Shows produced specifically for the syndication market

• Advertiser-supported or barter syndication • Shows are sold to stations in return for a portion of the commercial time in the

show

• Offers both off-network and first-run syndicated programs

11-11

Advantages and Disadvantages of

Syndication

Advantages

 Saves money

 Broadens reach for national

advertisers

 Targets specific audiences

Disadvantages

 Audiences are often rural

and older

 Syndicators do not supply

much research information

 Requires media buyers to

come up with a syndication

schedule to ensure

maximum reach

11-12

Methods of Buying Time

Sponsorship

1. Advertiser assumes responsibility for the production and perhaps content

2. Sponsor has control and can capitalize on a show’s prestige

Participations

1. Participating sponsors share the cost

2. May occur regularly or sporadically

3. Advertiser doesn’t do production

4. Participants lack control over content

Spot Announcements

1. May be purchased by daypart or adjacency

11-13

TV Advertising Buying Decisions

Considerations are the geographic markets and ability to acquire airtime.

National Versus Local Spot

Reach is the primary consideration but ease of purchase is important.

Network Versus Spot

Method of buying affects cost, commitment, and identification.

Sponsor, Participate, or Spot

Scheduling depends on reach and frequency requirements.

Specific Daypart and Weeks

11-14

Methods of Buying Time

 Sponsorship: Advertiser assumes responsibility for

the production and content of the program, and the

advertising that appears within it

 Allows a firm to:

 Capitalize on the prestige of a high-quality program

 Have more control over the shows carrying their

commercials

11-15

Methods of Buying Time

 Participations: Several advertisers buying

commercial time on a particular program

 Advantages

 Advertiser has no long-term commitment to a program

 Expenditures can be adjusted to buy spots that fit within

the budget

 Provides greater reach in the media schedule

11-16

Methods of Buying Time

 Disadvantages

 Advertiser has little control over the placement of ads

 Availability of spots can be an issue

 Spot announcements - Purchased from the local

stations, appear during adjacencies

 Adjacencies: Time periods adjacent to network

programs

11-17

Selecting Time Periods and Programs

 Cost of TV advertising time varies depending on

the:

 Time of day

 Particular program

 TV time periods are divided into dayparts

 Dayparts: Specific segments of a broadcast day

 Advertising rates depend on the size and popularity

of dayparts

11-18

Cable Television

 Delivers TV signals through fiber or coaxial wire

 Cable networks and channels get revenues from ads

and subscriber fees

 Superstations: Independent local stations that send

signals nationally via satellite to cable operators

 Make their programs available to subscribers

 Carry national advertising

11-19

Advertising on Cable Television

 Has increased revenues steadily

 National advertisers are turning to spot advertising

on local cable systems

 Helps reach specific geographic markets

 Interconnects: Number of cable systems and

networks in a geographic area are joined for

advertising purposes

11-20

Common Television Dayparts

11-21

Advertising on Cable Television

Advantages

1. National, regional, and local available

2. Highly selective “narrowcasting”

3. Low cost

4. Flexibility

Limitations

1. Overshadowed by major networks

2. Audience fragmentation

3. Lacks penetration in major markets

11-22

Advertising on Cable Television

Advantages

 Offers selectivity

 Offers a chance for

narrowcasting

 Narrowcasting: Reaching

very specialized markets

 Low cost

 Flexibility

Disadvantages

 Overshadowed by major

networks

 Audience fragmentation

 Lacks penetration in major

markets

11-23

Future of Cable

 Challenges

 Increases in the number of channels

 Changes in government regulations

 Competition in the programming distribution business

 Reaching relevant audiences

 Growth due to multiplexing

 Multiplexing: Transmitting multiple channels from one network

11-24

Television Audience Measures

Size and composition measured by ratings services

• Home with at least one operable TV or monitor with the ability to deliver video

Television household

• Percentage of TV households in an area that are tuned to a specific program during a specific time period

• Ratings point: Represents 1 percent of all the television households in a particular area tuned to a specific program

Program rating

11-25

Measuring the TV Audience

Total Audience Program Rating

Households Using TV

Share of Audience

11-26

Television Audience Measures

Households using television (HUT)

• Percentage of homes in a given area where TV is being watched during a specific time period

Share of audience

• Percentage of households using TV in a specified time period that are tuned to a specific program

Total audience

• Total number of homes viewing any five-minute part of a telecast

11-27

National Audience Information

Nielsen television index

• Provides daily and weekly estimates of the size and composition of the national viewing audiences

• For programs aired on the broadcast and major cable networks

People meter

• Records what is being watched and by whom in 10,000 households

11-28

Local Audience Information

 Designated market areas (DMAs): Non overlapping areas used for planning, buying, and evaluating TV audiences

 Include group of counties in which stations are located in a metropolitan or central area

 NSI reports

 Viewing times

 Programs watched

 Audience size estimates

 Demographics

11-29

Local Audience Information

 Local people meter (LPM) - Used to measure the

largest local markets

 Sweeps: Viewing audiences in every local

television market are measured at least four times a

year

11-30

Developments in Audience

Measurement

 Commercial ratings: Measures of the average

viewership of the commercials both live and up to

three days after the ads are played back on a DVR

 Anytime anywhere media measurement (A2/M2) -

 Introduction of electronic measurement in all local

markets

 Addition of Internet and out-of-home measurement

in Nielsen’s People Meter sample

 Development of passive measurement devices

11-31

Developments in Audience

Measurement

 Cross-platform campaign ratings: Measures the

number of people who:

 Watch an ad only on television

 Who view an ad online

 Overlap between the two

11-32

Radio and TV Similarities Are time oriented media

Are sold in time segments

Have some network affiliates

Have some independents

Use the public airway

Are regulated by the F.C.C.

Are externally paced media

Are passive, low-involvement

Both Media…

11-33

Advantages of Radio

 Cost and efficiency

 Receptivity

 Selectivity

 Flexibility

 Mental imagery

 Image transfer: Images of a TV commercial are

implanted into a radio spot

 Integrated marketing opportunities

11-34

Rating of Emotional Attributes for Radio

This slide can be used to discuss the top five emotional attributes for radio advertising. The graph shows that a majority of the consumers stated that radio advertising improved their mood, while a substantial percentage also said that it made them relax, comforted them, motivated them, and helped them have a good time.

11-35

Limitations of Radio

Creative limitations

Fragmentation

Chaotic buying procedures

Limited research data

Limited listener attention

Competition from digital media

Clutter

11-36

Buying Radio Advertising Time

 Network radio - Purchased on a network basis

using one of the national networks

 Spot radio provides:

 Greater flexibility in selecting markets

 Individual stations

 Airtime and a chance to adjust the message for local

market conditions

 Local radio - Purchased from individual stations by

local companies

11-37

Audience Information

 Arbitron provides:

 Person estimates - Estimated number of people

listening

 Rating - Percentage of listeners in the survey area

population

 Share - Percentage of the total estimated listening

audience

11-38

Audience Information

Average quarter-hour (AQH) figure

• Average number of people estimated to have listened to a station for a minimum of five minutes during any quarter-hour in a time period

Cume

• Total number of different people who listened to a station for at least five minutes in a quarter-hour period within a reported daypart

Average quarter-hour rating (AQH RTG)

• Estimated number of listeners as a percentage of the survey area population

11-39

Audience Information

Average quarter-hour share (AQH SHR)

• Percentage of the total listening audience tuned to each station

Portable People Meter (PPM)

• Wearable device that electronically tracks what consumers listen to on the radio

RADAR (Radio’s All Dimension Audience Research)

• Measurements are based on information collected throughout the year

Chapter 12 Evaluation of

Media: Magazines and Newspapers

12-2

Magazines and Newspapers

 Present detailed information that can be processed

at the reader’s own pace

 High-involvement media

 Magazines are the most specialized of all

advertising media

12-3

Classifications of Magazines

Consumer magazines

Farm publications

Business publications

12-4

Consumer Magazines

 Bought by the general public for information

and/or entertainment

 Classification by:

 Distribution - Subscription, circulation, and store

distribution

 Frequency - Weekly, monthly, and bimonthly

 Special-interest magazines - Help reach target

audience with little wasted coverage or circulation

12-5

Farm Publications

 Directed to farmers and their families

 Range from general-interest magazines to those in

specialized agricultural areas

 Not classified with business publications

12-6

Business Publications

 Major classifications

 Magazines for specific professional groups

 Industrial magazines for businesspeople in

manufacturing and production industries

 Trade magazines for wholesalers, dealers,

distributors, and retailers

 General business magazines for all business

executives

 Health care publications for various areas

12-7

Advantages of Magazines

Selectivity

Reproduction quality

Creative flexibility

Permanence

Prestige

Consumer receptivity and engagement

Services

12-8

Consumer Receptivity and Engagement

 Greater in magazines than in any other medium

 With the exception of newspapers

 Magazines are:

 Primary source of information for consumers for a

variety of products

 Capable of engaging the readers and retaining their

attention

12-9

Services

Split runs

• Two or more versions of an ad are printed in alternate copies of a particular issue of a magazine

• Help determine which ad generates the most responses or inquiries

Selective binding

• Allows creation of hundreds of copies of a magazine in one continuous sequence

• Computerized production process

• Enables magazines to address specific groups within their circulation base

Ink-jet imaging

• Projects ink onto paper rather than using mechanical plates

• Enables personalization of an advertising message

12-10

Disadvantages of Magazines

Costs

Limited reach and frequency

Long lead time

Clutter and competition

12-11

Magazine Circulation

 Primary circulation

 Number of copies distributed to the original

subscribers or purchasers

 Determines magazine’s rate structure

 Guaranteed circulation

 Publishers give advertisers a rebate if the number of

delivered magazines falls below the guarantee

 Figures are set safely below the average actual

delivered circulation

12-12

Circulation Verification

 Alliance for Audited Media (AAM)

 Audits consumer magazines and farm publications

 Provides data and information critical to evaluating

and purchasing media

 Audits digital replica editions of magazines

 Controlled-circulation basis: Sending copies

individuals the publisher believes can influence a

company’s purchases

12-13

Readership and Total Audience

 Pass-along readership: Occurs when:

 Primary subscriber gives a magazine to another

person

 Publication is read in doctors’ waiting rooms, on

airplanes, and so forth

 Total audience or readership: Calculated by

multiplying the readers per copy by the circulation

of an average issue

12-14

Audience Information and Research for

Magazines

 SRDS - Provides complete planning information on

domestic and international consumer, business, and

health care publications

 Publication’s own research studies

 Syndicated research studies

 Business Publication Audits - Provide the titles of

people who receive a publication and the industry

they work in

12-15

Cost Elements Involved in Purchasing

Magazine Advertising Space

 Variables to consider

 Magazine’s circulation

 Size of the ad

 Position in the publication

 Particular editions chosen

 Special mechanical or production requirements

 Number and frequency of insertions

12-16

Cost Elements Involved in Purchasing

Magazine Advertising Space

 Positions available for ads

 First cover: Outside front of a magazine

 Second cover: Inside front of a magazine

 Third cover: Inside back of a magazine

 Fourth cover: Outside back of a magazine, sold at a

higher rate than any other position

 Advertising space is sold on the basis of space units

 Full page, half page, and quarter page

12-17

Cost Elements Involved in Purchasing

Magazine Advertising Space

 Advertisers save money through:

 Volume discounts - Based on the total space

purchased within a contract year

 Magazine networks: Offer advertisers the

opportunity to buy space in a group of publications

as a package deal

12-18

The Future for Magazines

 Publishers are focused on building:

 Stronger editorial platforms

 Better circulation management

 Cross-magazine and media deals

 Database marketing

 Technological advances

 Electronic delivery methods

 Native advertising: Integrates the advertising in online publications with the environment and editorial content

12-19

Types of Newspapers

Daily newspapers

• Found in cities and larger towns

• Provide detailed coverage of events, issues concerning the local area

• Classifications - Morning, evening, or Sunday publications

Weekly newspapers

• Originate in small towns or suburbs

• Focus on news, sports, and events relevant to the local area

• Appeal primarily to local advertisers

12-20

Types of Newspapers

National newspapers

• Have national circulation and editorial content with a nationwide appeal

• Appeal to: • Large national advertisers

• Regional advertisers that use specific geographic editions of these publications

Special-audience newspapers

• Offer specialized editorial content and are published for particular groups

Newspaper supplements

• Included by papers in their Sunday editions

12-21

Types of Newspaper Advertising

Display advertising

• Uses visual devices in addition to the copy text

Classified advertising

• Ads are arranged under subheads according to the product, service, or offering being advertised

Special ads and inserts

• Government and financial reports

• Notices and public notices of changes in business and personal relationships

• Preprinted inserts: Printed by advertiser and taken to the newspaper to be inserted

12-22

Advantages and Disadvantages of

Newspapers

Advantages

• Market penetration

• Flexibility

• Geographic selectivity

• Reader involvement and acceptance

• Services offered

Disadvantages

• Poor reproduction

• Short life span

• Lack of selectivity

• Clutter

12-23

Categories of Newspaper Circulation

Figures

• Composed of the city where the paper is published and contiguous areas similar in character to the city

City zone

• Market outside the city zone whose residents regularly trade with merchants within the city zone

Retail trading zone

• Covers all circulation not included in the city or retail trade zone

All other areas

12-24

Sources of Audience Information

 SRDS

 Studies conducted by the papers

 Commercial research services

 Provide information on:

 Standardized ad rates and circulation figures

 General requirements

 Contact information

 Lifestyles

 Media behavior

 Product/brand preferences

12-25

General versus Local Rates for

Newspaper Ad Space

General advertising rates

• Apply to: • Display advertisers outside the newspaper’s designated market area

(DMA)

• Any classification deemed by the publisher to be general in nature

• Rates are 75 percent higher than those paid by local advertisers

Retail or local advertising rates

• Apply to advertisers that conduct business or sell goods or services within the DMA

12-26

Newspaper Rates

Standard Advertising Units (SAUs)

• Use column widths 2-1/16 inches wide with: • Tabloid-size papers five columns wide

• Standard or broadcast papers six columns

• Used for national advertising

Column inch

• One inch deep by one column wide

• Rates are quoted per column inch

• Total space costs is calculated by multiplying the ad’s number of column inches by the cost per inch

• Used for local advertising

12-27

Rate Structures

Flat rates

• Offer no discount for quantity or repeated space buys

Open-rate structure

• Discounts are available based on frequency or bulk purchases of space

• Depend on the number of column inches purchased in a year

Run of paper (ROP)

• Paper can place the ad on any page or in any position it desires

Preferred position rate

• Allows advertisers to choose a specific section and/or position on a page

Combination rates

• Advertisers get a discount for using several newspapers as a group

12-28

Future for Newspapers

 Challenges

 Competition from other media

 Circulation

 Attracting and retaining readers

 Increased use of online delivery and multiple

platforms