10
Broadcast Media
Chapter Objectives
• To examine the structure of the television and
radio industries and the role of each medium
in the advertising program.
• To consider the strengths and limitations of TV
and radio as advertising media.
• To explain how advertising time is purchased
for television and radio media, how audiences
are measured, and how rates are determined.
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Television Strengths
Creativity for Cognitive and
Emotional Response
Reach and Frequency
Media Image
Coverage and Cost Effectiveness
Selectivity and Flexibility
Captivity and Attention
Geographic Coverage
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Television Limitations
Selective Exposure
(Zipping and Zapping)
Amount of Processing Time
Cost
Low Selectivity
Clutter
Involvement
Image
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TV Commercials on Programs Such As the
Superbowl Reach Large Audiences
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TV Advertising Works Best When…
The Budget Is Large Enough to Produce
High Quality Commercials.
The Media Budget Is Sufficient to Generate and Sustain
the Number of Exposures Needed.
The Market Is Large Enough and Reachable Efficiently
Through a Specific Network, Station, or Program.
There’s a Genuine Need for a Medium With High
Creative Potential to Exert a Strong Impact.
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Clever TV Ads Can Entertain as Well as
Inform
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TV Basics
Figure 10-3
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Buying Television Time
Network
Spot
Sponsorship
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Network Advertising
Advantages
• Affiliated stations
are linked.
• Purchase is
simplified.
Disadvantages
• Cost.
• Time availability.
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Networks in Canada
National Networks
• CBC
• Radio Canada
• CTV
Regional Networks
• CBC
• CTV
• Global
• Global Atlantic
• NewsNet
• CityTV
• CHTV
• Sportsnet
• TVA (Quebec)
• Quatre Saisons (Quebec)
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Spot Advertising
• Commercials shown on local TV
stations.
– Time is negotiated and purchased
directly from the individual stations or
their national station representatives.
• Offers the national advertiser flexibility
in adjusting to local market conditions.
• Prevalent in Canada – 60% of all TV
ads.
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Sponsorship Advertising
• Advertiser assumes responsibility for
the production and usually the content
of the program as well as the
advertising appearing within.
• Advantages:
– Firm can capitalize on the prestige of a
high-quality program.
– Firm has control over number,
placement, and content of its
commercials.
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TV Buying Decisions
Network Versus
Spot
Reach Is the Primary Consideration but
Ease of Purchase Is Important.
National Versus
Local Spot
Spots Purchased by National Advertisers
Are Known As National Spot.
Sponsor,
Participate, or
Spot
Method of Buying Affects Cost,
Commitment, and Identification.
Specific Daypart
and Weeks
Scheduling Depends on Reach and
Frequency Requirements.
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Common Television Dayparts
12
11
1
11
2
10
AM
9
3
8
4
7
6
5
12
1
2
10
PM
9
3
8
4
7
6
Morning
Prime Time
Daytime
Late News
Early Fringe
Late Fringe
Prime Time Access
Late Night
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5
Specialty Television Advertising
Cable and Satellite Technology
• Direct broadcast satellite
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Specialty Television Advertising
Specialty Networks
• Ability to reach specific target
audiences.
– Appealing to advertisers because of their
low cost and flexibility.
• Greater audience fragmentation.
• Generally do not require a large upfront commitment.
• Placing pressure on network prices.
• Now have about 28% of the viewing
audience.
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Specialty Television Advertising
Concerns About Specialty Networks
• Overshadowed by conventional
networks.
• Although their share of the TV viewing
audience has increased, viewers are
spread out among the large number of
channels available.
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Viewing Habits
Figure 10-9
Copyright Nielsen Media Research Ltd, 2002.
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Measuring the TV Audience
• BBM Canada
• Neilson Media Research
• Television Bureau of Canada (TVB)
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TV Audience Measures
Program Rating
Rating =
HH tuned to show
Total HH
U.S. HH
Share of Audience
Share =
HH tuned to show
HH using TV
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Radio
• There are 941 radio stations in Canada.
– 247 AM stations
– 667 FM stations
• Reaches 93% of all Canadians over the age of
12 each week.
• Has grown into a background to many
activities:
– Reading, driving, running, working, socializing.
• The average Canadian listens to the radio
3h/day or 21h/week
• Radio advertising revenue grew from $741
million in 1994 to $1.1 billion in 2001.
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Radio Strengths
Creativity for Cognitive and
Emotional Response
Reach and Frequency
Target Selectivity
Cost Efficiency
Scheduling Flexibility
Geographic Coverage
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Radio Limitations
Selective Exposure
Amount of Processing Time
Creative Limitation
Target Audience Coverage
Clutter
Low Involvement
Attention
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Buying Radio Time
• Network Radio
– Relatively new option which includes
CHUM Radio Network, Team Sports
Radio Network, and a few others.
• Spot Radio
– National advertisers can purchase
airtime on individual stations in various
markets.
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Dayparts for Radio
11
12
1
11
2
10
AM
9
6
2
PM
9
4
7
1
10
3
8
12
3
8
5
4
7
Morning Drive Time
Nighttime
Daytime
All Night
Afternoon/Evening Drive Time
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6
5
Measuring the Radio Audience
Person Estimates  The
estimated number of people
listening.
Rating  The percentage of
listeners in the survey area
population.
Share  The percentage of the
total estimated listening audience.
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Audience Composition by Time Block
Figure 10-12
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Percent Weekly Reach and Hours Tuned In
by Major Demographic
Figure 10-13
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Percentage Listening By Location
Figure 10-14
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Percent Weekly Reach by Major
Demographic, by Location
Figure 10-15
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Measuring the Radio Audience
Radio Marketing Bureau (RMB)
• Mission: “To educate advertisers on the
effective use of the radio medium and
to assist advertisers in meeting their
communication objectives.”
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