Chapter Objectives
• 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.
TV Basics
Buying Television Time
Network
Spot
Sponsorship
Network Advertising
Advantages
• Affiliated stations
are linked.
• Purchase is
simplified.
Disadvantages
• Cost.
• Time availability.
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)
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.
Sponsorship Advertising
• Advertiser assumes responsibility for
not only the advertising but also the
program.
• Advantages:
– Firm can capitalize on the prestige of a
high-quality program.
– Firm has control over number,
placement, and content of its
commercials.
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
5
Television Ads
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.
Viewing Habits
Copyright Nielsen Media Research Ltd, 2002.
Measuring the TV Audience
• BBM Canada
• Neilson Media Research
• Television Bureau of Canada (TVB)
TV Audience Measures
Program Rating
Rating =
HH tuned to show
Total HH
Share of Audience
Share =
HH tuned to show
HH using TV
Radio
• There are 941 radio stations in Canada.
– 247 AM stations
– 667 FM stations
• Reaches 93% of all Canadians each week.
• 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.
Radio Strengths
Creativity for Cognitive and
Emotional Response
Reach and Frequency
Target Selectivity
Cost Efficiency
Scheduling Flexibility
Geographic Coverage
Radio Limitations
Selective Exposure
Amount of Processing Time
Creative Limitation
Target Audience Coverage
Clutter
Low Involvement
Attention
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.
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
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.
Audience Composition by Time Block
Measuring the Audience
CANADA
– BBM
• radio diary,
• TV diary,
• TV People Meter,
• PPM [below]
Radio Ads
• CD Now
• Southwest Airlines
• For Eyes
Quote of the day
The buying of time or space is…
the renting of a stage on which
we may perform.
• Howard Gossage
(Rubicam and Young)