ADVERTISING: Broadcast Media July 17, 2016 Advertising 1 BROADCAST MEDIA MAIN TYPES: • Television • Broadcast • Cable • Radio July 17, 2016 Advertising 2 Television Advertising • Network • all stations • National Spot (selective spot) • local network and non-network • Local • local stations only • Sponsorship • billboard (at beginning and end) July 17, 2016 Advertising 3 Television Ads July 17, 2016 Advertising 4 Television Ads July 17, 2016 Advertising 5 July 17, 2016 Advertising 6 Advantages of Television • Can have great impact • Allows high level of creativity • Good coverage (reach) • Some selectivity • Demonstration possibilities July 17, 2016 Advertising 7 Limitations of Television • High cost • Cluttered environment • Fleeting message • Limited viewer attention • Long lead time (network) July 17, 2016 Advertising 8 Length of Network Commercials 100% Other 80% 15 second 60% 30 second 40% 60 second 20% 0% 1965 July 17, 2016 1975 1985 Advertising 1995 9 TV Dayparts Morning 7:00 AM - 9:00 AM Daytime 9:00 AM - 4:30 PM Early fringe 4:30 PM - 7:30 PM Prime-time access 7:30 PM - 8:00 PM July 17, 2016 Prime time 8:00 PM - 11:00 PM Late news 11:00 PM - 11:30 PM Advertising 10 Measuring TV Audiences • Television Households • # of HH that own a TV • Program Rating • % of TV HH tuned to a show • (“Rating point” = 1 percent of TV HH) • Households Using TV (HUT) • % of homes watching TV at a given time • Share of Audience • % of HUT tuned to a show July 17, 2016 Advertising 11 TV Audience Measures Program Rating Rating = HH tuned to show Total U.S. HH Share of Audience Share = July 17, 2016 HH tuned to show U.S. HH using TV Advertising 12 July 17, 2016 Advertising 13 Use TV Only If . . . 1. Budget is large enough to… • allow high quality production • buy number of exposures needed. 2. Market is large and reachable • through networks, stations, or programs. 3. You need a medium with high creative potential to exert a strong impact. July 17, 2016 Advertising 14 Cable Advertising Trends $6,849 $5,000 $4,500 $4,000 $3,500 $6,037 $4,594 $3,000 $3,297 Network Local/spot Regional $2,500 $2,539 $2,000 $1,561 $2,031 $1,500 $1,000 $500 $0 1988 July 17, 2016 1989 1990 1992 1994 Advertising 1996 1997 15 Radio Advertising FM is much more popular than AM. Radio audiences are largely determined by a station’s format. July 17, 2016 Adult Contemporary Urban Contemporary Country News / Talk AOR Top 40 Classical Talk Advertising 10.7 16 Radio 1. offers only audio 2. is more limited 3. costs less to produce 4. costs less to purchase 5. has less status or prestige July 17, 2016 Advertising 17 Advantages of Radio • low cost (high frequency possible) • selective • flexible • can invoke mental imagery • integrated marketing opportunities July 17, 2016 Advertising 18 Radio Ads • Jiffy Lube • CD Now • Southwest Airlines • For Eyes July 17, 2016 Advertising 19 Limitations of Radio • Creative limitations • Fragmented • Cluttered environment • Limited listener attention • Chaotic buying procedures • Limited research data July 17, 2016 Advertising 22 Dayparts for Radio Morning Drive Time 6:00 AM - 10:00 AM Daytime 10:00 AM - 3:00 PM Aft./Eve. Drive Time 3:00 PM - 7:00 PM Nighttime 7:00 PM - 12:00 AM All Night 12:00 AM - 6:00 AM July 17, 2016 Advertising 23 Measuring the Audience CANADA • BBM • radio diary, TV diary, TV People Meter, PPM US • Nielsen (TV) • diary, panel, People Meter • Arbitron (Radio) • diary, Portable People meter July 17, 2016 Advertising 24 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) July 17, 2016 Advertising 25