Electronic Media Lecture
Early Broadcast - Radio
1906 - First radio program broadcast
Early commercials unobtrusive
Beginnings of sponsorship
Audiences grow
Advertiser interest grows
Then, it’s the 30s...
Early Broadcast - Radio
The Golden Age of Radio
First Free Mass Media - 100% paid by advertisers
Hit Programs
Mass Audiences
Major Brands are Born
Example: Wheaties
Early Broadcast - Television
Philo Farnsworth
The teen-ager who invented television
Developed cathode ray
1927 applies for patent
1930 patent granted
1939 - introduced by RCA at World’s Fair
1946 - 10 TV stations
1949 - Coaxial cable reaches Chicago - this allows network broadcasts
First TV ads
Royal Crown Cola
BBDO takes lead
1951 1.5 million TV sets
1952 15 million TV sets
TV Networks develop
1953 - First Color TV
Broadcast - RCA
Allocation
Geographic targets should be established for the smallest, most specific areas
possible. The following, for example, are listed in order of desirability:
–County
–Market(ADI/DMA)
NEILSEN RATINGS
–Sales Area
–State
–Region
–County Size
–Neighborhood
Geographic Targets
Sales potential varies geographically. Media must be selected in recognition of
where the advertising will be delivered.
See (Television Market Overhead)
Radio is undergoing dramatic changes
Growth of FM
More Networks
More Affiliates
Format Shifts
Satellite Transmission
Structure of Radio
Radio Can be Classified According to Transmission and Power.
AM Radio
FM Radio
Web Radio
Cable & DAB Radio
The Radio Audience
Radio is a Highly Fragmented Medium
Station Fans
46%, Clear Preference for One or Two Stations, Listen Up to 8 Hours a
Day.
Radio Fans
34%, Listen to Four or Five Stations With No Preference for One Station.
Music Fans
11%, Listen Exclusively for the Music Being Played.
News Fans
Choose Stations Based on a Need for News and Information.
There are a broad number of program classifications - over 140.
Adult Contemporary
Progressive Rock
American Country
Album Rock
Modern Country
Religious
Bluegrass
Gospel
Concert
Folk
General Popular
Ethnic
Hard Rock
Big Band
Rhythm/Blues
Dixieland
Middle-of-road/Nostalgia
Urban Contemp.
Spanish
Top 40
Classical
News
Easy Listening
Inspirational Pop
Consumer Attitudes Toward Media
(abbreviated)
Authoritative
Influential
3%
2%
9%
5%
3%
11%
20%
81%
57%
9%
Television
Newspapers
Radio
Magazines
Don’t know
IRWIN
© a Times Mirror Higher Education Group, Inc. company, 1996
Measuring the Radio Audience
Measure of the number of people listening to a particular station at a given time:
–Station’s coverage, which is the geographic area that can pick up the
station clearly.
–Better measure is circulation, which measures the number of homes that
are actually tuned in to the particular station.
–Arbitron is an audience rating service.
–RADAR is another rating service.
–Birch/Scarborough-VNU conducts random phone interviews asking
listening preferences.
Despite the incursions made by television, radio usage is significant.
Average Hours Per Day Per Adult
Radio
3:42
Television
4:11
Source: RADAR; A.C. Nielsen
Television
See (Daytime/Women Reach Graph Overhead)
Problems in the TV Market
Television viewers are more elusive than ever before:
–Commercial audiences lost to:
Remote Control “zapping” 6 Percent
VCR “zipping”
3 Percent
Out-of-room/not Paying attn. 25 Percent
•Total
34 Percent
All Time Top TV Programs
2/28/83 Mash Final Episode
11/21/80 Dallas-Who shot JR?
1/30/77 Roots-Final Episode
1/24/82 Superbowl XVI++
1/30/83 Superbowl XVII
1/26/86 Superbowl XX
11/7/76 Gone w/the Wind -Pt1
11/8/76 Gone w/the Wind -Pt2
1/15/78 Superbowl XII
1/21/79 Superbowl XIII
1/15/70 Bob Hope Christmas
60.2
53.3
51.1
49.1
48.6
48.3
47.7
47.4
47.2
47.1
46.6
Rating Share
77
76
71
73
69
70
65
64
67
74
64
Reach/Frequency
Goals or minimums should be established on the basis of experience or
experimentation if possible.
Reach/Frequency is a tool for plan evaluation.
Too often, Reach/Frequency is used incorrectly to make important decisions.
-Homes Using TV
-Rating
-Share
See (TV Diary Overhead)
Television Households
TVHH
98 % of American Homes
See Homes Using TV (HUT)
…. By Daypart
Prime Time (8 pm - 11 pm)
Daytime (10 am - 4:30 pm)
Early Evening (4:30 - 8:00 pm)
Late Evening (11 pm - 1 am)
H.U.T.
58%
26%
43%
31%
Nielsen H.U.T. Summary Report (Oct. - Dec.)
HUT
4 Set turned on
= 80% HUT
5 sets TVHH 
...By Daypart
Prime Time (8pm-11pm)
Daytime (10am-4:30pm)
Early Evening(4:30pm-8pm)
Late Evening(11pm-1am)
H.U.T.
58%
26%
43%
31%
Nielsen H.U.T. Summary Report
Rating
Program A Ratings=
Program B Rating=
Program C Rating=
Based on TVHH
2/5=40
1/5=20
1/5=20
Share
Program A Share=
Program B Share=
Program C Share=
Based on HUT
2/4=50
1/4=25
1/4=25
We can estimate the share a program might receive.
Some of the Variables...
–Time period
–Competition
–Programs Preceding/Following
–Type of Program
–History of Similar Types of Program
–Script
–Pilots
–Producer, Director, Cast
Television Summary
The rapid increase in the number of viewing options results in:
–more ways to reach specific target groups
–greater difficulty in achieving high reach
–more options for the media planners and buyers
Interactive Media
Interactive technology (media) is a new form of broadcast media.
Estimate that Internet will capture 50 million users by 2000.
Formats for delivering ads:
–Web page,
–Banner ad,
–E-mail.
Some Internet Buzzwords
Button ads. Squarish ads that are usually at the bottom of a Web page and contain
only a corporate name or brand.
Click-through. How often a viewer responds to an ad by clicking on it.
Cookies. Information that gets stored on a viewer’s Web browser to help identify
that particular person the next time it visits a particular site.
Cost per click (CPC). Ad rate charged if the surfer responds with personal
information.
Cost per lead/sale. Rate charged to advertisers if the viewer responds with
personal information.
Impressions. Total number of times an ad is displayed on a Web page.
Broadcast and Interactive Media Strategies
Advertiser Should Ask About:
Cost of the Medium
Ability to Meet Advertising Objectives
Ability to Accommodate the Style of Message
How Targeted The Audience Is
Consumers & The Media
Media Evolution
Marshall McLuhan
“we evolve as our media evolves.”
From ear-driven to eye-driven to…
Advertising Changes as Media Changes
Consumers & The Media
A Media-Saturated Culture
– Nothing like it before
– Incredible richness of options
How Many Messages a Day?
Consumers & The Media
A Media-Saturated Culture
– Nothing like it before
– Incredible richness of options
How Many Messages a Day?
The Great American Time Crunch
– More time for media
– Less time for…
Remember - they’re your eyeballs!
Media Conglomerates
From Local to Global
The First Conglomerates - local - starting with the newspaper
Example: WGN
“World’s Greatest Newspaper”
#1 AM station, major independent TV station (WGN, now a superstation)
Additional media properties
Ongoing partnerships/mergers
– Partner w. Warner for WB Network
– Merge w. LA Times
Media Conglomerates
From Special to General
Growth based on special expertise:
Time - magazines
Disney - movies/theme parks
CBS - broadcasting
Opportunistic Expansion:
“Bigger Financial Fish” eat smaller ones
Mergers also create “Bigger Fish”
Example: ViaCom (Paramount, MTV, UPN, Nickelodeon, Blockbuster Video)
Merges w. CBS (TV+ radio + billboards)
Media Conglomerates
World of The Media Giants
Four Very Large - Primarily Media
Time-Warner (+ AOL)
Disney: ABC, A&E, Disney, ESPN, Miramax...
CBS - broadcasting + Viacom (cable)
News Corporation (FOX)
Three Other “Interesting” Giants
SONY (Entertainment + Electronics)
Seagram (Universal + Music)
NBC (5% of General Electric)
Let’s look at The Big Four...
“The Big Four”
Time-Warner
Walt Disney
Viacom/CBS
News Corp
Media Conglomerates
News Corporation (FOX)
Rupert Murdoch
Understood power of media
Australian Newspapers
More newspapers, more media
– The FOX Network
Sports as strategic tool
– NFL for Fox Network
– FOX Sports (cable)
– A Global Empire
– Satellites everywhere
Media Evolution
Media are becoming Brands
– Growing across media platforms
Driven by conglomerates, but all media are developing...
Entertainment Brands