chapter twelve
Electronic
Media:
Television
and Radio
McGraw-Hill/Irwin
Essentials of Contemporary Advertising
Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Objectives_1
 Describe the advantages and drawbacks of
broadcast television as an advertising medium
 Discuss the advantages and drawbacks of
cable television as an advertising medium and
explain how it differs from broadcast television
 Explain the process of buying cable and
broadcast TV time
 Evaluate the different types of television
advertising available
12-2
Objectives_2
 Describe the process of TV audience
measurement
 Discuss the main factors to consider
when buying television time
 Analyze the pros and cons of using
radio in the media mix
 Explain the major factors to consider
when buying radio time
12-3
The Electronic Media Landscape
in the U.S.
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1,685 local commercial TV stations
10,000+ local radio stations
4 major TV networks
10,000+ local cable systems
12-4
Top Cable TV Networks
 Discovery Channel
 ESPN
 Cable News
Network (CNN)
 Turner Network
Television (TNT)
 USA Network
 Nickelodeon
 TBS Superstation
 Spike TV
 Arts & Entertainment
(A&E)
 Lifetime
 ESPN2
 The Weather
Channel
12-5
Cable Facts
 Cable reaches 85% of TV households
 Most consumers receive more than 100
channels, but watch only 15-19
channels
 Cable households watch more hours of
TV than non-cable households
 Most channels are privately owned
 Cable fees make up about 1/3 of cable
revenues
12-6
Broadcast TV Facts
 Heaviest viewers are middle-income,
high-school-educated
 Average U.S. home viewers watch 8
hours of TV (includes cable and
VCR/DVR) per day
 Older women watch the most TV
12-7
Pros of Broadcast
TV Advertising
 Mass coverage
 Relatively low cost
per viewer
 Some selectivity
 Persuasion power

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
Impact
Creativity
Prestige
Social dominance
12-8
Power of Television
12-9
Cons of Broadcast
TV Advertising
 High production
cost
 High airtime cost
 Long lead times
 Limited
selectivity
 Audience
fragmentation
 Brevity
 Clutter
 Zipping and
zapping
12-10
What forms of advertising will replace
traditional commercials?
 Sponsorship of TV programs and televised
sporting events
 Product placements
 Interactive advertising during programs
 Ads embedded in VOD programs
 Ads within the DVR main menu
 Ads within VOD main menu
 Celebrity endorsement deals
12-11
Pros and Cons
of Cable TV Advertising
Pros
 Selectivity
 Audience
demographics
 Low cost
 Flexibility
 Testability
Cons
 Limited reach
 Fragmentation
 Quality
 Zipping and
zapping
12-12
Buying TV Time

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
Sponsoring TV programs
Participating in programs
Purchasing spot announcements
Purchasing spots from syndicators
Running program-length ads
12-13
Participation:
Most Expensive Shows
 American Idol
 Desperate
Housewives
 CSI
 Grey’s Anatomy
 ER
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Extreme Makeover
Survivor
The Apprentice
The Apprentice,
Martha Stewart
 Two and a Half Men
12-14
Syndication
 Largest source of programming
 Forms
– Off-network
– First-run
– Barter
12-15
Exhibit 12-7a Network Approach
12-16
Exhibit 12-7b Syndication Approach
12-17
Growth in Program-Length Ads
 Consumers pay attention and can
respond immediately
 PLAs combine the power of advertising,
direct response, and sales promotion
 PLAs allow for product demonstration
and brand differentiation
 Results are measurable and
accountable
12-18
TV Audience Measurement
 Nielsen Media Research
– Nielsen Television Index (NTI)
• People meters in 55 markets
• Diaries in 210 local markets during
sweeps
 Simmons Market Research Bureau
 Mediamark Research
12-19
Audience Measurements
TV Households
(TVHH)
Audience
Composition
Households
using TV
(HUT)
Total
Audience
Program
Rating
Audience
Share
12-20
TV Dayparts
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Daytime: 9:00 a.m.-4:00 p.m.
Early fringe: 4:00-5:30 p.m.
Early news: 5:00 or 5:30-7:30 p.m.
Prime access: 7:30-8:00 p.m.
Prime: 8:00-11:00 p.m.
Late news: 11:00-1130 p.m.
Late night: 11:30 p.m.-1:00 a.m.
12-21
Buying Television Time
Determine available programs and costs
Analyze program efficiencies
Negotiate prices with station reps
Determine number and frequency of viewers
Sign broadcast contracts
Review affidavits of performance
12-22
Program Efficiency
 Cost Per Point (CPP) = Cost/Rating
 Cost Per Thousand (CPM) =
Cost/Thousands of People
 Cost Per Thousand-Target Market
(CPM-TM) =Cost/Thousands of People
in Target Audience
12-23
Radio Facts
 95.4% of the U.S. population listens to
the radio at least once in an average
week
 The average American listens to the
radio more than 3 hours per day
 The CPM for radio has risen less than
for any other major medium
12-24
Pros of Radio Advertising
 Frequent access to
large audience
 Selectivity
 Cost efficiency
 Visualization
 Timeliness
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Immediacy
Local relevance
Creative flexibility
Image transference
Enhanced
interactive aspects
12-25
Cons of Radio Advertising
 Limitations of sound
 Segmented
audiences
 Short-lived/ halfheard
 Clutter
 No visual
component
 Threats of satellite
radio and personal
music systems
12-26
Programming Formats
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Country
News/Talk
Religious
Oldies
Adult
contemporary
 Classic rock
 Spanish
 Top 40
 Soft adult
contemporary
 Easy listening
 Rock
 Alternative rock
 Jazz
 Classical
12-27
Types of Radio Advertising
Network
Spot
Local
12-28
Radio Dayparts
 Morning drive: 6:00-10:00 a.m.
 Daytime: 10:00 a.m.-3:00 p.m.
 Afternoon/Evening drive: 3:00 p.m.-7:00
p.m.
 Nighttime: 7:00 p.m.-12:00 a.m.
 All night: 12:00-6:00 a.m.
12-29
Radio Terminology
 Run of station
(ROS)
 Total audience
plan (TAP)
 Average quarterhour audience
(AQH persons)
 Average quarterhour rating
 Average quarterhour share
 Gross impressions
 Gross rating points
 Cume persons
 Cume rating
12-30
Steps in Preparing a Radio
Schedule
Identify stations with greatest cume of target audience
Identify station formats with best access to prospects
Determine best dayparts
Construct a schedule using rate cards to guide budget
Evaluate buy in terms of audience delivery
Determine CPM-TM
Negotiate and place buy
12-31
Key Terms_1
 Affidavit of
performance
 Audience
composition
 Audience share
 Avails
 Average quarterhour audience
 Average quarterhour rating
 Average quarterhour share
 Barter syndication
 Broadcast TV
 Cable TV
 Cost per rating point
 Cost per thousand
 Cume persons
 Cume rating
12-32
Key Terms_2
 Daypart mix
 Designated market
area
 Digital video
recorder
 Drive time
 First-run syndication
 Gross impressions
 Gross rating points
 Households using
TV
 Imagery transfer
 Infomercial
 Inventory
 Local time
 Makegoods
 Networks
 Off-network
syndication
12-33
Key Terms_3
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Participation
Preemption rate
Prime time
Program-length
advertisement
 Program rating
 Programming format
 Rating service
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Run-of-station
Sponsorship
Spot announcement
Spot radio
Sweeps
Total audience
Total audience plan
TV households
12-34