Chapter 9 Television and Radio Media Chapter Objectives • To examine the structure of 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. Chapter 9 : Television and Radio Media Strengths of Television • Creativity and impact – High impact – Sight-sound-motion • Coverage and cost effective – Mass coverage – High reach Chapter 9 : Television and Radio Media Strengths of Television • Captivity and attention – Attention getting – Favorable image • Selectivity and flexibility – High prestige – Low exposure cost Chapter 9 : Television and Radio Media Limitations of Television • Costs • Lack of selectivity – Geographic selectivity – Audience selectivity • Fleeting message – Leaves nothing tangible for the viewer to examine or consider Chapter 9 : Television and Radio Media Limitations of Television • Clutter • Limited viewer attention – Zipping – Zapping – Video cassette recorders • Distrust and negative evaluation Chapter 9 : Television and Radio Media Use TV Only If . . . • The budget is large enough to produce high quality commercials • The media budget is sufficient to generate and sustain the number of exposures needed Chapter 9 : Television and Radio Media Use TV Only If . . . • The market is large enough and can be efficiently reached through a specific network, station, or program • There is a genuine need for a medium with high creative potential to exert a strong impact Chapter 9 : Television and Radio Media Buying Television Advertising Time • Network advertising – Affiliated stations are linked – Purchase transactions are simplified • Spot advertising – Commercials shown on local stations – May be local or “national spot” commercials – May be purchased by daypart or adjacency Chapter 9 : Television and Radio Media Buying Television Advertising Time • Sponsorship advertising – Advertiser is responsible for production and content of program – Responsible for advertising that appears within program – Sponsor has control and can capitalize on the prestige associated with a show Chapter 9 : Television and Radio Media Three 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 • Specific Daypart and weeks – Scheduling depends on reach and frequency requirements Chapter 9 : Television and Radio Media TV Dayparts Morning 7:00 AM - 9:00 AM Mon. – Fri. Daytime 9:00 AM - 4:30 PM Mon. - Fri. Early fringe 4:30 PM - 7:30 PM Mon. – Fri. Prime-time access 7:30 PM - 8:00 PM Sun. – Sat. Prime time 8:00 PM - 11:00 PM Mon. – Sat. Prime time sun 7:00 PM - 11:00 PM Sun. Late news 11:00 PM - 11:30 PM Mon. - Fri. Late fringe 11:30 PM - 1:00 AM Mon. - Fri. Chapter 9 : Television and Radio Media Specialty Television Advertising • Cable / CATV – They offer the opportunity for narrowcasting, economy, and flexibility • Superstations – They send their signals via satellite to operators to make their programs available to subscribers Chapter 9 : Television and Radio Media Specialty Television Advertising • Specialty networks – Specialty networks now have about 28 per cent of the viewing audience – Used to reach specific target audiences Chapter 9 : Television and Radio Media Cable Television (CATV) • Characteristics of cable. – National, regional, and local available. – Targets specific geographic areas. • Advantages of cable. – Reaches specialized markets. – Low cost and flexibility. • Limitations of cable. – Overshadowed by major networks. – Audience is fragmented. – Lacks penetration in major markets. Chapter 9 : Television and Radio Media Measuring TV Audiences • Audience measures – Measured by rating services (BBM Canada or Nielsen media research) – Size and composition indicated • Television households (HH) – Number of HH that own a TV – Usually number of HH in a market Chapter 9 : Television and Radio Media Measuring TV Audiences • Program rating – Percentage of TV HH tuned to a show – “Rating point” = 1 percent of TV HH • Households using TV (HUT) – Percentage of homes in an area watching TV at a given time • Share of audience – Percentage of HUT tuned to a show Chapter 9 : Television and Radio Media TV Audience Measures Program Rating Rating = HH tuned to show Total U.S. HH Share of Audience Share = HH tuned to show U.S. HH using TV Chapter 9 : Television and Radio Media Audience Measurement Technology • Nielsen television index – Provides daily and weekly estimates of TV viewing And national sponsored network and major cable Program audiences – The audimetre is hooked up to the TV set to continuously measure the channels to which the set is tuned • The people meter – An electronic measuring device like the audimetre, but also measures who is watching Chapter 9 : Television and Radio Media Radio and TV Similarities • • • • • • • Are time oriented Are sold in time segments Have some network affiliates Have some independents Use the public airway Are externally paced media Are passive, low-involvement Chapter 9 : Television and Radio Media Radio Differs From TV Radio Broadcasting…. • Offers only an audio message • Is more limited communication • Costs much less to produce • Costs much less to purchase • Has less status and prestige Chapter 9 : Television and Radio Media Strengths of Radio • Cost and efficiency • Selectivity – Low cost – Build more reach and flexibility Chapter 9 : Television and Radio Media Strengths of Radio • Flexibility – Ability to change message just before airtime • Mental imagery • Integrated marketing Chapter 9 : Television and Radio Media Limitations of Radio • Creative limitation – Lack of visual image • Audience fragmentation – Large number of stations • Limited research data – Limited data about consumers Chapter 9 : Television and Radio Media Limitations of Radio • Limited listener attention – Listeners switch stations – People talk on cell phones instead of listening • Clutter – 10 minutes of clutter every hour Chapter 9 : Television and Radio Media 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 Chapter 9 : Television and Radio Media Buying Radio Time • Network radio – Using networks minimizes the amount of negotiation And administrative work needed for coverage • Spot radio – About 20% of all spot announcements – Allows great flexibility and targeting – Purchase transaction can be difficult Chapter 9 : Television and Radio Media Buying Radio Time • Local radio – Nearly 80% of advertisers are local – Local CATV is becoming competitive Chapter 9 : Television and Radio Media Measuring the Radio Audience • The three basic elements in the BBM Canada – 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 Chapter 9 : Television and Radio Media