McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 14

Using Electronic

Media: Television and

Radio

14-2

Chapter Overview

Factors to evaluate when considering radio & television in

the creative mix

14-3

Chapter Objectives

Describe pros & cons of broadcast TV as an

ad medium

Evaluate different types of TV advertising

Discuss factors to consider when buying

TV time

Discuss the pros and cons of cable TV ads

Explain the process of buying cable and

broadcast TV time

Describe TV audience measurement

Analyze pros & cons of radio in the creative mix

Discuss factors to consider when buying

radio time

14-4

The Medium of Television

Broadcast TV Cable TV

VHF and UHF

Independent Stations

Network Affiliates

Premium Services

Ad-Supported Networks

Superstations

14-5

The Medium of Television

Pros Cons

Mass coverage

Relatively low cost

Some selectivity

High production cost

High airtime cost

Limited selectivity

Impact

Creativity

Prestige

Brevity

Clutter

Zipping and zapping

Social dominance

14-6

TV Audience Trends

Demographics

DVD Rental

Cable households

Viewing patterns

TV viewing hours Audience fragmentation

14-7

The Medium of Television

How adult viewers rate various media

14-8

Types of TV Advertising

Sponsorship

Participation basis

Spot ads

Syndication

Infomercials

14-9

TV Ad Spending (Billions)

Network TV dominates, but is losing ground

14-10

Most Expensive 30-Second

Spots

14-11

Network & Syndication

Distribution

14-12

Cable TV Pros and Cons

Pros Cons

Selectivity

Audience demographics

Low cost

Limited reach

Fragmentation

Quality

Flexibility

Testability

Zipping and zapping

14-13

TV Audience Measurement

DaypartsRating

ServicesDefining TV

MarketsAudience Measures

Nielsen & Others

Cable Ratings

14-14

TV Audience Measurement

DaypartsRating

ServicesDefining TV

MarketsAudience Measures

Nielsen & Others

Cable Ratings

Designated Market Areas

14-15

Designated Market Area

Columbus, Georgia designated market area

14-16

TV Audience Measurement

Daytime 9 a.m. – 4 p.m.

Early Fringe 4 – 5:30 p.m..

Early News 5 or 5:30 – 7:30 p.m.

Access 7:30 – 8 p.m.

Prime Time 8 – 11 p.m.

Late News 11 – 11:30 p.m.

Late Fringe 11:30 – 1 a.m.

DaypartsRating

ServicesDefining TV

MarketsAudience Measures

Nielsen & Others

Cable Ratings

Designated Market Areas

14-17

TV Audience Measurement

DaypartsRating

ServicesDefining TV

MarketsAudience Measures

Nielsen & Others

Cable Ratings

Designated Market Areas

TV Households

Households Using TV

ProgramRating

AudienceShare

Total TVHH in areaTVHH tuned to program

=Rating

14-18

Buying TV Time

Cost per Point =CPPRatingCost

Cost per ThousandThousands of People

=CPMCost

Gross Rating Points Reach (avg rating) × Frequency=GRP

14-19

Buying TV Time

2. Select most

efficient programs

3. Negotiate prices and contracts

1. Request avails from media rep

14-20

Other Forms of Television

DBS MDS

STV SMATV

14-21

The Medium of Radio

Who uses radio?

93% of U.S adults listen each week

72% of U.S. adults listen every day

Average time is 2.5 hours per day

Radio’s reach exceeds other media

14-22

Most Popular Program Formats

14-23

Pros and Cons of Radio Ads

Pros Cons

Reach & frequency

Selectivity

Cost efficiency

Limitations of sound

Segmented audiences

Short-lived, half heard

Testability

Timeliness & immediacy

Clutter

Local relevance

Creative flexibility

14-24

Mini-network Programming

Each network targets a specific demographic group

14-25

Special Programming

Radio stations can

increase market share with special

programming

14-26

Buying Radio Time

LocalNetwork Spot

14-27

Key Radio Terms

Morning drive 6 a.m. – 10 a.m.

Daytime 10 p.m. – 3 p.m.

Afternoon drive 3 p.m. – 7 p.m.

Nighttime 7 p.m. – midnight

All night Midnight – 6 a.m.

DaypartsCumesAverage quarter-hour audiences

14-28

Ratings Based on Dayparts

Gross Rating Points (GRP)

Average Quarter-Hour (AQH)

Total Audience Plan (TAP)

Run-of-Station (ROS)

AQH RatingPopulation

=AQH Persons × 100

GRP AQH Rating × No. of Spots=

Cume Estimates Cume Rating =Population

Reach Potential × 100

14-29

Satellite Radio

Sirius & XM are major players

Over 16 million listeners

Many program choices

Exclusive programming