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Transcript of Evaluation of Broadcast Media Chapter Eleven. Broadcast Networks Network Station High dollar Network...
Evaluation of Broadcast Media
Chapter Eleven
Broadcast Networks
Network
Station
Station
Station
Station
Station
High dollarNetwork commercial
High dollarEntertainment,News, sports
Local commercial
$$$
$$$
Network show :08
CommercialBreak :04
Network sells 3:00For $1.5 million toNational advertisers
LocalStation sells1:00 toLocal AdvertisersFor $5,000
Network
Cable Networks
Cable System Cable SystemCable SystemCable System
Network
Cable Networks
Cable System Cable SystemCable SystemCable System
$$
$$$
$$
$$
Network
Cable Networks
Cable System Cable SystemCable SystemCable System
High dollarNetwork commercial
$$$
Local commercial
$$
$
Syndicated Television
Syndicated Television
Producer
Station
Station
Station
Station
Station
High dollarNetwork commercial
High dollarEntertainment,News, sports--Oprah--Jeopardy--Judge Judy
Local commercial
$$$
$$$
Syndicated Television
Producer
Station
Station
Station
Station
Station High dollarEntertainment,News, sports--Oprah--Jeopardy--Judge Judy
$
Cash
$
$$
$
Syndicated Television
Producer
Station
Station
Station
Station
Station High dollarEntertainment,News, sports--Oprah--Jeopardy--Judge Judy
CashBarter
Free
Syndicated Television
Producer
Station
Station
Station
Station
Station High dollarEntertainment,News, sports--Oprah--Jeopardy--Judge Judy
Barter
Television Revenues
• Networks– Network provides high-cost content.– Local stations provide local audiences.– Networks charge high dollars for their commercials.– Local stations get revenue by charging for local time they are
allotted.
• Cable– Advertising revenue: network and local.– Subscription revenues from cable systems to networks.
• Barter– Cash.– Barter.
Television Advertising Advantages, Disadvantages
• Advantages
--Color, Sound, Motion.
--Mass audiences.
--Presence, prestige, and influence.
--Intrusiveness.
--Repetition.
--Some flexibility.
• Disadvantages
--High cost.
--Perception of high cost.
--Ad clutter.
--Limited attention
--Recording, skipping.
--Distrust
Television Advertising Procedures
• Concept, copy.
• Storyboard.
• Preproduction.
--Casting, crew.
--Locations, props, sets.
Television Advertising Procedures (continued)
• Production, post-production.
--Shooting.
--Audio.
--Effects, graphics.
--Editing.
--Dubbing.
--Delivery to stations, networks.
Top 10 Network TV Advertisers, 2004
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
1. Proctor & Gamble $833.6*
2. General Motors 753.5
3. Johnson & Johnson 521.6
4. Ford Motor Co. 497.6
5. Time Warner 451.9
6. Pfizer 417.8
7. Walt Disney Co. 417.6
8. SBC Communications 396.2
9. PepsiCo 379.5
10. DaimlerChrysler 359.4
CompanyCompany $ Amount$ Amount
* millions of dollars
There is a genuine need for a medium with high creative potential to exert a strong impact.
There is a genuine need for a medium with high creative potential to exert a strong impact.
The market is large enough and easily reachable through a specific network, station, or program.
The market is large enough and easily reachable through a specific network, station, or program.
The media budget is sufficient to generate and sustain the number of exposures needed.
The media budget is sufficient to generate and sustain the number of exposures needed.
The budget is large enough to produce high quality commercials.
The budget is large enough to produce high quality commercials.
The market is large enough and easily reachable through a specific network, station, or program.
The market is large enough and easily reachable through a specific network, station, or program.
The media budget is sufficient to generate and sustain the number of exposures needed.
The media budget is sufficient to generate and sustain the number of exposures needed.
The budget is large enough to produce high quality commercials.
The budget is large enough to produce high quality commercials.
TV Advertising Works Best When…
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
SponsorshipSponsorship
1. Advertiser assumes responsibility for the production and perhaps content
2. Sponsor has control and can capitalize on the prestige associated with a show
1. Advertiser assumes responsibility for the production and perhaps content
2. Sponsor has control and can capitalize on the prestige associated with a show
ParticipationsParticipations
1. Participating sponsors share the cost
2. May participate regularly or sporadically
3. Advertiser isn’t responsible for production
4. Participants lack control over content
1. Participating sponsors share the cost
2. May participate regularly or sporadically
3. Advertiser isn’t responsible for production
4. Participants lack control over content
Spot Announcements
Spot Announcements
1. May be purchased by daypart or adjacency
1. May be purchased by daypart or adjacency
ParticipationsParticipationsSponsorshipSponsorship
Methods of Buying Time
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Common Television Dayparts
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Prime-Time Access
Late News
Morning
Early Fringe Late Fringe
Prime Time
Daytime
Late Night
PM
121
2
3
4
56
10
11
9
7
8
AM
121
2
3
4
56
10
11
9
7
8
Television HouseholdsTelevision
Households
Program Rating
Program Rating
Households Using TV
Households Using TV
Share of AudienceShare of Audience
Audience MeasuresAudience Measures
Households Using TV
Households Using TV
Program Rating
Program Rating
Television HouseholdsTelevision
Households
Audience MeasuresAudience Measures
Measuring TV Audiences
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
TV Audience Measures
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
HH tuned to show
U.S. HH using TVShare =
Share of Audience
HH tuned to show
Total U.S. HHRating =
Program Rating
HH tuned to show
Total U.S. HHRating =
Program Rating
TV Audience Measures
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
HH tuned to show
U.S. HH using TVShare =
Share of Audience
HH tuned to show
Total U.S. HHRating =
Program Rating
HH tuned to show
Total U.S. HHRating =
Super Bowl XLII
TV Audience Measures
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
HH tuned to show
U.S. HH using TVShare =
Share of Audience
HH tuned to show
Total U.S. HHRating =
Program Rating
97.5 million viewers
Total U.S. HHRating =
Super Bowl XLII
TV Audience Measures
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
HH tuned to show
U.S. HH using TVShare =
Share of Audience
HH tuned to show
Total U.S. HHRating =
Program Rating
97.5 million viewers
303 million TV households
Rating =
Super Bowl XLII
TV Audience Measures
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
HH tuned to show
U.S. HH using TVShare =
Share of Audience
HH tuned to show
Total U.S. HHRating =
Program Rating
97.5 million viewers
303 million TV households
Rating = 32
Super Bowl XLII
TV Audience Measures
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
97.5 million viewers
U.S. HH using TVShare =
Share of Audience
HH tuned to show
Total U.S. HHRating =
Program Rating
97.5 million viewers
303 million TV households
Rating = 32
Super Bowl XLII
TV Audience Measures
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
97.5 million viewers
221.6 TVs in useShare =
Share of Audience
HH tuned to show
Total U.S. HHRating =
Program Rating
97.5 million viewers
303 million TV households
Rating = 32
Super Bowl XLII
TV Audience Measures
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
97.5 million viewers
221.6 TVs in useShare =44
Share of Audience
HH tuned to show
Total U.S. HHRating =
Program Rating
97.5 million viewers
303 million TV households
Rating = 32
Super Bowl XLII
Super Bowl XLII
• 32 rating, 44 share
• 32% of the country watched the game
• 44% of all televisions that were on were tuned to the game.
Are time oriented mediaAre time oriented media
Are sold in time segmentsAre sold in time segments
Have some network affiliatesHave some network affiliates
Have some independentsHave some independents
Use the public airwayUse the public airway
Are regulated by the F.C.C.Are regulated by the F.C.C.
Are externally paced mediaAre externally paced media
Are passive, low-involvementAre passive, low-involvement
Are externally paced mediaAre externally paced media
Are regulated by the F.C.C.Are regulated by the F.C.C.
Use the public airwayUse the public airway
Have some independentsHave some independents
Have some network affiliatesHave some network affiliates
Are sold in time segmentsAre sold in time segments
Are time oriented mediaAre time oriented media
Radio and TV Similarities
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Both Media…
Both Media…
Is more limited communicationIs more limited communication
Costs much less to produce
Costs much less to produce
Costs much less to purchase
Costs much less to purchase
Offers only an audio messageOffers only an audio message
Costs much less to purchase
Costs much less to purchase
Costs much less to produce
Costs much less to produce
Is more limited communicationIs more limited communication
Offers only an audio messageOffers only an audio message
Radio Differs from TV
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Has less status and prestige
Has less status and prestige
Radio Formats by Age Group
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
0 10 20 30 40 50 60 70
Contemporary hitsUrban
AlternativeAdult contemporary
HispanicRock
CountryOldies
News/talk/infoReligion
Smooth jazzClassical
18-24
25-34
34-44
45-54
Radio Formats by Age Group
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
0 10 20 30 40 50 60 70
Contemporary hitsUrban
AlternativeAdult contemporary
HispanicRock
CountryOldies
News/talk/infoReligion
Smooth jazzClassical
18-24
25-34
34-44
45-54
Top format
Radio Formats by Age Group
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
0 10 20 30 40 50 60 70
Contemporary hitsUrban
AlternativeAdult contemporary
HispanicRock
CountryOldies
News/talk/infoReligion
Smooth jazzClassical
18-24
25-34
34-44
45-54
Top format18-34
Radio Formats by Age Group
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
0 10 20 30 40 50 60 70
Contemporary hitsUrban
AlternativeAdult contemporary
HispanicRock
CountryOldies
News/talk/infoReligion
Smooth jazzClassical
18-24
25-34
34-44
45-54
Very poor18-34
Audience FragmentationAudience Fragmentation
Limited Research DataLimited Research Data
Creative LimitationsCreative Limitations
Chaotic BuyingChaotic Buying
Limited Listener AttentionLimited Listener Attention
Cost and EfficiencyCost and Efficiency
SelectivitySelectivity
FlexibilityFlexibility
Mental ImageryMental Imagery
Integrated MarketingIntegrated Marketing
ClutterClutter
Limited Listener AttentionLimited Listener Attention
Limited Research DataLimited Research Data
Chaotic BuyingChaotic Buying
Audience FragmentationAudience Fragmentation
Creative LimitationsCreative Limitations
Integrated MarketingIntegrated Marketing
Mental ImageryMental Imagery
FlexibilityFlexibility
SelectivitySelectivity
Cost and EfficiencyCost and Efficiency
Advantages and Limitations of Radio
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
AdvantagesAdvantages DisadvantagesDisadvantages
Radio Ads Can Enhance TV Campaigns
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Over 100 regional/area networksOver 100 regional/area networksOver 100 regional/area networksOver 100 regional/area networks
Three national networksThree national networks
A multitude of syndicated programsA multitude of syndicated programs
About 20% of all spotsAbout 20% of all spots
Allows great flexibility, targetingAllows great flexibility, targeting
Purchase transaction can be difficultPurchase transaction can be difficult
Nearly 80% of advertisers are localNearly 80% of advertisers are local
Local CATV is becoming competitiveLocal CATV is becoming competitive
Nearly 80% of advertisers are localNearly 80% of advertisers are local
Purchase transaction can be difficultPurchase transaction can be difficult
Allows great flexibility, targetingAllows great flexibility, targeting
About 20% of all spotsAbout 20% of all spots
A multitude of syndicated programsA multitude of syndicated programs
Three national networksThree national networks
Buying Radio Time
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Network Radio
Network Radio
National Spot
National Spot
Local RadioLocal Radio
Dayparts for Radio
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Nighttime
Afternoon/Evening Drive Time
Morning Drive Time
Daytime All Night
PM
121
2
3
4
56
10
11
9
7
8
AM
121
2
3
4
56
10
11
9
7
8
Person estimatesPerson
estimates
ShareShare RatingRating
Diary interviewsDiary interviews
Person estimatesPerson
estimates
ShareShare RatingRating
Audience Information
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
ArbitronArbitron
RADARRADAR