Lecture Advertising and promotion: An integrated marketing communications perspective (10/e): Chapter 11 - George E. Belch, Michael A. Belch

Chapter 11 - Evaluation of media: Television and radio. After completing this unit, you should be able to: To examine the structure of the television and radio industries and the role of each medium in the advertising program; to consider the advantages and limitations of TV and radio as advertising media; to explain how advertising time is purchased for the broadcast media, how audiences are measured, and how rates are determined;...

Chapter 11 Evaluation of  Media:  Television  and Radio Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Advantages of Television Excellent creativity and impact High coverage and more costeffectiveness High captivity and attention Selectivity and flexibility Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Limitations of Television Costs Lack of selectivity Fleeting message Clutter Limited viewer attention • Zipping: Occurs when viewers fast-forward through commercials as they play back a previously recorded program • Zapping: Changing channels to avoid commercials Distrust and negative evaluation Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Network Advertising Advantages Simplifies the purchase process Disadvantages Cost of advertising on prime time is very high Availability of time slots  Up­front market: Buying period that occurs before the  TV season begins  Scatter market: Buying period that occurs throughout  the season Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Spot and Local Advertising Advantages • Offers flexibility to national advertisers • Growth in syndication Disadvantages • Difficult to acquire • Greater variations in the pricing policies and discount structure of individual stations • Station reps: Individuals who act as sales representatives for a number of local stations in dealings with national advertisers • Subject to more commercial clutter Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Network versus Spot Network Affiliated stations  that are linked Purchase transactions  are simplified Spot & Local Commercials shown  on local stations May be local or “national spot”  commercials Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Syndicated Programs Sold and  distributed station  by station Advertiser­ supported or  bartered Off-network syndication are “reruns” First-run syndications are also featured Programs sold to stations in return for air time Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Syndication Syndicated programs • Shows that are sold or distributed on a station-by-station or market-by-market basis Types • Off-network syndication - Reruns of network shows that are bought by individual stations • First-run syndication - Shows produced specifically for the syndication market • Advertiser-supported or barter syndication • Shows are sold to stations in return for a portion of the commercial time in the show • Offers both off-network and first-run syndicated programs Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Methods of Buying Time Sponsorship 1. Advertiser  assumes  responsibility  for the  production and  perhaps  content 2. Sponsor has  control and  can capitalize  on a show’s  prestige Participations 1. Participating  sponsors share  the cost 2. May occur  regularly or  sporadically Spot  Announcements 1. May be  purchased  by daypart  or adjacency 3. Advertiser  doesn’t do  production 4. Participants lack  control over  content Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education TV Advertising Buying Decisions Network Versus  Spot Reach is the primary consideration but  ease of purchase is important National Versus  Local Spot Considerations are the geographic markets  and ability to acquire airtime Sponsor,  Participate, or Spot Method of buying affects cost, commitment,  and identification Specific Daypart  and Weeks Scheduling depends on reach and  frequency requirements Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Common Television Dayparts Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Advertising on Cable Television Advantages National, regional, and  local available Highly selective  “narrowcasting” Low cost Limitations Overshadowed by  major networks Audience  fragmentation Lacks penetration in  major markets Flexibility Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Television Audience Measures  Size and composition measured by ratings services Television household • Home with at least one operable TV or monitor with the ability to deliver video Program rating • Percentage of TV households in an area that are tuned to a specific program during a specific time period • Ratings point: Represents percent of all the television households in a particular area tuned to a specific program Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of 13 McGraw-Hill Education Measuring the TV Audience Total Audience Program Rating   Share of  Audience Households  Using TV Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Radio and TV Similarities Are time oriented media Both  Both  Media… Media… Are sold in time segments Have some network affiliates Have some independents Use the public airway Are regulated by the F.C.C Are externally paced media Are passive, low­involvement Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Advantages of Radio  Cost and efficiency  Receptivity  Selectivity  Flexibility  Mental imagery  Image transfer: Images of a TV commercial are  implanted into a radio spot  Integrated marketing opportunities Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of 16 McGraw-Hill Education Limitations of Radio Creative limitations Fragmentation Chaotic buying procedures Limited research data Limited listener attention Competition from digital media Clutter Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of 17 McGraw-Hill Education Buying Radio Advertising Time  Network radio ­ Purchased on a network basis  using one of the national networks  Spot radio provides:  Greater flexibility in selecting markets  Individual stations  Airtime and a chance to adjust the message for local  market conditions  Local radio ­ Purchased from individual stations by  local companies Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of 18 McGraw-Hill Education Figure 11.7 ­ Dayparts for Radio Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of 19 McGraw-Hill Education  ...Advantages of Television Excellent creativity and impact High coverage and more costeffectiveness High captivity and attention Selectivity and flexibility Copyright © 2015 McGraw-Hill Education... distributed on a station-by-station or market-by-market basis Types • Off-network syndication - Reruns of network shows that are bought by individual stations • First-run syndication - Shows produced... Considerations are the geographic markets  and ability to acquire airtime Sponsor,  Participate, or Spot Method of buying affects cost, commitment,  and identification Specific Daypart  and Weeks Scheduling depends on reach and