Television: BeginningsNothing can beat TV with advertising (so immediate, powerful, and close to human response), advertisers own TV programs and associate their names with popular shows/stars, advertisers had enormous influence on TV industry in the early ages, advertisers created a blacklist and ruined lives, advertisers pay the bill so they can say who can and can’t work, some of the most popular quiz shows were fixed (b/c of pressure by advertiser on production company), the good-looking contestants were given the answers, scandal revealed and the nature of TV was changed forever—networks took over from the advertisers (sold it minute by minute to advertisers)—ushering in how advertising time is sold today, so that no one advertiser could own a show and pull somethingTelevision: ProfileReach—TV has the potential to deliver to huge audiencesFor national campaigns, TV is present in more than 99% of households in the country—HUGE, this enables the high reachTV is the primary advertising medium for national campaigns because of its high reach and frequencyOnly campaigns that can afford itFrequency—pretty good, can deliver high frequency to media plansDrawbacks of TelevisionClutter (1/4 ads, many 15 sec)Some ads are as short as 15 secondsHow do you make your ad memorable?Audience smaller, fragmented; lower incomeThese audiences are increasingly smaller and more fragmented in the pastThey are of lower income on average compared to magazine readers (audience usually of a higher income)Media choice segments a particular marketViewer avoidance: you can change the channelCostTelevision is very expensiveMust pay to make the ad then must also buy the advertising time slotsEphemeral message requires higher frequencyMeaning it comes and goes, so you must have higher frequency to make it stickStrengths of TelevisionHigh reach as a medium (not per show)Each show has a fairly small audience99% of all householdsCreative flexibilityColor, sound, motionDelivers large, national marketsReally the only medium that can deliver to huge marketsIncreasingly delivers national niche marketsCable are narrowly defined (garden channel, golf channel)Content is chosen to deliver to a particular demographicSo it is increasingly getting to smaller niche audiencesHigh UseTV/Cable –in terms of how much it is used is above radio and internet, and much above newspapers and magazinesA TV is typically on for 8 hours of the day in a householdBest UsesNational campaigns addressing large marketsTV is the only way to do itBrand messageCampaign that is a branding campaign (clearly deliver brand message), TV can do it very effectively because of visuals and soundPositioningIts combination of visual and sound, TV can do this very well3 different kinds of TV/advertising buysneed to know which one to use and whenNetwork buySpot buySyndication buyCategories: networkWant to buy time on a brand new showI go to the network (ABC) and ask to buy time on this brand new network show, they will put your ad out on all of its member shows (give them all cut of the money)Give money to network, and network sends ads out to all of its affiliate stationsCategories: Spot buyAgain, media planner wants to buy time on a brand new showI can be doing a campaign for a national campaign or a local campaignBuy from individual local stations; shown only on those stationsI don’t go to the network, but rather select some specific markets then go directly to each specific station with that show and buy time (because I want my ad to just appear in individual markets, not national)Categories: Syndication buyOnly difference between this and spot, I don’t want to buy time on new brand new shows but rather on reruns or non-network programmingTV actually gives media planner fair amount of flexibility in how he/she schedules to buy timeRatings: Audience UnitsDifficulty trying to define what do we mean by “television watchers”TV advertising had to work this out with the networks, here is what they came up with:2 kinds of audiences for television media buyingTV householdA residence with at least one TV in itHUT (Household Using Television)When the TV is actually onExtrapolated to infer actual audience size, if neededRating (size)How many TV households are tuned to this particular show?Rating will tell me thatRating = program’s TV householdsTotal TV householdsThis show has a rating of 8  8% of households with televisions are tuned to this showRating is a percentage of marketShare (probability)Measure of comparative popularity of a show compared to others on at the same timeShare is measure of head to head competition at that timeOf households using TV, what proportion are tuned to a specific show?Share will tell me thisShare = HUT watching a program x 100Total HUT in marketThis show has a share of 40, meaning 40% of households using television right now are tuned to that showTotals for single TV buyTelevision with exception of super bowl is bought as package spotSo understand how big an audience you are generating by buying a package of spots on one show vs. another showGRPSRating x number of spots bought on a particular showGI (gross impressions)Persons x number of spots bought on a particular showWill tell you how many impressions you are generating with that packageCost-effectiveness of all buysNot just the cheapestKey measures of cost effectiveness are dollars per GRP or GI$ per GRP = total cost of TV buysGRRs delivered by TV buys$ per GI = total cost of TV buysGIs delivered by TV buyswhichever has the lowestyou do these calculations to see which is the most cost effective for you and your media plannerIncreasingly a niche mediumemphasize how much TV is becoming a niche medium (not a medium for a huge market, but can develop well focused markets)this is due in large part due to the rearrangement of how TV is organized in this country1950s-1980s3 national broadcasting networks—so just 3 choices, so each show would attract pretty sizeable markets1980s and beyondchanges to increase number of channels and shows, making audience size of each show much smalleremergence of cableemergence of satellite networksprogram recording500 + channelsTV as an advertising medium can target precise marketsApple iBook campaign1999 national campaigntelevision important part of media planWhat kind of market?As big of a market as possible? Or a national size but niche market? If so what kind?why did they buy time on these particular shows?Show