UNT RTVF 1310 - Chapter 7 - 1310 Outline Revised.doc (12 pages)

Previewing pages 1, 2, 3, 4 of 12 page document View the full content.
View Full Document

Chapter 7 - 1310 Outline Revised.doc



Previewing pages 1, 2, 3, 4 of actual document.

View the full content.
View Full Document
View Full Document

Chapter 7 - 1310 Outline Revised.doc

133 views


Pages:
12
School:
University of North Texas
Course:
Rtvf 1310 - Persp on Brdcst Tech
Unformatted text preview:

What is the Business of Broadcasting and Cable Broadcasting and cable have traditionally worked on the concept of linking viewers with advertisers while entertaining and informing the audience Stations and cable networks attract audiences because of their programming Advertising revenue generates the profits that make programming possible The Business of Broadcasting Mass media technology Affords an economical way to link large numbers of people with advertisers In electronic media there is an interplay among technology the consumer economics of each medium Economic Models for Electronic Media Broadcast stations and cable have different revenue streams Television and Radio model Originally a single revenue stream business The audience is the product that media delivers to an advertiser Cable model began as dual revenue stream model Like broadcasting cable can deliver an audience to an advertiser Cable also charges a monthly subscription fee for receiving the program delivered to the audience This dual stream model works for system operators and for cable networks Economic Models for Electronic Media Both Television and Cable have added revenue streams over time TV has added Retransmission consent income Digital programming distribution Cable ISP VOIP Digital programming distribution Competition and Electronic Media Electronic media all face competition Government oversight is tied to how competitive the media are Radio 11 000 commercial stations fewer regulations Television 1 300 commercial stations more regulations Cable Local franchise local mandates for serving the community Competition and Electronic Media Pure Competition Oligopoly there are a limited number of competitors Monopoly few market barriers allow many players to enter where there is no practical competition Fewer competitors more government regulation More competitors less government regulation Competition among Different Media Types People use various forms of media differently Competition for radio listeners radio is personal Competition for television viewers Other portable devices MP3 players and smartphones compete with radio Radio programs music news and talk TV competes with cable movie rentals etc Television programs dramas stories news and talk Advertisers will buy different media to reach listeners viewers during different times of the day Media Usage Comparison 2004 and 2010 Usage Per Person Determining a Medium to Buy The triangular relationship in the media business among Programmers Media sellers Media buyers Successful programs develop audiences Media buyers buy time from sellers within or near those programs Determining a Medium to Buy Marketers and advertisers develop a buying plan based on Population or market size Effective buying income Retail sales for the market geographical area Buying Power Index data related to expenditures of classifications of products for the specific market BPI tells the advertiser the market share of those offering similar goods services Advertiser may obtain additional data indicating how much the competition is spending on media Determining a Medium to Buy continued Media Buyers buy specific audiences for their products based on several criteria Demographics Age Sex Education Income Psychographics values and lifestyles of the audience likes dislikes style other cultural factors Placing the Ad Advertising Time Purchases Rate Cards the cost of advertising on specific stations Placing the Ad Packages a specific number of spots to run on one or more stations within a time frame known as a flight Specific Times Advertisers can buy specific time periods e g primetime on television drivetime for radio Television Dayparts Placing the Ad Specific Times Advertisers can buy specific time periods e g primetime on television drivetime for radio Advertisers can buy time throughout the broadcast day run of schedule Spot Position Fixed Position Adjacencies next to network or other programming Preemptible Non Preemptible ROS Alternative Ideas Per Inquiry Trade Deal or Trade Out Ads for goods or services Time Brokerage Program Length Commercials Determining a Medium to Buy continued Media Buyers use various formulas for determining the effectiveness of ad placement Gross Ratings Points Gross Impressions evaluates a run of x number of commercials over a specific time period that has a consistent rating for the target audiences reflects total of all persons reached by each commercial in an ad campaign Buyers use data to calculate how much money to spend to achieve their goals CPM Measuring Advertising Costs Media Buyers use standard formulas to figure out the actual cost of a commercial spot COST PER THOUSAND CPM is used to express the cost of reaching 1 000 members M of the audience Calculating the CPM you need to know the cost of the spot and the size of the audience CPM is a good way of expressing efficiency of the media buy Buying the Superbowl v American Idol Viewers for Superbowl XLV 162 9 million 30 Second Ad Rate 3 million 3 million 162 9 million 1 000 CPM 18 42 Viewers for AI Season 10 Finale 29 3 million 30 Second Ad Rate 700 000 29 3 million 1 000 CPM 23 89 CPP Measuring Advertising Costs COST PER POINT CPP takes analysis to the next level Allows the measurement of reaching a specific demo Broadcasting Sales Practices Radio and television sales are divided into several categories Local Spot Sales local commercials purchased to run on local stations local appliance store Network Sales time purchased within a television network program or on a radio network National Spot Sales buying time at various local stations using a national sales representative Defraying the Cost of Local Broadcast Advertising Cooperative advertising cost of ad is shared between manufacturer and local store Co op Example Joe s Sporting Goods Nike might offer a 50 50 co op plan based upon a 5 percent accrual rate This means if Joe s had purchased 100 000 worth of Nike product the store would have a 5 000 accrual to use toward the advertising of Nike product Under a 50 50 plan Joe s could order up to 10 000 worth of advertising and Nike would pay for half Television Sales Network Television is purchased in several ways Upfront Market Scatter Markets media purchases made before the television season actually begins four seasons where advertisers purchase time fall winter spring summer Purchasing time upfront or in the scatter markets each has advantages Economics of Networking Television Programming


View Full Document

Access the best Study Guides, Lecture Notes and Practice Exams

Loading Unlocking...
Login

Join to view Chapter 7 - 1310 Outline Revised.doc and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Chapter 7 - 1310 Outline Revised.doc and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?