COMM 122 1st EditionExam # 2 Study Guide Lectures: 9-15 Lecture 9 (February 26)1. How does the buying and selling of ads work?Inventory: every network has a certain amount of time to sell (total ad time available to sell)Upfront: market (IN SPRING)—60-70% - Every spring the networks put together all their pilots for their upcoming programs—they try to sell a certain amount of their inventory for the springScatter market: leftovers—when the fall comes around the 30-40% left are sold - Advertising time becomes more scarce so it costs more because it is more valuable - If a program turns out to be more popular—they can charge moreMakegoods: adjustments- In the upfront market when they buy time for the fall—they get a certain guarantee (10 million viewers)—if the program gets 12 million (that 2 million is free); however if the advertiser only gets 8 million then the network has to over make goods o Reduces the scatter market 2. How do the networks, affiliates, network compensation, reverse compensation; and retransmission fees work?Old Days: they paid compensation to the affiliates for carrying the program (broadcast network—>$$ compensation—> affiliates (local stations)- They then stopped paying because they didn’t have the money (no compensation)Now: cable systems—>$$ returns, fees—> affiliates (local stations)—>affiliates getting money from local stations so they have to payAnd: Broadcast networks  $$ reverse compensation  affiliates (local station)- More networks and stations looking to get money from the retransmission fees- Even though we pay for so much, advertising is still the main product—however, tv and online adspending are becoming closer and closer 3. What are advertising terms?Per inquiry ads: the advertiser doesn’t buy time fro the station; the station gives the advertiser time for free, the station gets paid when the someone calls the station and buys something Clipping: when a show is sold on syndication—station buys a syndicated station, 22 min of show, 2 min of promos, 6 min of advertising when they buy the show—they started to clip out the last 30 seconds in order to add more advertising (illegal—not supposed to edit)- Now: “time warping”—Speed it up digitally—may take 20 minutes so they cram more ads- Stations use software to adjust the audio so it doesn’t sound like it is skippingo Cutting out scenes that are redundantAdjacencies (network adjacencies): the commercials shown when a network program takes a break in the middle or between programs - The commercial that comes first and last at the break is called an adjacency (more valuable because they assume that more people are going to see them)Pod: a bunch of commercials shown in the middle – less valuable because people pay less attention Cooperative Advertising: a local franchise will get compensation from the headquarters company Double Billing: when the local station and the dealer tell the headquarters that it is more than it actually isthen they split itCommercial Clutter: we see so many, so often that we can’t remember the commercials 4. What is CPM?CPM (Cost per Thousand): how much an advertiser has to pay for every thousand people- Cost of ad/ (audience/1000)o 90,000 viewers, cost= $180, 180/90, CPM=$2o 50,000 viewers, cost $500, 500/50, CPM=$10- Even as the average audience has gone up, the cost for the audience has continued to go upo The more channels—watching different channels, smaller audienceso Less channels—watching more of the same, bigger audiencesLecture 10 (March 3)1. Explain Net Neutrality.FCC voted in favor of net neutrality (common carrier) The media determines what the regulations are, congress agrees- Cable industries gives hundreds of millions of dollars to Congress to get the laws they want- Ready to sue the FCC—hearings and investigations to watch them fight it out 2. What is Barter Syndication?Station buys 30-minute sitcom, 22 min show, 6 min of advertising—station buys show and has 6 minutes of advertising to sell - Barter syndication: when the station gets the – provides the program for less money, but 3 minutes of advertising are already sold- Commercials (some) included with (free) programming3. What are national spots?- National spots (non-network)—group of stations— Rely on National Sale Reps who put together packages of stations (good at attracting people of different demographics)—agencies don’t have to have knowledge of how to reach specific groups in specific places4. How do advertisers check to see if the ad is appearing when it is supposed to?Broadcast Advertising Reports: the ad appears when it is supposed to (verification services)- Before 1941: every station had to keep a computerized log of every commercial - Stations no longer required to keep track of all the ad paper in the 80’s (because of deregulation- Advertisers still want to know if they are appearing so they hire people to check and see VEIL (Video Encoded Invisible Light): Every ad is embedded with certain special codes to make sure the ad goes on- Many come and go: TNS, Media Monitors, Audible Magic, Confirmedia, MediaGuide, Aircheck, Eloda, ScanAmerica, TeleTrax, KeepingTrac… 5. How do ratings represent a lack of cultural diversity?Ratings represent feedback to the networks about what people like and don’t like- Ratings= cultural democracy (voting is watching or not watching)—vote on whether we like it or not (watching counts towards voting)—controlled by viewers - Not everyone’s vote counts equally:o High ratings don’t guarantee success—if the “Wrong” audience or too expensive (younger viewers wanted) o Networks that are popular may have huge audiences but the audiences are attracting the wrong demographicso Not everyone gets to “vote”—adequate representations of minorities—minorities under sampled (sometimes advertisers don’t care much because minorities often don’t have as much spendable income)Revelation about how advertisers view minorities: memo warning advertisers not too buy too much advertising time on ethnic stations because you would lose the opportunity to reach the more important people (reaching suspects not prospects)—Represent a lack of cultural diversity 6. How does weighting work?Weighting: equalizing the differences in the sampling - If the group= 10% of the populations, but 8% of sample (Weighted by 1.25—8 x 1.25= 10)- If the group is 10% of the populations, but 1% of the