ADV 205 1st Edition Lecture 12 Outline of Current Lecture I Cable and TV II TV Audience Measurements III Radio Current Lecture Cable and TV Cable Facts reaches 85 of TV households Most consumers receive more than 100 channels but watch 15 19 Cable households watch more house of TV than non cable households Most channels are privately owned Cable fees make up about 1 3 of cable revenues Broadcast TV facts Heaviest viewers are middle income high school educated Average US home viewers watch 4 5 hours of TV includes cable and VCR DVR per day Advantages of TV Pervasiveness Cost efficiency Impact Social dominance Mass coverage Disadvantages Production costs Clutter Wasted reach Inflexibility Intrusiveness Audience fragmentation Brevity What forms of advertising replace traditional commercials Sponsorship of TV programs and TV sporting events Product placements Interactive advertising during programs Ads embedded in VOD programs Ads within the DVR main menu These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Ads within VOD main menu Cable Advertising Pros Selectivity Audience demographics Low cost Flexibility Testability Cons Limited reach Fragmentation Quality Zipping and Zapping Buying TV time Sponsoring TV programs Participating in programs Purchasing spot announcements local or national Purchasing spots from syndicators Running program length ads Sponsorships advertiser assumes total financial responsibility for producing the program and providing the commercials Participations Where advertisers pay for 10 15 20 30 or 60 seconds of commercial time during a program Spot Announcements Commercials that appear in the breaks between programs Price is based on program ratings and day part Syndication Largest source of programming Forms o Off network 100 ER on TNT ABC o First Run o Barter Growth in Program length Ads Consumers pay attention and can respond immediately PLAs combine the power of advertising direct response and sales promotion PLAs allow for product demonstration and brand differentiation Results are measurable and accountable Measuring the TV audience Rating Points Share of Audience Gross Rating Points People meters Nielsen Media Research o Nielsen TV index NTI People meters in 55 markets Diaries in 210 local markets during sweeps Arbitron who uses a portable people meter PPM Audience Measurements TV households Audience Composition Total audience Audience share Households using TV Program rating Broadcast audience Measurements Rating points 1 rating point 1 Of a communications vehicle s coverage area that has been exposed to a broadcast program EX super bowl 40 national rating means 40 of all US households were tuned in TV audience measurement TV households TVHH Households using TV HUT o TVHH 500 turned on 50 HUT Rating TVHH tuned to a specific program Total TVHH in area o 100 1 000 10 10 Audience share of home with sets in use tuned to a specific program o TVHH specific program HUT o 100 500 2 20 o HUT Rating Share o Rating HUT Share o HUT x Share Rating Deturming the rating giving the viewing audience and tv owner population Demographic Women 18 Audience 5 216 000 Population 32 600 000 Buying TV time Determine available program and costs Analyze program efficiencies Negotiate process with station reps Determine number and frequency of viewers Sign broadcast contracts Review affidavits of performance Program Efficiency Cost per point CPP cost thousands of people Cost per thousand CPM cost Thousands of people Cost per thousand target market CPM TM cost thousands of people in target audience Radio Facts Radio reaches 99 of all US households and almost as many listen everyday Consumers aged 12 spend an average of 19 hours per week with radio Radio has a higher penetration than TV magazines and newspapers or the internet Advantages Target audience Affordability Frequency Flexibility Mental Imagery High level of acceptance Disadvantages Listener inattentiveness Lack of visuals Clutter Scheduling and buying difficulties Lack of control Structure of Radio Networks Public Cable AM vs FM o Cant match FM quality Talk has been its salvation LPFM like impact 89 Satellite Internet Audience Station fans Radio fans Music fans News fans 2 most popular formats o Country 19 o News Talk 12 Revenue Categories Local 75 National o Network radio advertising 5 Syndication radio advertising o National spot radio advertising o Network radio group of local affiliates connected to one or more national networks EIB o Syndication original programming has grown o Spot radio Advertiser places ad with an individual station rather than a network Radio Dayparts Morning drive 6 10am Daytime midday 10am 3pm Afternoon Evening drive 3 7pm Nighttime evening 7pm 12am Late night 12 6am Buying radio advertising Average quarter hour audience o Rating points of population listening in a 15 minute period o Share radio station audience total audience Schedule total of rating points GRPs o Duplicated Cume total of different people o Unduplicated Radio Terminology Run of station ROS Average quarter hour audience AQH Average quarter hour rating Average quarter hour share Steps in preparing a radio schedule Identify stations with greatest cume of target audience Identify station formats with best access to prospects Determine best dayparts Construct a schedule using rate cards to guide budget Evaluate buy in terms of audience delivery Determine CPM TM Negotiate and place buy