Broadcast Media Basics Broadcast Media Basics Media than transmits sounds or images electronically Radio TV video movie cell phones Bought in time seconds minutes Messages are fleeting Engage sight and sound more entertaining Radio advertising engages the imagination and television creates powerful brand imagery Both radio and TV use emotion and repetition to intensify memory Prentice Hall 2009 9 1 Radio Basics Radio Basics More than 10 000 commercial radio stations mostly serving local markets Radio industry growth is flattening with only a 5 increase in national ad spending for 2007 and only a 1 decrease in local ad spending Prentice Hall 2009 9 2 Radio Industry Structure Radio Industry Structure AM FM Public Radio Cable Radio Satellite Radio FM signal travels about 50 miles better tonal quality AM signal travels up to 600 miles poor tonal quality National Public Radio affiliates target the affluent Primarily non commercial accept corporate sponsorships Usually commercial free subscribers pay 7 12 mo Requires special radio subscribers access around 100 stations LPFM Low Power FM Nonprofit noncommercial reaches 3 5 miles Web Radio Webcasting Audio streaming through Web site offers diversity small audiences very localized Prentice Hall 2009 9 3 The Radio Audience The Radio Audience Highly segmented by type of music format Listeners divided into segments Station fans largest group women 25 54 Radio fans 1 3 of listeners under 35 and women 55 Music fans 11 men 25 54 plus older adults News fans Mainly 35 Audiences grouped by dayparts Morning Drive Time 6 10 a m Mid Day 10 a m 3 p m Evening Drive Time 3 7 p m Evening 7 p m midnight Late Night midnight 6 a m Principle Media planners use radio for tight targeting of narrow highly segmented markets Prentice Hall 2009 9 4 Radio Audience Measurement Radio Audience Measurement Coverage number of homes able to pick up station tuned in or nor Ratings percent of homes tuned to a station Audience Rating Services Arbitron Ratings Company estimates audiences for 250 markets in United States RADAR Radio s All Dimension Audience Research estimates audiences for both local and network radio Prentice Hall 2009 9 5 Radio Advertising Radio Advertising Delivers high frequency using jingles for repetition Uses drama to engage the imagination as in Public Service Announcements PSAs which are created free by agency personnel and run broadcast free by media Principle Radio advertising has the power to engage the imagination and communicate on a more personal level than other forms of media Prentice Hall 2009 9 6 Radio Revenue Categories Radio Revenue Categories Network Radio Advertsing Group of local affiliates connected to one or more national networks ABC CBS Westwood One Unistar Clear Channel National medium for food beverages cars over the counter drugs Growth has contributed to increase in syndicated radio Spot Radio Advertising Advertiser places ads with an individual station not a network Makes up nearly 80 of all radio advertising due to flexibility Messages can be tailored for particular audiences Flexibly in content timing and rates Syndicated Radio Advertising Offers advertisers a variety of high quality specialized and usually original programs Advertisers value syndicated programming because of the high level of audience loyalty the Paul Harvey show Prentice Hall 2009 9 7 Using Radio Effectively Using Radio Effectively Highly targeted and inexpensive Excellent reminder reinforcement capabilities Builds frequency through repetition Targets audiences through specialized programming Sparks imagination through theater of the mind Messages have higher level of acceptance than TV due to loyalty of listeners to programs stations Timing is critical Radio advertising must break through the clutter Lack of visuals hinder demonstration of products Prentice Hall 2009 9 8 Television Basics Television Basics Television is pervasive 98 of U S homes have at least one television 60 have three or more televisions Parents and early childhood experts are concerned about children s TV use U S kids spend about 4 hours day watching TBV Principle Television advertising is tied to television programming and its effectiveness is determined by the popularity of the television program Prentice Hall 2009 9 9 Television Industry Structure Television Industry Structure Prentice Hall 2009 9 10 Television Industry Structure Television Industry Structure Network Television Network Television 2 stations broadcasting same program from a single Program service with 15 hours of prime time programs source per week 8 11 p m Local and national advertising plus some regional pay for station and network operations Networks originate programs provide them to local affiliates audiences Network audiences especially young men are eroding Prentice Hall 2009 9 11 Television Industry Structure Television Industry Structure Cable and Subscription Television Cable and Subscription Television Initially to improve reception Now provides highly targeted special interest programs Stealing ad revenue from network TV Independent cable networks and superstations e g CNN ESPN provide 8 of cable programs Network cable vs local cable Prentice Hall 2009 9 12 Television Industry Structure Television Industry Structure Local Television Local Television Independent stations are not affiliated with networks Advertisers are local retailers financial institutions automobile dealers restaurants supermarkets Usually bought station by station National retailers may place spot buys city by city to match product distribution supplement national buys or launch a new product in selected cities Prentice Hall 2009 9 13 Television Industry Structure Television Industry Structure Public Television Public Television Formerly commercial free now offers program sponsorships No price or quality comparisons or ask for purchase Run only during 2 5 minute program program breaks Principle If you want to reach an otherwise difficult to reach target the difficult to reach affluent household one way to do it is to use public television program sponsorships Prentice Hall 2009 9 14 Distribution Formats Distribution Formats Low power television LPTV 15 mile radius outlet for those underserved by full power stations hotels and restaurants Via satellite usually major sporting and music Pay per view events Program Syndication Independent TV and cable stations purchase reruns First run syndication current shows are purchased from