Chapter 11 Presentation
- 1. Promotional Strategy MKT4230 Evaluation of Media: Television and Radio Patricia Knowles, Ph.D. Associate Professor Clemson University 1
- 2. 2 Promotional Strategy MKT4230 2 The Impact of DVRs on Television Although television is still the primary form of entertainment in most households, and the largest advertising medium, viewing habits are changing. Consumers can now watch programs when, where, and how they want… and that does not include commercials. Plus, the audience has been fractured by the large number of programs available from which to choose. Textbook Pages 363 - 365 DVRs also make it easier for content providers to push programming directly to end users, on a pay-per-view, commercial-free basis. This is essentially TV on demand, which makes it more difficult to measure viewing audiences, more difficult to develop media plans for television, and more difficult to capture and retain the attention of consumers. Viewing habits are also being impacted by other technologies, such as video game consoles and online video streams (YouTube, Hulu). However, the average household still watches more than 7 hours of television per day.
- 3. 3 Promotional Strategy MKT4230 3 Television Advantages Television is unique in its ability to combine visual images, sound, motion, and color. These characteristics provide the advertiser with an opportunity to develop the most creative and imaginative advertising appeals of any medium. • Creativity and Impact: The interaction of sight and sound offers tremendous creative flexibility and opportunities for the advertising message • Coverage and Cost Effectiveness: TV can reach large audiences cost effectively • Captivity and Attention: Commercials impose themselves on viewers as they watch their favorite programs and are likely to be seen unless some effort is made to avoid them • Selectivity and Flexibility: Audiences vary by program content, broadcast time, and geographic coverage; cable television offers additional selectivity Textbook Pages 365 - 367
- 4. 4 Promotional Strategy MKT4230 4 Top 10 Network TV Advertisers This visual shows a list of the top ten network television advertisers from 2006. Textbook Page 366 / Figure 11 - 1
- 5. 5 Promotional Strategy MKT4230 5 Selectivity and Flexibility Advertisers are trying to turn TV advertising into a selective media. Some selectivity is possible due to variations in the composition of an audience as a result of: • Program content • Broadcast time • Geographic coverage Textbook Pages 367 For example, Saturday morning programs cater to children and Saturday and Sunday programs target the sports-oriented male. The Oxygen cable network, as shown in this ad, is trying to capture young, upscale women who like to try new products, as well as recommend them to others.
- 6. 6 Promotional Strategy MKT4230 6 Television Limitations This visual presents the disadvantages of TV that limit its use by many advertisers. Textbook Pages 367 - 372 Low Selectivity Fleeting Message Cost Clutter Distrust Negative Evaluation Limited Attention Negative FactorsZipping Zapping
- 7. 7 Promotional Strategy MKT4230 7 Network vs. Spot This visual shows the differences between network and spot/local advertisements. Textbook Pages 373 - 375 May be local or “national spot” commercials Network Spot & Local Purchase transactions are simplified Affiliated stations that are linked Commercials shown on local stations
- 8. 8 Promotional Strategy MKT4230 8 The CW Network The major television networks that currently exist in the United States: NBC, ABC, and CBS. A fourth major network is Fox, which broadcasts over a group of affiliated independent stations. The other television network in the United States is CW, which was formed in 2006 when WB and UPN merged. Textbook Pages 373 - 374 / Exhibit 11 - 5 The CW Network is co-owned by CBS/Viacom and Warner Bros., which is part of the Time Warner media conglomerate. The CW Network targets the 18-to-49 demographic, but does not offer a prime- time schedule. It airs 15 hours of prime- time programming over six days, with only a morning cartoon block on Saturdays. Popular shows on this network include America’s Next Top Model and Supernatural.
- 9. 9 Promotional Strategy MKT4230 9 Test Your Knowledge _____ are shows that are sold or distributed on a station-by-station, market-by-market basis. A. Spot broadcasts B. Televised advertorials C. Affiliate programs D. Participation programs E. Syndicated programs
- 10. 10 Promotional Strategy MKT4230 10 Syndicated Programs This chart shows how syndicated programs are sold or distributed. Textbook Pages 375 - 377 Off-network syndication are “reruns” First-run syndications are also featured Advertiser-supported or bartered Sold and distributed station by station Programs sold to stations in return for air time
- 11. 11 Promotional Strategy MKT4230 11 Top 10 Syndicated Programs This chart shows the Top 10 regularly scheduled syndicated programs for the 2009-2010 season. Textbook Pages 375 - 377
- 12. 12 Promotional Strategy MKT4230 12 Methods of Buying Time These are the three methods of buying television advertising time: Sponsorship 1. Advertiser assumes responsibility for the production and perhaps content 2. Sponsor has control and can capitalize on a show’s prestige Participations 1. Participating sponsors share the cost 2. May occur regularly or sporadically 3. Advertiser doesn’t do production 4. Participants lack control over content Spot Announcements 1. May be purchased by daypart or adjacency Textbook Pages 377 - 378
- 13. 13 Promotional Strategy MKT4230 13 TV Advertising Buying Decisions These are various ways a company can purchase commercial time on television and a summary of the characteristics of each. Textbook Pages 377 - 378 Considerations are the geographic markets and ability to acquire airtime. National Versus Local Spot Reach is the primary consideration but ease of purchase is important. Network Versus Spot Method of buying affects cost, commitment, and identification. Sponsor, Participate, or Spot Scheduling depends on reach and frequency requirements. Specific Daypart and Weeks
- 14. 14 Promotional Strategy MKT4230 14 Common Television Dayparts This chart shows common television dayparts: Textbook Pages 378 - 379 / Figure 11 - 3
- 15. 15 Promotional Strategy MKT4230 15 Cable Television Cable television has now reached 91% of the nation’s 114.9 million households. Cable networks and programs have a dual revenue stream… monthly subscription charges and ad revenue. Cable TV broadens programming options available to the viewer as well as the advertiser by offering specialty channels, including all-news, music, weather, and educational channels. Many cable systems also carry superstations… independent local stations that send their signals nationally via satellite. Programming on superstations generally consists of sports, movies, and reruns of network shows. Expanded viewing options via cable have led to audience fragmentation, which can help advertisers better target their audience. Textbook Pages 379 - 380
- 16. 16 Promotional Strategy MKT4230 16 Advertising on Cable Television These are the advantages and limitations of advertising on cable TV: Textbook Pages 381 - 383 Advantages 1. National, regional, and local available 2. Highly selective “narrowcasting” 3. Low cost 4. Flexibility Limitations 1. Overshadowed by major networks 2. Audience fragmentation 3. Lacks penetration in major markets
- 17. These are the future challenges that face cable television: 17 Promotional Strategy MKT4230 17 The Future of Cable Textbook Pages 383 - 384 Govt. regulationsMore channels CompetitionDBS services New technology Future Challenges
- 18. 18 Promotional Strategy MKT4230 18 Test Your Knowledge The sole source of network television and local audience information is: A. Arbitron Co. B. Nielsen Media Research C. RADAR D. Smart-TV E. Burke Research
- 19. 19 Promotional Strategy MKT4230 19 Measuring the TV Audience These are the various ways in which an audience can be measured: Textbook Pages 385 - 387 Total Audience Program Rating Households Using TV Share of Audience
- 20. 20 Promotional Strategy MKT4230 20 TV Audience Measures This is how program rating and share of audience numbers are calculated: Textbook Pages 386 Share of Audience Program Rating
- 21. 21 Promotional Strategy MKT4230 21 National Audience Information Nielsen Media Research has a national RV ratings service known as the Nielsen Television Index, which provides daily and weekly estimates of the size and composition of the national viewing audience. Textbook Pages 387 Nielsen uses a national sample of 10,000 homes, which are carefully selected be representative of the population of U.S. households. Ratings are based on the viewing patterns of the homes, which are measured using the people meter shown on this slide. Data collected by the people meter includes when the set is turned on, which channel is viewed, when the channel is changed, when the set is off, and who is viewing. The demographic characteristics of the viewers are also in the system, and viewership can be matched to these traits.
- 22. 22 Promotional Strategy MKT4230 22 Local Audience Information This is a list of the information provided by an Neilsen Station Index (NSI) report: Textbook Pages 387 - 388 NSI Reports • Viewing times • Programs watched • Audience size estimates • Demographics
- 23. 23 Promotional Strategy MKT4230 23 Sweeps Periods This chart shows how WJZ in Baltimore promotes its dominance of the sweeps ratings in various categories. Textbook Page 38 / Exhibit 11 - 13
- 24. 24 Promotional Strategy MKT4230 24 Developments in Audience Measurement These are the three developments in audience measurement: Textbook Pages 388 - 390 Commercial Ratings Data (C3) Engagement Metrics Anywhere Media Measurement (A2/M2)
- 25. 25 Promotional Strategy MKT4230 25 Radio and TV Similarities These are the similarities of radio and television, which are the two major forms of broadcast media that can be used for advertising. Textbook Pages 388 - 390 Are time oriented media Are sold in time segments Have some network affiliates Have some independents Use the public airway Are regulated by the F.C.C. Are externally paced media Are passive, low-involvement Both Media…
- 26. 26 Promotional Strategy MKT4230 26 Advantages of Radio This is a list of some of the advantages that radio has as an advertising medium: Textbook Page 391 - 395 Mental Imagery Flexibility Selectivity Receptivity Cost and Efficiency Integrated Marketing
- 27. 27 Promotional Strategy MKT4230 27 Radio Gives Customers a Clearer Picture This visual shows a Radio Advertising Bureau ad that promotes the synergy between radio and newspaper advertisements. Radio can also be used in conjunction with a number of other media and events, including: • Sales promotions • Event marketing • Cause-related marketing • Place-based/point-of-purchase promotions • Special sales • Live broadcast promotions at beaches and sporting events Textbook Page 395 / Exhibit 11 - 17
- 28. 28 Promotional Strategy MKT4230 28 Buying Radio Time These are the various options for purchasing advertising time on the radio: Textbook Pages 397 - 398 Over 100 regional/area networks Three national networks A multitude of syndicated programs Network Radio About 20% of all spots Allows great flexibility, targeting Purchase transaction can be difficult Spot Radio Nearly 80% of advertisers are local Local CATV is becoming competitive Local Radio
- 29. 29 Promotional Strategy MKT4230 29 Radio Time Classifications This chart shows the dayparts breakdown for radio advertising: Textbook Page 398 / Figure 11 - 7
- 30. 30 Promotional Strategy MKT4230 30 Test Your Knowledge Arbitron: A. Measures local radio audiences B. Measures listenership to webcasts C. Provides radio stations with monthly cume ratings D. Now owns RADAR, which is a source of national network rating numbers E. All of the above
- 31. 31 Promotional Strategy MKT4230 31 Audience Information This visual shows the major radio listener ratings providers: Textbook Page 398 - 401 Person Estimates Share RatingArbitron Network audience measuresRADAR