WEB EXERCISE 7
Evaluation of Broadcast and Print Media
Focus: Chapters 11 & 12
Discussion Questions
1. Discuss the advantages and limitations of television as an advertising medium.
2. Discuss how radio stations, as well as advertisers, can deal with the clutter problem on radio and draw attention to their commercials. Provide an example of an advertiser who might be able to benefit from the contextual programming service offered by Clear Channel.
3. More magazines and newspaper publishers are now making their publications available online. Discuss how the availability of online magazines and newspapers is impacting the traditional print versions. How can publishers use online magazines and newspapers to attract more advertising revenue?
1
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Chapter 11
Evaluation of
Media:
Television and
Radio
11-
2
Advantages of Television
Excellent creativity and impact
High coverage and more cost-effectiveness
High captivity and
attention
Selectivity and flexibility
11-
3
Limitations of Television
Costs
Lack of selectivity
Fleeting message
Clutter
• Zipping: Occurs when viewers fast-forward through commercials as they play back a
previously recorded program
• Zapping: Changing channels to avoid
commercials
Limited viewer attention
Distrust and negative evaluation
11-
4
Network Advertising
Spreading messages by purchasing airtime from a
television network
Television network: Assembles a series of affiliates
to which it supplies programming and services
Affiliates: Allied local TV
stations
Networks have affiliates throughout the nation for
complete national coverage
11-
5
Network Advertising
Advantage
Simplifies the purchase process
Disadvantages
Cost of advertising on prime time is very high
Availability of time slots
Up-front market: Buying period that occurs before the
TV season begins
Scatter market: Buying period that occurs throughout the
season
11-
6
Spot and Local Advertising
Spot advertising: Commercials shown on local TV
stations
Time is negotiated and purchased directly from the
individual stations
National spot advertising: Nonnetwork
advertising done by a national advertiser
Local advertising: Airtime sold to local firms
2
11-
7
Spot and Local Advertising
Advantages
• Offers flexibility to national
advertisers
• Growth in syndication
Disadvantages
• Difficult to acquire
• Greater variations in the pricing policies and discount structure of
individual stations
• Station reps: Individuals who act as sales representatives for a number of
local stations in dealings with national advertisers
• Subject to more commercial clutter
11-8
Network versus Spot
May be local or “national
spot” commercials
Network
Spot &
Local
Purchase transactions
are simplified
Affiliated stations
that are linked
Commercials shown
on local stations
11-9
Syndicated Programs
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
11-10
Syndication
Syndicated
programs
• Shows that are sold or distributed on a station-by-station or market-
by-market basis
Types
• Off-network syndication – Reruns of network shows that are bought by
individual stations
• First-run syndication – Shows produced specifically for the syndication
market
• Advertiser-supported or barter syndication
• Shows are sold to stations in return for a portion of the commercial time in the
show
• Offers both off-network and first-run syndicated programs
11-11
Advantages and Disadvantages of
Syndication
Advantages
Saves money
Broadens reach for national
advertisers
Targets specific audiences
Disadvantages
Audiences are often rural
and older
Syndicators do not supply
much research information
Requires media buyers to
come up with a syndication
schedule to ensure
maximum reach
11-12
Methods of Buying 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
3
11-13
TV Advertising Buying Decisions
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
11-14
Methods of Buying Time
Sponsorship: Advertiser assumes responsibility for
the production and content of the program, and the
advertising that appears within it
Allows a firm to:
Capitalize on the prestige of a high-quality program
Have more control over the shows carrying their
commercials
11-15
Methods of Buying Time
Participations: Several advertisers buying
commercial time on a particular program
Advantages
Advertiser has no long-term commitment to a program
Expenditures can be adjusted to buy spots that fit within
the budget
Provides greater reach in the media schedule
11-16
Methods of Buying Time
Disadvantages
Advertiser has little control over the placement of ads
Availability of spots can be an issue
Spot announcements – Purchased from the local
stations, appear during adjacencies
Adjacencies: Time periods adjacent to network
programs
11-17
Selecting Time Periods and Programs
Cost of TV advertising time varies depending on
the:
Time of day
Particular program
TV time periods are divided into dayparts
Dayparts: Specific segments of a broadcast day
Advertising rates depend on the size and popularity
of dayparts
11-18
Cable Television
Delivers TV signals through fiber or coaxial wire
Cable networks and channels get revenues from ads
and subscriber fees
Superstations: Independent local stations that send
signals nationally via satellite to cable operators
Make their programs available to subscribers
Carry national advertising
4
11-19
Advertising on Cable Television
Has increased revenues steadily
National advertisers are turning to spot advertising
on local cable systems
Helps reach specific geographic
markets
Interconnects: Number of cable systems and
networks in a geographic area are joined for
advertising purposes
11-20
Common Television Dayparts
11-21
Advertising on Cable Television
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
11-22
Advertising on Cable Television
Advantages
Offers selectivity
Offers a chance for
narrowcasting
Narrowcasting: Reaching
very specialized markets
Low cost
Flexibility
Disadvantages
Overshadowed by major
networks
Audience fragmentation
Lacks penetration in major
markets
11-23
Future of Cable
Challenges
Increases in the number of channels
Changes in government regulations
Competition in the programming
distribution
business
Reaching relevant audiences
Growth due to multiplexing
Multiplexing: Transmitting multiple channels from
one network
11-24
Television Audience Measures
Size and composition measured by ratings services
• Home with at least one operable TV or monitor with the ability to deliver
video
Television household
• Percentage of TV households in an area that are tuned to a specific
program during a specific time period
• Ratings point: Represents 1 percent of all the television households in a
particular area tuned to a specific program
Program rating
5
11-25
Measuring the TV Audience
Total Audience
Program
Rating
Households
Using TV
Share of
Audience
11-26
Television Audience Measures
Households using television (HUT)
• Percentage of homes in a given area where TV is being
watched during a specific time period
Share of
audience
• Percentage of households using TV in a specified time
period that are tuned to a specific program
Total audience
• Total number of homes viewing any five-minute part of a
telecast
11-27
National
Audience Information
Nielsen television index
• Provides daily and weekly estimates of the size and
composition of the national viewing audiences
• For programs aired on the broadcast and major cable
networks
People meter
• Records what is being watched and by whom in 10,000
households
11-28
Local Audience Information
Designated market areas (DMAs): Non overlapping
areas used for planning, buying, and evaluating TV
audiences
Include group of counties in which stations are located
in a metropolitan or central area
NSI reports
Viewing times
Programs watched
Audience size estimates
Demographics
11-29
Local Audience Information
Local people meter (LPM) – Used to measure the
largest local markets
Sweeps: Viewing audiences in every local
television market are measured at least four times a
year
11-30
Developments in Audience
Measurement
Commercial ratings: Measures of the average
viewership of the commercials both live and up to
three days after the ads are played back on a DVR
Anytime anywhere media measurement (A2/M2) –
Introduction of electronic measurement in all local
markets
Addition of Internet and out-of-home measurement
in Nielsen’s People Meter sample
Development of passive measurement devices
6
11-31
Developments in Audience
Measurement
Cross-platform campaign ratings: Measures the
number of people who:
Watch an ad only on television
Who view an ad online
Overlap between the two
11-32
Radio and TV Similarities
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…
11-33
Advantages of Radio
Cost and efficiency
Receptivity
Selectivity
Flexibility
Mental imagery
Image transfer: Images of a TV commercial are
implanted into a radio spot
Integrated marketing opportunities
11-34
Rating of Emotional Attributes for Radio
This slide can be used to discuss the top five emotional attributes for radio advertising.
The graph shows that a majority of the consumers stated that radio advertising
improved their mood, while a substantial percentage also said that it made them relax,
comforted them, motivated them, and helped them have a good time.
11-35
Limitations of Radio
Creative limitations
Fragmentation
Chaotic buying procedures
Limited research data
Limited listener attention
Competition from digital media
Clutter
11-36
Buying Radio Advertising Time
Network radio – Purchased on a network basis
using one of the national networks
Spot radio provides:
Greater flexibility in selecting markets
Individual stations
Airtime and a chance to adjust the message for local
market conditions
Local radio – Purchased from individual stations by
local companies
7
11-37
Audience Information
Arbitron provides:
Person estimates – Estimated number of people
listening
Rating – Percentage of listeners in the survey area
population
Share – Percentage of the total estimated listening
audience
11-38
Audience Information
Average quarter-hour (AQH) figure
• Average number of people estimated to have listened to a station for
a minimum of five minutes during any quarter-hour in a time period
Cume
• Total number of different people who listened to a station for at least
five minutes in a quarter-hour period within a reported daypart
Average quarter-hour rating (AQH RTG)
• Estimated number of listeners as a percentage of the survey area
population
11-39
Audience Information
Average quarter-hour share (AQH SHR)
• Percentage of the total listening audience tuned to each station
Portable People Meter (PPM)
• Wearable device that electronically tracks what consumers listen to on
the radio
RADAR (Radio’s All Dimension Audience Research)
• Measurements are based on information collected throughout the year
1
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Chapter 12
Evaluation of
Media:
Magazines and
Newspapers
12-2
Magazines and Newspapers
Present detailed information that can be processed
at the reader’s own pace
High-involvement media
Magazines are the most specialized of all
advertising media
12-3
Classifications of
Magazines
Consumer
magazines
Farm publications
Business
publications
12-4
Consumer Magazines
Bought by the general public for information
and/or entertainment
Classification by:
Distribution – Subscription, circulation, and store
distribution
Frequency – Weekly, monthly, and bimonthly
Special-interest magazines – Help reach target
audience with little wasted coverage or circulation
12-5
Farm Publications
Directed to farmers and their families
Range from general-interest magazines to those in
specialized agricultural areas
Not classified with business publications
12-6
Business Publications
Major classifications
Magazines for specific professional groups
Industrial magazines for businesspeople in
manufacturing and production industries
Trade magazines for wholesalers, dealers,
distributors, and retailers
General business magazines for all business
executives
Health care publications for various areas
2
12-7
Advantages of Magazines
Selectivity
Reproduction quality
Creative flexibility
Permanence
Prestige
Consumer receptivity and engagement
Services
12-8
Consumer Receptivity and Engagement
Greater in magazines than in any other medium
With the exception of newspapers
Magazines are:
Primary source of information for consumers for a
variety of products
Capable of engaging the readers and retaining their
attention
12-9
Services
Split runs
• Two or more versions of an ad are printed in alternate copies of a
particular issue of a magazine
• Help determine which ad generates the most responses or inquiries
Selective binding
• Allows creation of hundreds of copies of a magazine in one continuous
sequence
• Computerized production process
• Enables magazines to address specific groups within their circulation base
Ink-jet imaging
• Projects ink onto paper rather than using mechanical plates
• Enables personalization of an advertising message
12-10
Disadvantages of Magazines
Costs
Limited reach and frequency
Long lead time
Clutter and competition
12-11
Magazine Circulation
Primary circulation
Number of copies distributed to the original
subscribers or purchasers
Determines magazine’s rate structure
Guaranteed circulation
Publishers give advertisers a rebate if the number of
delivered magazines falls below the guarantee
Figures are set safely below the average actual
delivered circulation
12-12
Circulation Verification
Alliance for Audited Media (AAM)
Audits consumer magazines and farm publications
Provides data and information critical to evaluating
and purchasing media
Audits digital replica editions of magazines
Controlled-circulation basis: Sending copies
individuals the publisher believes can influence a
company’s purchases
3
12-13
Readership and Total Audience
Pass-along readership: Occurs when:
Primary subscriber gives a magazine to another
person
Publication is read in doctors’ waiting rooms, on
airplanes, and so forth
Total audience or readership: Calculated by
multiplying the readers per copy by the circulation
of an average issue
12-14
Audience Information and Research for
Magazines
SRDS – Provides complete planning information on
domestic and international consumer, business, and
health care publications
Publication’s own research studies
Syndicated research studies
Business Publication Audits – Provide the titles of
people who receive a publication and the industry
they work in
12-15
Cost Elements Involved in Purchasing
Magazine Advertising Space
Variables to consider
Magazine’s circulation
Size of the ad
Position in the publication
Particular editions chosen
Special mechanical or production requirements
Number and frequency of insertions
12-16
Cost Elements Involved in Purchasing
Magazine Advertising Space
Positions available for ads
First cover: Outside front of a magazine
Second cover: Inside front of a magazine
Third cover: Inside back of a magazine
Fourth cover: Outside back of a magazine, sold at a
higher rate than any other position
Advertising space is sold on the basis of space units
Full page, half page, and quarter page
12-17
Cost Elements Involved in Purchasing
Magazine Advertising Space
Advertisers save money through:
Volume discounts – Based on the total space
purchased within a contract year
Magazine networks: Offer advertisers the
opportunity to buy space in a group of publications
as a package deal
12-18
The Future for Magazines
Publishers are focused on building:
Stronger editorial
platforms
Better circulation management
Cross-magazine and media deals
Database marketing
Technological advances
Electronic delivery methods
Native advertising: Integrates the advertising in online
publications with the environment and editorial content
4
12-19
Types of Newspapers
Daily newspapers
• Found in cities and
larger towns
• Provide detailed
coverage of events,
issues concerning the
local area
• Classifications –
Morning, evening, or
Sunday publications
Weekly newspapers
• Originate in small
towns or suburbs
• Focus on news, sports,
and events relevant to
the local area
• Appeal primarily to
local advertisers
12-20
Types of Newspapers
National newspapers
• Have national circulation and editorial content with a nationwide appeal
• Appeal to:
• Large national advertisers
• Regional advertisers that use specific geographic editions of these publications
Special-audience newspapers
• Offer specialized editorial content and are published for
particular groups
Newspaper supplements
• Included by papers in their Sunday editions
12-21
Types of Newspaper Advertising
Display advertising
• Uses visual devices in addition to the copy text
Classified advertising
• Ads are arranged under subheads according to the product, service, or
offering being advertised
Special ads and inserts
• Government and financial reports
• Notices and public notices of changes in business and personal
relationships
• Preprinted inserts: Printed by advertiser and taken to the newspaper to
be inserted
12-22
Advantages and Disadvantages of
Newspapers
Advantages
• Market penetration
• Flexibility
• Geographic selectivity
• Reader involvement
and acceptance
• Services offered
Disadvantages
• Poor reproduction
• Short life span
• Lack of selectivity
• Clutter
12-23
Categories of Newspaper Circulation
Figures
• Composed of the city where the paper is published and
contiguous areas similar in character to the city
City zone
• Market outside the city zone whose residents regularly trade
with merchants within the city zone
Retail trading zone
• Covers all circulation not included in the city or retail trade zone
All other areas
12-24
Sources of Audience Information
SRDS
Studies conducted by the papers
Commercial research services
Provide information on:
Standardized ad rates and circulation figures
General requirements
Contact information
Lifestyles
Media behavior
Product/brand preferences
5
12-25
General versus Local Rates for
Newspaper Ad Space
General advertising rates
• Apply to:
• Display advertisers outside the newspaper’s designated market area
(DMA)
• Any classification deemed by the publisher to be general in nature
• Rates are 75 percent higher than those paid by local
advertisers
Retail or local advertising rates
• Apply to advertisers that conduct business or sell goods or
services within the DMA
12-26
Newspaper Rates
Standard Advertising Units (SAUs)
• Use column widths 2-1/16 inches wide with:
• Tabloid-size papers five columns wide
• Standard or broadcast papers six columns
• Used for national advertising
Column inch
• One inch deep by one column wide
• Rates are quoted per column inch
• Total space costs is calculated by multiplying the ad’s number
of column inches by the cost per inch
• Used for local advertising
12-27
Rate Structures
Flat rates
• Offer no discount for quantity or repeated space buys
Open-rate structure
• Discounts are available based on frequency or bulk purchases of space
• Depend on the number of column inches purchased in a year
Run of paper (ROP)
• Paper can place the ad on any page or in any position it desires
Preferred position rate
• Allows advertisers to choose a specific section and/or position on a page
Combination rates
• Advertisers get a discount for using several newspapers as a group
12-28
Future for Newspapers
Challenges
Competition from other media
Circulation
Attracting and retaining readers
Increased use of online delivery and multiple
platforms