McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 14
Using Electronic Media: Television and
Radio
14-2
Chapter Overview
Factors to evaluate when considering radio & television in
the creative mix
14-3
Chapter ObjectivesDescribe pros & cons of broadcast TV as an
ad medium
Evaluate different types of TV advertising
Discuss factors to consider when buying
TV timeDiscuss the pros and cons of cable TV ads
Explain the process of buying cable and
broadcast TV time
Describe TV audience measurement
Analyze pros & cons of radio in the creative mix
Discuss factors to consider when buying
radio time
14-4
The Medium of Television
Broadcast TV Cable TV
VHF and UHF
Independent Stations
Network Affiliates
Premium Services
Ad-Supported NetworksSuperstations
14-5
The Medium of TelevisionPros Cons
Mass coverage
Relatively low cost
Some selectivity
High production cost
High airtime cost
Limited selectivity
Impact
Creativity
Prestige
Brevity
Clutter
Zipping and zapping
Social dominance
14-6
TV Audience Trends
Demographics
DVD Rental
Cable households
Viewing patterns
TV viewing hours Audience fragmentation
14-7
The Medium of Television
How adult viewers rate various media
14-8
Types of TV Advertising
Sponsorship
Participation basis
Spot ads
Syndication
Infomercials
14-9
TV Ad Spending (Billions)
Network TV dominates, but is losing ground
14-10
Most Expensive 30-Second Spots
14-11
Network & Syndication Distribution
14-12
Cable TV Pros and ConsPros Cons
Selectivity
Audience demographics
Low cost
Limited reach
Fragmentation
Quality
Flexibility
Testability
Zipping and zapping
14-13
TV Audience MeasurementDaypartsRating
ServicesDefining TV
MarketsAudience Measures
Nielsen & Others
Cable Ratings
14-14
TV Audience MeasurementDaypartsRating
ServicesDefining TV
MarketsAudience Measures
Nielsen & Others
Cable Ratings
Designated Market Areas
14-15
Designated Market Area
Columbus, Georgia designated market area
14-16
TV Audience Measurement
Daytime 9 a.m. – 4 p.m.Early Fringe 4 – 5:30 p.m..
Early News 5 or 5:30 – 7:30 p.m.Access 7:30 – 8 p.m.
Prime Time 8 – 11 p.m.Late News 11 – 11:30 p.m.
Late Fringe 11:30 – 1 a.m.
DaypartsRating Services
Defining TV Markets
Audience Measures
Nielsen & Others
Cable Ratings
Designated Market Areas
14-17
TV Audience MeasurementDaypartsRating
ServicesDefining TV
MarketsAudience Measures
Nielsen & Others
Cable Ratings
Designated Market Areas
TV Households
Households Using TV
ProgramRating
AudienceShare
Total TVHH in areaTVHH tuned to program
=Rating
14-18
Buying TV Time
Cost per Point =CPPRatingCost
Cost per ThousandThousands of People
=CPMCost
Gross Rating Points Reach (avg rating) × Frequency=GRP
14-19
Buying TV Time
2. Select most
efficient programs
3. Negotiate prices and contracts
1. Request avails from media rep
14-20
Other Forms of Television
DBS MDS
STV SMATV
14-21
The Medium of RadioWho uses radio?
93% of U.S adults listen each week
72% of U.S. adults listen every day
Average time is 2.5 hours per day
Radio’s reach exceeds other media
14-22
Most Popular Program Formats
14-23
Pros and Cons of Radio AdsPros Cons
Reach & frequency
Selectivity
Cost efficiency
Limitations of sound
Segmented audiences
Short-lived, half heardTestability
Timeliness & immediacy
Clutter
Local relevance
Creative flexibility
14-24
Mini-network ProgrammingEach network targets a specific
demographic group
14-25
Special ProgrammingRadio
stations can increase
market share with special
programming
14-26
Buying Radio Time
LocalNetwork Spot
14-27
Key Radio Terms
Morning drive 6 a.m. – 10 a.m. Daytime 10 p.m. – 3 p.m.
Afternoon drive 3 p.m. – 7 p.m. Nighttime 7 p.m. – midnight
All night Midnight – 6 a.m.
DaypartsCumes Average quarter-hour audiences
14-28
Ratings Based on Dayparts
Gross Rating Points (GRP)
Average Quarter-Hour (AQH)
Total Audience Plan (TAP)
Run-of-Station (ROS)
AQH RatingPopulation
=AQH Persons × 100
GRP AQH Rating × No. of Spots=
Cume Estimates Cume Rating =Population
Reach Potential × 100
14-29
Satellite Radio
Sirius & XM are major players
Over 16 million listeners
Many program choices
Exclusive programming