Copyright © 2012 Pearson Canada Inc. Chapter 9 Broadcast Media: Television and Radio 9-1.

Copyright © 2012 Pearson Canada Inc.

Chapter 9

Broadcast Media:

Television and Radio

9-1


Learning Objectives

Identify the organizations involved in the Canadian broadcasting industry

Assess the advantages and disadvantages of television and radio as advertising media

Explain the factors considered in, and procedures used, for buying television and radio time

Identify recent technologies affecting commercial television and radio in Canada

9-2


The CanadianTelevision Market

Television and radio reaches 99% of Canadian households.

90% of households have satellite or cable TV. On an average day, 82% of Canadians view

television at least once.

9-3


Television MarketThe television market is divided between: National Networks

e.g. , CTV – 18 stations

Regional Networks CTV operates regional networks in Ontario,

Atlantic Canada, and Saskatchewan

Specialty cable channels TSN, MuchMusic, History Channel

Pay TV Digital Networks

9-4


Trends Affecting Television and Television AdvertisingThe landscape of the Canadian Television industry is changing. Commercial Avoidance and Personal Video

Recorders Audience Fragmentation Alternative Viewing: Video-on-Demand Mobile Media Convergence of media ownership

9-5


Television Viewing Highlights

Media-viewing data is collected by two organizations in Canada: BBM Bureau of Measurement and Nielsen Media Research

A valuable resource for advertisers to assess advertising costs and for identifying what programs are popular.

Ratings are audience estimates expressed as a percent of the population in a defined geographic area.

9-6


Time Spent with Television and Other Media

9-7


Advantages ofTelevision Advertising

Impact & Effectiveness of Messages

Demonstration Capability

High Reach

Frequency Potential

Some Demographic Selectivity

Some selectivity for geographic coverage

9-8


Disadvantagesof Television Advertising

High Cost

Limitations on target-market selectivity

Audience Fragmentation

Commercial Avoidance

Lack of Planning Flexibility

9-9


Television Advertising Alternatives

Network Advertising

National Spot (Selective spot) Advertising

Sponsorships Opportunities

Product Placement and Branded Content

Station specific Advertising for local businesses

9-10


Television Ad Rates and Buying Procedures

Supply and Demand

Nature of Advertising Purchase

Type of Programs

Dayparts (Time of Day)

Length of Commercial

9-11


Buying Television Time

Media buying in television is a complex process.

National and Regional Networks Supply and demand system = grid card with varying price levels Spot rates depend upon daypart, audience size, and time of

year.

Local-Market Television Rates Offer continuity discount for 52-week contracts. Commercials are rotated vertically through the day, and

horizontally during the week

Gross Ratings Points are a key metric

9-12


Discounts Offered by Television

Frequency

Volume

Continuity

Seasonal

Package Plans

ROS (Run Of Schedule)

Pre-emption Rates

9-13


Media Optimizers

New optimizing software technology is playing a much bigger role in buying more efficient advertising time on TV.

An optimizer searches the TV-ratings database for daypart or program combinations that increase target reach (or reduce the cost of buying it)

9-14


The Canadian Radio Market 649 commercial radio stations in Canada 184 are AM (amplitude modulation) 465 are FM (frequency modulation) Average adult spends about 19 hours/week listening to

radio Radio broadcasting is divided between

Canadian Broadcasting Corporation (government funded) Independently owned and operated stations dependent

on advertising revenues

9-15


Trends Influencing the Radio Industry

Trends Influencing the Radio Industry: Digital Radio (e.g. CBC) Internet Radio (e.g. 3wk.com) Satellite Radio (e.g. Sirius Canada) Ipods and other Portable devices (e.g. iTunes)

9-16

http://www.cbc.ca/

http://www.3wk.com/

http://www.siriuscanada.ca/

http://www.apple.com/itunes


Radio Listening HighlightsConventional Radio are transmitted two ways: AM – varying the height of radio waves FM – varying frequency of radio waves

Tuning Hours: Average listener tunes in 16-21 hours a week

Teens spend 8 hours on iPods, cell phones, and Internet, which are more attractive to them

Radio is more popular in the morning, when people wake up or travel to work

9-17


Radio Station FormatsRadio audiences are largely determined by a station’s format (type and nature of the programming)

Adult Contemporary Golden oldies Country News/Talk Contemporary Hit Radio (CHR)

9-18


Pros and Cons of Radio Advertising

Advantages Disadvantages Target-Market Selectivity

Reach Potential

Frequency

Modest Cost for placement and production

Flexibility

Audience Fragmentation

Low engagement

Limited Message Retention

Media-Planning Consideration

9-19


Radio Advertising Rates and Buying Procedures

Seasonal Rate Structures

Dayparts Reach Plans Type of Advertiser

9-20


Radio Discounts

Number of spots over a specified period of time

FrequencyFrequency

VolumeVolume

ContinuityContinuity

Large number of spots

For a contract that covers a specified period of time

Continued…

9-21


Radio Discounts (cont.)Purchase a minimum weekly number of spots in return for a packaged discount rate

Package PlansPackage Plans

CombinationCombination

Run-of-ScheduleRun-of-Schedule

If they air commercials on more than one station

If allowed relocate commercials through schedule at its own discretion

9-22


Buying Radio Time

Factors that have an impact on the spot rate: Volume Frequency (the total number of spots in a

buy) Timing (in terms of day or season) Continuity (length of the plan)

9-23


Buying Radio Time

Rotation Plans

Vertical Rotation

Horizontal Rotation

Reach Plan (Total Audience Plan)

The rotation of commercials through dayparts based on predetermined frequency at the discretion of the station.

9-24


Radio Rate Card

9-25

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Copyright © 2012 Pearson Canada Inc. Chapter 9 Broadcast Media: Television and Radio 9-1.

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