Evaluation of Broadcast Media

1. Evaluation of Broadcast Media © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2. Coverage and Cost Effectiveness Coverage and Cost Effectiveness Captivity and Attention Captivity and Attention Selectivity and Flexibility Television Advantages Creativity and Impact Creativity and Impact © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

3. Fleeting Message Cost Limited Attention Low Selectivity Zipping Clutter Zapping Negative Evaluation Distrust Television Disadvantages Fleeting Message Cost Limited Attention Low Selectivity Negative Factors Zipping Clutter Negative Evaluation Distrust © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

4. The Media Budget Is Sufficient to Generate and Sustain the Number of Exposures Needed. The Media Budget Is Sufficient to Generate and Sustain the Number of Exposures Needed. The Market Is Large Enough and Reachable Efficiently Through a Specific Network, Station, or Program. The Market Is Large Enough and Reachable Efficiently Through a Specific Network, Station, or Program. There’s a Genuine Need for a Medium With High Creative Potential to Exert a Strong Impact. TV Advertising Works Best When… The Budget Is Large Enough to Produce High Quality Commercials. The Budget Is Large Enough to Produce High Quality Commercials. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

5. Affiliated Stations Are Linked Purchase Transactions Are Simplified Commercials Shown on Local Stations May Be Local or “National Spot” Commercials Network Versus Spot Affiliated Stations Are Linked Network Purchase Transactions Are Simplified Commercials Shown on Local Stations Spot & Local © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

6. Off-network Syndication Are “Reruns” Programs Sold to Stations in Return for Air Time First-run Syndications Are Also Featured Syndicated Programs Off-network Syndication Are “Reruns” Sold and Distributed Station by Station First-run Syndications Are Also Featured Advertiser-supported or bartered © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

7. Sponsorship Participations Spot Announcements 1. Advertiser assumes responsibility for the production and perhaps content 2. Sponsor has control and can capitalize on the prestige associated with a show 1. Participating sponsors share the cost 2. May participate regularly or sporadically 3. Advertiser isn’t responsible for production 4. Participants lack control over content 1. May be purchased by daypart or adjacency Methods of Buying Time Sponsorship Participations © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

8. Network Versus Spot Network Versus Spot Reach Is the Primary Consideration but Ease of Purchase Is Important. Reach Is the Primary Consideration but Ease of Purchase Is Important. National Versus Local Spot National Versus Local Spot Spots Purchased by National Advertisers Are Known As National Spot. Spots Purchased by National Advertisers Are Known As National Spot. Sponsor, Participate, or Spot Sponsor, Participate, or Spot Method of Buying Affects Cost, Commitment, and Identification. Method of Buying Affects Cost, Commitment, and Identification. Specific Daypart and Weeks Scheduling Depends on Reach and Frequency Requirements. Three TV Buying Decisions © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

9. Prime Time Morning Late News Daytime Early Fringe Late Fringe Prime Time Access Late Night Common Television Dayparts 12 12 1 1 11 11 2 2 10 10 PM AM 9 3 9 3 8 4 8 4 7 5 7 5 6 6 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

10. Cable Cable Delivers signals through fiber or coaxial wire rather than the airways Delivers signals through fiber or coaxial wire rather than the airways Superstations Superstations Independent local stations that broadcast nationally via satellite through CATV Independent local stations that broadcast nationally via satellite through CATV PVRs Digitally record TV shows and store them on hard drive giving viewer control Other TV Vehicles © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

11. Characteristics Advantages Limitations • National, regional, and local available. • Targets specific geographic areas. • Highly selective “narrowcasting.” • Reaches specialized markets. • Low cost and flexibility. • Overshadowed by major networks. • Audience is fragmented. • Lacks penetration in major markets. Cable Television (CATV) Characteristics Advantages © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

12. Television Households Audience Measures Program Rating Share of Audience Households Using TV Measuring TV Audiences Television Households Audience Measures Program Rating Households Using TV © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

13. Program Rating Program Rating HH tuned to show HH tuned to show Rating = Rating = Total U.S. HH Total U.S. HH Share of Audience HH tuned to show Share = U.S. HH using TV TV Audience Measures © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

14. Sweeps Periods Are Used To Measure TV Audiences + © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

15. 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 Radio and TV Similarities Are time oriented media Are sold in time segments Have some network affiliates Both Media… Have some independents Use the public airway Are regulated by the F.C.C. Are externally paced media © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

16. Is More Limited Communication. Offers Only an Audio Message. Costs Much Less to Produce. Has Less Status and Prestige. Costs Much Less to Purchase. Radio Differs from TV Is More Limited Communication. Offers Only an Audio Message. Costs Much Less to Produce. Costs Much Less to Purchase. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

17. Adult contemporary News/talk Top 40 Country Urban Album rock Spanish Oldies Classic rock Modern rock Urban AC NAC/smooth jazz Religious Classical Remaining formats MOR/big band Radio Formats by Age Group 18-24 25-34 35-44 45-54 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

18. Advantages and Limitations of Radio Advantages Disadvantages Cost and Efficiency Cost and Efficiency Creative Limitations Creative Limitations Audience Fragmentation Audience Fragmentation Selectivity Selectivity Chaotic Buying Flexibility Flexibility Chaotic Buying Limited Research Data Limited Research Data Mental Imagery Mental Imagery Limited Listener Attention Limited Listener Attention Integrated Marketing Integrated Marketing Clutter © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

19. Nighttime Morning Drive Time Daytime All Night Afternoon/Evening Drive Time Dayparts for Radio 12 12 1 1 11 11 2 2 10 10 PM AM 9 3 9 3 8 4 8 4 7 5 7 5 6 6 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

20. Three National Networks • Over 100 Regional/Area Networks • A Multitude of Syndicated Programs • About 20% of All Spots • Allows Great Flexibility, Targeting • Purchase Transaction Can Be Difficult • Nearly 80% of Advertisers Are Local • Local CATV Is Becoming Competitive Buying Radio Time • Three National Networks Network Radio • Over 100 Regional/Area Networks • A Multitude of Syndicated Programs • About 20% of All Spots National Spot • Allows Great Flexibility, Targeting • Purchase Transaction Can Be Difficult Local Radio • Nearly 80% of Advertisers Are Local © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin