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Chapter 8 Using Television

Chapter 8 Using Television. Objectives. Understand The diversified nature of the television industry The multiple roles of television as an advertising medium The changing position of network television Syndicated rating services and television research methodologies

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Chapter 8 Using Television

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  1. Chapter 8 Using Television

  2. Objectives Understand • The diversified nature of the television industry • The multiple roles of television as an advertising medium • The changing position of network television • Syndicated rating services and television research methodologies • The various segments of television viewing

  3. Pros of Using Television • 99% of all U.S. households have television. • TV’s combination of color, sound, and motion offer creative flexibility. • Television is very efficient for large advertisers. • Digital television will create new opportunities for advertising and programming.

  4. Cons of Using Television • The television message is short-lived and easily forgotten without expensive repetition. • The television audience is fragmented and skewed to lower income consumers. • Shorter spots have contributed to commercial clutter. • Channel surfing and recording has decreased the amount of time spent viewing commercials.

  5. Television Bureau of Advertising

  6. Federal Communications Commission (FCC) The FCC is the federal authority empowered to license radio and television stations and to assign wavelengths to stations “in the public interest.”

  7. Cost is a Primary Limit for TV American Idol 5 broke the record for the most expensive 30-second ad ever for a regularly scheduled prime-time network series when it sold a 30-second ad for $705,000.

  8. Rating Point A rating point is the basic measure of television audience; it is the percentage of television households in the market a television stations reaches with a program. Rating = program audience / total TV households

  9. Gross Rating Points Gross rating points illustrate the weight of a schedule in terms of the total ratings for all spots bought. GRPs are a function of reach and frequency.

  10. Exhibit 8.2 GRPs Measure Weight of a Schedule

  11. Exhibit 8.3 Cost Per Point and Television Cost Efficiency

  12. Share Share of audience is the percentage of households using television tuned to a particular program.

  13. Exhibit 8.4 Ad Spending by Type of Television

  14. Exhibit 8.5 Historical Ratings

  15. Network Television • Networks are comprised of local stations that contract to carry network programming. • Networks sell national advertising on the basis of station clearance. • Compensation is a system whereby networks share advertising revenues with affiliates in return for using local station time for programs.

  16. Advertising Criteria for Network Television Demographics CPM Demand

  17. Exhibit 8.6 Top Network Television Advertisers

  18. Trends in the Upfront Market Greater demand for time Globalization Special events

  19. Reasons to Buy Spot • To allow network advertisers to provide additional GRPs in the markets with greatest sales potential • To provide businesses with less than national or uneven distribution a means of avoiding waste circulation incurred by network television • To allow network advertisers to control for uneven network ratings on a market-by-market basis • To support local retailers

  20. Exhibit 8.8 Top Spot Television Advertisers

  21. Dayparts • Morning, 7:00-9:00am Monday-Friday • Daytime, 9:00am-4:30pm Monday-Friday • Early fringe, 4:30-7:30pm Monday-Friday • Prime-time access, 7:30-8:00pm Monday-Saturday • Prime time, 8:00-11:00pm Monday-Saturday, 7:00-11:00pm Sunday • Late news, 11:00-11:30pm Monday-Friday • Late fringe, 11:30pm-1:00am Monday-Friday

  22. Local Television Advertising Preemption rates Special features Run of schedule (ROS) Package rates Product protection Schedule rotation

  23. Television Syndication • Syndication is the sale of television programming on a station-by-station, market-by-market basis. • Syndicated shows are sold on an advertiser-supported or barter basis. • Syndicated shows may be off-network syndication or first-run programs.

  24. Need for Programming The number of television stations means that there is a strong need for program content, like that offered by syndicated programs.

  25. Exhibit 8.10 Top Syndicated Television Advertisers

  26. Exhibit 8.11 Top Cable Advertisers

  27. Cable’s Success Factor: First-Run Programming

  28. Reasons for Cable’s Attractiveness to Advertisers Ability to target audiences Low cost Strong summer season Local and spot options

  29. Time-Shift Viewing

  30. Brand Integration

  31. Nielsen Media Research Nielsen is the primary supplier of syndicated television ratings.

  32. Nielsen’s People Meter

  33. Nielsen Rating System: Areas of Concern Sweeps weeks Diaries Exposure value

  34. TVQ Measures Show Popularity

  35. For Discussion • Compare and contrast syndication and spot buying. • Discuss the relationship between networks and their affiliates.

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