Broadcast Advertising

1. Broadcast Advertising

2. What is broadcast advertising? • broadcast advertising is known as mass marketing since national or even worldwide audiences can be reached • Broadcast advertising persuades consumers of the benefits of advertisers' brands.

3. What types are there? • Television • Radio

4. Who governs these types of advertisements? • Canadian Radio-television and Telecommunications Commission (CRTC)

5. What does the CRTC do? • Established a system of "quotas" to regulate the amount of Canadian program content broadcast in Canada. • The resulting Canadian content rules, which came to be known as "Cancon," were devised to stimulate Canada's cultural production by ensuring greater exposure for Canadian artists in Canada's marketplaces.

6. Radio • To qualify as "Canadian content," music must generally fulfill at least two of the following conditions(the MAPL system): • M (music) - the music is composed entirely by a Canadian. • A (artist) - the music and/or the lyrics are performed principally by a Canadian. • P (production) - the musical selection consists of a live performance that is (i) recorded wholly in Canada, or (ii) performed wholly in Canada and broadcast live in Canada. • L (lyrics) - the lyrics are written entirely by a Canadian. • Under the Commercial Radio Policy, 35 per cent of all music aired each week on all AM and FM stations must be Canadian. In addition, 35 per cent of music broadcast between 6 a.m. and 6 p.m. Monday through Friday must consist of Canadian content. • French-language radio stations are required to ensure that 65 per cent of the vocal music they broadcast each week, and 55 per cent of vocal music broadcast between 6 a.m. and 6 p.m. Monday through Friday, is in the French language. • Seven per cent of music aired on ethnic radio stations

7. History of the crtc • Telecommunications under the Railway Act • When Canada was new, the main telecommunications challenge was to create a system that served the Canadian population across a vast territory. The telephone and telegraph companies were regulated by the Board of Railway Commissioners under the Railway Act. The Board was responsible for approving telephone service rates, ordering the interconnection of telephone systems and installing lines along highways and other public places. • Early broadcasting regulations • When Parliament formed the first Royal Commission on Broadcasting, it recommended that Canada have a national broadcasting network, supervised by an independent federal agency. In 1932, the Canadian Radio Broadcasting Commission (CRBC) was established.The CRBC both provided a national broadcasting service and regulated all broadcasting in Canada. With its regulatory responsibilities, the CRBC was the earliest version of the CRTC.

8. History of the CRTC • Evolution to the CRTC • Since then, there have been commissions, studies, hearings and legislation on how best to regulate broadcasting and telecommunications. From these discussions, the role of the CRTC evolved.The CRTC was established by Parliament in 1968.Today, the CRTC supervises and regulates Canadian broadcasting and telecommunications while remaining independent – so it can serve the needs and interests of Canadian citizens, industry and government. It reports to Parliament through the Minister of Canadian Heritage. • http://www.crtc.gc.ca/eng/backgrnd/brochures/b19903.htm

9. Ownership and programming • Thanks to domestic newscasts and daytime programming, a very large percentage of the airtime in peak viewing hours (in most areas, 7:00 p.m. to 11:00 p.m.) can be devoted to programs of foreign origin, in large part due to the significant amount of programming available from the U.S., • A Canadian network is allowed to override the cable/satellite feed of an American broadcast signal when they air the same program simultaneously, ensuring that the Canadian broadcaster, not the American broadcaster, is able to benefit from the advertising revenue associated with broadcasting to the Canadian audience.

10. Ownership and programming • Generally, the CRTC will not approve transactions that result in one entity owning or controlling media outlets in more than two of the following categories: • in the same market: • local radio stations, • local television stations • local newspapers. • In assessing transactions under this policy, the CRTC will consider the transaction’s impact on the number of editorial voices in local markets. The CRTC will look at factors relating to the relevant market, including the ownership of new media outlets, such as the Internet, and the use of new media as a source for local news and information.

11. Ownership and programming • Generally, the CRTC will not approve a transaction resulting in one entity controlling more than 45% of total television audience share. • The CRTC will carefully examine transactions resulting in one entity controlling between 35% and 45% of the total television audience share. • In the absence of other policy concerns, the CRTC will expeditiously process transactions resulting in one entity controlling less than 35% of the total television audience share.

12. Ownership Rules • The CRTC’s common ownership rules for radio and television, which are as follows: • Radio: In markets with less than eight commercial radio stations operating in a given language, an entity may own or control three stations operating in that language, with a maximum of two stations in any one frequency band. In markets with eight stations or more operating in a given language, an entity may be permitted to own as many as two AM and two FM stations in that language.

13. Assignment one • In a word document: • Describe the role of the Canadian Radio-television and Telecommunications Commission (CRTC). In a 5 sentence paragraph at least. • Make a timeline that describes the history of radio in Canada. • What are the rules surrounding ownership found in radio? Why does the CRTC have these rules? How do they enforce these rules? • What are the rules surrounding programming found in radio? Why does the CRTC have these rules? How do they enforce these rules?