Broadcast Advertising

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Broadcast Advertising
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Advertising Defined

• Non-personal Communication
• Usually paid for
• By an identified sponsor
• Persuasive in nature
• About products, ideas or services
• Through various media

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Advertising in the Marketing Mix

• Product
• Quality, package, appearance, etc.
• Price
• Deep discount to premium
• Place
• Distribution channels
• Promotion
• POP, personal selling, PR, Advertising

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Advertising Classified

• By audience
• Consumer
• Business to Business
• Industrial
• Trade
• Professional
• Farm

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Advertising Classified

• Geographically
• National
• Regional
• Local
• International

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Advertising Classified

• By medium
• Electronic
• Radio
• Television
• Cable
• Internet

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Advertising Classified

• Print
• Newspaper
• Magazine
• Outdoor
• Billboard
• Transit

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Advertising Classified

• Specialty
• Novelties
• POP
• Product placement
• Etc.
• Etc.
• Etc.

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Advertising Classified

• By function
• Product -vs- non-product
• Commercial -vs- non-commercial
• Direct action -vs- non-direct action

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The advertising industry

• Agencies
• The media
• The advertisers
• The support services and suppliers
• The regulators
• The consumers

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Advertising History

• Functions of advertising
• Identify products and differentiate them
• Communicate information about product
• Induce consumers to try the product
• Increase product usage
• Build brand preference and loyalty

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Advertising History

• Dates to 1600s
• British newspapers paid notices

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Advertising History

• Ben Franklin is credited with introducing white
  space and illustrations

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Advertising History

• Magazines became first national medium
• Volney Palmer first ad agency 1841
• Bought newspaper and magazine space in large
  volumes at discount.
• Marked up 15
• N. W. Ayer first full service agency

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Broadcast Advertising History

• Out of the debate on how to pay for broadcasting
  came
• Toll broadcasting
• WEAF
• ATT station
• telephone philosophy of paying toll for long
  distance calls.
• First commercial broadcast
• http//www.old-time.com/commercials/1stcommercial.
  html

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Broadcast Advertising History

• Post WWI
• Radio grew
• Lifestyles improved
• Spending increased
• Radio networks emerged
• Advertising stressed the Unique Selling
  Proposition

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Broadcast Advertising History

• Television explodes post WWII
• Radio programs shift to television
• Radio adopts musical formats
• Advertising costs increase
• Sponsorships give way to participations or
  spots
• By the 1960s advertising entered the image era

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Broadcast Advertising History

• Depicting a lifestyle not product information
• Emotional appeals not logical appeals
• Remember the package not the name
• Focus on benefits to consumer

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The contemporary advertising industry

• Complicated by the proliferation of media
• Audiences are splintered
• Narrowcasting
• Clutter and competition
• High costs of media drive demand for research

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Effects of advertising

• On prices
• On competition
• On product image
• On demand
• Creating demands?
• Bran, fiber, carbs, cosmetics, vitamins, etc.
• Slow a declining market repositioning

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Media strategy

• Buying patterns
• Weekly cycles
• Monthly cycles
• Annual cycles
• Seasonal products
• Products/service with fixed maximum capacities

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Media strategy
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Media strategy
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Media strategy
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Media strategy
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Media strategy

• Reach
• Unduplicated exposures gross impressions
• Number of different people exposed to the message
• Frequency
• Average number of exposures
• How many times audience is exposed to message

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Media strategy

• Best frequency
• Outdoor, newspapers, magazines
• Best Reach
• Network advertising, magazines
• Best combination
• Radio

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Media strategy

• Calculating cost efficiency
• Cost per thousand (CPM)
• How much it costs to deliver 1000 gross
  impressions
• How much to reach 1000 listeners, viewers,
  readers, households, etc.

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CPM
2 spots _at_ 8.00 each 1 reaches 4500 QHP 1 reaches
3500 QHP
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CPM

• 4500 3500 8000 gross impressions
• 2 spots _at_ 8 16 cost of the schedule
• 16 8000
• .002
• .002 per person
• X 1000 2.00
• 2 per 1000 QHP

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CPM
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CPM
200 50000 .004
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CPM
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CPM
354 177000 .002
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Waste circulation

• Reaching people who are not the desired audience
• Demographics age, gender, income
• Psychographics lifestyle

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Audience research

• How we know the size of the audience reached
• Rating percentage of all possible viewers or
  listeners
• Share percentage of people using media
• Share is always a larger number

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Audience research
100
All possible viewers or listeners
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Audience research
100
TVHH
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Audience research
Not viewing
HUT
50
HUT level 50
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Audience research
Not viewing
Tuned to our spot
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Audience research
25 of TVHH 50 of HUT
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Audience research
Rating 25 Share 50
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Audience research terms

• Gross ratings points
• Average quarter hour people (QHP)

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Audience research

• Began in the 1920s with radio listenership
• Archibald Crossley personal interviews
• C. E. Hooper Hooperatings personal
• A. C. Nielsen
• Diaries
• Audimeter

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Audimeter
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A.C. Nielsen

• Now only television ratings
• Use diaries, audimeters and people meters
• Meters used for overnights

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A.C. Nielsen terminology

• Total survey area (TSA)
• Designated market area (DMA)
• Every county in the U.S. assigned to a DMA
• Metro survey area (MSA)

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Market areas
TSA
DMA
TSA
DMA
TSA
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Arbitron

• Radio research
• Dairies
• Developing the personal people meter (PPM)

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Arbitron terminology

• Total survey area (TSA)
• Area of Dominant Influence (ADI)
• Every county assigned to an ADI
• Metro survey area (MSA)

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Problems in audience research

• Poor return rates of diaries
• Absenteeism controlled by PMs
• Hyping
• What does listening or viewing really mean as
  it relates to advertising?