Broadcast and Interactive Online Media

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Chapter 10

• Broadcast and Interactive Online Media

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The Structure of the TV Industry

• Networks
• Wired
• Unwired
• Public Broadcasting Service
• Cable/Subscription
• Syndication
• Local
• Interactive

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Network Television Wired and Unwired

• A network exists whenever two or more stations
  are able to broadcast the same program that
  originates from a single sources.
• American Broadcasting Company (ABC)
• Columbia Broadcasting System (CBS)
• National Broadcasting Company (NBC)
• Fox Broadcasting Company
• Affiliates can be owned by the national companies
  or they can be independent.
• Unwired networks are sales representative
  organizations that represent large market
  stations on a commission basis.

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Public and Cable Television

• PBS is an attractive medium for advertisers since
  it reaches affluent, educated households,
  minority market segments, and lower-income
  consumers.
• Commercials may be shown during the local 2.5-
  minute program breaks.
• Cable has grown because of programming options
  and two in three homes subscribe.
• Independent cable networks and a group of
  independent superstations provide most cable TV
  programming.
• Two categories of cable scheduling are network
  and local.

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Local and Specialty Television

• Local television stations are affiliated with a
  network and carry both network programming and
  their own programs.
• Local market is more varied than the national
  market.
• Specialty TV tries to reach certain audiences in
  way that is more effective or efficient than
  network, cable, or local television.
• Licensed low-power television (LPTV).

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Syndicated and Interactive Television

• Syndicated shows are TV or radio programs
  purchased by local stations to fill in open
  hours.
• Off-network syndication (which includes reruns of
  network shows) must have 88 episodes before it
  can be syndicated. Seinfeld
• First-run syndication (shows that did not meet
  the minimum number of episodes) move into
  syndication even as they continue to produce new
  episodes. Rescue 911
• Interactive television is one with computer
  capabilities.
• Three types video-on-demand, pay-per-view, and
  bandwidth technology.

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Changes in Broadcast Television
Cable is Firmly Entrenched Worldwide and Is Still
Growing
Battle Raging Over Who Will Control Digital TV
Technology
Network TVs Viewership Has Declined
Television is Now a Fragmented Medium
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Television Advertisers Media Choices (Fig. 10.3)
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Forms of Television Advertising

• Sponsorships
• Advertiser assumes the total financial
  responsibility for producing the program and
  providing the commercials.
• Participations
• Advertisers pay for 15, 30, or 60 seconds of
  commercial time during one or more programs.
• Spot Announcements
• Appear in the breaks between programs, usually
  local buyers.

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Measuring the TV Audience
A.C. Nielson Provides the Most Commonly Used
Measures of National and Local TV Audiences
Audimeter Records When The TV Set is Used
Which Station Watched
Viewing Diary Provides Data On Who is Watching
Shows
People Meters Which TV Shows Are Being Watched,
Number of Households Watching, Which Family
Members Are Viewing
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Advantages of Television
Reach a Large Audience in A Cost-Efficient Manner
Use of Sound and Moving Images Creates a Strong
Impact
Mediums Influence on Consumers Taste and
Perceptions is Pervasive
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Disadvantages of Television
Television Is Nonselective
Suffers From a Lack of Flexibility In Scheduling
High Cost of Producing Running Commercials
High Level Of Commercial Clutter
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Structure of Radio
AM Radio
FM Radio
Radio Can be Classified According to Transmission
and Power.
Web Radio
Cable DAB Radio
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Radio Advertising
Network Radio is a Group of Local Affiliates
Connected to One or More National Networks
Through Telephone Wire and Satellites and Has
Increased in Popularity Because of
Complete Market Coverage
Consolidation That Produced 4 Major Networks
Increase in Syndicated Shows
Emergence of Unwired Networks
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The Radio Audience

Station Fans
46, Clear Preference for One or Two Stations,
Listen Up to 8 Hours a Day.
Radio Fans 34, Listen to Four or Five Stations
With No Preference for One Station.
Radio is a Highly Fragmented Medium
Music Fans 11, Listen Exclusively for the Music
Being Played.
News Fans Choose Stations Based on a Need for
News and Information.
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Measuring the Radio Audience

• Measure of the number of people listening to a
  particular station at a given time
• Stations coverage, which is the geographic area
  that can pick up the station clearly.
• Better measure is circulation, which measures the
  number of homes that are actually tuned in to the
  particular station.
• Arbitron is an audience rating service.
• RADAR is another rating service.
• Birch/Scarborough-VNU conducts random phone
  interviews asking listening preferences.

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Radio
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Interactive Media

• Interactive technology (media) is a new form of
  broadcast media.
• Estimate that Internet will capture 50 million
  users by 2000.
• Formats for delivering ads
• Web page,
• Banner ad,
• E-mail.

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Practical Tips 1Some Internet Buzzwords

• Button ads. Squarish ads that are usually at the
  bottom of a Web page and contain only a corporate
  name or brand.
• Click-through. How often a viewer responds to an
  ad by clicking on it.
• Cookies. Information that gets stored on a
  viewers Web browser to help identify that
  particular person the next time it visits a
  particular site.
• Cost per click (CPC). Ad rate charged if the
  surfer responds with personal information.
• Cost per lead/sale. Rate charged to advertisers
  if the viewer responds with personal information.
• Impressions. Total number of times an ad is
  displayed on a Web page.

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Practical Tips 2Creating Effective Banner Ads

• Make sure to include action words, such as press,
  enter, or click here.
• Animation can increase response rate by 30 to 40
  .
• Avoid using nondescript colors such as beige and
  gray.
• The ad should relate to the Web site in both
  content and design.
• People want to interact with the ad, so make sure
  they can.
• Larger banner ads draw better results.
• Pretest all the elements of the banner ad.
• The life of a banner ad is very short, so keep
  changing it.

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Broadcast and Interactive Media Strategies
Advertiser Should Ask About
How Targeted The Audience Is
Cost of the Medium
Ability to Meet Advertising Objectives
Ability to Accommodate the Style of Message