<p> CHAPTER SIXTEEN USING ELECTRONIC MEDIA: TELEVISION AND RADIO</p><p>OBJECTIVES To present the important factors advertisers need to evaluate when considering the use of radio and television in the creative mix. Each medium has its own characteristics, advantages, and drawbacks. Advertisers must be able to compare their merits and understand the most cost- effective ways to buy advertising time. (p. 514) After studying this chapter, your students will be able to: 1. Describe the advantages and drawbacks of broadcast television as an advertising medium. 2. Discuss the advantages and drawbacks of cable TV as an advertising medium and explain how it differs from broadcast television. 3. Explain the process of buying cable and broadcast TV time. 4. Evaluate the different types of television advertising available. 5. Describe the process of audience measurement. 6. Discuss the main factors to consider when buying television time. 7. Analyze the pros and cons of using radio in the creative mix. 8. Explain the major factors to consider when buying radio time.</p><p>TEACHING TIPS AND STRATEGIES Students will be introduced to the advantages/disadvantages of radio, cable, and network television in this chapter. I find breaking the chapter up into different segments as the following helps to increase understanding of the different mediums.</p><p> Advantages of Television  Disadvantages of Television  Difference between network television and cable television  Advantage/disadvantages to each  Advantages of radio/disadvantages of radio</p><p>I find that students tend to not be as well informed of the differences between network television and cable television. They think that because they watch MTV everyone else does. One thing I recommend focusing on during this chapter is the surprising fragmentation that is happening with the number of television stations available. I do not see this problem easing anytime soon, due to the increase of satellite television subscribers. Currently I have satellite television and have over 200 channels alone. This cannot be good for television advertisers not only does it reduce the reach and frequency the proliferation of channels causing more remote flipping then less channels. On page 519 is the advantages/disadvantages of Network Television. On page 523 is the advantages/disadvantages of Cable Television. </p><p>29 I have not read it anywhere, but as I drive, I see more and more people on cell phones then ever before. I believe this is reducing the impact of radio a little bit. Instead of listening to the radio, many people are catching up with family and friends. Radio is still a strong medium, and can give great rewards (see Snapple story in chapter). Radio has really changed over the last two decades due to consolidation in the industry. Now many radio stations are owned by corporations such as Clear Channel Communications. I see this trend continuing with less locally owned radio stations that cater only to the local market. On page 538 is the advantages/disadvantages of radio.</p><p>LECTURE OUTLINE I. Introduction (pp. 515-516) — California Milk Producers needed to move more moo juice out of the supermarkets and into the homes of consumers. Using offbeat camera perspectives and lighting techniques possible only through television, the “Got Milk” campaign offered immense visual appeal. In addition, the ultimate medium for reaching the masses brought an action component to the campaign. People began buying milk again. II. The Medium of Television (p. 516) Today, the medium of television is available to advertisers in two principal forms: broadcast and cable. Exhibit 16-1 Top 10 network TV advertisers in the U.S. (2001) (p. 516) A. Broadcast TV (pp. 516-517). Broadcast television reaches its audience by transmitting electromagnetic waves through the air across geographic territories. It has grown faster than any other advertising medium in history. The U.S. has over 1,248 commercial TV stations; Canada has another 127. About half of the stations are VHF (very high frequency, channels 2 through 13); the other half are UHF (ultrahigh frequency, channels 14 through 83). Stations operate independently unless they are network affiliates (ABC, NBC, CBS, and FOX). Network affiliates and independent stations may subscribe to nationally syndicated programs as well as originate their own programming. Increasing competition from cable TV is causing the national network programs to lose viewers. B. Cable TV (p. 517). Today, other electronic media are changing the 30-year dominance of broadcast TV. Chief among the challengers is cable television. There are now more than 25 national cable networks in the U.S. and a growing number of regional networks. There are also a handful of superstations, local over-the-air TV stations whose signals are delivered via satellite to cable systems across the country and that carry some national advertising. In 2000, cable reached 77 percent of all homes. There are now 55 national cable networks. Exhibit 16-2 Major cable TV networks (p. 518) C. TV Audience Trends (p. 518) As a way to reach a mass audience, no other medium today has the unique creative abilities of television: the combination of sight, sound, and motion; the opportunity to demonstrate the product; the potential to use special effects; the empathy of the viewer; and the believability of seeing it happen right before your eyes. </p><p>30 Exhibit 16-3 Viewers rate television as the most authoritative, influential and persuasive medium (p. 518) A16-1 (p. 518) 1. Heaviest viewers — middle-income, high school educated individuals and their families; most programming is directed at this group. 2. Number of TV viewing hours has steadily increased. Average home has TV / Cable / VCR on for 8.5 hours every day; children and teenagers view an average of 17.5 to 17.8 hours per week, around the world, older women watch TV the most (36 hours per week). 3. Individual program audiences vary widely. Households with cable watch less broadcast TV, spend less time listening to radio, reading, or going to the movies. Result: “audience fragmentation.” Checklist “The Pros and Cons of Broadcast TV Advertising” (p. 519) 4. Video rentals have also increased dramatically, drawing more viewers away from all advertiser-supported TV (cable & broadcast), which is why ads on videos have started appearing, albeit slowly. 5. Cable households watch more television than noncable TV households (56.2 hours per week versus 41.6 hours), watching 22.8 hours of cable programming per week. 6. Cable advertising revenues are growing steadily with local retailers liking cable TV. Exhibit 16-4 Cable households and purchased goods and services (p. 520) 7. Recent studies indicate the availability of 165 channels by 2005, but, like today, only 12 are expected to be watched regularly. D. The use of Television in IMC (p. 521) A16-2 Toyota Celica advertisement (p. 521) A16-2 (p. 521) 1. Cable TV offers narrow casting and low cost for local advertisers. Offers viable option for an integrated marketing communications program. 16-5 Exhibit Top 10 cable network advertisers (p. 522) 2. TV good for delivery of certain messages to large, well-defined audiences. TV has no rival for image, awareness advertising, and brand reinforcement messages. 3. TV reaches many stakeholders, not just customers, important brand meaning (symbolism or personality of the brand). 4. TV is a leverage tool — low CPM with high visibility. 5. If the creative is good, TB increases “ad liking,” a characteristic that improves brand image. E. Types of TV Advertising (p. 522). Advertisers use different strategies to buy time on broadcast and cable TV. Advertisers buy a TV program’s audience. There are various ways advertisers can buy time on TV: Checklist “The Pros and Cons of Cable TV Advertising” (p. 523) Exhibit 16-6 TV advertising spending May 13, 2002 (p. 523) A16-3 (p. 523) 1. Network advertising (p. 523) a. Networks offer large advertisers convenience and efficiency because message can be broadcast simultaneously throughout the country. The</p><p>31 broadcast networks tend to reach masses of American consumers — a cross- section of the population — while the cable networks tend to reach more selective niches. b. Sponsorship refers to when an advertiser underwrites the total cost of a program and is responsible for the program content and the cost of production. c. Co-sponsorship reduces costs — common for sporting events where several advertisers sponsor a program. 1) Very costly. 2) Audience identification with prestige. 3) Sponsor controls placement and content of commercial. d. Most network time is sold on participating basis with several advertisers buying 30- or 60-second segments within the program. This enables them to spread their budgets and avoid long-term commitments to any one program. Some advertise on alternate weeks or program segments. Exhibit 16-7 Advertising costs on selected prime-time TV shows (2002) (p. 524) A16-4 (p. 524) Ethical Issue: “Advertising to Children: Child’s Play?” (pp. 524, 525) 3. Spot Announcements (p. 524) a. Run in clusters between programs — cheaper than participations and more flexible than network advertising because they can be concentrated in specific regions of the country. b. Available on national or local basis. c. May be purchased in 10-, 15-, 30, or 60-second blocks. Involves contacting individual stations. d. A number of large cable rep firms are now working to make the purchase of spot cable more convenient for national advertisers (EDI, ADValue). e. Satellite technology and digital systems that interconnect various cable companies in a region are also being established. f. Spots only available at station breaks or other less desirable times likely to be lost in clutter and have lower viewership. 3. Syndication (p. 525). Sale of programs on a station-by-station, market-by-market basis—an increasingly popular alternative to network advertising. Gives stations access to inventory for their spots. Television syndication comes in three forms: Exhibit 16-8 TV network and syndication distribution (p. 525) A16-5 (p. 525) a. Off-network syndication — former popular network programs (reruns) are sold to individual stations for rebroadcast. b. First-run-syndication — original shows produced specifically for syndication market. c. Barter syndication (also called advertiser-supported syndication) — first- run programs offered free or for a reduced rate but with some of the ad space presold to national advertisers. Exhibit 16-9 Syndication viewing shares for total daytime dayparts (p. 526)</p><p>32 4. Program-Length Ads (PLAs) (p. 526). Infomercials prove long-form commercials can sell. a. Consumers pay attention and can respond immediately . b. Goes where there is less competition. c. May run for as much as 30 minutes in length and can demonstrate products and build brand differentiation far better than a 30-second commercial. d. Results are measurable / accountable. e. Ad campaign self-paying plus supports retail trade. f. PLAs combine the power of advertising, direct response, and sales promotion. 5. Local TV advertising (p. 527) a. Most local advertising is purchased by retailers, often in cooperation with nationally known manufacturers, spending $10 billion annually. b. Local stations sell spot announcements. c. Sometimes local advertisers develop and sponsor local programs. III. TV Audience Measurement (p. 527) A. Rating Services: The Book (p. 527) 1. Rating services pick a representative sample of the market, measure the program audiences of TV and radio stations and furnish data on the number and characteristics of the viewers / listeners for advertisers and broadcasters. 2. Most commonly used TV rating service is the Nielsen (NTI), which is based on a sample of 5,000 households equipped with people meters and reports TV, cable, and home video viewing. Nielsen covers 53 people meter markets and 210 markets using diary surveys for 1,500 local TV stations, 140 cable operators, 48 syndicators, and 2,000 ad agencies. 3. Data published in “The Books” twice a year. Ad Lab 16-A “Where Do Those Infamous TV Ratings Come From” (p. 528) 4. NTI is considered antiquated and monopolistic by many. In response, big three networks funding SMART-TV testing in 500 homes. B. Cable Ratings (p. 529) 1. Reliable information on cable programs is harder to gather. ADcom Information Services installs recording devices to measure cable. Confirmed Nielson is under-reporting audiences. 2. Interpreting cable ratings is a confusing process since the media planner has to integrate so many different sources of information. C. Defining Television Markets (pp. 529, 531). TV rating services define geographic TV markets to minimize the confusion of overlapping TV signals. The Nielsen station index uses the term: designated Market Areas (DMA) — for geographical areas (cities, counties) in which local TV stations attract most viewing. Exhibit 16-10 Market data from Nielsen Media Research for Casper-Riverton, Wyoming (p. 530) D. Dayparts (p. 529) Advertisers must decide when to air commercials and on which programs. Refer to the television dayparts breakdown on page 529. Unlike radio listeners, TV viewers</p><p>33 are loyal to program, not stations. Ratings depend on the time of day a program runs. Television time is divided into dayparts as follows: 1. Seven periods of the day, which vary in viewership a. Prime time (8:00-11:00 p.m. EST) has highest viewing level. b. Late fringe ranks high with adults (11p.m.-1a.m. EST). c. Daytime and early fringe are viewed most heavily by women (9a.m.- 5:30p.m.). 2. Advertiser's objective is to achieve daypart mix that provides highest possible reach to advertiser's target audience. E. Audience Measures (p. 529) Rating services and media planners use many terms to define a station’s audience, penetration, and efficiency. 1. TV Households (TVHH) refers to the number of households that own TV sets in a particular market — indicates size of potential audience. 2. Households using television (HUT) is the percentage of homes in an area that have one or more TV sets turned on at any particular time. 3. Program rating is the percentage of TV households in an area that are tuned to a specific program. (See formula in text p. 531) 4. Audience share is the percentage of homes with sets in use (HUT) tuned to a specific program (ratings measure audience as percentage of all TVHH whether TVs are on or off). 5. Total audience is the total number of homes reached by some portion of a program. 6. Audience composition is a breakdown of total audience into demographic categories. F. Gross Rating Points (GRPs) (p. 531) 1. Total rating points achieved by a particular media schedule over a specific period. Reach (average rating) x Frequency = Gross rating points. 2. A weekly schedule of five commercials with an average rating of 20 would yield 100 GRPs. IV. Buying Television Time (p. 531). The process of buying TV time can be lengthy and, depending on the number of stations in the buy, quite involved. Advertisers or media buyers must: ·Determine program costs and availability. ·Analyze various programs for efficiency. ·Negotiate price with reps. ·Determine reach and frequency. ·Sign broadcast contrasts. ·Review affidavits to proof performance of ad run. These procedures are so complex that most large advertisers seek the assistance of ad agencies or media-buying services. Local advertisers typically rely on station reps to determine the best buys for the money. A. Requesting Avails (p. 532)</p><p>34 1. Media buyer contacts reps or stations to find out what programs are available and how they match advertiser's objectives. 2. The media buyer gives the rep information about the advertiser's media objective and target audiences and asks the rep to supply a list of avails (available time slots) along with prices and ratings. B. Selecting Programs for Buys (p. 532) 1. The media buyer selects the most efficient programs in relation to the target audience using the cost per rating point (CPP) and cost per thousand (CPM) for each program. CCP = Cost / Rating CMP = Cost / 1000 people 2. The media buyer substitutes stronger programs for less efficient ones to get the best buys within the available budget. Ad Lab 16-B “Getting ‘You’re Out’on TV” (p. 533) C. Negotiating Prices and Contracts (p. 532) — television stations and cable companies publish rate cards to sell their airtime. However, since TV audiences are estimated at best, television reps will always negotiate prices. 1. The buyer has numerous ways to negotiate lower rates: a. Work out package deal; b. Accept run-of-schedule positioning (the station chooses when to run the commercials); or, c. Preemption rates which are lower because the advertiser agrees to be "bumped" (preempted) if another advertiser pays the higher, non-preemption rate. 2. Station contract is legal document stipulating date, time, program, length of spots, rate per shot, total amount, and various obligations, responsibilities, and terms. 3. Makegoods refer to free advertising time an advertiser receives to compensate for spots the station missed or ran incorrectly. 4. After the spots run, the station returns a signed and notarized affidavit of performance to the advertiser indicating when the spots were aired and what makegoods are available. D. Electronic Media Software (p. 533) with the Internet, today’s broadcast media buyers can have access to SRDS and Simmons research data to create and even buy media schedules with electronic avails. Reuters’ AdValue Network buying opportunities for broadcast media MediaPlan’s Adventory-TV media buys MediaPlan’s Volume Rating Point (VRP), WebRF will all aide in optimizing the media schedules and determining the best frequency level for the campaign V. Other Forms of Television (p. 534) A. Direct broadcast satellite (DBS) uses satellite dishes to pick up channels. B. Multipoint distribution systems (MDS) reefers to a microwave delivery system where cable is not available. C. Subscription television (STV) is over-the-air pay TV.</p><p>35 D. Satellite master antenna television (SMATV) refers to the use of satellite dish to pick up signals for TV sets in apartment complexes. VI. Advertising on Video Rentals (p. 534). Research shows that home-video renters are younger and more upscale than the general population. In addition, the majority of video renters do watch the commercials that precede the movie — sometimes more than once. However, more recent research has shown that video renters find ads on tape intrusive and somewhat offensive. In addition, many just zip through them to get to the movie. The primary uses of the medium are the movie studios advertising coming attractions. Difficult to measure. VII. The Medium of Radio (p. 534) Radio is a personal, one-on-one medium; people listen alone. In addition, radio is mobile. Most people listen faithfully to two or three different radio stations with different types of programming. Radio is adaptable to moods. A. Who Uses Radio? (p. 534) — in an average week, 95% of the U.S. population listens to radio; in an average day, over 75%. Exhibit 16-11 Daily and weekly reach for radio adults 18+ (p. 535). A16-6 (p. 535) 1. The average American spends about three hours a day listening to the radio. 2. Most national advertisers are discovering radio's reach and frequency potential and the low CPMs. B. The use of radio in IMC (p. 535) 1. While TV is a passive medium, radio actively involves people, whether listening to their favorite personality, or calling in requests, or participating in a contest. Radio creates relationships, and that is ideal for IMC. 2. Radio lets national companies tie in to a local market and target the specific demographic group they want to reach. 3. Most important, radio enables advertisers to stretch their media dollars through imagery transfer. C. Radio Programming and Audiences (pp. 535-538). Radio stations plan their programming carefully to reach specific markets and to capture as many listeners as possible. The larger the audience, the more a station can charge for commercial time. Therefore, extensive planning and research go into radio programming and program changes. Exhibit 16-12 Example of radio format (p. 537) A16-7 (p. 537) 1. FM offers quality sound fidelity. AM stations focus on programs that do not need good sound quality, such as talk, news, and sports. 2. FM stations have more than 70 percent of the radio audience. 3. Advertisers buy the station’s format (usually not the individual programs), choosing from one of the dozen or so standard programming formats. 4. Resurgence of radio networks (20 national radio networks). Exhibit 16-13 Mininetworks (p. 537) A16-8 (p. 537) 5. The largest national radio advertisers are major retailers, car companies, beer and wine producers, telecommunications companies, and packaged-goods marketers. Checklist “The Pros and Cons of Radio Advertising” (p. 538) VIII. Buying Radio Time (p. 538) Exhibit 16-14 Radio’s top 10 network and national spot advertisers in the US (2001) </p><p>36 (p. 538) A. Types of Radio Advertising (p. 538) An advertiser may purchase network, spot, or local radio time. 1. Networks (p. 538) a. Advertisers may use one of the national networks to carry their messages to the entire national market simultaneously via stations that subscribe to the networks' programs. b. Advantages — networks provide simple administration and low effective net costs per station. c. Disadvantages — lack of flexibility in choosing affiliated stations, limited number of stations on network roster, long lead-time required to book time. 2. Spot Radio (p. 539) affords national advertisers greater flexibility in their choice of markets, stations, airtime, and copy. Can air commercials quickly — some stations requiring as little as 20 minute’s lead-time. 3. Local Radio (p. 539). Local time refers to spots purchased by local advertiser or agency using the same procedure as with national spots. Spots are generally prerecorded for quality, but live spots are available. B. Radio Terminology (p. 539). Much radio terminology is the same as for other media, but some terms are specific to radio. The most common of these are the concepts of: 1. Dayparts (p. 539) a. Five basic dayparts: morning drive, daytime, afternoon drive, nighttime, and all night. b. Rating service disregards all night, since listening is very limited. c. Heaviest listening generally occurs during drive times (6-10 a.m. and 3-7 p.m.) on weekdays. Ad Lab 16-C “The Reports that Make or Break Radio Stations” (p. 540) d. Rates are based on dayparts. RL 15-1 “SRDS Spot Rate & Data listing for KWOD (FM) in Sacramento, California” (Website) e. Run-of-station rate (ROS) refers to the lowest rate; gives station control over when to run the spot. f. Total audience plan (TAP) is a package rate that guarantees a certain percentage of spots in better dayparts. 2. Average quarter-hour audience (AQH persons) (pp. 539-540) RL 15-2 “The Arbitron Radio Market Report” (Website) a. Identifies the average number of people listening to a specific station for at least 5 minutes during any 15-minute period of any given daypart. b. The average quarter-hour rating expresses the AHQ persons as a percentage of the population. AQH persons / Population x 100 = AQH rating</p><p>37 c. The same idea can be expressed in terms of average-quarter-hour share: the station's audience (AQH persons) expressed as a percentage of the total radio listening audience in the area. AQH persons of a station / AQH persons of all stations x 100 = AQH share d. The gross rating points of a radio schedule are the sum of all ratings points delivered by that schedule, or the gross impressions expressed as a percentage of the population being measured. a) AQH rating x Number of spots = GRPs b) Gross Impressions / Population x 100 = GRPs 3. Cume estimates (p. 541) a. Cume persons is the total number of “different” people who listen to a radio station for at least 5-minute in a quarter-hour within a reported daypart (also called “unduplicated audience”). “Reach potential” for the “unduplicated audience” is judged by rating services. b. The cume rating is the cume persons expressed as a percentage of the population being measured. Reach potential x 100 / Population = cume rating (%) C. The Seven Steps in Preparing a Radio Schedule: (pp. 541) 1. Identify stations with greatest concentration (cume) of advertiser's target audience by demographics. 2. Identify stations whose format typically offers highest concentration of potential buyers. 3. Determine which time periods (dayparts) on those stations offer the most (average quarter hour) potential buyers. 4. Using the stations' rate card, construct a schedule with strong mix of best time periods. 5. Assess the proposed buy in terms of reach and frequency. 6. Determine the cost for each 1,000-target people the station delivers. 7. Negotiate and place the buy. RL 15-3 “Spot Commercial Instructions” (Website)</p><p>AD LAB 16-A “Where Do Those Infamous TV Ratings Come From?”(p. 528) 1. What are the advantages and disadvantages of the various measurement methods? Diary method (2,400 diary homes) • Advantages: Less expensive than people meter; enables advertiser to get local market information. • Disadvantages: Difficult to keep track of what has been watched; forget to write in diary; one person recording for rest of family; variations in recording methods from household to household. Audiometer (1,700 black boxes attached to TV’s) • Advantages: People not required to fill out the diary; automatic recording; highly accurate for the information it gathered.</p><p>38 • Disadvantages: No record of who was viewing, nor any demographic information on viewers. People meter • Advantages: Instantaneous results; less subject to human error; can keep track of who is watching as well as what is being watched; more accurate. • Disadvantages: Demographics may be skewed by fact that some types of people are more likely to cooperate with this system; children's program ratings severely affected because children are less likely to remember to punch in. 2. Which method do you consider best? Why? Student answers may vary. Today most professionals prefer the people meter; in spite of its greater expense and potential misuse, it provides the most immediate and accurate data.</p><p>AD LAB 16-B “Getting "You're Out" on TV” (p. 533) 1. Using the formulas in the text as a guide, complete Chart 1. a. Family Matters , GRP: 480 b. Saturday cartoons, average rating: 10 c. Major league baseball, GRP: 226.2 d. After-school special, average rating: 7.6 2. Assuming your budget is $68,000; use Chart 1 to decide which programs would be most effective for reaching children. Explain your selection. Family Matters and Saturday cartoons — higher ratings and lower cost per spot which helps build frequency. 3. Using Chart 1, complete the "per spot" and "rating" figures in Chart 2. Next, calculate how many GRPs each city will deliver if you buy five spots of advertising. a. Per spot — Memphis: $1,157 b. Rating — Memphis: 10.1 c. GRP — Knoxville: 75; Nashville: 75; and Memphis: 50.5 4. Using the completed Chart 2, calculate for each city the number of household impressions. (Note: The version of this chart in the text is accidentally missing a list of the cities to the left of the column “TV homes.” The cities are provided here in the proper order.) a. Nashville: 751, 500 (.75 x 1,002,000) b. Knoxville: 478, 500 c. Memphis: 427, 735 5. Knowing that you are running five spots, find the CPP and CPM for all three cities. CPP CPM a. Nashville $100.00 $ 10.00 b. Knoxville 83.00 13.00 c. Memphis 114.50 13. 69</p><p>6. Based on the completed Chart 2, what city is ideal for "You're Out" baseball mitts? Nashville</p><p>39</p><p>AD LAB 16-C “The Reports that Make or Break Radio Stations” (p. 540) 1. What are the advantages and disadvantages of these radio audience measurement methods? Arbitron • Advantages: Relatively inexpensive; offers fairly accurate impression of market's listening habits if sample is representative; provides data difficult to obtain by any other method. • Disadvantages: Bias and inaccuracies in diary recording; potential for sample to be non-representative; subject to bias by current radio promotions. Birch Research and RADAR • Advantages: Interviewer can ask carefully crafted questions; economy; speed. • Disadvantages: Sample may be skewed according to who is most likely to respond to a phone survey; respondent may give inaccurate answers about rest of family's listening habits; subject to bias by current radio promotions. 2. Which audience measurement method, diary or phone interview is best? Why? Answer guidelines: A good case could be made for any of the three methods because the results of any statistical measure of listenership are very difficult to disprove. Additional information: All these research services have followers who are willing to pay for the particular style of ratings they provide. This may be due to the fact that in every reporting period they often disagree as to which radio station has the greatest market share. Thus, radio stations are able to sell advertising using the statistics from the particular service or services that rate their station the most favorably.</p><p>ETHICAL ISSUE “Advertising to Children: Child's Play?” (pp. 524, 525) 1. If you were an advertiser introducing a brand of healthy granola cereal, would you plan your campaign to or through children? How would you sell differently to the children and to the parents? Answer guidelines: Children are simply unsophisticated shoppers and are vulnerable to persuasion. If this vulnerability is preyed upon, parents will call upon society to invoke a legal response in order to protect the children —even if the perpetrator a respected corporate giant. Regardless, if an advertiser is selling to the child or through the child to reach parents, advertisers must test their advertising, and modify it as needed, in order to mitigate the possibility that a child’s immaturity will lead to claims that the ad is “misleading.” 2. The brain structure of kids to age 7 is set up for fantasy and play, according to Robert Reiher of Youth Market Systems. He says that cognitively they are not ready to plan for the future until the age of 12. They cannot think in gray, only in black and white. How would you target a food ad to a 7-year-old who has to start preparing dinner when she gets home from school? An ad appealing to children with adult responsibilities would do well with some rational appeal; perhaps by featuring the product’s utilities that are supportive to the child’s situation — little or no preparation needed, easily cooked in the microwave, etc. Although the</p><p>40 children may purchase the product in the store, they would not likely be in charge of the purse strings, making price less important as a rational appeal. </p><p>REVIEW QUESTIONS 1. What are the advantages of broadcast TV advertising for a product like milk? (p. 515-516) Television proved to be the perfect vehicle for the “Got milk?” campaign because of its ability to tell the story in a unique manner and to dramatize the dilemma faced by milk- starved customers. Using offbeat camera perspectives and lighting techniques that are possible only through television, the campaign offered immense visual appeal. In addition, the ultimate medium brought an action component to the campaign. Refer to Checklist, “The Pros and Cons of Broadcast TV Advertising” (p. 519)</p><p>2. What steps can advertisers take to overcome zipping and zapping? (p. 519) These problems can be overcome by immediately capturing viewer attention, presenting a single message in an entertaining way, and not irritating or insulting the intelligence of the viewing audience. </p><p>3. Why has advertising on network TV become less desirable in recent years? (pp. 521) The disadvantages to advertising on network television are the decline in the size of the audience because of the popularity of cable TV and VCRs (viewers now have more options from which to choose); increasing costs; lack of selectivity; long lead times for ad placement; the complex approval process through the standards and practices department; and increasing competition from syndication. </p><p>4. In what ways is cable TV’s selectivity a strength? A drawback? (See Checklist: The Pros and Cons of Cable TV Advertising, p. 523) Cable TV’s selectivity can be considered a strength because it allows advertisers to narrow in on a specific group of viewers. Cable offers specialized programming aimed at particular types of viewers. Narrowcasting allows advertisers to choose programming with the viewer demographics that best match their target customers. However, cable TV’s selectivity can also be a drawback because cable viewers do not watch any one show in enormous numbers. Therefore, in order to reach the majority of the cable audience in a particular market, advertisers must run ads on many stations, thereby adding to cost. </p><p>5. What are the various ways to buy broadcast television time? (pp. 531-534) The media buyer selects the most efficient programs in relation to the target audience using the cost per rating point (CPP) and the cost per thousand (CPM) for each program. TV stations and cable companies publish rate cards to sell their airtime. However, since TV audiences are estimated at best, television reps will always negotiate prices. The media buyer contacts the rep and explains what efficiency the advertiser needs in terms of delivery and CPM to make the buy. The buyer has numerous ways to negotiate lower rates: work out a package deal, accept run-of-schedule positing, or take advantage of presumption rates.</p><p>41 6. How can TV be best used in an integrated marketing communications program? (p. ) a. Television can be a highly selective niche medium. b. Television can speak to many different kinds of stakeholders — not just customers — at the same time. c. Television can impart brand meaning to either attract people to the brand or reinforce their current relationship with it, through its unique ability to deliver a creative big idea. </p><p>7. How can radio be best used in an IMC program? (p. 535) Radio enables advertisers to maintain strategic consistency and stretch their media dollars through imagery transfer (see exhibit 16-12 on page 537). Research shows that when advertisers run a schedule on TV and then convert the studio portion to radio commercials, fully 75 percent of consumers replay the video in their minds when they hear the radio spot. </p><p>8. What is the format of the radio station you listen to most? How would you describe the demographics of its target audience? (p. 537) Students’ answers will vary. See exhibit 16-13, on page 537, for various types of programming formats. Page 537 examples of demographics of target audiences. </p><p>9. What is the difference between average quarter-hour and cume audiences? Which is the better? (pp. 539-541) Average quarter-hour refers to the average number of people listening to a radio station, whereas cume refers to the total number of different people listening for at least 5 minutes in a quarter-hour within a reported daypart. The most accurate measure of the size of the radio station’s audience is the cume.</p><p>10. What is the significance of dayparts in radio and TV advertising? What are the best dayparts for each? (pp. 529, 539) TV and radio ratings depend on the time of day a program runs. Dayparts are significant in radio and TV advertising because advertisers must decide when to air commercials and on which programs. In television, viewing is highest during primetime (8 to 11 PM Eastern Standard Time: 7 to 10 PM Central Standard Time). In radio, the heaviest radio use occurs during drive times.</p><p>EXPLORING THE INTERNET The Internet exercises for Chapter 16 address the following areas related to the chapter: TV organizations (Exercise 1) and broadcast media tools (Exercise 2). 1. TV Organizations The size of the television industry and the advertising dollars that are spent within it are extraordinary. Many TV-related organizations were formed to help service the industry. Discover a little more about the nature and scope of the television industry as you peruse the following websites. Be sure to answer the questions below.  Broadcast Education Association (BEA) (www.beaweb.org)</p><p>42  Cable Television Administration & Marketing Society (CTAM) (www.ctam.com)  Cable World (www.cableworld.com)  National Association of Broadcasters (NAB) (www.nab.org) a. Who is the intended audience(s) of the site? b. What is the site’s purpose? Does it succeed? Why? c. What is the organization’s purpose? d. What benefit does the organization provide individual members/subscribers? The overall advertising and television and cable communities?</p><p>Sample Answer: National Association of Broadcasters a. The primary audience for the NAB’s website is the organization’s individual members. A secondary audience exists among consumers, advertisers, and regulators. b. The purpose of the site is 1) to provide online resources and information to its members, and 2) to provide industry information, forums, and current issues for consumers, regulators, broadcasters, and advertisers. c. The NAB’s primary purpose is to be an effective lobbying group in Washington D.C. on behalf of broadcasters, and it is actively involved in direct lobbying and grassroots activities with lawmakers on Capitol Hill. The organization is also committed to furthering the activities of the broadcast community, holding seminars and conventions, as well as providing a wealth of industry-related information and publications to its members. d. The benefits that the organization provides its members are vast, and may be summarized as follows:  regulatory resources  technical resources  research & planning services  information resources  public service  career center  convention/conference discounts  publication discounts  award programs  financial and insurance programs  issues discussion  federal lobbying  legal & regulatory counsel 2. Broadcast Media Tools Broadcast advertising reports and audience studies are critical to the development and implementation of effective media strategy. As with print media, advertisers have a set of “staple” companies and reports they regularly use to help plan and implement their broadcast media buys. Visit the following syndicated and independent broadcast media companies’ websites and answer the questions that follow:</p><p>43  Arbitron (www.arbitron.com)  Bureau of Broadcast Measurement (BBM) (www.bbm.ca)  Cabletelevision Advertising Bureau (CAB) (www.cabletvadbureau.com)  Nielsen Media Research (www.nielsenmedia.com)  Radio Advertising Bureau (www.rab.com)  Radio Marketing Bureau (RMB) (www.rmb.ca)  Television Bureau of Advertising (www.tvb.org)  Television Bureau of Canada (TVB) (www.tvb.ca)  TV RunDown (www.tvrundown.com) a. What type(s) of broadcast media information does the company specialize in and what specific services, products, or publications does the company offer? b. What industries/companies would be best suited to utilize the company’s media resources? c. Does the company represent syndicated or independent research? d. How useful do you feel the company is for gathering broadcast media information? Why? Sample Answer: Arbitron a. Arbitron is an international media research firm that provides information services used to develop local marketing strategies. The company primarily focuses on local radio, providing extensive information through the following services:  Radio Surveys — measuring radio audiences in 268 local markets and providing software tools for analyzing its quantitative measures and integrating that information with local market consumer data. This includes “America’s Top Stations: A Format Profile,” which takes an in-depth look at the most successful stations by format in the top 100 markets.  Local Consumer Market Surveys — gathering information that describes consumers’ demographic, socioeconomic, and lifestyle characteristics, as well as purchase intentions in 247 markets.  Arbitron NewMedia® — consumer intelligence for cable systems, advertisers, telephone companies, advertising agencies and content developers. b. The company’s media resources are best suited for local electronic media (primarily radio stations), local advertisers, and their advertising agencies because these are the companies that require the local information that the Arbitron research provides. c. The company is rather large, and offers subscribers both syndicated and independent research reports. d. Tapping into the vast number of local markets (especially for a national advertiser) can be a major headache. Much like Scarborough for the newspaper industry and Nielsen for TV, Arbitron data is a staple of radio stations, advertisers and agencies. Radio stations require Arbitron reports to establish pricing and monitor performance. Advertisers and their agencies require Arbitron data to evaluate various media vehicles in different markets to help them in their planning and buying activities. </p><p>44 IMPORTANT TERMS affidavit of performance, 533 infomercial, 526 audience composition, 531 interconnect, 525 avails, 532 inventory, 525 average quarter-hour audience (AQH persons), local time, 539 539 makegoods, 533 average quarter-hour rating, 540 networks, 523 average quarter-hour share, 540 off network syndication, 525 barter syndication, 526 participation basis, 524 broadcast TV, 516 preemption rat, 532 cable TV, 516 prime time, 529 cost per rating point (CPP), 532 program-length advertisement (PLA), 526 cost per thousand (CPM), 532 program rating, 531 cume persons, 541 programming format, 536 cume rating, 541 rating services,527 daypart mix, 529 run-of-station (ROS), 539 designated market areas (DMAs), 529 share, 531 drive times, 539 sponsorship, 523 first-run syndication, 525 spot announcements, 524 gross rating points (GRPs), 531, 540 spot radio, 539 households using TV (HUT), 531 total audience, 531 imagery transfer, 535 total audience plan (TAP), 539 TV households (TVHH), 529 UHF, 517 VHF, 517</p><p>ANCILLARY ACTIVITIES & EXERCISES Note: At this point in the text students have been presented all the background they need to conceive of a full media buy. This exercise asks them to use this information and the resources in the Reference Library, located on the Contemporary Advertising website, to organize a media buy. After walking through this exercise, students will have a strong understanding of how to buy media for a mixed-media plan. The exercise: Assume that you were recently hired as the advertising manager of a local, family-owned ice cream business with five parlors located throughout the city. The nationally known ice cream franchise operations, which have recently come to town, are providing your company with stiff competition. Nevertheless, you and your boss feel that the company can get its share of the incredible $2.5 billion U.S. ice cream market with ingenuity and hard work. As a first step in your new job, you decide to perform some basic research, which reveals that more than one third of all ice cream sales occur during June, July, and August. Interestingly, despite the multitude of exotic flavors, vanilla still accounts for 42 percent of all sales; chocolate,</p><p>45 14 percent, nut combinations, 10 percent and all others, 34 percent. Specialty varieties such as low-calorie ice cream, frozen custards, and yogurts are beginning to challenge the traditional product. Importantly, ice cream appeals to all demographic groups and is definitely not just for children. Twenty-seven percent of all ice cream sales occur in company-owned or franchised ice cream parlors. Now, you plan the media buy for the next six-month period. Your budget will allow for $50,000 ($10,000 from each store). Your planned strategy is to: build traffic for all the stores using radio and coupons in newspapers and magazines in local areas; improve the chain’s overall image using TV and regional editions of magazines; and create an ad (small display or classified ad) in a national financial magazine to attract potential investors, licensees or franchisers. To clarify your thinking, use the references below to answer the questions that follow. a. Exhibit 8-16, Media Plan flowchart (p. 296) b. Ad Lab 9-B “Media Selection: Quicklist of Advantages” (p. 297) c. RL 9-2 “Comparative evaluation of advertising media” d. RL 9-1 “Guidelines for determining reach, frequency, continuity, and pulsing combinations e. Checklist “Pros and Cons of Newspaper Advertising” (p. 503) f. Rate and Data sheet for The Dallas Morning News (www.dallasnews.com) (p. 463) g. Checklist “Pros and Cons of Broadcast TV Advertising” (p. 521) h. Exhibit 16-2 “Major cable TV network” (p. 510) i. Checklist “Pros and Cons of Radio Advertising (p. 540) j. RL 16-1 “Spot rate and data for KWOD (FM) radio” k. RL 16-2 “Arbitron Radio Market Report for KKDA-FM” 1. Creative considerations: a. What creative attributes does each of the media (newspaper, magazine, radio, and television) have that are necessary for the success of the ice cream parlors? What are the drawbacks of each medium that might impair your program? b. What innovative options might be available from each of these four media that could add impact to the message, increase traffic, and improve customer recall? 2. Buying considerations: Note: Use the Standard Rate and Data listings for The Dallas Morning News, KWOD (FM) and the Arbitron Radio Market Report listing as though they are representative of the media in your area. Also, create a fictitious magazine name to fulfill the requirement for advertising in a nationally distributed financial magazine. a. Reviewing the four media for which you have data. What “ball-park” percentage of your overall budget do you estimate will be used for each medium in your program? b. Because the product appeals to all ages, what age groups should be targeted by your limited radio program? When are the best times to reach the target age group with radio? c. As the per-spot pricing for television is quite high, what percentage of your overall budget should be dedicated to TV (in order to build the company image) rather than to</p><p>46 media that build the traffic at each parlor? How much and what pattern of repetition should you plan. d. Print media are excellent for running specials. Would you change the print promotion coupon discount rate several times over the six-month period or maintain the same offer consistently? How would you space the timing of your print advertising?</p><p>DEBATABLE ISSUE Should the Broadcast Media Be Required to Air Counteradvertising? During the final months in which cigarette advertising was permitted on TV and radio, the Federal Trade Commission ordered broadcasters of these commercials to also present countercommercials. This counteradvertising advised viewers and listeners that cigarette smoking could be dangerous to health. Since then, some observers have urged that the broadcast media be required to present counteradvertising for certain other commercials, such as those for "diet" soft drinks, sugarcoated cereals, and pain relievers. They claim that, like cigarettes, that the use of these products can adversely affect health. However, others feel that this would be detrimental to advertising and the free market system. PRO The broadcast media should be required to air counteradvertising because... The federally licensed broadcast media should operate in the public interest and safeguard their audiences from any potential hazards of the products they advertise. Counteradvertising enhances the credibility of commercials and their audience effectiveness. People are feeling increasingly uncertain about the potential hazards of certain products. Commercials that openly air the pros and cons of these products would help to dispel uncertainties and to restore consumer confidence. With so many products in the marketplace today, the public can hardly be expected to know about all their potential hazards. The media should make people aware when a product can be truly harmful or dangerous. CON The broadcast media should not be required to air counteradvertising because... Requiring the independent broadcast media to serve as public watchdogs would seriously impair their ability to attract the advertising revenues essential for their existence. Negative advertising or ads featuring the negative features of a competitor, undermines the effectiveness of the commercials and reduces audience response. Just about any product, if used to excess or misused, can be physically or mentally harmful. Even vitamins can have adverse effects if you take too many of them. Counteradvertising merely raises unnecessary fears and adds to consumers' anxieties. Most potential product hazards are apparent to anyone with common sense. Should automakers have to tell people that driving recklessly could cause accidents? Counteradvertising puts needless and disturbing emphasis on the negative aspects. Questions 1. Would counteradvertising deter you from buying a product? Explain. 2. What other arguments can you offer, pro and con? 3. In your opinion, which side has the strongest arguments? IMAGES FROM THE TEXT </p><p>47 Images are available as color acetates through your local McGraw-Hill/Irwin sales representative.</p><p>A16-1 Exhibit 16-1 Top 10 network TV advertisers in the US (2001) (p. 516) A16-2 Toyota Celica ad (p. 521) A16-3 Exhibit 16-6 TV advertising spending from May 13, 2002 (p. 523) A16-4 Exhibit 16-7 Advertising costs on prime-time TV shows (2002) (p. 524) A16-5 Exhibit 16-8 TV network and syndication distribution (p. 525) A16-6 Exhibit 16-11 Daily and weekly reach of radio (p. 535) A16-7 Exhibit 16-12 Radio programming formats (p. 537) A16-8 Exhibit 16-13 Radio minietworks programming formats (p. 537)</p><p>REFERENCE LIBRARY Located on the McGraw-Hill Contemporary Advertising website: www.mhhe.com/arens04</p><p>RL 16-1 SRDS Spot Rate & Data listing for KWOD Radio Station RL 16-2 Arbitron Radio Market Report for KKDA-FM, Sacramento, California RL 16-3 Spot commercial instructions </p><p>48</p>