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Broadcast advertising 1
- 2. Advertising Defined • Non-personal Communication • Usually paid for • By an identified sponsor • Persuasive in nature • About products, ideas or services • Through various media
- 3. Advertising in the Marketing Mix • Product – Quality, package, appearance, etc. • Price – Deep discount to premium • Place – Distribution channels • Promotion – POP, personal selling, PR, Advertising
- 4. Advertising Classified • By audience – Consumer – Business to Business • Industrial • Trade • Professional • Farm
- 5. Advertising Classified • Geographically – National – Regional – Local – International
- 6. Advertising Classified • By medium – Electronic • Radio • Television • Cable • Internet
- 7. Advertising Classified • Print – Newspaper – Magazine • Outdoor – Billboard – Transit
- 8. Advertising Classified • Specialty – Novelties – POP – Product placement – Etc. – Etc. – Etc.
- 9. Advertising Classified • By function – Product -vs- non-product – Commercial -vs- non-commercial – Direct action -vs- non-direct action
- 10. The advertising industry • Agencies • The media • The advertisers • The support services and suppliers • The regulators • The consumers
- 11. 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
- 12. Advertising History • Dates to 1600s – British newspapers paid notices
- 13. Advertising History • Ben Franklin is credited with introducing white space and illustrations
- 14. 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
- 15. Broadcast Advertising History • Out of the debate on how to pay for broadcasting came… • “Toll” broadcasting – WEAF – AT&T station • “telephone philosophy of paying toll for long distance calls. • First commercial broadcast • http://www.old-time.com/commercials/1stcommercia http://www.old-time.com/commercials/1stcommerci
- 16. Broadcast Advertising History • Post WWI – Radio grew – Lifestyles improved – Spending increased – Radio networks emerged – Advertising stressed the “Unique Selling Proposition”
- 17. 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”
- 18. 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
- 19. 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
- 20. 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”
- 21. Media strategy • Buying patterns – Weekly cycles – Monthly cycles – Annual cycles – Seasonal products • Products/service with fixed maximum capacities
- 22. Media strategy
- 23. Media strategy
- 24. Media strategy
- 25. Media strategy
- 26. 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
- 27. Media strategy • Best frequency – Outdoor, newspapers, magazines • Best Reach – Network advertising, magazines • Best combination – Radio
- 28. 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.
- 29. CPM 2 spots @ $8.00 each 1 reaches 4500 QHP 1 reaches 3500 QHP
- 30. CPM • 4500 + 3500 = 8000 gross impressions • 2 spots @ $8 = $16 – cost of the schedule • $16 ÷ 8000 = • .002 • .002¢ per person • X 1000 = 2.00 • $2 per 1000 QHP
- 31. CPM Number of spots Cost per spot Total cost QHP Total QHP 1 80 3400 8 10 2913 4 10 5825 Totals
- 32. CPM Number of spots Cost per spot Total cost QHP Total QHP 1 80 80 3400 3400 8 10 80 2913 23300 4 10 40 5825 23300 Totals $200 50000 200 ÷ 50000 = .004
- 33. CPM Number of spots Cost per spot Total cost QHP Total QHP 4 11 26500 8 15 3000 10 19 4700 Totals
- 34. CPM Number of spots Cost per spot Total cost QHP Total QHP 4 11 44 26500 106000 8 15 120 3000 24000 10 19 190 4700 47000 Totals $354 177000 354 ÷ 177000 = .002
- 35. Waste circulation • Reaching people who are not the desired audience • Demographics = age, gender, income • Psychographics = “lifestyle”
- 36. 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
- 37. Audience research 100% All possible viewers or listeners
- 38. Audience research 100% TVHH
- 39. Audience research Not HUT 50% viewing HUT level = 50
- 40. Audience research Not viewing Tuned to our spot
- 41. Audience research 25% of TVHH – 50% of HUT
- 42. Audience research Rating = 25 Share = 50
- 43. Audience research terms • Gross ratings points • Average quarter hour people (QHP)
- 44. Audience research • Began in the 1920s with radio listenership • Archibald Crossley personal interviews • C. E. Hooper – Hooperatings – personal • A. C. Nielsen – Diaries – Audimeter
- 45. Audimeter
- 46. A.C. Nielsen • Now only television ratings • Use diaries, audimeters and “people meters” • Meters used for “overnights”
- 47. 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)
- 48. Market areas TSA DMA TSA DMA TSA
- 49. Arbitron • Radio research • Dairies • Developing the “personal people meter” (PPM)
- 50. Arbitron terminology • Total survey area (TSA) • Area of Dominant Influence (ADI) – Every county assigned to an ADI • Metro survey area (MSA)
- 51. 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?