Chapter 11 Evaluation of Media: Television and Radio Notes

Evaluation of Media: Television and Radio

Learning Objectives

  • LO11-1: Describe the role of television as an advertising medium and its advantages and limitations.

  • LO11-2: Discuss how television advertising time is purchased for network, local television, and cable television.

  • LO11-3: Discuss how television audiences are measured and developments in audience measurement.

  • LO11-4: Discuss the role of radio as an advertising medium and its advantages and limitations.

  • LO11-5: Discuss how radio advertising time is purchased.

  • LO11-6: Discuss how radio audiences are measured and developments in audience measurement.

Television Advertising

Advantages of Television

  • Impact: Combines sight and sound for creative storytelling.

  • Reach: Ability to reach large audiences effectively, enhancing brand visibility.

  • Captivity: Audiences generally display high attention during broadcasts.

  • Selectivity and Flexibility: Can tailor ads based on programming content, schedule, and audience demographics.

Limitations of Television

  • Costs: High expense associated with air time, particularly during prime time.

  • Limited Selectivity: Hard to target specific audiences effectively.

  • Fleeting Message: Advertisements are temporary; message may not resonate long-term.

  • Clutter: High number of advertisements can distract or frustrate viewers.

  • Viewer Attention: Limited attention spans can further impact marketing effectiveness.

  • Zipping and Zapping: Fast-forwarding through recorded ads or changing channels to avoid commercials.

  • Skepticism: Viewers may become distrustful of advertisements over time.

Key Players in Television Advertising




  • Top Advertisers (2021):


    Rank

    Company

    Network TV Spending (millions)

    Cable TV Spending (millions)



    1

    Procter & Gamble Co.

    $844

    $877



    2

    Amazon

    $496

    $495



    3

    Berkshire Hathaway

    $490

    $642



    4

    Deutsche Telecom (T-Mobile)

    $428

    $332



    5

    AbbVie

    $402

    $370



    6

    Progressive Corp.

    $400

    $336



    7

    Verizon Communications

    $390

    N/A



    8

    General Motors Co.

    $379

    N/A



    9

    Apple

    $368

    N/A



    10

    Walt Disney Co.

    $347

    $490











    Purchasing Television Time

    Network vs. Spot Advertising

    • Network Advertising: Purchase ads via a television network, which then airs ads across its affiliated local stations.

    • Spot Advertising: Allows advertisers to purchase ad time from individual local stations, offering customization and flexibility.

    • Syndication: Selling reruns or new programs directly to individual stations, allowing advertisers to reach specific audience segments.

    Methods of Buying Television Time

    • Sponsorship: Advertisers help create content, allowing for integration of brand messages into programming.

    • Participation: Multiple brands share ad slots on a program, giving flexibility without long-term commitment.

    • Spot Announcements: Ads that run adjacent to programs, primarily on local networks.

    Dayparts

    • Prime Time: 8:00 PM to 11:00 PM (highest cost and viewership).

    • Dayparts: Categories of time during the broadcast day influencing costs and audience (e.g., Morning Drive, Midday).

    Radio Advertising

    Characteristics of Radio

    • Perceived as a traditional medium with a broad reach, primarily local advertising capabilities, and targeted messages.

    Advantages of Radio

    • Cost-Effectiveness: Lower advertising costs compared to television.

    • Selectivity: Ability to reach niche markets and specific demographics.

    • Flexibility: Quick turnaround on advertisements, allowing for timely promotions.

    • Mental Imagery: Auditory nature encourages creative engagement.

    • Integrated Marketing: Opportunities for cross-promotion with other media channels.

    Limitations of Radio

    • Creative Restrictions: Limited formats for advertisement content compared to video.

    • Fragmentation: Various stations lead to audience divisions and competitive challenges.

    • Listener Attention: Typically lower retention during ads compared to television.

    • Competition: Increasing competition from digital media offerings.

    Buying Radio Time

    • Network Radio: Purchased nationally through major radio networks.

    • Spot Radio: Greater flexibility and local targeting, allowing adjustments for regional markets.

    • Dayparts: Variability in audience size and rates depending on the time of day.

    Audience Measurement

    • Nielsen Audio: Track listeners through traditional surveys and new technologies (e.g., Portable People Meter).

    • Key Metrics:

      • Person Estimates: Number of people listening within a specific demographic.

      • Ratings: Percentage of the target population listening to a station.

      • Cume: Total number of unique listeners over a period of time within dayparts.

    Measuring Audiences

    Television Audience Measurement

    • Nielsen Ratings: Provide estimates for national television demographics from sample households.

    • Local Audiences: Measured by Nielsen Station Index, detailing demographics and viewing habits in designated market areas (DMAs).

    • Metrics:

      • Program Ratings: Percentage of households tuned into a program.

      • Share of Audience: Portion of homes that were watching TV at that time tuned to a given program.

      • Total Use of Television (TUT): Comprehensive measurement including all viewing platforms.

    Developments in Audience Measurement

    • Shift towards measuring all forms of television consumption, including live viewership, DVR playback, and connected devices.

    • Commercial Ratings: Track viewership of commercials beyond traditional metrics, enhancing advertising effectiveness analysis.

    • Technological Integration: Employ new measurement systems like Total Ad Ratings for a broader understanding of audience engagement.