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Broadcast Media: Television and Radio

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Leena Heravi

on 9 October 2012

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Transcript of Broadcast Media: Television and Radio

Television and Radio Broadcast Media Conventional National Networks and Stations The Canadian Television Market Television Viewing Highlights when buying television time, advertisers choose between:
1. Network Advertising
2. Selective Spot Advertising
3. Sponsorship Opportunities
4. Product Placement and Branded Content
5. Local Advertising Television Advertising Alternatives Digital Radios

Internet Radio

Satellite Radio

iPods and other Portable Devices Trends Influencing The Radio Industry Trends Affecting Television and Television Advertising Commercial Avoidance and Personal Video Recorders Mobile Media One fifth of Americans watch prime time t.v. online Media Convergence Audience Fragmentation Alternative Viewing Behaviour Internet
E-book readers TELEVISION HAS POWER! Traditional Networks:
TVA (French) 56 Specialty Channels
67 Digital Channels Number of channels increase
more variety for audience
harder for advertisers to get message across Television Advertising is becoming more expensive
:O Audience for specialty channels is smaller and more clearly defined
leading to reduced fees PVRs (Personal Video Recorders) are 'Video-on-Demand', allowing viewers to skip commercials Americans that adopted PVRs watch 60% of t.v. on computers and skip 90% of commercials 25% of American homes have PVRs Alternative measures of advertising:
Sponsorship opportunities
Branded content
Product Placement Only 13% of Canadian homes have PVRs, commercial skipping is less prevalent 82% of Canadian homes are online 18-24 year olds make up largest segment of online users
PDAs Some broadcasters offer their programs online, but networks do not like this because:
fewer commercials online
smaller audience = cheaper advertising That all negatively affects the network's cashflow! Largest mobile media users are 18-34, constantly multi-tasking Broadcasters and advertisers are attempting to work towards this market by offering news on mobile devices Refers to a large collection of various types of media avenues, i.e. newspaper, television, radio, etc., owned by the same company CTVglobemedia Television channels + respective websites
CTV Network
Business News Network
Comedy Network
Discovery Channel Print
The Globe and Mail
Report on Business Radio
The CHUM group of radio stations Advertisers can save money this way, by buying advertising space over various mediums in bulk Opportunity for advertisers to access further reach by spreading their message over a variety of mediums owned by parents company (cc) photo by medhead on Flickr Smartphones and other digital media devices are a difficulty for television WOMP WOMP Share Ryan i.e. video, business, and sports Bell Mobility updates these newscasts hourly, attaching brief advertisements Advantages Disadvantages Television as an Advertising Medium The radio industry is developing as much as television. There are many new ways of reaching people, some of these options include: Digital Radio Internet Radio Satellite Radio iPods and other Portable Devices Influences on Radio Advertising Rates Discounts Offered by Radio (cc) photo by theaucitron on Flickr (cc) photo by theaucitron on Flickr Radio Advertising Rates and Buying Procedures It's a new form of broadcasting by conventional radio stations! picks strongest transmitter automatically
HD sound, perfect reception within coverage area
not just audio, but also text, pictures, data, and video Toronto + Montreal + Vancouver + Ottawa Can only use if you have a digital radio broadcasting receiver offers commercial free programming! two suppliers: XM Canada and Sirius Canada
*requires special receiver and listener
*must pay monthly subscription fee expanding through cable, direct to home, and mobile wireless carriers offers a variety of music and many more categories youngsters are moving away from radio because of iPods or MP3 players, and computers, where they can control the music
e.g. iTunes High Reach Demonstration Capability Frequency Potential Impact and Effectiveness Some Demographic Selectivity Coverage Flexibility High Cost Clutter Creative Limitations Lack of Target Market Selectivity Audience Fragmentation can show the product being used
provides proof and convincing demonstrations
more reasong for viewer to trust and buy! e.g. informercials, Before&After demonstrative commercials, and comparative commercials nation coverage reached through network television, like CBC or CTV small budgets purchase time from individual stations advertisers can be selective about markets to advertise in, bigger markets are reachable through additional stations target demographic groups based on nature of program or show
e.g. Hockey Night in Canda and Blue Jays Baseball are sold to advertisers with strength to reach males of all ages TSN reaches 5.1 million people weekly, mainly males
HGTV reaches 2.6 million people, mainly females
MuchMusic reaches 1.1 million people, mostly teens and young adults high budget advertisers use television to build frequency by
a) purchase more than one spot within a program or during the day
b) purchase same time slot in program over period of time Purpose: to reach loyal viewers or specific target market just enough exposure needed to prompt action viewers are exposed to same commercial over extended period of time, but too much can also have negative affect television reaches huge audience, especially during prime time
reaches both male and female, broad range of demographics, and all ages Multi-sense medium:
a combo of sight and sound
maximum impact on viewers BUT! excitement and emotion is needed, because viewers can be easily distracted (surf channels or leave the room) *BBM Canada survey results show television is 'most influential, most effective and persuasive advertising medium' among 18-49 year olds, 65% of people said television very expensive!
prime time 30-sec commercial on CBC can cost $52 000
CTV can cost $110 000 10 or 15 sec commercials delivering quick message production costs are high too, $150 000 - $250 000 average cluttering of too many commercials during program break or too many breaks during program *network promos for upcoming shows add to clutter so placement is very important, advertisers prefer the first (right after show) and last position (right before show) too much clutter has negative impact of audience, people usually change channels or leave room during break television may be wasteful for advertisers targeting audience specifically based on demographic, psychographic, and geographic message reaches many outside of target market viewers watching television don't always watch commercials, they can
leave room
pay less attention
flip through channels
this reduces audience size PVRs allow you to record show and eliminate comemrcials for later view some products or services are better off with print media for longer communication short length of commercials can be bad, limits ideas
advertisers want to break through clutter by going from 30 to 15 sec, but that won't always have same communication results television must focus on one major benefit of product to be effective, and then direct viewers to websites with more information best for reaching large audience quickly Seasonal Rate Structures Reach Plans Dayparts Type of Advertiser Time Period Rate higher mid-range May-August (summer) and December September-November March-April mid-range lower January-February Rates charged by radio stations are often influenced by seasonal fluctuations in listening Classification Time 6 a.m. to 10 a.m. 10 a.m. to 4 p.m. Breakfast Midday Drive 4 p.m. to 7 p.m. 7 p.m. to midnight Evening Nighttime midnight to 6 a.m. audience size varies according to time of day = different rates dayparts can vary by station, with different classifications weekend classifications often differ from weekdays (audience changes on weekends) dayparts go as follows V.S. advertisers can schedule a rotation plan or a reach plan ROTATION PLAN
advertiser specifies time slots and pays corresponding rates associated
could be based on time of day or day of the week REACH PLAN
commercials rotate through dayparts according to predetermined frequency (to reach different people with same message) national advertisers are charged general (national) rate, higher than local advertising rates (like retailers or restaurants) local advertisers contribute 75% of radio station revenue! frequent purchase = DISCOUNTS! :D Frequency discount
earned with purchase of minimum number of spots over specific time period
5% for 15-20 spots
8% for 21-30 spots
10% for over 31 spots per week Volume Discount
charged low rate for buying large number of spots
5% for 260 spots
10% for 520 spots Continuity Discount
based on purchase of minimum number of designated spots over extended period (usually 52 weeks)
offer increases with length of contract Buying Radio Time Factors such as
volume and frequency
timing of the schedule (in terms of day or season)
all have an impact on the rates charged to advertisers Many stations base their prices on supply and demand rather than rate$ all details of the plan must be provided by advertiser or agency to radio station to get best rates possible negotiating is important! rates paid by advertisers are affected by several factors: season or time of year, daypart or time of day, reach plans, availability of discounts. type of advertiser (national or local) also has impact on rates charged Regional Networks Specialty Networks available to all viewers popular specialty networks include: DIGITAL SPECIALTY channels falls under this group because these channels are available for all viewers at an additional fee (cc) photo by tudor on Flickr CBC operates Ontario, Maritimes, Pacific and Western networks ... BBM Neilson Media Research collects media-viewing data by using people-meter technologies and panels at the national level, and in key markets such as Toronto, Vancouver, Calgary and the Ontario region, Montreal and Quebec Network Advertising refers to advertising whose products and services are widely distributed and who have relatively large media budgets network sells the commercial time to advertisers and advertisers supply one commercial which is then broadcasted through entire network a lot of people are watching prime time shows, meaning a lot of people will see advertisements. e.g. a popular prime time show such as Grey's Anatomy can reach about 3 million people each week, meaning a substantial amount of people will witness the advertisement Selective Spot Advertising During a network show, some commercial time is not allocated and is left to the regional or local stations to sell. Advertisers can purchase this time on a station by station basis. 2 advantages
1) provides a network advertiser the opportunity for incremental coverage in key markets where more frequency is desired
2) advertisers with smaller budgets or advertisers following a key market media strategy can choose only markets that are of relevance e.g. nework shows such as Marketplace, the Fifth Estate, and Hockey Night in Canada, a certain portion of the commercial time available is allocated to local stations Sponsorship Opportunities Allows advertisers to take "ownership" of television properties that are targeted at their consumer audience or target market A great example of this is Canada's Hockey Night on Saturday nights. Both major beer companies in Canada, Molsen an Labatt, have taken turns holding he sponsorship position. A great way to advertise to their target market Product Placement and Branded Conent Local Advertising television station selling the time to local market advertisers (such as restaurants and retailers) and is non-commisionable local advertisers do not usually work with advertising agencies, so the television station provides assistance when developing the commercial Product Placement are products/brands that are visible and plased purposely in television shows, films and video games Branded content (product integration) is a step further than product placement, it actually integrates the brand into the script of the show Television Advertising Rates and Buying Procedures Media Optimizers: A Planning Tool Influences on Television Advertising Rates Discounts Offered by Television Buying Television Time Radio Listening Highlights Radio Station Formats Radio as an Advertising Medium Supply and Demand Nature of the Advertising purchase Types of Programs Daypart (Time of Day) Length of Commercial National and Regional Network Rates Local-Market Television Rates Gross Ratings Points Frequency, Volume, or Continuity Discounts Seasonal Discounts Package Plans ROS - Run Of Schedule Pre-emption Rates offers sound quality better than CD quality, and has more variety of streaming content Networks base their advertising costs on supply and the demand exerted on that supply by competing advertisers. A pricing package will be assembled by the network to cater to the advertiser, based on the advertiser's following needs: Reach levels
Seasonal implications
Ratio of prime time to fringe time
Budget Negotiation of the previous takes place far in advance of the airing of any advertising. Generally deals will be done in late spring, and the media schedule will begin the following year. D-DAY - Declaration Day: the day, after a new season is anoounced, that advertisers place their orders for advertising time in the upcoming broadcast year Overbooking does happen. In this event, advertisers win preference for their messages based on the following:

Incumbency Position - Advertisers who have a long history of spending large advertising dollars on the network
Lenght of contract
Volume of contract
Start Date Upfront Buying - The process of purchasing advertising time ahead of a season's schedule. This involves gambling on what programs are likely to pull a large viewing audience Generally, network and "selective-spot" advertising is sold to advertisers based on an entire year's programs schedule. However, there are exceptions: Drama specials
Other special broadcasts
Academy Awards,
Hockey Night in Canada, Battle of the Blades When it comes to sports, particularly hockey and baseball, the largest group of viewers fall into the 18-49 age group, and are male. Networks want sponsors who are willing to make long term commitments, and will, therefor, offer special rates and discounts. PRIME TIME
7 p.m. - 11 p.m.
Majority of network programs air during these peak hours
Largest audiences are 8 p.m. - 10 p.m.
Higher rates for more popular shows FRINGE TIME
Precedes and proceeds Prime Time
Early Fringe: 4 p.m. - 7 p.m.
Late Fringe: 11 p.m. - 1 a.m., or sign off
Lower viewership for adults in early fringe, higher for kids returning from school. Rates are lower than prime time
Overall viewing in late fringe is lower, and rates are adjusted accordingly Daytime
Early morning (sign-on) to 4 p.m.
Very little reach potential, aside from young children
Lowest rates of the day
Viewership increases throughout the day, and rates increase accordingly Generally, rate schedules are based on the purchasing of 30-second units (60, 90, and 120 second spots adjusted accordingly) 15-second commercials are gaining popularity, but cause scheduling issues, so they are not priced at 50% of a 30-second spot, but more often 65% to 70% Split 30s - two 15-second commercials (often back-to-back) that are aired during a single commercial break, and are by the same advertiser
sometimes these are charged at 30-second rate, but, depending on network, can be as much as 120% of the 30-second rate Supply and Demand system based on standard grid card with varying price levels
High demand prime time 30-second spots on CTV can be as expensive as $110 000 Rates adjusted periodically to reflect:
inventory of time available
projected audiences
seasonality Agency and network negotiate rates - client oriented factors come into play
competition for time
available budget
ratio of prime time to fringe time required
program mix desired CBC and CTV offer regional packages
Maritimes (New Brunswick, P.E.I, Nova Scotia, and Newfoundland)
Western (Manitoba, Saskatchewan, and Alberta)
Pacific (British Columbia) Air time is sold on a station-by-station basis. This is not network time, but for local stations that fall under the unbrella of various networks. Rates depends on:
projected audience size
time of year Local-market stations offer a discount to any advertiser willing to book full-year advertising commitment. Some stations will also offer a Reach Plan. Reach Plan - system involving placement of advertisement in various dayparts in order to communicate message to different groups that tune in throughout the day. Gross Ratings Points = GRPs Media buyers look for certain level of GRPs when buying commercial time. This is based on the reach and frequency objectives of advertiser Measures advertising weight levels in a market in terms of reach and frequency variables Formula: GRP = Reach x Frequency Various factors affecting television discounts:
Advertising commitment
Advertising time purchased
Seasonal factors
Other factors important to network or station Frequency Discount
based on number of spots purchased over a specific time period
the more spots purchased the higher the discount Volume Discount
relates to the dollar volume bought by the advertiser over the course of entire year
again, more purchase = larger discount Continuity Discount
when advertisers purchase a minimum number of spots over a long time span
more spots purchased = higher discount Seasonal discounts are available during non-peak seasons

Summer is generally a low-season for television viewership

Mid-September to mid-February, which is the year’s new television season, is the peak

Spring is also low-season

Low seasons are when re-runs are shown A network strategy to sell off the less desirable time slots

Often sold in combination with Prime Time spots

Advertisers that are willing to spend money for the most coveted time slots will also have to purchase air time in non-peak dayparts. Discount where advertiser gives station discretion as to what time of day to run the ad Refers to specialty program running long and replaces regularly scheduled programming
sports event going into overtime
political debate not finishing on time Advertisers pay a premium to sponsor these events. Ones that had purchased ait time for the regularly scheduled program are "reimbursed" with equivalent commercial time in the future Buy advertising time more efficiently!
Utilize new software technology! Optimizer - software program that searches a media database to indentify media combinations that increase target reach or reduce cost of buying it Proctor&Gamble is advancing use of optimizers
P&G look to reduce amount of time bought at peak dayparts, while still maintaining reach Optimizers allow agency media planners to “investigate complex viewer targets... examine co-viewing and circumstance of viewing... study the viewer and duplication patterns of programs, dayparts and networks and determine how many targeted rating points in a venue is enough for a brand” (Kevin Newcomb, “MVW debuts blog marketing practice,” ClickZ, www.clickz.com) PEOPLE METER
portable pager-sized device
detects inaudible codes
attached to base unit and codes are downloaded to BBM Neilson Tabulations determine popularity of t.v. shows 9000 people carry pager

BBM publishes top 30 programs weekly done to assess value of advertising expidenture data collected determine program rating Rating: audience estimates expressed as percentage of population people age 2+ watch 23 hours of t.v. weekly
age 60+ watch more than 30 hours weekly Daypart: block of time, usually half an hour to an hour prime time attracts most viewers people watch less t.v. in summer The Canadian Radio Market | | | | | | | | | | | | | 1999 2010 2006 As of 2010, there were 649 commercial radio station in Canada (465 FM and 184 AM) FM stations reach far more Canadians age 12 and older than AM do AM reaches more men than women, because it's mostly all news and sports average adult listener spends about 19 hours a week listening to the radio Radio Broadcasting in Canada CBC independently owned and operated stations that survive on advertising revenue all AM and FM stations are self-regulating, and have NO restrictions on the number of commercial minutes (30-second spot is most commonly aired spot length) Radio airwaves are controlled by large media companies Rogers Media, Corus Entertainment, Astral takes away advertising revenue from traditional radio most stations made radio website for their station, to build stronger relationship with listeners * study by RMB shows 38% of Canadians age 18+ have visited a radio website AM FM AM VS FM refers to height at which radio waves are transmitted transmits waves by varying frequency and is above static and nose level of AM (frequency modulation) (amplitude modulation) Tuning Hours more popular and highest in mornings radio is mobile average listener 16-21 h/w how much
where teens 7 h/w iPods, internet, video games radio use during day is still high (at work or during travel) 48% home
28% automobiles
22% work Advantages and Disadvantages of Radio Advantages Disadvantages Radio offers advertisers several advantages and disadvantages. selecting radio as an advertising medium depends on the problem the advertiser is trying to resolve. Audience Fragmentation radio audience fragmented due to station format and demographic group that competing stations appeal to
Advertisers may purchase time at several stations to achieve adequate reach levels
Effect of fragmentation is that radio is low-reach/high frequency medium Message Retention Listeners may have trouble retaining radio message because:
messages are short (- longer messages cost more)
radio is background medium
clutter is a problem (- especially on AM stations)
radio is only a sound medium - package identification or understanding of the way a product works is limited Media Planning Considerations High-demand for radio time makes it difficult for media buyers to purchase specific times desired by clients, thus precipitating a demand-driven rate card at top ranked stations
Lead time is an important issue for advertisers wanting to maintain costs and access preferred inventory
Some of this alleviated as various radio networks have become much larger and therefore offer packaged media buys in all their stations Target Market Selectivity Reach Potential Frequency Cost Flexibility Radio stations appeal to a more precisely defined demographic than television stations do because they adopt a specific music format
Advertisers use profile-matching strategy, and select stations with audience profiles that match their target market
In smaller markets, where music formats change in a single station and audience flow varies by daypart, advertiser can schedule their commercial at appropriate time of day to reach their target Radio has potential to reach large audiences, particularly if advertisers places ads on several stations in urban market (reach is highest in the morning, which is the most popular listening time)Other factors that influence reach: mobility (listening while driving), and portability (radio played in background in workplace/ retail store) Low cost of advertising attracts local clients
Production costs less than television, & changes to copy can be made on short notice
Basic cost for each spot is relatively low, making radio an efficient means of reaching selective audiences
Good medium to supplement other media in a total campaign Radio is usually referred to as frequency medium
Local advertisers can use radio to stimulate immediate response from consumers
Radio boosts frequency of national advertiser’s ads in key markets 3 areas of flexibility:
Creative: copy changes can be made short notice
Scheduling: lead time required is short, can be “heavied up” (ie. Advertising can be increased) on short notice if competitive situation dictates
Market scheduling: radio ideal for advertisers following key-market place, because local station reaches specific demographic Adult contemporary plays softer, easy-listening music that spans oldies and current contemporary recordings. The general audience is approximately 25-49 years of age Country music stations draw audiences that span many different age groups. The popularity of country music varies by region. In Canada, it is especially popular in the maritimes and the prairies, though rather unpopular in Ontario and Quebec Contemporary Hit Radio (CHR), which is also referred to as Top 40 stations, are very popular in big cities, and draw an audience of teens, as well as those in the 18-34 years old age range the type of music or other programming found on that station
most popular are Adult contemporary, Oldies, Rock, Talk, Country, and Comtemporary hits
Any given station caters very directly to particular audience > creates excellent opportunity for advertisers advertising to communicate message to target Formats and their audiences 5 6 4 2 3 1 Golden oldies stations are generally listened to by those who are 35-54 years old News/talk stations focus on a variety of different topics. Some just report news and take call ins, other pick a focus, such as sports. Sports radio is particularly popular with males 25-54 years of age. News/talk is helping to bring AM radio back into popularity Train Wreck, or Whatever radio is a format that was popularized in Canada. It can go by the nickname of “Jack”, based on JackFM, the station that popularized the format. Train Wreck radio refers to a format where the DJ will play whatever he or she likes, rather than adhering to a particular style of music The BBM Bureau of Measurement compiles listening data using two different methodologies: paper diaries and portable people meters. Diaries are used to collect data on single weeks of listening by individuals 12 years and older. Portable people meters are an electronic methodology that provides the audience data in the top five markets across Canada. By: Court Jarrell, Share Ryan, Stephanie Florio, Leena Heravi, and Reza Alavie The End :)
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