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Broadcast Advertising. Advertising Defined. Non-personal Communication Usually paid for By an identified sponsor Persuasive in nature About products, ideas or services Through various media. Advertising in the Marketing Mix. Product Quality, package, appearance, etc. Price

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Presentation Transcript
advertising defined
Advertising Defined
  • Non-personal Communication
  • Usually paid for
  • By an identified sponsor
  • Persuasive in nature
  • About products, ideas or services
  • Through various media
advertising in the marketing mix
Advertising in the Marketing Mix
  • Product
    • Quality, package, appearance, etc.
  • Price
    • Deep discount to premium
  • Place
    • Distribution channels
  • Promotion
    • POP, personal selling, PR, Advertising
advertising classified
Advertising Classified
  • By audience
    • Consumer
    • Business to Business
      • Industrial
      • Trade
      • Professional
      • Farm
advertising classified5
Advertising Classified
  • Geographically
    • National
    • Regional
    • Local
    • International
advertising classified6
Advertising Classified
  • By medium
    • Electronic
      • Radio
      • Television
      • Cable
      • Internet
advertising classified7
Advertising Classified
  • Print
    • Newspaper
    • Magazine
  • Outdoor
    • Billboard
    • Transit
advertising classified8
Advertising Classified
  • Specialty
    • Novelties
    • POP
    • Product placement
    • Etc.
    • Etc.
    • Etc.
advertising classified9
Advertising Classified
  • By function
    • Product -vs- non-product
    • Commercial -vs- non-commercial
    • Direct action -vs- non-direct action
the advertising industry
The advertising industry
  • Agencies
  • The media
  • The advertisers
  • The support services and suppliers
  • The regulators
  • The consumers
advertising history
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
advertising history12
Advertising History
  • Dates to 1600s
    • British newspapers paid notices
advertising history13
Advertising History
  • Ben Franklin is credited with introducing white space and illustrations
advertising history14
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
broadcast advertising history
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/1stcommercial.html
broadcast advertising history16
Broadcast Advertising History
  • Post WWI
    • Radio grew
    • Lifestyles improved
    • Spending increased
    • Radio networks emerged
    • Advertising stressed the “Unique Selling Proposition”
broadcast advertising history17
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”
broadcast advertising history18
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
the contemporary advertising industry
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
effects of advertising
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”
media strategy
Media strategy
  • Buying patterns
    • Weekly cycles
    • Monthly cycles
    • Annual cycles
    • Seasonal products
  • Products/service with fixed maximum capacities
media strategy26
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
media strategy27
Media strategy
  • Best frequency
    • Outdoor, newspapers, magazines
  • Best Reach
    • Network advertising, magazines
  • Best combination
    • Radio
media strategy28
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.
slide29
CPM

2 spots @ $8.00 each

1 reaches 4500 QHP

1 reaches 3500 QHP

slide30
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
slide32
CPM

200 ÷ 50000 = .004

slide34
CPM

354 ÷ 177000 = .002

waste circulation
Waste circulation
  • Reaching people who are not the desired audience
  • Demographics = age, gender, income
  • Psychographics = “lifestyle”
audience research
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
audience research37
Audience research

100%

All possible viewers or listeners

audience research39
Audience research

Not viewing

HUT

50%

HUT level = 50

audience research40
Audience research

Not viewing

Tuned to our spot

audience research41
Audience research

25% of TVHH – 50% of HUT

audience research42
Audience research

Rating = 25 Share = 50

audience research terms
Audience research terms
  • Gross ratings points
  • Average quarter hour people (QHP)
audience research44
Audience research
  • Began in the 1920s with radio listenership
  • Archibald Crossley personal interviews
  • C. E. Hooper – Hooperatings – personal
  • A. C. Nielsen
    • Diaries
    • Audimeter
a c nielsen
A.C. Nielsen
  • Now only television ratings
  • Use diaries, audimeters and “people meters”
  • Meters used for “overnights”
a c nielsen terminology
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)
market areas
Market areas

TSA

DMA

TSA

DMA

TSA

arbitron
Arbitron
  • Radio research
  • Dairies
  • Developing the “personal people meter” (PPM)
arbitron terminology
Arbitron terminology
  • Total survey area (TSA)
  • Area of Dominant Influence (ADI)
    • Every county assigned to an ADI
  • Metro survey area (MSA)
problems in audience research
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?
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