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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 classified1
Advertising Classified

  • Geographically

    • National

    • Regional

    • Local

    • International


Advertising classified2
Advertising Classified

  • By medium

    • Electronic

      • Radio

      • Television

      • Cable

      • Internet


Advertising classified3
Advertising Classified

  • Print

    • Newspaper

    • Magazine

  • Outdoor

    • Billboard

    • Transit


Advertising classified4
Advertising Classified

  • Specialty

    • Novelties

    • POP

    • Product placement

    • Etc.

    • Etc.

    • Etc.


Advertising classified5
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 history1
Advertising History

  • Dates to 1600s

    • British newspapers paid notices


Advertising history2
Advertising History

  • Ben Franklin is credited with introducing white space and illustrations


Advertising history3
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 history1
Broadcast Advertising History

  • Post WWI

    • Radio grew

    • Lifestyles improved

    • Spending increased

    • Radio networks emerged

    • Advertising stressed the “Unique Selling Proposition”


Broadcast advertising history2
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 history3
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 strategy5
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 strategy6
Media strategy

  • Best frequency

    • Outdoor, newspapers, magazines

  • Best Reach

    • Network advertising, magazines

  • Best combination

    • Radio


Media strategy7
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.


CPM

2 spots @ $8.00 each

1 reaches 4500 QHP

1 reaches 3500 QHP


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



CPM

200 ÷ 50000 = .004



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 research1
Audience research

100%

All possible viewers or listeners



Audience research3
Audience research

Not viewing

HUT

50%

HUT level = 50


Audience research4
Audience research

Not viewing

Tuned to our spot


Audience research5
Audience research

25% of TVHH – 50% of HUT


Audience research6
Audience research

Rating = 25 Share = 50


Audience research terms
Audience research terms

  • Gross ratings points

  • Average quarter hour people (QHP)


Audience research7
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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