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ADVERTISING

ADVERTISING. The Players. Advertisers Agencies Media Regulators Sales Reps Support – research, buyers, etc. Reach. The number of unduplicated exposures. i.e. the number of different people that see or hear an advertisement. Frequency. The average number of duplicate exposures.

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ADVERTISING

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  1. ADVERTISING

  2. The Players • Advertisers • Agencies • Media • Regulators • Sales Reps • Support – research, buyers, etc.

  3. Reach • The number of unduplicated exposures. • i.e. the number of different people that see or hear an advertisement

  4. Frequency • The average number of duplicate exposures. • i.e. the number of times someone is exposed to an advertisement

  5. Reach vs. Frequency • The best media vehicle for reach is network television. • TV penetration rates are near 100%. • With a single buy, an advertiser can reach millions of households, and tens of millions of viewers. • Too expensive for high frequency.

  6. Reach vs. Frequency • Billboards and Newspapers are best for frequency. • If someone reads a newspaper, they likely read it every day. • If someone passes a billboard, they likely pass the same billboard every day.

  7. Reach vs. Frequency • Generally, reach and frequency are mutually exclusive. A medium that delivers one, will not deliver the other. • Radio is possibly the best combination of reach and frequency. • Radio has high penetration, and is cheap enough to allow frequency.

  8. Demographics • The more specific the demographics of the audience – the higher the cost to reach the audience. • Minimizing waste circulation. • Attracting a qualified audience of true prospective buyers for the product.

  9. Cost per Thousand (CPM) • The cost of reaching one thousand households, viewers, listeners, readers, drivers, etc. • Allows advertisers to cross-compare among several media.

  10. Audience Research • Began in 1929 with Archibald Crossley. • The “Hooperatings” dominated from the mid-30s to the 40s. Phone interviews. • A.C. Nielsen began audience research in the 1940s. • Arbitron (A.R.B.) established in 1949.

  11. A.C. Nielsen • Originally both radio and TV. • Developed the audimeter. • Now only TV. • Use diaries, audimeters and people meters.

  12. Arbitron • Now only radio. • Must rely on diaries. • Experimenting with the passive people meter (PPM).

  13. Statistics • Quarter-hour people (QHP), the average number people who listen to a station for at least five minutes within a fifteen minute block.

  14. Statistics • TVHH = television households. The number of households equipped with TVs. • HUT = the homes using television. The number of households with their TVs actually turned on.

  15. Statistics • Shares = the percentage of the HUT. • Ratings = the percentage of the TVHH.

  16. Television Households

  17. Home Using Television (HUT level) = 50

  18. Tuned In Rating = 25 Share = 50

  19. Problems in Audience Research • Absenteeism • Hypoing • Falsifying diaries • Poor diary return rates

  20. Selling advertising • Networks sell audiences. • Sales based on ratings points. • If guarantee not met – then network provides make goods.

  21. Selling Advertising • Local Stations sell time. • 30s, 60s, - less often 15s, 90s, 120s • Sell by daypart. • ROS, TAP

  22. Types of advertising • Co-op • Barter • Barter Syndication • Sponsorship versus spot buying

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