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Broadcast Advertising - PowerPoint PPT Presentation


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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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Broadcast Advertising


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    Presentation Transcript
    1. Broadcast Advertising

    2. Advertising Defined • Non-personal Communication • Usually paid for • By an identified sponsor • Persuasive in nature • About products, ideas or services • Through various media

    3. Advertising in the Marketing Mix • Product • Quality, package, appearance, etc. • Price • Deep discount to premium • Place • Distribution channels • Promotion • POP, personal selling, PR, Advertising

    4. Advertising Classified • By audience • Consumer • Business to Business • Industrial • Trade • Professional • Farm

    5. Advertising Classified • Geographically • National • Regional • Local • International

    6. Advertising Classified • By medium • Electronic • Radio • Television • Cable • Internet

    7. Advertising Classified • Print • Newspaper • Magazine • Outdoor • Billboard • Transit

    8. Advertising Classified • Specialty • Novelties • POP • Product placement • Etc. • Etc. • Etc.

    9. Advertising Classified • By function • Product -vs- non-product • Commercial -vs- non-commercial • Direct action -vs- non-direct action

    10. The advertising industry • Agencies • The media • The advertisers • The support services and suppliers • The regulators • The consumers

    11. 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

    12. Advertising History • Dates to 1600s • British newspapers paid notices

    13. Advertising History • Ben Franklin is credited with introducing white space and illustrations

    14. 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

    15. 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

    16. Broadcast Advertising History • Post WWI • Radio grew • Lifestyles improved • Spending increased • Radio networks emerged • Advertising stressed the “Unique Selling Proposition”

    17. 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”

    18. 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

    19. 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

    20. 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”

    21. Media strategy • Buying patterns • Weekly cycles • Monthly cycles • Annual cycles • Seasonal products • Products/service with fixed maximum capacities

    22. Media strategy

    23. Media strategy

    24. Media strategy

    25. Media strategy

    26. 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

    27. Media strategy • Best frequency • Outdoor, newspapers, magazines • Best Reach • Network advertising, magazines • Best combination • Radio

    28. 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.

    29. CPM 2 spots @ $8.00 each 1 reaches 4500 QHP 1 reaches 3500 QHP

    30. 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

    31. CPM

    32. CPM 200 ÷ 50000 = .004

    33. CPM

    34. CPM 354 ÷ 177000 = .002

    35. Waste circulation • Reaching people who are not the desired audience • Demographics = age, gender, income • Psychographics = “lifestyle”

    36. 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

    37. Audience research 100% All possible viewers or listeners

    38. Audience research 100% TVHH

    39. Audience research Not viewing HUT 50% HUT level = 50

    40. Audience research Not viewing Tuned to our spot

    41. Audience research 25% of TVHH – 50% of HUT

    42. Audience research Rating = 25 Share = 50

    43. Audience research terms • Gross ratings points • Average quarter hour people (QHP)

    44. Audience research • Began in the 1920s with radio listenership • Archibald Crossley personal interviews • C. E. Hooper – Hooperatings – personal • A. C. Nielsen • Diaries • Audimeter

    45. Audimeter

    46. A.C. Nielsen • Now only television ratings • Use diaries, audimeters and “people meters” • Meters used for “overnights”

    47. 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)

    48. Market areas TSA DMA TSA DMA TSA

    49. Arbitron • Radio research • Dairies • Developing the “personal people meter” (PPM)

    50. Arbitron terminology • Total survey area (TSA) • Area of Dominant Influence (ADI) • Every county assigned to an ADI • Metro survey area (MSA)