CHAPTER 9 Broadcast Media Television and Radio 9

Learning Objectives § § 9 -2 Identify the organizations involved in the Canadian broadcasting industry Assess the advantages and disadvantages of television and radio as advertising media Explain the factors considered in, and procedures used, for buying television and radio time Identify recent technologies affecting commercial television and radio in Canada Copyright © 2009 Pearson Education Canada Inc.

The Canadian Television Market §Television and radio reaches 99% of Canadian households. § 65% of households have two or more televisions. §On the average day, 86% of Canadians view television at least once. §Four national networks: § CBC § CTV § Radio-Canada § TVA 9 -3 Copyright © 2009 Pearson Education Canada Inc.

Television Market §The television market is divided between: § National Networks § CTV – 18 stations § Regional Networks § CTV operates regional networks in Ontario, Atlantic Canada, and Saskatchewan § Specialty cable channels § TSN, Much. Music, HGTV § Pay TV 9 -4 Copyright © 2009 Pearson Education Canada Inc.

Trends Affecting Television and Television Advertising The landscape of the Canadian Television industry is changing. §Audience Fragmentation §Alterative Viewing: Video-on-Demand §Mobile Media §Commercial Avoidance and Personal Video Recorders §Media Convergence 9 -5 Copyright © 2009 Pearson Education Canada Inc.

Television Viewing Highlights §Media-viewing data is collected by two prominent and competing organizations in Canada: BBM Bureau of Measurement and Nielsen Media Research §A valuable resource for advertisers to assess the value of the advertising expenditure and for identifying what programs are popular. Ratings §Are audience estimates expressed as a % of the population in a defined geographic area. 9 -6 Copyright © 2009 Pearson Education Canada Inc.

Advantages & Disadvantages of Television Advertising Advantages Disadvantages § Impact & Effectiveness of § High Cost Messages § Clutter § High Reach § Lack of target-market selectivity § Frequency Potential § Some Demographic Selectivity § Coverage Flexibility §Demonstration Capability 9 -7 §Audience Fragmentation §Commercial Avoidance §Lack of Planning Flexibility §Creative Limitations Copyright © 2009 Pearson Education Canada Inc.

Television Advertising Alternatives § Network Advertising § National Spot (Selective spot) Advertising § Sponsorships Opportunities § Product Placement and Branded Content § Local Advertising 9 -8 Copyright © 2009 Pearson Education Canada Inc.

Television Advertising Rates and Buying Procedures § Supply and Demand § Nature of Advertising Purchase § Type of Programs § Dayparts (Time of Day) § Length of Commercial 9 -9 Copyright © 2009 Pearson Education Canada Inc.

Buying Television Time Media buying in television is a complex process. §National and Regional Networks § Supply and demand system = grid card with varying price levels § Spot rates depend upon daypart, audience size, and time of year. §Local-Market Television Rates § Offer continuity discount for 52 -week contracts. § Commercials are rotated vertically through the day, and horizontally during the week 9 -10 §GRPs (introduced in Chapter 7) Copyright © 2009 Pearson Education Canada Inc.

Discounts Offered by Television § Frequency § Volume § Continuity § Seasonal § Package

The Canadian Radio Market § 602 commercial radio stations in Canada § 195 are AM (amplitude modulation) § 407 are FM (frequency modulation) §Average adult spends about 20 -22 hours/week listening to radio §Radio broadcasting is divided between § Canadian Broadcasting Corporation (government funded) § Independently owned and operated stations surviving on advertising revenues 9 -12 Copyright © 2009 Pearson Education Canada Inc.

Trends Influencing the Radio Industry The radio industry is in transition. New technologies are bringing radio signals to people in different ways. § Digital Radio (e. g. CBC) § Internet Radio (e. g. 3 wk. com) § Satellite Radio (e. g. Sirius Canada) § Ipods and other Portable devices (e. g. itunes) 9 -13 Visit these websites and outline the advertising advantages these ‘stations’ have compared to traditional radio. Copyright © 2009 Pearson Education Canada Inc.

Radio Listening Highlights §Conventional Radio are transmitted two ways: §AM – varying the height of radio waves §FM – varying frequency of radio waves §Tuning Hours: §Average listener from 20 -22 hours a week §Teens spend 8 hours as i. Pods, cell phones, and Internet are more attractive to them §Radio is more popular in the morning, when they wake up, or travel to work 9 -14 Copyright © 2009 Pearson Education Canada Inc.

Radio Station Formats §Radio audiences are largely determined by a station’s format (type and nature of the programming) § Adult Contemporary § Gold and oldies § Country § News/Talk § Contemporary Hit Radio (CHR) § Train-wreck or whatever 9 -15 Copyright © 2009 Pearson Education Canada Inc.

Advantages & Disadvantages of Radio Advertising Advantages Disadvantages § Target-Market Selectivity § Audience Fragmentation § Reach Potential § Frequency § Cost §Message Retention §Media-Planning Consideration § Flexibility 9 -16 Copyright © 2009 Pearson Education Canada Inc.

Radio Advertising Rates and Buying Procedures § Seasonal Rate Structures § Dayparts § Reach

Radio Discounts Frequency Number of spots over a specified period of time Volume Large number of spots Continuity For a contract that covers a specified period of time Continued… 9 -18 Copyright © 2009 Pearson Education Canada Inc.

Radio Discounts (cont. ) Package Plans Combination Run-of-Schedule 9 -19 Purchase a minimum weekly number of spots in return for a packaged discount rate If they air commercials on more than one stations If allowed to vertically or horizontally rotate commercials through a schedule at its own discretion Copyright © 2009 Pearson Education Canada Inc.

Buying Radio Time Factors that have an impact on the spot rate: § Volume § Frequency (the total number of spots in a buy) § Timing (in terms of day or season) § Continuity (length of the plan) 9 -20 Copyright © 2009 Pearson Education Canada Inc.

Buying Radio Time Rotation Plans § Vertical Rotation § Horizontal Rotation Reach Plan (Total Audience Plan) §The rotation of commercials through dayparts based on predetermined frequency at the discretion of the station. 9 -21 Copyright © 2009 Pearson Education Canada Inc.