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Lecture 13: Sept. 30th

by: Meghan Shah

Lecture 13: Sept. 30th ADPR 3100-0

Meghan Shah
GPA 3.78

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About this Document

TV advertising
Principles of Advertising
Nathaniel J. Evans
Class Notes
25 ?




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This 3 page Class Notes was uploaded by Meghan Shah on Tuesday October 4, 2016. The Class Notes belongs to ADPR 3100-0 at University of Georgia taught by Nathaniel J. Evans in Fall 2016. Since its upload, it has received 5 views. For similar materials see Principles of Advertising in Advertising at University of Georgia.


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Date Created: 10/04/16
Lecture 13: TV advertising Sept. 30th  Profile ○ Very high reach ▪ 99% of households own at least 1 TV ○ Primary medium ▪ You can have an ad campaign on TV alone (no supplemental ads like outdoor or print) and it will can successful ○ Cost is very high ▪ 30 seconds cost thousands of dollars ○ Frequency is very high  Strengths ○ High reach as a medium ▪ Varies based on channel and show ○ Creative flexibility  ▪ TV ads can be almost anything ▪ Lots to work with: sound, color, and motion ○ Delivers large, national markets ○ Increasingly delivers to niche markets  Drawbacks ○ Clutter ▪ 1 in 4 ads is only 15 seconds ○ Audiences are smaller, fragmented, and low income ○ Viewer avoidance ▪ Changing channels ▪ Doing something else during commercial breaks ○ Very costly ○ Ephemeral ▪ Messages are brief and fleeting ▪ You must to have high frequencies  Best Uses ○ National campaigns addressing large markets ▪ Brand message (brand identity)  Good for awareness  Good for attitude development/change ▪ Positioning (or repositioning)  Good for competitive considerations  Categories ○ Network ▪ New shows ▪ National advertisers buy time from national networks  ABC, NBC, etc. ▪ The networks send the ads to all of its affiliated shows and stations ○ Cable ▪ New shows or repeats ▪ National advertisers by time from cable providers  MTV, ESPN, Comedy Central, etc. ▪ Unlike network, cable delivers to niche and predictable audiences ○ Spot (network) ▪ New shows or repeats ▪ National or local advertisements ▪ Buy from individual local stations; shown on only those stations ○ Spot (cable)  ▪ New shows or repeats ▪ National or local ads ▪ Buy from cable provider and then only shown is selected DMA  DMA – designated market areas  Ex: Atlanta  Formulas ○ The example: ▪ Program’s audience: 290,000 ▪ Total TV households: 2,452,200 ▪ Total HUT: 800,000 ▪ Number of spots bought: 7 ▪ Cost of TV buys: $700,000 ▪ Gross Impressions: 2,030,000 ○ Rating (size) = (program’s audience / total TV households) * 100 ▪ Audience units:  TV household ­ a residence in a DMA that has at least one TV  HUT ­ households using the TV at a given time ▪ “How many TV households are tuned into this particular show?” ▪ Keep in mind that this is done for a DMA ▪ Ex:   rating = (290,000 / 2,453,200) * 100 = 11.82 ○ Share (popularity) = (Program’s audience / total HUT in DMA) * 100 ▪ “Of households using the TV, what proportion are tuned into a specific show  at a specific time?” ▪ HUT is always less than TV households  Share is much larger than rating ▪ Ex:  Share = (290,000 / 800,000) * 100 = 36.25 ○ GRPs = Reach * number of spots bought (during/on a particular show) ○ GIs = people watching the show * number of spot bought on/during a particular  show  Gross impressions ▪ Ex:  GRPs = 11.82 * 7 = 82.74 ○ HHI = GRP (in decimal form) * Total TV households ▪ HHI – household impressions ▪ Decimal form – divide by 100 ▪ Ex:   HHI = .8274 * 2.452,200 = 2,028,950.28 ○ $ per GRP = total cost of TV buys / GRPs ▪ Ex:  $ per GRP = 700,000 / 82.74 = $8,460.24 ○ $ per GI = Total cost of TV buys / GI ▪ Ex:  $ per GI = 700,000 / 2,030,000 = $0.34  How do we know what is a good buy? ○ We don’t buy an individual show based on rating; we buy a schedule of shows  that give us a relative weight (like GRPs) ○ We can’t compare GRPs unless the populations are equal  ○ We look at cost per GRP  Increasingly Niche Medium ○ 1950s – 1980s ▪ Three national broadcasting networks ○ 1980s & beyond ▪ Cable ▪ Satellite networks ▪ Program recording ▪ 500+ channels; time­shifting  Verification ○ Nielson ratings ▪ People Meter attached to the main TV ○ Nielson Station index ▪ Local­television watching ▪ Meters and user diaries  Television ○ National, large audiences ○ Pricey ○ Increasingly a niche medium ○ Brand/positioning


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