Using TV

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Using TV

• Broadcast vs. Cable
• Buying TV

Insert Ad Professors Choice
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Television Trends

• Broadcast vs. Cable

Heaviest viewers -- middle-income, high school
educated their families TV viewing hours have
steadily increased Number of Channels
Increasing Audience Fragmentation "Channel
Repertoire"
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Broadcast vs. Cable
Pros
Selectivity Audience Demographics Low
Cost Limited Reach Fragmentation Quality

• Mass Coverage
• Low CPM
• High Impact
• Prestige
• High Production and Air Time Costs
• Brevity
• Little Selectivity

Cons
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What are the advantages of broadcast TV ads for a
product like milk?
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Cable households buy more ...

• PRODUCT/SERVICE CABLE VIEWERS NONCABLE VIEWERS
• versus National Index of 100
• Business Travel 111 81
• Vacation Travel 107 87
• Play golf 120 66
• Attend live theater 111 81
• Health club 109 84
• Diet cola drinks 110 83
• Imported beer 109 84
• Imported wine 112 80
• Dry cleaning 117 71
• Cellular phone 118 88
• Burglar alarm 116 72
• Spent 2,500 furniture 125 56

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Television Advertising

• Network

Provide a mass audience Sponsorship Co-sponsorship
Participating Buys
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Top 10 Network TV advertisers

• 1999 Rank Advertiser Spending in Millions
• 1 General Motors 887.9
• 2 Proctor Gamble 621.5
• 3 Johnson Johnson 466.9
• 4 Philip Morris Cos. 383.2
• 5 Ford Motor Co. 365
• 6 Pfizer 364.7
• 7 McDonalds Corp 296.8
• 8 Tricon Global KFC, Pizza Hut, Taco Bell287.9
• 9 Daimler Chrysler 286.5
• 10 WorldCom 274.4

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Ad costs prime time Network TV

• TV show year 2000 Price per 30 seconds
• ER NBC 620,00
• Friends NBC 540,000
• Will Grace NBC 480,000
• Everybody Loves Raymond CBS 460,000
• Ally McBeal FOX 335,000
• Simpsons FOX 335,000
• MillionaireABC 271,000
• The X-Files FOX 265.000

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Television Advertising

• Network
• Spot Buys

Run in Pods Between Programs Local or
Regional May be purchased for 10, 15, 30 or 60
seconds
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Television Advertising

• Network
• Spot Buys
• Syndication

Off Network Syndication First-Run
Syndication Barter Syndication
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Syndication

• Syndication is the sale of programs on a
  station-by-station, market-by-market basis.
• As audiences fragment, syndicated programs become
  an increasingly popular alternative to network
  TV.
• In a little more than a decade, syndication has
  grown into a 2.87 billion dollar ad medium.

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Television Advertising

• Network
• Spot Buys
• Syndication
• Infomercials

Attract Consumer Attention Allow for Direct
Response Demonstrate Products
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Infomercials Program Length ads PLAs

• Reasons for sudden growth
• Consumers pay attention and can respond quickly
• Build brands where no other competitors are
• Great for product demonstration
• Results are measurable and accountable
• Campaigns pay for themselves
• PLAs combine the power of advertising with direct
  response and sales promotion

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Television Advertising

• Network
• Spot Buys
• Syndication
• Infomercials
• Local TV Advertising

Retailers Most Common Spot Advertising
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Creating Effective TV ads

• Begin at the finish concentrate on the final
  impression the commercial will make
• Create an attention-getting opening
• Use a situation that grows naturally out of the
  sales story make it easy for viewers to identify
  with characters

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More TV commercial tips

• Characters are the living symbol of the product
  appealing, believable, relevant
• Keep it simple
• Write concise audio copy for 60-second, 101-110
  words most effective
• Make demonstrations dramatic, but believable

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Final tips

• Let the words interpret the picture and prepare
  viewers for the next scene
• Run scenes five or six seconds on avg
• Keep the look of the video fresh and new