Chapter 9

Sales is ubiquitous in electronic media jobs▪ Talent Agents▪ Producers▪ Crew members (Recent grads)

However, sales occurs mostly▪ When companies try to sell▪ Products or services

To customers Or Each other

Stations, cable operators, & networks Want to introduce maximum number of

commercial spots ▪ Without jeopardizing appreciation of the

program content for audiences ▪ Or the effectiveness of commercials for

advertisers.

Media to Customer Sales Companies gain revenue through numerous

ways▪ Movie companies▪ Tickets, concessions

▪ Internet Providers▪ Access to the internet

▪ Satellite Radio▪ Access to commercial free audio channels

▪ Cable / Satellite TV + phone▪ Phone, TV channels, & Internet service

Wheeling and Dealing…. Tactics to get the most out of your

wallet!▪ 3 free months of premium channel (HBO,

Showtime, etc)▪ If you sign up for a year

▪ DVR & HDTV free for higher package purchase▪ Deals for bundle plans▪ Buying more than one service from a company

Public Radio & TV▪ Would you pay for something others get for

free? These stations often seek ways to

generate revenue over the air▪ Fundraisers▪ Often Successful, but can be irritating to audience

▪ Printed mailers, wine tastings, concerts, etc▪ Companies work with each other to help generate

revenue

Media to Media sales▪ Renting facilities▪ TV/Movie company renting studio to production

company

▪ Syndication▪ Cash –

Station pays full syndication cost for programming▪ Barter –

Station pays nothing syndicator gets ad revenue▪ Cash + Barter –

Station pays some cash and splits ad revenue

Cable Affiliates▪ Cable networks use reps ▪ To convince cable companies to include their stations

Broadcast TV▪ Networks pay stations to air content▪ Keep rights to sell ads during programs

Movies▪ Decide what to show▪ Through trailers, pitches, blind bidding

The Nature of Advertising▪ Most ads don’t involve direct sales to

customers There is no guarantee consumers will

view ads▪ What are ways that people are influenced to buy

▪ There have been instances of increased sales▪ During ad campaigns

Leading to belief ads are effective

Convincing advertisers to use your medium Potential eyes and ears▪ “Use our station and reach 10 million viewers”▪ This can be convincing to someone trying to push a product

Concept selling▪ Small stations play up the “target audience” they

reach▪ Audience is small but very specific

Sales Reps▪ Staff calling local businesses to sell ad space▪ This often includes people with other jobs▪ (dj’s, general managers, etc)

The Role of Ad Agencies Full service▪ Oversee all aspects of ad campaign▪ Research, development, production, placement

In house▪ Where ad campaigns are developed by

company staff Boutique▪ Oversee only specific elements of an ad

campaign▪ Ad development OR production OR placement

Ad agencies handling large national accounts Determine the best media mix for

clients Allocate budgets among the major

media.Billings

The amount of advertising media charged.

Traditional Advertising Spot buying▪ Radio/TV Commercials running 15, 30, 60

seconds▪ Radio spots vary in placement▪ TV spots are more definite

Program buying▪ Advertisers pay production cost of program▪ Their commercials are aired during breaks

Network buying▪ Ads air during that program everywhere it’s aired

National▪ Ad is placed on various stations/times across the

country▪ To target specific audience

Regional▪ When ads are placed in areas where target

audience is▪ Tractors, beach accessories,

Local▪ Used primarily by businesses serving local area▪ Used car dealers, restaurants, etc

Network advertising▪ Includes commercials placed by major advertisers

intended for a national audience. National spot advertising

▪ When an advertiser wishes to reach only selected geographical regions of the country.

Local advertising▪ Includes commercials placed by local businesses and

advertising agencies. Syndicated barter advertising

▪ Commercials placed by national advertisers inside various syndicated programs on local TV stations around the country.

Nationally produced commercial Can be inserted within local programming, ▪ Such as a local newscast.

Locally produced commercials Can be inserted in a syndicated or network program.

Promos Promotional announcements.

Separation guidelines Direct competitors are not supposed to be

scheduled side-by-side within the same break. Proof of performance

Evidence that advertiser contracts have been carried out.

Product Placement▪ Fairly old practice (especially in movies)

Virtual Ads▪ Where ads are not actually in the program▪ They’re digitally placed later

Product integration▪ Where the product is a part of the storyline▪ Main character is saving for a Mac computer

Infomercials▪ Entire program relates to a product

Until 1984 FCC prohibited program-length

commercials Productions that interweave program and

commercial material.After the ban was lifted

A flood of infomercials followed

Product placement or product integration A business model ▪ That ignores program interruptions and zapping.

Consumer advocates are concerned▪ About the lack of disclosure for unsuspecting audiences ▪ They do not realize that a portion of the program content is a

“commercial”

Interactive Internet Advertising Keyword searches▪ Where ads appear based on words entered in

searches PPC (Pay per click)▪ Companies pay each time their ad is clicked on the

side Other Ads▪ Banner▪ Appear at top or side of web pages

▪ Pop-up▪ Appear on page covering content until clicked off

Web banner advertising ▪ The most popular among serious advertisers▪ Used to notify customers of a product or service.

Impression▪ When a web page is loaded into a web browser.

Click through▪ When a viewer clicks a banner and is directed to an

advertiser’s web site. Cookie▪ Stores information on a user’s computer that web services

can retrieve and use later. Viral marketing▪ When content is passed from user to user in chain-letter

style via e-mail.

Conventional media ▪ Are beginning to expand their services ▪ including mobile audiences.

This type of advertising▪ Commonly seen as a ▪ Mobile banner or mobile poster.

Advertisement Production Radio▪ Usually created by the radio station staff

TV▪ More elaborate, sometimes prepared by TV station▪ Sometimes produced by ad agencies

Agencies▪ Often develop ad concepts and oversee production

Internet▪ Various in format▪ Can be TV spots or graphic based

Advertising to Children Ads/Programs▪ Host selling▪ Where hosts of kids shows plug products during the

show

FCC guidelines▪ Over the years there have been various rules▪ Preventing hosts/stars from plugging products▪ Created islands (black space between ad and show)

Time for ads▪ Has gone from 16 to 9.5 minutes per hour

Toy-based programming▪ Programs where a toy was the star of the show▪ Show was designed to sell the toy▪ Parents felt show was 30 min commercial

Content of kids commercials▪ Often criticized for sugary foods▪ Sound effects that make it more exciting to kids

Other Controversial Advertising Deceptions▪ Ads that are misleading to the viewers

Testimonials▪ When starts support a product they may not be

familiar with or use to enhance their own performance Types of products▪ Cigarettes, liquor, condoms, etc▪ Are there any products you feel should be banned? Why

Political ads▪ Often presented in a biased fashion▪ Supporting media show their candidate more positively

Some legal products and services that appear in print and on billboards never appear in electronic mass media.

Congress banned the broadcasting of cigarette ads in 1971 and later extended the ban to all tobacco products.

In 1996, TV stations began accepting advertising for hard liquor products.

Before 1999, federal law prohibited advertisements for casino gambling.

Plugola A conflict of interest▪ Occurs when a station or one of its employees uses or

promotes on the air something ▪ In which the employee has an undisclosed financial

interest. Payola

Direct payment for inserting plugs.

Double billing When dealers and stations conspire To bill higher for advertising than the dealer

actually paid.Clipping

When affiliates cut away from network programs

Prematurely to insert commercials of their own.

Niche Content that focuses more on specialized “target

audiences” rather than a single, homogeneous mass audience.

Equivalent substitutes When a customer finds two or more brands

equally satisfying and therefore easily substituted.

Brand differentiation Leads to destructive pricing wars among

competitors.