Television

JOMC 170

Time Spent

4 Kinds of Ad-Supported TV

• Network

• Cable

• Syndication

• Local (mainly news & public affairs)

Network

• Broadcast Coverage AreaThe geographic area that receives a signal from an originating television station.

• NetworkA connecting system which allows simultaneous telecasting of a single origination by a number of stations.

Cable

• Cable Television (Cable TV or CATV)A television distribution system whereby TV signals are transmitted via cable (insulated wire), rather than through the air, to TV sets subscribers in a community or locality. Cable television systems are generally called cable systems; the companies that own and operate them are known as cable system operators or cablecasters.

ADS

• Alternate Delivery Systems (ADS)TV homes with unwired cable access are referred to as having Alternate Delivery Systems. The four components of ADS are:– Direct Broadcast Satellite (DBS)

– Satellite Master Antenna (SMATV)

– Microwave Multi Distribution System (MMDS), "WIRELESS CABLE"

– Satellite Dish (C-Band/KU Band), "Big Dish"

ADS penetration

Syndication

• Syndicated ProgramA program that is produced for national distribution, but which is shown on individual local stations rather than on a national network is called a syndicated program. These programs may be sponsored either locally or nationally.

First Run

Off-Network

Syndicated Programming• Barter: Syndicator licenses program to local

station in exchange for commerical time which the Syndicator then sells nationally.

• Barter/Cash: Syndicator licenses program to local station in exchange for a combination of cash payment and commercial time from local station. Cash Sales: Program license to local station for all cash. Station sells 100% of the time locally.

• Multiple Barter

Local

• O&O StationA television station owned and operated by a national network.

• AffiliateA TV station, not owned by a network, that grants a network use of specific time periods for network programs and advertising, for compensation. Remainder of broadcast day is programmed locally.

• Independent StationStations not affiliated with any network, usually refers to commercial stations only.

Non-Ad-Supported TV

• Pay-Per-View TV (PPV)A system in which payment is made for a single showing of a program.

• Pay Television (Pay TV)Home television programming for which the viewer pays by the program or by the month; also called pay-television, subscription television (STV), or toll-TV.

Rec. vs. View

Know What’s On?

Why Watched

TV Dayparts

• DaypartsThe time segments that divide the TV day for ad scheduling purposes. These segments generally reflect a television station’s programming patterns. Comparison of audience estimates between dayparts may indicate differences in size and composition of available audience.

most common dayparts*• Early morning 6:00am-9:00am• Daytime 9:00am-3:30pm• Early fringe 3:30pm-5:30pm• Early news 5:30pm-7:00pm• Prime access 7:00pm-8:00pm• Prime 8:00pm-11:00pm (M-Sat)• 7:00pm-11:00pm (Sunday)• Late news11:00pm-11:30pm• Late fringe 11:30pm-1:00am• Late night1:00am-6:00am*Eastern Time

Top Ad Medium

National vs. Spot Advertising

• Network/National TV The advertising time purchased on network, cable, or syndicated programming with national coverage.

• Spot TVThe advertising time purchased from individual stations. Two major types: local and national.

National vs. Local Spot

• National SpotA form of broadcast advertising in which national advertisers, through their agency or buying service, select their target markets and stations to fit their marketing needs. The station usually has a contract with a rep firm to represent it to ad agencies.

• Local SpotThe advertising purchased in a market and aimed only at the audience in that market.

Top TV Ad Component

Types of Ads

• Commercial (Spot) :10, :15, :30, :60 units• SponsorshipThe purchase of all or part of

a television program by one advertiser.• PackageA combination of commercial

units offered as a group to an advertiser. A package is generally priced more attractively than the collective costs for each commercial unit. A package may also be called a rotation or scatter plan.

Units

More Ad Units

• BillboardA brief announcement, usually 3, 5 or 10 seconds in length, and usually earned by advertisers paying extra for the program being ordered.

• InfomercialA television commercial that is similar in appearance to a news program or talk show format, usually 30-minutes in length.

Pre-emptions / Make-goods

• Pre-emptionAn omission of an announcement from a previously confirmed broadcast schedule; the advertiser is either offered a make-good or takes a credit.

• Make-goodA spot offered by a station in place of a regularly scheduled announcement that did not run or was improperly aired.

Scheduling

• Run-Of-Schedule (ROS)Scheduling of commercials at any time of a station’s choosing.

• RotationScheduling of advertising in the same program or time period on different days each week (horizontal rotation) or throughout a particular day (vertical rotation) in order to increase advertising exposure to different prospects.

Scheduling

• Scatter PlanScheduling method where the advertiser's commercials are rotated among a broadly described group of programs and/or time periods.

• Road BlockingThe scheduling of a brand's commercial at approximately the same time on all networks, or all stations in a given market.

Audience Measurement

• Nielsen Media Research (NMR)A firm involved in local and national measurement of the TV audience; also involved in other research activities.

• SweepsFour-week periods (known as "sweep months") in which NSI surveys all television markets (generally during November, February, May, and July).

TV HHs• Television HouseholdsAn estimate of the

number of households that have one or more television sets.

• Designated Market Area (DMA)Represents an exclusive geographic area of counties in which the home market stations are estimated to have the largest quarter-hour audience share (as defined by Nielsen).

RANK Designated Market Area (DMA) TV Homes % of US1 New York 7,366,950 6.6162 Los Angeles 5,611,110 5.0393 Chicago 3,455,020 3.1034 Philadelphia 2,941,450 2.6425 San Francisco-Oak-San Jose 2,383,570 2.1416 Dallas-Ft. Worth 2,378,660 2.1367 Boston (Manchester) 2,372,030 2.1308 Washington, DC (Hagrstwn) 2,272,120 2.0419 Atlanta 2,205,510 1.981

10 Houston 1,982,120 1.780

26 Charlotte 1,045,240 0.939

29 Raleigh-Durham (Fayetvlle) 1,006,330 0.904

Nielsen Media Research Local Market Universe Estimates

Estimates as of January 1, 2007 and used throughout the 2006-2007 television season

Effective September 23, 2006

HUT / PUT

• Households Using Television (HUT)The percentage of all television households in a survey area with one or more sets in use during a specific time period.

• Persons Using Television (PUT)A measurement of the total number of people in the target audience who are watching television for five minutes or longer during an average quarter-hour. PUT is generally expressed as a percent.

HUT/PUT

Households Using Television (HUT) [or Persons Using Television (PUT)]:

The number of households with one or more TV sets turned on expressed as a percentage of the TV Household universe. In the example above, six of the ten households are viewing TV. The HUT would be 60 (6 / 10 x 100 = 60%).

Rating

• RatingA percentage of total households or population owning TVs who are tuned to a particular program or station at a specific time (e.g., a six rating for women 18-49 means 6 percent of all women 18-49 in the defined geographic area were viewing that station or program).

• Rating PointA value equal to one percent of a population or universe.

Rating

Rating (RTG or AA%):

The estimate of the size of a television audience relative to the total universe, expressed as a percentage. The estimated percent of all TV households or persons tuned to a specific station. In the example above, three of the 10 homes in the universe are tuned to channel 2. That translates to a 30 rating.

Share

• ShareAudience during the average minute of a program, expressed as a percentage of households using TV - computed by dividing average audience rating by households using TV.

Share

Share (SHR):

The percent of the Households Using Television (HUT) or Persons Using Television (PUT) which are tuned to a specific program or station at a specified time. Using the example above, channel 2 is being viewed in three of the six homes using television. That means it has a 50 share of audience.

Formulas

Formulas

• Share = Rating ÷ HUT

• Rating = Share x HUT

• HUT = Rating ÷ Share

Future of Audience Measurement

• Personal People Meter (PPM)Hardware currently being tested by Arbitron. The PPM is a pager-sized device that is worn by consumers throughout the day to automatically detect inaudible codes that radio and television broadcasters and cable networks embed in the audio portion of their programming.