Bus 50 Advertising for Small Business
Class Session #2

Television

Television is everywhere: in our living rooms, bedrooms, kitchens, cars, stores, classrooms, the gas station, health spas, on our computer screens, ...everywhere.

While Television has much in common with Radio as a broadcast medium, they are very different in usage habits, cost, audience, audience measures, buying and scheduling patterns and so on.

Television uses sight and sound to convey the message. This combination of sensory data allows a great deal of emotion to be generated. However, the objective is to deliver the message, to everyone viewing the same ad. Often emotion can help get attention and reinforce the message. Often the emotion and ad agency creativity can get attention but obscure the message.

ally truck | ally bike| Comcast Tiger | Yul Brenner | Monks | Referee

To understand how to schedule and use television and other media for effective advertising, we should begin by looking at the audiences and their usage habits.

Audience habits

The U.S. Population is currently at 307,341,245 people according to the U.S. Census Bureau's population clock. http://www.census.gov/ With the world population at 6,781,619,251 (billion), the U.S. is about 4.65% of the world's people.

The U.S. population lives in 104.7 million households (HH's), with an average of 2.62 people per house and with 25.5% of the households being single resident. (2000 census http://www.census.gov/statab/www/part1.htm) What is it Now?)

Television Audience Habits:

Television Sets and Family Demographics

  • 97.6% of all HH's have at least one television (102.2 television hh's out of 104.7 hh's) (only 9% of HH's had televisions in the 1950's)
  • 76% have more than one television in the HH
  • 76% of HH's have cable television http://www.nab.org/television/
  • 22% have four or more television sets in their house
  • The average number of sets is about 2.36 per HH
  • 87% have remote controls
  • For Comparison, about 93% of HH's have a telephone, and 82% a VCR
  • For families with children 2-17 years old: 97 per cent have a VCR, 70 per cent have a computer, 68 percent have video game equipment, 52 per cent have online access, and 42 per cent have a newspaper subscription
  • 86% have a television in there bedroom
  • In the bedrooms of children between 8 and 16 years old: 57 per cent have a television set; 39 per cent have video game equipment; 36 per cent have cable service; 32 per cent have a telephone, 30 per cent have a VCR; 20 per cent have a computer; and 11 per cent have access to the Internet
  • Low-income families (income of less than 30,000 per year) are much less likely to have computers, Internet access, or newspaper subscriptions compared to middle income ($30,000-$75,000 per year) and high income (over $75,000 per year) families. They are almost equally as likely to have a video game system. Low-income families are more likely to have children with television sets in their bedroom.

Viewership Habits
(Nielsenwite: Nielsen’s Anywhere Anytime Media Measurement blog May 20, 2009)

  • The average American watches approximately 153 hours of TV every month at home, a 1.2% increase from last year.
  • The 131 million Americans who watch video on the Internet watch on average about 3 hours of video online each month at home and work.
  • The 13.4 million Americans who watch video on mobile phones watch on average about 3 ½ hours of mobile video each month.
  • The average HH watches 55+ hours of tv per week; 7.3 hours/day
  • The average person watches 4-5 hours per day with kids being generally the least at 3.1 and people over 55 years old at 5.2 hours per day
  • Approximately 2/3 of the audience leave the room at some point during commercials
  • Approximately 25% of the viewers watch the screen at any particular time during commercials
  • 73% say they "channel surf, of "graze, watching more than one show at once.
  • According to the A.C. Nielsen Co. 2009, the average American watches more than 4 hours of TV each day (or 28 hours/week, or 2 months of nonstop TV-watching per year). In a 65-year life, that person will have spent 9 years glued to the tube.?
  • More info A2/M2 Three Screen Report | Sourcebook for Teaching Science 2007

Media Description

Television Buying & Scheduling

  Percent of Commercials
Length of Commercials in seconds 1980' 1990's
10
0.7% 1.0%
15
0.0% 33.4%
20
0.0% 1.4%
30
94.6% 60.1%
45
2.7% 1.0%
>90
0.1% 2.3%
  100% 100%
  • Standard length is 30 seconds
  • length ranges from 10 seconds to infomercial
  • cost per insertion ranges from $10-$1,000,000 per 30 second ad, once (Super Bowl is up to as much as 2.1 million for 30 seconds)

TV1 | TV2| TV3 | TV4 | TV5 | TV6 | TV7 | TV8 | TV9 | TV10

Daypart
Cost of 30 second Commercial
Prime Time Network $70,000-140,000
Daytime $7,000-20,000
Evening News $$14,000-40,000
Late Evening $$8,000-30,000
Saturday Mornings
(Kids Shows)
$$7,000-24,000
  • overall budget is high, cost/person about 1/2 cent, CPM = $5-15
  • Ad Rates are based upon:
    • Program's Viewership size by Household (HH)
    • Scarcity of media space
    • Rates are set seasonally by Sweeps Weeks Ratings for Networks and less so for local stations by Nielson Ratings services
      U.S.A. Today's weekly Nielsen report
      Neilson
  • 1 to 6 months lead time
  • can buy exact time & date per show
  • seasonal, 3rd quarter lowest cost, 4th quarter highest cost
  • Dayparts - aka Time periods:
    • Early Morning: 6 am - 9 am
    • Daytime: 9 am - 4 pm
    • Early Fringe: 4 pm - 7 pm
    • Prime Access: 7 pm - 8 pm (6 pm - 7 pm Sundays)
    • Primetime: 8 pm - 11 pm (7-10 pm in midwest)
    • Late Fringe: 11 pm - 1 am
    • ROS: a mix of dayparts that id defined differently by each station
  • special rates
    • Good customer discount - save 10-40%
    • Guarantee - ratings or receive makeups/credit
    • Pre-emptible - bumped if outbid
    • Opportunity buy - low rate, scheduled as can be fit in

Production - Forms of Production Page 1 | Page 2

Scripts - Text | Detail | Storyboard | Blank Storyboard | Video Directions

Local Media

Greater Bay Area Media
http://www.baywideweb.com/Bay-Area-Television-Stations.shtml

Santa Cruz and Monterrey Bay Areas
http://www.cruzio.com/local_info/news_media.html

The Santa Cruz Media List
http://members.cruzio.com/~spitzer/mediaList.html

Network System

Syndicator System
  • Producer of Programs
  • Network Wholesaler
  • Local Retail Affiliates
  • Viewers
  • Producer of Programs
  • Syndication Wholesaler
  • Local Retail Independents
  • Viewer
Cable & Satellite System Cable & Satellite Providers in the Bay Area
  • Producers of Cable Programs & Network Wholesalers
  • Regional Cable/Sat Wholesalers
  • Local Sat/Cable Retailers
  • Viewers

Gill, Sonic, BAI, TCI, United Artists, AT&T, Charter, Comcast...

Dish, DirectTv...

Summary of Insertion Points:  

National

  • Networks
  • Producers of Cable Programs

Local

  • Local Affiliates - some space by F.C.C. regulation
  • Independents - all of their space
  • Regional Cable Wholesalers - may sell local space

Regional

  • Regional Cable Wholesalers
  • Network Regional Feeds