CHAPTER 8 & 9

ADVERTISING
Q1: Discuss major changes in network television advertising during the last 20 years.
Commercially sponsored television began in 1941 with the issuance of the first commercial
television license by the FCC. In 25 years, television programming moved from domination by
three major networks to the 1970s and ’80s when independent stations sprung up with their own
programming. Cable television brought by master antenna systems to homes more than 50
channels. Today, broadband, and digital television delivery systems are continuing to change the
landscape and bringing interactivity for TV viewers. The competitive and technological changes
have fragmented the market and substantially driven down audience share figures of the long-
existing major networks. Program selection can be tailored to individual interests unlike before
when mass marketing was done. With advancement the medium will soon be communicating
more on a local, two-way basis.

In 1964 the first TV stations was introduced in Pakistan, leading to a drastic change in the
existing advertising practices. The new visual messaging services in black and white screen
seemed more attractive and effective source of communication. Then the color TV broadcast
came in giving a new touch in practices. After which new graphic technologies were used to
facilitate the limited time frame concepts. Hence 1998 – 2008 saw the rise of golden age
witnessed modern advertising and visual effects. Industry growth increased 500 times with
talents and manpower. After this animated effects and green screen came into play leading the
advertising medium into new possible direction.

Q2: Compare and contrast syndication and spot television buying

At companies would make a deal with a local broadcast station which lead to greater expense for
bigger companies so instead of targeting geographically they would buy time from a local market
of broadcaster. These local time slot purchases are known as spot television. 

Syndication companies approached local stations an offer them that they will provide a show to
the station at no cost in exchange for available local time slots. These programs have national
pre-sold commercials.

Q3: Discuss the relationship between networks and their affiliates.

Networks are comprised of local stations responsible for carrying out network programming.
The affiliation is maintained by network when they share their advertising revenues from
national advertisers with the local stations which is called compensation, for carrying a particular
program. To carry the designation as an affiliate networks will require the local station to carry a
minimum number of its program offerings. Local stations are now considering opting for
alternatives like syndicated shows and privately produced programs.

Q4: Describe the up-front television buying for prime time.

Up-front means purchasing commercial time months before the actual program showings. Those
programs include popular shows and new offerings. The advertisers are presented the lineups of
the show which gives them a preview of the coming up show and where they can place their
Ads.

Q5: Compare and contrast cable networks with broadcast networks.

Broadcast network program offerings have traditionally appealed to mass markets. This has
worked well, particularly in news, sporting events, and some entertainment offerings. The advent
of a host of cable networks, however, has fragmented the market, appealing to a wide variety of
special interests (24-hour news and weather, religion, Disney, made-for-cable TV movies, home
and garden, etc.). And the technologically improved cable television delivery systems are
making available 200 or more channels to viewers. National advertisers are now turning their
attention and ad dollars to cable TV offerings and cutting back on the traditional mass market of
the broadcast networks. The broadcast networks, however, seem to be holding their own; but
must counter this new competition in creative ways.
Q6: Define the following terms: 1-Rating, 2- Share of Audience, 3-pople ratings, 4- TVQ
ratings, 5-Clutter
Rating
A point system measurement of the percentage of TV households in a market reached by
television programs, a percent of the potential market.
Share of audience
A point system measurement of the percentage of TV households in a market, actually using a
TV, and tuned into a particular program.
People ratings
A. C. Neilson attaches a “people meter” to 9,000 household TV sets, with buttons for each
person (or visitor) in that home; measuring program viewing habits in what amounts to a “diary”
of programs watched.
TVQ ratings
Called “Q” reports, this is the best known “qualitative” research service, which compiles a
popularity survey that ranks program familiarity and most favorite shows.
Clutter
Clutter is the term applied to the “viewer” perceived irritation with the number of commercials
competing for their attention. Networks have increased the percent of viewing time allocated to
commercials, increasing audience exposure. In addition, advertisers have turned from the older
60-second commercials to 10- and 30-second commercials, creating more numbers of
advertisements and the illusion that more program time has been given away to marketer hype.
Q7: What is the major disadvantage of radio for most advertisers?
Lack of “visual” element is the major disadvantage of radio. It takes the creative touch of a
copywriter to create mental pictures with words, using music, jingles, sound effects and other
appropriate attention getting devices.
Q8: What are the primary advantages of radio to advertisers?
Radio is an individual, one-to-one medium that can be tailored to the target market. It reaches
most of the population several hours per day. It tends to reach light users of other media and
works well with other media to increase reach and frequency. In addition, radio is a mobile
medium, following the listener from the den to the kitchen, and from home to work and back
again in the automobile. In fact, much of radio listening takes place out-of-home. Radio delivers
consistent listening patterns; it does not experience summer audience drop-off like television.
Radio also cannot be “muted” as with television commercials and is well integrated in with the
programming. Radio is also the last medium that a prospective consumer is exposed to just prior
to shopping. Radio is a very low-cost medium, delivering audiences at a CPM level below that of
virtually any other medium. With relatively short production deadlines and inexpensive creative
techniques, radio offers advertisers both immediacy and flexibility.
Q9: What is spot radio?
Spot radio is the most used form of paid-for-advertising on Commercial Radio. Spot airtime can
be bought across different day parts and days of the week depending on the objectives of your
campaign. It is suitable for medium to large organizations and worth considering if your
audience does indeed listen to the radio.
Q10: What is the role of radio networks?
Radio networks serve as the lifeblood of emergency communication. They also provide jobs and
play a day-to-day role in the lives of the communities. Local radio is most important to local
communities for more than just emergency announcements and communication during disasters
Q11: Who are the listeners of AM radio? What do they listen to?
AM signals travel much further than FM (and not everyone pays for satellite), so those who are
out in the middle of nowhere, AM is the best option for them to listen to the radio. They can
listen to the news, weather, and programs.

Q12: Where do most advertisers obtain radio audience information?

 The major sources of local syndicated audience information and the dominant company in radio
research is Arbitron Inc., which provides audience data through its Arbitron Radio division.
Radio audiences are measured in over 280 local markets through listener diaries. In addition,
Arbitron is now collecting webcast audience information.  The primary source of radio national
network ratings is the Radio’s All-Dimension Audience Research (RADAR) report, also a
service of Arbitron. 

Q13: What is the difference between an AQH Rating and a Cume rating?
AQH stands for average quarter-hour.  The AQH share is calculated by averaging all the quarter-
hours in each daypart and determines what portion of the average radio audience is listening to a
particular station. The cume statistic estimates the number or percentage of different people who
tune into a given radio station during several quarter-hours or dayparts.
Q14: Define the following: Drivetime, Satellite radio, HD Radio.

Drivetime
Drive-time periods are when the number of radio listeners in this class is at its peak and, thus,
commercial radio can generate the most revenue from advertising. Drive time usually coincides
with rush hour.

Satellite Radio

Satellite radio is defined as a satellite broadcasting service. The satellite's signals

are broadcast nationwide, across a much wider geographical area than terrestrial radio stations,
and the service is primarily intended for the occupants of motor vehicles. It is available by
subscription, mostly commercial free, and offers subscribers more stations and a wider variety of
programming options than terrestrial radio.

HD Radio

HD Radio (HDR) is a trademarked term for the in-band on-channel (IBOC) digital

radio technology used by AM and FM radio stations mostly in the United States, Canada, and
Mexico, with a few implementations outside North America. The system transmits
additional digital data associated with an existing radio station's standard analog signals,
rebroadcasting the same signal in a digital format with less noise. The digital data may also
include up to three additional digital radio signals, which can be used to broadcast other stations
within the same frequency allocation.