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Lecture Advertising and promotion (2/e) – Chapter 11: Media choices: evaluating media options

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Chapter 11
Media choices: evaluating media
options

Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell

11-1


Learning objectives
1. To examine the structure of specific media
industries including broadcast, print, out-ofhome and cinema and the role of each media
channel in the IMC program.
2. To consider the advantages and limitations of
each media channel.
3. To explain how audiences are measured and
how rates are determined.
4. To consider future trends and how they will
influence the use of media channels in IMC
programs.

Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell

11-2


TV

Radio



Newspapers
Print

Broadcast

Magazines

Out-of-home

Advantages
and imitations

Media
choices

Media
buying

Promotional
products

Cinema

Branded
entertainment

Audience
measurement


Product
placement
and computer
games

Future
trends
Digital
impact
Social
media

Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell

11-3


Media engagement

Copyright 2012 McGraw-Hill Australia Pty Ltd
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11-4


Share of advertising expenditure
by main media: Australia

% share


Copyright 2012 McGraw-Hill Australia Pty Ltd
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11-5


Share of advertising expenditure
by main media: New Zealand

10.2

29.3
28.4

% share
Source: Advertising Standards, New Zealand, 2011

Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell

11-6


TV

Radio

Newspapers
Print


Broadcast

Magazines

Out-of-home

Advantages
and imitations

Media
choices

Media
buying

Promotional
products

Cinema

Branded
entertainment

Audience
measurement

Product
placement
and computer

games

Future
trends
Digital
impact
Social
media

Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell

11-7


Television penetration and reach
90%
90% of
of TV
TV households
households own
own VCR
VCR
68%
68% of
of TVs
TVs are
are digital
digital
Approx

Approx 13.5
13.5 million
million people
people watch
watch
TV
TV on
on any
any given
given day
day
The
The average
average Australian
Australian watches
watches
approx
approx 33 hours
hours of
of TV
TV per
per day
day

Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell

11-8



Television advantages
Creativity
Creativity and
and impact
impact

Coverage
Coverage and
and cost
cost effectiveness
effectiveness

Captivity
Captivity and
and attention
attention

Selectivity
Selectivity and
and flexibility
flexibility
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell

11-9


Television disadvantages
Fleeting
Fleeting

message
message
Limited
Limited
attention
attention
Zipping
Zipping

Cost
Cost
Low
Low
selectivity
selectivity

Negative
Negative
factors
factors

Clutter
Clutter

Zapping
Zapping
Negative
Negative
evaluation
evaluation


Distrust
Distrust

Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell

11-10


Top 10 network TV advertisers:
Australia 2009

Copyright 2012 McGraw-Hill Australia Pty Ltd
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11-11


Top 10 TV advertisers, New
Zealand 2009
Company/ Brand
Reckitt Benckiser NZ
Unilever Australasia

TV Spend
($millions)
37.16
32.54


BrandWorld 

26.36

NZ Lotteries Commission
Harvey Norman
L'Oreal
The Warehouse 

23.79
23.58
22.18
20.48

Progressive Enterprises 
NZ Transport Agency
Telecom Corp Of NZ 
Mitre 10 NZ

19.43
19.09
18.67
18.16

Source: Nielsen Media Research, New Zealand, AIS Data, 2009 

Copyright 2012 McGraw-Hill Australia Pty Ltd
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11-12



Foxtel advertising

Copyright 2012 McGraw-Hill Australia Pty Ltd
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11-13


Television formats: Australia
Public
Public broadcasters
broadcasters
Metropolitan:
Metropolitan: (FTA)
(FTA)

TV
TV
formats
formats

Regional:
Regional: (FTA)
(FTA)
Community
Community TV
TV
Subscription:

Subscription: (STV)
(STV)
Digital
Digital transmission
transmission

Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell

11-14


Television formats: New Zealand
Public
Public broadcaster
broadcaster (TVNZ)
(TVNZ)
Private
Private networks
networks

TV
TV
formats
formats

Pay
Pay television
television


Maori
Maori TV
TV
Regional
Regional and
and niche
niche
broadcasters
broadcasters
Copyright 2012 McGraw-Hill Australia Pty Ltd
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11-15


Buying TV advertising time
Spot
Spot
buying 
buying 

SponsorSponsorship
ship

Local:
Local: Commercials
Commercials shown
shown
on
on local

local stations
stations
National:
National: Spots
Spots purchased
purchased
across
across major
major networks
networks

Sponsor
Sponsor entire
entire program
program
Spot
Spot announcements
announcements
between
between programs
programs

Copyright 2012 McGraw-Hill Australia Pty Ltd
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11-16


TV dayparts


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11-17


Subscription TV: national report

Copyright 2012 McGraw-Hill Australia Pty Ltd
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11-18


Measuring the TV audience: key
measures
Program rating
Rating =

HH (or PPL) tuned to show
Total HH (or PPL)

Share of audience
Share =

HH (or PPL) tuned to show
HH (or PPL) using TV

Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell


11-19


Measuring the TV audience: key
measures (cont.)
Target audience ratings points
(TARPs)
Number of PPL in a target
audience reached by a media buy
TARP =

 x 100

Potential target audience for
media buy

Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell

11-20


The future of TV: new delivery
modes
Subscription
Subscription

Continued
Continued growth

growth of
of subscription
subscription TV
TV

Digital
Digital

Superior
Superior viewing
viewing experience
experience and
and
increased
increased variety
variety of
of promotional
promotional
opportunities
opportunities and
and audience
audience engagement
engagement

PVRs/VOD
PVRs/VOD

Personal
Personal video
video recorders

recorders enable
enable
recording
recording and
and storing
storing of
of TV
TV programs
programs for
for
subsequent
subsequent viewing
viewing

Infomercials
Infomercials

Interactive
Interactive TV
TV allows
allows audiences
audiences to
to
interact
interact with
with program
program in
in real
real time
time via

via
phone
phone or
or internet
internet connections
connections

Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell

11-21


Radio penetration and reach
261
261 Australian
Australian radio
radio stations
stations
(110
(110 AM
AM ++ 151
151 FM)
FM)
37
37 million
million radios
radios in
in use
use

89%
89% of
of households
households have
have 3+
3+ radios,
radios,
and
and 99
99 %
% of
of cars
cars have
have aa radio
radio
Radio
Radio reaches
reaches 61%
61% of
of all
all Australians
Australians
each
each day
day and
and 77%
77% every
every week
week
Commercial

Commercial breakfast
breakfast radio
radio attracts
attracts audiences
audiences
of
of over
over 6.6
6.6 million
million p.w.
p.w.
Copyright 2012 McGraw-Hill Australia Pty Ltd
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11-22


Radio advertising

Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell

11-23


Advantages and limitations of
radio
Advantages
Cost
Cost and

and efficiency
efficiency
Selectivity
Selectivity
Flexibility
Flexibility

Disadvantages
Creative
Creative limitations
limitations
Audience
Audience fragmentation
fragmentation
Chaotic
Chaotic buying
buying
Limited
Limited research
research data
data

Mental
Mental imagery
imagery

Limited
Limited listener
listener attention
attention


Integrated
Integrated marketing
marketing
opportunities
opportunities
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell

Clutter
Clutter

11-24


Commercial Radio Australia

Copyright 2012 McGraw-Hill Australia Pty Ltd
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11-25


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