10

Broadcast Media

CHAPTER OBJECTIVES
To examine the structure of the television and radio industries
and the role of each medium in the advertising program.
To consider the strengths and limitations of TV and radio as
advertising media.
To explain how advertising time is purchased for television and
radio media, how audiences are measured, and how rates are
determined.

A Live Ad for Nicoderm

To commemorate the 50th anniversary of CBC tel-

A creative theme of a journey back in time to

evision, the national network envisioned a

the dawn of television exactly 50 years ago cap-

program entitled Live to Air that would be broad-

tured the essence of the products benefits and fit

cast livejust like television when it first aired in

the theme of the television show like a glove. A

Canada so many years ago. Jumping on the

1952 couple, visited by a Nicoderm doctor from

opportunity, Pharmacia Consumer Healthcares

the future, learned about the dangers of smoking.

[now

Although a serious message, the ad contained

Pfizer]

smoking

cessation

product,

Nicoderm, along with their

music, dancing, and laugh-

agency Le Groupe TMC,

ter

visualized a live television

light-hearted.

commercial associated with

a

live

television

to

keep

the

tone

Pharmacia supported the

show.

live ad with additional com-

Despite the CBC changing

munication to maximize

their plans for a live show,

exposure. Feature articles

Pharmacia pursued the idea

ran in various newspaper

to a successful completion

publications.

as it executed the first

notice of the ad occurred on

Canadian live television com-

a TV spot and an ad in TV

mercial since the 1950s.

Advanced

Guide. A contest also sparked interest and gar-

The original idea called for two 60-second

nered stronger participation in the campaign.

spots during the live show, however, that all

Although specific success measures never materi-

changed when the television show moved to a

alized publicly, Pharmacia claimed success and

pre-recorded format. Instead, Pharmacia and its

received an award for outstanding creativity in

agency saw an opportunity to develop the

media usage for their risky adventure.

media opportunity further by running a full twominute live commercial for a more resounding
impact that they hoped would lead to stronger
brand recall.

Source: Tiffany St-Germain, Five, Four, Three, TwoYoure Live!

Marketing Magazine, February 24, 2003.

Part 4

Deliver the Message

TV has virtually saturated households throughout Canada and most other countries
and has become a mainstay in the lives of most people. The average Canadian
household watches almost six hours of TV a day, and the average person (age 2+)
watches about 3.5 hours of TV per day.1 The large numbers of people who watch television are important to the TV networks and stations because they can sell time on
these programs to marketers who want to reach that audience with their advertising
messages. Moreover, the qualities that make TV a great medium for news and entertainment also encourage creative ads that can have a strong impact on customers.
Radio is also an integral part of our lives. Many of us wake up to clock radios in
the morning and rely on radio to inform and/or entertain us while we drive to work
or school. For many people, radio is a constant companion in their cars, at home,
even at work. The average Canadian listens to the radio about three hours each day.2
Like TV viewers, radio listeners are an important audience for marketers.
In this chapter, we examine TV and radio media, including the general characteristics of each as well as their specific strengths and limitations. We examine how
advertisers use TV and radio as part of their advertising and media strategies, how
they buy TV and radio time, and how audiences are measured and evaluated for
each medium. We also examine the factors that are changing the role of TV and radio
as advertising media.

TELEVISION

284

It has often been said that television is the ideal advertising medium. Its ability to
combine visual images, sound, motion, and colour presents the advertiser with the
opportunity to develop the most creative and imaginative appeals of any medium.
However, TV does have certain characteristics that limit or even prevent its use by
many advertisers.

STRENGTHS OF TELEVISION
TV has numerous strengths compared to other media, including creativity, target
audience coverage, cost efficiency, attention, scheduling flexibility, geographic
coverage, reach, frequency, and acceptable image.

Creativity for Cognitive and Emotional Responses Perhaps the greatest advantage of
TV is the opportunity it provides for presenting the advertising message. The interaction of sight, sound, and motion offers tremendous creative flexibility and makes
possible dramatic, lifelike representations of products and services. TV commercials
can be used to convey a mood or image for a brand as well as to develop emotional
or entertaining appeals that help make a dull product appear interesting. The overall impact of TVs characteristics provides unlimited options for generating optimal
cognitive and emotional responses to highly imaginative ads.
Television is also an excellent medium for demonstrating a product or service.
For example, print ads are effective for showing a car and communicating information regarding its features, but only a TV commercial can put you in the drivers seat
and give you the sense of actually driving, as shown by the Porsche commercial in
Exhibit 101.

Target Audience Coverage Television advertising makes it possible to reach large

audiences. Nearly everyone, regardless of age, sex, income, or educational level,
watches at least some TV. During prime time (7:00 p.m. to 11:00 p.m.), an average of
40 percent of adults will tune in (see Figure 101). Most people do so on a regular
basis since 99 percent of all Canadian households own a TV, and 57 percent have
more than one. Marketers selling products and services that appeal to broad target
audiences find that TV lets them reach mass markets.

Chapter 10

Broadcast Media

Exhibit 101 This TV commercial helps viewers feel the sensation of driving a sports car

Cost Efficiency Compared to many other media, the cost to reach individuals by television is reasonably affordable. For example, one estimate is that the average cost
per thousand (cpm) to reach English-speaking women 18 to 49 is about $18.3 Because
of its ability to reach large audiences in a cost-efficient manner, TV is a popular
medium among companies selling mass-consumption products. Companies with
widespread distribution and availability of their products and services use TV to
reach the mass market and deliver their advertising messages at a very low cost per
thousand. Television has become indispensable to large consumer package-goods
companies, carmakers, and major retailers. Companies like Procter & Gamble and
Coca-Cola spend a high percentage of their media advertising budget on television.
285
Attention Television is basically intrusive in that commercials impose themselves
on viewers as they watch their favourite programs. Unless we make a special effort
to avoid commercials, most of us are exposed to thousands of them each year. This
seemingly continuous exposure implies that viewers devote some attention (i.e.,
selective attention) to many advertising messages. As discussed in Chapter 3, the
low-involvement nature of consumer learning and response processes may mean TV
ads have an effect on consumers simply through heavy repetition and exposure to
catchy slogans and jingles.

100%

FIGURE 101
Percent distribution of
weekly per-capita hours
by daypart: total Canada

90%
80%
70%

Sun 6:00 am7:00 pm

Sat 6:00 am7:00 pm
MonSun 11:00 pm2:00 am
MonSun 7:00 am11:00 pm
MonFri 4:30 pm7:00 pm
MonFri 6:00 am4:30 pm

60%
50%
40%
30%
20%
10%
0%
Dist % of 2+
Weekly Hrs
per Daypart

18+

F18+

M18+ 1217

211

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Deliver the Message

Scheduling Flexibility Television has often been criticized for being a nonselective
medium, since it is difficult to reach a precisely defined target audience through the
use of TV advertising. But some selectivity is possible due to variations in the composition of audiences as a result of broadcast time and program content. For
example, Saturday morning TV caters to children; Saturday and Sunday afternoon
programs are geared to the sports-oriented male; and weekday daytime shows
appeal heavily to homemakers. With the growth of specialty channels, advertisers
refine their coverage further by appealing to groups with specific interests such as
sports, news, history, the arts, or music.
Geographic Coverage Advertisers can also adjust their media strategies to take
advantage of different geographic markets through spot ads in specific market areas.
Ads can be scheduled to run repeatedly in more favourable markets. Alternatively,
advertisers can obtain national coverage or regional coverage depending upon their
marketing objectives.

Reach Television viewing is a closely monitored activity such that the size of the audience for a television program is known fairly quickly. Placement of TV ads on certain
combinations of shows allows an advertiser to reach as many in their target audience
as they feel necessary. Availability of airtime and amount of budget are the main constraints from allowing an advertiser to reach as large an audience as possible.
Frequency Scheduling television permits frequency in concentrated blocks throughout a program, evening, week, month, or season. Heightened frequency may be
necessary for a new product launch or an effort to obtain switching while lower levels of frequency may be feasible for advertisers desiring more continuous exposure.

286

Media Image Given the prominence television has with its mass-market characteristic,
TV advertising often carries a high degree of acceptability. Television is usually viewed
favourably due to the higher costs of placement and production that demonstrates a
level of acceptance or establishment for those who advertise with this medium. In fact,
Figure 94 of the previous chapter shows that the degree of acceptability of advertising
on television is at a remarkable 72-percent acceptance level.

LIMITATIONS OF TELEVISION
Although television is unsurpassed from a creative perspective, the medium has
several limitations that preclude its use by many advertisers. These problems
include high absolute costs, low target audience selectivity, short processing time,
extensive clutter, high selective exposure, low involvement, and distrustful image.

Absolute Cost Despite the efficiency of TV in reaching large audiences, it is an

expensive medium in which to advertise. The high cost of TV stems not only from
the expense of buying airtime but also from the costs of producing a quality commercial. Production costs for a national brand 30-second spot average nearly
$300,000 and can reach over a million for more elaborate commercials.4 More advertisers are using media-driven creative strategies that require production of a variety
of commercials, which drive up their costs. Even local ads can be expensive to produce and often are not of high quality. The high costs of producing and airing
commercials often price small- and medium-size advertisers out of the market.

Target Audience Selectivity Some selectivity is available in television through

scheduling, but advertisers who are seeking a very specific, often small, target audience find the coverage of TV often extends beyond their market, reducing its cost
effectiveness (as discussed in Chapter 9). Geographic selectivity can be a problem

Chapter 10

Broadcast Media

for local advertisers such as retailers, since a station bases its rates on the total market area it reaches. For example, stations in Ottawa reach viewers in western Quebec
and eastern Ontario. The small company whose market is limited to the immediate
Ottawa area may find TV an inefficient media buy, since the stations cover a larger
geographic area than the merchants trade area.
Audience selectivity is improving as advertisers target certain groups of consumers through the type of program or day and/or time when they choose to
advertise. However, TV still does not offer as much audience selectivity as radio,
magazines, newspapers, or direct mail for reaching precise segments of the market.

Amount of Processing Time TV commercials usually last only 30 or 15 seconds and

leave nothing tangible for the viewer to examine or consider. Commercials have
become shorter and shorter as the demand for a limited amount of broadcast time has
intensified and advertisers try to get more impressions from their media budgets.
An important factor in the decline in commercial length has been the spiraling
inflation in media costs over the past two decades. Many advertisers see shorter
commercials as the only way to keep their media costs in line. A 15-second spot typically sells for about two-thirds the price of a 30-second spot. By using 15-second
commercials, advertisers think they can run additional spots to reinforce the message or reach a larger audience. Some advertisers believe shorter commercials can
deliver a message just as effectively as longer spots for much less money.
Clutter The problems of short messages are compounded by the fact that the advertisers message is only one of many spots and other nonprogramming material seen
during a commercial break, so it may have trouble being noticed. One of advertisers
greatest concerns with TV advertising is the potential decline in effectiveness
because of such clutter.
The next time you watch TV, count the number of commercials, promotions for
the news or upcoming programs, or public service announcements that appear during a station break and you will appreciate why clutter is a major concern. In the
USA, a recent study sponsored by the advertising industry found a record level of
clutter during prime-time television broadcasts on the major networks. The study
analyzed one week of broadcasts during May and November of 1999 and found that
the four major networks averaged 16 minutes and 43 seconds of nonprogramming
content. The hour-long police drama NYPD Blue had the most clutter of any primetime show with one episode having nearly 18 minutes of clutter.5 With all of these
messages competing for our attention, it is easy to understand why the viewer comes
away confused or even annoyed and unable to remember or properly identify the
product or service advertised.
One cause of clutter is the use of shorter commercials and split-30s, 30-second
spots in which the advertiser promotes two different products with separate messages. Clutter also results when the networks and individual stations run
promotional announcements for their shows, make more time available for commercials, and redistribute time to popular programs. The Canadian Radio-television
and Telecommunications Commission (CRTC), which regulates television only permits 12 minutes of commercials per hour. However, when simulcast Canadian
commercials are run, there is extra time since U.S. TV stations often show more
than 12 minutes of commercials. To fill this time, Canadian stations run ads for
other shows, public service announcements, or news/entertainment vignettes.
Thus, Canadian viewers experience a different kind of clutter than their American
counterparts.
Selective Exposure When advertisers buy time on a TV program, they are not purchasing guaranteed exposure but rather the opportunity to communicate a message
to large numbers of consumers. But there is increasing evidence that the size of the

287

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288

Deliver the Message

viewing audience shrinks during a commercial break. People leave the room to go
to the bathroom or to get something to eat or drink, or they are distracted in some
other way during commercials, or they decide to change the channel. Studies of consumers viewing habits found that as much as a third of program audiences may be
lost during commercial breaks.6 Thus, for a variety of reasons viewers engage in
selective exposure to television commercials. Advertisers are very concerned with
zapping and zipping.
Zapping refers to changing channels to avoid commercials. An observational
study conducted by John Cronin found as much as a third of program audiences may
be lost to electronic zapping when commercials appear.7 The Nielsen study found
that most commercial zapping occurs at the beginning and, to a lesser extent, the
end of a program. Zapping at these points is likely to occur because commercial
breaks are so long and predictable. Zapping has also been fueled by the emergence
of 24-hour continuous-format programming on cable channels. Viewers can switch
over for a few news headlines, sports scores, or a music video and then switch back
to the program. Research shows that young adults zap more than older adults, and
men are more likely to zap than women.8
How to inhibit zapping? The networks use certain tactics to hold viewers attention, such as previews of the next weeks show or short closing scenes at the end of
a program. Some programs start with action sequences before the opening credits
and commercials. Some advertisers believe that producing different executions of a
campaign theme is one way to maintain viewers attention. Others think the ultimate way to zap-proof commercials is to produce creative advertising messages that
will attract and hold viewers attention. However, this is easier said than done, as
many consumers just do not want to watch commercials. As more viewers gain
access to remote controls and the number of channels increases, the zapping problem is likely to continue.
A recent study on zapping among viewers of the five major commercial channels
in the Netherlands was conducted by Lex van Meurs.9 He found that during commercial breaks, 29 percent of the audience stopped watching television or switched
away to another channel. This loss of viewers was partially compensated for by an
average increase of 7 percent of new viewers who zapped in from another channel.
The study also found that people stop viewing TV during a commercial break
because they have a reason to stop watching television altogether or they want to
find out what is being shown on other channels. The number of people zapping in
and out during breaks was not caused by the type of products being advertised or by
specific characteristics of the commercials. IMC Perspective 101 shows how new
technology may change how we view television in the future.
Based on your own behaviour, you can surmise that there are other ways we can
try to minimize our contact with persuasive messages. In a representative sample of
Canadians on what they do to limit their exposure to television, radio, and online
advertising it shows a number of alternatives. Figure 102 illustrates the frequencies
of those efforts that most pertain to television. Canadians engage in considerable
zappingat 61 percent or about double the amount of zapping cited in previous
studies. Actual amount of zapping versus perceived amount of zapping may account
for this difference. This would suggest that peoples attitude towards an ad and their
actual behaviour towards it are dramatically at odds. Alternatively, the different statistics may indicate a trend to increased zapping or more technological usage on the
part of Canadians to avoid ads.10
The increased penetration of VCRs, remote controls, and other automatic devices
have made it easier for TV viewers to avoid commercial messages. Zipping occurs
when customers fast-forward through commercials as they play back a previously
recorded program. A study by Nielsen Media Research found that while 80 percent
of recorded shows are actually played back, viewers zip past more than half of the
commercials.11 Another study found that most viewers fully or partially zipped commercials when watching a prerecorded program.12

Chapter 10

Broadcast Media

FIGURE 102

Age
Total#8224 1519
(n=1285) (n=120)*
Change TV channels

61

83

2029

3039

4049

50+

How Canadians avoid

television advertising

(n=204)* (n=246)* (n=270)* (n=445)*

79

66

64

43

Use mute button

18

14

14

29

Leave room/walk away

14

13

17

18

Do something else

12

11

13

15

Turn it off

10

Fast forward through ads

Get food/drink

10

Do household task

Ignore it

Read something

Watch TV channels that don't have ads

Turn down volume

Other/don't know

Source: The Strategic Counsel, Toronto.

*n = the number of respondents.
Note: Total does not equal 100 percent because more than one response was accepted.

Involvement The cumulative effect of the varied television characteristics generally

implies that it is a low-involvement medium. While its invasiveness can expose the
message to us readily and perhaps hold our attention with significant creative strategies and tactics, the relative short processing time and clutter makes for less
effective media for an advertiser to significantly persuade a target audience.

289

Media Image To many critics of advertising, TV commercials personify everything

that is wrong with the industry. Critics often single out TV commercials because of their
pervasiveness and the intrusive nature of the medium. Consumers are seen as defenseless against the barrage of TV ads, since they cannot control the transmission of the
message and what appears on their screens. Viewers dislike TV advertising when they
believe it is offensive, uninformative, or shown too frequently or when they do not like
its content.13 Studies have shown that of the various forms of advertising, distrust is
generally the highest for TV commercials.14 Also, concern has been raised about the
effects of TV advertising on specific groups, such as children or the elderly.15
A number of options are available to advertisers that choose to use
UYING ELEVISION
TV as part of their media mix. They can purchase ads on shows that
are shown across the national or regional network versus a local spot
DVERTISING IME
announcement in a few cities. They can sponsor an entire program.
They can purchase time in a variety of program formats that appeal
to various types and sizes of audiences. With the growth of new television services,
advertisers decide the degree to which they want to advertise on specialty channels.
We explore these four decisions in this section.
The purchase of TV advertising time is a highly specialized phase of the advertising business, particularly for large companies spending huge sums of money.
Large advertisers that do a lot of TV advertising generally use agency media specialists or specialized media buying services to arrange the media schedule and
purchase TV time. Consequently, we conclude this section with a discussion on

B
A

Part 4

I M C

Deliver the Message

101

P E R S P E C T I V E

The Future of Television Viewing

How much would you be willing
to pay to never have to watch
another TV commercial, be
able to automatically record
shows with your favourite
actor, or record more than one
show at a time? How about
being able to leave the room in
the middle of an exciting
hockey game and, when you
return, being able to resume
watching the game from the
point where you left off? These capabilities are no longer
the dreams of TV viewers. They are now the reality thanks
to a new consumer electronic device called personal video
recorders (PVR). And while it may be the answer to TV
viewers' dreams many argue that PVRs may be the television and advertising industries' worst nightmare.
PVRs digitally record television shows and save them on
a massive multi-gigabyte internal hard drive that can hold
up to 55 hours of programming. Consumers can also download program schedules that pop up on the screen, and,
with some simple programming through a remote control,
consumers can click on shows they want to watch. PVRs
also allow users to rewind or pause in the middle of a live
broadcast while it keeps recording, resume watching from
the point where they stopped, and then skip ahead to catch
up on the live broadcast. Anticipated future versions of the
technology will automatically skip past commercials.
According to Bell ExpressVu's director of communications, It really does change the way you watch TV. The
technology emerged in Canada in 2001 and although
demand for PVR is at a relatively low 1 percent of all
Canadian households, many believe the penetration is set

to take off once prices become

more affordable for the average consumer in the next three
to five years. In the U.S., similar
penetration of 1 percent of
households occurred over the
past few years with two main
brands, TiVo and Sonicblue,
dominating.
Naturally, broadcasters are
concerned as advertisers may
question the effectiveness of
placing commercials in established prime-time slots.
However, others suggest that the technology permits an
opportunity for advertisers to innovate beyond the limitations of older technology. For example, for an episode of the
show 24, Ford in the U.S. placed new vehicles in the first
episode, sponsored the episode so it was commercial-free,
and added a two-minute Ford film that had a 24-like storyline. North of the border, Canadian actor and star of 24,
Kiefer Sutherland, performed the voice-over for the new
Ford F-Series commercials. Additional exclusive sponsorship arrangements heightened Ford's exposure associated
with the show. While the future of television viewing is open
to prediction at this point in time, one expert believes that
the typical 30-second commercial and conventional TV will
be a key part of most TV campaigns, but they will be augmented with additional ad-like entertainment, product
placement, and customized content.
Source: Bruce Neve, Better, Smarter, Stronger, Marketing
Magazine, February 16, 2004; Paul-Mark Rendon, Zapping
Power, Marketing Magazine, May 5, 2003.

measuring TV audiences since it is a critical input for TV decisions. Figure 103

illustrates how the percentage of hours tuned to various types of television stations
has changed over time.

NETWORK, SPOT, SPONSORSHIP

290

A basic decision for all advertisers is allocating their TV media budget to network versus local or spot announcements. Most national advertisers use network schedules to
provide national coverage and supplement this with regional or local spot purchases to
reach markets where additional coverage is desired.

Broadcast Media

Chapter 10

FIGURE 103

FALL
Station

1999

2000

2001

2002

2003

Conventional Station
CBC
CBC affiliates

4.6
1.1

4.8
1

4.4
0.9

4.5
0.7

4.7
0.7

CBC TOTAL

5.7

5.8

5.4

5.3

5.6

CTV

14.8

14.5

11.3

12.2

11.9

Independent English
Global

9.1
5.8

7.7
6.4

7.6
7.7

8
7.9

9.4
7.5

Radio Canada
Radio Canada affiliates

4.6
1.3

4.0
1.1

4.1
0.9

3.4
0.8

2.7
0.6

RADIO CANADA TOTAL

5.9

5.1

5.1

4.2

3.3

TVA
Tl-Qubec
Quatre Saisons

9.7
0.6
3.1

9.3
0.5
3.5

8.7
0.6
3.4

8.7
0.7
3.5

8.2
0.7
4.1

Total Cdn. Convent

54.7

52.8

49.8

50.4

50.7

U.S. Conventional TV
ABC affiliates
NBC affiliates
CBS affiliates
FOX affiliates
PBS
Independent/UPN/WB

2.4
2.4
2.8
2.3
1.4
0.9

2.4
2.2
2.4
2.4
1.6
0.8

2.4
2.3
2.1
2.5
1.4
1.5

2.1
2.0
2.1
2.0
1.1
1.6

1.9
2.1
2.2
2.0
1.1
1.4

Total U.S. Convent

12.2

11.8

12.2

10.9

10.7

Cable
International
Provincial
VCR

0.3
0.1
1.2
5.2

0.3
0.1
1.2
4.6

0.3
0.1
1.2
4.2

0.4

0.3

1.4
4.5

1.2
4.5

CDN. Specialty/Pay
U.S. Specialty/Pay
Others

16.7
7.7
2.1

19.2
9
1

21.4
9.2
1.4

22.8
8
1.4

23.8
7.2
1.6

Total Hours (Millions)

659.6

644.3

642.9

659.4

667.4

Network Advertising A common way advertisers disseminate their messages is by

purchasing airtime from a television network. A network assembles a series of affiliated local TV stations, or affiliates, to which it supplies programming and services.
These affiliates, most of which are independently owned, contractually agree to preempt time during specified hours for programming provided by the networks and to
carry the national advertising within the program. The networks share the advertising revenue they receive during these time periods with the affiliates. The affiliates
are also free to sell commercial time in non-network periods and during station
breaks in the pre-empted periods to both national and local advertisers.
Canadas television industry features three national networks. The Canadian
Broadcasting Corporation (CBC) is a Crown corporation of the federal government of
Canada. Its full network includes 34 stations, including 19 private affiliates that
reach 99 percent of English-language homes. Radio-Canada is the CBC cousin for the
French-language network consisting of 13 stations (7 in Quebec, 6 outside of
Quebec).The Canadian Television Network (CTV) operates as a national Englishlanguage service and owns 22 stations in most Canadian provinces.

TVBasics 20032004:
Share of hours tuned by
station group

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Canada has a number of regional networks. The CBC also consists of five regional
networks; Atlantic, Central (Ontario and English Montreal), Pacific (B.C.), Western,
and North (NWT). CTV has three regional networks: Ontario, Atlantic, and
Saskatchewan. Global Television Network sends its signal from Toronto to 14 transmitters to reach 97 percent of the Ontario population. Global Atlantic operates in a
similar manner to reach the majority of people in New Brunswick, PEI, and Nova
Scotia. NewNet is an amalgamation of five Ontario stations reaching over 4 million
people. Citytv, based in Toronto, reaches an audience of 4 million households from
Windsor to Ottawa. CHTV operates similarly out of Toronto/Hamilton and covers 90
percent of Ontario through its seven transmitters. There are three regional networks
in Quebec. TVA has 10 stations and reaches 99 percent of the province. Television
Quatre Saisons has nine stations and reaches 94 percent of the province. Finally,
sports programming has reached the regional network status as Sportsnet operates
in four regions: Pacific, West, Ontario, and East.
The networks have affiliates throughout the nation for almost complete national
coverage. When an advertiser purchases airtime from one of the national networks,
the commercial is transmitted across the nation through the affiliate station network. Network advertising truly represents a mass medium, as the advertiser can
broadcast its message simultaneously throughout the country.
A major advantage of network advertising is the simplification of the purchase
process. The advertiser has to deal with only one party or media representative to
air a commercial nationwide. The networks also offer the most popular programs
and generally control prime-time programming. Advertisers interested in reaching
huge nationwide audiences generally buy network time during the prime viewing
hours of 8 to 11 p.m. eastern time.
The major drawback is the high cost of network time. Figure 104 shows cost estimates for a 30-second spot on many national and regional networks for the
20022003 television season. The cost for a most watched show or special on the
CTV network would be $80,000. As an absolute cost, this is quite prohibitive for
many marketers. As a result, only about 20 percent of all TV advertising is done in
this manner.
Availability of time can also be a problem as more advertisers turn to network
advertising to reach mass markets. Traditionally, most prime-time commercial spots,
particularly on the popular shows, are sold during the buying period in
May/June/July that occurs before the TV season begins. Advertisers hoping to use
prime-time network advertising must plan their media schedules and often purchase TV time as much as a year in advance. Demands from large clients who are
heavy TV advertisers force the biggest agencies to participate in the up-front market.
However, TV time is also purchased during the scatter market that runs through the
TV season. Some key incentives for buying up front, such as cancellation options
and lower prices, are becoming more available in the quarterly scatter market.
Network TV can also be purchased on a regional basis, so an advertisers message
can be aired in certain sections of the country with one media purchase.

Buying Television The marketing and selling of advertising space by the network
producers of television shows to buyers of advertising can be less challenging with
an established brand like the television series Canadian Idol. However, the challenge can be enormous for new television shows with a low profile. The producers
of the hit show, Corner Gas, marketed to television viewers directly to build the
audience, thus making the show very attractive to advertisers. CTV used publicity,
on-air ads, website promotions, and a cross-country tour of Brent Butt (a comedian
and star of the show) to appeal to a core group who would like a show that was
described as original, familiar, and fun. At its peak, Corner Gas is in the top 15
shows watched in Canada with an audience of 1.5 million, topping many American
situation comedies.16
Similarly, Alliance Atlantis Broadcasting takes a packaged-goods marketing
approach in its planning and organizing to develop the market for its imported

Broadcast Media

Chapter 10

Network

# of
Stations

National
CBC Full
CBC Metronet
CTV
Radio Canada
TVA

34
17
22
13
10

Regional
ASN
ATV

1
3

CBC Regional
Atlantic
Central
Western
Pacific
Global
MITV
CTV Ontario
TQS
Tele-Quebec
CTV Saskatchewan

6
12
12
6
1
2
5
10
10
4

Basic
Range $
10052,000
10025,000
2,50080,000
20025,000
Various

30640
4503,300

1002,800
10021,000
1007,500
1004,200
15048,000
5533,400
1,70033,000
31512,000
2002,500
1202,500

Network
Specialty
Bravo!
Canal D
Canal Vie
Canal Z
CBC Newsworld
CMT
Comedy
Discovery
Food Network
HGTV Canada
Historia
History
Life Network
MuchMusic
Musique Plus
OLN
Prime
RDI
RDS
Score, The
Series+
Showcase
Space
Sportsnet
Teletoon (English)
TSN
Vision TV
Weather Network
W Network
YTV

# of
Stations

Basic
Range $

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
4
1
1
1
1
1
1

1505,500
751,365
501,785
40960
2501,000
301,000
401,600
5005,000
1003,500
1003,500
40310
1002,800
1003,700
1,0503,000
480600
151,300
101,500
50550
25018,000
605,000
401,140
1004,700
503,200
1007,500
751,400
50020,000
4001,000
90300
251,475
1504,500

specialty channels like HGTV, National Geographic Channel, and BBC Canada or
domestic specialty channels like Showcase and History Television. In addition, it uses
innovative creative tactics to ensure large audiences for its advertisers. For example,
during the Six Feet Under launch, it used an unusual mobile display to a record-breaking 735,000 viewers, establishing it as the most watched specialty channel program.17

Spot Advertising Spot advertising refers to commercials shown on local TV stations, with time negotiated and purchased directly from the individual stations or
their national station representatives. Station reps act as sales agents for a number
of local stations in dealing with national advertisers.
Spot advertising offers the national advertiser flexibility in adjusting to local
market conditions. The advertiser can concentrate commercials in areas where market potential is greatest or where additional support is needed. This appeals to
advertisers with uneven distribution or limited advertising budgets, as well as those
interested in test marketing or introducing a product in limited market areas.
National advertisers sometimes use spot television advertising through local retailers or dealers as part of their cooperative advertising programs and to provide local
dealer support. This attractive option is most prevalent in Canada with about 60 percent of all TV ads.
Sponsorship Advertising Under a sponsorship arrangement, an advertiser assumes
responsibility for the production and usually the content of the program as well as
the advertising that appears within it. In the early days of TV, most programs were

FIGURE 104
Estimated cost of
network commercials
20022003 (30-second
rates)

293

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Deliver the Message

produced and sponsored by corporations and were identified by their name. Today
most shows are produced by either the networks or independent production companies that sell them to a network, however, sponsorship is a good option in some
situations.
Several major companies have been sponsoring special programs for many years,
such as the Kraft Masterpiece Theater and Hallmark Hall of Fame dramatic series.
In 1994 Hallmark acquired RHI Entertainment Inc., the company that produces its
wholesome Hall of Fame productions as well as TV miniseries and movies. Sole
sponsorship of programs is usually limited to specials and has been declining.
However, some companies do still use program sponsorships occasionally.
A company might choose to sponsor a program for several reasons. Sponsorship
allows the firm to capitalize on the prestige of a high-quality program, enhancing the
image of the company and its products. For example, the Ford Motor Company
received a great deal of favourable publicity when it sponsored the commercial-free
television debut of the Holocaust movie Schindlers List. Companies also sponsor
programs to gain more control over the shows carrying their commercials. For
example, Wendys International has been involved in sponsorship of familyoriented programs.
Another reason is that the sponsor has control over the number, placement, and
content of its commercials. Commercials can be of any length as long as the total
amount of commercial time does not exceed network or station regulations.
Advertisers introducing a new product line often sponsor a program and run commercials that are several minutes long to introduce and explain the product. While
these factors make sponsorship attractive to some companies, the high costs of sole
sponsorship limit this option to large firms.
Scotiabank provides an excellent example of innovative sponsorship. Historically,
Scotiabank was successful with its sponsorship of CTVs Business Report, shown
during its Canada AM morning show. Looking for a consistent message across many of
CTVs banners, Scotiabank hit on the solution of using the Report on Business
Televisions financial news show, Dollars & Sense, as shown in Figure 105.18

294

FIGURE 105
The Dollars & Sense
breakout

Participants: Report on Business Television, CTV Newsnet, Canada AM, CTV News, CTV.ca,
ROBTV.com and other Bell Globemedia relevant websites.
Run: For 10 weeks starting Oct. 6, 2003 and for 20 weeks starting Jan. 5, 2004.
Production: 150 original two-minute Dollars & Sense segments airing on Report on Business Television;
30 original 30-second Dollars & Sense interstitial vignettes airing on CTV Newsnet and Canada AM.
Online: Digitized content so interstitials and long-version Dollars & Sense segments are available
online supporting the advertising.
Component breakdown:
Report on Business Television runs two-minute editorial segments titled Dollars & Sense; airing four
times per day, with unique content, Monday to Friday. Editorial segments are sponsored by Scotiabank
and packaged with a 10-second opening and closing billboard and a 30-second adjacent Scotiabank
commercial. Scotiabank-branded stock ticker appears on screen during the editorial content.
CTV Newsnet runs 30-second Dollars & Sense interstitial vignettes (similar content to longer version
but more compact and focused in-content delivery), airing two times per day, Monday to Friday; 30second commercial adjacency following interstitial; 10-second customized closed captioning
campaign promoting Dollars & Sense brought to you by Scotiabank, Monday to Saturday.
Canada AM runs 30-second Dollars & Sense interstitial in fixed position on Wednesdays and Fridays
with 30-second commercial adjacency.
CTV News runs 10-second customized closed-captioning campaign promoting Dollars & Sense
brought to you by Scotiabank, Monday to Friday.

Broadcast Media

Chapter 10

TIME PERIODS AND PROGRAMS

Another decision in buying TV time is selecting the right period and program for the
advertisers commercial messages. The cost of TV advertising time varies depending
on the time of day and the particular program, since audience size varies as a function of these two factors. TV time periods are divided into dayparts, which are
specific segments of a broadcast day.
The time segments that make up the programming day vary from station to station.
However, a typical classification of dayparts for a weekday is shown in Figure 106.
The various daypart segments attract different audiences in both size and nature, so
advertising rates vary accordingly. Prime-time draws the largest audiences, with
8:30 to 9:00 P.M. being the most watched half-hour time period and Sunday the most
popular night for television. Since firms that advertise during prime time must pay
premium rates, this daypart is dominated by the large national advertisers.
The various dayparts are important to advertisers since they attract different
demographic groups. For example, daytime TV generally attracts women; early
morning attracts women and children. The late-fringe (late-night) daypart period
has become popular among advertisers trying to reach young adults. Audience size
and demographic composition also vary depending on the type of program.
Situation comedies attract the largest prime-time audiences, with women 18 to 34
comprising the greatest segment of the audience. Feature films rank second, followed by general drama shows. Women 55 and older are the largest audience
segment for these programs. Another factor to consider is the time of year.
Figure 107 shows that TV viewership drops significantly in the summer.

SPECIALTY TELEVISION ADVERTISING

Canada has an extensive variety of specialty networks and digital specialty networks
that advertisers run commercials on to reach specific target audiences. These specialty networks require either cable or satellite technology on the part of consumers

Morning

7:00 a.m.9:00 a.m., Monday through Friday

Daytime

9:00 a.m.4:30 p.m., Monday through Friday

FIGURE 106
Common television
dayparts

Early fringe

4:30 p.m.7:30 p.m., Monday through Friday

Prime-time access

7:30 p.m.8:00 p.m., Sunday through Saturday

Prime time

8:00 p.m.11:00 p.m., Monday through Saturday, and

7:00 p.m.11:00 p.m., Sunday

Late news

11:0011:30 p.m., Monday through Friday

Late fringe

11:301:00 a.m., Monday through Friday

FIGURE 107

295

Television summer dropoff

Total hours tuned: % difference
Daytime:
MF
6 a.m.4:30 p.m.

All 2+
Adults 18+

Fringe:
MF
4:30 p.m.7 p.m.

Prime time:
MSun
7 p.m.11 p.m.

Late night:
MSun
11 p.m.2 a.m.

Weekend:
Sat/Sun
6 a.m.7 p.m.

Total

-10

-27

-31

-33

-25

-38

-26

57

-33

-20

Women 18+

69

-23

-26

56

-29

-8

Men 18+

-14

-24

-31

-2

-31

-29

Teens 1217

-19

-30

-33

-3

-37

-24

Total=% drop-off from Fall and Spring averages for 9 EMs (Halifax, Quebec, Montreal, Ottawa-Hull, Kitchener-Waterloo, London, Winnipeg, Calgary, Edmonton)
Source: BBM Summer, Fall, Spring 2002

Part 4

Deliver the Message

to access this entertainment. We will briefly review these two technologies and then
discuss the advertising on these specialty channels.

Cable and Satellite Technology Perhaps the most significant development in the

296

broadcast media has been the expansion of cable television. Cable, or CATV (community antenna television), which delivers TV signals through fibre or coaxial wire
rather than the airways, was developed to provide reception to remote areas that
couldnt receive broadcast signals. Canadians readily accepted cable in the 1970s
since it was the easiest or only method of receiving the feed of American channels.
Today, cable penetration stands at about 67 percent.
Direct broadcast satellite (DBS) services emerged in the 1990s. TV and radio programs are sent digitally from a satellite to homes equipped with a small dish. DBS
penetration reached 22 percent in 2003, mostly at the expense of cable companies.
DBS companies have been aggressively marketing their service, superior picture
quality, and greater channel choice as subscribers receive as many as 200 channels
that include news, music, and sports in crisp, digital video and CD-quality sound.
However, the pendulum can swing back the other way as more cable operators offer
digital cable that allows them to match the number of channels received on satellites. Note that the combined penetration of these technologies is 89 percent
indicating that a sizable number of Canadians cannot be reached through specialty
television advertising.
Cable and satellite subscribers pay a monthly fee for which they receive many
channels, including the local Canadian and American network affiliates and independent stations, various specialty networks, American superstations, and local
cable system channels. Both operators also offer programming that is not supported
by commercial sponsorship and is available only to households willing to pay a fee
beyond the monthly subscription charge (e.g., The Movie Channel). Cable and satellite broadens the program options available to the viewer as well as the advertiser
by offering specialty channels, including all-news, pop music, country music,
sports, weather, educational, and cultural channels as well as childrens programming. Many cable systems also carry American superstations, independent local
stations that send their signals via satellite to operators to make their programs available to subscribers. Programming on superstations such as TBS and WGN generally
consists of sports, movies, and reruns of network shows.

Specialty Networks The proliferation of channels in both technologies has influenced the nature of television as an advertising medium. Expanded viewing options
have led to considerable audience fragmentation. Much of the audience growth of
specialty networks has come at the expense of national and regional networks.
Specialty networks now have about 28 percent of the viewing audience. Many specialty networks have become very popular among consumers, leading advertisers to
re-evaluate their media plans and the prices they are willing to pay for network and
spot commercials on network affiliate stations. Advertising on specialty networks
reached $438 million in 2001 up from $109 million in 1994. In comparison, all other
television ad revenue increased from $1.663 billion in 1994 to $2.123 billion.
This change in advertising revenue indicates that advertisers are using specialty
networks to reach specific target audiences. Advertisers are also interested in specialty networks because of their low cost and flexibility. Advertising rates on cable
programs are much lower than those for the shows on the major networks (see
Figure 104). This makes TV a much more viable media option for smaller advertisers with limited budgets and those interested in targeting their commercials to a
well-defined target audience. Also, specialty network advertisers generally do not
have to make the large up-front commitments, which may be as much as a year in
advance, the networks require.
In addition to costing less, specialty networks give advertisers much greater flexibility in the type of commercials that can be used. While most network
commercials are 30- or 15-second spots, commercials on specialty networks can be

Chapter 10

Broadcast Media

longer (i.e., infomercials ranging from 3 to 30 minutes in length). Direct-response

advertisers often use these longer ads to describe their products or services and
encourage consumers to call in their orders during the commercial. The use of
infomercials by direct-response advertisers is discussed in Chapter 15. Finally, specialty network advertising can be purchased on a national or a regional basis. Many
large marketers advertise on specialty networks to reach large numbers of viewers
across the country with a single media buy. Regional advertising on specialty networks is available but limited.
While specialty networks have become increasingly popular among national,
regional, and local advertisers, they still have limitations. One concern is that specialty networks are overshadowed by the networks. The average person will watch
more hours per week of a CBC or CTV affiliate than a single specialty network,
although this is changing. Figure 108 shows a summary of the more highly viewed
specialty channels. The average Canadian watches TSN an average of 1.5 hours per

FIGURE 108

TVBasics 2003-2004

SPECIALTY

Hours
(000)

Fall 2002
Reach
(000)

Avg
Hrs

Hours
(000)

Fall 2003
Reach
(000)

Avg
Hrs

Bravo
Canal D

5,488
5,040

6,073
2,546

0.9
2.0

5,936
3,920

6,026
2,547

1.0
1.5

Canal Vie
Canal Z
CBC Newsworld
Country Music Television
Discovery
Food Network Canada
HGTV Canada
Historia
History Television
Life Network
MuchMusic
Musique Plus
Outdoor Life
Prime TV
RDS - Le Reseau des Sports
RDI - Le Reseau de L'information
Score Television Network
Series +
Showcase
Space
Sports Net
Teletoon English
Teletoon French
The Comedy Network
The Family Channel
The Weather Network
TSN
W Network
TOTAL DIGITAL NETWORKS

3,136
2,128
5,264
3,080
6,832
2,688
4,480
1,456
6,048
3,024
4,592
1,232
1,568
7,056
6,944
3,472
N/A
4,256
5,488
7,168
7,280
7,840
4,704
3,920
9,520
2,688
14,112
4,480
13,328

2,232
1,225
5,490
4,783
7,341
2,799
4,432
1,082
4,655
5,568
6,071
2,059
3,325
4,824
2,766
2,436
N/A
1,330
5,937
4,838
6,816
4,978
1,978
5,301
6,120
4,594
9,155
5,473
3,888

1.4
1.7
1.0
0.8
0.9
1.0
1.0
1.3
1.3
0.5
0.8
0.6
0.5
1.5
2.5
1.4
N/A
3.2
0.9
1.5
1.1
1.6
2.4
0.7
1.6
0.6
1.5
0.8
3.4

3,584
1,904
5,600
3,472
7,616
2,912
4,256
1,568
5,600
3,136
4,256
1,008
1,344
6,944
5,936
3,696
2,352
5,040
6,496
6,272
10,864
8,736
5,040
3,472
10,304
2,576
12,544
5,040
13,776

2,191
1,249
5,334
4,325
7,134
2,753
4,268
1,077
4,440
5,652
5,980
1,835
3,124
4,751
2,598
2,662
3,411
1,227
6,032
4,422
6,815
5,483
1,966
4,969
6,189
4,882
8,386
5,158
4,624

1.6
1.5
1.0
0.8
1.1
1.1
1.0
1.5
1.3
0.6
0.7
0.5
0.4
1.5
2.3
1.4
0.7
4.1
1.1
1.4
1.6
1.6
2.6
0.7
1.7
0.5
1.5
1.0
3.0

*Numbers represent an average of eight weeks: Sep 30-Oct 6, 02 to Nov 18-Nov 24, 02; Sep 29-Oct 5, 03 to Nov 17-Nov 23, 03
Source: Nielsen Media Research, People Meter Data

Average hours watched

per week for selected
specialty channels

297

Part 4

Deliver the Message

week while the average person in Ottawa watches the CBC affiliate 2.6 hours per
week. Although specialty networks share of the TV viewing audience has increased
significantly, the viewers are spread out among the large number of channels available. Collectively, the specialty channels contribute to greater audience
fragmentation as the number of viewers who watch any one cable channel is generally quite low. Figure 109 shows a breakout of television viewership across all
formats.
The emergence of dozens of digital specialty channels a few years ago raises the
question as to how well they are performing in attracting audiences in sufficient
numbers for advertisers to consider them as a viable television vehicle. While their
share of 1 or 2 percent of the television market may be considered disappointing,
another perspective suggests that a more realistic benchmark should be used. Since
access to a specific digital specialty channel requires a subscription similar to that
of magazines, a more important comparison is to look at the leaders for each media.
In fact, about three-quarters of the digital specialty channels have more than half a
million subscribers, something only three subscription magazines can claim.19
Recent research suggests that over the past few years, 45 percent of all viewers
watch more programs on specialty channels with 41 percent indicating their perception that these channels have more interesting/entertaining programming versus
conventional channels. Furthermore, 37 percent devote more than half of their
viewing time to specialty channels and a similar number will consider a specialty
channel first when they do not have a planned program to watch. With cost per rating point being about 50 percent lower and a greater ability to target an audience, it
is not surprising to see that advertising revenues for specialty channels is growing
significantly faster compared to conventional channels.20

MEASURING THE TV AUDIENCE

298

One of the most important considerations in TV advertising is the size and composition of the viewing audience. Audience measurement is critical to advertisers as
well as to the networks and stations. Advertisers want to know the size and characteristics of the audience they are reaching when they purchase time on a particular
program. And since the rates they pay are a function of audience size, advertisers
want to be sure audience measurements are accurate.
Audience size and composition are also important to the network or station, since
they determine the amount it can charge for commercial time. Shows are frequently
cancelled because they fail to attract enough viewers to make their commercial time
attractive to potential advertisers. Determining audience size is not an exact science

FIGURE 109
Viewing habits of
Canadians 2+ by
station groups (NMR
2002 weeks 513)

Other
17%
U.S. Pay
& Specialty
5%

English National
Networks
13%
Canadian Global
& Independents
14%

U.S. Conventional
& Superstations
7%
Canadian Pay
& Specialty (E + F)
14%

French Networks
30%

Chapter 10

Broadcast Media

and has been the subject of considerable controversy through the years. In this section, we examine how audiences are measured and how advertisers use this
information in planning their media schedules.

Audience Measurement Resources The size and composition of television audiences are important to media planners as they weigh the value of buying commercial
time on a program. In Canada, television audiences are measured and communicated by BBM Bureau of Measurement of Canada (BBM Canada) and Nielsen Media
Research. A third organization, the Television Bureau of Canada, offers additional
information related to television audiences.
BBM Canada BBM Canada is a not-for-profit broadcast research company based on
cooperative between the Canadian Association of Broadcasters, the Association of
Canadian Advertisers, and Canadian advertising agencies. BBM Canada produces
audience measurement data for its TV and radio members. This member relationship gives BBM Canada the reputation as the industrys rating service.
BBM Canada uses the diary research method for collecting television audience
information in 35 smaller local markets during the fall and spring, and 12 larger
local markets during the fall, spring, and summer. A booklet for each television
owned in the household is sent to a representative sample of households. BBM gathers viewership information from this sample and then projects this information to
the total viewing area.
The diary method work as follows. Each person aged two years or older records
his or her viewing for one week in the booklet. The recordings are based on 15minute increments from 6:00 A.M. until 2:00 A.M. Viewers write down station call
letters, channel numbers, programs, and who is watching. The booklet also contains
a number of based demographic questions to be completed by each individual. All
participants receive a small incentive to encourage their responses. BBM receives
completed diaries from about 40 percent of those that are mailed, although the rates
vary by region and other factors. These and other aspects of the research process are
done according to standard market research practices to ensure valid and reliable
information; however, one drawback is that some diaries are not filled out correctly.
Due to this methodological concern and the pace of technology, BBM Canada is
currently implementing the people-meter technology for local audience measurement. BBM Canada has begun to use meters to continuously record television
audiences for local and regional markets. It started with Vancouver in 1998 and has
now reached the Toronto local market and the Ontario and Quebec regional markets.
As of June 2002, BBM Canada had tested preliminary data from a national panel of
2,100 households and plans a commercial launch of the service in the near future.
To help its customers understand the data, BBM Canada provides an extensive
array of products. Market reports are a summary of the audience sizes across all markets by time block, program listings, and time period. Their reach book summarizes
the demographic information across each province, data area, and station. BBM
Canada also offers guidelines on population estimates and booklets that assist its
members in understanding the geographic boundaries studied and the research
methodology. BBM Canadas television data book breaks down the viewing habits
across different markets with user-friendly graphs and charts. The EM Stats Card
provides detailed information for each extended market in terms of cable, satellite,
and VCR penetration in addition to other similar macro-level data. Finally, two different documents tabulate the audiences for the different televisions shows. As a
complement, BBM Canada also offers four different software packages that allow its
members to analyze the data in a variety of ways.
Nielsen Media Research Nielsen is a Canadian subsidiary of an American firm
with the same name. Nielsen gathers viewership information from a panel of TV
homes that is a representative sample. It then projects this information to the total
viewing area. The resulting data is presented as the Nielsen Television Index (NTI).

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In Canada, the only technique used to gather audience measurement information is

the electronic meter. Nielsen had previously used both the diary and electronic
meter in Canada, like the practice done in the United States. In 2002, Nielsens had
the technology to measure audiences for the national market and for the Vancouver,
Calgary, Toronto/Hamilton, and Montreal (French only) markets. Nielsen has
recently launched a similar service to measure the audiences for the new digital
channels offered on both cable and satellite.
Nielsen provides audience viewing information by household across a number of
variables including income, language, cable status, pay TV, children residing,
household size, age of head of household, number of TVs, rent or own home, kind
of dwelling, ownership of VCRs and other durables, principal shopper, and restaurant and movie usage. The data is also presented by age, gender, education, and
occupation. Like BBM Canada, Nielsen also provides various data management
tools and services to help its clients understand the data. IMC Perspective 102
describes another service offered by Nielsen.
With BBM Canada and Nielsen offering very similar services, Canada is in a
unique position of being the only country in the world that has two firms measuring TV audiences. The U.S. has only Nielsen; historically, there has been significant
concern as to whether the advertisers are getting their moneys worth and whether
the data is sufficiently accurate as Nielsen uses two different methods (i.e., diary
and meter). In Canada, the debate has centred on a couple of other facets. Some
argue that Canada should return to a single firm measuring TV audiences as this
would reduce overall costs; however, others contend that a dual system gives advertisers and agencies greater choice in making their TV media purchases.21

300

Television Bureau of Canada (TVB) The TVB is an industry association for television networks, television stations, and sales firms that sell television advertising
time. It offers resources to those in the television industry to demonstrate the value
and importance of television as a media versus competing media (i.e., magazines).
It publishes basic facts garnered from various sources and conducts primary
research through independent market research firms.
Most of the information is from BBM Canada or Nielsen Media Research. Based
on this research, television consistently outperforms the other media on a number
of variables. Television reaches 85 percent of the country on a daily basis, with the
average Canadian watching about 3.5 hours per day. Furthermore, television is perceived as being the most authoritative (43 percent) and most influential (71 percent)
compared to radio, the Internet, daily newspapers, and magazines.

Audience Measures We now review some of the concepts associated with television audience measurement that are the basis for the reports published by these
three organizations.
Television Households The number of households in the market that own a TV is
sometimes referred to as the universe estimate (UE). Since over 98 percent of
Canadian households own a TV set, television households generally correspond to
the number of households in a given market.
Program Rating Probably the best known of all audience measurement figures is
the program rating, the percentage of TV households in an area that are tuned to a
specific program during a specific time period. The program rating is calculated by
dividing the number of households tuned to a particular show by the total number
of households in the area. For example, if 1.2 million households (HH) watched a
show, the national rating would be 10.9, calculated as follows:
Rating

HH tuned to show 1,200,000

10.9
Total HH
11,000,000

Chapter 10

I M C

Broadcast Media

102

P E R S P E C T I V E

Tracking Your Competitors

Youre ready to launch a huge
multi-million dollar advertising
campaign with the majority of
your budget dedicated to television spots on numerous
networks. Youve analyzed
everything, from your target
audience and their viewing
patterns to which local TV
stations are best suited to run
your commercials. Youre now
ready to execute the planning
and strategy of your media
plan. But there is one important factor you overlooked, one
that could either increase or reduce the effectiveness of
your entire television campaign. That factor is the past and
present success of your competitors media strategies.
In the past, big marketing players in Canadas television
world had a tough time reading what their competitors were
doing in their media plans. The only way one could get a
sense of their competitors media plans was by wading
through loads of numbers or watching a heck of a lot of TV!
Enter SpotWatch, a new service available through
Nielsen Media Research of Markham, Ont. Nielsen bills
SpotWatch as the highest-quality competitive advertising
intelligence and spot verification service available for television in Canada. The system automatically identifies
when programs and commercials are aired through passive pattern recognition technology. Each ad has a video
and audio signature that signals to the system so that key
information is stored (i.e., when and where it has aired).
This data is also linked to Nielsens TV viewing data to
determine who has received the messages.

The most obvious benefit is

that the service offers accuracy in determining audience
delivery for particular commercials and campaigns. But
more importantly, the reports
are especially detailed since
SpotWatch can provide charts
for each brands TV spot, or
for a whole category, that
include the distributor, creative theme, day of the week
and time it aired, position of
the ad in a pod (commercial break), length, flighting patterns (periods of activity and inactivity for a campaign), and
share of voice (the percentage of a brands advertising in
relation to the total advertising in its category). Another key
benefit is the fact that Nielsen is providing the reports in 15
days so that planners have the opportunity to make quick
appropriate changes depending upon what the data indicates. And finally, there is a user-friendly decision support
system to let planners work with the data.
It all sounds pretty good but there are a few potential
drawbacks. The cost ranges from $200 to $1,500 per month,
depending on the category. And while the service boasts a
correct identification for commercials about 95 percent of
the time, which many people are happy with, it is still not 100
percent accurate. Finally, the distribution was still limited to
Toronto and Vancouver in 2001. In all, however, you can be
sure that Nielsens SpotWatch service will level the competitive media planning and strategy playing field.
Source: Sarah Smith, The Spying Game, Marketing Magazine,
May 7, 2001.

A ratings point represents 1 percent of all the television households in a particular area tuned to a specific program. On a national level, 1 ratings point represents
110,000 households. Thus, a top-rated program with an average rating of 19 reaches
2.1 million households each week (19  110,000).
The program rating is the key number to the stations, since the amount of money
they can charge for commercial time is based on it. Ratings points are very important to the networks as well as to individual stations. A 1 percent change in a
programs ratings over the course of a viewing season can gain or lose millions of
dollars in advertising revenue. Advertisers also follow ratings closely, since they are
the key measure for audience size and commercial rates.

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Households Using Television The percentage of homes in a given area where TV is

being watched during a specific time period is called households using television
(HUT). This figure, sometimes referred to as sets in use, is always expressed as a percentage. For example, if 5.5 million of Canadian TV households have their sets
turned on at 10 p.m. on a Thursday night, the HUT figure is 50 percent (5.5 million
out of 11 million). Television usage varies widely depending on the time of day and
season of the year.
Share of Audience Another important audience measurement figure is the share
of audience, which is the percentage of households using TV in a specified time
period that are tuned to a specific program. This figure considers variations in the
number of sets in use and the total size of the potential audience, since it is based
only on those households that have their sets turned on. Audience share is calculated by dividing the number of households (HH) tuned to a show by the number of
households using television (HUT). Thus, if 5.5 million Canadian households had
their sets turned on during the 10 p.m. time slot, the share of audience would be 20,
calculated as follows:
Share

302

HH tuned to show
1.1



20
Households using TV 5.5

Audience share is always higher than the program rating unless all the households
have their sets turned on (in which case they would be equal). Share figures are
important since they reveal how well a program does with the available viewing
audience. For example, late at night the size of the viewing audience drops substantially, so the best way to assess the popularity of a late-night program is to examine
the share of the available audience it attracts relative to competing programs.
Ratings services also provide an audience statistic known as total audience, the
total number of homes viewing any five-minute part of a telecast. This number can
be broken down to provide audience composition figures that are based on the distribution of the audience into demographic categories.

Audience Measurement Technology

Nielsen Television Index The source of national and network TV audience information is the Nielsen Television Index (NTI), which provides daily and weekly
estimates of TV viewing and national sponsored network and major cable program
audiences. Currently, BBM Canada is planning a national service to be launched in
the spring of 2002. Historically, Nielsen provided this information using a twopronged system consisting of a national sample of metered households along with a
separate sample of diary households. In the metered households, an electronic measurement device known as the audimeter (audience meter) was hooked up to the TV
set to continuously measure the channels to which the set was tuned. Network viewing for the country (the famous Nielsen ratings) was based on the results provided by
audimeters placed in a national sample of homes carefully selected to represent the
population of households. The metered households were supported by a separate
panel of households that recorded viewing information in diaries. Since the audimeter could measure only the channel to which the set was tuned, the diary panel was
used to gather demographic data on the viewing audience.
For many years, the television and advertising industries expressed concern over
the audimeter/diary system. The information from diaries was not available to the
network and advertising analysts for several weeks, and studies indicated the
method was overstating the size of some key demographic audiences. Cooperation
rates among diary keepers declined, and often the person who kept a households
diary did not note what other family members watched when he or she wasnt
home. The complex new video environment and explosion in viewing options also
made it difficult for diary keepers to maintain accurate viewing records.

Chapter 10

Broadcast Media

As a result of these problems, and in response to competitive pressure from an audience measurement company from England, AGB, in
1987 Nielsen made the people meter the sole basis of its national rating system and eliminated the use of the diary panel.
The People Meter The People Meter is an electronic measuring
device that incorporates the technology of the audimeter in a system
that records not only what is being watched but also by whom in 3350
homes. The actual device is a small box with eight buttonssix for
the family and two for visitorsthat can be placed on the top of the
TV set (Exhibit 102). A remote control unit permits electronic entries
from anywhere in the room. Each member of the sample household is
assigned a button that indicates his or her presence as a viewer. The People Meter
collects what station is being tuned and, through interaction with the meter, who is
sitting down and watching the programs.
The viewership information the People Meter collects from the household is
stored in the Home Unit which in turn reports television use over a telephone line
to a central computer at Nielsen Media Research head office. Data collected include
when the set is turned on, which channel is viewed, when the channel is changed,
and when the set is off, in addition to who is viewing. The demographic characteristics of the viewers are also in the system, and viewership can be matched to these
traits. Nielsens operation centre processes all this information each night for release
to the TV and advertising industries. Nielsen uses a sample of metered households
to provide overnight viewing results.
Many people believe People Meters are only the first step in improving the way
audiences are measured. While the People Meter is seen as an improvement over the
diary method, it still requires cooperation on an ongoing basis from people in the
metered homes. Viewers in the Nielsen households, including young children, must
punch a preassigned number on the remote control device each time they start or
stop watching.
Television has often been referred to as the ideal advertising medium, and to many
people it personifies the glamour and excitement of the industry. Radio, on the
other hand, has been called the Rodney Dangerfield of media because it gets no
respect from many advertisers. Dominated by network programming and national
advertisers before the growth of TV, radio has evolved into a primarily local advertising medium. Radio has also become a medium characterized by highly
specialized programming appealing to very narrow segments of the population.
The importance of radio is best demonstrated by the numbers. There are 941 radio
stations in Canada, including 274 AM stations and 667 FM stations. Radio reaches 93
percent of all Canadians over the age of 12 each week and has grown into a ubiquitous background to many activities, among them reading, driving, running, working,
and socializing. The average Canadian listens to radio three hours per day or 21 hours
per week. The pervasiveness of this medium has not gone unnoticed by advertisers;
radio advertising revenue grew from $741 million in 1994 to $1.1 billion in 2001.
Radio has survived and flourished as an advertising medium because it offers
advertisers certain strengths for communicating messages to their potential customers. However, radio has inherent limitations that affect its role in the advertisers
media strategy. IMC Perspective 103 highlights radios recent attractiveness.

STRENGTHS OF RADIO
Radio has many strengths compared to other media, including cost efficiency and
low absolute costs, reach and frequency, target audience selectivity, geographic coverage, scheduling flexibility, creativity, and image.

Exhibit 102
Nielsen Media Research
uses the People Meter to
measure national TV
audiences

303

RADIO

Part 4

I M C

Deliver the Message

103

P E R S P E C T I V E

Radio's Resurgence
With the great blackout in
Eastern Canada and various
natural disasters across the
country, 2003 will go down as
the year of the radio. Although
listenership peaked to satisfy
people's need for information
during those trying times,
advertisers for national brands
discovered or rediscovered
the power of radio. With the
coming technology of digital
audio broadcasting (DAB),
consumer interaction with the
media, and the cost of media placement, radio is a strong
option for a comprehensive IMC plan.
Brand development through radio appeared as a strong
possibility and Goodyear Canada made this traditional
media work. Building on the successful image from its TV
ads, the radio ads used the highly recognizable spokesperson Tom Sharp with his distinctive and recognizable voice.
The campaign focused on safety by informing consumers
that various safety vehicles (e.g., ambulance, police car, or
school bus) used Goodyear tires.
Technologically, radio is going digital like television.
Compared to traditional analogue-based AM and FM stations, DAB offers CD-quality sound and a screen display
that can communicate song credits, traffic, and emergency
information, and possibly marketing messages. A consortium of major radio broadcasters (e.g., Chum, Rogers)
launched a radio campaign describing these benefits of

DAB with a suggestion to visit

its website digitalradio.ca for
more information. Many stations already offer DAB,
however, consumers need to
purchase a relatively inexpensive receiver. Some media
planners remained skeptical,
as consumers' perceptions of
the benefits of DAB may not
arise if they focus solely on
the additional cost of the
receiver. Moreover, the
importance of the visual display was unclear and the availability in all markets limited
the overall penetration.
Overall, radio's numbers speak for themselves. Its daily
share of media time (i.e., three hours) is equal to television
at 37 percent with daily newspapers trailing in third with 10
percent. Radio advertising revenues increased 6 percent
for a total of $1.1 billion, easily surpassing all other media
beyond television and daily newspapers. Although some
believe radio's resurgence is a backlash against the higher
costs of TV production and placement, others note that
advertisers are tracking positive results and buy radio for 52
weeks a year. Moreover, with such an extensive investment, these kinds of advertisers look for ways to integrate
radio with their other media.
Source: Andrea Zoe Aster, Radio's New Wavelength,
Marketing Magazine, February 2, 2004.

Cost Efficiency and Absolute Cost One of the main strengths of radio as an advertising medium is its low cost. Radio commercials are very inexpensive to produce.
They require only a script of the commercial to be read by the radio announcer or a
copy of a prerecorded message that can be broadcast by the station. The cost for
radio time is also low. The low relative costs of radio make it one of the most efficient of all advertising media, and the low absolute cost means the budget needed
for an effective radio campaign is often lower than that for other media.

304

Reach and Frequency The low cost of radio means advertisers can build more reach and
frequency into their media schedule within a certain budget. They can use different stations to broaden the reach of their messages and multiple spots to ensure adequate
frequency. Radio commercials can be produced more quickly than TV spots, and the
companies can afford to run them more often.22 Many national advertisers also recognize the cost efficiency of radio and use it as part of their media strategy.

Chapter 10

Broadcast Media

Target Audience Selectivity Another major advantage of radio is the high degree of
audience selectivity available through the various program formats and geographic coverage of the numerous stations. Radio lets companies focus their advertising on
specialized audiences such as certain demographic and lifestyle groups. Most areas have
radio stations with formats such as adult contemporary, easy listening, classical music,
country, news/talk shows, jazz, and all news, to name a few. For example, among 18- to
24-year olds, the most popular radio format is top 40, while those between the ages of
45 and 54 prefer news/talk. Elusive consumers like teenagers, college students, and
working adults can be reached more easily through radio than most other media.
Radio can reach consumers other media cant. Light television viewers spend considerably more time with radio than with TV and are generally an upscale market in
terms of income and education level. Light readers of magazines and newspapers also
spend more time listening to radio. As mass marketing gives way to market segmentation and regional marketing, radio will continue to grow in importance.

Geographic Coverage Radio is essentially a local media. In this respect, since all
listeners can tune in, it offers excellent coverage within its geographic scope. Radio
stations become an integral part of many communities, and the deejays and program
hosts may become popular figures. Advertisers often use radio stations and personalities to enhance their involvement with a local market and to gain influence with
local retailers. Radio also works very effectively in conjunction with placebased/point-of-purchase promotions. Retailers often use on-site radio broadcasts
combined with special sales or promotions to attract consumers to their stores and
get them to make a purchase (Exhibit 103). Live radio broadcasts are also used in
conjunction with event marketing.
Scheduling Flexibility Radio is probably the most flexible of all the advertising
media because it has a very short closing period, which means advertisers can
change their message almost up to the time it goes on the air. Radio commercials can
usually be produced and scheduled on very short notice. Radio advertisers can easily adjust their messages to local market conditions and marketing situations.

305

Creativity for Cognitive Responses The verbal nature of radio ads make them ideal
for long copy to select target audiences who may appreciate greater detailed information for some products. Alternatively, radio ads can also provide more concise
brand information in a timely manner. Moreover, both of these factors are highly relevant for those listening in their car, which is a significant percent of radio
listenership. In either case, the informative nature of radio advertising makes it an
opportunistic media to connect with a target audience on a more rational level.
Exhibit 103
Banana Boat uses live
radio broadcasts
to promote its sun-care
products

Part 4

Deliver the Message

Media Image Radio advertising in general has a good media image. Consumers rely
on radio for news, weather, and traffic information, not to mention the obvious program content. Thus, radio is well appreciated and this spills over to the ads as 77
percent of Canadians feel that radio advertising is acceptable.

LIMITATIONS OF RADIO
Several factors limit the effectiveness of radio as an advertising medium, among
them weak creativity, short processing time, target audience coverage, limited listener attention, potential selective exposure, clutter, and low involvement. The
media planner must consider them in determining the role the medium will play in
the advertising program.

Creativity for Emotional Responses A major drawback of radio as an advertising

306

Exhibit 104
The Radio Advertising
Bureau promotes the
concept of imagery
transfer

medium is the absence of a visual image. The radio advertiser cannot show the product, demonstrate it, or use any type of visual appeal or information. While the
creative options of radio are limited, many advertisers take advantage of the absence
of a visual element to let consumers create their own picture of what is happening
in a radio message. Some ads encourage listeners to use their imagination when processing a commercial message.
Radio may also reinforce television messages through a technique called image
transfer, where the images of a TV commercial are implanted into a radio spot.23 First
the marketer establishes the video image of a TV commercial. Then it uses a similar, or
even the same, audio portion (spoken words and/or jingle) as the basis for the radio
counterpart. The idea is that when consumers hear the radio message, they will make
the connection to the TV commercial, reinforcing its video images. Image transfer offers
advertisers a way to make radio and TV ads work together. This promotional piece put
out by the Radio Advertising Bureau of the U.S. shows how the image transfer process
works (Exhibit 104).

Amount of Processing Time A radio commercial is, like a

TV ad, a short-lived and fleeting message that is externally paced and does not allow the receiver to control
the rate at which it is processed.
Target Audience Coverage Another problem with radio
is the high level of audience fragmentation due to the
large number of stations. The percentage of the market
tuned to any particular station is usually very small. The
top-rated radio station in many major metropolitan areas
with a number of AM and FM stations may attract less
than 10 percent of the total listening audience.
Advertisers that want a broad reach in their radio advertising media schedule have to buy time on a number of
stations to cover even a local market.

Attention Another problem that plagues radio is that it

is difficult to retain listener attention to commercials.
Radio programming, particularly music, is often the
background to some other activity and may not receive
the listeners full attention. Thus they may miss all or
some of the commercials.
Selective Exposure One environment where radio has a
more captive audience is in cars. But getting listeners to
expose themselves to commercials can still be difficult.

Chapter 10

Broadcast Media

Most people preprogram their car radio and change stations during commercial
breaks. A study by Avery Abernethy found large differences between exposure to
radio programs versus advertising for listeners in cars. They were exposed to only
half of the advertising broadcast and changed stations frequently to avoid commercials.24 Another factor that is detracting from radio listening in motor vehicles is the
rapid growth of cellular phones. A recent study found that half of commuters surveyed who own a cellphone reported listening to less radio than they did a year
earlier.25

Clutter Clutter is just as much a problem with radio as with other advertising media.
Radio stations can play as many minutes of advertising as they like. Most radio stations
carry an average of nearly 10 minutes of commercials every hour. During the popular
morning and evening rush hours, the amount of commercial time may exceed 12 minutes. Advertisers must create commercials that break through the clutter or use heavy
repetition to make sure their messages reach consumers. In a study of radio listeners
conducted by Edison Research, perceptions of increased ad clutter were cited by participants as a reason for spending less time listening to radio.26
Low Involvement Similar to television, radio is generally considered a low-involvement
media since it is faced with the same characteristics of short processing time and clutter. In fact, it may be seen as being less involving since it has the additional limitation
of no visual.

BUYING RADIO TIME

The purchase of radio time is similar to that of television, as advertisers can make
either network, or spot buys. Since these options were reviewed in the section on
buying TV time, they are discussed here only briefly.

Network Radio Advertising time on radio can be purchased on a network basis.

This is a relatively new option for advertisers who can now run ads on the CHUM
radio network, The Team Sports Radio Network, and a few others. Using networks
minimizes the amount of negotiation and administrative work needed to get
national or regional coverage, and the costs are lower than those for individual stations. However, the number of affiliated stations on the network roster and the types
of audiences they reach may vary, so the use of network radio reduces advertisers
flexibility in selecting stations.
Spot Radio National advertisers can also use spot radio to purchase airtime on individual stations in various markets. The purchase of spot radio provides greater
flexibility in selecting markets, individual stations, and airtime and adjusting the
message for local market conditions. By far the heaviest users of radio are local
advertisers; the majority of radio advertising time is purchased from individual stations by local companies. Auto dealers, retailers, restaurants, and financial
institutions are among the heaviest users of local radio advertising.

TIME CLASSIFICATIONS
As with television, the broadcast day for radio is divided into various time periods or
dayparts, as shown in Figure 1010. The size of the radio listening audience varies
widely across the dayparts, and advertising rates follow accordingly. The largest radio
audiences (and thus the highest rates) occur during the early morning and late afternoon drive times. Radio rates also vary according to the number of spots or type of
audience plan purchased, the supply and demand of time available in the local market,
and the ratings of the individual station. Rate information is available directly from the
stations and is summarized in CARD. Some stations issue grid rate cards. But many

307

Part 4

FIGURE 1010
Dayparts for radio

Deliver the Message

Morning drive time

6:0010:00 A.M.

Daytime

10:00 A.M.3:00 P.M.

Afternoon/evening drive time

3:007:00 P.M.

Nighttime

7:00 P.M.12:00 A.M.

All night

12:006:00 A.M.

stations do not adhere strictly to rate cards. Their rates are negotiable and depend on
factors such as availability, time period, and number of spots purchased.

MEASURING THE RADIO AUDIENCE

As noted earlier, BBM Canada also provides information on radio listenership using
a diary method similar to television. Surveys are done up to three times per year in
over 130 radio markets. BBM Canada publishes many reports associated with these
surveys. Market reports summarize each radio stations audience by occupation, language, and other important characteristics. Other similar reports with greater
aggregation across regions are also published. As for television, BBM Canada
provides its members with many supporting documents to understand how to use
radio as a communication tool. It also offers many software applications so that
advertisers can purchase radio media effectively and efficiently. The three basic
elements in the BBM Canada reports are:
Person estimatesthe estimated number of people listening.
Ratingthe percentage of listeners in the survey area population.
Sharethe percentage of the total estimated listening audience.

308

These three estimates are further defined by using quarter-hour and cume figures.
The average quarter-hour (AQH) figure expresses the average number of people
estimated to have listened to a station for a minimum of five minutes during any
quarter-hour in a time period. This figure helps to determine the audience and cost
of a spot schedule within a particular time period.
Cume stands for cumulative audience, the estimated total number of different
people who listened to a station for at least five minutes in a quarter-hour period
within a reported daypart. Cume estimates the reach potential of a radio station.

FIGURE 1011
Weekly reach and share
of total hours tuned by
demographics

Canada

AM (%)

12+
Women 18+
Men 18+
Teens 1217

38.5
39.1
43.0
14.7

Reach
FM (%)
80.4
80.2
80.2
82.6

Share
AM (%)
FM (%)
26.3
27.3
27.1
6.0

73.7
72.7
72.9
94.0

Source: BBM, Fall 02

Quebec
12+
Women 18+
Men 18+
Teens 1217
Source: BBM, Fall 02 *Home Language

Language

AM (%)

(Fr.)
(Eng.)
(Fr.)
(Eng.)
(Fr.)
(Eng.)
(Fr.)
(Eng.)

21.1
40.5
20.6
40.3
24.8
45.3
5.0
15.8

Reach
FM (%)
88.8
83.0
90.4
83.0
88.8
83.2
79.6
81.8

Share
AM (%)
FM (%)
12.3
26.1
12.9
26.7
12.3
26.9
2.3
5.9

87.7
73.9
87.1
73.3
87.7
73.1
97.7
94.1

Broadcast Media

Chapter 10
Time Block
Breakfast
Midday
Drive
Evening

MonFri
MonFri
MonFri
MonFri

Women 18+ (%)

Men 18+ (%)

Teens 1217 (%)

49
51
46
43

47
47
49
47

4
2
5
10

610a
104p
47p
7p12a

FIGURE 1012
Audience composition by
time block

Source: BBM, Fall 02

The average quarter-hour rating (AQH RTG) expresses the estimated number of
listeners as a percentage of the survey area population. The average quarter-hour
share (AQH SHR) is the percentage of the total listening audience tuned to each station. It shows the share of listeners each station captures out of the total listening
audience in the survey area. Figures 1011 to 1015 provide a summary of Canadian
FIGURE 1013
radio listening habits.
Audience research data on radio are often limited, particularly compared with Percent weekly reach
TV, magazines, or newspapers. The BBM audience research measurement mostly and hours tuned by
focuses on demographics and a handful of lifestyle factors. Most users of radio are major demographic
local companies that cannot support research on
radio listenership in their markets. Thus, media 100
96
95
94
94
93
92
planners do not have as much audience information
90
86
available to guide them in their purchase of radio
80
time as they do with other media.
The Radio Marketing Bureau (RMB) is an organiza70
tion that plays a similar role for radio as the Television
60
Bureau of Canada, discussed earlier in this chapter. It
50
acts as a resource for radio stations and those involved
with selling airtime for radios. Its mission is to educate
40
advertisers on the effective use of the radio medium
30
and to assist advertisers in meeting their communication objectives. The Radio Marketing Bureau offers
20
professional services to advertisers if needed. It also
10
offers a training and certificate program for those work0
ing in the radio industry. Finally, this organization
A18+ A1834 A1849 A2554 A50+ A35+ T1217
does some research to help support radio as a viable
Weekly Reach
Hours Tuned
communication medium.

FIGURE 1014

FIGURE 1015

Percentage of listening by location

Percent weekly reach by major demographic, by location

100
50%

All 12+

23%

25%

2%

90
80

Men 18+

41%

27%

30%

2%

73

72

71

68

70

82

80

77

73 75

58

60
Women 18+

57%

21%

20%

2%

50
40

68%

Teens 1217

6%

21%

5%

30
20

10 20 30 40 50 60 70 80 90 100

30

30

30

21

10

0
Home

Work

Auto

Other

All 12+ Adults 1834 Adults 1849 Adults 2554 Teens 1217

Auto

Home

Work

309

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Deliver the Message

SUMMARY

310

Television and radio media are

the most pervasive media in most
consumers daily lives and offer
advertisers the opportunity to
reach vast audiences. Both media
are time rather than space oriented and organized similarly in
that they use a system of affiliated stations belonging to a
network, as well as individual
stations, to broadcast their programs and commercial messages.
Advertising on radio or TV can
be done on national or regional
network programs or purchased
in spots from local stations.
TV has grown faster than any
other advertising medium in history and has become the leading
medium for national advertisers.
No other medium offers its creative capabilities; the
combination of sight, sound, and
movement give the advertiser a
vast number of options for presenting a commercial message
with high impact. Television also
offers advertisers mass coverage
at a low relative cost. Variations

in programming and audience

composition, along with the
growth of cable, are helping TV
offer more audience selectivity to
advertisers. While television is
often viewed as the ultimate
advertising medium, it has several limitations, including the
high absolute cost of producing
and airing commercials, low target audience selectivity, short
processing time, extensive clutter,
high selective exposure, and distrustful image.
Information regarding the size
and composition of national and
local TV audiences is provided
by BBM Canada and Nielsen. The
amount of money networks or
stations can charge for commercial time on their programs is
based on its audience measurement figures. This information is
also important to media planners,
as it is used to determine the
combination of shows needed to
attain specific levels of reach and
frequency with the advertisers
target audience.

The role of radio as an entertainment and advertising medium

has changed with the rapid
growth of television. Radio has
evolved into a primarily local
advertising medium that offers
highly specialized programming
appealing to narrow segments of
the market. Radio offers advertisers cost efficiency and low
absolute costs, reach and
frequency, target audience
selectivity, geographic coveage,
scheduling flexibility, creativity,
and image.
The major drawback of radio is
its weak creativity owing to the
absence of a visual image. The
short and fleeting nature of the
radio commercial, the highly
fragmented nature of the radio
audience, low involvement, and
clutter are also problems.
As with TV, the rate structure
for radio advertising time varies
with the size of the audience
delivered. The primary sources of
listener information are BBM and
RMB.

KEY TERMS
split-30s, 287
zapping, 288
zipping, 288
television network, 291
affiliates, 291
scatter market, 292
spot advertising, 293
station reps, 293

sponsorship, 293
dayparts, 295
cable television, 296
direct broadcast satellite
(DBS) services, 296
superstations, 296
infomercials, 297
television households, 300

program rating, 300

ratings point, 301
households using television
(HUT), 302
share of audience, 302
total audience, 302
audimeter, 302
People Meter, 303

image transfer, 306

average quarter-hour (AQH)
figure, 308
cume, 308
average quarter-hour rating
(AQH RTG), 309
average quarter-hour share
(AQH SHR), 309

Chapter 10

Broadcast Media

DISCUSSION QUESTIONS
1. Discuss the advantages of television as an advertising medium
and the importance of these factors to major advertisers such as
automobile companies or packaged goods marketers.
2. Television is often described as
a mass medium that offers little
selectivity to advertisers. Do you
agree with this statement? What
are some of the ways selectivity
can be achieved through TV
advertising?
3. Choose a particular television
daypart other than prime time
and analyze the products and
services advertised during this
period. Why do you think these

companies have chosen to advertise during this daypart?

4. Explain what is meant by zapping and zipping and how they
affect television viewing behaviour. Discuss some of the ways
that advertisers can deal with
these problems.
5. Discuss the advantages and
limitation of advertising on specialty channels. Discuss how
both large national advertisers
and small local companies might
use cable TV effectively in their
media plans.
6. Discuss the methods used to
measure network and local TV
viewing audiences. Do you think

the measurement methods used

for each are producing reliable
and valid estimates of the viewing audiences? How might they
be improved?
7. What are the advantages and
disadvantages of advertising on
radio? What types of advertisers
are most likely to use radio?
8. What is meant by image transfer in radio advertising? Find an
example of a radio campaign that
is using this concept and
evaluate it.
9. Discuss some of the factors
that media buyers should take
into consideration when buying
advertising time on radio.

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