Chapter 12 TV/Radio. Direct Response Television Direct Response – goods and services sold directly through television, often avoiding retail – Short form.

Chapter 12

TV/Radio

Direct Response Television

• Direct Response – goods and services sold directly through television, often avoiding retail–Short form - 30, 60, 120 sec commercials–Long form – infomercials up to 30 min.–TV home shopping (HSN, . . .)

• Media spending on DR up, while spending on traditional advertising is down

Broadcast Applications

• Local and Cable Television–Used for consumer DR advertisers to produce

inquiries, support other media, and sell goods and services.–Major consumer goods manufacturers like

P&G are using now–Services like Charles Schwab, Ex. 12-1, p. 273

–Home Shopping Network, QVC growing rapidly, Ex. 12-2, 12-3, pp. 274-275

Infomercials

• Growing in popularity

• Not cheap to set up• Need to test extensively infomercial example

• Video on demand penetration

TV in the Current Future

• Interactive Television–Ability to interact with the TV to buy–The original purpose of TV

Radio

• Program formats allow better targeting than TV

• Lower costs

• Rapid increase in the number of radio stations Ex. 12-5, p. 278

DVD’s

• Adding commercial messages to DVD’s covers cost of production

• Adds new distribution outlets

Basic Broadcast ConceptsRatings

• The cost of a commercial time period is based on its rating, the measure of its share of the total TV households viewing the show

• One rating point equals one percent of total households in market

• Gross Rating Points equal all the total rating points in a schedule

Basic Broadcast Concepts (cont.)• Commercial Lengths

–30 sec. most common

–120 sec. needed to tell DM story

–60 sec. needed for lead generation

–10-30 sec. support commercials may be appropriate, but not for key outlet

Basic Broadcast Concepts (cont.)Reach and Frequency

–Reach = no of different homes exposed to msg. in given time

–Frequency = how many times average viewer will see message in given number of weeks

• The more highly rated the show, the higher the cost. More important than reach and frequency are actual response rates, which represent a true return on the media dollar

Buying Time

–Measuring effectiveness of TV schedules

• Reach

• Frequency

–TV Schedules

–Market Performance

TV / Radio

Buying Time

• To buy time economically, ask about pre-emptible time and payment per inquiry (PI) and bonus-to-pay-out arrangements

Measuring effectiveness of TV schedules

• Depends on objective

• Know target market

• TV Schedules

–For best response, schedule commercials during fringe dayparts and programs with lower viewer involvement, like reruns, talk shows, and old movies

–The first and third quarters are the best seasons for television response

Market Performance

• Geographic locations may or may not be effective

• Test, Test, Test

Testing DR TV

• Test TV commercials in 2 to 5 markets for one or two weeks

• As few as ten commercials per week can give you a precise fix on how well the commercial is doing

• If it holds up, stay with it until it starts to taper off, and move on to other markets in the same methodical and measured way

Advantages and Disadvantages of Different Types of Stations

• Network – not common

–Adv - Reaches 95% of audience

–Disadv – few 60-120 spots avail, cost prohibit, telemarketing blockage, talent payments

• Spot TV – more used

–Cost effective

–Pick and choose best markets

–Labor intensive for national campaign

Advantages and Disadvantages of Different Types of Stations

• Network Cable

–Cost efficient

–Target offer to cable network audience

–Back-end better on cable than Broadcast TV

• Local Cable

–No two-minute breaks

–Rates aren’t cost-efficient

–Have to work with multiple operators

–Very fragmented audience

Advantages and Disadvantages of Different Types of Stations

• Syndication

–Difficult to preempt syndicated program

–Reaches 80-90% of country (almost as good as network)

–Easier to work telemarketing – predictable overall demand

–Allows product to program matching

–Usually only accepts 60 sec. spots

Creating for Direct Response TV

• Visual and action medium

• Need to get audience’s attention

• Write using scripts and storyboards

• Synchronize copy and visual

• Include timing in visual storyboard for outside evaluation

Creating for Direct Response TV

• Integrate the offer with the product or service so they reinforce each other in value and impression

• Show the 800 toll-free number or the Web address on the screen for at least 25 seconds, depending on the length of the commercial

Creating for Direct Response TV• Suggested criteria for evaluating storyboard

– Immediacy

–Clarity

–Lack of retail availability

– Increased value

–Limited options

–Early close

–Less is more

–Show and tell

Creating for Radio

• If you are not a good writer, get a good writer

• More personal

• Radio costs less than television and offers more targeted program formats

• The message and style of a 60-second radio commercial should be tailored to the format of the station on which it runs

• Keep radio commercials simple and intrusive.

• Use special sounds to arrest your listener's attention, but keep the main idea uncomplicated

Creating for Radio

• Radio audience more likely to accept conclusion firmly if get involved in deciphering the message

• However, make sure words and sounds are understandable and recognizable

• Work within a 60 second time frame, 30 sec usually not adequate

• Humor works well in radio

TV in the Multimedia Mix

• IMC

• Example is the Ryder campaign created by Ogilvy and Mather

–Description

–Print in vertical publications (appeals to a specific category of business)

–120 sec. TV commercial

–Effectiveness – increased responses by 245%

–Like SW bag campaign