Shared Flashcard Set

Details

BA Final
Principles of Broadcast Advertising Final Review
120
Business
Undergraduate 3
12/09/2008

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Cards

Term
advertising (specifically mass advertising)
Definition
what has been an integral component to our economic and social systems?
Term
"soft" sales
Definition
what did early print advertisements tend to be?
Term
three phases in the evolution of advertising
Definition

1. expansion

2. consolidation

3. scientific

Term
expansion phase of advertising
Definition

- characterized by improved transportation systems, notably railroads, which had the effect of expanding markets

 

- lasted from the early 1800s until the early 1900s

 

- literacy rates were increasing, so print ads could reach more people, led to a growth in magazines

 

- newspapers were and are largely local affairs, magazines depend on expanded markets

 

- creation of the first U.S. advertising agency in 1840

Term
1840
Definition
when was the first advertising agency created in the U.S.
Term
Consolidation phase of advertising
Definition

- ad agencies assuming new functions, including copywriting, media selection, and a limited amount of market analysis

 

- lasted from the early 1900's until the 1930's

 

- saw the emergence of the so called "Truth crusade" in advertising, because there were no standards or pressures to keep some unscrupulous advertisers from making outlandish claims

 

- creation of the Audit Bureau of Circulation (ABC) in 1914; they served as an independent and unbiased check or reporter of actual circulation figures for papers and magazines

Term
"truth crusade" in advertising
Definition

- there were no standards or pressures to keep some unscrupulous advertisers from making outlandish claims

 

Term
1914
Definition
when was the the Audit Bureau of Circulation (ABC) created?
Term
Audit Bureau of Circulation (ABC)
Definition
they served as an independent and unbiased check or reporter of actual circulation figures for papers and magazines
Term
scientific phase of advertising evolution
Definition

- characterized by research, extensive market analysis, and consumer testing

 

- beginning in the 1930's and continuing until today

Term
KDKA in Pittsburgh in 1920
Definition
what was the first conventional radio station and when was it created?
Term
how did early broadcasters make their money?
Definition
they were involved in the manufacture of radio broadcast equipment
Term

"toll calling"

(long distance calling)

Definition
  • a phone sytem set up by AT&T, whereby a person could call and talk to another person in another part of the country
  •  called this because there was a fee attached
Term
"toll broadcasting"
Definition
a person would go into a broadcast booth, pay a fee, and talk to many
Term
WEAF (AT&T's radio station)
Definition
which station broadcast the first radio advertisement in 1922?
Term
radio networks
Definition
since advertisers wanted to reach a national audience, it led to the creation and growth of?
Term
radio networks (defintion)
Definition
a combination of network owned stations and so-called affiliated stations linked together across the country
Term
the 1930s
Definition
most radio commercials were live until when?
Term
"spot" advertising
Definition
you didn't have to buy only on the local station, or only on the national network, you could buy in geographic regions, or only urban settings for example
Term
routing chart
Definition
[image]
Term
routing chart details
Definition
  • As you can see, two lines lead from "local advertiser", one to the Advertising Agency, one to the Medium.
  • In most cases, a local advertiser will go directly to the radio or television station.
    • Occasionally, a large business in a bigger market may employ the services of an agency, but this is usually the exception.
  • A national advertiser, on the other hand, always works with an agency.
    • The Advertising Agency is connected to: research, medium, station representative.
  • Some large full service agencies will conduct there own, in-house research.
  • Others might use an independent research firm for a specific task.
  • The agency can buy time for the client at the station level or network.
  • A station representative (station rep) is used to make regional, or, "spot" buys.
    • For example, it wouldn't make sense for Goodyear tires to advertise a snow tire in the south.
      • Rather than individually contact 50, or 100, or more stations in the snow zone they do business with a station rep.
    • The station rep essentially acts as an extension of the sales department for a broadcast outlet.
    • They maintain a list of station clients and up-to-date rates.
  • Broadcasts are then made on a local, regional (spot), or national (network) level.
Term
what is the primary goal of American broadcaters?
Definition

to turn a profit
 

Term
what to radio and TV stations (Broadcasters) sell to advertisers?
Definition
audiences
Term
how do sellers reach buyers?
Definition
advertising time
Term
factors to set advertising rates used by broadcasters
Definition
  • market size
  • condition of the local/national economy
  • size and demographic composition of the audience
  • degree of competition
  • management
  • variables:
    • time classification
    • program appeal
Term
"drive time"
Definition
  • AM and PM timeframe (typically 6-9, 3-6, M-F)
  • when people are getting ready for work or school and are traveling
  • most expensive time classification because it delivers the largest audience
Term
the largest audience doesn't necessarily mean what?
Definition
  • the highest rates.
    • a show with a large number of listeners/viewers may actually cost less than another program with a smaller but more desirable audience
Term
when do advertisers tend to spend more?
Definition
  • in a robust economy
    • not when things are heading south
Term
the "Wal-Mart approach"
Definition
  • adopts the strategy of moving lots of product, in this cast air time, making only a small profit per unit
Term
the "Wal-Mart approach" opposite
Definition
  • high markup but sell less time over all
Term
what is CPM and what does it stand for?
Definition
  • Cost per thousand
    • M represents 1,000 in Latin
Term
CPM (definition)
Definition
  • calculation for what it will cost to reach a thousand units, whether the units are individual people, households, women age 24-35, etc
  • provides a quick snapshot of the real cost of advertising
Term
how to calculate CPM
Definition
  • simply divide the advertising cost by 1,000 (representing a thousand people, households, women, etc.)
Term
order of CPM from most to least expensive
Definition
  • prime time TV (top)
  • radio
  • newspapers
  • outdoor adveristing
  • billboards
  • internet adveristing (bottom)
Term
advertising vehicles
Definition
designations of advertising buying plans
Term
three broad categories of advertising vehicles
Definition
  1. network sales (largest advetisers)
  2. spot sales (main source of TV station revenue)
  3. local sales (account for 75% of radio sales)
Term
subcategories under network sales
Definition
  1. sponsorship
  2. up front
  3. scatter
  4. oppotunistic
Term
sponsorship
Definition
  • grew out of the old days of radio when a single company would pay for all the production costs of a program and pay for all the air time for the program, and, in return, be the primary or sometimes exlsuive advertiser
  • expensive
Term
up front
Definition
  • refers to buying time on a show before the program is aired
  • risky if a new show and it's a bad one
Term
scatter
Definition
  • the advertiser buys time on different networks, during different times, on different programs
Term
opportunistic
Definition
  • trying to take advantage of a broadcaster, network or station, by holding out until the last minute to buy time
  • broadcasters will reduce advertising rates for unsold time the closer that time is to airing
Term
spot sales
Definition
  • buying in selected markets
  • use a station rep to solicify (solidfy?) this
Term
what do sales reps do?
Definition
  • operates as an extension of the sales department of the stations they represent
  • function as a link between ad agencies and broadcast stations
Term
how are sales reps paid?
Definition
by commission on spot sales. 5-15%
Term
what was the earliest form of audience measurement?
Definition
fan mail during the early days of radio
Term
what did Crossley base its audience on?
Definition
the recall technique
Term
the recall technique
Definition
people were called at home and asked to remember what program or ad they had listened to earlier
Term
coincidental telephone technique
Definition
  • asked people what they were listening to at the time they picked up the phone
Term
Nielsen Company
Definition
  • they first provided radio information, later discontinued to focus on TV
  • developed the "audimeter", a largely passive device whereby the household would load a "paper tape" into a special box affixed to their ardio receiver
  • introduced the "people meter", an electronic device connected to the TV set that automaticall transmitted data back to the company
Term
Arbitron
Definition
what is the dominant audience measurement firm in radio that uses both phone calls and paper diaries to colelct data?
Term
what is key to successful audience measurement?
Definition
sampling
Term
what is often used in collecting audience data?
Definition
paper diaries
Term
advantages and disadvantages of diaries
Definition
  • much cheaper than metering technologies
  •  
  • accuracy of data
Term
rating
Definition
percentage of total potential audience turned to a specific program/station
Term
share
Definition
percentage of homes using television (HUT) tuned to specific program/station
Term
HUT
Definition
  • households using televisoin
  • an estimate of the number of homes with the TV set on
Term
PUR
Definition
persons using radio
Term
SIU
Definition
sets in use
Term
AQH
Definition
average quarter hour
Term
DMA
Definition
  • designated market area
  • Nielsen term
Term
ADI
Definition
  • area of dominant influence
  • Arbitron term
Term
how to calcualte a program's rating
Definition
divide the number of homes tuned to a program/station by the total number of TV homes
Term
how to calcualte a program's share
Definition
  • divide the number of homes tuned to a program/station by the total number of homes using television (HUT)
Term

share (1st blank)

rating (2nd blank)

Definition

 

__________ number will always be larger than the ______ number

Term
who do audience measurement companies sell their data to?
Definition
  • broadcasters
  • advertisers
  • analysts
  • manufacturers
  • others
Term
groups that regulate broadcast advertising
Definition
  • FCC
  • FTC
  • Department of Justice
  • FDA (Federal Drug Administration)
  • Surgeon General Office
  • Executive Branch of Government
    • controls Department of Justice
    • controls Office of Telecommunications Policy in the Commerce Department
Term

Department of Justice

Definition
gets involved especially in maters pertaining to anti-trust
Term
FDA (Federal Drug Administration)
Definition
focuses on packaging and labeling of food and drug products
Term
Surgeon Generals Office
Definition
might step in on matters relating to public health and safety
Term
National Association of Broadcasters (NAB)
Definition
  • established in 1923
  • principle trade assocation for broadcasters
  • representes the broacast industry before Congressional Committees
Term
who does the FCC and FTC lobby on behalf of?
Definition
the industry, and helps stations interpret goverment rules and regulation
Term
what does the Network Standards and Practices Department do?
Definition
  • screen all network commercials for acceptability
    • three actions
      • accept commercial
      • accept commercial with revisions
      • reject commercial
Term
where does the pressure put on the Standard and Practices come from?
Definition
  • media (the press)
  • affiliates
  • the public
Term
two problems associated with FTC's regualtion of broadcast advertising
Definition
  1. can't use prior restraint (first amendment does apply)
  2. time and cost associated with an investigation
Term
three types of advertising agencies
Definition
  1. house
  2. modular (boutique)
  3. full service
Term
house advertising agencies
Definition
  • owned and run by the manufacturer or company
  • advantages:
    • product familiarity
    • availability
    • cost saving
  • disadvantages:
    • got to pay staff all the time, even if not working on project
  • very few of these
Term
modular (boutique) advertising agencies
Definition
tend to specialize in one or a limited number of advertising aspects
Term
full service advertising agency
Definition
offers a complete array of services from creative, to research, media buys, and evaluation
Term
how are advertising agencies paid?
Definition
  1. commission
  2. fee (hourly, cost + profit, fixed)
Term
departments in an advertising agency
Definition
  1. account management (account executive)
  2. creative
  3. pre(production)
  4. research
  5. media
  6. merchandising
  7. account services
Term
account management (Account executive)
Definition
serve as the liason between the agency and the client helping to coordinate various aspects
Term
creative
Definition
develops copy and design art
Term
pre(production)
Definition
serves as a link between creative and outside producers
Term
research
Definition
market and consumer analysis, media and message research, product testing (usually done by manufacturer)
Term
media
Definition
plan and make media buys for client
Term
merchandising
Definition
handles product tie-in's, also packaging, coupons, samples
Term
account services
Definition
liason between account management and production operations
Term
five categories of talent
Definition
  1. professionals
  2. celebrities
  3. nonprofessionals
  4. extras
  5. musicians
Term
professionals
Definition
people who seek income by appearing in ads
Term
celebrities
Definition
  • movie stars, sports and business figures, former politicans that appear in ads
  • some can be difficult to direct
Term
SAG (Screen Actors Guild)
Definition
  • started in 1933
  • has jurisdiction over motion pictures, filmed TV entertainment, educational and industrial films, and all filmed television commercials
Term
AFTRA (American Federation of Radio and Television)
Definition
  • started in 1936
  • has jurisdiction over radio commercials, a/v recordings, local live television, and video taped commercials
Term
nonprofessionals
Definition
  • usually these are customers or maybe business employees
  • typically get paid union scale even though nonunion
Term
extras
Definition
  • people who appear in the background of television ads without any lines
Term
musicians
Definition
  • either on- or off-camera
  • many are also members of their respective unions like professionals
Term
identifiable trends in advertising
Definition
  1. mergers and buyouts
  2. increasing media fragmentation (include internet, phone)
  3. increased clutter
  4. growth of retail channels (e.g. television shopping networks)
  5. related to #2, increasing difficult in reaching younger consumers
Term
who traditionally makes more in advertising, men or women, when doing the same job?
Definition
men
Term
media planner
Definition
advertising job in which women make the same or even more than men
Term
positioning strategies from the video
Definition
  • Pork, as "the other white meat"
  • other companies in video:
    • Yoplait
    • Milk
    • HBO
    • Liquid Plumer
    • Grey Poupon
    • Evian
    • Johnson and Johnson
Term
what is positioning?
Definition
  • how advertising affects perception
Term
how much did super bowl ads cost last year?
Definition
over $2 million
Term
three largest agencies and their Headquarters
Definition
  1. Omnicom Group - New York - made $12,694,000 in 2007
  2. WPP Group - London
  3. Interpublic Group of Cos.- New York
Term
positioning (Fred)
Definition
  • changes perceptions
  • doesn't have to change product, just perception
Term
perceptual mapping
Definition
how consumers see different products
Term
market segments
Definition
products positioned toward specific group
Term
repositioning
Definition
  • product is "new"; existing product fixed
    • Johnson's Baby Shampoo - football palyers
    • Arm & Hammer Baking Soda - fridges and toothe paste
Term
positioning video notes
Definition
  • easy to change perceptions, not minds
  • positioning requires market research
    • perceptual mapping - rating competing brands
  • market segements - kids, health
  • emotions - protect family; exhilieration
  • social approval - product that lots of people use
    • testimonials -"most popular", #1, best-selling
    • Diamonds - "everlasting love"
  • competition - see differences between products
  • price - high quality = high price
  • name - tells people why to buy product in name
  • unique attribute - shape, size, color
    • new attribute added to existing product - only temporary
  • positioning is used everywhere
Term
FCC (Federal Communications Comission)
Definition
regulates radio and television broadcasting
Term
FTC (Federal Trade Commission)
Definition
  • regulates advertising content
    • like every government body, depends on Congress for budget
    • its work might be indirectly influenced by lobbying efforts in Congress
    • relies heavily of public and competition to serve in a "Watchdog" capacity since they can't screen all ads
  • charged with protecting the public from unfair and deceptive business practices, including false and misleading advertising
Term
payola
Definition
an illegal payment for promoting a record or other product on the air
Term
plugola
Definition
variation of payola in which a commercial product is gratuitously mentioned during an entertainment program
Term
stuff the FCC requires/stipulates
Definition
  • a station must disclose the material terms of the contest
  • that a sponsor of a politcal broadcast be clearly identified
  • mention a sponsor in an ad
Term
puffery
Definition
broad, vague, laudatory language
Term
role
Definition
the activites a person is expected to fulfill according to the people around him or her
Term
status
Definition
what each role carries that reflect the position given to it by society
Term
reference groups
Definition
groups that have direct or indirect influence on a person's behavior or attitude
Term
membership group
Definition
when a person belongs to a reference group that has such a direct influence
Term
aspiration group
Definition
one to which the individual wants to belong
Term
dissociative group
Definition
one whose behavior and values a person rejects
Term
broadcast campaign
Definition
carefully prepared strategy to achieve a specific goal for the advertiser
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