Advertising |  |
Chapter Summary| Commercial practices of each telecommunications entity are different, but generalizations about what might happen at a typical small commercial radio station, large commercial TV station, commercial network, basic cable TV network, and an Internet site summarize the various facets of advertising.
Small radio stations depend on advertising for most income. Sometimes their ratings are so low that they have to use concept selling. Their commercial rates are much lower than those of TV stations, with commuter hours being the highest rated times. Small radio stations give frequency discounts and have particularly good deals for local advertisers who are likely to buy repeated spots. They are particularly apt to use trade-out, orbiting, TAP, and VPI strategies. Members of the sales force may have other jobs within the station, such as disc jockey or general manager, and most of the selling is to the local community in the form of local spots, although stations owned by large conglomerates get national advertising through them. Some radio stations are part of LMAs. The radio station staff usually writes and prepares local commercials as well as any needed PSAs or promos. Viewers are likely to complain if the station's ads are too frequent or too loud.
A large TV station receives most of its income from advertising but may also rent out its facilities, especially for commercial production. The most expensive time on its rate card is evening prime time, and it is interested in selling mostly local and national spots. The station may try to push run-of-schedule buying as a means of filling its commercial time and may use a grid rate card or the bump system. A sales staff covers the local territory, but a large TV station also hires a station representative or uses the services of its corporate owner to obtain national or regional ads. Most of the commercials are delivered preproduced, but if the station does tape a commercial for an advertiser, it charges extra for that service. Stations air PSAs and promos as time permits. Viewers are likely to become irritated by commercial interruptions and may complain about misleading or vague commercials. The economics of stations are affected if they must give lowest unit charge to politicians.
Commercial networks, too, depend on advertising for most income. They do not publish formal rate cards, but work closely with advertising agencies to supply programming (for the ad agencies' clients) that will sell the most ads at the highest rates possible, preferably upfront. CPM for commercial networks is the highest or all electronic media, and prime time is its highest selling regular time. Most of the buys are network, and sometimes the networks have to provide make-goods. Network sales staffs deal with ad agencies, both full-service and modular. The commercials that appear on network TV are meticulously and expensively produced, usually by independent production companies, not the network itself. Networks are turning more and more to product placement and merchandising. The heat of advertising criticism is directed toward networks because they are so visible. Criticism includes the questioning of the very existence of an advertising-based entertainment structure. Other criticisms are directed at the advertising of personal products and liquor, the negative effects of advertising-induced materialism on society, the validity of testimonials and demonstrations, the political power of commercials, and the various issues involved with the inclusion of commercials within children's television programs. Commercial networks are opposed to advertising on public broadcasting.
Basic cable TV networks are becoming more and more reliant on advertising, although they also receive money from subscribers. Usually they do not have a set rate card but sell at what the market will bear, sometimes using concept selling. They deal with advertising agencies and go for national commercials, although some regional sports networks cablecast regional spots and sometimes advertisers buy entire programs. Because many cable networks are owned by the same company, they often cross-promote. Cable networks receive some of the same complaints about ads that commercial networks do, but the main complaint against them is that subscribers must pay for the service and also watch commercials. In the future, different ads may be delivered to different households and people may be able to click on something seen on the screen to purchase it.
Internet sites are starting to receive money from advertising, but obtain more from direct sales. There are different rates for banners, links, and other forms of ads, but the rate structure is not settled down yet. Because Internet ads are available all the time, many traditional advertising concepts such as dayparts and spots do not apply. Internet sites approach ad agencies to encourage them to make Internet buys for their clients. The ads that appear are mostly graphics intensive and use interactivity. Just how the Internet advertising will fit into the entire advertising picture, including program delivery, is unsure at the moment.
|
|
|
2003 McGraw-Hill Higher Education