Transcript Sales & Advertising

Chapter 9

Sales is ubiquitous in electronic media jobs
▪ Talent Agents
▪ Producers
▪ Crew members (Recent grads)
 However, sales occurs mostly
▪ When companies try to sell
▪ Products or services
 To customers
 Or Each other
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Stations, cable operators, & networks
 Want to introduce maximum number of
commercial spots
▪ Without jeopardizing appreciation of the program
content for audiences
▪ Or the effectiveness of commercials for advertisers.
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Media to Customer Sales
 Companies gain revenue through numerous ways
▪ Movie companies
▪ Tickets, concessions
▪ Internet Providers
▪ Access to the internet
▪ Satellite Radio
▪ Access to commercial free audio channels
▪ Cable / Satellite TV + phone
▪ Phone, TV channels, & Internet service
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Wheeling and Dealing….
 Tactics to get the most out of your wallet!
▪ 3 free months of premium channel (HBO, Showtime, etc)
▪ If you sign up for a year
▪ DVR & HDTV free for higher package purchase
▪ Deals for bundle plans
▪ Buying more than one service from a company
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Public Radio & TV
▪ Would you pay for something others get for free?
 These stations often seek ways to generate
revenue over the air
▪ Fundraisers
▪ Often Successful, but can be irritating to audience
▪ Printed mailers, wine tastings, concerts, etc
▪ Companies work with each other to help generate revenue
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Media to Media sales
▪ Renting facilities
▪ TV/Movie company renting studio to production company
▪ Syndication
▪ Cash –
 Station pays full syndication cost for programming
▪ Barter –
 Station pays nothing syndicator gets ad revenue
▪ Cash + Barter –
 Station pays some cash and splits ad revenue
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Cable Affiliates
▪ Cable networks use reps
▪ To convince cable companies to include their stations
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Broadcast TV
▪ Networks pay stations to air content
▪ Keep rights to sell ads during programs
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Movies
▪ Decide what to show
▪ Through trailers, pitches, blind bidding
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The Nature of Advertising
▪ Most ads don’t involve direct sales to customers
 There is no guarantee consumers will view ads
▪ What are ways that people are influenced to buy
▪ There have been instances of increased sales
▪ During ad campaigns
 Leading to belief ads are effective
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Convincing advertisers to use your medium
 Potential eyes and ears
▪ “Use our station and reach 10 million viewers”
▪ This can be convincing to someone trying to push a product
 Concept selling
▪ Small stations play up the “target audience” they reach
▪ Audience is small but very specific
 Sales Reps
▪ Staff calling local businesses to sell ad space
▪ This often includes people with other jobs
▪ (dj’s, general managers, etc)
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The Role of Ad Agencies
 Full service
▪ Oversee all aspects of ad campaign
▪ Research, development, production, placement
 In house
▪ Where ad campaigns are developed by company staff
 Boutique
▪ Oversee only specific elements of an ad campaign
▪ Ad development OR production OR placement
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Ad agencies handling large national accounts
 Determine the best media mix for clients
 Allocate budgets among the major media.
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Billings
 The amount of advertising media charged.
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Traditional Advertising
 Spot buying
▪ Radio/TV Commercials running 15, 30, 60 seconds
▪ Radio spots vary in placement
▪ TV spots are more definite
 Program buying
▪ Advertisers pay production cost of program
▪ Their commercials are aired during breaks
 Network buying
▪ Ads air during that program everywhere it’s aired
 National
▪ Ad is placed on various stations/times across the country
▪ To target specific audience
 Regional
▪ When ads are placed in areas where target audience is
▪ Tractors, beach accessories,
 Local
▪ Used primarily by businesses serving local area
▪ Used car dealers, restaurants, etc
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Network advertising
▪ Includes commercials placed by major advertisers intended for a
national audience.
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National spot advertising
▪ When an advertiser wishes to reach only selected geographical
regions of the country.
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Local advertising
▪ Includes commercials placed by local businesses and advertising
agencies.
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Syndicated barter advertising
▪ Commercials placed by national advertisers inside various
syndicated programs on local TV stations around the country.
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Nationally produced commercial
 Can be inserted within local programming,
▪ Such as a local newscast.
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Locally produced commercials
 Can be inserted in a syndicated or network program.
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Promos
 Promotional announcements.
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Separation guidelines
 Direct competitors are not supposed to be scheduled side-
by-side within the same break.
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Proof of performance
 Evidence that advertiser contracts have been carried out.
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Product Placement
▪ Fairly old practice (especially in movies)
 Virtual Ads
▪ Where ads are not actually in the program
▪ They’re digitally placed later
 Product integration
▪ Where the product is a part of the storyline
▪ Main character is saving for a Mac computer
 Infomercials
▪ Entire program relates to a product
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Until 1984
 FCC prohibited program-length commercials
 Productions that interweave program and
commercial material.
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After the ban was lifted
 A flood of infomercials followed
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Product placement or product integration
 A business model
▪ That ignores program interruptions and zapping.
 Consumer advocates are concerned
▪ About the lack of disclosure for unsuspecting audiences
▪ They do not realize that a portion of the program content is a
“commercial”
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Interactive Internet Advertising
 Keyword searches
▪ Where ads appear based on words entered in searches
 PPC (Pay per click)
▪ Companies pay each time their ad is clicked on the side
 Other Ads
▪ Banner
▪ Appear at top or side of web pages
▪ Pop-up
▪ Appear on page covering content until clicked off
 Web banner advertising
▪ The most popular among serious advertisers
▪ Used to notify customers of a product or service.
 Impression
▪ When a web page is loaded into a web browser.
 Click through
▪ When a viewer clicks a banner and is directed to an advertiser’s web site.
 Cookie
▪ Stores information on a user’s computer that web services can retrieve
and use later.
 Viral marketing
▪ When content is passed from user to user in chain-letter style via e-mail.
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Conventional media
▪ Are beginning to expand their services
▪ including mobile audiences.
 This type of advertising
▪ Commonly seen as a
▪ Mobile banner or mobile poster.
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Advertisement Production
 Radio
▪ Usually created by the radio station staff
 TV
▪ More elaborate, sometimes prepared by TV station
▪ Sometimes produced by ad agencies
 Agencies
▪ Often develop ad concepts and oversee production
 Internet
▪ Various in format
▪ Can be TV spots or graphic based
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Advertising to Children
 Ads/Programs
▪ Host selling
▪ Where hosts of kids shows plug products during the show
 FCC guidelines
▪ Over the years there have been various rules
▪ Preventing hosts/stars from plugging products
▪ Created islands (black space between ad and show)
 Time for ads
▪ Has gone from 16 to 9.5 minutes per hour
 Toy-based programming
▪ Programs where a toy was the star of the show
▪ Show was designed to sell the toy
▪ Parents felt show was 30 min commercial
 Content of kids commercials
▪ Often criticized for sugary foods
▪ Sound effects that make it more exciting to kids
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Other Controversial Advertising
 Deceptions
▪ Ads that are misleading to the viewers
 Testimonials
▪ When starts support a product they may not be familiar with or
use to enhance their own performance
 Types of products
▪ Cigarettes, liquor, condoms, etc
▪ Are there any products you feel should be banned? Why
 Political ads
▪ Often presented in a biased fashion
▪ Supporting media show their candidate more positively
Some legal products and services that appear in
print and on billboards never appear in electronic
mass media.
 Congress banned the broadcasting of cigarette ads
in 1971 and later extended the ban to all tobacco
products.
 In 1996, TV stations began accepting advertising for
hard liquor products.
 Before 1999, federal law prohibited advertisements
for casino gambling.
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Plugola
 A conflict of interest
▪ Occurs when a station or one of its employees uses or promotes on
the air something
▪ In which the employee has an undisclosed financial interest.
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Payola
 Direct payment for inserting plugs.
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Double billing
 When dealers and stations conspire
 To bill higher for advertising than the dealer actually paid.
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Clipping
 When affiliates cut away from network programs
 Prematurely to insert commercials of their own.
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Niche
 Content that focuses more on specialized “target
audiences” rather than a single, homogeneous mass
audience.
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Equivalent substitutes
 When a customer finds two or more brands equally
satisfying and therefore easily substituted.
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Brand differentiation
 Leads to destructive pricing wars among competitors.