Transcript Cady Shaw`s Powerpoint

The Why Behind the Buy
In 1999, KOTV learned that the Tulsa
World had garnered $113 million in
retail sales in the Tulsa DMA for
1998. We decided our goal for 2000
was to take at least 1% of that
business and bring it to television.
This presentation was created to
educate customers about newspaper.
Presentation Outline
I.
Pros of Television
II.
TV is Bigger, Brighter, Better!
III.
TV is a “Way of Life”
IV.
Look at Tulsa Market
V.
The Future of Newspapers?
VI.
Why KOTV?
VII.
Customer Testimonials
VIII.
TV is Your Ticket to Success!
The Pros of Television
The Pros of Television
1. Television Is An Exciting Medium!
When was the last time a newspaper ad
made you laugh? And when was the last
time you watched the Super Bowl for the
game and not the new TV commercials?
The Pros of Television
2. Television Has A Huge Reach!
In the Tulsa DMA, there are only 3 places to
get local television news and 98.3% of all
Tulsa households have at least one TV.
The Pros of Television
3. Television Can Target Specific Audiences.
Whatever the demo, TV can reach it.
People are loyal to programs and stations.
Qualitative research helps television
define those viewers.
The Pros of Television
4. Television Is An Intrusive Medium!
People tend to sit and do nothing but watch
TV. When was the last time you sat and
listened to the radio? Ads on television can
get attention in a variety of ways and they
don’t have to rely on size or adding color.
Your ad is always a “full page” on
Television. You are the only thing on for
that 30 seconds.
The Pros of Television
5. Television Is Very Cost Efficient!
TV morning shows reach more people than
radio’s, yet their advertising cost is less. It is
much less expensive to build frequency in
TV than newspaper.
The Pros of Television
6. Television Has The Power Of Sight And
Sound!
TV has TWO chances to get the consumer’s
attention as opposed to newspaper’s one.
While the consumer may not be looking at
your ad on TV, they can still hear it.
The Pros of Television
7. Television Has Less Clutter Than
Newspaper!
In the typical 1/2 hour program, there are
less than 20 commercials. How many
hundred’s of ads is your business competing
with in the newspaper on any given day?
The Pros of Television
8. Television Is Creative!
With TV, your opportunities are limitless.
Unlike newspaper, television does not limit
by page size or color.
The Pros of Television
9. Television Has Built In Credibility!
People tend to have the mentality that, “If
you see it on TV, then it must be true” and,
“If a business can afford to be on Television,
they must be successful”.
TV is BIGGER,
Brighter,
Better!
"TV Remains Dominant
News and Product Source"
---Roper Starch Survey, March 1997
80
69
Television remains American's #1
source of news and product
information. In the nearly four
decades of this ongoing Roper
study, television's lead as a news
source is the second largest ever!
% of Adults
60
37
40
14
20
7
5
0
Television
Newspapers
Radio
Other People
Magazines
"TV is the Most Likely Medium
for Learning About New
Products or Brands"
---Roper Starch Survey, March 1997
1997 Roper Study
80
1994 Roper Study
62
55
% of Adults
60
More Americans cite
television as the most likely
way they learn about
products or brands than any
other source!
40
20
15
20
12
12
4
0
Television
Newspapers
Magazines
Radio
5
"TV is the Most
Credible & Persuasive
News Source in America"
---Roper Starch Survey, March 1997
Most Credible News Source
80
% of Adults
60
70
Most Persuasive News Source
Over half the public considers
television to be the most
credible news source, more
than doubling newspapers'
credibility! In addition, nearly
three-quarters of all Americans
consider television to be the
most persuasive medium!
53
40
23
14
20
7
4
4
0
Television
Newspapers
Radio
Magazines
7
TV Is A "Way of Life"
TV Is A "Way of Life"
Television is an ideal advertising
medium because it is used by
practically every segment of the
population and is authoritative,
exciting and influential.
TV Is A "Way of Life"
Television encompasses all of the
senses using sight, sound and
motion. It offers advertisers unlimited
creative flexibility and high audience
involvement.
TV Is A "Way of Life"
Television is more than a medium of
entertainment, information and
advertising, it is a major part of
today’s social and cultural structure.
TV Is A "Way of Life"
Television is our major source of
news and it’s the leisure activity with
which we spend the most time.
The Average Household Watches
7 hours and 15 Minutes
Of Television A Day!
Source: Nielsen Media Research
Let's Look at
The Tulsa Market
With The Tulsa World Circulation Trending Down
and
Advertising Cost Skyrocketing . . .
Is The Tulsa World still giving you Bang for YOUR Buck?
100
(% Change)
80
60
The circulation of The Tulsa World
has decreased 15% from 1994 to
1999 while the cost of advertising
has increased 49% in the same
time period. Can you afford to
reach 15% fewer people while
paying 49% more to do it?
40
Circulation
20
Advertising Cost
0
-20
1994
1995
1996
1997
1998
1999
Source: Newspaper Performance Report
Prepared by RAB 1999
The Future Of
Newspapers?
The Future of Newspapers?
Decreasing Circulation
In most cities and towns throughout the
country, the circulation of the local newspaper
has been dropping every year. Data from
Market Statistics, Inc. show that of the 211 TV
markets in the US, 72% showed declines in a
newspaper’s household coverage in the past
five years, while only 18% showed gains.
The Future of Newspapers?
Declining Reach and Readership
There has been significant erosion in the
number of people reached by newspapers and
the time people spend reading newspapers.
This erosion includes every demographic
group.
The Future of Newspapers?
Escalating Costs
According to Editor & Publisher’s International
Yearbook, a newspaper’s cost per 1,000
circulation (CPM) has more than doubled over
the past decade. This makes newspapers one
of the most expensive advertising mediums
today.
The Future of Newspapers?
Clutter
While the newspaper industry often accuses
the electronic media of commercial clutter, the
facts speak otherwise. According to LNA, 64%
of a newspaper’s content is advertising, 36% is
“other” than advertising. In this environment,
it is very difficult for any one advertiser to
dominate.
The Future of Newspapers?
An Inability to Reach New Prospects
Reaching new customers is vitally important to
any retailer. Yet newspapers tend to be read by
the same people issue after issue. This means a
retailer’s advertising is being read only by
current customers, and it makes it difficult, if
not impossible, for that retailer to expand the
customer base.
The Future of Newspapers?
Lack of Coverage
The circulation of a metropolitan newspaper
falls mainly in its inner city and its immediate
trading zone. In order to attract concentrated
suburban markets with newspapers, an
advertiser has to buy several local weekly
newspapers – a very expensive media buy.
The Future of Newspapers?
Non-Intrusive
Newspapers don’t afford the sound, motion,
and emotion of the electronic media. As a
result, newspaper advertising doesn’t have the
intrusive selling power of advertising in
electronic media.
The Future of Newspapers?
A Decline in Frequency of Advertisers
The number of times an advertising message is
seen or heard directly affects the potency of
that message. With fewer newspapers in a
community there are fewer opportunities for an
advertiser’s message to be seen with frequency.
The Future of Newspapers?
Frequency At What Expense?
While it is possible to build frequency by using
every daily and weekly newspaper in the
market, the expense can be prohibitive.
The Future of Newspapers?
Lack of Emotional Involvement
The most compelling advertising is one that
grabs the emotions of its audience.
Newspapers lack the emotional involvement of
the electronic media. One-dimensional
newspaper advertising simply can’t grab-and
hold-a reader’s attention the way electronic
media can.
Why KOTV?
Why KOTV?
 KOTV’s mission is a commitment to quality
news, entertainment programming, and
community service. KOTV’s staff of dedicated
employees achieve this goal by providing our
viewers with the best on-air product in the
market and by serving Eastern Oklahoma with
our community outreach campaign Six in
Touch.
Why KOTV?
 KOTV was the first television station to
broadcast in Tulsa. On October 15, 1949,
KOTV opened for business in the former
garage of International Harvester. KOTV and
CBS were number one back then, and, as we
have celebrated our 50th anniversary, we are
still number one!
Why KOTV?
 Today, KOTV broadcasts more locally
produced news than any other Tulsa television
station - six hours per day. The July 2000
Nielsen rating service proved once again that
KOTV is the most viewed station from sign-on
to sign-off.
Why KOTV?
 Why KOTV? We offer top rated
programming and sports that deliver desirable
audiences, a tie to the local community
through six hours of local news, and a
commitment to listen to and act upon the
concerns of our community. We are here to
be partners with you and your business
because we know that KOTV’s success
depends on your success.
Sample Weekly TV Schedules
Client XYZ
Persons 18-49
Six In The Morning
M-F 6-8am
2x
Six This Morning II
M-F 9-10am
2x
Maury Povich
M-F 3-4pm
1x
Inside Edition
M-F 11:37pm-12:07am
2x
Craig Kilborn
M-F 12:07-1:07am
2x
WEEKLY TOTALS
Announcements
Gross Impressions (P 18-49)
Frequency
9
79,000
2.4
Cost
$1,040
Sample Weekly TV Schedules
Client XYZ
Persons 25-54
Morning Update
M-F 5:30-6am
1x
Six In The Morning
M-F 6-8am
2x
Maury Povich
M-F 3-4pm
2x
Inside Edition
M-F 11:37pm-12:07am
2x
Late News Repeat
M-F 2:07-2:37am
2x
WEEKLY TOTALS
Announcements
Gross Impressions (P 25-54)
Frequency
9
99,000
2.5
Cost
$1,045
Customer Testimonials for KOTV, Channel 6
Customer Testimonials for KOTV, Channel 6
Broken Arrow Ace Hardware
In 1998, Broken Arrow Ace Hardware was
spending their advertising budget on print and
direct mail pieces. This year, owner Renee
Maxwell, rethought her advertising plan. She
reduced her number of column inches and inserts
in direct mailings and began to spend money in
the broadcast industry. YTD, the Broken Arrow
Ace Hardware is up 25% from 1998 and she
attributes her success to the power of television.
Customer Testimonials for KOTV, Channel 6
Thomas Cadillac/VOLVO
Thomas Cadillac/VOLVO had used print
advertising extensively in the past. Then, in
month of August 1999, they did not advertise
in any print medium and focused directly on
television. They surprised themselves and
doubled their sales in from August 1998 to
August 1999.
Customer Testimonials for KOTV, Channel 6
Wireless Concepts
In 3rd quarter 1999, Wireless Concepts began
a “trial” television run on KOTV. Lance Maxey,
the owner, began to see results with television
and began trimming down column inches on
a monthly basis. As Lance begins 4th quarter
he has eliminated his print advertisements in
the local papers and has focused his dollars in
broadcast, cable and radio.
TV Is Your
TICKET
To Success!
The Why Behind the Buy
Presented by:
Cady Shaw
Research Director
KOTV