TV/ Radio Advertising
Advertisement is all about getting to convince potential consumers to take your product or service and leave those from your competitors. Mostly one does so by appealing to the quality of the brand, the brand itself, brand identity, brand differentiation, among other aspects of the product or service (Kilbourne & Pipher, 2000). The advertisement can be done through print media or electronic media in which both the radio and TV are inclusive. Most of the advertisements are done through the electronic media as opposed to point.
This is because of the possibility of the advantages that the electronic media has over the print media. Still under the electronic media, TV advertisements are more popular than radio for the same reasons that TV has some features absent in Radio. Nevertheless, in both TV and Radio advertisements, there is the issue of target audience. When one is putting forth an advertisement on radio or TV, he has the target audience or market segment for which the advertisement is targeted.
The target market segment may be local, national or even international depending on the needs of the advertiser. The channel and affiliates therefore enter into a contract with the advertisement agreeing whether the advert shall be run on the local or national market (Sissors et al, 2002). Each market segment has its advantages and the Radio or TV do not dedicate their entire advertisement inventory to one market segment but rather distribute the inventory in a way that is more profitable to the channel and its affiliates.
This paper seeks to highlight whether some national TV ads are being shown in different local markets and if that is the case, can the markets showing more local adverts relative to the national adverts for the same show be measured. Further, the paper also seeks to evaluate the differences in contracts between affiliates and network, if the affiliates have incentives to get more local adverts and if network benefits from local adverts. Introduction TV and radio adverts are run in different ways despite the fact that they may doing the same way, advertising.
A radio or TV network may take the contract of running a given advert nationally or locally (Book et al, (1978). If the advert is targeted for the local market, then the network may delegate the advert to a local affiliate at a fee of course. Similarly, a local TV or radio may get a contract to run a national advert when it is based locally. In such a situation, the TV or Radio channel may involve their affiliates so as to deliver the advert as required by the client so that both the Radio/TV and its affiliate benefit from the advert.
Statement of the Problem The radio and TV advertisements are very vital in the marketing industry specifically because of the correlation of advertisement and increased sales. The main issues to be investigated include: • Whether or not some national TV adverts are being shown in different local markets • If some national TV adverts are being shown in different local markets, can we measure which markets are showing more local ads relative to national ads for the same show • What is the difference in contracts between affiliates and networks?
• If affiliates have incentives to get more local adverts and if network benefits from those local adverts Methodology The above problems are established mainly via interview in which the players in Radio and TV advertisements are approached and asked a number of questions. Once the responses have been collected, the information is compiled based on the common facts given by most respondents to give one complete single body of knowledge on both TV and radio advertisement processes. Radio Advertising Levels of representation
Radio advertisements have four major levels of representation namely: • National Agencies – Take Entercom for instance which has a national agency which represents the entire Entercom network to its clients both BIG and small, major and minor clients. • Regional Agencies – Here, the agency represents the businesses in a given region. For instance, the McDonalds in Wisconsin who buy the markets in Wisconsin region and have greater control in the local market buying and they also determine what is bought as far as the advertisement business is concerned.
• Local Agencies – These agencies represent local businesses which specialize in buying more of the local markets as opposed to the national or regional markets • Direct Clients- in this case, the clients do not need any representation but deal directly with the radio such that they can place their advertisements. The radio deals directly with its clients as far as the advertisement process is concerned and this is entirely to do with the local markets. Advertisement Process on Radio
Having evaluated the main market representation in radio advertisement, it is very important to understand the entire radio advertising process in a bid to address the problems stated earlier. First, each radio has a national sales representative who handles the entire national Requests for Proposals (RFP) (Information Access Company, 1988). These are then analyzed by the same national sales representative to ensure that all the parameters required in the RFPs are met. The buying is done nationally and in volumes hence this reduces the rates.
The rates are specifically lower for this kind of buying because the buy is large and national with Entercom. Besides the rates being lower (because the buy is large), all the agencies bring forth present the market ensuring that they get the most efficient market. Further, incase direct clients are involved in the national level of radio advertisement, they (direct clients) need not worry about the total number of people reached and the frequency with which these people are reached. All these they worry not because the national radio has the capacity of reaching the entire nation more often provided it is within the time it is on air.
It is important to note at this point in time that, just like the radio advertising process takes place at the national level the same way regional and local radio advertising buys will take place. The only difference is the fact that the regional and local sales representatives respectively are involved as opposed to the national sales representative and the rates of course are higher for the regional and local markets as compared to the national market because of the differences in the amount of buys in which case national has large buys thus low rates whereas the regional and local markets represent less buys hence the higher rates.
Because of these differences, the radio does not dedicate its entire advertisement inventory to one kind of market. There is need to spread a given percentage of advertisement inventory to each market; national, regional and local relative to the rates. The largest percentage of the advertisement inventory goes to the market that has the highest rates for obvious reasons; to make more profits (Sissors et al, 2002).
Secondly, the national sales representative has the main role of drawing the contracts whereas the agencies draw up the RFPs. In this case, the agencies present the market and this explains why they have to draw the Requests for Proposals in that the radio, through the national sales representative shows interest and goes ahead to draw the contract that will be binding to all parties involved in the advertisement process.Sample Essay of StudyFaq.com