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Dominant Market Presence<br />

Often large and assertive in <strong>for</strong>m, <strong>the</strong> out of<br />

home medium provides important benefits:<br />

Size: Imposing presence <strong>for</strong> visual impact.<br />

Color: Draws attention with eye-catching<br />

images.<br />

Brevity: Delivers quick bursts of essential in<strong>for</strong>mation.<br />

[THE MEDIA MIX]<br />

<strong>Out</strong> of home advertising works <strong>to</strong> enhance <strong>the</strong><br />

overall effectiveness of a media mix by broadening<br />

reach and frequency while bridging <strong>the</strong><br />

gap between advertising messages delivered<br />

inside <strong>the</strong> home and purchases made outside<br />

<strong>the</strong> home.<br />

Television<br />

Since its introduction in <strong>the</strong> late 1940s, television<br />

has been widely accepted in<strong>to</strong> Americans’<br />

homes as a source of news, in<strong>for</strong>mation, and<br />

entertainment.<br />

Light television <strong>view</strong>ers are a difficult demographic<br />

<strong>to</strong> reach, a serious concern given this<br />

group is characterized as being younger, more<br />

active, and more affluent than <strong>the</strong> general population.<br />

Television’s combination of sight,<br />

sound, and motion make it a <strong>for</strong>midable advertising<br />

medium.<br />

Today, many <strong>view</strong>ers consume a limited amount<br />

of television while digital video recorders<br />

(DVRs) have shifted habits <strong>to</strong>ward ad avoidance.<br />

Light television <strong>view</strong>ers comprise 40 percent<br />

of <strong>the</strong> <strong>to</strong>tal television audience, spending<br />

less than 90 minutes per day watching TV<br />

between <strong>the</strong> hours of 6:00 AM and midnight.<br />

Big market stations remain critical <strong>to</strong> broadcast<br />

networks, despite an increasing reliance on<br />

digital and online content distribution. For<br />

dozens of major independent station group<br />

owners, local television is <strong>the</strong>ir core business<br />

and revenue source. With broadcast networks<br />

selling programs directly <strong>to</strong> cable and new digital<br />

media outlets, and as broadcast networks<br />

rely more on online sites, digital plat<strong>for</strong>ms and<br />

devices <strong>to</strong> distribute programs, local stations<br />

have faced a dilution of <strong>the</strong> affiliate brand.<br />

The high capital cost, declining revenues, and<br />

tighter margins have become increasingly<br />

apparent among television stations. Local TV<br />

station owners are under pressure <strong>to</strong> modify<br />

high-cost legacy structures, leverage <strong>the</strong>ir<br />

unique local content and connections, and<br />

engage in new digital enterprises <strong>to</strong> collectively<br />

offset traditional ad declines.<br />

Television Benefits<br />

• Wide geographic coverage<br />

• Broad audience reach<br />

• Perceived accountability with well accepted<br />

audience measurement metrics<br />

• Relative ease of buying and post-buy maintenance<br />

• Proven success record <strong>for</strong> promoting mass<br />

consumer products<br />

Television Disadvantages<br />

• Audience share is generally declining due <strong>to</strong><br />

fragmented audiences<br />

• Increasing use of DVRs diminishes <strong>the</strong><br />

impact of commercials<br />

• Many television shows skew older and lower<br />

income<br />

• Typically high CPM costs and rising production<br />

costs<br />

• Primetime is no longer <strong>the</strong> preeminent reach<br />

builder with a large part of <strong>the</strong> <strong>view</strong>ing population<br />

not substantially reached by <strong>the</strong> primetime<br />

networks<br />

• Increasing ad clutter as commercial pods<br />

leng<strong>the</strong>n<br />

Broadcast Television and <strong>Out</strong> of Home<br />

<strong>Out</strong> of home rein<strong>for</strong>ces television messages<br />

when <strong>view</strong>ers are away from <strong>the</strong>ir homes during<br />

<strong>the</strong> course of daily activities.<br />

<strong>Out</strong> of home minimizes wasted coverage and<br />

improves an advertiser’s campaign by providing<br />

<strong>the</strong> ability <strong>to</strong> target ad messages geographically.<br />

Television is expensive. <strong>Out</strong> of home improves<br />

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