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Belch: Advertising and
Promotion, Sixth Edition
V. Developing the
Integrated Marketing
Communications Program
11. Evaluation of Broadcast
Media
regional basis, so an advertiser’s message can be aired in certain sections of the country
with one media purchase.
Spot and Local Advertising Spot advertising refers to commercials shown
on local TV stations, with time negotiated and purchased directly from the individual
stations. All nonnetwork advertising done by a national advertiser is known as
national spot advertising; airtime sold to local firms such as retailers, restaurants,
banks, and auto dealers is known as local advertising. Local advertisers want media
whose coverage is limited to the geographic markets in which they do business. This
may be difficult to accomplish with TV, but many local businesses are large enough to
make efficient use of TV advertising.
Spot advertising offers the national advertiser flexibility in adjusting to local market
conditions. The advertiser can concentrate commercials in areas where market potential
is greatest or where additional support is needed. This appeals to advertisers with
uneven distribution or limited advertising budgets, as well as those interested in test
marketing or introducing a product in limited market areas. National advertisers often
use spot television advertising through local retailers or dealers as part of their cooperative
advertising programs and to provide local dealer support.
A major problem for national advertisers is that spot advertising can be more difficult
to acquire, since the time must be purchased from a number of local stations.
Moreover, there are more variations in the pricing policies and discount structure of
individual stations than of the networks. However, this problem has been reduced
somewhat by the use of station reps, individuals who act as sales representatives for a
number of local stations in dealings with national advertisers.
Spot ads are subject to more commercial clutter, since local stations can sell time on
network-originated shows only during station breaks between programs, except when
network advertisers have not purchased all the available time. Viewership generally
declines during station breaks, as people may leave the room, zap to another channel,
attend to other tasks, or stop watching TV.
While spot advertising is mostly confined to station breaks between programs on
network-originated shows, local stations sell time on their own programs, which consist
of news, movies, syndicated shows, or locally originated programs. Most cities
have independent stations that spot advertisers use. Local advertisers find the independent
stations attractive because they generally have lower rates than the major network
affiliates.
The decision facing most national advertisers is how to combine network and spot
advertising to make effective use of their TV advertising budget. Another factor that
makes spot advertising attractive to national advertisers is the growth in syndication.
Syndication Advertisers may also reach TV viewers by advertising on syndicated
programs, shows that are sold or distributed on a station-by-station, market-bymarket
basis. A syndicator seeks to sell its program to one station in every market.
There are several types of syndicated programming. Off-network syndication refers to
reruns of network shows that are bought by individual stations. Shows that are popular
in off-network syndication include Seinfeld, Everybody Loves Raymond, and Friends.
The FCC prime-time access rule forbids large-market network affiliates from carrying
these shows from 7 to 8 P.M., but independent stations are not affected by this restriction.
A show must have a minimum number of episodes before it is eligible for syndication,
and there are limits on network involvement in the financing or production of
syndicated shows.
Off-network syndication shows are very important to local stations because they
provide quality programming with an established audience. The syndication market is
also very important to the studios that produce programs and sell them to the networks.
Most prime-time network shows initially lose money for the studios, since the
licensing fee paid by the networks does not cover production costs. Over four years
(the time it takes to produce the 88 episodes needed to break into syndication), halfhour
situation comedies often run up a deficit of millions, and losses on a one-hour
drama show are even higher. However, the producers recoup their money when they
sell the show to syndication.
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Companies, 2003
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Chapter Eleven Evaluation of Broadcast Media