Posts filed under ‘Advertising Tips’

Broadcast TV versus Cable TV in Tampa Bay, Part 1

The FCG Research Team just finished up updating our annual presentation comparing broadcast television advertising to cable television advertising.  Here are some great research tidbits from that presentation:

Broadcast Television Strengths

  • According to bi-annual studies conducted by the Television Bureau of Advertising and Nielsen Media Research, the public consistently perceives broadcast television as the most influential, most authoritative, most exciting and most persuasive  advertising medium. Despite the attention given to cable news networks such as Fox News and CNN, broadcast TV is also consistently seen as the primary news source, the first choice for weather, traffic and sports and the most involved in community.

Primary Source for News

 

 

 

 

 

 

 

First Choice for Weather, Traffic and Sports

 

 

 

 

 

 

 

Most Involved in Community

 

 

Source: TVB, Nielsen Media Research Custom Survey 2008. Graphs illustrate Adults 18+.

  • In February 2010, the combined 9 broadcast networks delivered a total of 35.4 household ratings points in prime. In comparison, it took 42 cable networks combined to deliver 29.4 household rating points. On average, each broadcast network delivered more than 5 times as many households viewing as any cable network.  Source: Nielsen Media Research, February 2010

Cable and ADS Penetration in Tampa

  • Although market average cable penetration is 79%, the individual county coverage varies wildly, ranging from 37% to 88%. In fact, SIX out of 10 counties in the Tampa DMA have cable penetrations under the market average.
  • Like cable coverage, although market average ADS penetration is 16%, the individual county coverage varies wildly, ranging from 7% to 56%. In fact, five out of 10 counties in the Tampa DMA have ADS penetrations over the market average.
County Cable Penetration ADS Penetration
Citrus 75% 22%
Hardee 37% 42%
Highlands 40% 56%
Hernando 71% 27%
Hillsborough 80% 15%
Manatee 86% 13%
Pasco 77% 15%
Pinellas 88% 7%
Polk 65% 29%
Sarasota 87% 12%
Mkt Avg 79% 16%

Source: Nielsen Media Research, February 2010

  • Cable penetration in the Tampa market had been declining from 2002 to 2008. Since the arrival of competing cable system VerizonFIOS in the Tampa Bay area in Spring  2006, overall cable penetration is on the rise in the market.

  • Although penetration of Alternate Delivery Systems (ADS) such as Satellite has been declining in the past year, overall market penetration still remains above 16%. Advertisements placed on local cable systems are not received by ADS homes.

 

March 24, 2010 at 11:54 AM 2 comments

Trends in Multicultural Ad Spending

Attached is a report from Nielsen on Multicultural Advertising Spending Trends in 2009 , which takes a look at advertising targeted towards Spanish-Language and African-American segments. According to the report, spending on Spanish Language and African-American media declined 4.7% and 7.3%, respectively, in 2009. The declines are consistent with the trend in overall advertising, although are not as deep.

Spanish Language Ad Spending: Nielsen found that Spanish Language advertising was down 4.7% in the U.S. last year. A total of $5.4 billion was spent on all Spanish Language media in 2009, down almost $270 million from the previous year. The slide was paced by significant declines in National Magazine and Local Newspaper advertising, which were down 38% and 25%, respectively.

The decreases in print media were offset by a 32% increase in Spanish Language Cable advertising. Nielsen found that 19 of the top 20 advertisers in the medium increased their ad spends year over year.

Spot TV was the top cash generator for Spanish Language media in 2009 with an estimated $1.4 billion in ad sales, down 10% compared to the previous year.

Spanish Language Media
Media Type 2008-$ (000) 2009-$ (000) % Change
Local Magazine 988.2 0.0 -100.0%
Local Newspaper 103,144.6 77,059.5 -25.3%
National Magazine 182,096.7 112,558.7 -38.2%
Spanish Language Cable TV 323,065.0 426,959.4 32.2%
Spanish Language Network TV 2,982,158.3 2,866,092.5 -3.9%
Spot Radio 567,233.9 562,481.3 -0.8%
Spot TV 1,559,307.8 1,402,754.4 -10.0%
Total 5,717,994.5 5,447,905.7 -4.7%
Source: The Nielsen Company

African-American Ad Spending: Spending on African-American media saw a similar decline of 7.3% in 2009. The decline was paced by decreased spending in Network TV (-72%) and National Magazines (-33%).

Increased spending on Cable TV helped balance out the losses. Advertisers spent 35% more on African-American Cable in 2009, thanks to added spending by each one of the top 20 advertisers in the category.

Spot Radio earned the most revenue among African-American media in 2009. Advertisers spent $748 million on the medium last year, almost 10% less than in 2008.

African American Media
Media Type 2008 $ (000) 2009 $ (000) % Change
Cable TV 539,193.6 728,440.8 35.1%
National Magazine 530,766.1 353,806.7 -33.3%
Spot Radio 826,824.5 747,794.7 -9.6%
Network TV 95,524.8 26,626.8 -72.1%
Syndicated TV 110,638.4 92,935.8 -16.0%
Total 2,102,947.5 1,949,604.8 -7.3%
Source: The Nielsen Company

Product Categories: The top spending product category for both Spanish Language and African-American media was Quick Service Restaurants. Advertisers within the category spent $335 million on Spanish Language media and $87 million on African-American media. McDonald’s was the top fast food advertiser in both media segments. The Automotive category was the next highest spender in both multicultural media. Spending in Spanish Language was down 39% in 2009, paced by double-digit percent losses by each of the top five auto advertisers. Spending by the auto industry in African-American media was down 18% year over year.

The category showing the most growth among the top 10 Spanish Language advertisers was Satellite TV providers. Advertisers in this category upped their ad spends 77% in 2009, as satellite TV companies made the pitch for their services in the run up to the DTV transition in June 2009.

Spanish Language Categories
Product Category 2008-$ (000) 2009-$ (000) % Change
RESTAURANT-QUICK SVC 293,652.9 334,593.0 13.9%
AUTOMOTIVE 528,577.9 323,230.0 -38.8%
TELEPH SVCS-WIRELESS 316,808.3 305,463.7 -3.6%
STORE-DEPT 307,345.4 294,420.8 -4.2%
SATELLITE COMM SVCS 134,658.1 238,744.6 77.3%
DIR RESP PROD 220,632.3 237,227.6 7.5%
BEER 165,045.9 171,677.7 4.0%
LEGAL SVCS 89,684.3 123,847.0 38.1%
MOTION PICTURE 112,015.0 99,846.5 -10.9%
INSURANCE-AUTO 144,305.0 98,084.0 -32.0%
Source: The Nielsen Company

Insurance companies showed the most growth among the top 10 African-American media spenders. General Insurance and Car Insurance categories placed 8th and 9th after increases of 29% and 24%, respectively. The Motion Picture category showed similar growth, increasing its spend 24% to $72 million.

African American Categories
Product Category 2008-$ (000) 2009-$ (000) % Change
RESTAURANT-QUICK SVC 72,909.6 86,906.8 19.2%
AUTOMOTIVE 105,005.7 85,851.1 -18.2%
STORE-DEPT 76,117.9 72,234.3 -5.1%
MOTION PICTURE 58,094.9 71,937.5 23.8%
TELEPH SVCS-WIRELESS 52,610.6 50,602.5 -3.8%
PHARMACEUTICAL 50,542.5 47,556.1 -5.9%
DIR RESP PROD 41,810.4 43,544.9 4.1%
INSURANCE 26,739.2 34,378.2 28.6%
INSURANCE-AUTO 26,285.0 32,521.9 23.7%
CREDIT SVCS 23,052.1 28,204.4 22.4%
Source: The Nielsen Company

Here  is the complete report from Nielsen: MultiCulturalSpotlight10.23.09

March 19, 2010 at 11:20 AM Leave a comment

Why Didn’t My Advertising Get the Response I Wanted?

This came across my desk today, and I had to share.  I’m not sure who it came from, or I would source it.  Please let me know if you know who originally wrote this piece so I can give credit where it is due! I have added some of my thoughts and observations to the piece.

1. The ad is placed in the wrong media. Before placing your ad in any publication, examine the readership information in its media kit to determine whether it reaches your target audience with a reasonably small amount of waste. For example, if you want to reach a larger audience check the audience numbers carefully to find out who is getting the publication or watching the station.

In addition, you need to make sure the demographics of the audience of your media choices matches closely to the demographics of your station.  I’ve seen many a high-end furniture store or automotive manufacturer essentially waste their advertising dollars on stations whose average audience’s income is too low to actually ever purchase their product.  Many advertisers quickly jump on cheap rates without considering the quality of the advertising medium they are buying.  In advertising, as in life, you often get what you pay for.

2. The ad is run on the wrong day. Search corridor media are those people reach for when they’ve made a decision to buy. You’ve probably noticed how, on any given day, your favorite section of the daily newspaper becomes a search corridor for a particular type of product. All the local banks may run ads on Mondays in the Business section, for example, or all the ads for audio equipment may run on Fridays in the Weekend section.

If you place an ad for audio equipment on Thursday in Main News instead of on Friday in the Weekend section with the other stereo advertisers, you’ve removed your ad from the search corridor. Prospects looking for audio equipment simply will not be looking for your ad in Main News on Thursday.

3. There are barriers to sales. If it’s too hard for prospects to get information or make a purchase, then no ad, no matter how well-produced, can work for you. When people respond to your ad, do they get stuck in voice-mail jail? Can they speak with a real person who is knowledgeable about the offer in the ad? Do they get a busy signal? If so, many prospects will give up and buy from someone else.

Often, an otherwise excellent ad will fail solely because the advertiser didn’t provide a toll-free number or website. If you ask prospects to spend their own money to find out about your product or service, you’re placing a significant barrier to sales in their way.

4. The offer is too weak or just plain wrong. Before placing an offer in your ad, it’s important to determine how it stacks up next to competitors’ offers. To find out, clip their ads regularly. And consider this: It’s not always important to beat the competition on price. Instead, find a way to add value with additional services or products.

Once you’ve hit on what you believe is your best offer, you may have to test it to see if you’re offering something your prospects want to buy. When a good ad with what you think is a top-flight offer fails to pull, strengthen the offer. Once you find an offer that improves your ad-response rates, stick with it until it stops working for you.

5. You aren’t advertising frequently enough. Companies that advertise consistently, such as regional banks, build up “awareness” among their target audiences. So if your local bank offers in its weekly ad a new service, such as one-hour approval on auto loans, it will probably reap a significant response, even though it’s the first time that particular ad has appeared.

If you’re a new advertiser, however, you haven’t yet built up awareness among your target audience, so you’ll have to run your ad with some frequency before it begins to garner responses. The frequency required depends on what you’re marketing, the complexity of your message, and how well your target audience understands your type of product or service.

 

From your experience, are there other aspects you should be checking to figure out where good ads go wrong?

August 27, 2009 at 3:22 PM Leave a comment


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