Test 3 - "If advertisers spent the same amount of...

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they do on advertising then they wouldn’t have to advertise them.” - Will Rogers The Business of Broadcasting New Mass Media Technology - an economical way to link large numbers of people with advertisers In Media there is an interplay between: Technology The Consumer or audience The economics of each medium Economic Models for Media TV and Radio - single revenue stream The Audience is the product that media delivers to the advertisers Cable - dual revenue stream Delivers audience to an advertiser Charges a monthly subscription fee for program services Competition Government oversight of media is tied to how competitive the business is. Monopoly - no competition, one broadcaster in market Oligopoly - limited number of competitors but not a lot Pure competition - many competitors in market; no single firm dominates Every Major media market operates in “pure competition” model. Competition Among Media Competition for radio listeners different than TV - audio (iPods, Internet radio, CDs) Competition for TV viewers Cable TV, Internet Video, Movie rental Determining Media to Buy Advertisers develop a buying plan based on Population or market size Effective buying income Retail sales for market Buying power index (BPI) - measurement which describes a market’s ability to buy goods; based on three elements above Standard formula to figure out cost of commercial Cost per thousand (CPM) Cost of reaching 1,000 persons Need to know the cost of the spot and the size of the audience. Cost of spot/audience (in thousands) = CPM
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This note was uploaded on 04/19/2008 for the course RTVF 1310 taught by Professor Way during the Spring '08 term at North Texas.

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Test 3 - "If advertisers spent the same amount of...

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