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Universities » Georgia State University (GSU) » JOUR - JOURNALISM » 3700 - HON INTRO TO TELECOM » Flash Cards

Exam #3 - Flashcards

Flashcard Deck Information

Class:JOUR 3700 - HON INTRO TO TELECOM
Subject:JOURNALISM
University:Georgia State University
Term:Spring 2011
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Ownership in the National Market for Radio FCC licenses / unlimited stations
Ownership in the National Market for B/Cast TV Stations FCC licenses / Capped at 39% of households
Ownership in the National Market for Cable Systems Franchised locally / capped at 30% of households
Ownership within a given market for Radio Capped at 8 stations in a large market. And only 5 per dial - so if 8 total - only 5 could be FM or AM - the other 3 would be on the other side of the dial.
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Ownership within a given market for B/Cast tv stations Capped at a maximum of 3 stations in a large market
Ownership within a given market for Cable Systems No caps - unlimited number of systems can exist in a given market
Cross-ownership It used to be that a newspaper and tv station or radio station in a given market could NOT be owned by the same company - now it is allowed, but the Telecomm Act of 1996 did deem that this issue needed to be revisited every so often.
Staffing for Radio, B/Cast TV, and Cable Systems Radio: small staff. B/Cast TV stations: large staff. Cable Systems: largest staff.
Generated by Koofers.com
Primary Revenue for Radio, B/Cast TV, and Cable Systems Radio: local ads. B/Cast TV Stations: local ads. Cable Systems: subscription fees and churn fees (churn fees = disconnection fees, connection fees, etc.
Profit for Radio, B/Cast TV, and Cable Systems Radio: Loss to 50% profit margin (so half of the revenue is profit). B/Cast TV Stations: 12% to 50% profit margin. Cable Systems: varies with system maturity.
Traffic Controller in Radio In charge of scheduling ads, songs, promos, etc.
Networks: Types of Programming for Radio, B/Cast TV, and Cable Radio Networks: News. B/Cast Networks: Entertainment & News. Cable Networks: Specialized programming: i.e. The Weather Channel, ESPN, etc.
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Networks: Primary Revenue for Radio, B/Cast, Cable Radio: Nat'l Ads. B/Cast: Nat'l Ads. Cable: Subscription fees + Nat'l ads
Network: Affiliates for Radio, B/Cast, Cable (Also: "Clearance Fee" and "Pre-emption") Radio: Non-exclusive - multiple stations may have network affiliation in a given market. B/Cast: exclusive - i.e. Channel 5 = FOX. They pay Fox "Clearance fees" for the right to play a program. Although they can chose to exercise pre-emption: where they affiliate chooses to show their own local programming. Cable Network: Non-exclusive or several network channels can exist on one system
Network Restrictions enforced by the FCC: B/Cast (PTAR) "Prime Time Access Rule" are enforced by the FCC to restrict networks from airing too much content in the prime time hours - they set it up so that the "access hour" could be left for the local affiliates to program - what resulted, however, was stations found it cheaper to leave the access hour to syndicated.
Syndex Syndication exclusivity (also known as syndex) is a federal law in the United States designed to protect a local television station's rights to syndicated television programs by granting exclusive rights to the station for that program in the local market, usually defined by a station's Nielsen DMA.
Generated by Koofers.com
Vertical Integration Program ownership + production + distribution ex: Comcast owns part of NBC now
Network Advertising Advertising sold to a national company ex: seeing a Petco ad on HGTV
National Spot When a national company advertises on a local station... ex: Nike advertising on V103
Local Advertising Local ads sold to local companies.
Generated by Koofers.com
National Spot Sales National Spot Sales Firms work exclusively w/ a station in a given market to seek out high $$ advertising (nat'l spots). National Spot Sales Reps - may only represent 1 station in a market or a group of stations owned by the same company. Only operate in top 10 markets.
Ad Agencies For nat'l and regional companies - they act as the middle man between the station and the company - might produce the commercial depending on the contract.
Breakdown of Advertising Company may employ an ad agency which filters through a media buyer who sells to the National Spot Sales Rep Firm who represents the station.
Factors that Influence Ad Rates (5 Factors) Audience size, dayparts, length of ad, # of spots, spot position
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Radio Dayparts AM and PM Drive-time
TV Dayparts TV - primetime, access hour - hour before prime time. Early and late-fringe.
Early Fringe 4 to 7pm est.
Late Fringe After 11pm est.
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Volume Discount 30 second spot won't necessarily be double the 15 second spot.
# of Spots More spots you buy the better the value.
Spot Position: ROS Run of schedule: when the traffic scheduler wants to air spot
Spot Position: Fixed Spot is chosen by the advertiser
Generated by Koofers.com
Spot Position: Primacy 1st commercial to air leading into a pod
Pod = entire break
Avails spots available
Spot Position: Recency Last spot to air in a pod
Generated by Koofers.com
Spot Position: Bookend Front and back of pod - sort of a lead into commercials and a lead out of commercials
Non-preemtibility Advertiser must pay extra $$ to get this insurance policy - it says that if an ad didn't run when it was supposed to - it will air at the next possible time. - Also ensures that the make-good will happen at a better time.
"Make Good" When a station does a "make good" and airs a commercial that didn't air on time.
Special Sponsorship Advertiser pays extra $$ to sponsor something like an event or part of an event. - i.e. Lexus Halftime Show - usually involves exclusivity as well.
Generated by Koofers.com
"Mention" When a dj actually says the sponsors name/ often times the contract will say exactly how many times the include the sponsors name in a given time frame.
Time-Brokering Infomercials and/or religious programming
PI (Ads) "Per inquiry" = commercials where they ask ppl to phone in and the money will go to the station based on how many ppl say they heard or saw the ad on your station.
Co-Op Advertising Cooperative agreement between a national company and its franchise where the advertising is shared between the national company and the local company. ex: Ace Hardware employs John Madden for national ads and - then a cheap local logo closes the ad.
Generated by Koofers.com
Tradeout airtime going to a company for something they provided - no $$ exchanges hands - i.e. a local car company donates vans to a radio station in exchange for ads
Network Advertising - "Upfront" Season Advertising pegged to when the fall season shows are announced - so ads purchased in the upfront season (May/April) when the new shows are announced. Successful upfront season would mean 70% of ads sold.
Scatter Period in advertising the time after the upfront period until the show airs - hopefully 20% of the remainder of ads sold.
Opportunistic Period in Advertising When everything else is sold.
Generated by Koofers.com
CPM Cost per thousand (M = roman numeral for thousand) - used to compare ad rates regardless of medium - radio ads, commercials on tv.
Equation used for CPM Cost of Ad divided by (audience size/1000) So if cost #1 is $24 and the audience size is 8000/1000 then the CPM is 24/8 = $3. Cost #2 is $18 and the audience size is 3000/1000 then the CPM is 18/3 = $6. So cost 1 is more but the value is greater.
Larges Revenue Category for each Medium Radio = Local Ad. Cable System= Network. B/Cast Tv = evenly divided.
Internet Ad: Banner Up top/ horizontal
Generated by Koofers.com
Internet Ad: Skyscraper Vertical - usually to the side and near the scroll bar so that it may be accidentally
CTR Click through rate: the small % of ppl who actually click on the ad
PopUp Ad Opens on top of the page you are on.
PopUnder Ad Opens under your browser where you most likely won't even notice
Generated by Koofers.com
Cookies Attached to the sites and download information about what you are doing on the internet to focus the advertising
CPC Cost per click - also price per click - when advertiser pays based on CTR
Search Engines: Google Bidding process determines your ads placement on the ad side. You bid on words for higher placement of ad on list
Conversion (or Action per click) Conversion from viewer of ad to actual purchaser of item(s) - "conversion" to customer.
Generated by Koofers.com
Advergaming Advergaming (a portmanteau of "advertising" and "gaming") is the practice of using video games to advertise a product, organization or viewpoint. ex: billboard on racing game
Swivel Potatoes nickname for ppl who are online and watching the tv at the same time - research around this led to the notion that when ads run you are going online
Ad-Voidance: Flip Changing the channel to find a channel that doesn't have ads on
Ad-Voidance: Zip Fast forwarding through commercials when a program is recorded and replayed
Generated by Koofers.com
Ad-Voidance: Zap Recording a show to stop recording when commercials start. Tivo can be set to do this
Ad-Voidance: DVR digital video recorder
Attempts to defeat Advoidance Product placement, change traffic to keep spots from airing when other channels air spots - ex: The Weather Channels - local on the 8s.
Content of the Spot Mimics Show ex: bball game showing a commercial w/ ppl playing bball.
Generated by Koofers.com
Production Techniques: Logo Image appears even though you are fast forwarding
Monochrome Imagery B&W image causes you to stop and see what is going on
Image Fast Forwards Fast motion commercials that can be seen the same whether fast or slow
No B&W between program... Attempts to throw off zapping by having no B&W between the program and the ad
Generated by Koofers.com
Regulation: FCC License revocation or non-renewal for fraudulent billing practices - ex: Radio station billed for 100 spots and only airs 95
FTC Federal trade commission - test what ppl put in ads for accuracy - and go after them if it isn't
Stipulation Letter Warning letter of sorts distributed by the FTC - warning company that they will be taken to court if they don't heed the warnings
Consent Order Says the FTC will stop pursing the issue and advertiser will stop displaying falsehood - judge will sign and if the advertiser doesn't hold up their end of the bargain - the punishment will be much more severe
Generated by Koofers.com
Ceast and Desist Order Judge says the advertiser must stop saying whatever you are saying in the ad.
Big Cases of Advertisers being stopped... 1971: Cigarette/Little Cigars. 1986: Smokeless tobacco banned by act of congress
1992: Children's Ads Required to be no more than 12 minutes a weekday and 10.5 minutes on weekends. Also must have a billboard going in and out of commercials to differentiate between commercials and show.
Advertising Industry Self-Restraints Standards & Practices: deem whether an ad is appropriate and when to air - maybe at night b/c of content
Generated by Koofers.com
Time Limits they will restrict how many spots they run so they can create a false sense of scarcity
Non-Commercial Originally labeled educational - poor equipment - poorly paid ppl - usually this results to quality lacking
Ford Foundation Helped non-comm up until 1966 - and arguably kept it alive
NET National Educational TV - - 1st network but bicycling service between cities to schools
Generated by Koofers.com
Public Broadcasting Act of 1966 take the carnagie report basically word for word - an attempt to improve broadcasting - so group is created to make recommendations to government based on what ppl want
Corp. for Public Broadcasting Take ppls ideas and helps finance them for things like documentaries
NPR NPR, formerly National Public Radio, is a privately and publicly funded non-profit membership media organization that serves as a national syndicator to 797 public radio stations in the United States of America. Independent since 1971 - but still asks for help with certain productions
PBS The Public Broadcasting Service (PBS) is an American non-profit public broadcasting television service with 354 member TV stations in the United States which hold collective ownership. They still have to get approval for shows.
Generated by Koofers.com
NPR Affiliates Charge non-comm stations...Pay per coverage per coverage area - so Atlanta more than Macon. Have to be on air a minimum of 18 hours and have to have a full-time studio and 2 studios.
3 Basic Problems with PBS/NPR 1) Money: survive primarily on $$ from donors/telethons. 2) Politics: issue of whether government money should exist in b/casting. 3) Programming: not cheap to produce and often lacking in quality
Underwriters Donors to PBS/NPR called underwriters - the Public Broadcasting Act of 1966 deemed that underwriters couldn't say certain things - like Coke is better than Pepsi.
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List View: Terms & Definitions

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 Ownership in the National Market for RadioFCC licenses / unlimited stations
 Ownership in the National Market for B/Cast TV StationsFCC licenses / Capped at 39% of households
 Ownership in the National Market for Cable SystemsFranchised locally / capped at 30% of households
 Ownership within a given market for RadioCapped at 8 stations in a large market. And only 5 per dial - so if 8 total - only 5 could be FM or AM - the other 3 would be on the other side of the dial.
 Ownership within a given market for B/Cast tv stationsCapped at a maximum of 3 stations in a large market
 Ownership within a given market for Cable SystemsNo caps - unlimited number of systems can exist in a given market
 Cross-ownershipIt used to be that a newspaper and tv station or radio station in a given market could NOT be owned by the same company - now it is allowed, but the Telecomm Act of 1996 did deem that this issue needed to be revisited every so often.
 Staffing for Radio, B/Cast TV, and Cable SystemsRadio: small staff.
B/Cast TV stations: large staff.
Cable Systems: largest staff.
 Primary Revenue for Radio, B/Cast TV, and Cable SystemsRadio: local ads.
B/Cast TV Stations: local ads.
Cable Systems: subscription fees and churn fees (churn fees = disconnection fees, connection fees, etc.
 Profit for Radio, B/Cast TV, and Cable SystemsRadio: Loss to 50% profit margin (so half of the revenue is profit).
B/Cast TV Stations: 12% to 50% profit margin.
Cable Systems: varies with system maturity.
 Traffic Controller in RadioIn charge of scheduling ads, songs, promos, etc.
 Networks: Types of Programming for Radio, B/Cast TV, and Cable Radio Networks: News.
B/Cast Networks: Entertainment & News.
Cable Networks: Specialized programming: i.e. The Weather Channel, ESPN, etc.
 Networks: Primary Revenue for Radio, B/Cast, Cable Radio: Nat'l Ads.
B/Cast: Nat'l Ads.
Cable: Subscription fees + Nat'l ads
 Network: Affiliates for Radio, B/Cast, Cable (Also: "Clearance Fee" and "Pre-emption")Radio: Non-exclusive - multiple stations may have network affiliation in a given market.
B/Cast: exclusive - i.e. Channel 5 = FOX. They pay Fox "Clearance fees" for the right to play a program. Although they can chose to exercise pre-emption: where they affiliate chooses to show their own local programming.
Cable Network: Non-exclusive or several network channels can exist on one system
 Network Restrictions enforced by the FCC: B/Cast (PTAR)"Prime Time Access Rule" are enforced by the FCC to restrict networks from airing too much content in the prime time hours - they set it up so that the "access hour" could be left for the local affiliates to program - what resulted, however, was stations found it cheaper to leave the access hour to syndicated.
 SyndexSyndication exclusivity (also known as syndex) is a federal law in the United States designed to protect a local television station's rights to syndicated television programs by granting exclusive rights to the station for that program in the local market, usually defined by a station's Nielsen DMA.
 Vertical IntegrationProgram ownership + production + distribution

ex: Comcast owns part of NBC now
 Network AdvertisingAdvertising sold to a national company

ex: seeing a Petco ad on HGTV
 National SpotWhen a national company advertises on a local station...
ex: Nike advertising on V103
 Local AdvertisingLocal ads sold to local companies.
 National Spot SalesNational Spot Sales Firms work exclusively w/ a station in a given market to seek out high $$ advertising (nat'l spots).

National Spot Sales Reps - may only represent 1 station in a market or a group of stations owned by the same company.

Only operate in top 10 markets.
 Ad AgenciesFor nat'l and regional companies - they act as the middle man between the station and the company - might produce the commercial depending on the contract.
 Breakdown of AdvertisingCompany may employ an ad agency which filters through a media buyer who sells to the National Spot Sales Rep Firm who represents the station.
 Factors that Influence Ad Rates (5 Factors)Audience size, dayparts, length of ad, # of spots, spot position
 Radio Dayparts AM and PM Drive-time
 TV DaypartsTV - primetime, access hour - hour before prime time. Early and late-fringe.
 Early Fringe4 to 7pm est.
 Late FringeAfter 11pm est.
 Volume Discount30 second spot won't necessarily be double the 15 second spot.
 # of SpotsMore spots you buy the better the value.
 Spot Position: ROSRun of schedule: when the traffic scheduler wants to air spot
 Spot Position: FixedSpot is chosen by the advertiser
 Spot Position: Primacy1st commercial to air leading into a pod
 Pod = entire break
 Availsspots available
  Spot Position: Recency Last spot to air in a pod
 Spot Position: BookendFront and back of pod - sort of a lead into commercials and a lead out of commercials
 Non-preemtibilityAdvertiser must pay extra $$ to get this insurance policy - it says that if an ad didn't run when it was supposed to - it will air at the next possible time.

- Also ensures that the make-good will happen at a better time.
 "Make Good"When a station does a "make good" and airs a commercial that didn't air on time.
 Special SponsorshipAdvertiser pays extra $$ to sponsor something like an event or part of an event. - i.e. Lexus Halftime Show - usually involves exclusivity as well.
 "Mention"When a dj actually says the sponsors name/ often times the contract will say exactly how many times the include the sponsors name in a given time frame.
 Time-BrokeringInfomercials and/or religious programming
 PI (Ads)"Per inquiry" = commercials where they ask ppl to phone in and the money will go to the station based on how many ppl say they heard or saw the ad on your station.
 Co-Op AdvertisingCooperative agreement between a national company and its franchise where the advertising is shared between the national company and the local company.

ex: Ace Hardware employs John Madden for national ads and - then a cheap local logo closes the ad.

 Tradeoutairtime going to a company for something they provided - no $$ exchanges hands - i.e. a local car company donates vans to a radio station in exchange for ads
 Network Advertising - "Upfront" SeasonAdvertising pegged to when the fall season shows are announced - so ads purchased in the upfront season (May/April) when the new shows are announced.

Successful upfront season would mean 70% of ads sold.
 Scatter Period in advertisingthe time after the upfront period until the show airs - hopefully 20% of the remainder of ads sold.
 Opportunistic Period in AdvertisingWhen everything else is sold.
 CPMCost per thousand (M = roman numeral for thousand) - used to compare ad rates regardless of medium - radio ads, commercials on tv.
 Equation used for CPMCost of Ad divided by (audience size/1000)
So if cost #1 is $24 and the audience size is 8000/1000 then the CPM is 24/8 = $3.

Cost #2 is $18 and the audience size is 3000/1000 then the CPM is 18/3 = $6.

So cost 1 is more but the value is greater.
 Larges Revenue Category for each MediumRadio = Local Ad.
Cable System= Network.
B/Cast Tv = evenly divided.
 Internet Ad: BannerUp top/ horizontal
 Internet Ad: SkyscraperVertical - usually to the side and near the scroll bar so that it may be accidentally
 CTRClick through rate: the small % of ppl who actually click on the ad
 PopUp AdOpens on top of the page you are on.
 PopUnder AdOpens under your browser where you most likely won't even notice
 CookiesAttached to the sites and download information about what you are doing on the internet to focus the advertising
 CPCCost per click - also price per click - when advertiser pays based on CTR
 Search Engines: Google Bidding process determines your ads placement on the ad side. You bid on words for higher placement of ad on list
 Conversion (or Action per click)Conversion from viewer of ad to actual purchaser of item(s) - "conversion" to customer.
 AdvergamingAdvergaming (a portmanteau of "advertising" and "gaming") is the practice of using video games to advertise a product, organization or viewpoint.

ex: billboard on racing game
 Swivel Potatoesnickname for ppl who are online and watching the tv at the same time - research around this led to the notion that when ads run you are going online
 Ad-Voidance: FlipChanging the channel to find a channel that doesn't have ads on
 Ad-Voidance: ZipFast forwarding through commercials when a program is recorded and replayed
 Ad-Voidance: ZapRecording a show to stop recording when commercials start. Tivo can be set to do this
 Ad-Voidance: DVRdigital video recorder
 Attempts to defeat AdvoidanceProduct placement, change traffic to keep spots from airing when other channels air spots - ex: The Weather Channels - local on the 8s.
 Content of the Spot Mimics Showex: bball game showing a commercial w/ ppl playing bball.
 Production Techniques: LogoImage appears even though you are fast forwarding
 Monochrome ImageryB&W image causes you to stop and see what is going on
 Image Fast Forwards Fast motion commercials that can be seen the same whether fast or slow
 No B&W between program...Attempts to throw off zapping by having no B&W between the program and the ad
 Regulation: FCCLicense revocation or non-renewal for fraudulent billing practices -
ex: Radio station billed for 100 spots and only airs 95
 FTCFederal trade commission - test what ppl put in ads for accuracy - and go after them if it isn't
 Stipulation LetterWarning letter of sorts distributed by the FTC - warning company that they will be taken to court if they don't heed the warnings
 Consent OrderSays the FTC will stop pursing the issue and advertiser will stop displaying falsehood - judge will sign and if the advertiser doesn't hold up their end of the bargain - the punishment will be much more severe
 Ceast and Desist OrderJudge says the advertiser must stop saying whatever you are saying in the ad.
 Big Cases of Advertisers being stopped...1971: Cigarette/Little Cigars.
1986: Smokeless tobacco banned by act of congress
 1992: Children's Ads Required to be no more than 12 minutes a weekday and 10.5 minutes on weekends. Also must have a billboard going in and out of commercials to differentiate between commercials and show.
 Advertising Industry Self-RestraintsStandards & Practices: deem whether an ad is appropriate and when to air - maybe at night b/c of content
 Time Limitsthey will restrict how many spots they run so they can create a false sense of scarcity
 Non-CommercialOriginally labeled educational - poor equipment - poorly paid ppl - usually this results to quality lacking
 Ford FoundationHelped non-comm up until 1966 - and arguably kept it alive
 NETNational Educational TV - - 1st network but bicycling service between cities to schools
 Public Broadcasting Act of 1966take the carnagie report basically word for word - an attempt to improve broadcasting - so group is created to make recommendations to government based on what ppl want
 Corp. for Public BroadcastingTake ppls ideas and helps finance them for things like documentaries
 NPRNPR, formerly National Public Radio, is a privately and publicly funded non-profit membership media organization that serves as a national syndicator to 797 public radio stations in the United States of America.

Independent since 1971 - but still asks for help with certain productions
 PBSThe Public Broadcasting Service (PBS) is an American non-profit public broadcasting television service with 354 member TV stations in the United States which hold collective ownership.

They still have to get approval for shows.
 NPR AffiliatesCharge non-comm stations...Pay per coverage per coverage area - so Atlanta more than Macon.

Have to be on air a minimum of 18 hours and have to have a full-time studio and 2 studios.
 3 Basic Problems with PBS/NPR1) Money: survive primarily on $$ from donors/telethons.
2) Politics: issue of whether government money should exist in b/casting.
3) Programming: not cheap to produce and often lacking in quality
 UnderwritersDonors to PBS/NPR called underwriters - the Public Broadcasting Act of 1966 deemed that underwriters couldn't say certain things - like Coke is better than Pepsi.
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