Analogue Vs Digital Media Essay, Research Paper
MEDIA WARS
1.0 Introduction
Throughout this report we shall be examining Digital and Analogue commercial satellite television, and evaluating their role as advertising mediums. Our aim is too provide an overview including their strength s and weaknesses, cost per thousand, level of impact and overall contribution towards an above the line advertising campaign. We are the first group to do this topic therefore we have no assumptions about what the results will be.
Brand enforcement needs above-the-line advertising tactics such as these mediums, they help enforce a global message, and give companies a slight gain from economies of scale and scope throughout their campaign. But first we shall provide you with a more detailed description of these mediums.
2.0 Medium Description Satellite
Satellite television became available in the USA in 1980 and in the UK in 1984. An analogue satellite set in orbit transmits its signal towards the earth; a satellite dish placed on the outside wall of your home then receives this. This signal is relayed to the satellite receiver, which is connected to your television. The main advantage this has given us is more channels, which in turn provides wider markets, better regional coverage. Another advantage satellite has given us is the ability to target our market more effectively. This has been achieved through specialist channels such as Sky sports. International influence can be responsible for creating a more diversified culture with foreign influence within the UK. Cable Television also uses Analogue technology offering most satellite television channels. However instead of the user receiving the signal via a satellite receiver onto their television fibre optic cables are laid under ground by the Cable Company, which feed the signal to your Television. A set top box that works similar to a satellite receiver is then used to feed the signal to your television. Cable companies offer a variation of packages including some local stations not available on satellite. The amount a customer pays each month is dependent on the amount and/or range of channels they have access to.
2.1 Medium Description Digital
Digital broadcasting technology arrived in the UK in 1998. Companies such as ON digital and Sky digital are promising to revolutionise they way we watch, listen and interact with our televisions. Sky digital has 350,000 customers, whereas On digital has 110,000 customers. Digital television opens a new interactive scope for advertising, but is still held back by cultural dissimilarities and regional legal restrictions. A problem faced by satellite and cable alike. Until now radio and television have used analogue broadcasting technology. This converts sound and pictures into waves. These waves are received by aerials or satellite receivers and converted into sounds and pictures. Digital broadcasting uses slightly more advanced computer technology. It converts the sound and pictures into Binary digits, and transmits the signal as data. This enhanced system promises clearer picture quality, more channels, as digital channels require less frequency space, and even the ability to watch what you want when you want. Better interaction like this; will hopefully lead to innovative advertising tactics and ingenious marketing strategies. Soon digital technology aims to enable consumers to watch Radio and even browse the Internet from their televisions. The UK claims to offer the best digital package in the world available from Sky Digital.
3.0 Advantages of Medium Satellite
There are many advantages to advertising on satellite, which companies should consider before choosing any other medium.
Large and diverse audience
Satellite and cable have much larger viewing audiences than that of the new mediums, such as digital television. 6.8million homes have satellite, and that means 6.8million potential customers. An estimated 110 million was spent on satellite purchase, and 15 million on satellite rental in 1996.The reach that satellite alone gives us can be seen below:
% Reach of Sky Television
Housewives 15.6%
Men 16+ 22.3%
Women 16+ 14.6%
Kids(4-13) 13.9%
Source:Marketing Pocketbook 1997
Wide range of channels
Due to the wide range of channels available on satellite, the target audience can be more clearly specified, as many of the channels have distinctive audiences. Therefore, specific products can be advertised on related channels. For example, toys advertised on Nickelodeon, and sports equipment advertised on Sky Sports. Research done by BARB shows the share of viewing that satellite has.
% Of commercial viewing in satellite/cable homes
Sky 1
Group Children 16-34 Women Housewives All Individuals
% Share 6.4% 7.4% 6.9% 6.2%
Sky News
Group ABC 1 Men ABC1 Adults Men All Individuals
% Share 2.1% 1.7% 1.6% 1.3%
Sky Sports 1,2 &3
Group 16-34 Men ABC1 Men Men All Individuals
% Share 10.4% 12.1% 10.7% 7.4%
These figures coupled with the fact that 6.8million homes have Sky, helps to give some insight into the potential that it holds for advertising.
Local and global channels
Both International and local companies can advertise on satellite. As well as satellite providing global coverage for international companies, it also provides a forum for much smaller companies. Specifically, cable has many local channels such as Croydon Cable News and the community channel, which provide scope for local advertising.
Low Cost per Thousand
As can be seen from the table below, the C.P.T for satellite is significantly less than that of commercial terrestrial television, around half in some cases. This allows companies advertising on satellite to significantly reduce their costs of advertising.
ohp2
Adults Housewives Adults(16-35) ABC1Adults
ITV 5.95 9.6 23.82 16.56
C4 6.02 10.14 20.73 15.35
GMTV 5.68 7.76 26.27 16.30
Satellite 3.64 7.35 8.19 9.45
Source: Y&R estimates (Jan-Dec 1996)
Sponsorship
Companies, who advertise on Sky, have more scope to sponsor the type of programs, which they think enhance the feel of their product. For example Ford sponsors football matches. This also helps to promote global branding. Between 1994-1995, the amount spent on sponsorship doubled, showing how effective it is. Sponsorship also provides close relations between Satellite companies, and the sponsors, which can go way beyond traditional advertiser/media owner relationships. Sponsorship can also enhance or improve a brand image and values, and it acts as a platform for a wide range of marketing activities to build effective promotions. In a multi-channel environment, it can also help target consumers more effectively. It also allows the advertiser time outside the commercial breaks. This makes positive associations with a consumer who may be tired of the amount of regular commercials that appear in a break.
Commercial Impacts
Finally, and probably most importantly, is the commercial impact. Sky commercial impacts are shown below:
13 w/e 14/06/98 13 w/e 13/04/97 % change
Individuals 9,731,551,000 9,192,031,000 + 5.9%
Adults 8,304,835,000 7,779,758,000 + 6.7%
Adults 16-34 3,487,118,000 3,098,547,000 + 12.5%
Men 4,810,275,000 4,450,078,000 + 8.1%
Men 16-34 2,008,434,000 1,731,175,000 + 16.0%
ABC 1 Men 2,038,549,000 1,780,712,000 + 14.5%
Housewives 16-54 3,123,426,000 2,719,684,000 + 14.8%
Source:BARB
As can be seen from the above table, as well as Sky advertising having a high impact, the impact is also growing year on year. The chart below shows us the year on year % change in relation to Sky s % share of total commercial broadcast:
ITV Channel 4 Sky
Adults – 3.1% – 2.2% + 16.4%
Adults 16-34 + 3.6% + 9.1% + 14.9%
ABC1 Men + 0.5% + 5.7% + 19.2%
As can be seen from the above chart, Sky s % share of total commercial broadcast has increased much more rapidly, year on year than commercial terrestrial television.
3.1 Disadvantages of Medium Satellite
These are the disadvantages for companies who choose to use satellite as their advertising medium.
Interference
There is a lot of interference on satellite. It is not as bright and clear, as it is on digital, this means that the quality of the pictures and sound is not perfect.
Target market
You can’t really identify your target market on satellite as well as you can on digital. On digital people have to pay for most of the channels they want to have, so you can see who watches a particular channel. On satellite you can’t really do due to the family orientated packages.
Too many commercials
There are too many commercials on satellite so people get bored or annoyed seeing them or loose interest in them. Many commercials are also very long and it is not good for your product or service, if people are annoyed by your commercial.
Old fashioned, digital is the future
Satellite is old news, digital is the future. Digital changes the way we advertise, it opens a whole New World. Usually you would use a normal television ad to create an image or to give general information about a product or a service. With digital you can actually interact with the consumer, this means you can give the exact information he or she requests in their own language. This would be impossible on satellite. Also you can tell the person for instance where promotion are being held in his or her neighbourhood.
Here are some examples of how you can use digital television as your advertising medium:
An American record selling company broadcast a commercial during the Grammy awards. The commercial allowed customers to directly order a CD.
Another example is of a Danish beer company, they created a commercial where viewers could play a game they did this to launch their new beer brand.
As you can see advertising in this way allows you to measure the response properly so you can see how effective the commercial has been all this is impossible on satellite.
Social and legal issues
If you advertise on satellite there are several social and legal issues you have to bear in mind like:
- CULTURAL DISSIMILARITIES
For instance certain symbols can have different meanings in different countries
- LEGAL RESTRICTIONS
In the UK it is illegal to broadcast a commercial about smoking, but it is allowed in the USA
- LANGUAGE
If it is not your own language it can be easily misinterpreted which can not happen on digital because you can choose you language
- INAPPROPRIATE BRANDING
For instance BMW sends different messages all over the world
Aesthetically displeasing dish
Last is that the dish you need for satellite television looks ugly on your house
4.0 Advantages of Medium Digital
Digital TV is transferred through airwaves in the form of binary codes. Just like computers the language is in the form of 1 s and 0 s. This technique enables a consistently high quality reception, which is free from interference, which you get occasionally from terrestrial TV
One of the most popular features of digital is the amount of channels you can command. The advertising Associations web site on Error! Reference source not found. stated, a given range of frequencies can thus accommodate a much larger number of digital channels than conventional analogue ones. Digital terrestrial TV could command 30 or more channels eventually whilst digital satellite and cable based broadcasting could provide a further 200 each. This basically means the frequency range is much larger than terrestrial. Appendix 1 has 3 diagrams. The 1st diagram is of a normal frequency on terrestrial TV where a channel is found. The 1st section is the part where there is no sound or picture. The 2nd section is the part where there is picture but white (no) sound. Eventually you get to the channel where there is picture and sound. As the frequency is symmetrical, the other side is the same. It keeps on going until you reach the next part where there is picture and white sound. This can be seen in the 3rd diagram. The 2nd diagram shows how when terrestrial TV gets 1 channel, digital television can command 20 channels. This diagram supports the last part of the statement proving how they can command up to 200 channels.
With the fantastic picture quality, CD quality sound and amount of channels available, the future of television is digital. On Sky s official web site, Error! Reference source not found., they are promoting the fact that this is the future, stating, Sky digital brings you a new dimension in quality, TV choice and viewing control beyond anything you have ever experienced or imagined; it is the present, and the future, Digital will transform not only the way you watch television but also the way you use it.
Another advantage is the rapid expansion that digital has had since its official arrival on October 1st 1998. On Error! Reference source not found., a statement from Sky s chairman states, Sky digital is off to a superb start with 250,000 subscribers on December 31st 1998. In the Mirror newspaper (9.4.99), an article titled Digital Watch stated, TV company ON digital announced yesterday it has signed up 110,000 customers since its November launch. It hopes to attract millions more with 2 new soaps. Both of these statements show how fast digital is growing and this not only keeps potential customers aware but also companies who want to use Digital as an advertising medium.
To stand out you need to have a simple proposition which is easy to understand Brand proposition which is complicated or inconsistent, have no chance
(Hugh Davidson)
Digital TV as a whole has a very simple brand proposition. They knew it needed to be set in a clearly identified and understood target market. Three factors of brand proposition that gives digital an advantage are: Functional Attributes, Symbolic Values and target market.
Functional attributes could be clear picture and sound. Due to binary codes, therefore little to no interference. Watching programmes when you want is a key attribute as this benefits both advertising agencies and consumers. Consumers can choose roughly what time they want to watch programmes and advertisers can work out viewing trends and promote then. Interactivity is a potent feature as soon you will be able to shop, bank and almost anything you need just at a touch of a button.
Symbolic Values is the intangible features digital possesses. It is new, therefore fashionable giving the consumer a classy, innovative image. Also the dish is different and more stylish than the satellite mesh dish.
The target markets that digital aims for are the mass market. As they have the capacity to hold a number of channels, they can segment the market. For example, Sky sports aims for the mass sports markets. They can segment this with just having channels for football. They can further segment this by having channels for specific teams. MUTV is a prime example as Manchester United has its own channel.
4.1 Disadvantages of Medium – Digital
The reason why companies chose to advertise on satellite instead on digital is because advertising on digital has to many disadvantages yet.
It’s unknown
A lot of people don’t know digital yet, so why advertise on digital if you can’t reach your customers?
New
It is to new yet, you don’t know if it will become a success, it is a big risk to advertise on digital because if it goes wrong it can cost you a lot of money.
Set-top-box
People need to have a digital set-top-box and a dish that connect to their television, this is very expensive it will cost about/approximately two hundred pounds to buy and than you have also to pay a monthly charge.
Too early to measure your viewers
It is to early to measure your viewers yet, because the system that measured viewing was designed to record the frequency of each analogue channel, but with digital, several channels are carried on a single frequency and the meters cannot separate them. So the results you would get are not truly representative of the views on your market.
Too many channels
There are so many channels, the change that people see your commercial or advertisement is not big. Also digital television brings more channels which show the same programmes over and over again, if you have a specific market and you want people to see your advertisement, you have to broadcast it on all the channels and that is very expensive.
No experience in advertising on digital
There is not a lot of experience in making advertisements on digital yet, you don’t know what the best way is to make an advertisement on digital. If you make a wrong advertisement it can damage your companies name and image.
Adidas re-invented their traditional approach to pan-European advertising. Now we will tell you what their situation, objectives, strategy, tactics and their target market are using the help from P.Smith in his book, Marketing communications.
Situation: Adidas is the global operating market leader in the manufacture of sport shoes, sports wear and sporting goods.
Objectives: The first important objective for Adidas is the maintenance of creative standards and second to ensure that this is effectively and efficiently administered. They also want a deeper totality of image and they want to reinforce their position at the heart of sport, innovating in a way that surprises, challenges and entertains youth.