........... .1...:.. 43.49493. A... claim. 2. . . . ... .1...Q‘44. :.‘."f,“::" .". r U o — 6 >4 ' I a c'. .1 7'4? ,1- . . .. rim ””2139fl ,. _......_..3... as... . . 1 . w .. .3 (.4. v. 1.. I4.- . . . . . m. firm . x.‘ . .. .7... mfiuwrnu’x...$mn 93.44..“ . . ”ma...“ ~13 9. . . fat...» .4..M..r£..o. %..¢v#4r.....r4 2E. .44 4 9.11.4. . 4...— «1.4....» v .1h.11!1|11\ ‘ 411.144 .4 44 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 3/210062 6493 gamma-um 2;. i E: m. it? i: mcnigaaa ’1:ng g; University c o. _ I- . W” THESIS ‘1 This is to certify that the thesis entitled CASE STUDY: THE FEASIBILITY 0F SELLING LOCAL ADVERTISING ON A MIDSIZE MIDWEST U.S. CABLE SYSTEM presented by Shirley S. Szabadi has been accepted towards fulfillment of the requirements for Master of Arts degree in Telecommunication ;/¢/é7flww M Major professor / Thomas F. Baldwin Date Sj/Z/(I 0-7639 MS U is an Affirmative Action/Equal Opportunity Institution MSU ~RETURNING MATERIALS: Place in book drop to LIBRARJES remove this checkout from __—. your record. FINES will be charged if book is returned after the date stamped below. 3' J's: 5*% 5005 4;“ff331 .~ .0 It - ’ All; 3. s -1’}" m- D; .‘L. . ,I', aid“; :v’ p ‘1 ifitfllligrgygfi CASE STUDY: THE FEASIBILITY OF SELLING LOCAL ADVERTISING ON A MIDSIZE MIDWEST U.S. CABLE SYSTEM By Shirley S. Siabadi A THESIS Submitted to Michigan State University in partial fulfillment of the requirements for the degree of MASTER OF ARTS Department of Telecommunication 1985 ABSTRACT CASE STUDY: THE FEASIBILITY OF SELLING LOCAL ADVERTISING ON A MIDSIZE MIDWEST U.S. CABLE SYSTEM By Shirley S. Szabadi This research examines the feasibility of selling local advertising time on a cable system, located in Plymouth, Michigan. The region served by this cable system is situated within the Detroit DMA as defined by Nielsen. As such there are few media outlets for advertisers interested in reaching this particular market without incurring the high price and waste of advertising, in the Detroit based media. A survey was conducted to determine the viewing audience of the advertiser supported services and local origination channels. The average minute audience was calculated and two sample rate cards were developed. It was found that ESPN, the USA Network, CNN, MTV and CNN Headline News attracted the greatest average minute audience. Results conclude that the cable system can show a positive Operating income through advertising sales. ACKNOWLEDGEMENTS I wish to express my sincere gratitude to the many people who have helped in the completion of this thesis. Dr. Thomas F. Baldwin whose guidance and patience was instrumental throughout the entire process; Dr. Thomas Muth, who encouraged and motivated me to complete my thesis; Carrie Heeter (Ph.D. Candidate) and Dave D'Alessio (Ph.D. Candidate) for their assistance in the data analysis; Denny Katell, for his help in the media analysis; Suzanne Skubick, for all her help at Omnicom, and Ann Spalding for devoting so much of her time to getting the job done. A special thanks to my friends, both here and at home, whose constant moral support was invaluable. And most of all, to my family, for their loving encouragement and continued support throughout my graduate career. ii Page LIST OF TABLES .......................... vi CHAPTER 1. INTRODUCTION ...................... 1 Notes .......................... 3 2. LITERATURE REVIEW .................... 4 Introduction _ ...................... 4 Cable Television Audiences ............... 8 Growth of the Cable Advertising Industry ,,,,,,,, 11 Notes ......................... 13 3. OMNICOM AND THE PLYMOUTH AREA MARKET ........... 17 Description of the Omnicom Cable System ,,,,,,,,, 17 Description of the Omnicom Franchise Area ........ 20 Local Media ........................ 22 Broadcast Radio .................. 22 Newspaper ..................... 26 Detroit Based Media .................. 28 Broadcast Television ................ 28 Broadcast Radio .................. 30 Newspaper ..................... 32 Cost Comparison .................... 34 TABLE OF CONTENTS A Brief Examination of Other Cable Advertising Operation, 34 Notes ......................... 46 iii CHAPTER Page 4. AUDIENCE SURVEY METHODOLOGY ............... 48 Introduction ...................... 48 The Universe ...................... 48 The Sample ...................... 49 Questionnaire ...................... 49 Adult Questionnaire ................... 50 Teen Questionnaire ................... 54 Implementation of the Test Instrument ,,,,,,,,,, 54 Data Analysis ...................... 56 Response Rate ...................... 57 5. AUDIENCE SURVEY FINDINGS ,,,,,,,,,,,,,,,, 50 Adult Data ........................ 60 Correlational Analysis ,,,,,,,,,,,,,,, 74 Chi-Square Analysis ................ 81 Audience Demographic Characteristics ........ 84 Teen Data ........................ 92 Correlational Analysis ,,,,,,,,,,,,,,, 99 Notes .......................... 104 6. DEVELOPMENT OF ADVERTISING RATE CARD AND CONCLUSIONS , , 105 Introduction ...................... 105 The Environment of the Omnicom Cable System ,,,,,,, 105 Conclusions from the Survey ,,,,,,,,,,,,,,, 107 Goals of a Rate Card ,,,,,,,,,,,,,,,,,, 110 Pricing of Rate Card ,,,,,,,,,,,,,,,,,, 110 In-House Commercial Production ,,,,,,,,,,,,, 119 Operating Expenses ................... 120 Operating Revenue and Operating Income Projections , , , 122 iv CHAPTER Page Conclusions ....................... 128 Limitations of the Study ................ 129 Notes .......................... 131 APPENDIX A ............................ 132 APPENDIX B ............................ 140 APPENDIX C ............................ 149 BIBLIOGRAPHY ........................... 156 TABLE 00 \JO‘U‘l-b oo 10. 11. 12. 13. 14. 15. 16. LIST OF TABLES Primetime Ratings for Advertiser Supported Cable Users Surveyed by Nielsen for December 1984 ...... Omnicom Cable System .................. Omnicom Basic and Extended Basic Service (Sat-Pac Tier) .................. Characteristics of the Plymouth Region ......... Population Characteristics of the Plymouth Region . . . Detroit Based Media--Televison and Newspaper ..... Detroit Based Media--Radio .............. Local Newspapers in the Region of the Plymouth Cable System ..................... Average Costs of Advertising on the Detroit Network Television Stations (ADI/DMA = 7) ........... Average Costs of Advertising on the Detroit Radio Stations ....................... Cost Per Thousand Circulation of Newspapers, Using 600 Lines, Detroit Based and Local Newspapers ..... Cost Per Thousand Viewers of Broadcast Television and Radio Listeners, Detroit Market .......... Most Successful Accounts for Cable Advertising . . . . Comparison of Cable Advertising Operations of Cable Systems Similar to Omnicom .............. Comparison of Cost Per Thousand Subscribers Among 25 Cable Systems Selling Advertising ......... Breakdown of the Final Status of All Adult Interviews . . vi Page 18 . 19 21 , 23 24 25 28 31 33 35 36 38 4O 42 58 TABLE 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. Page Percentage of Adults in Cable Households Viewing Each Programming Service for the Seven Day Period, the Weekdays and Weekend ................... 61 Number of Adults Viewing Each Programming Service at Least Once During a Seven Day Week, Weekdays and Weekends ......................... 63 Distribution of Viewing to Advertiser Supported Services on the Basic Cable Tier, by Sat-Pac Subscribers and Basic Only Subscribers .................. 65 Average Number of Adult Viewers Per Minute, Per Day, Broken Down into the Seven Day Week, Five Day Week and Weekend for Each Programming Service ......... 67 Average Number of Minutes Spent Watching Each Channel Across the Seven Day Week for all Adult Subscribers, both Viewers and Nonviewers ............... 71 Average Number of Minutes Spent Watching Each Channel Across the Seven Day Week for Adult Viewers Only ..... 72 Comparative View of the Average Number of Minutes Viewed for the Advertiser Supported Cable Services and Local Origination Channels by Daypart for the Seven Day Week ........................ 73 Correlational Analysis of Viewers of the Cable Services on Sat-Pac Tier and Their Demographics .......... 76 Correlational Analysis of Total Viewing of Adults, of the Basic Cable Services and Their Demographic Characteristics ..................... 77 Correlational Analysis of the Total Viewing Time of the Sat-Pac Cable Channels Among Adult Viewers of These Services ......................... 79 Correlational Analysis of the Total Viewing Time of the Basic Cable Channels Among All Adult Viewers of These Services (including Sat-Pack Tier Subscribers and Basic Only Subscribers) ................. 80 Chi-Square Analysis for Sat Pac Services - Significant Differences in Demographic Characteristics Between Viewers and Nonviewers ................. 82 Basic Cable Services - Significant Differences in Demographic Characteristics Between Viewers and Nonviewers 85 vii TABLE 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. Significant Differences of Demographic Characteristics Between Sat-Pac Subscribers and Basic Only Subscribers . . Demographic Characteristics of Adult Cable Subscribers . . Ratings and Number of Teens Viewing Each Programming Service at Least Once During the Seven Day Week . . . . Average Number of Teenaged Viewers Per Minute, Per Daypart, Per Day, for the Seven Day Week ........ Average Number of Minutes Spent Watching Each Channel Across the Seven Day Week for All Teen Subscribers, both Viewers and Nonviewers .............. Average Number of Minutes Spent Watching Each Channel Across the Seven Day Week for Teen Viewers Only . . . . Comparative Analysis of the Average Number of Minutes Spent Viewing by Teens, Per Daypart, for the Seven Day Week ........................ Correlational Analysis of Teen Viewing of the Sat-Pac Services ........................ Correlational Analysis of Teen Viewing of the Basic Only Services ..................... Average Number of Viewers 12+ Per Minute, Per Daypart, Per Day, Across the Seven Day Week ........... Summary of Cost Per Thousand of Competing Media -- Televison and Radio .................. Summary of Cost Per Thousand of Competing Media - Newspaper ....................... Distribution of 5 Star Ranking Among the Selected Cable Channels ..................... Advertising Rates According to the 5 Star Ranking Operating Revenue, Operating Expense and Operating Income Projections, Year 1 .............. Advertising Rates According to the 5 Star Ranking, Reduced Rates ..................... Operating Revenue, Operating Expense and Operating Income Projections, Year 1, Reduced Rates ....... viii Page 87 89 94 95 97 98 100 101 102 112 113 116 117 . 123 CHAPTER 1 INTRODUCTION This research proposes to examine the feasibility of selling local advertising time on a midsize cable system. The study will focus on the Omnicom cable system located in Plymouth, Michigan. This 54- channel system is approximately four years old, with 14,036 subscribers.1 Until now, the Omnicom system has generated its revenues from subscrib- er fees only. However, management now wishes Eb consider the sale of advertising on their advertiser supported cable networks, as well as spots on their local origination channels.2 Currently there are 11 advertiser supported cable networks carried by Omnicom. These include MTV, CNN and CNN Headline News, the Weather Channel, The Nashville Network, Lifetime, the Christian Broad- cast Network, ESPN, the USA Network, the Financial News Network, and the Satellite Program Network. Of the local origination channels, two are currently being considered for use in selling advertising spots. Channel 15, the Community and Access Programming channel and Channel 8, the Omni Family Home Theater and Community Programming channel. (Refer to Table 3 for channel lineup) The objectives of this research are threefold. First the media environment of Plymouth will be evaluated; that is, what type of media are available to an advertiser who wishes to advertise in the Plymouth region and what are the prices being charged. The second objective 1 is to identify the viewing audience of the cable franchise area. This analysis will evaluate the size and demographic makeup of the viewing 5 audience, and the time periods in which viewing is occurring. The evaluation will be conducted for the 11 advertiser supported networks which offer local availabilities, and the two local origination channels of interest. Finally, the last objective is to develop a sample rate card for the Omnicom cable system based on the gathered data. Chapter 2 of this research will include a discussion of the development of cable television as an advertising medium. Chapter 3 will describe the Omnicom Cable system in Plymouth, Michigan, the population characteristics of the region, the existing media structure, and will examine other cable systems currently selling advertising. Chapter 4 will detail the methodology used in the survey research with a discussion of the results of the research in Chapter 5. The last chapter will establish guidelines for developing a rate card, leading to a sample rate card, and projections of operating income from the sale of advertising. NOTES -- CHAPTER 1 1Subscribing households as of August, 1984, according to Omnicom cable, Plymouth, Michigan. 2An advertiser supported cable network is a cable programming service, transmitted via satellite to cable systems, that sells national network advertising and provides each cable affiliate with a specified time per hour, to sell advertising locally, referred to as local availabilities. This, in contrast with superstations, that are independent broadcast television stations, that are retransmitted via satellite to cable systems, but do not offer local availabilities. Thomas F. Baldwin, D. Steven McVoy, Cable Communication, (Englewood Cliffs, N.J., Prentice-Hall, Inc., 1983), pp. 7-8. CHAPTER 2 LITERATURE REVIEW Introduction According to recent Nielsen figures, cable television reached 42.5 percent of all U.S. television households, in May of 1984.1 This figure has been climbing over the past few years and is expected to reach 50 percent by early 1986.2 The consequences of these facts can no longer be ignored by the advertising industry. Cable advertising is fast becoming big business, with revenues from the sale of advertising growing each year.;_However as a new growth industry there are still many unanswered guestions which need to be addressed. Cable advertising has already proven its effective- ness for some advertisers but many are still Skeptical. The advent of satellite fed programming has led to a new showcase for national advertisers. In 1976 the launch of the Turner Broadcasting Corporation's superstation, WTBS which reached national audiences, meant that national rates could be charged to advertisers. This was followed by an onslaught of other programming services transmitted via satellite, which are advertiser supported. The increasing penetration rate of cable among U.S. households, along with the develOpment of advertiser supported cable networks, has resulted in a greater choice for the television consumer. The expanded 4 number of channels will make reaching these households with advertising a more difficult task. It is also estimated that by 1990, the size of the average U.S. television household will decline to 2.45 persons.3 The issue then for advertisers is whether viewing patterns have changed as a result of cable television, and if so, how? Although these two questions have only recently been addressed, some important trends have begun to emerge. The most important is that broadcast network shares are declining. Recent Nielsen studies have shown a decline in broadcast ratings from 1983 to 1984 with a 4 percent drop in the average audience for the three networks.4 This decrease represents approximately 1.5 million television households.5 In compar- ing the first nine months of 1983 to 1984, Nielsen found that viewing of network affiliates, independents and public television, had all decreased.6 Over the past decade viewing of network affiliates across the total day has also declined from 24.5 percent to 21.9 percent. This means lower audiences for network advertisers and the national spot and local advertisers buying local availabilities in network programs. These facts all point to a change in the television viewing habits of the average U.S. household. If past behavior is indicative of future behavior, then perhaps a look at the emergence of FM radio (a new technology in its time) may provide some clues as to what may occur as a result of cable television. Although FM radio was commercially introduced in 1941, its popularity came about some 20 years later. When in the late 1960's FM found its market. By the early sixties the AM band had been almost fully allocated by the FCC and investers began to direct funds toward alternative available technology such as FM radio. The emergence of format radio was also as a result of FM radio. The programming goal of this medium was to differentiate itself from AM radio by targeting to separate markets using specialized program formats. As such FM radio found its niche within the market and emerged as a formidable competitor to AM radio. History has shown that while broadcast radio usage has remained stable, changes within the medium have occurred. In 1973 28 percent of radio listeners were tuned to FM.8 However some ten years later, FM listening accounted for 63 percent of the audience.9 Cable television can in some respects be seen as an alternative to traditional broadcast television.10 Although some may argue that cable television only provides more of the same, much of what is being presented to cable households has specific appeal to particular target groups. Just as with FM radio, cable television is being forced to differentiate itself in order to effectively compete for the viewing audience. Since recent studies have shown that erosion of the network broad- cast audience is occurring, what is happening to that audience? Is the audience turning instead to cable television? Some contend that while viewing of the commercial broadcast net- works has declined, the audience has turned to a variety of alternate media, such as independent broadcast stations, subscription television, multipoint distribution services and direct broadcast satellite services. Although not much data is yet available as to where exactly the audience is turning, some studies have found that cable television is in fact a cause and a beneficiary of the erosion of broadcast television audiences. The same Nielsen data which concluded that viewing of the broad- cast network affiliates had decreased between 1983 and 1984, found that cable viewing had in fact increased during that same time period.11 In the first quarter of 1984 viewing to advertiser supported, non- superstations, increased 120 minutes per week over the same time period in 1983.12 This increase indicates the potential for an even greater increase in the second and third quarters when networks may no longer be carrying their first-run programming.13 In addition, cable tele- vision's total share during 1984 was 19 percent14 (including pay television). A cable study conducted in two U.S. cable markets, Kansas City and New Haven, found that viewers watched less of the three commercial networks during primetime because of the presence of cable television}5 Whereas network viewing accounted for 90 percent of non-cable subscribers in these markets, this dropped to 73 percent for basic cable subscrib- ers and only 54 percent for multipay cable subscribers.16 Finally, audience data from the Cable Audience Methodology Study (CAMS) reveals that for all cable households between 9 a.m. and ll p.m., the network affiliate is receiving a 53 percent share while the total cable share is 25 percent.17 Of particular interest is the demographic group consisting of men, 18 years and older, whose share of total cable viewing is 32 percent versus the network affiliation share of 47 percent}8 In particular on Saturday and Sunday, between 9 a.m. and 4 p.m., the network affiliate share and the total cable share, for this demographic group, is the same at 40 percent.19 These findings imply that the advertising industry may need to reexamine its distribution of advertising dollars within the television market. Aside from deciding whether to divert funds to cable adver- tising, advertisers will also need to decide where to place their dollars to best reach desired target markets. This decision must be based on who is watching cable television and more specifically what are they watching and when. Cable Television Audiences Cable research studies have shown that cable households tend to be younger, better educated, more affluent and have larger households. A recent study conducted by Mediamark Research Inc. found that a cable viewer is 12 percent more likely to be between the age of 18 and 34, 16 percent more likely to be a college graduate, 23 percent more likely to have an income of $40,000 or more, and 20 percent more likely to have five or more persons in the household, than someone randomly selected from the population.20 Although demographic data concerning cable subscribers has made it easier to understand who is watching cable television, it is much more difficult to gather data on what cable households are watching. Nielsen measures all cable networks with 15 million or more subscribers.21 Currently nine cable networks are being surveyed by Nielsen when only a few years ago little data at all was available. Table 1 gives the average national primetime rating for 1984, for the nine advertiser supported networks. For the first nine months of 1984, Nielsen data showed advertiser supported cable, excluding superstations to be the fastest growing segment of television programming, particularly in the homes under- delivered by traditional television.22 Nielsen found a 3l.6 percent Table 1. Primetime Ratings for Advertiser Supported Cable Users Surveyed by Nielsen for December 1984 Network Rating WTBS 2.1 MTV 1.0 CBN .9 USA .9 ESPN .7 CNN .7 Nickelodeon .7 TNN .5 Lifetime .3 SOURCE: A.C. Nielsen as cited in Multichannel News, January 28, 1985. 10 increase from 1983 to 1984 in the number of minutes watched by all cable households, while amongst pay cable households there was a 29.8 percent increase.23 National research can provide a benchmark to determine viewer habits.24 However the data is not always generalizeable to individual systems. This is because different systems are unique in their program- ming lineup depending on the particular community25 and local system audience characteristics do not match national samples. National ratings can offer some basis by which comparisons between broadcast network viewing and cable network viewing can be made.26 However, some argue that this is not the best way to sell cable to advertisers. One advertising executive from Doyle, Dane, Bernbach suggested that ratings should only be used for the cable networks that offer similar programming as the broadcast networks, such as CBN, the Christian Broadcast Network and the USA Network.22 The other advertiser supported cable networks which are more specialized should be differen- tiated from these mass appeal networks using qualitative rather than quantitative facts.28 A study of ad agencies and advertising executives conducted by the American Media Council and the JMI Communication Group, found that cable's ability to segment audiences was rated as the most important benefit by 92 percent of respondents.29 In a similar study conducted by the Infomarketing Group, over 50 percent of senior agency and ad executives believed cable's real strength was its ability to reach segmented audiences.30 Some ad executives also contend that cable creates a more compatible environment for many product brands in that an ad for client's product can be placed in a specific cable network 11 whose personality matches that of the brand.31 Growth of the Cable Advertising Industry Paul Kagan,a cable television industry analyst, has estimated that for 1984, total advertising sales in the cable industry will amount to around $515 million, an increase of 46 percent from the estimated 1983 sales.32 Of this amount, it is believed that 15.5 percent or $80 million will result from the sale of local advertising, increasing to $125 million in 1985.33 In a positive step towards the development of cable advertising, several large advertising agencies have become involved. Benton, Barton, Durstine, Osborn, Inc. (8800) is expected to place $16 million in cable advertising this year, Grey Advertising will spend around $12 million in cable and Dancer Fitzgerald Sample has increased their cable advertising by 50 percent this year over last year.34 While 99 of the top 100 advertisers are now using some cable, most of their expenditures are devoted to national network spots.35 However some industry experts feel that regional and local cable systems will soon become an important part of the advertising mix.36 Some even suggest that local advertising, with its ability to pinpoint audiences demographically and geographically, may become more important than national advertising.37 Local advertising has particular appeal to local businesses with its low cost as compared to broadcast television. At present over 90 percent of buyers of local availibilities are local businesses within the franchise area.38 The rest is sold to regional advertisers, with 12 less than 2 percent sold to national advertisers.39 Cable advertising is a low priority for many systems still trying to increase their subscriber base. This in addition to the lack of adequate measurement for local systems creates a problem for local systems in selling advertising. In 1982 only 10 to 20 percent of cable systems were selling advertising.4O One solution suggested by the Vice President of Research at the Cable Advertising Bureau, would be for greater involvement of the Multiple System Operator at the local level.41 13 NOTES -- CHAPTER 2 1"Ad Tier," Cabletelevision Advertising Bureau Publications, (New York, NY) August 1984. 21bid. 3Arthur c. Nielsen, "The Outlook for Electronic Media," Journal of Advertising Research, Vol. 22, No. 6, (December 1982/January 1983), p. 11. 4A.C. Nielsen, quoted in Cabletelevision Advertising Bureau, "Cable Marketing Update," (New York, NY), 1985. 5"Season to Date: HUT's Down Again," Broadcasting, 3 December 1984, pp. 39-40. 6"Nielsen Nos. Show Cable Viewing is Up," MultiChBDDET News, 29 October 1984, p. 8. 7Nielsen, "The Outlook for Electronic Media," p. 12. 8Gale 0. Metzger, "Cable Television Audiences," Journal of AdVertising Research, Vol. 23, No. 4, (August/September 1983), p. 42. 91bid. 10The programming of the three commercial broadcast networks is aimed at the mass audience with similar tastes. Cable television with unlimited channel capacity can offer a diversity of more specialized programming choices. Thomas F. Baldwin, 0. Stevens McVoy, Cablg__ Communication, (Englewood Cliffs, N.J., Prentice-Hall, Inc., 1983), pp. 7-8. 14 11"Nielsen Nos. Show Cable Viewing is Up." Multichannel News, 29 October 1984, p. 8. 12"CAB: Nielsen Numbers Indicate Cable Thrives Where Broadcast Erodes," CableVision, 21 May 1984, p. 20. 13 Ibid. 14"Nielsen Nos. Show Cable Viewing is UP," MUITTCDDDDEI News, 29 October 1984, p. 8. 15"The Multi-Channel Environment Report," Television Audience Assessment, Inc., issued from Cambridge, Mass., 1983, p. 17. lerid. 17A.C. Nielsen, Cable Audience Methodology Study, quoted in Cabletelevision Advertising Bureau, “Research Report," (New York, NY). 181bid. ngbid. 20Mediamark Research Inc., Spring 1984, quoted in Cabletelevision Advertising Bureau, "Cable Marketing Update, (New York, NY). 21The total number of subscribing households from all cable affiliates, of a cable network, must be at least 15 million. 22A.C. Nielsen, quoted in Cabletelevision Advertising Bureau, "Memo," (New York, NY). 231m. 24"Cable Ratings Gain Industry Acceptance," Cabletelevision, 2 April 1984, p. 24. 15 25Ibid. 26These national cable network ratings can be used to sell cable to advertisers, by illustrating cable television's audience. 27"Audience Research Holds the Key," Advertising Age. 31 May 1984, p. 32. 281m. 29"Cable Ad Study Released,“ CableVision, 5 December 1983. p- 27- 30"Battling Internally, Externally," Advertising Age, 31 May 1984, p. 32. 31"Fostering Creativity," Advertisinngge, 3T May 1984, p. 36. 32“Healthy Growth for Cable Advertising, Broadcasting, 19 November 1984, p. 69. 33Ibid. 34"To the Cable TV Survivors Go the Spoils," Advertising Age, 11 June 1984, p. 66. 35Mediamark Research Inc., Spring 1984, quoted in Cabletelevision Advertising Bureau, "Research Report," (New York, NY). 36"Localization Wins and Loses." AdVéftTSlDSAflea 31 May 1984’ p. 38' 37"Localization Wins and Loses," Advertising Age, 31 May 1984, p. 38. 38Kensinger Jones, Thomas F. Baldwin and Martin P. Block. Cable Advertising; New Ways to New Business, Englewood Cliffs, N.J., Prentice-Hall, Inc., 1986 in press, 16 391bid. 40Ronald B. Kaatz, Cable: An Advertiser's Guide to the New Electronic Media, (Chicago, IL, Crain Books, 1982), p. 74. 41"Cable Ratings Gain Industry Acceptance," CableVision, 2 April 1984, p. 25. CHAPTER 3 OMNICOM AND THE PLYMOUTH AREA MARKET Description of the Omnicom Cable System As of August 1984, there were 30,330 homes passed in the Omnicom system with a 46 percent penetration rate (13,952 subscriber homes). The franchise of the system includes eight regions, however, this study is only concerned with the five contiguous regions consisting of Canton Township, the City of Northville and Northville Township, the City of Plymouth and Plymouth Township. These regions comprise 97 percent of all homes passed and include 89 percent of all subscrib- ers. The penetration rate is slightly lower in these regions at 42 percent, with total homes passed of 29,486 and a total of 12,477 subscribers. (See Table 2) The Omnicom cable system offers two levels of basic service to its subscribers; a basic and an extended basic service.1 The extended basic service or "Sat-Pac" as it is referred to,differs from the basic cable service in that it offers five advertiser supported cable networks (nonsuperstations) not available with the basic service. These include MTV, CNN Headline News, the Weather Channel, the Nashville Network and the Lifetime Channel. (See Table 3) The cable system charges $7.95 for the basic service and additional $7.95 for the extended basic service (except in Plymouth 17 18 Table 2. Omnicom Cable System Region Homes Passed Basic Basic Penetration Subscribers Rate Canton Township 12,849 7,024 54.6% Northville City 2,283 978 42.8% Northville Township 3,758 1,611 42.8% Plymouth City 3,848 1,265 32.8% Plymouth Township _ 6,748 2,864 42.4% TOTAL (5 regions) 29,486 12,477 42.3% TOTAL (Omnicom 30,330 14,036 46% Franchise) 19 65mm: enema L28 H. x34 H. 3555 .8532 9: E m ucfidummaéizumm F. “658182-234 H mzmz 2:58: .5215 zzu a 228 H. figmeamoaagm H E E Acwwp uma-ummv mov>emm uwmmm umucmpxm use uwmmm soumcso .m mpamh 20 Township, where because of low population density, the services are $8.95 each.) The Plymouth cable system is also very active in programming its local origination channels. Suzanne Skubick, Community Affairs and Programs Director at Omnicom, states her department's operating budget for 1984 was $200,000. As such they were able to program Channel 8, Monday through Friday, from 6 p.m. to To p.m., and Channel 15, Monday through Friday, l p.m. to lO p.m., with original local programming. (Some time periods were not always filled.) Description of the Omnicom Franchise Area The five areas of concern in this study are geographically situated in Wayne County, Michigan. According to 1980 census data these five regions account for approximately 4.6 percent of the population of Wayne County or 100,310 people (using 1983 data for the county population). It is also estimated that total retail sales for the five regions is more than $472 million. While the gross household income per household for the county was $25,872 in 1984, the median and mean income per family as reported in the 1980 census for the five regions, was substantially higher than this county average. (See Table 4) This implies an upscale demographic group within the Omnicom franchise area. In using a conservative estimate for the effective buying income of the region, it is believed that over $960 million can be attributed to this region. In fact, this figure is really higher because average incomes are higher in this area and the effective buying income for Wayne County is taken from 1983 data. 21 Table 4. Characteristics of the Plymouth Region * Populatjon Wayne County 2,177,600 Canton Township 48,616 Northville City 5,698 Northville Township 12,987 Plymouth City 9,986 Plymouth Township 23,023 TOTAL (5 regions) (4.6% of total Wayne County) 100,310 ** Total Retail Sales Wayne County (1983) $10,272,548,000 TOTAL (5 regions using 4.6%) 472,537,210 **' ’ Effective Buying Income Wayne County (1983) $20,936,658,000 TOTAL (5 regions using 4.6%) 963,086,270 *Household Income Wayne County (1984) — Mean income per HH $25,874 Median Income Mean Income ( er famil ) (per family) Canton Township , $28,096 Northville City 32,449 34,712 Northville Township 32,341 38,168 Plymouth City 25,843 29,173 Plymouth Township '31,140 33,762 TOTAL (5 regions) $149,122 $163T9TT' AVERAGE (5 regions) $29,824 $32,782 *SOURCE: General Population Characteristics, Michigan Census of Paputatiofi; I980, U.S. Department of Commerce, Bureau of Census. . **SOURCE: 1984 Sales and Marketing Management Survey of Buying Power, July 1984. 22 The breakdown of the population in this region indicate that 69 percent are 18 years and older, and that 54 percent of those over 18 years, are male. This may be of specific interest to those advertisers whose goods and services are aimed at this demographic group. Other than this distinction there are approximately the same proportion of men and women in the different age categories. (See Table 5) Since the region served by the Omnicom system is closely situated to Detroit, much of its media is obtained from the Detroit market. This includes eight television broadcast stations (three network affiliates, four independents, one public television station) over 30 different radio brOadcast stations and two daily newspapers. (See Tables 6 and 7) In contrast, the only local media, are five community newspapers published weekly and bi-weekly and one high school 2 As such there are few media outlets for the local radio station. advertisers, within the Omnicom franchise area to choose from, or for businesses external to the community, interested in reaching this market. The alternative is for advertisers to place their advertising dollars with the Detroit based media. However, in so doing, an advertiser is not only paying a high price, but is also incurring a great deal of waste in trying to reach the Plymouth area market. Local'Media Broadcast Radio The local radio station in Plymouth is a student run, high school station at the Plymouth-Canton High School. This station, WSPD, 23 mo acmEmeawo .m.= .ommfi .covpmpaaoa we mamcmu cmmmgu?z .mowpmvgmpumsmgu :owumpanoa pmcmcmu .mzmcmu 9: mo :mmgam .musméou "mum30m cmumfi msmcm> emwow can +wH mzmgm> +wH gow mew mwumswumm a No~.- mm;.o; o~m.mm soo.- Hme.mH mme.mm 4;uaaz omo.H; Num.m mmm.m; ¢m~.P oa¢.m Noe.mH avgm=30h coucau «m-mm em-mH +m; sm-m~ em-mH +m; >358 zmzoz zuz Hum.e¢ mwm.um m-.mo ~m¢.mm o;m.oo~ 4628 guaosa_aa mmm.~ ¢m~.oH mmm.m om;.m; _mm.~ mmo.m~ a.;m=:op guzosxpa --- Hmm.~ -~.H mm¢.¢ mmO.N wmm.m. a».o a_F;>;aLoz. .mo.~ woo.m mam.m omm.m mNm.m 2mm.~H avgmczop app.>gp.oz Nam.¢ eem.- www.5H cam.fim www.mH mam.me awng;OF coocau “a-m. em-m~ em-m; +m; mupozmmao: no.6apzaoa Howu scrumpzaoa mo Lwnszz page» cowamm cuzoexpa on» mo mowumpsmpungmgo :o'umpaaoa .m mpnoh 24 Table 6. Detroit Based Media--Television and Newspaper Television Broadcast Stations Affiliation WJBK-TV CBS WDIV NBC WXYZ-TV ABC WXON Independent WIHT Independent WKBD Independent WGPR-TV Independent WTVS ' PTV Newspapers Editions The Detroit Free Press Daily-Morning Edition The Detroit News All Day Table 7. 25 Detroit Based Media--Radio Radio Broadcast Stations Format WCLS (FM) Soft Rock, Adult & Contemporary WCXI (AM) Country WCXI (FM) Modern Country wczv (FM) Contemporary Hit Music WDRG (FM) Contemporary WGPR (FM) Popular Black/Gospel WHYT (FM) Contemporary WJLB (FM) Contemporary WJOI (FM) Beautiful Music WJR Adult Oriented WJZZ (FM) Jazz WLBS (FM) Progressive Top 40 WLLZ (FM) Adult Oriented Rock WLQV Religious WMJC (FM) Contemporary WMUZ (FM) Religious WNIC (FM) Adult Contemporary WOMC (FM) Adult Contemporary WQBH Urban Contemporary/Blues/ Gospel WQRS (FM) Classical Opera WRIF (FM) Adult Oriented Rock WWI All News/Information WWWW (FM) Modern Country WXYZ News/Talk *These are radio stations within the Arbitron Radio Metro Area. Other stations, not based in Detroit may be available to the Detroit market but are not included in the Arbitron Radio Metro Area. 26 broadcasts from 7:30 a.m. to lO:OO p.m. Monday through Friday and its signal reaches 25 miles to the northeast to West Bloomfield and the Lake St. Clair Shores, and west to Ypsilanti and Ann Arbor. A study conducted one year ago found that the station averaged 6,000 listeners per day.3 Since this station may appeal to the local community, it would seem a likely advertising medium for the local market. However as a high school station, it is noncommercial and does not accept advertising. The station does, however, accept underwriting of programs by local businesses for a contribution of $50 per year. Newspaper Two of the local newspapers, the Canton Observer and the Plymouth Observer are mutually owned and operated by the Observer and Eccentric Newspaper chain. These newspapers are 2 of 12 newspapers owned by this organization, and reach 12 different regions within the Detroit suburban market. The total circulation for the 12 newspapers is 151,654.4 Each edition is published twice a week on Mondays and Thursdays and can be purchased for 25¢ an issue or $2.00 per month. A retailer may place an ad in a full circulation buy, that is, in all of the 12 newspapers, at a cost of $54.95 per standard ad unit (SAU, the new column inch rate) for a one-time buy.5 However, an adver- tiser who wishes to target an ad to a particular market, within the suburban area may do so through selected editions. For the purposes of reaching our desired market (that which is served by the Omnicom cable system) a combined Plymouth/Canton purchase can be made at a cost of $8.88 per SAU inch, for a one-time purchase.6 Together these two editions have a circulation of 17,951, giving a 27 cost per thousand of approximately $.50 per SAU inch. Special rates are offered for longer term commitment, such as a six-week or fifty-two week period. In addition rates are discounted as the number of inches pur- chased increases and if an advertiser buys ads in both Monday and Thursday editions. The Canton Eagle is a weekly newspaper published every Wednesday. It is one of six newspapers published by Associated Newspapers in the Detroit region. The total circulation of the six newspapers is 45,510.7 The rate for a combination purchase of all six papers is $24.68 per SAU inch.8 However an ad in the Canton Eagle can be bought alone at a rate 9 of $8.70 per SAU inch. The Canton Eagle charges $.25 for home delivery, 10 The $.35 otherwise, and has a circulation of approximately 7,000. cost per thousand for this purchase is $1.24 per SAU inch. The Northville Record, with a circulation of only 5,353 is one of nine newspapers owned by Sliger/Livingston Publications in this region.11 An ad in this weekly publication (every Wednesday) can be bought in combination with the other papers or individually. The rate for all nine editions is $29.19 per SAU inch while the Northville Record alone costs $6.51 per SAU inch.12 Thus giving a cost per thousand for the Northville ReCord of $1.22 per SAU inch. The fifth local newspaper, the Community Crier, reaches Canton Township, the City of Plymouth and Plymouth Township, and charges $12.04 13 This weekly paper (Wednesday edition) costs $.25 per 14 per SAU inch. copy or $.85 per month, and has a total circulation of 21,041. (See Table 8 for circulation figures) The cost per thousand of an SAU inch in this newspaper is only $.57. An advertiser trying to target his/her ad to the Omnicom franchise area, should therefore buy a combination of either the Canton/Plymouth 28 Table 8. Local Newspapers in the Region of the Plymouth Cable System Newspaper (Circulation Canton Observer 8,945 Plymouth Observer 9,006 Canton Eagle 7,000 Northville Record 5,333 Community Crier 21,041 SOURCE: Michigan News Directory,published by the Michigan Press Association, 1985 edition. 29 observer with the Northville Record or the Community Crier with the Northville Record. These two Options cover the total desired geographic region and reach a total of 23,304 and 26,394 households respectively. As such, they prove to be the best advertising buys at the lowest prices ($.66 and $.70 CPM per SAU inch, respectively). ' Detroit BaSed Media Broadcast Television Of the eight television stations in the Detroit market, seven are commercially supported through advertising sales. Of these, three are network affiliates, that is: CBS, NBC, ABC, while four are independent stations. Even within the less expensive time periods, when viewing of television is low, the costs are too high for many local businesses to afford. For example, the average cost per rating point for television households in the Detroit market, during daytime viewing hours, is approximately $59.50.15 If the average household rating of the three networks, between Noon and 4:00 p.m. is seven, then the average cost per 30-second spot would be $416.50.16 For an advertiser trying to reach a large prOportion of the audience, several spots would need to be purchased, thereby increasing the total cost. This cost however becomes too great for some advertisers to bear and as such, they must either turn to other media or run a poor ad campaign using television. While daytime viewing is the lowest, offering the least costly advertising rates, primetime viewing charges the highest rates within the day. Although a smaller sized market may offer affordable primetime rates, the Detroit market, as the seventh ranked ADI/DMA (as defined by Arbitron and Nielsen) charges an average of $180.50 per rating 1 point per television household. 7 If the average rating for the three 30 networks during primetime is 18, then the cost of a 30-second spot during this time would be $3,249.00. Using an estimate of the cost per rating point for specific demographic groups, gives an indication of the price to reach segmented markets. The highest priced target group is men 18-34, as they are the most sought after demographic group and the hardest to reach. Table 9 illustrates the cost breakdown for the Detroit market. Just as television viewing patterns change throughout the day, they also change throughout the year. As such advertising rates will fluctuate depending on the time of year. The most expensive period being the Christmas heldiay season, the least expensive, during the summer months. Broadcast Radio One alternative to the high cost of television is radio. As a result of format radio an advertiser can be specific in targeting their message to a particular group of people, not only in terms of their demographic makeup but also their lifestyles. In particular in the Detroit market, there is a wide range of radio stations that appeal to many different types of people. They range from Contemporary to Country to Gospel. (See Table 7, Chapter 2) As such, an advertiser can eliminate some of the waste experienced in using television spots by using radio. For the purposes of advertising, the day is separated into four different time periods: AM Drive (6 a.m. to lO a.m.), Daytime (lO a.m. to 3 p.m.), PM Drive (3 p.m. to 7 p.m.) and Evening (7 p.m. to Midnight). 31 1555i .mmmH swaEm>oz .wprmosm cm mngmwwmwcmmpwmz .u.< "mumaom I -I. «« .mmm~ .Lmugmzo «ma mmcvaw pwxgmz arth Yumumsoma oo.mme.ma oo.o¢m.~m oo.owo.mn «H NH «H oo.~emw oo.m¢~m oo.o-» wswumepga em-m~ sm-m; «mm am-mm em-w; .Hmw em1m~ em-m_ .Hmw cmEoz . poqw ecoummiom Lma umou Pooch cmso: 1 mcvumm mmmem><1< c_o;am=o= 2 Scrum accuam\omoow An u wpmh xgozumz “weapon on» co mcwmmpgm>u< Ho mumou mmmgm>< .m o_amp 32 Radio use is at its peak during AM Drive, while the Evening period attracts the fewest listeners. With 28 radio stations in the Detroit market (some of these are based in Ann Arbor and Ypsilanti and are outside of the radio metro area, however, are included by Arbitron) the rating per station is low as compared with television. The ratings can range from .1 percent to about 3.5 percent.18 While the price per rating point may be high, the total cost per spot is substan- tially less than television. For example, the average cost per rating point for adults, during AM Drive time is $107.05.19 A 60-second spot with a rating of 2 percent would then cost $214.10. This rate is approximately one-fifteenth of the cost of a 30-second television spot during primetime. The breakdown of costs based on demographic groups for the different dayparts can be found in Table 10. Newspaper The two daily Detroit newspapers are The Detroit Free Press and The Detroit News. Both have a circulation of over 600,000 (645,623 and 657,015 respectively) and charge $.20 per issue.20 Both newspapers reach a large geographic region outside of the Metro Detroit area, but separate editions are published for the different suburban markets, for the purposes of advertising. As a result it is possible to target an ad to a particular geographic region. The Detroit News publishes four editions: Metro Detroit, Metro North Detroit, Metro East, and Metro West. In order to reach the Plymouth region, an ad within the Metro West edition would be purchased 21 at a rate of $69.97 per SAU inch. The total circulation of this edition is approximately 160,000.22 33 .mmm; .Eaaaaao pm, .ouwzw “3...: aces: "mumzomaa .mme m=.2am .ppoaoma .mm=.6m¢ owuam coaucaa< .mumaoma mm.om oo.em mm.om we; as am; am. Re. .4. m=.=a>m mm.~m oo.;m oo.mm mm; so; mm; HR. Hm. mu. m>waa 2a om.- ~0.Nm om.- Hm mm cw om. mm. so. mappxmo oo.mmm ~m.oma oo..mm co.” 30;” oo;» mm. mm. Hm. o>peo z< em-mN .m1mH .Hmm em1mm cm1mH .Hmm em1m~ em1m; .Hmw :8503 1 “cam uncomm1oo cmeoz 1 ucwoa mcvpmm can amouaa :msoz 1 mcwpmm mcomgwm mmmgm>m 03.2m o~.om mm.~m m;; mm NH; a“. an. as. a>maa z. oo.o. m~.mm So... co; Hm mm nu. ma. “A. ae.p»ao o;.om» mo.oow m~.~mm no.» New mu.” mm. as. mm. a>..g z< em-mm em-m_ .Hma sm1m~ cm-m; .Hmw sm1mm em-m; .Hmw, no: 1 yoga acouwm1oo cm: 1 «even mcwpmm Lon amouaa cm: 1.mcvuwm mnemgma mmmgm>m -.om oo.-; «a. a>mao 2a No.3. HH.mw Km. mewoxao om.emm mo.~o;m mm. m>wao z< +2 332 +2 333 +2 $32 3 uoam ucouwm1om Log pmou —muop pcvoa mcpumm can amouaa mcwumm mcomgma mmmgm>u< mo mumou mmmgm>< .oH mpamh 34 The Detroit Free Press publishes three editions to reach three different zones: The Southwest zone, the Northeast zone, and the East zone. Our desired market is situated within the Southwest zone which reaches 203,881 households.23 An ad within the Southwest edition would cost only $36.74 per SAU inch, substantially less than an ad in The Detroit News.24 Cost Comparison The difficulty in comparing the costs Of different media is that qualitative factors are ignored. For instance, the sale Of some goods and services are more effective in one media than another, depending on the type of product. The frequency needed to reach the target audience also varies from media to media. However some cost analysis can be performed comparing a 30-second television spot to a 60-second radio spot and 600 lines of print advertising.25 Although these comparisons are not equally effective in terms of delivering a message, they provide some basis for cost comparison. Tables 11 and 12 give an indication of various cost per thousand figures for the available media. A Brief Examination Of Other Cable Advertising Operations With only a small percentage Of cable systems currently selling advertising, there exists no one model that can be used on which to base a cable advertising Operation. Instead cable systems are discovering what works and what does not, based on trial and error. Although this may not be the best approach, it appears to be the only approach 35 Table 11. Cost Per Thousand Circulation of Newspapers, Using 600 Lines, Detroit Based and Local Newspapers Local CPM Plymouth/Canton Observer $14.34 Canton Eagle 36.04 Northville Record 35.27 Community Crier 16.59 * Detroit Based CPM The Detroit Free Press (full cichlation) $ 8.06 Southwest Zone 5.23 The Detroit News (full circulation) 8.76 West Edition 12.68 *Cost per thousand 36 Table 12. Cost Per Thousand Viewers Of Broadcast Television and Radio Listeners, Detroit Market *** *Television CPM Three Networks - Primetime DMA Households $5.40 Adults, 18+ 7.16 ** *** Radio CPM Metro Detroit Market - Adults, 18+ AM Drive $3.47 Daytime 2.79 PM Drive 3.97 Evening 4.49 *Cost per thousand of a 30-second spot. **Cost per thousand Of a 60-second spot. ***Cost per thousand. 37 at this time. However, it is possible to learn from cable systems presently involved in cable advertising and gain from their experience. The Cable Television Advertising Bureau (CAB) publishes information regarding cable companies in its CAB, Cable System Advertising Profiles. These profiles provide valuable information regarding the market Of the cable system, the personnel involved, the rates charged, revenue fore- casts, the most successful accounts and other comments concerning the particular system's successes and problems. Although each cable oper- ation is unique, this information can be helpful in the planning stage Of a system just beginning to sell advertising. Among the different systems profiled, there appears at least one distinct trait that is fairly consistent across all systems. This similarity lies in the type of accounts that purchase cable spots most Often. Specifically these are auto dealers and auto service and parts dealers. In addition, the service industry, particularly banks and financial institutions and restaurants and fast food chains, have been successful accounts. (See Table 13) The staffing of the ad departments is also fairly consistent throughout most of the systems profiled. On average two to three persons are employed, regardless Of the size of the market. The only exceptions are the larger interconnects that employ more than three peOple. Trying to determine what rates to charge for advertising and to develop an advertising schedule is a more difficult task. For the purposes of our study, an examination Of similar size markets may be appropriate. The Omnicom cable system, as part of Wayne County, represents a segment of the Detroit Area Of Dominant Influence (ADI) 38 Table 13. Most Successful Accounts for Cable Advertising Ad Accounts Percentage of Total Accounts Car Dealerships/Auto Parts and Service Banks and Financial Institutions Fast Food Chains/Restaurants Clothing Retailers/Department Stores Appliance Stores Others 37-0 23.0 19.0 9.0 6.2 5.8 39 as defined by Arbitron. The Detroit A01 is ranked the seventh largest in the nation and as discussed earlier, has a great deal Of alternate media available. The cable system which best approximates the Omnicom system, in size and market structure, is, U.S. Cable of Lake County, situated in a northern Chicago suburb. This market, as part Of the Chicago Designated Market Area (DMA) as defined by Nielsen, is the number three rank in ‘the nation. As such, it too is surrounded by many different forms Of media. (Six network and six independent stations, AM/FM radio stations, one daily newspaper and several weekly papers, See Table 14.) The system's basic penetration rate is 49 percent with 43,000 homes passed, and the system sells spots on its local origination channel and its satellite networks. The top rate charged is $35 per 30-second fixed spot, four times a day, for a minimum of one month. A run of schedule purchase for the same amount of time would cost approximately $12.50 per 30-second spot. In charging these rates the system was expected to sell 15 to 20 percent of its inventory and generate revenue of $7.14 per subscriber in 1983. (See Table 14) Another region similar in character, is the area served by the interconnect of the Greater Boston Cable System and Lowell Cable Television. The coverage area is within the number six ADI (Boston), serving three times the number Of subscribers of the Omnicom system. The media environment is therefore very similar to that found in the Plymouth region. The charge for a 30-second, run of schedule spot, with a 12 per week minimum, ranges from $20 to $75 per spot. A 30- second fixed position spot, is available but at a 100 percent premium. 4O Amwmfi oo.oH» u ooo.mH mop—xmmz ngm>wm No. -Nmm;v m~.mw -oo.ma New ooo.m z. m\z< N am =02m2>mpaau ppvx .um - . . ea .2 LEE .mgfifimfi goo om «mmflv no mfim om m» com 0H meowuoum ovum; e case: do mpnmo cowmm> mgwamamzoc xpxmmz m mgmamamzm: apwmu m oo.m~$ Hon 1.1pmonpm1 zu\umamfl New Ammmfiv NH.~S -oo.omm mm~.m¢ .1: F mucmucmnmucm e mmumwpmwmm seesaw: >p m o «Paco _szoA \coumom gmuomcu mtmamamzoc szmmz Pnem>mm Lmnmamzm: HFPmu P oo.m~a “we." poo.m¢ 2d\z< Hom1mfi Ammmfiv ¢~.~w 1cm.mfiw . ooo.- mugmucmgmucp m mapm._.cca xtozoac >2 m m zucaou axe; to mpnmu .m.= upom mu< mgmawgumnam uoam cowumgumcma mo “smegma can szcm>mm Log “moo ovmwm cowpvumgeoo «Pew: Ha<\u< mpnmu mo comvemanu .¢H mpnmh 41 The revenue per subscriber for this interconnect for 1982 was $7.17. (See Table 14) In contrast to these systems are two cable Operations similar in size, but different in their media structure. They are Vision Cable of Houma (Houma, LA) and Ft. Hill Cablevision (Seneca, SC). Both Of these systems experience little media competition from other sources. Although they sell a large proportion of their local availabilities, Vision Cable has a smaller channel capacity and sells advertising on four satellite networks, while Ft. Hill Cablevision only sells spots on two networks. The revenue per subscriber is higher in both systems, at $16.67 (1984) and $9.79 (August 1982 - August 1983) respectively. This as would be expected for smaller sized cable systems. (See Table 14) It is also possible to calculate the cost per thousand subscriber for a 30-second ad amongst various cable systems and use this as a means Of comparison. There appears no distinct relationship between the cost per thousand of a 30-second spot and the size or geographic loca- tion of the cable system. Generally, the cost per thousand of a 30- second cable ad runs anywhere from approximately $.30 to $2.00. (See Table 15). In comparing 25 cable systems, the highest cost per thousand sub- scriber can be found in the smallest cable system with only 4,200 sub- scribers. An ad placed on this system, the Home Vue Cable System, can cost up to $20.00, giving a cost per thousand subscriber Of $4.76. For U.S. Cable of Lake County, a cable system with a similar media environment to the Omnicom cable system, the average cost per thousand subscriber is $1.19. Vision Cable Of Houma, a cable Operation with a similar 42 Aumacwucouv mm.ow on” Hme mwm.em mm cowmv>mpamu unnamed: nm.mm\-.ow oo.m~»\oo.mm Hmm coo.“ o ugoaxgaazmz mo memumxm mpnmu :mowgme< en.fla\¢m.on o¢e\me Hon coo.mm om apnea z aaoeo em.om om“ Hue ooo.mm Na .ocH moppmcwa do «Paco :ovmw> mH.Hm\wm.om mnm\m~m Nfim mmH.¢m mm .ucH >H«.258 mxmg to «Fame mat Ne.ma\oo.fim NH»\Nm Hem ooo.n m >h mpnmu _mpcmo om.cm om» Hem coo.mu on cowmw>m~nou uwcmmuo me.~a\fio.fie “mm\m~w Ham oo~.¢~ Ne mpnmu xme< conga: on.¢m\mfi.fim omw\ma Nme oow.¢ e opaou 6.5 mac: mo.Hm\mN.H» o¢«\om» Ham ooo.¢~ P Acmaeou mpnmu xx» Asmm:\304v mupogmmao Azmw:\3oov cowumgumcma newnpgumasm u< ecoumm1om gum pmoo mmmgm>< mmagm>< mcvmvugm>u< mcwppmm mamumzm m_amu mm mcos< meanwgumaam ucmmzozh Log umou yo :omwcmueou .mp mpno» 43 Audacwacouv mm.oa\¢;.ow osw\o;» Hem ooo.m~ am co.m.>mpaau Paaraau LP< mo.o»\¢fi.oa oam\oma Hum ooo.mm; a. mpnao ceases Luggage NN.;»\m~.ow omw\~;m Nam coo.he Ho; a.tuuumwmwwwwmmw ~¢.ow sea Hoe ooo.om om co.m_>m.nau mamxoam ee.om mm” Hum oHH.~m mo; pam==06ta8=H comweaz N~.om\~m.oa omw\oew Noe coo.mN; m; ouatopou to apnea taupe: cm.om omm xmo ooo.wm NH mgomogmm mo :owumup 1::5500 wpnmu gmgoum mo.Ha\¢v.0m mn«\omw Hem www.me o :owmw> -apa» apamu _PazoS \mano coumom emanates m¢.om\m~.om oo.mmm\om.mm Hmo nmm.mn mm cowmv>mpnwo no.om\~m.om oo.-m\om.m« NNN oom.m~ case: we «Paco :owmm>a vm.om\om.om cmmm\oo~w xmq mom.mn~ ea aumccougmucH apnea “mngptoz Asm.z\3oov mupogmmaox Acm.=\zosv =OFSatomcma mamawtumnam u< ucoumm1om Log “moo mmogm>< mmmem>< Aamacaucouv .m_ 8.3a» 44 n¢.0m\mm.om m¢m\mmm Hem fiwo.mm m~.~m\om.om omm\wm Ham ooo.o~ oH.am\mm.om ofim\mm Hem ooo.m a ucmpmH one; we covmw>mpnmu Eoumw> mamasou mpnmu >H pmccmnowupaz Hm cowmw>mpnmu pr: .uua Agm.z\zonv mupogmmao: Agmwz\zosv gmapgumnam coo.“ emu poam magma mcwmpasm>n< ecoumm1om eon umou wmmgm>< mmmgm>< cowumgpmcma mcwawcumnam Hz NH ON mN om mN m N .E.a HH .E.a HH .E.a w .E.o m .s.c m cooz NH mxmo moH>me mHamu emu$< 1.E.q N 1.2.a m 1.5.q m 1cooz 1.5.m m Ho consaz muH>me mcHEEmemoeg comm com ucmxmmz use xmmz zoo m>HN .de3 ans cm>mm mzu oHcH czoo cmxoem .amo to; .Hemnxmo Lma.dH=cHz can memzmp> «H:u< mo eonszz mmmgw>< .ON mHapp 68 NumacHucoov 11 11 OH OH O O O xeozumz mzmz meocmcHN «spa O 11 OH O OH H N O O O O 11 N O zam O N OH N m N N OH OH OO Nm em NH N NH NO NO He ON NH O zzO NN NN mm mm NN NH N HO HO OO OO mH OO N O ON OO OO NH HH O me oHan emuN< 1.2.O O 1.E.O O 1.5.O m 1cooz 1.5.m O No ewnszz Hepee.e=oev .ON eHeeN 69 .E.O OH HHHOO OcHEEmLOOLO Lemma OH Hmccmgu use O Hmccmzute .s.O N HHHOO OOHEEOLOOLO msmmmo xeozumz mzmz Hewucmcwm che 11 H v H 11 11 m mH pmccwcu«* 11 H O N 11 11 O O Hmccezuee .E.O HH .E.O HH .E.O O .s.a O .E.O m :ooz NH msz muH>emm mHOmO Noum< 1.2.O O 1.5.O O 1.E.O m 1cooz 1.5.e O No gmasaz Neeaeeeceev .ON eNDNN 70 for the day between 3 p.m. and 6 p.m. The viewing to these cable services during the weekdays (Monday to Friday) reflect a similar viewing pattern, as the total seven day week. However when accounting for viewing during the weekend only, the results reveal a different viewing pattern across the day for these three services. That is, on the weekend, the greatest average number Of adults are watching ESPN from Noon to 3 p.m. and 3 p.m. to 6 p.m. While weekend viewing Of the USA Network and CNN still peak from 6 p.m. to 8 p.m., the next highest audience for the USA Network is between 6 a.m. and Noon, and between Noon and 3 p.m. for CNN. In fact, ESPN attracts more average viewers per minute on Saturday and Sunday between Noon and 3 p.m. than any other time. Table 21 illustrates the average number Of minutes spent watching each of the cable services surveyed, across the total sample for the seven day week. This data takes into account all subscribers, both viewers and nonviewers. In this cable system, it is expected that for all adults in all subscriber households, an average 13 minutes will be spent watching ESPN per week, an average of 10 minutes with the USA Network, and an average Of 8 minutes watching CNN. Table 22 provides the average number of minutes spent viewing a particular cable service, among only those peoole who are viewers of the channel, for the seven day week. Viewers spend the greatest amount Of time watching the USA Network (67 minutes) while the Weather Channel is viewed for the least amount of time (18 minutes). Table 23 provides a comparative analysis of the average viewing time of channel viewers, for the advertiser supported channels. While ESPN attracts a greater number of adult viewers during the 6 p.m. 71 Table 2l. Average Number of Minutes Spent Watching Each Channel Across the Seven Day Week for all Adult Subscribers, both Viewers and Nonviewers Average Minutes **Range Of Minutes Cable Service Viewed Viewed ESPN 12.8 10.5 to 15.1 USA Network 10.4 8.4 to 12.4 CNN 8.5 ' 6.9 to 10.0 *MTV 6.1 4.5 to 7.7 *CNN Headline News 4.3 3.2 to 5.4 CBN 3.2 2.1 to 4.3 *The Weather Channel 2.6 1.8 to 5.4 *Lifetime 2.2 1.3 to 3.1 *The Nashville Network 2.1 1.2 to 3.0 Satellite Program Network 1. .9 to 2.2 Financial News Network 1.6 .7 to 2.5 Channel 8 .3 .1 to .6 Channel 15 .3 .1 to .5 *The services are available only on the Sat-Pac tier or 51 percent of all subscribers. **at a 95 percent confidence interval (i t standard deviation (1.96)) 72 Table 22. Average Number Of Minutes Spent Watching Each Channel Across the Seven Day Week for Adult Viewers Only Average Minutes **Range Of Minutes Cable Service Viewed ‘ Viewed USA Network 67.4 58.9 to 75.9 CBN 59.5 47.5 to 71.6 ESPN 58.4 50.7 to 66.1 *MTV 55 44.5 to 65.6 *The Nashville Network 52.8 36.9 to 68.7 *Lifetime 48.7 34.4 to 63 Financial News Network 41.8 20.4 to 63.2 CNN 38.5 33.1 to 43.9 Satellite Program Network 32.2 23.3 to 41.2 *CNN Headline News 32.1 25.5 to 38.8 Channel 8 29.1 15.7 to 42.5 Channel 15 22.8 13.3 to 32.5 *The Weather Channel 17.9 13.4 to 22.4 *These services are available only on the Sat-Pac tier. **at a 95 percent confidence interval (x 4 standard deviation (l.96)). .E.O OH kuc: OOHEEOEOOLO mewo NHco OH Hmccugu use O chcucuee .E.O N o» .E.u N soc» OOFEEOLOOLO OLwNNo Npco zzua -1 1- 11 Ne NN NO OO oe ON HN ON NO NO .e.a HH epHOO ON NH 1- HN HN NO eO NO 33 OO OH NN Oe . .a HH 1.2.O O OH ON HN NN NN NO NO ON OH NO OH ON NN .e.a O 1.5.O O ON ON ON NN NO NO NO ON OO ON OH ON Ne .e.a O a. 1.5.O m 7 NN OH NO ON NO OH OH NO ON NO OH ON ON .e.a N 1 cooz 1- -1 Ne OO ON NO ON ON NN ON OH NN NN :82 NH 1.E.u O OH O 22.1 ZOO ZZO «N: zaNO ZOO eeHHpOHO Heoszz HOOOOOO Ozpz >Nz HeeaNeO OHeeeegOee OHHH>OOO2 OOH epeeeez OOH eeHHueez ZZO xmm: NOO cm>mm OOH Low HOOONOO NO OHmccOOO :oHHucHOHLO HOOOH use Omop>emm mHOuO umaeoaasm ewmmugm>u< as» to» memzmm> HHOu< NO umzmH> Omuchz No gmaEOz mOuLm>< map No 3mm> m>HuueuOEou .mN mHOON 74 to 8 p.m. time period than does the USA Network, viewers tend to watch the USA Network for a longer length of time, that is an average Of nine minutes more than ESPN. Although CNN also attracts a large audience, viewers tend to watch this cable service for shorter lengths of time. Particularly, within the peak viewing time period of CNN, between 6 p.m. and 8 p.m., when viewers watch an average Of 27 minutes. This explains why although CNN is used by a great many different people compared to most other advertiser supported cable services, there are fewer adults per minute watching. Correlational Analysis The Pearson Product Moment Correlation Coefficient was used to determine whether any relationships exist between viewing of particular channels and audience characteristics. Demographic data such as sex of the respondent, marital status, education level, age, income, number of members in the household, number of working members in the household, and teenaged children in the household were correlated with total viewing time for all viewers across the seven day week, Of the advertiser supported services and local origination channels. A .05 level Of significance was used. The analysis exhibited no strong correlations, but some variables were found to be significantly correlated. This implies that although there were statistically significant correlations between viewing of the cable services, and the demographic makeup Of the audience, the results should not be used in projecting specific demographic profiles, to predict the type Of viewer for the various cable services. 75 Separate correlational analysis was performed for the five cable services, MTV, CNN Headline News, the Weather Channel, and the Nashville Network, available on the Sat-Pac tier (available to 5l% of the subscri- bers surveyed) and the eight remaining cable services, available to the total sample. Table 24 illustrates the results Of the Sat-Pac cable channels. CNN Headline News, Lifetime, MTV and the Weather Channel are significantly correlated to some demographic variables. For CNN Headline News and Lifetime, viewers tend to live in households where there are a greater number Of employed persons living within the household. Viewers of CNN Headline News also tend to be older and earn higher incomes while those who watch Lifetime tend to be women who are married. Those adults who watch the Weather Channel appear to be older and married while viewers of MTV tend to be young. Table 25 provides the results of the correlational analysis conducted for the eight other cable services on the basic cable tier, amongst all cable subscribers. Viewing Of ESPN, the Satellite Program Network and Channel 8, was not significantly correlated with any of the demographic data. This is particularly interesting since ESPN is one Of the most widely viewed, and highly specialized, cable services in this cable system. The only demographic variable not significantly correlated with any Of the cable services is the number of people living in the house- hold. The only significant result for the Christian Broadcast Network, implies that viewers are more likely to be Older. The audience of the USA Network ismore likely to be young, of lower income households and tend not to have teenaged children living in the household. CNN viewers 76 OOOOOHHHOOHO No HO>OHte Hcmruwmmmou coHuOHmHHoua NOO. ONO. OHO. NO NO NOHH. N2 NO NO ONOO. OOOH. OOHHOHHO N2 NO NO N2 N2 N2 N2 OOOOHOz Oz OHHH>OOOO OOH HOO. ONO. NO NO N2 N2 OHNH. Oz HOOO. Oz HOOOOOO OOOHOOO OOH ONO. HOO. NOO. Oz HNOO. ONHN. Oz OONH. NO NO , Oz Ozpz OOHHOOOO OOO Hoe. «* N2 NO NO NZ OOOH.-. N2 N2 O: OH: uHOOmOOoz OH uHOOONOo: uHoOOOOoz OEOOOH OOHxHoz OHOOOO :H OHOOOO OO< coHHOOOuO OOHOHO xmm OOH>HOO OHOOO :H NOOOH No Hogan: Ho HOOEOz HOHHHOz OOHOOOHOoEOO LHOOH OOO OOHH OOO1HON OOH OOHOOOHOOsOO co OOOH>HOO OHOOO OOH Ho OHO3OH> Ho OHONHOO< HOOOHHOHOHHOO .ON OHOOH 77 OOOOOHHHOOHO No HO>O._I HOOHOHHHOOO OOHHOHOHHOOa OOO. OHO. HOOO.1 Oz Oz m2 m2 OOOO. mz mz OH HOOOOOO m2 m2 O2 O2 m2 m2 Oz Oz O HOOOOOO NNO. OOO. OHO. NOOO.- NZ OOOO. NZ HOOO. NZ NZ NZ ZZO Oz mz m2 m2 m2 Oz O2 O2 zOm NNO. NNO. OOO. ONOO. NZ OOOO. NZ NZ NZ OZ NNOO.1 ZZO OHO. ONO. HOO. HONO. OOOO.- OZ NZ ONHH.- NZ OZ OZ ONO Oz Oz Oz Oz mz Oz Oz Oz zOmO omo.«* Oz Oz Oz Oz OOOO.« m2 m2 m2 zOO uHoOOOOo: OEOOOH uHOOOOOo: OH uHOOOOOo: OH OOO OOHHOOOuO OOHOHO xOm OOH>HOO OHOOO OH OOOON OOHxHoz OHOOOO OHOOOO Ho HOHHHOz Ho HOOEOz HOOEOz OOHOOOHOOEOO OOHHOHHOHOOOOOO OHOamgoosOO HHOOH uOO OOOH>HOO OHOOO OHOOO OOH Ho .OHHOu< Ho OOHzmH> HOHOH Ho OHONHOO< HOOOHHOHOHHOO .ON OHOOH 78 tend to be male, living in households with a greater number of employed people, but no teenaged children. The Financial News Network attracts Older viewers, with a greater number Of working people living in the household. Similarly viewers Of Channel 15, tend to live in households without teenaged children but are more likely to be better educated. A similar type Of analysis was conducted to determine if there is any correlation between viewing Of the various cable services. Again although there are no strong correlational effects, there are some statistically significant results. For this analysis, viewing of the five cable services on the Sat-Pac tier, were correlated with each other, while a separate correlational analysis was conducted for the eight channels on the basic only service. Table 26 illustrates the findings for the Sat-Pac services and its viewers. All five cable services on this extended basic tier are correlated with at least three Of the Sat-Pac services. This implies that subscribers Of this tier are likely to watch the cable channels available on the Sat-Pac tier. In fact all the Sat-Pac services are correlated to each other except for the Nashville Network and MTV, which are not. Table 27 provides the results of the eight cable services on the basic cable tier, for all subscribers. Viewers of CNN and the Satellite Program Network are more likely to watch the greatest number of other cable services. Viewers of CNN, one of the highest rated cable services, are more likely to watch CBN, the USA Network, SPN, the Financial News Network, Channel 8 and Channel 15. Viewers of the USA Network, also a highly rated cable service, also tend to watch CNN, 79 OOOOOHHHOOHO Ho HO>OHOO HOOHOHHHOOO OoHHOHOHHOOt ONO. HOO. HOO. NHO. 11 OOOO. OOOO. OOOH. NNNO. OEHHOHHO ONO. OOO. HHO. Oz xgozHOz OOOO. 11 OOOO. OONO. OHHH>OmOz OOH HOO. OOO. HOO. HOO. HOOOOOO OOOO. OOOO. 11 OOOO. NNmN. HOOHOOz OOH HOO. HHO. HOO. OOO. OOOOz OOOH. OONO. OOOO. 11 ONOO. OOHHuOO: zzu NHO. Hoe. wmo.«« NNNO. Oz NNmN. ONOO.e 11 >Nz OEHHOHHO xHozHOz HOOOOOO OzOz >Hz OOOH>HOO OHOOO OHHH>OOOZ OOH OOOHOOO OOH OOHHOOOO ZZO OOOH>HOO OOOOH Ho OHOzOH> HHOu< OOOs< OHOOOOOO OHOOO OOO1HOO OOH HO OEHH OOHzOH> HOHOH OOH Oo OHONHOO< HOOOHHOHOHHOO .ON OHOOH 80 OOOOOHHHOOHO No HO>OOOO HOOHOIHOOOHOOOHHOHOHOOHt HOO. HOO. HOO. NNO. NZ NOOH. NZ OOON. ONON. NZ NZ ANNOO. NH HOOOOOO NHO. NOO. NOeH. NZ NZ ONOO. NZ NZ NZ HNOO. O HOOOOOO HOO. NZ NZ NZ NZ NZ NZ NZ NOHH. ZZO HOO. NHO. HOO. OOO. NOO. NNO. OOON. OOOO. NZ - ONNH. HOOO. HONO. NOOO. ZON NNO. NOO. HOO. NNO. NOO. OOO. NNOO. HNOO. NOOH. NOOO. ONNO. NZ NOOO. -1 ZZO HOO. HOO. NOO. HOO. NOO. ONON. NZ NZ ONNH. - NNNO. ONOH. OONO. ONO . . NNO. HHO NOO 1- . NNNO. NZ NZ NZ NNNO. HONO NZ ZONO OOOOOOZ . NOO. HOO. NNO. OOO.14 ONOOOOOON NZ NZ NZ HONO. ONOH. HONO. 11 NONO.1 OOHONHOOO NH HOOOOOO O HOOOOOO ZZO ZON ONO ZONO ZOO ZZO OOH>OON OHOOO OOH>HOO OHOOO NNHOOHHONOOO NHOO OHNOO uOO NHOOHHONOOO HOHH ONO-HON OOHuOHOOHV NOOH>HOO ONOOH Ho NHOzOH> OHOOO HHO OOOOO NHOOOOOO OHOOO OHNOO OOH Ho OOHH OOHOOHZ HOOOH OOH HO NHNNHOOO HOOOHOOHOOOOO .NN OHOOH 81 the Weather Channel, the Nashville Network, the Christian Broadcast Network, ESPN and the Satellite Program Network. Although ESPN and CNN attract the greatest audience among the advertiser supported services in this cable system, viewing of these two channels is not significantly correlated. However as previously stated, the USA Network is significantly correlated with viewing of both ESPN and CNN. It is also interesting to note that viewers of one local origination channel are more likely to watch the other local origination channel. Chi-Square Analysis Chi-square analysis was conducted to determine whether there is any significant difference between viewers and nonviewers of the various cable services surveyed. Using a .05 level of significance, this analysis compared viewers and nonviewers on such demographic variables as marital status, educational level, age, income, sex, and teenaged children living in the household. Separate Chi-square analysis was performed for the Sat-Pac channels and the basic only cable channels. The results Of the analysis Of Sat-Pac subscribers indicate some significant differences between viewers and nonviewers on all five cable services on this tier. Table 28 provides these findings. The data reveal that a larger proportion Of viewers than nonviewers of MTV, are single, although 68 percent of viewers of this service are married. Viewers of CNN Headline News are predominately male (63%) and have higher incomes than nonviewers, with 53 percent Of viewers having incomes of at least $45,00l. Viewers of the Weather Channel and the Nashville Network differ from nonviewers of these services in that they are older. In contrast, viewers Of the Lifetime channel tend to be younger than nonviewers. 82 Table 28. Chi-Square Analysis for Sat-Pac Services - Significant Differences in Demographic Characteristics Between Viewers and Nonviewers MTV Martial Status Not Married 'Married Row Total Viewers 34 74 108 Nonviewers 73 298 371 x2 = 6.05, 1 df, p <.05 ‘ Ase ;§;g§ g§;§g_ §§:3g_ §9:_ Row Total Viewers 27 38 32 11 108 Nonviewers 42 73 175 79 369 x2 = 30.90, 3 df, p <.05 CNN Headline News 1mg. 0- 25,001- 35,001- 45,001- $2§AQQQ_ 35,000 ‘45,000 55,000 55,000+ ‘Total Viewers IO 20 18 21 33 102 Nonviewers 65 53 46 35 75 274 x2 = 10.94, 4 df, p <.05 S95 M313 5311613 Row Total Viewers 79 46 125 Nonviewers 174 166 340 x2 = 4.85, 1 df, p .05 83 Table 28. (continued) The Weather Channel '39: 1§;g§_ g§:§5_ §§;gg_ 59:, ‘Row Total Viewers 10 3O 57 33 130 Nonviewers 58 80 150 57 345 x2 = 9.4, 3 df, p< .05 Lifetime Agp_ ;§;g§_ g§;§g_ §§352_ 50+ ‘Row Total Viewers 5 16 3 3 4O Nonviewers 63 95 189 84 431 x2 = 8.09, 3 df, p‘<.05 The Nashville Network flpg_ 18:33_ §§;gp_ pp: Row Total Viewers 6 22 8 36 Nonviewers 173 185 78 436 x2 = 7.53, 2 df, p <.05 84 The Chi-square analysis of the basic cable services (See Table 29) reveal a statistically significantdifference between viewers and non- viewers on only three of the basic cable services; ESPN, the USA Network and CNN. A greater proportion of viewers than nonviewers of ESPN are younger and a larger proportion Of viewers than nonviewers are male (71%). Similarly, viewers of the USA Network are predominately younger than nonviewers. However, nonviewers of the USA Network tend to have a greater proportion of teenaged children living in the household than do viewers. Finally, 68 percent Of CNN viewers are male while only 52 percent Of nonviewers are male. Chi-square analysis was also performed to determine whether there is any statistical difference in the demographic makeup Of the basic cable subscribers and those who subscribe to the extended basic service. The results in Table 30, indicate a significant difference in the age, and the number of workers living in the household. That is, a larger proportion of Sat-Pac subscribers are between 18 and 25, and 50 and over, than basic only subscribers. Also, subscribers to the Sat-Pac tier tend to have a larger proportion of working peOple living in the household than do basic subscribers. Otherwise it appears that the basic and extended basic subscribers are quite similar in their demo- graphic makeup. Audience Demographic Characteristics The demographic data Obtained for the Omnicom éable subscribers compared to the total market demographics, reflect the national profile of cable subscribers. That is, they are younger, better educated, have higher income levels and larger households than the community as a whole. The demographic characteristics are found in Table 31 and are 85 Table 29. Basic Cable Services - Significant Differences in Demographic Characteristics Between Viewers and Nonviewers ESPN Apg_ 1§;2§_ 2§:§5_ §§:gg_ §Q:_ Row Total Viewers 30 59 100 24 213 Nonviewers 83 184 313 140 720 x2 = 7.87, 3 df, p <.05 Sp}. flplp_ EEEElE. Row Total Viewers 144 58 202 Nonviewers 360 338 698 x2 = 23.9, 1 df, p <.05 USA Teengged Children Living in the Household Yp§_ Np_ Row Total Viewers 22 110 132 Nonviewers 207 501 708 x2 = 8.24, 1 df, p.< 05 599 ;§:g§_ '2§;§§_ §§;gg_ p91, Row Total Viewers 20 61 56 11 148 Nonviewers 92 183 355 151 781 x2 = 27.03, 3 df, p <.05 86 Table 29. (continued) CNN SO Male Female ‘ Row Total Viewers 136 63 199 Nonviewers 364 333 697 x2 = 15.66, 1 df, p <.05 87 Table 30. Significant Differences of Demographic Characteristics Between Sat-Pac Subscribers and Basic Only Subscribers 492 Row 18-25 26-34 35-49 50-65 §§:_ Total Sat-Pac Subscribers 71 111 209 78 15 484 Basic Only Subscribers 45 138 208 65 8 464 x2 = 11.65, 4 df, p <.05 Number of Workers in the Household Qpp_ Ipp_ Three or More Row Total Sat-Pac Subscribers .228 162 69 459 Basic Only Subscribers 256 150 32 438 x2 = 15.15, 2 df, p <.05 88 presented separately for Sat-Pac subscribers and basic only subscribers. The proportion of men and women interviewed for both tiers is approximately equal and consistent with census data. The census data for this region indicate that 54 percent of those over 18 years of age are male (See Chapter 2, Table 5). Of Sat-Pac subscribers inter- viewed, 43 percent are between the age of 35 and 49, while 45 percent of basic subscribers fall within that age category. A larger proportion of cable subscribers fall within the 24 to 49 age category than the region in general (66% Of Sat-Pac subscribers and 75% of basic sub— scribers are between the age of 26 and 49) where only 44 percent of the total population is between 25 and 54. Only a very small proportion of respondents are over the age of 65. The data also indicate that the subscribers of this cable system are well educated. At least 76 percent of both Sat-Pac and basic only subscribers are high school graduates with 54 percent Obtaining some college education. The data reveal that Sat-Pac subscribers have a higher average income than basic only subscribers. That is, the average income of Sat-Pac subscribers lies between $35,001 and $45,000, whereas the average income Of basic subscribers is between $25,001 and $35,000. This, compared to the average income Of the population of the region which is $32,782. In addition at least 75 percent Of respondents reported an income of at least $25,00l. The type Of jobs held by respondents who reported their occupation, are predominately white collar with a greater proportion of basic subscribers being professionals (doctors, lawyers, engineers, etc). Only two percent of Sat-Pac subscribers and one percent of basic 89 Table 31. Demographic Characteristics of Adult Cable Subscribers Sat-Pac Subscribers Basic Only;Subscribers Frequency Percentage Frequency Percentage SEX Male’ 253 54 255 57 Female g;§_ 46 122 43 N = 466 447 AGE 18-25 71 15 45 10 26-34 111 23 138 30 35-49 209 43 208 45 50-65 78 16 65 14 65+ _1§_ 3 __31 2 N = 484 464 EDUCATIONAL LEVEL Some High School or Less 29 6 22 5 High School Graduate 120 25 101 22 Some College/Technical 136 28 112 24 5C“°°' 124 26 141 30 College Graduate 74 15 _§§, 19 Graduate Training N = 483 464 INCOME LEVEL $15,000 or less 45 12 47 13 $15,00l-$25,000 33 9 42 12 $25,00l-$35,000 74 19 82 22 $35,001-$45,000 64 17 60 17 $45,00l-$55,000 56 15 59 16 $55,001+ 11; 29 _jfi; 20 N = 383 362 (continued) 90 Table 31. (continued) Sat-Pac Subscribers Basic Only Subscribers Frequency Percentage Frequency Percentage OCCUPATION Professional 76 18 94 23 Management 70 16 73 18 Blue Collar 74 17 59 15 Homemaker 63 15 63 16 Sales 42 IO 36 9 Clerical 24 5 23 6 Heath Care 22 5 21 5 Retired 25 6 14 3 Student 18 4 14 3 Unemployed 9 2 1 Artist 4 1 1 Civil Servant _§_ 1 ___ .5 N = 432 406 NUMBER OF PEOPLE WORKING/HOUSEHOLD One 228 49 256 58 Two 162 35 150 38 Three 69 15 32 7 Four -- -- 4 Five __J[ 2 __3. 1 N = 466 445 MARTIAL STATUS Single/Divorced/Widowed 109 22 83 18 Married ' 31g. 78 '311. 82 N = 487 460 (continued) 91 Table 31. (continued) Sat-Pac Subscribers 'Basic Only Subscribers Frequency Percentage Frequency Percentage NUMBER OF MEMBERS/ HOUSEHOLD One 26 5 28 6 Two 101 21 87 19 Three 109 23 100 22 Four 141 29 162 35 Five 107. 22 83 18 N = 484 460 92 subscribers reported being unemployed. In addition, 52 percent of Sat-Pac subscribers and 47 percent of basic subscribers have at least two members of the household who are employed. The cable households in this region seem to include predominately families with both Sat-Pac subscribers and basic subscribers having a mean Of 3.4 peOple per household. Most of these surveyed are are married (78% of Sat-Pac subscribers and 82% Of basic subscribers) and for both types of subscribers, 75 percent have at least three or more people living in the household, and over 50 percent of subscribers have at least four people living in the household. Teen Data Ratings and audience estimates for the teen respondents were calculated separately from the adult data. For this study a teen respondent was between the age of 12 and 17, and a member of a subscrib- ing household, where an adult had previously responded to the adult questionnaire. Data from the 1980 census was used, to estimate the number of teenagers per household and the total number of teens in cable house- 3 Applying holds. Census data revealed .32 teenagers per household. this figure to the total number Of Omnicom subscriber households in the five areas of interest, gives a total of 3,992 teenagers living in cable households. This however assumes an equal proportion Of teenagers in cable and noncable households. The ratings were calculated .by adding together the total number of teens who said they viewed a channel, for each of the seven days, and dividing by the total sample 93 size, in this case, 166. Audience estimates give the total number of teens among cable households that viewed a channel at least once during the seven day week. Table 32 provides the ratings and audience estimates for the 13 cable services surveyed, for the seven day week. MTV attracted the largest audience with 1,557 teenaged viewers, followed by ESPN with 1,317 viewers and the USA Network, with an audience of 1,277 teens. The Financial News Network, Channel 8 and Channel 15 are the least viewed cable services by teenagers in this cable system. However as with adults, teens watched more of the special programming on the local origination channels, than the regular programming. Twenty-five percent of teen respondents watched the Plymouth Fall Festival with 82 percent Of the viewers watching on one day only, while 11 percent watched election night coverage Of the Presidential Campaign for an average of 40 minutes. Only two percent Of teen respondents watched the Canton 150 Fund Auction and those, only on one of the two days Of coverage. Table 33 provides the average number of teenagers viewing per minute, per day, for the seven day week, broken down for the various dayparts. A similar formula was used to derive the number of teen viewers per minute, per daypart as was done for adults. However in this case a factor of 24 was used to project to the total number Of teens in the cable system.4 That is: Avera e number of average number of teen X ‘ vieweg in Period A X 24 zippers peg gay 1" total number Omeinutes per1o in time period A 94 Table 32. Ratings and Number Of Teens Viewing Each Programming Service at Least Once During the Seven Day Week Cable Service Rating (as a percentage) Audience Size *MTV 39 1,557 ESPN 33 1,317 USA 32 1,277 CNN 11 439 *The Weather Channel 11 439 SPN 10 399 *CNN Headline News . 10 399 *The Nashville Network 4 160 *Lifetime 3 120 CBN 3 120 FNN 2 80 Channel 8 2 80 Channel 15 2 80 *These cable services are on the Sat-Pac Tier 95 1||hHLunhOOzithHEEwOOOHO OOHHO NHOO NOOH>HON OHOOO ONOmH.OOH HOHH Own-HOO OOH Oo ONO NOOO>HON OHOOO ONOONe H CO ON ON H NO 11 1- NH HOOOOOOOO - -- O HOOOOOO11 1- - ZZO11 - H ZON H H ZZO N H OOOOOOZ ONO OOH O - ZONO H -- ZOO -- 11 OOHOOOHO1 -1 H OeOzHOZ OHHH>ONOZ OOHO .- H HOOOOOO OOOHOOO OOHO 11 H szz OOHHuOO: zzuu O m >Nza .O.O HH OOHHO .O.O HH-.O.O O .E.O O1.E.O O HOOONOO .E.Q ©1.E.n m .E.O O1Oooz Oooz NH 1.5.O O OOH>HOO OHOOO OOO3 OOO_OO>OO OOH HON .NOO LOO .HHOOOOO LOO .OHOOHz LOO NHO3OH> uOOOOOOH Ho LOOEOz OOOOO>< .mm OHOOH 96 As with adults, teen viewing Of most of the cable services studied, is relatively flat throughout the day, peaking either between 3 p.m. and 6 p.m. or between 6 p.m. and 8 p.m. Only for three cable services, MTV, ESPN and the USA Network, is there any substantial fluctuation between the number of viewers per minute, in the peak time periods and the rest of the day. The greatest number of teenagers per minute, are watching MTV, during the 3 p.m. to 6 p.m. time period. Viewing of this cable service is also high from 6 p.m. to 8 p.m. The USA Network also attracts a large audience during the 6 p.m. to 8 p.m. daypart, as does ESPN. Except for viewing Of ESPN and the USA Network between 3 p.m. and 65p.m., when there is a substantial audience, the other cable services attract a fairly small number of teens per minute during the various dayparts. Table 34 illustrates the average amount of time spent watching the different cable services for the seven day week, across the total sample, including viewers and nonviewers. Table 35 provides similar information, but for viewers Of the channel only. In both instances the data reflect similar trends. MTV is viewed for the greatest amount Of time, followed by the USA Network and ESPN. In effect, not only does MTV attract the largest audience, among all the cable services, but viewers also spend the most time watching this cable service (an average of 67.4 minutes). 97 Table 34. Average Number of Minutes Spent Watching Each Channel Across the Seven Day Week for All Teen Subscribers, both Viewers and Nonviewers Cable Service Average Minutes Viewed **Range Of Minutes Viewed *MTV , 26.4 19 to 33.7 USA 15 10.4 to 19.6 ESPN 14.5 10.4 to 18.6 SPN 2.7 1.2 to 4.3 CNN 2.6 1.2 to .0 *CNN Headline News 2 1 .8 to 3.3 *The Weather Channel 1.9 .8 to 3.2 *The Nashville Network .8 O to 1.6 Channel 8 .72 O to 1.5 Channel 15 .57 O to 1.2 CBN ‘ .48 O to 1.0 *Lifetime .45 O to .9 FNN .2 0 to '.47 *These cable services are on the Sat-ch Tier . . ' **at a 95 percent confidence interval (x - standard dev1at10n (l.96)) 98 Table 35. Average Number of Minutes Spent Watching Each Channel Across the Seven Day Week for Teen Viewers Only Cable Service Average Minutes Viewed **Range of Minutes Viewed *MTV 67.4 53.4 to 81.4 USA 46.9 36.8 to 57.1 ESPN 43.8 35.8 to 51.8 SPN 26.7 16.7 to 36.8 Channel 8 24 O to 48.9 Channel 15 23.7 3.8 to 43.6 CNN 22.6 14.2 to 31 *The Nashville Network 21.7 0 to 43.6 *CNN Headline News 20.3 12.5 to 28.1 CBN 20 .5 to 39.5 *The Weather Channel 17.4 9.6 to 25.1 *Lifetime 15 3.4 to 26.6 FNN . .11.7 0 to 26 *These services are on the Sat-Pac Tier + . **at a 95 percent confidence interval (x - standard deviation (l.96)) 99 Table 36 gives a comparative analysis of the average minutes viewed per daypart among viewers across the seven day week for all the cable services surveyed. During the peak viewing hours Of MTV, between 3 p.m. and 6 p.m., viewers are spending an average of 58 minutes watching MTV, the most amount of time spent watching this service across the total day. Viewers of the USA Network, spend the greatest amount of time watching this service (53 minutes) when its audience is highest, between 6 p.m. and 8 p.m. This, unlike ESPN, for which viewing during its peak hours, also from 6 p.m. to 8 p.m. is an average of 8 minutes less, than during primetime, when there is a smaller audience. COrrelational Analysis Correlational analysis was conducted using total viewing time across the sample for the seven day week for all of the cable services surveyed. This was done to determine viewing of the various cable services by teen respondents. Separate correlational analysis was performed for the five cable services available on the Sat-Pac tier, and the eight cable services carried on the basic only tier. As with the adult analysis, a .05 level Of significance was used. The results of this analysis show no strong correlations between viewing of the various channels, however there are some statistically significant results. Viewers of the Sat-Pac tier (See Table 37) tend to watch at least three other services available on the Sat-Pac tier, however viewing of the Nashville Network, is not significantly correlated to any other service. Viewers of the basic cable services are more likely to watch at most two other basic cable services (See Table 38). This appears to suggest that teen viewers watch only a limited 100 NOuHLN OH NOuOOz OOHEEOLOOHO LONHO NOOH>LON ONOOHz LOHH OOO1HOO OOH OO OLO NOOH>LON ONOOHO - -- N - -- OHH - - -- - 1- O OO .OOMOHQ - NH 11 - ON NN NN - N - N NH NO “.OOOHW ON NH N.NN OH NN NN OO 1-- NH ON ON NN OO -Hunm w NN N.NN NN NH OH NN OO OH OH OH ON NH ON -Hfinm m - -- NH -- NH NO N.NN ON - - N NH NN .OOMOM -- -1 OH - OH NN ON - - NH OH NH HO mOuZONw NH O ZON ZZOO ZZO ONO. ZONO ZOO OOHOOHHO1 OLOzOOZ HOOOOOO NOOZ HHO OOLOONOO NHOOOOOO1O . 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OZ 111 OZ Oz LOO OHOOO NOOH>LOO OHOOO NHOO OHNOO OOH HO OOH3OH> OOON HO NHNNHOO< HOOOHHOHOLLOO .OO OHOOH 103 number of the cable services available. Unlike the adult respondents; whose viewing of the USA Network and ESPN are correlated, no such correlation exists for teen viewers. As well unlike the adult members of the cable system, viewing of the two local origination channels are not significantly correlated. 104 NOTES -- CHAPTER 5 1This figure was obtained by dividing the total number of adults 18+, in the region, by the total number of households in the region. 2The figure of 25.7 was derived by using the following formula: Total Number of Adults in Cable Households = 25 827 Total Number ofTAdfiTts in the Sample -§fi7-- 3Census data on the number of teenagers was only available for Plymouth Township, Northville Township and Canton Township. Therefore the figure of .32 teens per household is also assumed to be true for the City of Plymouth and the City of Northville (See Table 5 of Chapter 3). 4The figure of 24 was derived by using the following formula: Total Number of Teens in Cable Households = 3,992 Total Number of Teens in the Sample 166 CHAPTER 6 DEVELOPMENT OF ADVERTISING RATE CARD AND CONCLUSION Introduction The question still remains, should the Omnicom cable system sell advertising time on the advertiser supported cable services? The decision should inevitably be based on whether or not a profit can be achieved from the sale of local availabilities. This in turn is dependent on the competition from other media, the advertising rate structure of the cable advertising, the costs incurred in the sales process, and the willingness of businesses to advertise on cable television. The Environment of the Omnicom Cable System In examining the census data of the population of the five regions of interest, it appears that in general, the area consists of an upscale papulation with discretionary income. This in itself, should appeal to businesses within the community and the surrounding areas. As the analysis of the available advertising media indicate, there are few local vehicles in which to advertise. The high school radio station cannot be considered a viable advertising medium as it accepts only a minimum of underwriting, ileaving the local newspapers, which are published only on a weekly or bi-weekly basis. 105 106 The Detroit based media have two detrimental characteristics which make them unsuitable for use in reaching the area of the Omnicom cable system. They are the cost of placing ads, and the waste incurred in trying to reach this market. As illustrated, the costs of advertising on broadcast television are high and may prevent many businesses from using this medium. Further- more, in order to reachtfie desired target group, an advertiser would need to purchase several television spots, thereby increasing the total cost. Otherwise, the ad campaign will most likely prove ineffective. An advantage in using radio is that it is possible to target to a specific market by selecting a radio station that appeals to that group. This is possible with the Detroit based radio stations because of the variety of stations available. However, if the target group is not accessible through the use of one station, the costs of advertising increase substantially. The two Detroit daily newspapers provide an advertising medium at a lower cost than broadcast television. However unlike the ratings of broadcast television or radio, it can be argued that newspaper* circulation figures do not really give a clear indication of the reach of a newsprint ad. With all the Detroit based media, advertisers are reaching a large geographic region including the metro Detroit market and beyond. Although this may prove advantageous to some businesses, they may not be reaching the residents of the Omnicom area, or may want to reach only that region. In contrast, advertising on the Omnicom cable system would provide a geographically and demographically selective market, at an affordable price. 107 ConcluSions frOm the Survey The results of the survey reveal some interesting information. From this analysis, a decision can be made on which cable services should be used to sell local availabilities, and, in conjunction with the available data regarding the competitive environment, at what prices. The study has revealed that the most popular of the advertiser supported cable services, which attract the most adults per minute, are ESPN, the USA Network and CNN. In contrast with most of the other advertiser supported services, these attract a high number of adults per minute in almost every daypart. MTV also has a large audience per minute, particularly once teenaged viewers are accounted for. Finally CNN Headline News attracts a great deal of adults per minute during at least three of the six dayparts. The data suggest that across the seven days, the peak viewing is occurring between 6 p.m. and 8 p.m., particularly amongst adults. This is when the broadcast networks usually air the local news and national news from 6 p.m. to 7 p.m. and then run syndicated game shows or reruns of old network shows during the primetime access period. This is also the time when many advertisers will attempt to appeal to the local markets. However, for Omnicom cable subscribers, much of the viewing is to the advertiser supported cable programming services. Therefore, to ensure that their message is being received, advertisers who use the broadcast media should also include cable television in their advertising mix. The results also indicate that the viewing patterns of adults for some cable services particularly the viewing of ESPN, 108 differs on the weekend. That is, there is a large audience from Noon to 6 p.m. on Saturday and Sunday for ESPN. The correlational analysis provides some information concerning the type of cable advertising mix to use. For instance, because adult viewers of the USA Network are more likely to also watch ESPN and CNN, an advertiser may want to buy local availabilities on the USA Network alone, thereby reaching some subscribers who would also watch ESPN or CNN. This, rather than buying spots on all three cable services. On the other hand, because viewing of CNN and ESPN are not significantly correlated, buying local availabilities on either of these services would also require purchasing time on the other cable service, if both groups of subscribers are the desired target. Similarly teen viewing of ESPN, CNN and the USA Network are not significantly correlated to each other therefore a mix of availabilities on all three cable channels may be required to reach the teen market. The average amount of time spent watching the cable services, during the various dayparts, also give an indication as to what type of advertising mix to use. That is, the less time spent watching a cable service, the less likely the subscriber will be exposed to an advertisement, and the greater the need to run the ads with more fre- quency. For example, from 6 p.m. to 8 p.m., adult viewers will watch the USA Network an average of 57 minutes while subscribers spend an average of only 25 minutes watching CNN Headline News during this same time period. As such, an advertiser would need to run a greater number of spots on CNN Headline News than on the USA Network, to reach the same number of people. This should also be taken into consideraton in designing an ad mix for reaching the teen market. For instance, 109 during peak viewing of MTV, between 3 p.m. and 6 p.m. teens watch an average of 58 minutes while viewing of CNN during its peak, between 6 p.m. and 8 p.m. is only 27 minutes. The Chi-square analysis provides detailed information concerning the demographic difference between viewers and nonviewers of the various advertiSer supported services. This information can be used by advertisers to target their ads more precisely to the type of peOple they want to reach. For instance an advertiser whose product appeals to men, has a greater chance of reaching them if they advertise on ESPN, CNN, or CNN Headline News, where more viewers are male than female, and where this signficantly differs from the proportion of male and female nonviewers. However, on the most widely viewed advertiser supported cable channels, there are few other statistically significant differences between viewers and nonviewers. In addition the Chi-square analysis revealed a statistically significant difference between Sat-Pac subscribers and basic only subscribers on two variables; age and the number of employed persons living in the household. This suggests then that the Omnicom cable subscribers are a fairly homogeneous population, as is supported by the results of the demographic analysis. The demographic characteristics of the Omnicom subscribers confirm that they are a particularly attractive market. Sixty-six percent of Sat-Pac subscribers and 75 percent of basic subscribers fall within the 26 to 49 age group; a consumer group with a large proportion of purchasing power. Since the Omnicom subscribers are predominately married and live in larger households, their needs must also be greater, and with a high level of income, means increased spending ability. 110 Goals of a Rate Card When designing a rate structure for the sale of cable advertising, several goals should be considered during the planning stages. The rate card should: - be easy to understand by both the sales staff and the clients - encourage a commitment on the part of the buyer to a minimum number of spots A complex rate card will not only confuse the client but will also make the sales effort a more difficult task for the salespeople. Since businesses will be introduced to cable television advertising for the first time, and for most businesses, this will be the first exposure to television advertising, the rate card should be as simple as possible. A minimum number of buys should be required for several reasons. An ineffective ad campaign will result from the purchase of a select few spots, thereby discouraging the client from further advertising on cable television. In order for the advertiser to have a successful ad campaign and create an impact on the audience, an advertiser must use a strategy of high frequency buys. The sales effort is also made easier since the need to resell the client is somewhat reduced. Finally a commitment on the part of the client assures a flow of advertising revenue into the company. ‘Pricing of the Rate Card On which of the advertising supported cable services should Omnicom sell local availabilities? In order for cable advertising to be a successful venture, the advertisers need to realize positive effects 111 from using this medium (e.g., increased sales or traffic). Rather then trying to asell the complete inventory of local availabilities from all the advertiser supported cable channels, Omnicom should try to sell availabilities on only those services which receive high viewership. In selling ads only on those cable services, Omnicom will minimize the logistic and administrative costs per advertising exposure. Those administrative costs are relatively high where audiences are small making the advertising on those channels impractical for the cable system and the advertiser. Furthermore, economies of scale will be realized by limiting the number of channels on which to sell advertising, to those which attract high viewership. Omnicom should concentrate their sales effort on the sale of local availabilities on ESPN, the USA Network, CNN, MTV and CNN Headline News. As the study indicates, these five services achieve the most viewers, 12+ per minute, throughout the day across the seven days, as they attract a large proportion of both adult and teen viewers (See Table 39). The actual advertising rates should be priced: - to be competitive with other advertising media - to represent a true value for the time in relation to the size of the audience The cost per thousand viewers 12+ for cable should be competitive with the cost per thousand of broadcast televison and the cost per thousand radio listeners. As Table 40 illustrates, the cost per thousand viewers 18+ of broadcast television during primetime is twice the cost per thousand listeners 18+, during AM drive time. This would appear reasonable in that television appeals to both the audio and visual senses whereas radio does not. However in using radio and particularly 112 Table 39. Average Number of Viewers 12+ Per Minute, Per Daypart, Per Day, Across the Seven Day Week Dayparts 6 a.m.- Noon- p.m.- 6 p.m.- 8 p.m.- After Cable Service 12 Noon 3 p.m. p.m 8 p.m. ll p.m. ll p.m. ESPN 9 44 67 120 86 19 USA 27 14 49 111 27 25 CNN 18 28 41 60 28 27 CNN Headline News 9 7 23 33 17 9 MTV 11 31 82 49 26 14 113 Table 40. Summary of Cost Per Thousand of Competing Media -- Television and Radio Network Television - 30-Second Spot '*CPM Viewers 18+ Primetime - Adults $7.16 52g19_- 60-Second Spot *CPM Listeners 18+ AM Drive $3.47 Daytime 2.79 PM Drive 3.97 Evening 4.49 *Cost Per Thousand 114 broadcast televison to deliver a message, a great deal of waste is occurring in terms of reaching a demographically and geographically select market. That is, for any one product or service, the desired target group that the advertiser is trying to reach, is really only a small fraction of the total broadcast audience. Conversely, it can be argued that cable television can deliver to the advertiser, the specific target market, without waste. This is because the geographic location and demographic makeup of the cable subscriber, is known. This is critical because these qualitative advantages must outweigh the high cost per thousand viewers of cable television for the advertiser. That is, it may cost an advertiser 20 to 30 times more, on a cost per thousand viewer basis, to advertise on cable television than on broadcast television. Therefore the effectiveness of the cable ad in reaching prospective buyers must be 20 to 30 times greater, than on broadcast television. In effect the cost per thousand for prospective buyers of the product or service, must be at least equal in all three media, or should favor cable (to give cable a competitive advantage). This implies that one type of advertiser for cable television, particularly in this region, would be a business selling high ticket items, or goods that appeal specifically to higher income groups. Advertisers of mass appeal products would have to expect a large volume of business from the cable audience. This is a good possibility if the right targets are chosen. The cost per thousand cable subscriber, should be competitive with the cost per thousand circulation of newspapers. This is because although the number of households reached by newspaper is known, the exposure 115 to the newsprint ad is never known. In this way the number of cable subscribers is similar to newspaper circulation estimates. In particular the cost per thousand of cable subscribers must be competitive with the cost per thousand circulation of the local newspapers, which range from $.50 to $1.24 (See Table 41). In addition, the cost per thousand subscriber should reflect the industry norms which run anywhere from a low $.13 per subscriber to as high as $4.76 per subscriber (See Table 15, Chapter 2). Advertising rates should also reflect similar cost per thousand viewers per minute, in all time periods. As such the price of an ad is adjusted to reflect the audience size. That is, prices during peak viewing will be higher than during time periods when there is a smaller audience. However, advertisers who buy a spot in a time period which attracts a smaller audience are still receiving the same value for their money as an advertiser who buys time during peak viewing. A rank ordering, according to the audience 12+, per minute, per daypart, for all the five selected cable services was performed. A five star rating, with five stars representing peak viewing and one star, representing the low end of the scale, was then applied to the rank order. The average number of viewers 12+ per minute was then calculated for each of the five categories, as is illustrated in Table 48. These represent the average audience size, 12+, during each of the five star periods and were then used in the calculation of the rates. Also provided is the average viewers 18+ per minute in each category and their respective cost per thousand, generated from the rates. These can be compared to the cost per thousand viewers 18+ for broadcast television and the cost per thousand listeners 18+ for radio. 116 Table 41. Summary of Cost Per Thousand of Competing Media - Newspaper Detroit Newspapers . *CPM Circulation SAU Inch/600 Lines The Detroit Free Press (Southwest Zone) $.44/ 5.23 The Detroit News (West Edition) .18/12.68 Local Newspapers Plymouth/Canton Observer $.50/14.34 Canton Eagle 1.24/36.04 Northville Record 1.22/35.27 Community Crier .57/16.59 *Cost Per Thousand 117 Table 42. Distribution of 5 Star Ranking Among the Selected Cable Channels Network Daypart §§3N_ 5*, 6 p.m. - 8 p.m. 8 p.m. - 11 p.m. 4* 3 p.m. ' 6 p.m.} Goes to 5 on the 3* Noon - 3 p.m. weekend 2* After ll p.m. 1* 6 a.m. - 12 Noon} Goes to 2 on the weekend USA. Eit' 6 p.m. - 8 p.m. 41k 3 p.m. - 6 p.m. 2* I 6 a.m. - 12 Noon} Goes to 4 on the 8 p.m. - 11 p.m. weekend After 11 p.m. 1* Noon - 3 p.m. CNN. 4ir 6 p.m. - 8 p.m. 3ir 3 p.m. - 6 p.m. 2* Noon - 3 p.m. 8 p.m. - ll p.m. After ll p.m. 1* 6 a.m. - 12 Noon CNN Headline News 3ir 6 p.m. - 8 p.m. 21k 3 p.m. - 6 p.m. 1* 6 a.m. - 12 Noon 12 Noon - 3 p.m. 8 p.m. - ll p.m. After ll p.m. (continued) 118 Table 42. (continued) Network Daypart m l“*' 3 p.m. - 6 p.m. 6 p.m. - 8 p.m. 3* 12 Noon - 3 p.m.} Goes to 4 on 2* 8 p.m. - 11 p.m. the "99km 1* 6 a.m. - 12 Noon After 11 p.m. 119 Omnicom should begin selling advertising using a single grid rate card. This is because, unlike viewing to broadcast television, which tends to decrease during the summer months when the networks are broadcasting reruns, viewing of cable television may not change at all.1 This will also ensure easy understanding of the advertising rates. However, during the holiday season, the increased competition for advertising time may make it necessary for Omnicom to develop a second grid card with inflated prices, reflecting the greater demand for spots. The distribution of the five star categories among the cable services selected can be found in Table 42. As earlier stated, one of the goals of the rate card is to encourage frequency buying through a requirement of a minimum purchase. This should be set at either 7 spots, one a day for a week, or 14 spots, 2 per day for a week. Bonus spots could be given free to advertisers to be placed in the same time period as the paid spots, for those adver- tisers who purchase a minimum of 9l spots over a 13-week period. Discount rates should be offered for early payment or payment can be collected at the time of the purchase to ensure proper payment. In House Commercial Production Should the Omnicom cable system decide to sell advertising, it should also use its existing studio facilities to produce commercials. The easy access to production facilities will aid in the advertising sales effort, since many of the businesses likely to purchase spots, may have never used television before as part of their advertising strategy. Selling the production of the commercial to businesses may also encourage repeat purchases of advertising after the initial buy, since the 120 investment for the commercial has already been made. Prices for commercial production vary from system to system, but range in price from about $100 to $500 for a 30-second ad. Some cable systems offer special production discounts in combination with the type of advertising buy. For instance U.S. Cable of Lake County which serves the northern Chicago suburbs, will offer to make a new commercial for free, or return to the advertiser the cost of the original ad, once $1,000 in commercial time has been bought. Warner Amex Cable, serving Hamton, Virginia, offers a free shooting of a commercial with a minimum 13-week or longer advertising contract. Whatever price Omnicom sets for the commercial production, they should initially just recover their costs and not try to make a profit from the production effort. With low production prices, advertisers will be more likely to take the initial step to test the results from cable advertising. Once the advertisers better understand the potential of cable as an advertising medium, and a regular clientele has been established, then production prices can be inflated somewhat to contri- bute to the revenue of the advertising department and share in recover- ing the capital expenditure. '0perating ExpenSes Estimates of the expenses will relate only to those expenses which are directly involved in the advertising sales effort. As such, the initial capital cost outlay for automatic insertion equipment will not be included in this analysis. However it is important to note the cost of the automatic insertion equipment, which is approximately 121 $70,000 for a four channel system, as this cost will need to be 211; recovered over a period of time thorugh advertising revenues. should also be noted that this one time capital outlay is a less expensive alternative in the long run, than the cost of manual insertion equipment and the salary expense for employees to monitor the system. The staffing requirements of the advertising sales department are minimal. One advertising sales manager is needed whose responsibilities would include the overall administrative duties of the department as well as sales. Working with this individual should be one additional sales person and a traffic manager. The prime responsibilities of the salesperson would be to generate clients and act as liason between the advertiser and the production department. The traffic manager would be responsible for the scheduling of commercials as well as the program- ming of the automatic insertion equipment and billing. The salary expense for the three staff members can be estimated at an average of $20,000 per year, per person, plus an additional $17,000 for an administrative secretary. As the need arises, additional staff can be hired. In addition to the salary expense of the sales representative and the sales manager, automobile expenses should be accounted for. This can be estimated at an average of $.22 per mile for approximately 10,000 miles giving a total autombile expense of $2,200 per person. Finally Omnicom needs toconsider promotional costs for the adver- tising department. This would include promotional literature about cable television advertising, as well as an advertising promotional kit designed specifically to detail the Omnicom cable system and its rate card. These costs can be estimated between $5,000 and $10,000 122 (a figure of $7,500 will be used). Operating Revenue and Operating Income Projectidns The total inventory of commercials from the five advertiser supported services, is 380, 30-second spots per day. The distribution of the availabilities according to the five star ranking is: Category Number of Availabilities 5* 28 4* 52 3* ~ 44 2* 108 1* 148 TOTAL 356 From examining the cable profiles of other systems selling advertising, it appears most systems are able to sell at least 15 to 20 percent of their local availabilities, with some systems selling 3 In estimating the revenue potential for the upwards of 50 percent. Omnicom advertising department, for the first year, sales of 20 percent of the total inventory, will be set as the maximum. Using the rate card (Table 43), revenue estimates from varying levels of sales have been calculated. These calculations assume that the availabilities during peak viewing will be the first to be sold. As Table 44 illustrates, Omnicom will begin to show a positive operating income when they sell five percent of their total inventory, or 19 spots per day. According to these figures, the potential exists 123 ncmmaocu emu 3.8s om.m me.” we.” ~o.~m -.~a mswnmgumnzm Zeus “N.NNNa mm.mm~m ou.o-m em.m~mm mo.memm +mH mgmzmr> mmmsw>< Zeus mm.wo~» mm.mo~m mm.wo~« mm.moma mm.momm +N~ mngmw> woosm>< Zeus om.~a N¢.mw Hm.nm o~.-m wo.~mm uoam we umou HH mm em mm mm emu +mH msmzmw>mwmuwu>< NH mm um Ho ooH Lug +NH mgmzmm>mwmmwu>< hi; .arm .arm .aru xvm mcwxcmm scum m any op mcwugouu< madam meeuebed>e< .me «_eee 124 eom.eww oov.e oom.n coo.nnm memceexm Peach emceexm gee emceexm pecewuesese emceexm agapem « me.vmm mm.mmm om.~mw oo.weo.H¢mm oo.oom.mwm oo.w¢m.m~¢m em.mmH.Hm Hutu” e oH ,o~.NHm 9 mm wo.mmm 9 mm on om oo.an.H~Nm oo.oom.wmm oo.nwo.omMm em.ommm c~.-m e NH mo.NNm e mN mm mH oo.m~H.mmHm oo.oom.mwm oo.m~o.mumm ¢~.m¢na o~.m~m 9 CH wo.~mm 9 mm mm OH nm.-m oo.mm~.eom oo.oom.mmw oo.mNH.mmHm mm.mH¢m mo.NNw ma m nfi.m» Zoo.eme.e~va Aegeewgemeem -¢.~HV Leevgemeem Lee eece>em Zumeev «peace Peace ee.eom.mwm memeeexe Peeoea Zusae memV oo.mne.eem H see> .e==e>em Peach «a.mnfim Zea Lee eace>em Peach mo.-» epem meeem we merge m Zea see epem mueem we geesaz N epem aseuce>=fi poem we uceecee H Lee> .mcewueenege eEeecH mcwuesmeo ece emceexu memuegeeo .e=:e>em mewueeeeo .we «Peek 125 for large profits once Omnicom sells more than five percent of their ad inventory. From these revenue projections, estimates of the revenue per sub- scriber can be calculated. As Table 44 indicates, the revenue per subscriber at sales of five percent, is $12.25. This is consistent with current industry norms, which dictate a range between $5.00 and $20.00, of revenue per subscriber. However in using these rates, the cost per thousand viewers 12+ is approximately 30 times greater than for broadcast television. This, even though the cost per thousand subscribers, at the different rates, is competitive with the local newspapers and approximates the cost per thousand subscribers of other cable systems. What would happen to operating income if the rates were reduced in order to reduce the cost per thousand viewers? Would advertising sales still be profitable? Table 45 illustrates rates for the five categories, which have been reduced by half. As such, the cost per thousand average viewers 12+, has also been reduced, making it approximately 15 times greater than the cost per thousand viewers 18+ of broadcast television. Using these rates, the cost per thousand subscriber, undercuts the cost per thousand circulation of some of the local newspapers. Table 46 provides revenue and operating income projections for the various levels of sales for the first year, using the rates from Table 45. In this instance Omnicom will show a positive operating income at salesof ten percent of their inventory or 38 spots per day. At this level of sales, the revenue per subscriber is $10.00, still within industry norms . 126 ecumeecu Lee “wees 3.3 -3 3.3 3.3 8.3 mgeetemeem :8... $.23 $.23 $.23 $.33 coé~3 +3 22$; 23.32 Zeus 2.33 2.33 2.33 2.33 2.33 +2 Page; wafei Eur 3.3 3.3 3.3 3.3 8.23 poem we «moo 22 mm em mm mm see +m2 msezew>ewmuwu>< N2 mm um Po oOH Lee +~2 msezew>ewmmwu>< h1.2 e1.~ p1.m .are L1.m edema edusedm .eewxeem seem m we» oe memeseeu< edema eeymveee>e< .me epeee 127 Amceemgemeam nu¢.~2v mm.efim me.efia em.e23 e2.e3 mm.N3 see2sume=m tea deedsem oo.~mo.eNH» oo.meH.Hmm oo.eo2.ee3 oo.wmm.mfiwv Zoo.mee.emv3 Zamoev eweeea Pabee oe.eom.wm3 oo.oem.ee3 oe.oea.mm3 ee.eea.wm3 oo.oom.em3 memedexw Page» stee memv oo.~mm.e2~3 oo.meo.em23 oo.eeo.emH3 oe.~em.eee oo.em~.~mm H see» .dsed>um Feed» ~o.memm -.mme3 Ne.~emw ee.mema mm.em3 Zen Eda deedsea _aeoe 3.8 E: 8.3 SN 38 ea 3.3 E: 3.23% 3.223 3.233 3.5 8.5 23 $25 ed 87:. es em mm m2 m sea sea ePem meeem ed seeEaz em m2 Q“ m N epom seducesefi poem co beeueea meuem eeezeem .2 Lee> .meewpeeneee eeeee2 mcwueseeo ece emceexm mewpegeeo .e=:e>em mempegeeo .me eFeeh 128 This illustrates the potential for profit from the sale of adver- on the Omnicom system even at the more conservative rates as given in Table 45. However, it appears that a high cost per thousand viewers for cable television, relative to broadcast television, is inevitable no matter what rates are charged. Therefore, it must be proven to advertisers, that the value obtained from cable advertising, justifies this cost differential. This will come about only once advertisers experience positive effects from using cable advertising, through increased business, resulting in greater profit margins. Otherwise, advertisers will keep their advertising budgets in traditional media. Conclusions This analysis concludes that Omnicom can make a profit from the sale of cable television advertising if it commits itself to the sales effort. This means training the sales staff to use the data from this research to emphasizeethe advantages of using cable television in this region. The sales staff should stress the demographic characteristics of the subscribers, the competitive value, and the advantages of using an audio-visual medium over other forms. Also using the data, the sales people can help develop an advertising strategy, emphasizing high frequency buys on specific cable services. In addition to selling local availabilities on the five cable services selected, Omnicom should also consider, either selling spots on the special community events which are cablecast on their local origination channels, or acquiring sponsors for these events. As evidenced by the data, these events attract a large audience and this will give the local businesses the opportunity to associate themselves 129 with the community. Finally, Omnicom should consider changing the tiering structure of their basic and extended basic cable services. The analysis concludes that both MTV and CNN Headline News are popular amongst the Sat-Pac subscribers. Although only 5l percent of subscribers receive these services, viewership is high. It also reveals that viewing to the basic cable services, by Sat-Pac subscribers is not diminished because of the presence of the added channels. In making the channels from the Sat-Pac tier available to all the basic subscribers, subscriber satis- faction may be greatly improved, thereby increasing the total viewing to the advertiser supported services. The potential exists for an even greater audience, particularly for MTV and CNN Headline News if the Sat-Pac channels are made available on a basic only tier. For advertising purposes this would mean adver- tisers could reach a much larger audience, particularly teens. It would also reduce the cost per thousand viewers, if rates are maintained at their present prices, or Omnicom could raise their rates, earning more revenue, while still keeping their cost per thousand viewers at the current levels. Finally, by making the advertiser supported services available to all basic subscribers,any'future research will be easier to conduct and to analyze than the two tiered structure. Limitations of the Study Since every community differs with respect to its media environment and its population characteristics, the results of this study cannot be inferred to other cable systems. However the method of gathering the data. 13D and performing the analysis, can be used as a model for other systems. This type of analysis has provided detailed information regarding the subscribers of the system and their particular viewing patterns. Similar types of information can be acquired by other systems by using this study as a model. In future research, the questionnaire for both adults and teens should include a question asking the number of adults/teens living in the household. This will provide a precise estimate of the number of adults/teens living in cable households, and can then be used in estimating the number of adults/teen watching the various cable services, per minute for the entire system. Also interviewers should be instruc- ted to record the sex of teen respondents at the completion of the teen questionnaire so as to provide greater detail of teenaged viewers. 131 NOTES -- CHAPTER 6 1Dr. Thomas F. Baldwin, Michigan State University, Department of Telecommunication, April 1985. 2Channeihatic, Inc., Alpine, California, prices as of January 1932. 3See Table 14, Chapter 3, for a breakdwon of the amount of inventory sold for various cable systems. APPENDIX A ADULT QUESTIONNAIRE - VERSION ONE 132 Omnicom Cablesystems Plymouth, Michigan Audience Viewership November l984 Adult Questionnaire COLS TELEPHONE NUMBER l-4 CALL # DATE TIME RESULT/FINAL STATUS OF INTERVIEW I. _ 5 2. 422 3. 'POSSIBLE RESULTS/FINAL STATUS OF INVERVIEW I. COMPLETED 6. BUSY 2. REFUSED 7. NO ANSWER 3. DISCONNECT 8. CALL BACK (WHEN: ) 4. TERMINATED 9 OTHER (SPECIFY) 5. BAD l (BUSINESS, JUNK) INTRODUCTION: IF FEMALE ANSWERS, ASK IF THERE IS AN ADULT MALE IN THE HOUSEHOLD YOU COULD SPEAK TO (IF QUESTIONED WHY A MALE, IT IS TO BALANCE FEMAUUHiALE SURVEY RESPONDENTS) IF CHILD ANSWERS, ASK IF THERE IS A MALE ADULT IN THE HOUSEHOLD YOU COULD SPEAK TO. IF NO MALE, CONTINUE WITH FEMALE: Hello, my name is . I'm a telecommunication student at Michigan State University working with Omnicom Cablesystems conducting a survey of subscribers. I would like to ask you a few questions. l. Does your household have cable television? (1) YES 6 (2) N0 -- TERMINATE -- We are only interested in cable subscribers, thank you very much for your time. 2. I'm going to name a few channels for you and I'd like you to tell me if you receive these channels: Channel 2, MTV Channel 4, the Weather Channel Channel 5, the Nashville Network Channel 6, Lifetime (1) YES -- GO TO YELLOW PAGE 7 (2) NO —- GO TO NEXT WHITE PAGE 133 SAT TIER SUBSCRIBERS (FOR EACH TIME PERIOD THE RESPONDENT WATCHED A PARTICULAR CHANNEL, ASK HOWTEONG THEY WATCHED IT FOR AND CIRCLE THE TIME PERIOD WHICH BEST FITS.) I'd like to ask you some questions about what television channels y0u watched yesterday. For each channel, I'd like you to tell me if you were watching yesterday between 6 a.m. and l2 noon, between l2 noon and 3 p.m., between 3 p.m. and 6 p.m, between 6 p.m. and 8 p.m., between 8 p.m. and ll p.m., after ll p.m. 3. Did you watch channel 2, MTV yesterday? (1) YES (2) N0 -- GO TO QUESTION 5 4. When did you watch MTV yesterday? (I) 6 a.m. and l2 noon (2) l2 noon and 3 p.m. (3) 3 p.m. and 6 p.m. (4) 6 p.m. and 8 p.m. (5) 8 p.m. and ll p.m. (6) after ll p.m._ 000000 5. Did you watch channel 3. CNN headlines. (l) YES (2) N0 -- GO TO QUES. 7 mmmmmm 6. When did you watch CNN headlines yesterday? (l) 6 a.m. and l2 noon (2) l2 noon and 3 p.m. (3) 3 p.m. and 6 p.m. (4) 6 p.m. and 8 p.m. (5) 8 p.m. and ll p.m. (6) after ll p.m. 000000 5 5 5 5 5 5 7. Did you watch channel 4, the Weather Channel yesterday? (1) YES (2) NO -- GO TO QUES. 9 8. When did you watch the Weather Channel yesterday? (l) 6 a.m and 12 noon 0 (2) l2 noon and 3 p.m. (3) 3 p.m. and 6 p.m. (4) 6 p.m. and 8 p.m. (5) 8 p.m. and ll p.m. (6) after ll p.m. 00000 5 5 5 S 5 5 AMOUNT OF TIME l5 30 45 l 2 3 l5 30 45 l 2 3 l5 30 45 l 2 3 l5 30 45 l 2 l5 3O 45 l 2 3 l5 30 45 l 2 3 yesterday? l5 3O 45 l 2 3 15 30 45 l 2 3 l5 30 45 l 2 l5 3O 45 l 2 TB 30 45 l 2 l5 30 45 l 2 l5 30 45 l 2 3 15 30 45 l 2 3 l5 30 45 l 2 l5 30 45 l 2 l5 3O 45 l 2 3 l5 3O 45 l 2 3 9-lO ll-IB l3-l4 lS-l6 17-18 l9-20 21 22-23 24-25 26-27 28-29 30-3l 32-33 34 35-36 37-38 39-40 41-42 43-44 45~46 9. ll. 12. 134 Did you watch channel 5, the Nashville Network yesterday? (l) YES (2) NO -- GO TO QUES. ll l0. When did you watch the Nashville Network yesterday? (l) 6 a.m. and l2 noon 0 (2) l2 noon and 3 p.m. (3) 3 p.m. and 6 p.m. (4) 6 p.m. and 8 p.m. (5) 8 p.m. and ll p.m. (6) after ll p.m. OOOOO Did you watch channel 6, the Lifetime Channel yesterday? (1) YES (2) NO -— GO TO WHITE SHEET When did you watch the Lifetime channel? (l) 6 a.m. and 12 noon 0 (2) l2 noon and 3 p.m. (3) 3 p.m. and 6 p.m. (4) 6 p.m. and 8 p.m. (5) 8 p.m. and ll p.m. (6) after ll p.m. 00000 5 5 5 5 5 5 5 5 5 5 5 5 IS 15 IS IS 15 15 15 15 15 15 IS IS 30 30 3O 3O 3O 30 3O 30 3O 3O 30 3O 45 45 45 45 45 45 45 45 45 45 45 45 l H—‘d—Jdd NNNNNN NNNNNN 3 4 5 6 3 3 3 4 5 6 3 3 47 48-49 50-51 52-53 54-55 56-57 58-59 60 6l-62 63-64 65-66 67~68 69-70 71-72 2135 BASIC SUBSCRIBERS (IF QUESTIONS ON THE YELLOW PAGES HAVE ALREADY BEEN ASKED, DD NOI READ IHIS NEXT PARAGRAPH. GO DIRECTLY TO QUESTION 13.) I'd like to ask you a few questions about what television channels you watched yesterday. For each channel I‘d like you to tell me if you were watching yesterday between 6 a.m. and 12 noon, between 12 noon and 3 p.m., between 3 p.m. and 6 p.m., between 6 p.m. and 8 p.m., between 8 p.m. and 11 p.m., after 11 p.m. ASK THE FOLLOWING OF ALL RESPONDENTS. FOR EACH TIME PERIOD THE RESPONDENT WATCHED A PARTICULAR CHANNEL, ASK HOW LONG THEY WATCHED IT FOR AND CIRCLE THE TIME PERIOD WHICH BEST FITS. 13. Did you watch channel 32, CBN, the Christian Broadcast Network yesterday? (1) YES (2) NO -- GO TO QUES. 15 14. When did you watch the Christian Broadcast Network? (I) 6 a.m. and 12 noon 0 5 15 3O 45 I 2 3 4 5 6 (2) 12 noon and 3 p.m. 0 5 15 3O 45 l 2 3 (3) 3 p.m. and 6 p.m. 0 5 15 30 45 l 2 3 (4) 6 p.m. and 8 p.m. 0 5 15 3O 45 l 2 ' (5) a p.m. and 11 p.m. o 5 15 3o 45 1 2 3 ' (6) after 11 p.m. 0 5 15 30 45 l 2 3 15. Did you watch channel 33, ESPN, the Sports Channel yesterday? (1) YES (2) NO -- GO TO QUES. 17 16. When did you watch ESPN? (l) 6 a.m. and 12 noon 0 5 15 30 45 l 2 3 4 5 6 (2) 12 noon and 3 p.m. 0 5 15 30 45 l 2 3 (3) 3 p.m. and 6 p.m. 0 5 15 30 45 1 2 3 (4) 6 p.m. and 8 p.m. 0 5 15 30 45 l 2 (5) 8 p.m. and 11 p.m. 0 5 15 30 45 l 2 3 (6) after 11 p.m. 0 5 15 30 45 l 2 3 17. Did you watch channel 35, the USA Network yesterday? (1) YES (2) NO -- GO GO QUES. 19 18. When did you watch the USA Network? (l) 6 a.m. and 12 noon 0 5 15 30 45 l 2 3 4 5 6 (2) 12 noon and 3 p.m. O 5 15 3O 45 1 2 (3) 3 p.m. and 6 p.m. 0 5 15 3O 45 l 2 (4) 6 p.m. and 8 p.m. 0 5 15 3O 45 l 2 (S) 8 p.m. and 11 p.m. 0 5 15 30 45 1 2 3 (6) after 11 p.m. O 5 15 30 45 l 2 3 -' 6-7 8-9 10-11 12-13 14-15 16-17 18 19-20 21-22 23-24 25-26 27-28 29-30 31 32-33 34-35 35-37 38-39 40-41 42-43 19. (FOR 21. 23. 25. 136 Did you watch channel 36, CNN, the Cable New Network yesterday? (1) YES (2) NO -- GO TO QUES. 21 20. When did you watch the Cable News Network? (1) 6 a.m. and 12 noon 0 (2) 12 noon and 3 p.m. 0 (3) 3 p.m. and 6 p.m. 0 (4) 6 p.m. and 8 p.m. O (5) 8 p.m. and 11 p.m. O (6) after 11 p.m. 0 THOSE INTERVIEWING ON MONDAY OR SUNDAY, OMIT QUESTION 21 AND QUESTION 22) U'lU‘mmU'lU" 15 15 15 15 15 15 3O 3O 30 3O 3O 30 45 45 45 45 45 45 1 1 1 1 1 1 NNNNNN 345.6 3 3 Did you watch channe1 38, FNN, the Financia1 News Network yesterday? (1) YES (2) NO -- GO TO QUES. 23 22. When did you watch the Financial (1) 6 a.m. and 12 noon 0 (2) 12 noon and 3 p.m. O (3) 3 p.m. and 6 p.m. 0 (4) 6 p.m. and 8 p.m. 0 Did you watch channel 39, SPN, the Satellite (1) YES (2) N0 -- GO TO QUES. 25 News Network? 5 5 5 5 15 15 15 15 3O 3O 30 30 Program Network yesterday? 45 45 45 45 d—l-‘d 24. When did you watch the Satellite Program Network? (1) 6 a.m. and 12 noon 0 (2) 12 noon and 3 p.m. (3) 3 p.m. and 6 p.m. (4) 6 p.m. and B p.m. (5) 8 p.m. and 11 p.m. (6) after 11 p.m. 00000 5 5 5 5 5 5 15 15 15 15 15 15 30 3O 3O 30 3O 30 45 45 45 45 45 45 1 1 1 1 l 1 NNNN NNNNNN Did you watch channel 8, the Omni Family Home Theatre and Programming Channel yesterday? (1) YES (2) N0 -- GO TO QUES. 27 26. When did you watch this channel? (1) 12 noon and 3 p.m. O (2) 3 p.m. and 6 p.m. 0 (3) 6 p.m. and 8 p.m. 0 (4) 8 p.m. and 11 p.m. 0 (DUWLDUW 15 15 15 15 30 3O 3O 30 45 45 45 45 _l—J—l—l NNNN 3 4 5 6 Community 44 45-46 47-48 49-50 51-52 53-54 55-56 57 58-59 60-61 62-63 64-65 66 67-68 69-70 71-72 73-74 75-76 77-78 6-7 8-9 10-11 12-13 27. 28. 30. 31. 33. 35. 137 Now still on channel 8, the Omni Family Home Theater and Community Programming Channel, how many times did you watch this channel in the past month? 0 1 2 3 4 6 7 or more Did you watch channel 15, the Community and Access Programming channel yesterday? (1) YES (2) NO -- GO TO QUES. 30 29. When did you watch this channel? (1) 12 noon and 3 p.m. 0 5 15 3O 45 l 2 (2) 3 p.m. and 6 p.m. 0 5 15 3O 45 1 2 (3) 6 p.m. and 8 p.m. 0 5 15 3O 45 1 2 (4) 8 p.m. and 11 p.m. 0 5 15 30 45 1 2 3 Now still on channel 15, the Community and Access Programming Channel, how many times did you watch this channel in the past month? 0 1 2 3 4 5 6 7 or more Can you name a particular program you have watched on either channel 8 or channel 15? ‘ (1) YES (2) NO -- GO TO QUES. 33 32. IF YES: Which Program? On September 6th, 7th, 8th, channel 8, the Omni Family Home Theatre and Community and Access Programming Channel covered the Plymouth Fall Festival. Did you watch any of the show? (1) YES (2) NO -- GO TO QUES. 35 34. Did you watch the coverage of the Plymouth Fall Festival for one day, two days, or all three days? (1) one day (2) two days (3) three days On September 28th, 29th, channel 8, the Omni Family Home Theater channel, and Community and Access Programming Channel covered the Canton 150 Fund Auction. Did you watch any of that? (1) YES I (2) N0 -- GO TO QUES. 37 36. Did you watch the Canton 150 Fund Action for one day or on both days? (1) one day (2) both days 14 15 16—17 18-19 20-21 22-23 24 28 29 3O 31 37. 39. 40. 1:38 On November 6th, Channel 8 had election night coverage from 9 p.m. to midnight on their show "Omnican Election Night ‘84." Did you watch any of that? (1) YES 32 (2) NO -- on T0 oucs. 39 38. How long did you watch it? 33-34 5 15 3O 45 l 2 3 On a scale of one to five, with one meaning not very important and five meaning very important, how important was the presence of the local programming, on channel 8 and channel 15, in your decision to subscribe to cable? 35 A (A, V macaw-t 0n the same scale of one to five, how important is local community programming, on channel 8 and channel 15, in your decision to continue subscribing to cable? . (l) l 36 (2) 2 (3) 3 (4) 4 (5) 5 Now just a few final questions. 41. 42. 43. What is your marital status. Are you: (1) Single 37 (2) Married (3) Separated (4) Divorced (5) Widowed (9) DK/Refused How much education have you completed? (1) Less than highschool 38 (2) Some highschool (3) Highschool graduate (4) Some college or technical school (5) College training (6) Graduate training (9) Dk/Refused Into which of the following age groups do you fall into? Are you between: (1) 18 and 25 39 (2) 26 and 34 (3) 35 and 49 (4) 50 and 65 (5) 65 and over (9) DK/Refused 44. 45. 46. 47. 48. 49. IF YES: 1:39 Including yourself. in total, how many people currently live in your household? (1) one (2) two (3) three (4) four (5) five (9) DK/Re or more fused 40 How many people living in your h0usehold have a full time job outside of the home? (1) one (2) two (3) three or more 41 Is your total annual household income from all working people more than $15,000? (-) v55 (1) NO 1r YES: (-) (2 IF YES: (-) (3 IF YES: (-) (1) IF YES: (5) (6) (9) Is it more YES NO 15 it more YES NO Is it more YES NO Is it more NO YES DK/Refused than $25,000? ‘than $35,000? than $45,000? than $55,000? What is your occupation? (RECORD THE EXACT REPLY) 42 43-44 RECORD SEX OF RESPONDENT (1) Male (2) Femal e 45 Are there any children in your household between the age of 12 and 18? (1) YES (2) N0 -- TERMINATE AND THANK RESPONDENT FOR THEIR TIME We need some similar information from your child. 00 you have a son/ daughter between the age of 12 and 18 that we could speak to for a few minutes? IF NO: we could speak to for a few minutes? HOUSEHOLD WITH A CHILD AVAILABLE GO TO THE PINK FORM FOR CHILD IF CHILD IS NOT AVAILABLE ARRANGE A CALLBACK. (ALTERNATE SEX OF CHILD EVERY OTHER CALL) Do you have a daughter/son between the age of 12 and 18 that APPENDIX B ADULT QUESTIONNAIRE - VERSION TWO 140 Omnicom Cablesystems Plymouth, Michigan Audience Viewership November 1984 Adult Questionnaire Egg; TELEPHONE NUMBER (.4 EALLJQ _951§_ TIME RESULT/FINAL STATUS OF INTERVIEW 1. - . 5 2. _ 3. ‘POSSIBLE RESULTS/FINAL STATUS OF INVERVIEW l. COMPLETED 6. BUSY 2. REFUSED 7. NO ANSWER 3. OISCONNECT 8. CALL BACK (WHEN: ) 4. TERMINATED 9. OTHER (SPECIFY) 5. BAD I (BUSINESS, JUNK) INTRODUCTION: IF FEMALE ANSWERS, ASK IF THERE IS AN ADULT MALE IN THE HOUSEHOLD YOU COULD SPEAK TO (IF QUESTIONED WHY A MALE. IT IS TO BALANCE FEMAUUUlALE SURVEY RESPONDENTS) IF CHILD ANSWERS, ASK IF THERE IS A MALE ADULT IN THE HOUSEHOLD YOU COULD SPEAK TO. IF NO MALE, CONTINUE WITH FEMALE: Hello, my name is . I'm a telecommunication student at Michigan State University working with Omnicom Cablesystems conducting a survey of subscribers. I would like to ask you a few questions. 1. Does your household have cable television? (1) YES 6 (2) N0 -- TERMINATE -- We are only interested in cable subscribers, thank you very much for your time. 2. I'm going to name a few channels for you and I'd like you to tell me if you receive these channels: Channel 2, MTV Channel 4, the Weather Channel Channel 5, the Nashville Network Channel 6, Lifetime (1) YES -- GO TO YELLOW PAGE 7 (2) N0 -- GO TO NEXT WHITE PAGE 3. 5. 141 SAT TIER SUBSCRIBERS (FOR EACH TIME PERIOD THE RESPONDENT WATCHED A PARTICULAR CH NNEL, ASK HOW LONG THEY WATCHED IT FOR AND CIRCLE THE TIME PERIOD WHICH BEST FITS.) I'd like to ask you a few questions about what television channels you watched yesterday. For each channel I'd like you to tell me if you were watchinq yesterday between 6 am and 12 noon, between 12 noon and 3 pm, between 3 pm and 6 pm, between 6 pm and 8 pm. between 8 pm and 11 pm, after 11 pm. ASK THE FOLLOWING OF ALL RESPONDENTS. FOR EACH TIME PERIOD THE RESPONDENT WATCHED A PARTICULAR CHANNEL, ASK HOW LONG THEY WATCHED IT FOR AND CIRCLE THE TIME PERIOD WHICH BEST FITS. Did you watch channel 6, the Lifetime Channel yesterday? (1) YES (2) NO --GO TO QUESTION 5 4. When did you watch the Lifetime Channel? (1)6amand12noon O 5.15 3045123456 (2) 12 noon and 3 pm 0 5 15 3O 45 I 2 3 (3) 3 pm and 6 pm 0 5 15 3O 45 l 2 3 (4) 6 om and 8 om 0 5 15 30 45 l 2 (5) 8 pm and 11 pm 0 5 15 30 45 l 2 3 (6) after 11 pm 0 5 15 30 45 l 2 3 Did you watch channel 5, the Nashville Network yesterday? (1) YES (2) N0 -- GO TO QUESTION 7 6. When did you watch the Nashville Network yesterday? (1) 6 am and 12 noon 0 5 15 30 45 1 2 3 4 5 6 (2) 12 noon and 3 pm 0 ‘5 15 3O 45 1 2 3 (3) 3 pm and 6 pm 0 '5 15 30 45 l 2 3 (4) 6 pm and 8 pm 0 5 15 30 45 1 2 (5) 8 pm and 11 pm 0 5 15 30 45 l 2 3 (6) after 11 pm 0 '5 15 3O 45 l 2 3 9-10 11-12 13-14 15-16 17-13 19-20 21 9. 11. 142 Did you watch channel 4, the Weather Channel yesterdav? YES (1) (2) N0 -- GO TO OUESTION 9 8. When did you watch the Weather Channel yesterday? (I) (2) (3) (4) (5) (6) Did you watch channel 3, CNN Headlines, yesterday? (1) YES (2) N0 6 am and 12 noon 12 noon and 3 pm 3 pm and 6 pm 6 pm and 8 pm 8 pm and 11 pm after 11 pm --GO TO QUESTION 11 O O O O 0 O 5 5 5 5 15 15 15 15 15 15 3O 3O 3O 30 30 3O 45 45 45 45 45 45 10. When did you watch CNN Headlines yesterday? (I) (2) (3) (4) (5) (6) 6 am and 12 noon 12 noon and 3 pm 3 pm and 6 pm 6 pm and 8 pm 8 pm and 11 pm after 11 pm 0 O 0 O 0 O 5 5 5 5 5 5 15 15 15 15 15 15 Did you watch channel 2, MTV yesterday? ) YES ) (1 (2 NO 12. When did you watch MTV yesterday? (I) (2) (3) (4) (5) (6) -- GO TO WHITE SHEET 6 am and 12 noon 12 noon and 3 pm 3 pm and 6 pm 6 pm and 8 pm 8 pm and 11 pm after 11 pm 5 U'IU'IWU'IU‘ I5 15 15 15 15 15 30 30 3O 3O 3O 30 30 3O 30 30 30 30 45 45 45 45 45 45 45 45 45 45 45 45 I NNN N N NNN 3 4 5 6 34 35-35 37-38 39-40 41-42 43-44 45-46 47 48-49 50-51 52-53 54-55 56-57 58-59 60 61-62 63-64 65-66 67-68 69-70 71-72 13. 14. 15. 19. 1113 On a scale of one to five, with one meaning not very important and five meaning very important, how important was the presence of the local cmununity programming, on channel 8 and channel 15, in your decision to subscribe to cable? (I) 1 73 (2) 2 (3) 3 (4) 4 (5) 5 On the same scale of one to five, how important is local community programming on channel 8 and channel 15, in your decision to continue subscribing to cable? (I) 1 74 (2) 2 (3) 3 (4) 4 (5) 5 Can you name a particular program you have watched on either channel 8, the Omni Family Home Theater and Community Programming channel or channel 15, the Community Access and Programming channel? (1) YES - '75 (2) NO --- GO TO QUESTION 17 16. If YES: Which program? 76-77 On September 6th, 7th.8th, channel 8, the Omni Family Home Theater and Connmnity and Access Progrannnng channel covered the Plymouth Fall Festival. Did you watch any of the Show? (1) YES 78 (2) N0 --- GO TO QUESTION 19 18. Did you watch the coverage of the Plymouth Fall Festival for one day, two days, or all three days? (1) one day 79 (2) two days (3) three days On September 28th, 29th, channel 8, the Omni Home Family Theater channel and Community and Access Prooramming channel covered the Canton 150 Fund Auction. Did you watch any of that? (1) YES 5 (2) N0 ---GO TO QUESTION 21 20. Did you watch the Canton 150 Fund Auction for one day. or on both days? (I) one day 6 (2) both days 1411 21. On November 6th, channel 8, had election night coveraoe from 9 pm to midnight on their show “Omnicom Election Night '84“. Did you watch any of that? (1) YES 7 (2) NO ---60 TO OUESTION 23 22. How long did you watch it? 8-9 0 5 15 30 45 1 2 3 BASIC SUBSCRIBERS (IF QUESTIONS ON THE YELLOW PAGES HAVE ALREADY BEEN ASKED, DO NOT READ THIS NEXT PARAGRAPH. GO DIRECTLY TO QUESTION 23) I'd like to ask you a few questions about what television channels you watched yesterday. For each channel I'd like you to tell me if you were watching yesterday between 6 am and 12 noon, between 12 noon and 3 pm, between 3 om and 6 pm, between 6 pm and 8 pm, between 8 pm and 11 om, after 11 pm. ASK THE FOLLOWING OF ALL RESPONDENTS. FOR EACH TIME PERIOD THE RESPONDENT WATCHED A PARTICULAR CHANNEL, ASK HOW LONG THEY WATCHED IT FOR AND CIRCLE THE TIME PERIOD WHICH BEST FITS. 23. Did you watch channel 8, Omni Family Home Theatre and Community Program- ming channel yesterday? (1) YES 10 (2) NO ---60 TO QUESTION 25 24. When did you watch this channel? AMOUNT OF TIME (1) 12 noon and 3 pm 0' 5 15 3O 45 1 2 3 11-12 (2) 3 pm and 6 pm 0 5 15 3O 45 1 2 3 13-14 (3) 6 pm and 8 pm 0 5 15 3O 45 1 2 15-16 (4) 8 pm and 11 pm .0 5 15 30 45 l 2 3 17-18 25. Now still on channel 8, the Omni Family Home Theater and Community Programming channel, how many times did you watch this channel in the past month? 0 l 2 3 4 5 6 7 or more 19 26. Did you watch channel 15, the Community and Access Programming channel yesterday? (1) YES 20 (2) N0 ---GO TO QUESTION 28 28. 29. (FOR 31. 1455 27. When did you watch this Channel? AMOUNT OF TIME (1) 12 noon and 3 pm 0 5 15 30 45 l 2 3 (2) 30m and 6 pm 0 5 15 3O 45 1 2 3 (3) 6 pm and 8 pm 0 5 15 30 45 l 2 (4) 8 pm and 11 pm 0 5 15 30 45 l 2 3 Now still on channel 15, the Community and Access Progrannfing channel, how many times did you watch this channel in the past month? 0 l 3 4 5 6 7 or more Did you watch channel 39, SPN, the Satellite Program Network yesterday? (1) YES (2) NO ---GO TO QUESTION 31 30. When did you watch the Satellite Program Network? (1) 6 am and 12 noon 0 5 15 30 45 l 2 3 4 5 6 (2) 12 noon and 3 pm 0 5 15 3O 45 1 2 3 (3) 3 pm and 6 pm 0 5 15 30 45 1 2 3 (4) 6pm and 8 pm 0 5 15 30 45 I 2 (5) 8 pm and 11 pm 0 5 15 3O 45 1 2 3 (6) after 11 pm 0 5 15 3O 45 I 2 3 THOSE INTERVIEWING ON MONDAY 0R SUNDAY, OMIT QUESTION 30 and QUESTION 31) Did you watch channel 38, FNN, the Financial News Network yesterday? (1) YES (2) NO ---GO TO QUESTION 33 32. When did you watch the Financial News Network? (1) 6 am and 12 noon 0 5 15 3O 45 1 2 3 4 5 6 (2) 12 noon and 3 pm 0 5 15 30 45 l 2 3 (3) 3 pm and 6 pm 0 5 15 3O 45 l 2 3 (4) 5 pm and a pm 0 5 15 30 45 l 2 21-22 23-24 25-25 27-28 29 30 31-32 33-34 35-36 37-38 39-40 41-42 43 44-45 46-47 48-49 50-51 14t5 33. Did you watch channel 36, CNN, the Cable News Network yesterday? (1) YES (2) N0 ---60 To QUESTION 35 52 34. When did you watch the Cable News Network? AMOUNT OF TIME (1) 6 am and 12 noon 0 5 15 30 45 1 2 3 4 5 6 53-54 (2) 12 noon and 3 pm 0 5 15 30 45 1 2 3 55-56 (3) 3 pm and 6 pm 0 5 15 3O 45 l 2 3 57-58 (4) 6 pm and a pm 0 5 15 .30 45 l 2 59-60 (5) a pm and 11 pm 0 5 15 30 45 l 2 3 61-62 (6) after 11 pm 0 5 15 3O 45 l 2 3 63-64 35. Did you watch channel 35, the USA Network yesterday? 1 YES . 55 (l (2 NO ---60 T0 QUESTION 37 36. When did you watch the USA Network? (1) 6 am and 12 noon 0 5 15 30 45 l 2 3 4 5 6 66-67 (2) 12 noon and 3 pm 0 S 15 3O 45 l 2 3 68-69 (3) 3 pm and 6 pm 0 5 15 3O 45 l 2 3 70-71 (4) 6 pm and 8 pm 0 5 15 3O 45 l 2 72-73 (5) 8 pm and 11 pm 0 5 15 3O 45 1 2 3 74-75 (6) after 11 pm 0 5 15 3O 45 l 2 3 76-77 37. Did you watch Channel 33, ESPN, the Sports Channel yesterday? (I (2 38. When did you watch ESPN? ) YES 5 ) NO --—GO TO QUESTION 39 15 30 45 1 2 3 4 5 6 6-7 (1) 6 am and 12 noon 0 5 (2) 12 noon and 3 pm 0 5 15 30 45 l 2 3 8-9 (3) 3 pm and 6 pm 0 5 15 30 45 l 2 3 lO-ll (4) 6 pm and 8 pm 0 5 15 3O 45 l 2 12-13 (5) 8 pm and 11 pm 0 5 15 30 45 l 2 3 14-15 (6) after 11 pm 0 5 15 30 45 1 2 3 16-17 39. 41. 42. 43. 44. 147 Did you watch channel 32, CBN, the Christian Broadcast Network yesterday? (1) YES (2) NO ---60 TO QUESTION 41 40. When did you watch the Christian Broadcast Network? (1) 6 am and 12 noon 5 15 3O 45 l 2 3 4 5 6 (2) 12 noon and 3 pm 5 15 30 45 1 2 3 (3) 3 pm and 6 pm 5 15 30 45 l 2 3 (4) 6 pm and 8 pm 15 30 45 l 2 (5) 8 pm and 11 pm 5 15 30 45 1 2 3 000000 (1'1 (6) after 11 pm 5 15 30 45 1 2 3 What is your marital status. Are you: ) Single ) Married ) Separated ) Divorced ) Widowed ) DK/Refused (1) Less than high school (2) Some high school (3) High School graduate (4) Some college or technical school (5) College training (6) Graduate training (9) DK/Refused Into which of the following age groups do you fall into? Are you between (1) 18 and 25 (2) 26 and 34 (3) 35 and 49 (4) 50 and 65 (9) DK/Refused Including yourself, in total, how many peOple currently live in your household? one two three four five or more DK/Refused ND UTDUJNJ VVVVVV 18 19-20 21-22 23-24 25-26 27-28 29-30 31 32 33 34 45. 46. IF IF IF 47. 14E3 How many people living in your household have a full time job outside of the home? (1) one 35 (2) two (3) three or more Is your total annual household income from all working people more than $15,000? (-) YES 36 (1) NO YES: Is it more than $25,000 -) YES 2) NO YES: 15 it more than $35,000? (-) YES (3) NO YES: Is it more than $45,000? -) YES 4) NO YES: Is it more than $55,000? NO YES DK/Refused AAA \0 0‘ 0'1 vvv What is your Occupation? (RECORD THE EXACT REPLY) 37-38 48. RECORD SEX OF RESPONDENT 39 Are there any children in y0ur household between the age of 12 and 18? (1) YES 40 (2) N0---TERMINATE AND THANK RESPONDENT FOR THEIR TIME IF YES: We need some similar information from your child. 00 you have a son/daughter between the age of 12 and 18 that we could speak to for a few minutes. (ALTTERNATE SEX OF CHILD EVERY CALL) IF NO: 00 you have a daughter/son between the age of 12 and 18 that we could Speak to for a few minutes? HOUSEHOLD WITH A CHILD AVAILIBLE GO TO THE PINK FORM FOR CHILD. IF NOT AVAILIBLE ARRANGE A CALLBACK. APPENDIX C TEEN QUESTIONNAIRE - VERSION ONE 149 Omnicom Cablesystem Plymouth Michigan Audience Viewership November 1984 Children's Questionnaire Telephone Number COLS 1-4 15C) SAT TIER SUBSCRIBERS (FOR EACH TIME PERIOD THE RESPONDENT MATCHED A PARTICULAR CHANNEL, ASK HOW LONG THEY WATCHED IT FOR AND CIRCLE THE TIME pERI’lD WHICH BEST FITS.) I'd like to ask you some questions about what television channels you watched yesterday. For each channel, I'd like you to tell me if you were watching yesterday between 6 am and 12 noon, between 12 noon and 3 pm, between 3 pm and 6 pm, between 6 pm and 8 pm, between 8 pm and 11 pm, after 11 pm. 1. Did you watch channel 6, the Lifetime Channel yesterday? (1) YES (2) NO ---GO TO QUESTION 3 2. When did you watch the Lifetime Channel? AMOUNT OF TIME (1) 6 am and 12 noon 0 5 15 30 45 l 2 3 4 5 6 (2) 12 noon and 3 pm 0 5 15 3O 45 l 2 3 (3) 3 pm and 6 pm 0 5 15 30 45 1 2 3 (4) 6 pm and B‘pm O 5 15 30 45 l 2 (5) 8 pm and 11 pm 0 5 15 30 45 l 2 3 (6) after 11 pm 0 5 15 30 45 1 2 3 3. Did you watch channel 5, the Nashville Network yesterday? (1) YES (2) N0 --GO TO QUESTION 5 4. When did you watch the Nashville Network yesterday? (1) 6 am and 12 noon 0 5 15 3O 45 1 2 3 4 5 6 (2) 12 noon and 3 pm 0 5 15 3O 45 l 2 3 (3) 3 pm and 6 pm 0 5 15 30 45 l 2 3 (4) 6 pm and 8 pm 0 5 15 30 45 1 2 (5) 8 pm and 11 pm 0 5 15 30 45 l 2 3 (6) after 11 pm 0 5 15 30 45 l 2 3 6-7 8-9 10-11 12-13 14-15 16-17 18 19-20 21-22 23-24 25-26 27-28 29-30 5. Did you watch channel 4, the Weather Channel yesterday? (1) (2) 6. (l) (2) (3) (4) (5) YES NO ---GO TO QUESTION 7 151 When did you watch the Weather Channel yesterday? 6 am and 12 noon 12 n 3 Pm 6 pm 8 Pm con and 3 pm and 6 pm and 8 pm and 11 pm (6) after 11 pm OOOOOO mmuhmu-i 15 15 15 15 15 15 AMOUNT OF TIME 30 45 30 45 30 45 30 45 30 45 3O 45 7. Did you watch channel 3, CNN Headlines, yesterday? (1) (2) 9. YES NO --GO TO QUESTION 9 When did you watch CNN Headlines yesterday? (I) (2) (3) (4) (5) (6) 6 am and 12 noon 12 noon and 3 pm 3 pm and 61pm 6 pm and 8 pm 8 pm and 11 pm after 11 pm O 0000 0 15 15 15 15 15 15 9. Did you watch channel 2, MTV yesterday? (1) YES (2) N0 10. When did you watch MTV yesterday? 5 (l) (2) (3) (4) (5) (6) -- GO TO WHITE SHEET 6 am and 12 noon 12 noon and 3 pm 3 pm and 6 pm 6 pm and 8 pm 8 pm and 11 pm after 11 pm 0 O O 0 0 0 via-moi 15 15 15 15 15 15 3O 45 3O 45 3O 45 30 45 30 45 3O 45 3O 45 30 45 3O 45 3O 45 30 45 30 45 NNNNNN NNNNNN 1 1 1 2 3 4 5 6 2 3 2 3 2 2 3 2 3 3 4 5 6 3 3 3 3 3 4 5 6 3 3 3 3 31 32-33 34-35 36-37 33-39 40-41 42-43 44 45-46 47-48 49-50 51-52 53-54 55-56 57' 58-59 60-61 62-63 64-65 65-67 68-69 1152 ll. Can you name a particular program you watched on either channel 8, the Omni Family Home Theater and Community Programming Channel, or channel 15 the Community Access and Programming channel? (1) YES 70 (2) NO -- GO TO QUESTION (3 12.1F YES: Which Program? 71-72 13 . On September 6th, 7th,8th, channel 8, the Omni Family Home Theater and Corrmunity and Access Programing channel covered the Plymouth Fall Festival. Did you watch any of the show? (1) YES 73 (2) NO --- GO TO QUESTION 15 14, Did you watch the coverage of the Plymouth Fall Festival for one day, two days, or all three days? (I; one day 74 (2 two days (3) three days 15_ On September 28th, 29th, channel 8, the Omni Home Family Theater channel and Community and Access Programming channel covered the Canton 150 Fund Auction. Did you watch any of that? (1) YES 5 (2) NO --—GO TO QUESTION 17 15 Did you watch the Canton 150 Fund Auction for one day, or on both days? (I) one day 6 (2) both days» 17, On November 6th, channel 8, had election night coverage from 9 pm to midnight on their show "Omnicom Election Night '84". Did you watch any of that? (1) YES 7 (2) N0 ---GO TO QUESTION 18. How long did you watch it ? 3-9 0 5 15 30 45 I 2 3 153 BASIC SUBSCRIBERS (IF QUESTIONS ON THE YELLOW PAGES HAVE ALREADY BEEN ASKED, 00 HI N XT PARAGRAPH. GO DIRECTLY TO QUESTION 1 ) I'd like to ask you a few questions about what television channels you watched yesterday. For each channel I'd like you to tell me if you were watching yesterday between 6 am and 12 noon, between 12 noon and 3 pm, between 3 pm and 6 pm, between 6 pm and 8 pm, between 8 pm and 11 om, after 11 pm. ASK THE FOLLOWING OF ALL RESPONDENTS. FOR EACH TIME PERIOD THE RESPONDENT WATCHED A PARTICULAR CHANNEL. ASK HOW LONG THEY WATCHED IT FOR AND CIRCLE THE TIME PERIOD WHICH BEST FITS. 19, Did you watch channel 8, Omni Family Home Theatre and Community Program- ming channel yesterday? (1) YES (2) N0 ---GO TO QUESTION 25 20, When did you watch this channel? AMOUNT OF TIME (1) 12 noon and 3 pm 0 5 15 3O 45 l 2 3 (2) 3 pm and 6 pm 0 5 15 3O 45 l 2 3 (3) 6 pm and 8 pm 0 ‘5 15 3O 45 l 2 3 (4) 8 pm and 11 pm -0 '5 15 30 45 l 2 3 21, Now still on channel 8, the Omni Family Home Theater and Community Programming channel, how many times did you watch this channel in the past month? 0 1 2 3 4 5 6 7 or more 22, Did you watch channel 15, the Community and Access Programming channel yesterday? (1) YES (2) NO ---60 T0 QUESTION 25 23,. When did you watch this channel? AMOUNT OF TIME (1) 12 noon and 3 pm 0 S 15 3O 45 1 2 3 (2) 30m and 6 pm 0 5 15 3O 45 l 2 3 (3) 6 pm and 8 pm 0 5 15 30 45 l 2 (4) 8 pm and 11 pm 0 5 15 30 45 1 2 3 24. Now still on channel 15, the Community and Access Programming channel, how many times did you watch this channel in the past month? 0 1 3 4 5 6 7 or more 10 11-12 13-14 15-16 17-18 19 20 21-22 23-24 25-26 27-28 29 25. (FOR 27. . 29- (l) (2) 26. THOSE INTERVIEWING ON MONDAY 0R SUNDAY, OMIT QUESTION27 and QUESTION28 ) 1154 YES NO ---GO TO QUESTION 27 When did you watch the Satellite Program Network? (1) 6 am and 12 noon 0 5 15 30 45 (2) 12 noon and 3 pm 0 5 15 3O 45 (3) 3 pm and 6 pm 0 5 15 30 4S (4) 6pm and 8 pm 0 S 15 30 45 (5) 8 pm and 11 pm 0 5 15 30 45 (6) after 11 pm 0 S 15 30 45 l l NNNNN 2 ’Did you watch channel 39, SPN, the Satellite Program Network yesterday? wwwww 3 Did you watch channel 38, FNN, the Financial News Network yesterday? (I) (2) 28. YES NO ---GO TO QUESTION 29 When did you watch the Financial News Network? (1) 6 am and 12 noon 0 5 15 3O 45 (2) 12 noon and 3 pm 0 5 15 30 45 (3) 3 pm and 6 an O 5 15 3O 45 (4) 6 pm and 8 pm 0 5 15 3o 45 NNNN 3 4 5 6 Did you watch channel 36, CNN, the Cable News Network yesterday? (1) (2) 30. YES NO ---GO TO QUESTION 31 When did you watch the Cable News Network? AMOUNT OF TIME 2 3 4 5 6 (l) 6 am and 12 noon 0 5 15 30 45 (2) 12 noon and 3 pm 0 15 30 4S (3) 3 pm and 6 pm 0 5 15 3O 45 (4) 6 pm and 8 pm 0 5 15 30 4S (5) 8 pm and 11 pm 0 5 15 3O 45 (6) after 11 pm 0 5 15 3O 45 I 1 I 2 2 2 2 2 3 3 30 31-32 33-34 35-36 37-38 39-40 41-42 43 44-45 46-47 48-49 50-51 52 53-54 55-56 57-58 59-60 61-62 63-64' 35. . 31. 33. 155 Did you watch channel 35, the USA Network yesterday? (1) YES (2) NO ---GO TO QUESTION 33 32. When did you watch the USA Network? (11 (2) (3) (4) (5) (6) 6 am and 12 noon 12 noon and 3 pm 3 pm and 6 pm 6 pm and 8 pm 8 pm and 11 pm after 11 pm 0000 0 mmfiwmmm Did you watch channel 33, ESPN, the Sports (1) YES (2) NO 34. When (I) (2) (31 (4) (5) (6) Did you watch channel 32, CBN, the Christian Broadcast Network yesterday? (1) YES ---GO TO QUESTION 35 did you watch ESPN? 6 am and 12 noon 12 noon and 3 pm 3 pm and 6 pm 6 pm and 8 pm 8 pm and 11 pm after 11 pm COOOOO U'IU‘U'U'IU'I (2) NO ---TEPMINATE AND THANK RESPONDENT 36. When did you watch the Christian Broadcast Network? (1) (2) (31 (4) (5) (6) TERMINATE AND THANK RESPONDENT. 6 am and 12 noon 12 noon and 3 pm 3 pm and 6 pm 6 pm and 8 pm 8 pm and 11 pm after 11 pm 006900 mmmmmm 15 15 15 15 15 15 30 3O 30 30 30 30 45 45 45 45 45 45 1 1 Channel yesterday? 15 15 15 15 15 15 15 15 15 15 15 15 30 30 30 3O 3O 3O 3O 30 30 3O 30 30 45 45 45 45 45 45 45 45 45 45 45 4S NNNNNN 3 4 5 6 3 4 5 6 65 66-67 68-69 70-71 72473 74-75 76-77 6-7 8-9 10-11I 12-13 14-15 16-17 18 19-20 21-22 23-24 25-26 27-28 29-30 BIBLIOGRAPHY Arbitron Ratings/Radio, Detroit, Spring 1984. Arbitron Ratings/Television, Detroit, July 1984. "At Last - It's D Day for SAU's." 'Marketing a Media Decisions, July 1984, p. 208. Baldwin, Thomas F., and 0. Stevens McVoy. ”Cable Communication. Englewood Cliffs, N.J., Prentice-Hall} Ihc., 1983. Baldwin, Thomas F., Michigan State University, Department of Telecommuni- cation, April 1985. "Battling Internally, Externally." Advertising Age, 30 May 1984, p. 32. CAB Cable System Advertising Profiles, Cabletelevision Advertising Bureau, New York, N.Y. "CAB: Nielsen Numbers Indicate Cable Thrives Where Broadcast Erodes.“ CableVision, 12 May 1984, p. 20. "Cable Marketing Update." Cabletelevision Advertising Bureau, New York, NY. "Cable Ratings Gain Industry Acceptance." CableVision, 2 April 1984, p. 24. ChannelMatic Inc., Alpine, California, January 1982. “Fostering Creativity." Advertising 499: 31 May 1984’ P° 36' General Population Characteristics, Michigan Census of POpulation, 1980, U.S. Department of Commerce, Bureau of the Census. "Healthy Growth for Cable Advertising," Broadcasting, 19 November 1984, p. 69. Jones, Kesinger, Thomas F. Baldwin and Martin P. Block. Cable Advertising: New Wgys to New Business. Englewood Cliffs, N.J., Prentice-Hall, Inc., 1986, in press. Kaatz, Ronald B. Cable: An Advertiser's Guide to the New Electronic Media. (Chicago, IL, Crain Books, 1982), p. 74. ”Localization Wins and Loses." AdvertiSing Age, 31 May 1984, p. 38. 156 157 Media Market Guide. Bethleham Publishing Co., Bethleham, N.H., lst Quarter, 1985, p. 108, 276. Melon, Andy, Station Manager, WSPD, Plymouth, MI, January 1985. "Memo," Cabletelevision Advertising Bureau, New York, NY. Metzger, Gale 0. "Cable Television Audiences." "Journal of Advertising Research, Vol. 23, No. 4, August/September 1983, p. 42. Michi an News Director , published by the Michigan Press Association, 1985 Eaition. Nielsen, A.C. "The Outlook for Electronic Media." Journal of Adver- tising Research, Vol. 22, No. 6, December 1982/January 1983, p. 11. "Nielsen Nos. Show Cable Viewing is Up.“ MultiChannel News, 29 October 1984, p. 8. "Research Report." Cabletelevision Advertising Bureau, New York, NY. 1984 Sales and Marketing Management Survey of Buying Power, July 1984. l'Season to Date: HUT's Down Again." Broadcasting, 3 December 1984, pp. 39-40. The Detroit Free Press, interview with the Advertising Department, Detroit, MI, February 1985. The Detroit News, interview with the Advertising Department, Detroit, MI, February 1985. "The Multi-Channel Environment Report." Television Audience Assessment, Inc., issued from Cambridge, Mass., 1983, p. 17. "To the Cable TV Survivors Go the Sports." Advertising Age. 11 June 1984, p. 66. GRN STATE UNIV. LIB IIIII IIIIII III III III IIIIII IIII IIII II III III III III III IIIIIII