Exam 6: Commercial Operations

Announcements that call attention to future programs of networks or stations are called

Congress has banned hard liquor ads from broadcast and cable.

As of 2009, program-length commercials, or infomercials, are prohibited.

The sponsor identification rule, Section 317 of the Communications Act, was designed to prevent deception by disguised propaganda from unidentified sources.

All broadcast stations and cable systems are local in the sense that each is licensed or franchised to serve a specific local community.

Even the largest MSOs serve fewer than 20 percent of all television homes.

Major advertisers usually concentrate their advertising dollars on a single medium.

All regional and national advertisers and most large local advertisers deal with media through advertising agencies.

When an advertiser does not pay for advertising time but only for the number of items sold in direct response to a commercial, this is called a

Under-the-table payoffs by recording company representatives to disc jockeys for putting their music on the air is called

Describe the factors influencing advertising rates.

Typically stations divide their time into specific dayparts with different prices for each, and these divisions are called time classes.

Which of the following most closely describes the traditional fee structure when an affiliate s station airs programs from one of the Big Three networks?

The variable affecting the price of broadcast time that has the greatest overall effect on advertising rates is the day of the week a spot appears.

Describe economic conditions affecting the sales and prices of media outlets and program services.

The compensation provided by broadcast television networks to their affiliate stations accounts for approximately __________ percent of their gross revenues.

The advantage of using CPM is that it

While major television stations may serve an entire metropolitan area, most large cities are divided into several cable franchise areas.