Why should we advertise on CCTV?

Why do we advertise on CCTV?

Since the era of self-media, every consumer in the country has a microphone and everyone is a communicator. This media foundation, with its instant interactivity and autonomy, has significantly increased the breadth of personal media dissemination and brought about an unprecedented transformation in the media ecology.

Luo Zhenyu once said: "In the future, all industries will be media, and all content will be advertising." It has become more important than ever for companies to strive to become a communication-based organization.

In 2020, business owners found that 400 million of China's 1.4 billion population (according to the World Bank's standards, by 2020, China will become an upper-middle-income country.

By then, many consumers belonging to the mass consumer group will enter the new mainstream consumer group. The number of new mainstream consumer groups in China will reach 400 million) The mainstream consumer groups have been diverted and divided up by Internet media such as Weibo, WeChat, Douyin, Kuaishou, Xiaohongshu, Zhihu, Bilibili, Douban, QQ, Youku, iQiyi, Tudou, Taobao, Tmall, Suning.com, JD.com, Blog, DingTalk, Oasis, Pinduoduo, CCTV Video, Weishi, Didi, Meituan, LinkedIn, Baidu, 360, NetEase, and Sohu. In order to adapt to the trend of circle-based and socialized connections, every company's marketing department has to invest in connecting users and social marketing communications in each circle, becoming a de facto cultural media company.

It is costly to conquer closed social circles one by one, and it is becoming increasingly difficult to acquire effective customers. Consumers who have lost brand guidance are trapped in circles and communities.

Business is becoming increasingly difficult nowadays. How do we activate the needs of consumers? How do we stimulate and create market vitality? How do we effectively break through various circles? How do we help customers achieve their market goals?

The value of China Central Television’s advertising (CCTV-1 to CCTV-17 channels, hereinafter referred to as CCTV advertising ) is a manifestation of brand credibility capital.

Essentially, posting an advertisement on the CCTV platform is a third-party proof that an advertiser has brand compliance, demonstrated strength, and ownership.

The reason why CCTV advertisements are valuable is that the holders of CCTV advertisements after they are broadcast, that is, advertisers, can not only expand the consumer market, compete for market share, and conduct investment roadshows by leveraging the commanding heights of the CCTV platform, but also exert a transformative influence on consumers' purchasing decisions, and enjoy multiple rights and interests of communication and brand credibility endorsement, and obtain corresponding social status and economic benefits in return.

Similarly, with a certain amount of CCTV advertising, its advertising investors can obtain different degrees of intangible and tangible value in return.

The greater the coverage, reach and conversion rate of CCTV-1 to 17 channels of China Central Radio and Television, the higher the price of advertising time will be.

In general, the value of CCTV advertising is mainly reflected in the platform's credibility, channel status, coverage of each broadcast, screen opening rate, viewing rate and expectations for advertiser growth.

If the comprehensive coverage reaches a low opening screen viewing rate, advertisers' willingness to invest will gradually decrease; if the comprehensive coverage reaches a higher opening screen viewing rate, the corresponding advertising time value will be higher.

If the advertising effect is very good, the advertiser's investment confidence will continue to expand, the development benefits will continue to improve, and the promotion will be able to continue for a long time.

The prices of CCTV advertisements can be divided into three types: channel program time period publication price, customized planning price and market price.

The channel rate price of CCTV advertising refers to the actual communication value represented by each channel, column and time period determined by the General Manager's Office of China Media Group (formerly CCTV Advertising Management Center).

From the data, CCTV's subscription price should be consistent with the value of the advertiser's investment amount. However, in order to minimize the cost of funds, advertisers calculate the communication value based on the actual sales transaction price when placing advertisements. And when placing advertisements, the transaction price is generally lower than the actual publication price.

Therefore, the transaction price of CCTV advertising will not be consistent with the price set by the advertising center.

Customized planning price

Here I will use some superficial views to mainly explain the underlying logic of planning pricing and market price, as a starting point for discussion.

When the standard prices for each CCTV channel are set, the Advertising Center, from the dual perspectives of social and economic benefits, does not follow the standard prices for advertisers of large-scale advertising units. Instead, it plans a major project, such as the "National Brand Plan" and the "Brand Power Project", etc., and plans, creates, and designs a comprehensive price for trading. This price is called the planning price for a customized communication project.

Market Price

The market price of CCTV advertising refers to the transaction price reached by both parties during the transaction of CCTV advertising. The advertising price usually refers to the market price.

The market price of CCTV advertising directly reflects the market situation of small and medium-sized enterprises in China's economic development, and is the basis for small and medium-sized enterprises to log on to CCTV for publicity. Due to the influence of many factors, the market price of CCTV advertising is in constant change, increasing by about 5% each year. The advertising transaction price of each CCTV channel is a concentrated reflection of the media market value, so this price is also called the market price.

The market price of CCTV advertising by small, medium and micro enterprises actually reflects investors' expectations for the future of their own enterprises. Why do the prices of CCTV advertisements in the market change? The reason is simple. It is due to the different expected returns of advertisers from CCTV advertisements.

For example, advertiser A believes that by placing CCTV advertisements for investment promotion activities, the company plans to carry out a large-scale nationwide investment promotion campaign starting from the next year, and the campaign will continue for a long time. Therefore, he is willing to pay a higher price to place advertisements in better time periods and better channels. Advertiser B does not have any expectation of attracting investment. As long as he thinks CCTV advertising can increase user trust, he will naturally be happy to entrust a third party to plan and place CCTV advertising at a budget price.

Advertiser C believes that under the current macroeconomic situation, the average profit margin due to industry competition will not be 10%, but only 5%, and will remain at 5% for a long time. That is, if he invests in CCTV advertising to build brand reputation, a product worth 1 yuan will be sold at a premium price of 1.05 yuan a year later, so he is willing to spend a certain budget on CCTV advertising.

Therefore, the price of CCTV advertising is the result of the combined effect of advertisers' profitability and the social macroeconomic situation.

Most of the brands of companies on the verge of bankruptcy will be worthless, while the brands of sunrise industries will continue to rise, and the expected returns will boost the value of CCTV advertising. All of the above situations will indirectly affect the value of CCTV advertising by influencing the above two factors.

Calculation of advertising price

1. CPA advertising calculation method - display effect cost calculation method

There is a fundamental difference between consumers being willing to pay for an action and clicking on an ad. Clicking on TV channels or watching advertisements on PC or mobile web pages is limited to the cognitive level and does not involve direct transactions with the advertiser's business goals.

The mentality of this type of advertiser is that "results mean money", and they have little confidence in the company's long-term development and their own trademark assets, and are unwilling to plan a fixed amount of time and pay a fixed amount of money for advertising every year.

Advertisers focus on the direct return on communication effectiveness. Consumer paid actions mean that the user actually purchased the advertiser's business objectives. What do these actions mean? For wine companies, purchasing the brand of wine will increase profits; for APP, downloads are achieved and the user base is increased; for food, Taobao orders are realized...

If there is no action, even if the user says "I want to buy your product" hundreds of times, it cannot constitute the condition for paying for the advertisement. There is no effect and the advertising platform cannot receive a penny of advertising fees. Of course, this kind of advertising needs to be carefully planned and customized, and requires production funds, which are extremely costly. The advertiser pays a high price for every effective action. This advertising purpose is called effective communication.

2. CPM advertising calculation method - accurate display cost calculation method

The mentality of this type of advertiser is that "precision is money", they have high confidence in the long-term development of the company and their own trademark assets, and are willing to plan a fixed amount of time and pay a fixed amount of money for advertising every year.

The net value of CCTV advertising is also known as book value, or advertising assets in each time period. It is the net asset value of advertising broadcasts in each channel time period calculated using accounting statistics methods.

The calculation method is to use the net assets of the communication (including CCTV platform status, channel communication power, coverage, thousand-person delivery rate, etc. CCTV CPM TV advertising display occupies the entire screen, and users cannot help but watch it.

The information on a page on the Internet is very complex, and there may be more than a dozen ads displayed at the same time. The ratio of displayed ads to seen ads is very different. Therefore, with the CPC evaluation and charging method, displayed ads are not considered effective ads. The fees are only calculated when users click on the ads.

Divide by the total cost of delivery, and you get the net cost of each communication. This advertising purpose is called precision communication.

3. CPD advertising calculation method - breaking circle display calculation method

Advertisers’ strategic planning leverages the CCTV platform to implement the tactic of “breaking and penetrating all circles”. This kind of investment belongs to the "breaking circle action", just like the monthly subscription fee we pay for broadband, which can be paid annually, quarterly, monthly, weekly or daily.

The mentality of this type of advertiser is that "height means money". They are extremely confident in the long-term development of the company and their own trademark assets, and are willing to plan a fixed time every year to pay a fixed amount of money.

The purpose is to occupy an advertising space on a national television station for a long time, leverage the power of the national platform to elevate the regional brand, and shape the image of industry leaders, class identity, and status in the whole society. The brand image is enough to penetrate every solidified circle and snobbish consumer.

Use high-quality products to lead the trend of the times, influence social values, focus on occupying the minds of users, and guide and change the purchasing psychology of users. This kind of advertising purpose is called national platform brand endorsement

Author: Daily Hot Search List