Objectives: Identify media measurement techniques Explain techniques used to evaluate media Summarize how media costs are determined Explain promotional.

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Presentation transcript:

Objectives: Identify media measurement techniques Explain techniques used to evaluate media Summarize how media costs are determined Explain promotional budget methods Take out note paper immediately today

40-year Knowledge: Rates are always negotiable –ALWAYS!

(CPM) Cost per thousand media cost of exposing 1,000 readers to an advertising impression CPM makes it easy to calculate the value of one newspaper vs. another Also based on CPM. Internet ads are highly desirable – only pay for “click-throughs”

Calculated using a “Rate Card” Circulation determines the cost The following options are used to determine rates: Black & White versus Color Size of the Ad No Bleed versus Bleed (all the way to the edge) Location – inside cover, back cover, etc.

Cost is based upon ratings station receives and varies by time slot. Highest listening audience is order: 1)Morning drive time 6AM – 10 AM 2)Evening drive time 4 PM – 7 PM Same concept as radio except exponentially higher. With both TV and Radio, overnight offers very inexpensive options and thus the onset of infomercials. The onset of cable television boosted this significantly. Why? Market Segmentation!

Four Methods 1)Percentage of Sales 2)All you can afford 3)Follow the competition 4)Objective and Task What actually works best? Cost is a secondary factor