Advertising Media

Advertising & Its Purpose n Advertising uses a set format that is defined in terms of time or space. n Main purpose-to present its message so well that the customer will buy the product or accept the idea presented n Two types: promotional and institutional

Promotional vs. Institutional n Promotional –designed to increase sales n Purposes –creating an interest in products –introducing new products & businesses –explaining a product –supporting personal selling –creating new markets n Institutional –attempts to create a favorable impression and goodwill for a business or organization n Purposes –presenting information about a company’s role in the community –important public issues –topics of general interest(environment)

Promotional Institutional

Media- means, agencies, or instruments used to convey messages n 3 general categories: –print, broadcast, and specialty n Print Media (everything from newspapers & magazines to direct mail) –done in written form –oldest and most effective type of advertising –6 types NewspaperOutdoor MagazineDirectory Direct-MailTransit

Newspaper Advertising n Main form of print media n 4 advantages –large readership & high level of involvement –Known circulation –Low cost –Timely & changed up to 24 hrs. prior to print n 3 limitations –Wasted circulation –Limited life of advertisements –Poor quality of reproduction

Magazine Advertising n Divided into local, regional, and national weeklies, monthlies, and quarterlies. n 4 Advantages –Able to target audience-known circulation –Often read more slowly & thoroughly –Higher print quality –Kept for longer period of time n 3 Limitations –Less mass appeal within a geographical area –More expensive –Deadline is usually months prior to printing

Direct Mail Advertising n Sent by businesses directly through mail to prospective customers n 5 advantages –Highly selective –Flexible timing, limited viewing by competition –Wide choices of sizes and formats –Can use incentives--coupons, etc. –Can actually use it to make the sale n 3 limitations –Low level of response –Increasing costs(postage, mailing lists) –Considered junk mail & discarded

Outdoor Advertising n Two types of outdoor signs 1.nonstandardized-used at place of business 2.standardized-purchased from outdoor advertising companies, placed near highly traveled roads n Three types of standardized –Posters-preprinted sheets put up like wallpaper-changed 3-4 times a year –Painted bulletins-changed 1-2 a year –Spectaculars-use lights or moving parts n More restrictions being put on recently

Outdoor Advertising n 4 Advantages –Highly visible –relatively inexpensive –easy repetition of a message that works 24 hrs. –can be geographically tailored to reach market n 3 limitations –Short viewing time=short message –Make-up of audience largely unknown –Increasing government regulations

Directory Advertising n Placed in alphabetical listings of households & businesses(Yellow Pages) n 3 Advantages –relatively inexpensive –Found in 98% of all households –Usually kept for 1 year or longer n 2 Limitations –printed yearly, unable to adjust prices, message –Waste if not reaching intended market

Transit Advertising n Uses public transportation facilities- inside & outside of vehicles & stations or stops n 3 Advantages –Reaches wide & captive audience –economical –defined market (usually urban) n 3 Limitations –Often unavailable in smaller towns –Subject to defacement –Restricted to certain travel destinations

Broadcast Media n Includes radio & television Not only for entertainment but also information n Approximately 10,000 radio stations, 1200 commercial television stations, & cable stations n High availability & popularity, but high cost

Radio Advertising n Ability to reach 96% of people over age 12 in any given week makes it extremely popular n Best times for radio advertising are mornings and early afternoon or evening when people are driving to and from work(prime time) n Radio advertisements are presented in 15-, 30-, & 60-second time slots

Radio Advertisements n 3 Advantages –Can select audience by advertising on stations targeting that market –More flexible than print b/c ads can be easily changed –Mobile medium n 3 Limitations –Short life span –Several stations often compete for the same audience –Lack of visual involvement--easily distracted

Television Advertising n Can communicate message with sound, action, and color. n Prime time is 7- 11pm when millions of viewers are watching n Infomercial-30 minute commercial, viewers order merchandise through mail or phone

Television Advertising n 5 Advantages –Can pull together all elements need to create a creative message –More inclined to believe what we see than read –Seems more personal and effective b/c it is in your home –Mass audience--targeted programming –Can be adapted to take advantage of holidays, sporting events, etc.

Television Advertising n 3 Limitations –Highest production costs of any media & high $ cost for time used, keeps many smaller companies from advertising –Audience size not assured –Many viewers consider television ads to be a nuisance--channel surfing

Online Advertising n Uses either or www n Still smallest form of media spending n trillion impressions-single appearance of an ad on a computer user’s screen –Electronic direct-mail advertising Pre-qualified groups Enables companies to track customers Cost-effective Easy to update and personalize

Online Advertising n Banners –Most used –Rectangular and found in top, bottom or sides of webpage. Button Ad n Pop-up ads –TV-like spots that pop- up between Web pages and stream video and sound. –Viewer must click through ad to navigate site n Bold colors, top of page placement, animation, calls to action, and limited frequency of exposure help increase the number of click-throughs. n Response rate of 1%, for every 100 banner ads, only 1 in 100 users click on ad.

Specialty Media n Relatively useful, inexpensive, items with the advertiser’s name printed on them n No obligation to receiving and keeping items n To be successful they must be practical & likely to be placed in places where they will be seen n Usually carry name, address, and message of business n 2 Limitations –distribution limited –items given to non-target audience members

Other Advertising Media n Sports arena billboards, movie theater & home video commercials, hot air balloons and blimps, skywriting, & airplane pulled advertising banners n In-store techniques-- electronic shelf ads, cart advertising, instant coupon machines, infomercial displays

Media Costs n Costs vary not only among different media but also among geographic location n Look up rates in the publications of the Standard Rate and Data Service n Also use Audit Bureau of Circulation(ABC) to verify circulation figures

Newspaper Rates n Classified Ad or a Display Ad n Classified-grouped together, pay by the word n Display-creative, use headline, copy, etc., cost based on amount of space used n Quoted based on column inch (1 column wide, 1 inch deep) n Run-of-paper rate-newspaper chooses where ad is run--higher rate if advertiser chooses where it is run

Newspaper Rates n Color more expensive than black and white n Frequency of advertising lowers rate charged--cheaper rates the more frequently advertised n Open rate(noncontract rate) charged to businesses who advertise infrequently, basic charge for a minimum amount of space

Newspaper Rates n Contract rates-given to those businesses who advertise more often, discounted rate, agree to advertise for a certain period of time with a guaranteed number of column inches n CPM-cost per thousand rate-media cost of exposing 1,000 readers to an ad –CPM=cost of ad x 1000/circulation

Magazine Rates n Based on circulation, quality of readership, production technique n bleed-ads printed to edge of page leaving no white border(15-20% extra for bleeds) n black-and-white rates-lowest rates n color rates-every color added increases cost, four color ads most expensive n premium position-first page, etc. more expensive n frequency discounts-rate per issue decreases as frequency increases

Magazine Rates n Commission-percentage paid to advertising agency who placed the ad (15%) n cash discount-given if bill paid earlier than due (2/10 net 30)

Radio Rates n Network radio advertising-a broadcast from a studio to all affiliated radio stations throughout the country n National spot radio advertising-used by national firms to advertise on a local station-by-station basis n Local radio advertising-done by a local business for its target market

Television Rates n Prime-time hours(7-11pm) known as Class AA time n Rates charged depend on time slot- Class A, B, C and D n Can also arrange package deal with television media representative