Chapter 10 Using Newspapers Kleppner’s Advertising Procedure, 18e Lane * King * Reichart

Learning Objectives_1 Describe the changing character and role of local and national newspapers in the marketing mix. Explain the marketing of newspapers to readers and advertisers. Identify the many categories of newspaper advertising. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Learning Objectives_2 Describe the newspaper advertising planning and buying process. Discuss the role of newspaper-distributed supplements. Discuss the role of ethically oriented newspapers and weeklies. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Pros of Newspapers Upscale audience of adults 35 and older Flexibility in options Ability to measure response using tracking techniques High credibility with readers Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Flexible Newspaper Options Color Large-space ads Small-space ads Timely insertion schedules Coupons Selectivity in special sections Targeted editions Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Cons of Newspapers High ratio of advertising content to news content Average reading time of less than 30 minutes Newspaper circulation has fallen Advertising costs have risen Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Characteristics On an average weekday, read by over 50% of adult population Readership reflects higher than average income and education Annual ad revenues are almost $50 billion 84% of ad revenues come from local advertisers Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Trends in Newspaper Publishing Circulation Advertising revenues Changing technology Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

National Newspapers Published at least 5 days/week Printed copies sold, distributed, and available nationwide Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 10.2 Top U.S. Daily Newspapers by Circulation USA Today Wall Street Journal The New York Times Los Angeles Times The Washington Post Daily News New York Post Chicago Tribune Houston Chronicle The Arizona Republic The Denver Post Newsday The Dallas Morning News Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Marketing Newspapers to Readers Maintain good circulation numbers Keep independent from marketing departments Go after opportunities in national advertising View website as a distinct product Market to new audience segments Invest in research and explore ways to make the Internet site complement the information in the newspaper Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Marketing Newspapers to Advertisers Provide information about readership and paid circulation Utilize the Newspaper Association of America (NAA) to provide advertisers with a database of which newspapers provide special editions, targeted inserts, and other options Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Newspaper Association of America (NAA) Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 10.3 Top Advertisers in Newspapers Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 10.4 Most Believable and Trustworthy Ad Sources Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Newspaper Advertising Strategy Full coverage of newspaper’s circulation Zoned preprints Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 10.5 Preprinted Insert Less profitable than ROP advertising Newspaper is simply delivery device Shrinking “news hole” may change character of newspaper Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Zoning Zoning is the newspaper practice of offering advertisers partial coverage of a market, often accomplished with weekly inserts distributed to certain sections of that market. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Total Market Coverage Weekly delivery of a nonsubscriber supplement carrying mostly advertisements Using newspaper-supported direct mail to nonsubscription Delivering the newspaper free to all households once a week Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Categories of Newspaper Advertising Classified advertising is found in columns so labeled, and published in sections of a newspaper or magazine that are set aside for certain classes of goods or services Display is all the nonclassified advertising in a newspaper Type % of Total Classified 26.4% Local 49.6% National 15.8% Online 8.2% Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Local Display Advertising Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

National Newspaper Advertising Approximately 16% of all newspaper advertising revenue National advertisers rely on Standard Advertising Units (SAU) to place ads in different newspapers. National advertisers usually pay a price premium over local advertisers. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 10.8 SAUs Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Cooperative Advertising Cooperative advertising is joint promotion of a national advertiser (manufacturer) and a local retail outlet on behalf of the manufacturer’s product on sale in the retail store. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

The Rate Structure Flat rate: a uniform charge for space Open rate: the highest rate at which discounts are placed Bulk discounts: savings based on ad volume ROP and preferred position rates: savings or premiums based on ad location Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Comparing Costs Using CPM Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Space Contracts The short rate is the balance advertisers have to pay if they estimated that they would run more advertisements in a year than they did and entered a contract to pay at a favorable rate A rebate is the amount owed to an advertiser by a medium when the advertiser qualifies for a higher space discount Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Audit Bureau of Circulation (ABC) Reports Total paid circulation Amount of circulation in city zone, retail trading zone, and other areas Number of papers sold at newsstands Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Newspaper-Distributed Magazine Supplements Comics Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Ethnic and Foreign Language Press Exhibit 10.2 The Spanish version of this ad can run in Spanish-language newspapers Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Weekly Newspapers Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

For Discussion What has caused the erosion of local newspaper advertising bases? What are the primary advantages of newspaper magazine supplements? What are the two biggest problems facing newspapers seeking national advertising? Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall