Chapter 15 Media Planning: Print, Television, and Radio

Which Media: Print, Television or Radio? Great ads will fail if the media chosen do not reach the right audiences. Newspapers and magazines have inherent advantages and disadvantages. Broadcast media, TV and radio, also have inherent advantages and disadvantages. Chapter 14: Media Planning 2

Print Media Newspapers $50.4 billion spent on newspaper ads in 2001 Ideal for reaching narrow geographic area Facing circulation declines Chapter 15: Print, Broadcast 3

Newspaper Advantages Reach over 50% of households Excellent medium for local markets Timeliness Creative opportunities Credibility Audience interest Cost Chapter 15: Print, Broadcast 4

Newspaper Disadvantages Limited segmentation Creative constraints Cluttered environment Short life Chapter 15: Print, Broadcast 5

Types of Newspapers Target Audience Geographic coverage General Population Business Ethnic Geographic coverage Metropolitan area State National Frequency of Publication Daily Weekly Chapter 15: Print, Broadcast 6

Categories of Newspaper Advertising Display Advertising Display advertising Co-op advertising Inserts Preprinted insert Free-standing insert Classified Advertising Chapter 15: Print, Broadcast 7

Costs and Buying Procedures for Newspaper Ads Rate Cards Costs determined by: Size of ad Use of color Size of audience Extent of coverage Space is sold in column inches or SAU sizes Rates lower for ROP (run of paper) rather than preferred position or full position. Chapter 15: Print, Broadcast 8

Measuring Newspaper Audiences Circulation Paid circulation Controlled circulation Readership Chapter 15: Print, Broadcast 9

Future of Newspapers Survival of newspapers depends on ability to evolve In the future, newspapers will have to: Provide in-depth coverage of local issues Increase coverage of national and international events Provide follow-up reports of news Maintain role as local source for consumer information Become more mainstream in integrated brand promotions relating to new media Chapter 15: Print, Broadcast 10

Magazines Over $3 billion spent for advertising space in magazines annually Magazines show diversity as a media class Chapter 15: Print, Broadcast 11

Magazine Advantages and Disadvantages Audience selectivity Audience interest Creative opportunities Long life Disadvantages Limited reach and frequency Clutter Long lead times Cost Chapter 15: Print, Broadcast 12

Types of Magazines Consumer publications Business publications Men’s Journal, Women’s Day, Ebony Business publications American Family Physician, Forbes Farm publications Successful Farming, Progressive Farmer Chapter 15: Print, Broadcast 13

Costs and Buying Procedures for Magazines Costs determined by: Circulation Size of ad Use of color Position in publication Rates also vary for: Bleed page Gatefold ad Run-of-paper advertisement Preferred position Chapter 15: Print, Broadcast 14

Measuring Magazine Audiences Rates are based on guaranteed circulation Stated minimum number of copies that will be delivered to readers Publishers also estimate pass-along readership Estimates are verified by Audit Bureau of Circulations Chapter 15: Print, Broadcast 15

Future of Magazines Last 15 years a roller coaster for magazines Currently: revenues and ad pages are up Advertisers find magazines useful Continued success requires Adapting to new media options A robust environment for mergers and acquisitions in the industry Chapter 15: Print, Broadcast 16

Television For many TV defines what advertising is In 2001 advertisers spent $55 billion on television Many more billions are spent on commercial production Chapter 15: Print, Broadcast 17

Television Categories Network television Cable television Syndicated television Off-network syndication First-run syndication Barter syndication Local television Satellite and closed-circuit television Chapter 15: Print, Broadcast 18

Advantages and Disadvantages of Television Creative opportunities Coverage, reach, and repetition Cost per contact Audience selectivity Chapter 15: Print, Broadcast 19

Advantages and Disadvantages of Television Fleeting message High absolute cost Poor geographic selectivity Poor audience attitude and attentiveness Clutter Chapter 15: Print, Broadcast 20

Buying Procedures for Television Advertising Sponsorship Participation Spot advertising Choosing a daypart Morning Daytime Early fringe Prime-time access Prime time Late news Late fringe Chapter 15: Print, Broadcast 21

Measuring Television Audiences Source for network and local audience information: A. C. Nielsen Arbitron provides network information Chapter 15: Print, Broadcast 22

Weekday Television Dayparts Morning 7:00-9:00 a.m. Daytime 9:00 a.m.-4:30 p.m. Early Fringe 4:30 p.m.-7:30 p.m. Prime-Time Access 7:30 p.m.-8:00 p.m. Prime Time 8:00 p.m.-11:00 p.m. Chapter 15: Print, Broadcast 23 Late News 11:00-11:30 p.m. Late Fringe 11:30-1:00 a.m.

Measures of TV Audiences Television households Number of households in a market owning a television Households using television (HUT) Number of households tuned to a TV program in a time period Chapter 15: Print, Broadcast 24

Measures of TV Audiences Program Rating Percentage of TV households in a market that are tuned to a program during a time period Program rating = TV households tuned to a program Total TV households in the market Chapter 15: Print, Broadcast 25 X Files rating = 19,500,00 95,900,00 = 20 rating

Measures of TV Audiences Share of Audience Proportion of households using television (HUT) in a specific time period that are tuned to a program Program Share = TV households tuned to a program Total TV households using TV Chapter 15: Print, Broadcast 26 X Files share = 19,500,00 65,000,000 = 30 share

Future of Television Future appears exciting Interactive era will affect TV as an advertising medium Viewer participation Technology to transmit ads to a wide variety of new devices TV advertising likely to be sent via broadband and wireless Increase in direct broadcast by satellite HDTV Chapter 15: Print, Broadcast 27

Radio Radio categories Types of radio ads Radio networks Radio syndication AM versus FM Types of radio ads Local spot radio Network radio advertising National spot radio advertising Chapter 15: Print, Broadcast 28

Radio Advantages and Disadvantages Cost Reach and frequency Target audience selectivity Radio disadvantages Poor audience attentiveness Creative limitations Flexibility and timeliness Creative opportunities Chapter 15: Print, Broadcast 29 Fragmented audiences Chaotic buying procedures

Buying Procedures for Radio Advertising Ad time may be purchased from networks, syndications, or local radio stations About 80% is placed locally Radio has five basic dayparts Morning drive time Daytime Afternoon/evening drive time Nighttime Late night Chapter 15: Print, Broadcast 30

Measuring Radio Audiences Average quarter hour persons Average number of station listeners in a 15-minute segment Average quarter-hour share Percentage of total radio audience listening to a station during a specified 15-minute segment Average quarter-hour rating Audience during a quarter-hour expressed as a percentage of the measurement area population Cume Total number of different people who listen for at least five minutes in a 15-minute segment Chapter 15: Print, Broadcast 31

The Future of Radio Subscription radio Emerging technologies and new media Satellite radio Chapter 15: Print, Broadcast 32

Dayparts for Radio Chapter 15: Print, Broadcast 33

Three Scheduling Methods Continuity Flighting Pulsing Relation to text This material relates to material on pp. 314-316 and Figure 10-16 of the text. Summary Overview The primary objective of media scheduling is to time advertising efforts so that they will coincide with the highest potential buying periods. This slide shows the three scheduling methods available to the media planner: Continuity – continuous pattern of advertising; every day, every week, or every month Flighting – intermittent periods of advertising and no advertising Pulsing – combination of the first two; continuity is maintained but at certain periods advertising is increased. Use of this slide This slide can be used to explain the various scheduling options available to the advertiser. The optimal scheduling schedule can be affected by buying cycles. A continuity schedule can be appropriate with food products, household products and products consumed on an ongoing basis. A flighting schedule is well suited to seasonal or other products that are consumed mostly during certain time periods. A pulsing schedule may be used for products that have little sales variation from period to period, but might see some increase in certain times such as cold beverages in the hot summer months. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

C. Duplicated Reach of Both D. Unduplicated Reach of Both Reach and Frequency A. Reach of One Program Total market audience reached B. Reach of Two Programs Total market audience reached C. Duplicated Reach of Both Total reached with both shows D. Unduplicated Reach of Both Total reach less duplicate Relation to text This slide relates to material on pp. 317-318 and Figure 10-19 of the text. Summary Overview Since advertisers have budget constraints they are forced to make trade offs between reach and frequency. They must decide if they want the message seen and heard by more people (reach) or by fewer people more often (frequency). This slide shows a representation of various concepts associate with reach and frequency. Reach of One Program – total audience reached by one program Reach of Two Programs – total audience reached by two programs (including duplicated reach) Duplicated Reach of Both – duplicated reach only (those that were exposed more than once) Unduplicated Reach of Both – total reach less duplication (exposed only once) Use of this slide This slide can be used to introduce the concepts of reach and frequency and the terms duplicated reach and unduplicated reach. Both of these concepts are very important to the media planner. Unduplicated reach indicates potential new exposures, while duplicated reach provides an estimate of frequency. Most media schedules consider both reach and frequency. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Outdoor Pros and Cons Advantages Disadvantages Location Specific Sort Exposure Time Short Exposure Time High Repetition High Repetition Short Ads Short Ads Easily Noticed Easily Noticed Poor Image Poor Image Local Restrictions Relation to text This slide relates to material on pp. 330-331 and Figure 10-30 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using outdoor as an advertising medium. Some of the more noteworthy advantages are the fact that outdoor ads are location specific, easily noticed, and allow for high repetition. The major disadvantages are that outdoor has a short exposure time, can accommodate only short messages, and may have a poor image. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using outdoor advertising. Chapter 13 provides a more complete evaluation of outdoor media. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Direct Mail Pros and Cons Advantages Disadvantages High Selectivity High Selectivity High Cost Per Contact High Cost Per Contact Reader Controls Exposure Reader Controls Exposure Poor Image (Junk Mail) Poor Image (Junk Mail) High Information Content High Information Content Clutter Repeat Exposure Opportunities Repeat Exposure Opportunities Relation to text This slide relates to material on pp. 330-331 and Figure 10-30 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using direct mail as a medium. Some of the more noteworthy advantages of direct mail are that it is highly selective, the reader controls the exposure, and a great deal of information can be provided. The major disadvantages of direct mail are high cost-per-exposure, clutter, and poor image. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using direct mail as an advertising medium. Chapter 14 provides a more complete evaluation of direct marketing. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Internet Pros and Cons Advantages Disadvantages User Selects Product Information User Selects Product Information Limited Creative Capabilities Limited Creative Capabilities User Attention and Involvement User Attention and Involvement Websnarl (Crowded Access) Websnarl (Crowded Access) Interactive Relationship Interactive Relationship Technology Limitations Technology Limitations Direct Selling Potential Direct Selling Potential Few Valid Measurement Techniques Few Valid Measurement Techniques Flexible Message Platform Flexible Message Platform Relation to text This slide relates to material on pp. 330-331 and Figure 10-30 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using the Internet as an advertising medium. Some of the advantages of the Internet are the fact the user selects the information, is usually attentive and involved, and the medium is interactive. The major disadvantages of the Internet are limited creative capabilities, web snarl, and a lack of valid measurement techniques. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using the Internet as an advertising medium. Chapter 15 provides a more complete evaluation of the Internet. Limited Reach © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin