Media Planning: Newspapers, Magazines, Television, and Radio 13 1 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The Present and Future World of “Traditional” Mass Media Advertisers believe that digital media offer more cost effective way to reach target audiences. Digital/interactive media now about $30 billion a year, about 14% of total worldwide media spending—up from 4% in 2004. Traditional mass media—particularly newspapers are losing placement to digital media Television has been hit by the shift to digital, but is responding with partnerships with digital organizations. 13

Firms like Delta are combining both print and digital media for national campaigns. Courtesy, Delta Air Lines

Which Media: Strategic Planning Considerations Advertisers need media to reach target audiences. Advertisers’ media choices result in billions of dollars of revenue to media companies. Print media, newspapers and magazines, have inherent advantages and disadvantages. Broadcast media, TV and radio, also have inherent advantages and disadvantages. 13

Newspaper Advantages Reach is declining—but 100 million households in U.S. still read a daily paper Geographic selectivity is good Timeliness Creative opportunities exist but are limited Credibility is high Audience interest and demographics High interest and upscale demographics Cost is lower than other print media 13

Newspaper Disadvantages Limited segmentation Creative constraints Poor reproduction Generally and particularly color Cluttered environment Short life 13

Categories of Newspaper Advertising Display Advertising Co-op advertising Inserts Preprinted insert Free-standing insert Classified Advertising 13

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. 13

Measuring Newspaper Audiences Circulation Paid circulation Controlled circulation Readership Circulation X number of readers 13

 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— “hyper-localism” Pursue a pay-for-inquiry advertising model Provide follow-up reports of news Maintain role as local source for consumer information Provide more “eBay” like classified ads Use bloggers to cover local events Become more mainstream in integrated brand promotions through digital media 13

Magazines Magazine revenue is down sharply Several big name casualties—e.g., Gourmet Magazine Shift to “digital” is in progress 13

Magazine Advantages and Disadvantages Audience selectivity Audience interest Creative opportunities Long life Disadvantages Limited reach and frequency Clutter Long lead times Cost 13

Magazines offer specialized content which attracts specialized advertising Courtesy of Escort Inc. Used with permission

Categories of Magazines Consumer publications Men’s Journal, Women’s Day, Ebony Business publications American Family Physician, Forbes Farm publications Successful Farming, Progressive Farmer 13

Costs and Buying Procedures for Magazines Costs determined by: Circulation Size of ad Use of color Position in publication Rates also vary for: Circulation Size of ad Use of color Position in publication 13

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 13

Future of Magazines Last 20 years has been a roller coaster for magazines Currently: revenues and ad pages are up despite some publication casualties Advertisers find magazines useful for the selectivity and color capabilities Continued success related to: Adapting to new media options E-readers and e-subscriptions Some publications turning to e-commerce Some marketers successfully publishing own magazines 13

Television For many TV defines what advertising is—audio, visual, color Advertisers spent about $65 billion on television Many more billions are spent on commercial production 13

Television Categories Network television Cable television Video on demand capability Syndicated television Off-network syndication First-run syndication Barter syndication Local television Satellite and closed-circuit television Web/iPod/Smartphone TV Over 100 billion video streams annually iPad emerging as viewing device 13

Advantages of Television Creative opportunities Coverage, reach, and repetition Cost per contact Audience selectivity Narrowcasting 13

Disadvantages of Television Fleeting message High absolute cost Poor geographic selectivity Poor audience attitude and attentiveness DVR/TiVo ad avoidance Clutter 13

Buying Procedures for Television Advertising Sponsorship Participation Spot advertising Choosing a day-part: Morning Daytime Early fringe Prime-time access Prime time Late news Late fringe 13

Measuring Television Audiences Source for network and local audience information: A. C. Nielsen Arbitron provides network information Controversy in measurement DVR effect on “commercial” viewership vs. program viewership 13

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 13

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 CSI Rating = 19,500,00 95,900,00 = 20 Rating 13

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 CSI Miami = 19,500,00 65,000,00 = 30 Share 13

Controversy in Television Ratings DVR ad skipping has not been fully accounted for Advertisers do not want to pay for “skipped” ads Nielsen has come up with new measurement tools to account for skipping 13

Future of Television Future appears exciting Interactive era will affect TV as an advertising medium DVRs increase viewer satisfaction but may compromise advertising Increase in direct broadcast by satellite HDTV increases viewer satisfaction Massive consolidation of media companies into many TV categories 13

Radio Radio categories Radio networks Radio syndication AM versus FM Satellite radio Internet/mobile radio Smartphone access Types of radio ads Local spot radio Network radio advertising National spot radio advertising 13

Satellite radio is growing rapidly in popularity—bad news for advertisers? Sirius Satellite Radio. Creative by Crispin, Porter & Bogusky, Miami

Radio Advantages and Disadvantages Cost Reach and frequency Target audience selectivity Flexibility Creative opportunities (theater of the mind) Disadvantages Poor audience attentiveness Creative limitations Fragmented audiences Chaotic buying procedures 13

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 RADAR (Radio’s All Dimension Audience Research) Collects data 2X per year based on interviews with radio listeners 13

The Future of Radio Effect of subscription radio/satellite Emerging technologies and new media—Internet, mobile, HD radio Consolidation of stations and broadcasting 13

Check Your Understanding A company imports exotic herbs and spices for cooking and wants to use television to reach a narrowly defined target market of people interested in the culinary arts. The company would be best advised to use cable television. network television. off-network syndicated television. first-run syndicated television. 13

Check Your Understanding The owners of Kelly & Kallihan Funeral Home want their ads to appear alongside the obituary notices in the newspaper. What kind of space should they buy? run-of-paper preferred position run-of-press full position 13