1. Section 19.1 Advertising Media Chapter 19 advertising Section 19.2 Media Rates

2. CONNECT What effective advertisements have you seen recently? Advertising Media Section 19.1

3. Explain the concept and purpose of advertising in the promotional mix. Identify the different types of advertising media. Discuss the planning and selection of media. Section 19.1 Advertising Media advertising promotional advertising institutional advertising media print media transit advertising broadcast media Internet advertising podcast blogs specialty media media planning

4. Advertising is an important element of promotion. Businesses advertise to promote their ideas, goods, and services. Advertising Media Section 19.1

5. Advertising Media Section 19.1 The average city dweller is exposed to more than 3,000 advertising messages every day.

6. Advertising Media Getting Ready to Sell Section 19.1 promotional advertising Advertising designed to increase sales. Promotional Advertising Institutional Advertising institutional advertising Advertising designed to create a favorable image for a company and foster goodwill in the marketplace. advertising A form of nonpersonal promotion in which companies pay to promote ideas, goods, or services in a variety of media outlets.

7. Advertising Media Getting Ready to Sell Section 19.1 Mass advertising enables companies to reach large numbers of people with their messages.

8. Advertising Media Types of Media Section 19.1 media The agencies, means, or instruments used to convey messages to the public. What is media?

9. Advertising Media Types of Media Section 19.1 print media Advertising in newspapers, magazines, direct mail, signs, and billboards. Print Media Newspaper Advertising Magazine Advertising Direct-Mail Advertising Directory Advertising Outdoor Advertising Transit Advertising transit advertising Advertisement seen on public transportation.

10. Advertising Media Types of Media Section 19.1 Broadcast Media Television AdvertisingRadio Advertising Companies can advertise nationally on network television or on local television stations. Radio advertisers can carefully target their audiences when they select the station on which to broadcast their ads.

11. Advertising Media Types of Media Section 19.1 Internet advertising The form of advertising that uses either e-mail or the World Wide Web. Opt-In E-Mail Ads Banner and Search Engine Ads Rich-Media and Video Ads Social-Media Advertising Internet Advertising PodastsBlogs podcast Any brief digital broadcast that includes audio, images, and video delivered separately or in combination. blog Personal Web site where an individual shares thoughts, pictures, and comments with visitors.

12. Advertising Media Types of Media Section 19.1 specialty media Relatively inexpensive useful items featuring an advertiser’s name or logo; also called giveaways or advertising specialties. BooksCalendarsMagnetsPens Specialty Media PencilsShirtsCapsBags

13. Advertising Media Types of Media Section 19.1 Digital Billboards On-Screen Movie Theater Ads Bathroom Stalls iPods ® Other Advertising Media Cell PhonesLaptopsVideo GamesVlogs Web LogsRSS News FeedsTwitter ® Facebook ®

14. Advertising Media Media Planning and Selection Section 19.1 Media Planning and Selection Tips Accomplish a marketing objective Use media-planning software Use media-cost data Use audience information media planning The process of selecting the appropriate advertising media and deciding the time or space in which ads should appear to accomplish a marketing objective.

15. Advertising Media Determine which form of advertising would most likely be used by a small company with a limited budget. Section 19.1 1. Print advertising in the form of newspaper ads would likely be the best value for a small company with a limited budget. Through newspaper ads, the company could target local customers or those with interests that might connect them to the company. Section 19.1

16. Advertising Media Identify potential drawbacks with using the two types of broadcast media. Section 19.1 2. Drawbacks for television advertising include: high production costs, and viewers often change stations or leave the room during commercials, or use devices that allow them to view commercial-free programming. Drawbacks for radio advertising include: goods or services can only be described, not seen, and radio ads have a short life span. Section 19.1

17. Advertising Media Connect the practice of media planning to the concept of market segmentation. Section 19.1 3. Market segmentation–the process of classifying people who form a given market into even smaller groups–is a part of media planning. The demographics and lifestyles of the target audience must be considered during media planning. Section 19.1

18. PREDICT What financial and design factors do advertisers have to consider? Media Rates Section 19.2

19. Identify media measurement techniques. Explain techniques used to evaluate media. Summarize how media costs are determined. Explain promotional budget methods. Section 19.2 Media Rates audience frequency impression cost per thousand (CPM)

20. Businesses need to reach as many targeted customers as possible. It is important to calculate costs and measure media effectiveness to reach a potential audience. Media Rates Section 19.2

21. Media Rates Section 19.2 Media Rates Time (30-second TV ad) ACNielsen Media Research verifies TV viewers Arbitron Company verifies radio listeners Space (half-page magazine ad) Audit Bureau of Circulations (ABC) verifies newspaper and magazine circulation Standard Rate and Data Service lists ad rates for newspaper and magazine

22. Media Rates Section 19.2 Media Measurement Key Terms in Media Measurement Audience Frequency Cost per Thousand (CPM) audience The number of homes or people exposed to an ad. frequency The number of times an audience sees or hears an advertisement. impression A single exposure to an advertising message. cost per thousand (CPM) The media-measurement cost of exposing 1,000 readers or viewers to an advertising impression. Impression

23. Media Rates Section 19.2 Media Measurement To compare media rates, a formula for cost per thousand (CPM) is used. CPM is the media cost of exposing 1,000 readers or viewers to an ad. CPM = cost of the ad x 1,000 total audience size Ex: Should COVERGIRL choose to place a full-page ad in Glamour, Vogue or People? CPM would help answer that question.

24. Media Rates Section 19.2 Factors Affecting Print Media Rates  Run-Of-Press: allows a publisher to choose where to run the ad. Otherwise, an additional fee is charged for premium positions. (Ex. the most expensive locations in a magazine are back cover, inside front cover, inside back cover.  Open Rate: the basic charge for the minimum space at full price. Businesses that advertise regularly often receive frequency contract rates and/or cash discounts.

25. Media Rates Section 19.2 Factors Affecting Print Media Rates  Bleed ads are printed to the very edge of the page. They are more expensive because they require special printing and paper trimming.  Color rates are higher than black-and-white. Extra fees are charged for each additional color, and full-color (or four-color) is the most expensive. Quiz: What are the four printer’s colors? (Hint: CMYK)  Other Factors: Circulation Size, Quality of Readership, Production Technique, and Timing

26. Media Rates Section 19.2 Online Advertising Rates Online advertising rates are based upon the type of format desired—banner ads, rich media ads, pop- up, etc.—and vary based on the volume of page views, and frequency of ad placement.

27. Media Rates Section 19.2 Radio Rates: Classifications There are five classifications of radio airtimes, listed from most expensive to least expensive: Class AA: Morning drive time: 6 a.m. to 10 a.m. Class A: Evening drive time: 4 p.m. to 7 p.m. Class B: Home worker time: 10 a.m. to 4 p.m. Class C: Evening time: 7 p.m. to Midnight Class D: Nighttime: Midnight to 6 a.m. Quiz: Why is Class AA more expensive than any other time of day?

28. Media Rates Section 19.2 Radio Rates: Types of Advertising Buys 1. Network radio advertising is a broadcast from a studio to all affiliated radio stations throughout the country, allowing an advertiser to reach several markets through sponsorship of a special program, activity, or radio personality.

29. Media Rates Section 19.2 Radio Rates: Types of Advertising Buys 2. National spot radio advertising is used by national firms to advertise on a local station-by- station basis. It is used to target select markets in the country. 3. Local radio advertising is done by a local business for its target market. It is limited to a specific geographical area.

30. Media Rates Section 19.2 Television Rates Advertising rates for television vary by: -Time of day -Markets purchased (local vs. national) -Audience Size It is more expensive to advertise during the “prime time” hours of 7 to 10 p.m. because of increased viewership. 2011-2012 LOCAL AD RATES FOR FOX 2 (ST. LOUIS MARKET ONLY) Wed 7-9p American Idol $8000 Tues 7-8p Glee $3500 M-F 5-6a Fox 2 News @ 5am $ 300 M-F 6-9a Fox 2 News $ 800 M-F 5-630p Fox 2 News $ 900 M-F 9-10p Fox 2 News @ 9pm $1200

31. Media Rates Section 19.2 Television Rates Will a prime-time television slot always guarantee an advertiser the best results in selling a product? Why or why not?

32. Media Rates Section 19.2 Promotional Budget Promotional Budgeting Methods

33. Media Rates Section 19.2 Determining a Promotional Budget Promotional Budgeting Methods BEST Method!

34. Media Rates Contrast possible ad rates for a small weekly newspaper with a large daily newspaper. Section 19.2 1. With all things except circulation being equal, comparing rates using cost per thousand (CPM) measurement, it would cost less to advertise in a large daily newspaper. For example: Cost of ad for both papers = $500. Circulation for small weekly newspaper = 10,000. Circulation for large daily = 200,000. Calculate: small weekly newspaper ($500 x 1,000/10,000 = $50 per 1,000 readers. Large daily newspaper ($500 x 1,000/200,000 = $2.50) Section 19.2

35. Media Rates Explain how CPM determines the rates television and radio stations charge for advertising. Section 19.2 2. CPM is the cost of exposing 1,000 viewers or listeners to an advertising impression. For television and radio, as the number of viewers or listeners increases, the cost of the advertising increases, so the CPM increases. Section 19.2

36. Media Rates Suggest a reason that following the competition is not the best model for creating a promotional budget. Section 19.2 3. Possible answer: The competition’s goals may be very different than your goals. Following the competition’s advertising will likely not help you reach your goals. Section 19.2

37. End of Section 19.1 Advertising Media Chapter 19 advertising Section 19.2 Media Rates