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

2. 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.
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3. 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.
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4. Pros of Newspapers Upscale audience of adults 35 and older
Flexibility in options
Ability to measure response using tracking techniques
High credibility with readers
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5. Flexible Newspaper Options
Color
Large-space ads
Small-space ads
Timely insertion schedules
Coupons
Selectivity in special sections
Targeted editions
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6. 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
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7. 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
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8. Trends in Newspaper Publishing
Circulation
Advertising revenues
Changing technology
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9. National Newspapers Published at least 5 days/week
Printed copies sold, distributed, and available nationwide
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10. 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
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11. 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
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12. 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
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13. Newspaper Association of America (NAA)
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14. Exhibit 10.3 Top Advertisers in Newspapers
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15. Exhibit 10.4 Most Believable and Trustworthy Ad Sources
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16. Newspaper Advertising Strategy
Full coverage of newspaper’s circulation
Zoned preprints
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17. Exhibit 10.5 Preprinted Insert
Less profitable than ROP advertising
Newspaper is simply delivery device
Shrinking “news hole” may change character of newspaper
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18. 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.
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19. 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
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20. 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%
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21. Local Display Advertising
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22. 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.
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23. Exhibit 10.8 SAUs
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24. 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.
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25. 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
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26. Comparing Costs Using CPM
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27. 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
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28. 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
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29. Newspaper-Distributed Magazine Supplements
Comics
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30. Ethnic and Foreign Language Press
Exhibit 10.2 The Spanish version of this ad can run in Spanish-language newspapers
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31. Weekly Newspapers
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32. 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?
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