1. Print Media: Newspapers and Magazines
CHAPTER 8
Print Media: Newspapers and Magazines
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2. Learning Objectives
Identify the classifications of newspapers and magazines available to Canadian advertisers
Explain the advantages and disadvantages of newspapers and magazines as advertising media
Assess the considerations and procedures involved in buying newspaper and magazine space
Continued…
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3. Learning Objectives (cont.)
Understand the basic terminology used in newspaper and magazine advertising
Assess the influence of technology on the print media
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4. Newspapers in Canada
134 daily newspapers with an average daily circulation (number of issues sold) of 6.4 million copies.
1100 community newspapers (generally smaller-circulation) published once a week and directed at a local audience.
Newspapers rank second to TV in Canada, controlling 15% of the net advertising revenues.
Demographic profile of community newspaper closely matches that of the entire population.
There are currently 134 daily newspapers operating in Canada with a total daily circulation of 6.4 million copies. (circulation = number of issues sold) The Toronto Star is the largest single daily newspaper in Canada.
Newspapers rank second to television in Canada, controlling 15 percent of net revenues generated.
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5. Newspaper Formats Canadian newspapers are published in two formats:
Tabloids - Sold flat with only a vertical centerfold (e.g., Toronto Sun, Vancouver Province)
Broadsheets - Larger and folded horizontally once (e.g., Globe and Mail, Vancouver Sun)
Tabloids - flat with only a vertical centrefold
Broadsheets - larger papers folded horizontally in the middle
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6. Newspaper Readership
NADbank Inc. (industry sponsored measurement organization) updates data annually by conducting a detailed survey among Canadian adults.
Newspaper reach 51% of Canadian adults, and increases marginally on weekends
Readership increases as person’s level of income and education increases
Migration to online editions of newspaper
Readership by region and by age does not vary that much but there is a tendency for readership to increase as a person’s level of education and income increases.
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7. Types of Newspaper Advertising
Two broad forms of newspaper advertising are:
Display
Includes general/national advertising and retail advertising
Classified advertising
Another form of newspaper advertising is:
Pre-printed Inserts (retail flyer advertising)
Editorial content is arranged around the advertising
There are two broad forms of advertising: display (ads appearing anywhere but in the classifieds), and classified advertising. Display advertising includes general, or national, advertising (ads for products and services sold nationally), and retail advertising (all forms of retail advertising sold locally). Newspapers also generate revenues through the distribution of preprinted inserts (supplements or free-standing inserts).
Advertising accounts for roughly 60% of newspaper space.
There are two broad forms of advertising: display and classified:
Display - advertising in any part of the publication by retailers or national advertisers.
Classified - one of the most read sections of a newspaper. (buy, sell, rent, obtain, etc.)
Additional revenues are generated from pre-printed inserts.
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8. Advantages & Disadvantages of Newspaper Advertising
Geographic selectivity
Coverage and Reach
Engagement
Flexibility
Creative & Merchandising Considerations
Editorial Support
Suitability for Small Advertisers
Short lifespan
Lack of target - market orientation
Clutter
Poor reproduction quality
High cost
Advantages for Newspapers include:
Newspapers offer geographic selectivity, coverage and reach in local markets, engagement, flexibility, creative and merchandising opportunities, good editorial support, and suitability for small (local) advertisers. Newspapers are an excellent medium for large advertisers using a key market media strategy.
Geographic Selectivity - market-by-market placement for national advertisers based on priority of market
Local Market Coverage - effective reach of broad cross-section of adult population
Engagement – people devote a considerable amount of time reading the newspaper and tend to consume it more carefully than other media such as radio or TV.
Flexibility - size options and flexform advertising available. Also, placement can occur on short notice.
Creative and Merchandising Considerations – advertisers can present message that include long copy or factual information. Also newspaper offer merchandise tie-in opportunities, such as cooperative advertising with local distributors or ads containing coupons or other promotional incentives geared toward trial purchase or building loyalty,
Editorial Support – ad can be placed in specific portions in the newspaper (for a cost). (e.g., luxury automobile in business section for business executives)
Suitability for Small Advertisers – newspapers offer high reach and flexibility at relatively low cost compare to other media. Newspapers offer creative services for companies that lack advertising expertise within their organization.
Disadvantages for Newspapers include:
Some drawbacks include short life span, absence of a target-market orientation, clutter, poor reproduction quality, and higher costs for national advertisers (compared to local advertisers). Creatively speaking, newspapers are a black and white medium so the ability of any ad to really stand out from the clutter is a challenge.
Short Lifespan – a newspaper is around for only one day or less, so the likelihood for an advertisement to receive exposure is drastically reduced if the newspaper is not read on the day of distribution.
Lack of Target-Market Orientation – newspaper in general reach a very broad cross section of the population. Advertisers using a shotgun approach (mass reach), newspaper serve a purpose. Advertisers wishing to reach a target market that is upscale in terms of income, occupation, or education must recognize that newspaper advertising will reach many who are not in the target market, resulting in a wasteful spending of an advertising budget.
Clutter – is the extent to which a publication’s pages are fragmented into small blocks of advertising and/or editorial. Generally 60% of a newspaper’s space is devoted to advertising. Making a ad stand out and make an impression on the reader is a challenging creative task.
Poor Reproduction Quality – with respect to print quality, newspapers compare poorly to magazines.
High Costs – high cost of newspaper advertising is a problem faced by national advertisers. E.g., running a full page black and white ad in six key markets is (1 MM-plus population) involves 23 daily newspapers. The cost of the space would be $ , and $ in colour).
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9. Buying Newspaper Space: Agate Lines
Each column inch of depth in a newspaper contains 14 agate lines.
If an ad is 4 columns wide by 10 inches deep, the number of lines in the ad would be:
4 x 10 x 14 = 560 agate lines.
If the ad ran 10 times, the total number of lines would be:
560 x 10 = 5,600 agate lines
Total agate lines are multiplied by the line rate.
This is an example of a calculation for newspapers that define space in terms of columns and column inches (a majority of present day newspapers use this system).
The key number in the calculation is the 14 agate lines per column inch.
To determine the cost, the total number of lines would be multiplied by the appropriate line rate.
The basic procedure for buying newspaper space is to determine the size of the ad in agate lines or modular agate lines. The cost of the ad is calculated by multiplying the number of modular agate lines or agate lines by the appropriate line rate. To simplify matters regarding ad size and costs per line, some newspapers offer standard size ads that are easier to understand and deal with. For example, a half-page ad is the equivalent of 900 agate lines, but the expression half-page is easier to comprehend.
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10. Buying Newspaper Space: Modular Agate Lines
Modular Agate Lines (MAL):
An ad is expressed in terms of units of width and depth. Each unit contains 30 agate lines.
If an ad is 2 columns wide and 5 units deep, the calculation of total MAL is:
2 x x 30 = 300 MAL
If this ad were to run say 10 times, the total number of lines would be:
300 MAL X 10 = 3000
The number of lines is then multiplied by the line rate.
There are two ways to determine the amount of lines in a newspaper ad.
If a paper uses the CNU system, each unit contains 30 agate lines.
If a paper uses the column inch system then there are 14 agate lines per column inch. Newspapers specify their system in Canadian Advertising Rates and Data (CARD).
In this illustration the CNU system is explained.
In CARD you would look up the line rate for 3000 lines.
Newspaper space can be sold on the basis of modular units (by only a select number of papers). In this system the size of an ad is expressed in terms of units of width and depth (e.g., 3 units wide by 4 units deep).
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11. Rate Schedules
Line rates are the advertising rates charged by newspapers for one agate line or one modular agate line.
Rates charged by line go down as the volume of the lineage increase over a specific period
Costs for additional colour and preferred position are quoted separately
Line rates vary depending on the section of the newspaper
Other factors that influence costs include the number of insertions or estimates of volume lineage over time (earns a better line rate), creative considerations such as the use of colour, and position charges. These factors increase the cost of advertising.
Several examples of newspaper buying are included in the chapter along with a Globe and Mail rate card (Figure 8.5). It is recommended that these examples be reviewed in class so that students become somewhat familiar with how to use a rate card. Additional examples appear in Figure 8.6.
Newspaper advertising rates are published in a rate schedule. The schedule publishes a maximum line rate and usually includes a discount line rate grid based on lineage purchased over time (usually one year). Costs for colour, preferred positions, and other special requests are quoted separately. Some key terms on a newspaper rate card include:
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12. Additional Newspaper Advertising Charges
Position Charges
more costly, targeted to particular readers
Otherwise, newspaper places the ad at their discretion called ROP (run of press, run of paper)
Colour Charges
more costly, but stronger impact
Continued…
Position Charges - Higher line rates are charged when an advertiser requests a particular position (e.g., a certain section, above the fold). The cost is usually quoted as a percentage addition to the line rate. Requesting a certain position adds to the cost of advertising (e.g., near the front of the paper or in a specific section of the paper).
Colour Charges - There are additional costs for each additional colour. Significant increases in costs occur when colour is added. Four colour is very expensive and there are minimum size requirements for 4-colour ads.
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13. Additional Newspaper Advertising Charges (cont.)
Multiple-Page Charges
Reduced line rates apply based on number of pages purchased
Preprinted Inserts
Costs are usually quoted on a CPM basis, with rates increasing as pages are added
Split Runs
Uses full circulation of the publication but has different material appearing in two or more regions.
Multiple Page Charges - Double-page spreads or additional pages are quoted at discounted rates.
Preprinted Inserts - Usually quoted on a cost-per-thousand basis with rates increasing with the size or weight of the insert. Advertisers pay a distribution fee on a cost-per-thousand basis to insert flyers into a newspaper.
Split Runs - A split run occurs when an advertiser uses the entire circulation of a newspaper but has different material (ads) running in two or more regions. It is a method for testing the effectiveness of various advertisements that are under consideration. Using one-half of a newspaper’s circulation to run different ads.
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14. Insertion Orders Specifies pertinent details including: Size of the ad
Dates of insertion
Use of colour
Position requests
Line rate to be charged
Closing dates
Cancellation dates
To verify that an ad actually ran, one receives a tear sheet (to show how it actually appeared in the newspaper)
Should there be any problems, one can request a make good, a rerun of the ad at no cost to the advertiser
Advertisers use an insertion order when purchasing newspaper space. An insertion order is a document that specifies the size of the ad, dates of insertion, use of colours, position requests, and the line rate to be charged. To verify that an ad has run as scheduled, a tear sheet (an actual ad extracted from the paper) is provided to the advertiser. Should there be any problems with the ad (e.g., poor reproduction quality), an advertiser might request a make good (a rerun of the ad at no cost to the advertiser).
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15. Comparing Newspaper for Efficiency
Cost and circulation are used to determine efficiency.
A comparison is made on the basis of what it costs to reach 1,000 people.
CPM = Unit Cost of Ad
Circulation (in thousands)
In larger metropolitan markets where several newspapers compete for advertising revenue, advertisers must decide on which paper(s) to place advertising with. Since circulation and costs vary from one paper to another, the advertisers compare alternatives based on the cost of reaching one thousand readers. The expression is referred to as cost per thousand (CPM). The formula for the calculation is:
Cost
CPM = ______________
Circulation (000)
Other factors that influence the selection decision are the readership profile (demographic and psychographic profile of readers), and the editorial content of the publication. The Globe and Mail, for example, has a high CPM compared to other Toronto dailies but it reaches an upper income target (professionals, business managers, etc.). That makes it an attractive vehicle for advertising purposes.
When deciding on which newspapers to advertise in (e.g., in markets where there is more than one newspaper), each paper is compared for efficiency.
Cost and circulation are used as the basis for comparison.
Cost divided by the circulation in thousands produces a CPM figure.
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16. Magazines in Canada Magazines are classified in many ways:
Content and Audience Reached
Consumer magazines
Business magazines (horizontal and vertical publications)
Circulation Base (Distribution)
Paid circulation
Controlled circulation
Continued…
There are over 1700 magazines published in Canada, 800 of which are categorized as consumer magazines. Magazines are classified several ways:
Content and Audience Reached - Consumer versus business magazines. Both publish general-interest and special-interest publications. Business magazines are further subdivided as vertical or horizontal publications. Vertical publications appeal to all levels of people in the same industry. Horizontal publications appeal to people that occupy the same level of responsibility in a business.
Circulation Base (Distribution) - Paid circulation which includes subscriptions and newsstand sales or by controlled circulation (free distribution to selected targets).
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17. Magazines in Canada (cont.)
Frequency of Publication and Regional Editions
Weekly and Monthly
National, regional and city
Size and Format
Digest-size
Standard-size
Large-size
Frequency of Publication - Weekly, monthly, bi-monthly, etc. Maclean’s is a weekly while Chatelaine is a monthly.
Size and Format - Digest, standard, or larger sizes (TV Guide compared to Chatelaine).
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18. Magazine Circulation and Readership Highlights
It is possible that a magazine with lower circulation has more readers per copy (average number of people who read a single issue), resulting in a higher readership level.
Insert Figure 8.9
Both circulation and readership data influence an advertiser’s decision to select certain magazines for advertising. Readership data is compiled by the Print Measurement Bureau and audited circulation data is verified by Audit Bureau of Circulations and the Canadian Circulations Audit Board.
Managers and media planners typically review both circulation and readership data as it is possible that a lower circulation magazine has higher levels of readership. Circulation multiplied by readers per copy equals the total readership of a magazine. Refer to Figure 8.9 for an illustration of such data.
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19. Advantages & Disadvantages of Magazine Advertising
Lead Time
Clutter
Cost
Frequency
Target-Market Selectivity
Geographic Flexibility
Lifespan
Engagement
Quality of Reproduction
Creative Considerations
Pass-Along Readership
Advantages of Magazines
The advertising advantages of magazines include target-market selectivity, geographic flexibility, extended life span, engagement, quality reproduction, creative considerations (bleeds, gatefolds, etc.), and pass-along readership. Magazines are perceived as a quality medium by advertisers and they reach readers with their message in a relaxed environment.
Target-Market Selectivity - a class medium rather than a mass medium
Geographic Flexibility - availability of regional editions and in some cases key market editions
Life Span - monthly means multiple viewings by a subscriber; tends to stay in the home for extended periods
Engagement – magazines are purchased and read because of the editorial content interests the reader. Some research shows an overwhelming percentage of readers pay full or complete attention when reading magazines. Excellent editorial environment; well-read by subscribers
Quality of Reproduction – magazines are printed on high quality paper by means of a four-colour process that creates a high quality paper
Creative Considerations – magazines offer some flexibility (e.g., gatefolds (multiple-page foldouts), double-page spreads, and bleeds)
Pass-Along Readership –magazines are exposed to the primary reader, but also may be exposed to others
Disadvantages of Magazines
The drawbacks to advertising in magazines include long lead time for materials, clutter, high cost (particularly for four colour), and low frequency. Generally speaking, magazines are useful when a profile matching strategy or rifle strategy is in place
Lead Time – layout of a magazine is planned way in advance, so advertisers much be prepared early
Clutter – clutter refers to the clustering of ads near the front and back of the magazine
Cost – magazine production costs, particular for four-colour advertisements, are significantly higher than newspaper production costs
Frequency – magazines do not offer the advertiser much opportunity to reach the audience frequently because the distribution frequency is low
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20. Magazine Readership Primary Readers Passalong Readers
A reader who lives (works) at the location where the magazine is received.
Passalong Readers
Someone who reads the publication but does not live (work) where publication is received.
Primary + Passalong = Total Readership
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21. Advertising Features Offered By Magazines
Bleeds
Gatefolds
Preferred Positions
Inserts and Reply Cards
Split Runs
Bleed - colour of ad runs off the page (borderless).
Gatefolds - multiple page ads that fold out of a magazine, spanning two to four pages. A popular spot is the inside front cover.
Preferred Position - requesting a certain position adds to the cost of advertising. Covers are can range from 15-20% more expensive than regular pages.
Inserts and Reply Cards – practically any size business reply card, small multiple-page insert, or booklet can be bound into a magazine. Gluing items into a publication (referred to as tipping) or stapling in separate publications is becoming popular.
Split Runs – different ads may appear in different regional editions. (e.g., running two different ads in one publication using half the circulation for each).
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22. Buying Magazine Space
Ad costs are determined by multiplying cost (size) by frequency (number of insertions).
If the cost of a 1 page, 4-colour ad was $ and the ad ran 8 times, the total cost would be:
$ x 8 = $
Additional discounts may apply.
The basic procedure is to determine the size of the ad from the variety of page options available. Rates are quoted based on the size of the page requested. Other factors that influence the cost of magazine advertising include frequency, the use of colour, and guaranteed position charges.
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23. Magazine Discounts Frequency Number of lines, times, etc. Continuity
Length of time
All pages purchased by a multi-product advertiser
Corporate
Some of the more common discounts offered by magazines include: frequency (based on the number of times an ad runs), continuity (for advertising in consecutive issues), and corporate (considers all pages purchased by a multi-product advertiser). Media companies that publish more than one magazine offer advertisers additional discounts if they advertise in any combination of magazines.
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24. Additional Magazine Advertising Charges
Colour and position charges are quoted separately on the rate card.
Colour and Position Charges
more costly for the inclusion of colour
more costly for a guaranteed position
Colour and position charges are quoted separately on the rate card. Both variables increase the cost of magazine advertising.
Magazine rate schedules quote rates on the basis of ad size and colour combinations (black & white, black & one colour, 4-colour, etc.).
Position Charges - Higher line rates are charged when an advertiser requests a particular position (e.g., a certain section, above the fold). The cost is usually quoted as a percentage addition to the line rate. Requesting a certain position adds to the cost of advertising (e.g., near the front of the paper or in a specific section of the paper).
Colour Charges - There are additional costs for each additional colour. Significant increases in costs occur when colour is added. Four colour is very expensive and there are minimum size requirements for 4-colour ads.
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25. Comparing Magazines Canadian Homemaker’s Chatelaine Living
1pg, 4-colour rate $ $ $23 200
Circulation
CPM $79.34 $68.40 $45.35
Source: Canadian Media Director’s Council Media Digest, p. 526
Continued…
Advertisers must decide on particular magazines to place advertising with among the competitive alternatives that are available. The magazine alternatives are compared based on cost per thousand (CPM). CPM refers to the cost of reaching one thousand readers and is based on the following formula:
Cost per Page
CPM = ______________
Circulation (000)
Other qualitative factors are considered along with the CPM calculation prior to making the final decision on which magazines to advertise in.
In this CPM comparison Homemaker’s is outright winner in terms of efficiency. However, the merits of a controlled circulation magazine should be compared to a subscription-based magazine in this case.
Students often question whether people actually read magazines they get for free.
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26. Comparing Magazines (cont.)
Chatelaine
Chatelaine
Canadian Living
Homemaker’s
Canadian
Living
Homemaker’s
In this CPM comparison Homemaker’s is outright winner in terms of efficiency. However, the merits of a controlled circulation magazine should be compared to a subscription-based magazine in this case.
Students often question whether people actually read magazines they get for free.
Visit each of the above sites; compare and contrast their focus, features, and apparent targets.
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27. Technology & Print Media
The print media are launching websites to get their message out.
For magazine advertisers, there is a new opportunity to reach the same target but in a different way.
For interested advertisers, most websites sell
Banner ads
Sponsorships
Some expansion to specialty television
Some newspapers are expanding into the broadcast media. A few examples include ROB TV, a Globe and Mail venture, Canadian Gardening, and Canadian Home Workshop. Cross-advertising opportunities embracing the newspaper or magazine and television are available to advertisers.
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