1. Advertising
Chapter 19

2. Advertising and It’s Purpose
Advertising is nonpersonal promotion which promotes ideas, goods or services by using a variety of media.
The average city dweller is exposed to more than 3,000 advertising messages everyday
Advertisers control the message, where it will be seen or heard, and how often it will be repeated

3. Advertising and It’s Purpose
Marketers can use advertising to introduce a new business or change a company image
Advertising can also promote a new product or an existing one, encourage the use of a particular service, or encourage business-to-business transactions
Two main types of advertising:
Promotional Advertising
Institutional Advertising

4. Promotional Advertising Definition
Advertising designed is to increase sales
Targets are consumers or B2B customers
Encourages potential customers to ask for info, call for appointment, participate on the internet, or enter a retail store.
Leads / Prospecting

5. Institutional Advertising Definition
Designed to create a favorable image for a company and foster goodwill in the marketplace
Connecting the businesses name to a worthy cause helps a company make a favorable impression
Does not directly increase sales

6. Mass Advertising Versus Targeted Advertising
Mass ads enables companies to reach large numbers of people
Targeted ads target messages to select audiences
Advertising demonstrates features and benefits

7. Types of Media

8. Medias - the agencies, means, or instruments used to convey advertising messages to the public.
4 General categories
The advertising message and the target audience determine the type of media that is used

9. Newspaper
Television
Opt-in
Giveaways
Promoted Tweets

10. 1. Print Media a. Newspaper advertising b. Magazine advertising
c. Direct-mail advertising
d. Directory advertising
e. Outdoor advertising
f. Transit advertising

11. a. Newspaper Advertising
Daily and Weekly Newspapers – local papers
Shoppers and Alternative Newspapers – delivered to homes
National Newspapers – USA Today, Wall Street Journal

12. b. Magazine Advertising
Distributed locally, regionally or nationally
Published weekly, monthly and quarterly
Consumer or B2B
B2B are also known as trade magazines

13. c. Direct Mail Highly focused form of advertising Printed direct mail
Electronic direct mail
Newsletters, catalogs, coupons, samples, circulars and invitations to sales
Carefully selecting the target

14. d. Directory Advertising
A directory that accepts advertising
Relatively inexpensive and target all demographic groups
Kept of a year
White Pages
Yellow Pages

15. e. Outdoor Advertising
Non-standardize outdoor signs used at the place of business
Standardized outdoor signs are purchased from advertising companies
Highly visible and relatively inexpensive
Available 24 / 7

16. f. Transit Advertising
Found on public transportation – trains, taxis buses, public benches, bus stop shelters, kiosks, newsstands, trashcans, subways, railroad, bus and airline terminals
Reaches wide and captive audiences

17. 2. Broadcast Media Encompass radio and television
Over a lifetime of 66 years – a person will watch nearly ten years of TV and 6 years listening to the radio
Network and cable

18. a. Television Advertising
The ultimate advertising medium for many businesses
Combine creative elements – sight , sound, action and color
30 to 60 spots
Infomercials promote products
Highest production costs
Small companies cannot afford

19. b. Radio Advertising
Radio stations reach 96% of people age 12 and over
Radio is a mobile medium
Messages can be updated daily or hourly
Carefully target market based on type of radio station
Presented in 10, 20, 30 or 60 second spots
Background music, jingles, slogans add drama

20. 3. Internet Advertising
Is a form of advertising that uses either or the World Wide Web (www)
Small part of overall advertising but growing
Opt-in ads, banner ads, pop-up ads, search engine ads, and rich-media video ads

21. 4. Specialty Media
Sometimes called giveaways or advertising specialties
Relatively inexpensive with advertiser’s name or logo
Located in high visibility area

22. 5. Other Advertising Media
Ad supported TV screens at airports, gas stations, health clubs and subways
Digital billboards at sports arenas
On-screen movie theater ads
Messages on diaper-changing stations, trash cans, bathroom stalls elevators, hot air balloons.
Ceilings and floor graphics
Electronic shelf ads
Supermarket-cart displays

23. 6. New Media Interactive and Internet-driven
Uses electronic media devices such as Wed-enabled small screen iPods, cell phones, laptops, and video games to reach increasing mobile populations
Advertisers go to those places to find their target market customers – blogs, vlogs, video and audio newscasts, RSS news feeds and social networking

24. MEDIA PLANNING AND SELECTION
The process of selecting the appropriate advertising media and deciding the time or space in which the ads should appear to accomplish the marketing objectives
3 basic questions
1) Can the medium present the product and the appropriate business image;
2) Can the desired customers be targeted with the medium;
3) Will the medium get the desired response rate?

25. Media Rates
Section 17.2

26. A. MEDIA MEASUREMENT
Audience – number of homes or people exposed to an ad
Impression – a single exposure to an advertising message
Frequency – the number of times an audience sees or hears an advertisement
Cost per thousand (CPM) The media cost of exposing 1,000 readers or viewers to an advertising impression – comparison tool

27. B. MEDIA RATES Use a set format defined in terms of time or space
Based on geographic location
Standard Rate and Data Service – look up rates
Audit Bureau of Circulations (ABC) – verify circulation rates

28. 1. NEWSPAPER RATES
Two types of advertising – classified ad or display ad
Classified ads pay by the word or line
Display ads – larger than classified ads and cost is based upon the amount of space used and the ad’s position in the newspaper
Quote rates by the column inch

29. FACTORS THAT AFFECT NEWSPAPER RATES
Day of week ad runs
Where the ad appears in the paper
Run-of-paper rates allows the newspaper to place the ad where ever they feel it would fit
Guaranteed or preferred locations
Color use in ad
Frequency of the ad
Open rates versus contract rates

30. COMPARING RATES Use CPM to compare ad rates
Cost of the ad x 1,000/Ciculation = CPM
$500 x 1,000/500,000 = $1 per 1,000 readers
$600 x 1,000/300,000 = $2 per 1,000 readers
Does ad reach target market?

31. 2. MAGAZINE RATES
Based on circulation, the type of readership and production techniques
Bleed – half or full page ads are printed to the very edge of the page, leaving no white border – charge 15% – 20% more
You use the CPM to compare costs
Cheapest ad is black & white. Color is more expensive
Premium position refers to ad placement
Rate discounts – based on frequency or commission (% of sales given by the magazine to the ad agency for placing the ad for advertiser

32. 3. ONLINE RATES Based upon the type of format the customer desires.
Banner ads
Rich-media enhanced banner ads
Button ads
Interstitial ads
CPM rate based on number of viewers
Rates vary based on the volume of monthly page views

33. 4. RADIO RATES Types of Radio Advertising 1. Network radio advertising
2. National spot radio ad
3. Local radio advertising
Spot radio refers to geographical area where an ad runs
Spot commercial are ad messages of one minute or less on network or spot radio
Drive time and run-of schedule (ROS) allows a radio station to decide when to run the ad.

34. 5. TELEVISION RATES
Rates vary with the time of day. Prime time (7:00 p.m.-10:00 p.m.) most expensive
Advertisers try to play their messages during the time slots that enable them to reach the most customers

35. D. PROMOTIONAL BUDGET FOUR METHODS
Promotional Budget considers not only the cost for developing and placing or airing advertising but also the cost of staffing the department or campaign.
4 Common promotional budgeting methods are:
Percentage of sales method – budget based on a percentage of past or anticipated sales
All you can afford method – first pay all expenses then apply remainder of funds to promotional activities
Following the competition method – advertiser matches its competitor’s promotional expenditures
Objective and task method – company determines goals, identify steps to meet goals and determines cost for promotional activities to meet goals