1. Copyright © 2012 Pearson Canada Inc. Chapter 8 Print Media: Newspapers and Magazines 8-1

2. Copyright © 2012 Pearson Canada Inc. Learning Objectives  Understand the terminology of print advertising  Identify the classifications of newspapers and magazines available to Canadian advertisers  Recognize the advantages and disadvantages of newspapers and magazines as media  Assess the considerations and procedures involved in buying print media  Recognize the influence of technology on the print media 8-2

3. Copyright © 2012 Pearson Canada Inc. Newspapers in Canada  124 daily newspapers with an average daily circulation (number of issues sold) of 6 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. 8-4

4. Copyright © 2012 Pearson Canada Inc. Newspaper Formats  Canadian newspapers are published in two formats:  Tabloids - Sold flat with only a vertical centerfold (e.g., Winnipeg Sun, Vancouver Province)  Broadsheets - Larger and folded horizontally once (e.g., Globe and Mail, Vancouver Sun, Winnipeg Free Press) 8-5

5. Copyright © 2012 Pearson Canada Inc. Newspaper Readership NADbank Inc. (industry sponsored measurement organization) updates data annually by conducting a detailed survey among Canadian adults.  Newspapers reach 47% of Canadian adults, and increases marginally on weekends  Readership increases as person’s level of income and education increases  Steady migration to online news 8-6

6. Copyright © 2012 Pearson Canada Inc. Types of Newspaper Advertising Editorial content is arranged around two broad forms of newspaper advertising:  Display  Includes general/national advertising and retail advertising  Classified advertising Another form of newspaper advertising is:  Pre-printed Inserts (retail flyer advertising) 8-7

7. Copyright © 2012 Pearson Canada Inc. General (or National) Advertising  Retail  Retail ads usually stress sale items and specials  Classified  Classified ads provide readers with opportunities to obtain a variety of products and services  Inserts  Canadian retailers spend $2 billion annually advertising in flyers.  Some of this is paid by the manufacturers 8-8

8. Copyright © 2012 Pearson Canada Inc. Advantages / Disadvantages of Newspaper Advertising Advantages:  Geographic selectivity  Coverage and reach  Flexibility  Editorial support  Suitable for small advertisers Disadvantages:  Short lifespan  Not very targettable  except geographically  Clutter  Poor reproduction quality 8-21

9. Copyright © 2012 Pearson Canada Inc. Buying Newspaper Space: Agate Lines basis 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. 8-11

10. Copyright © 2012 Pearson Canada Inc. Buying Newspaper Space: Modular Agate Lines basis 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 5 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. 8-12

11. Copyright © 2012 Pearson Canada Inc. 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 8-13

12. Copyright © 2012 Pearson Canada Inc. Additional Newspaper Advertising Charges Rates Affected by:  Position  Colour  Multiple pages  Pre-printed inserts  Insertion orders 8-14

13. Copyright © 2012 Pearson Canada Inc. Insertion Orders and Tear Sheets Size of the ad  Dates of insertion  Use of colour  Position requests 8-15 Tear Sheet:  Given to client to show that ad appeared in the paper and how it looked  If unsatisfactory, advertiser can request a make good, a rerun of the ad at publisher’s expense Insertion Orders contain details such as:  Line rate to be charged  Closing dates  Cancellation dates

14. Copyright © 2012 Pearson Canada Inc. Comparing Newspapers 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) 8-16

15. Copyright © 2012 Pearson Canada Inc. Comparison of Newspapers 8-17

16. Copyright © 2012 Pearson Canada Inc. Magazines in Canada Magazines are classified in many ways: Content and Audience Reached  Consumer magazines  Business magazines Circulation Base (Distribution)  Paid circulation  Controlled circulation Continued… 8-18

17. Copyright © 2012 Pearson Canada Inc. 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 8-19

18. Copyright © 2012 Pearson Canada Inc. Magazine Circulation and Readership Highlights  It’s 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. 8-20

19. Copyright © 2012 Pearson Canada Inc. Advantages / Disadvantages of Magazine Advertising Advantages:  Target-Market Selectivity  Geographic Flexibility  Lifespan  Engagement  Quality of Reproduction  Creative Considerations  Pass-Along Readership Disadvantages:  Lead Time  Clutter  Cost per reach  Limited Frequency 8-21

20. Copyright © 2012 Pearson Canada Inc. Advertising Features Offered By Magazines  Bleeds  Gatefolds  Preferred Positions  Inserts and Reply Cards 8-22

21. Copyright © 2012 Pearson Canada Inc. 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 $20,000 and the ad ran 8 times, the total cost would be: $20,000 x 8 = $160,000  Additional discounts may apply. 8-23

22. Copyright © 2012 Pearson Canada Inc. Magazine Discounts Number of lines, times, etc. Frequency Continuity Corporate Length of time All pages purchased by a multi- product advertiser 8-24

23. Copyright © 2012 Pearson Canada Inc. Additional Magazine Advertising Charges Colour and position charges are quoted separately on the rate card.  More costly for the inclusion of colour  More costly for a guaranteed position 8-25

24. Copyright © 2012 Pearson Canada Inc. Comparing Magazines 8-26

25. Copyright © 2012 Pearson Canada Inc. 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 8-27