1. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1 1 Traditional Advertising Media

2. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Objectives After reading this chapter you should be able to: 1.Describe the four major traditional advertising media (newspapers, magazines, radio, and television). 2.Discuss the strengths and weakness for each of the following major traditional advertising media: newspapers, magazines, radio, and television. 3.Describe how each of these traditional media choices has changed with the appearance of new media options (e.g., social media, online advertising). 4.Appreciate the research methods that are used for each ad medium to determine the size of the audience exposed to advertising vehicles. 2

3. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Has TV Advertising Lost its Effectiveness? Or, Has it Simply Changed its Look? 3

4. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Major Mass Advertising Media Spending on measured media advertising in the four traditional media in the United States totaled approximately $121 billion, and $300 billion for all media – measured and unmeasured – in 2012. Approximate spending percentages by major media type: 4

5. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Which Advertising Medium Is “Best”? Advertiser’s Objectives Creative Needs Competitive Challenge Available Budget Factors in the Choice of Best Advertising Media 5

6. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Newspapers Readership 48 million U.S. households during the week and nearly 49 million on Sundays. Historically, the leading medium, but in constant decline Buying Newspaper Space Standardized Advertising Unit (SAU) system 1 column:2 1 / 16 inches2 columns:4 1 / 4 inches 3 columns:6 7 / 16 inches4 columns:8 5 / 8 inches 5 columns:10 13 / 16 inches6 columns:13 inches Space depth: 1 inch to 21 inches Space rates apply to ROP (run of press) Premium rates for preferred space positioning 6

7. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Newspaper Advertising’s Strengths and Limitations 7

8. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Magazines Special Interest Magazines Consumer-oriented Business-oriented Standard Rate and Data Service (SRDS Media Solutions) Tracks information on standardized ad rates, contact information, reader profiles, and other information, which facilitates media planning and buying. 8

9. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Magazines (cont’d) Buying Magazine Space Selecting magazines that reach the target market Sources for cost considerations Media Kits – Demographic composition of magazine’s readership – Rate cards CPM (Cost-per-thousand) Information – Mediamark Research, Inc. (MRI) – Simmons Market Research Bureau (SMRB) 9

10. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 12.1: Golf Digest’s Demographic Profile 10

11. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 12.2: Partial Rate Card for Sports Illustrated (Rate base = 3,150,000) 11

12. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Magazine Advertising’s Strengths and Limitations 12

13. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Magazines (cont’d) Magazine Audience Measurement Magazine subscriptions and the number of people who read a magazine are not equivalent: Variety of intermediaries collecting subscription makes it difficult to obtain an accurate count of subscribers Single copy purchases and publicly-available copies thwart identification of readers Subscribers who share magazines with others Simmons and MRI Reports Specialists in measuring magazine readership and determining audience size. Each uses different research methods 13

14. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Illustration of a MRI Report for Imported Beer/Ale 14

15. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Magazines (cont’d) Considerations in selecting magazines: The size of the potential audience that a vehicle might reach The attractiveness of its coverage as revealed by the total product purchasers exposed to that vehicle and compared with other media Its cost compared with other vehicles Its appropriateness for the advertised brand 15

16. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Radio Market Coverage There are 14,503 commercial radio stations in the United States Almost 100 percent of all homes have radios; most homes have several Virtually all cars have a radio More than 50 million radios are purchased in the United States each year Radio broadcasting in the United States reaches slightly over 93 percent of all people age 12 or older. 16

17. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Radio (cont’d) Factors in Buying Radio Time Matching station format with target market Choosing a station with geographic coverage in areas of dominant influence (ADIs) Daypart choices: Morning drive: 5 AM to 10 AM Midday: 10 AM to 3 PM Afternoon drive: 3 PM to 7 PM Evening: 7 PM to Midnight Late night: Midnight to 7 AM 17

18. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Radio Advertising’s Strengths and Limitations 18

19. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Radio (cont’d) Radio Audience Measurement Firms Arbitron Is the major company involved with measuring listenership and audience demographics. Owns RADAR (Radio’s All Dimension Audience Research) Uses a paper-based diary approach to measure listener behavior and is introducing pager-like meters (Portable People Meters) to its data collection process 19

20. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Television Over 98% of all households have televisions Is a uniquely personal and demonstrative medium Is expensive to produce and broadcast Television Programming Dayparts: Early morning: 5 AM to 9 AM Daytime: 9 AM to 4 PM Early fringe: 4 PM to 7 PM Prime access: 7 PM to 8 PM Prime time: 8 PM to 11 PM Late fringe: 11 PM to 2 AM Overnight: 2 AM to 5 AM 20

21. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Average Prime-Time Audience (in millions) for Six Major Networks 21

22. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Television Advertising Spot Network Local Cable Syndicated 22

23. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Television Messages Network Advertising Useful when selling a product nationally on major networks Expensive, but is a cost-efficient means to reach mass audience Spot Advertising Advertising is placed only in selected markets Regional-oriented marketing and geodemographic segmentation of consumer markets Syndicated Programming Occurs when an independent company sells a show to as many network-affiliated or cable TV stations as possible Cable Advertising Uses narrowcasting to reach 85% of all households of economically upscale and young subscribers Local Advertising Local advertisers are turning to television as it is inexpensive during the fringe time 23

24. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The 10 Highest-Priced TV Programs (Fall 2010) 24

25. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Television Advertising’s Strengths and Limitations 25

26. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Top-10 Prime-Time Broadcast TV Programs 26

27. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Television Advertising (cont’d) Infomercials Were introduced in the early 1980s Are essentially a long commercial (28 to 30 minutes) Are expensive to produce Are an especially effective promotional tool for moving merchandise 27

28. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Television Advertising (cont’d) Brand Placements in TV Programs Can be very effective provided brand is displayed in a context that appropriately matches the brand’s image. Are the result of advertisers’ fear that TV advertising is no longer as effective as it used to be Require that brand managers pay to get prominent placement for their brands in popular programs 28

29. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Television Advertising (cont’d) Television Audience Measurement Higher rated programs command higher ad prices Ratings are difficult to come by accurately National (Network) Audience Measurement Nielsen’s People Meter Technology Local Audience Measurement Nielsen’s Diary Panels Nielsen’s Local People Meters Challenges Counting away-from-home viewers and listeners Audience undercounts 29

30. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 12.3: Nielsen People Meter 30