Advertising Chapter 19. Advertising Media 19.1 After finishing this section you will know: The concept and purpose of advertising The different.
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AdvertisingAdvertising
Chapter 19Chapter 19
Advertising Media 19.1Advertising Media 19.1
After finishing this section you will know:After finishing this section you will know: The concept and purpose of advertisingThe concept and purpose of advertising The different types of advertising mediaThe different types of advertising media
Advertising and Its Advertising and Its PurposePurpose
Promotional advertising-Promotional advertising- advertising advertising designed to increase salesdesigned to increase sales
Institutional advertising-Institutional advertising- attempts to attempts to create a favorable impression and create a favorable impression and goodwill for a business or organizationgoodwill for a business or organization
Allows large numbers of people to see Allows large numbers of people to see the advertiser’s messagethe advertiser’s message
Advertising DrawbacksAdvertising Drawbacks
Cannot focus on individual needs Cannot focus on individual needs because the same message is conveyed because the same message is conveyed to all customersto all customers
Some forms of advertising can be too Some forms of advertising can be too expensive- TVexpensive- TV
Advertising can be inefficient—not Advertising can be inefficient—not everyone who reads a magazine is a everyone who reads a magazine is a potential customerpotential customer
Types of MediaTypes of Media
Media-Media- the agencies, means, or instruments the agencies, means, or instruments used to convey advertising messages to the used to convey advertising messages to the publicpublic
There are four general categories of There are four general categories of advertising media:advertising media:
1.1. Print mediaPrint media2.2. Broadcast mediaBroadcast media3.3. Online advertisingOnline advertising4.4. Specialty mediaSpecialty media
Print MediaPrint Media
Print mediaPrint media- written advertising that may - written advertising that may be included in newspapers, magazines, be included in newspapers, magazines, direct mailings, signs, and billboardsdirect mailings, signs, and billboards
Print Media-Newspaper Print Media-Newspaper
Newspaper advertising- main form of print Newspaper advertising- main form of print media for most businessesmedia for most businesses
Advantages of newspaper advertising:Advantages of newspaper advertising: Large readershipLarge readership High level of reader involvementHigh level of reader involvement Relatively low cost, ads are timelyRelatively low cost, ads are timely Advertisers can easily change ads up to 24 hours Advertisers can easily change ads up to 24 hours
before printingbefore printing 55% of US adults read a newspaper every day55% of US adults read a newspaper every day
Print Media-NewspaperPrint Media-Newspaper
Limitations of newspaper advertising:Limitations of newspaper advertising: Wasted circulation—sent to more than target Wasted circulation—sent to more than target
marketmarket Short advertising life—papers are thrown Short advertising life—papers are thrown
awayaway Black and white format is less appealingBlack and white format is less appealing
Print Media-MagazinePrint Media-Magazine
Magazine advertising- can be classified Magazine advertising- can be classified as local, regional, national, as well as as local, regional, national, as well as weekly, monthly, and quarterlyweekly, monthly, and quarterly
Print Media-MagazinePrint Media-Magazine
Advantages of magazine advertising:Advantages of magazine advertising: Can target audience because they know the Can target audience because they know the
circulation and characteristics of their readerscirculation and characteristics of their readers Longer life span and are often read more slowly and Longer life span and are often read more slowly and
thoroughly than newspapersthoroughly than newspapers Information in a magazine ad is more likely to be Information in a magazine ad is more likely to be
rememberedremembered Print quality is betterPrint quality is better Magazines are kept longer—increasing the chances Magazines are kept longer—increasing the chances
that the ads will be rereadthat the ads will be reread Variation of presentation formats—full page, two-Variation of presentation formats—full page, two-
page spreads, or heavy stock insertspage spreads, or heavy stock inserts
Print Media-MagazinePrint Media-Magazine
Drawbacks to magazine advertising:Drawbacks to magazine advertising: Less mass appeal within a geographical Less mass appeal within a geographical
areaarea More expensive than newspapersMore expensive than newspapers Deadlines for submitting ads are months in Deadlines for submitting ads are months in
advanceadvance
Print Media-Direct MailPrint Media-Direct Mail
Direct-mail advertising-Direct-mail advertising- sent by sent by businesses directly through the mail to businesses directly through the mail to prospective customersprospective customers
Types of direct-mail advertising include: Types of direct-mail advertising include: newsletters, catalogs, coupons, newsletters, catalogs, coupons, samplers, price lists, circulars, and samplers, price lists, circulars, and invitations to special eventsinvitations to special events
Print Media-Direct MailPrint Media-Direct Mail
Mailing lists:Mailing lists: Assembled by the advertiser from current Assembled by the advertiser from current
customer recordscustomer records Can be purchased from a direct-mail Can be purchased from a direct-mail
specialty firmspecialty firm Must be accurate, or using them is Must be accurate, or using them is
uselessuseless
Print Media-Direct MailPrint Media-Direct Mail
Advantages of direct mail:Advantages of direct mail: Highly selective about who receives mailingHighly selective about who receives mailing Control timing and prevent competitors from Control timing and prevent competitors from
seeing the initial mailingseeing the initial mailing Wide choice of sizes and formatsWide choice of sizes and formats Can easily incorporate coupons or Can easily incorporate coupons or
incentivesincentives Customers can order directly by using an Customers can order directly by using an
order form or toll-free numberorder form or toll-free number
Print Media-Direct MailPrint Media-Direct Mail
Disadvantages of direct-mail advertising:Disadvantages of direct-mail advertising: Low level of response—less than 1%Low level of response—less than 1% Customers see it as “junk mail”Customers see it as “junk mail” Dated customer listsDated customer lists Cost is highCost is high
Print Media-Directory Print Media-Directory
Directory advertising-Directory advertising- an alphabetical an alphabetical listing of houses and businesseslisting of houses and businesses
Example: telephone directories- white Example: telephone directories- white pages (houses) yellow pages pages (houses) yellow pages (businesses)(businesses)
Print Media-DirectoryPrint Media-Directory
Advantages of directory advertising:Advantages of directory advertising: Relatively inexpensiveRelatively inexpensive Can be used with all demographic groupsCan be used with all demographic groups
Disadvantage of directory advertising- Disadvantage of directory advertising- printed yearly- advertisers cannot change printed yearly- advertisers cannot change prices or sales for over a yearprices or sales for over a year
Print Media-OutdoorPrint Media-Outdoor
Outdoor advertising- used by both local and Outdoor advertising- used by both local and national businessesnational businesses
Nonstandardized outdoor signsNonstandardized outdoor signs- used by local - used by local firms at their places of business or around their firms at their places of business or around their communitycommunity
Standardized outdoor signsStandardized outdoor signs- available to local, - available to local, regional, or national advertising companies in regional, or national advertising companies in standard sizes and placed near highly traveled standard sizes and placed near highly traveled roadways where there is high visibilityroadways where there is high visibility
Print Media-OutdoorPrint Media-Outdoor
Three types of standardized outdoor signs:Three types of standardized outdoor signs:1.1. PostersPosters- pre-printed sheets put up like - pre-printed sheets put up like
wallpaper on outdoor billboards which are wallpaper on outdoor billboards which are changed 3 to 4 times per yearchanged 3 to 4 times per year
2.2. Painted bulletinsPainted bulletins- painted billboards that are - painted billboards that are changed about every 6 months to a yearchanged about every 6 months to a year
3.3. SpectacularsSpectaculars- outdoor advertising signs - outdoor advertising signs which use lights or moving parts and are which use lights or moving parts and are suited in high traffic areassuited in high traffic areas
Print Media-OutdoorPrint Media-Outdoor
Advantages of outdoor signs:Advantages of outdoor signs: Highly visibleHighly visible Relatively inexpensive Relatively inexpensive 24 hour a day message24 hour a day message
Disadvantages of outdoor signs:Disadvantages of outdoor signs: Some states have banned billboard Some states have banned billboard
advertising because they distract viewersadvertising because they distract viewers Size restrictions and spacing requirementsSize restrictions and spacing requirements
Print Media-TransitPrint Media-Transit
Transit advertising-Transit advertising- uses public uses public transportation facilities to bring transportation facilities to bring advertising message to peopleadvertising message to people
Advantages of transit advertising:Advantages of transit advertising: Reaches a wide captive audienceReaches a wide captive audience Defined marketDefined market
Print Media-TransitPrint Media-Transit
Disadvantages of transit advertising:Disadvantages of transit advertising: Unavailable in smaller towns and citiesUnavailable in smaller towns and cities Subject to defacementSubject to defacement Restricted to predetermined travel routesRestricted to predetermined travel routes
E-billboardsE-billboards- video screens used to - video screens used to advertise products popular in bus stops, advertise products popular in bus stops, train stations, and gas stationstrain stations, and gas stations
Broadcast MediaBroadcast Media
Broadcast mediaBroadcast media- includes radio and - includes radio and televisiontelevision
The average person spends:The average person spends: 10 years watching television10 years watching television 6 years listening to the radio6 years listening to the radio
Broadcast Media-Broadcast Media-TelevisionTelevision
Television advertising-Television advertising- ultimate advertising ultimate advertising medium for many businesses because it can medium for many businesses because it can communicate a message with sound, motion, communicate a message with sound, motion, and colorand color
Prime timePrime time- between 8 and 11 p.m. when - between 8 and 11 p.m. when millions of viewers are watchingmillions of viewers are watching
Television commercial advertisementsTelevision commercial advertisements- 30-60 - 30-60 seconds longseconds long
InfomercialsInfomercials- 30 minute advertisements- 30 minute advertisements
Broadcast Media-Broadcast Media-TelevisionTelevision
Advantages of television advertising:Advantages of television advertising: Can be directed to an audience with a Can be directed to an audience with a
specific interestspecific interest News, comedy, history, movies, sports, or News, comedy, history, movies, sports, or
sciencescience
Messages can be adapted to holidays, Messages can be adapted to holidays, season changes, or special events season changes, or special events programmingprogramming
Broadcast Media-Broadcast Media-TelevisionTelevision
Disadvantages of television advertising:Disadvantages of television advertising: Highest production costs of any advertising Highest production costs of any advertising
mediamedia Prime-time costs prohibit smaller companies Prime-time costs prohibit smaller companies
from using television advertisingfrom using television advertising Actual audience size is not assuredActual audience size is not assured Television commercials are seen as an Television commercials are seen as an
opportunity to leave the roomopportunity to leave the room
Broadcast Media-RadioBroadcast Media-Radio
Radio advertising-Radio advertising- it is estimated that it is estimated that radio reaches 95% of all people age 12 radio reaches 95% of all people age 12 and over in a given weekand over in a given week
Best radio advertising times- when Best radio advertising times- when people are going to and from workpeople are going to and from work 15, 30, or 60-second time period 15, 30, or 60-second time period
commercialscommercials
Broadcast Media-RadioBroadcast Media-Radio
Advantages of radio advertising:Advantages of radio advertising: Can select an audienceCan select an audience More flexible than print media because More flexible than print media because
messages can be changed easilymessages can be changed easily Mobile medium that can be taken just about Mobile medium that can be taken just about
anywhereanywhere
Broadcast Media-RadioBroadcast Media-Radio
Disadvantages of radio advertising:Disadvantages of radio advertising: Messages have a short life spanMessages have a short life span Lack of visual involvement causes listeners Lack of visual involvement causes listeners
to become easily distracted and miss the to become easily distracted and miss the messagemessage
Online AdvertisingOnline Advertising
Online advertisingOnline advertising- placing advertising - placing advertising messages on the Internetmessages on the Internet
Banner adBanner ad- a wide shallow rectangle seen at - a wide shallow rectangle seen at the top or bottom of Web pages which takes the top or bottom of Web pages which takes the user to the advertiser’s Web page if clicked the user to the advertiser’s Web page if clicked with a mousewith a mouse
Banner ads use Banner ads use rich mediarich media- animation, sound, - animation, sound, and videoand video
Interstaitial adsInterstaitial ads- screens pop up to interrupt - screens pop up to interrupt Web surfingWeb surfing
Online AdvertisingOnline Advertising
Advantages of online advertising:Advantages of online advertising: Easily measure effectiveness by the number Easily measure effectiveness by the number
of click throughsof click throughs Bold colors, top-of-page placement increase Bold colors, top-of-page placement increase
the number of click throughsthe number of click throughs Disadvantages of online advertising:Disadvantages of online advertising:
People see online advertisements as an People see online advertisements as an annoyance or distractionannoyance or distraction
Concerned by privacy or reliability issuesConcerned by privacy or reliability issues
Specialty MediaSpecialty Media
Specialty mediaSpecialty media- relatively inexpensive, - relatively inexpensive, useful items with an advertiser’s name useful items with an advertiser’s name printed on themprinted on them Items given away with no obligation attached Items given away with no obligation attached
to receiving and keeping themto receiving and keeping them
Specialty MediaSpecialty Media
To be successful items must be:To be successful items must be: PracticalPractical Subject to frequent useSubject to frequent use Placed in locations with high visibilityPlaced in locations with high visibility
Limitations of specialty items:Limitations of specialty items: Distribution of itemsDistribution of items Items given to people who would never Items given to people who would never
consider buying the productconsider buying the product
Other Advertising MediaOther Advertising Media
Other advertising mediaOther advertising media- businesses are - businesses are constantly creating innovative means of constantly creating innovative means of transmitting messages to potential transmitting messages to potential customerscustomers
Examples: sports arena billboards, Examples: sports arena billboards, airplanes pulling advertising bannersairplanes pulling advertising banners
Selection of Promotional Selection of Promotional MediaMedia
The advertising medium used depends on the The advertising medium used depends on the product being advertised product being advertised
To determine the type of promotional media to use To determine the type of promotional media to use advertisers need to address three basic questions:advertisers need to address three basic questions:
1.1. Does the medium have the ability to present the Does the medium have the ability to present the product and the appropriate business image?product and the appropriate business image?
2.2. Does the medium have the ability to target the Does the medium have the ability to target the desired customers?desired customers?
3.3. Does the medium have the ability to obtain the Does the medium have the ability to obtain the desired response rate?desired response rate?
Assignment Assignment
Page 344Page 344 Reviewing Key TermsReviewing Key Terms Thinking CriticallyThinking Critically # 1-6# 1-6
Media Rates 19.2Media Rates 19.2
After finishing this section you will know:After finishing this section you will know: How various media rates are setHow various media rates are set The costs of print mediaThe costs of print media The standards for selecting promotional The standards for selecting promotional
mediamedia
Media CostsMedia Costs
Advertising uses a set format that is Advertising uses a set format that is defined in terms of time or spacedefined in terms of time or space
Media costs vary greatly with the type of Media costs vary greatly with the type of media and geographical locationmedia and geographical location
Media CostsMedia Costs
Standard Rate and Data ServiceStandard Rate and Data Service- - publishes rate cards for most major publishes rate cards for most major media according to general categoriesmedia according to general categories
Audit Bureau of Circulation- print media Audit Bureau of Circulation- print media publishers subscribe to ABC to have it publishers subscribe to ABC to have it verify their circulation figuresverify their circulation figures Important because advertising rates for print Important because advertising rates for print
media are based on circulationmedia are based on circulation
Newspaper RatesNewspaper Rates
Newspaper rates- classified into two Newspaper rates- classified into two categoriescategories
Classified adClassified ad- grouped or classified into - grouped or classified into specific categories, such as help wanted, specific categories, such as help wanted, real estate, and auto salesreal estate, and auto sales
Newspaper RatesNewspaper Rates
Display adDisplay ad- involve creative illustration of - involve creative illustration of the product being advertisedthe product being advertised A mix of art, photographs, headlines, copy, A mix of art, photographs, headlines, copy,
and logo of the product or businessand logo of the product or business Generally larger than classified ads and cost Generally larger than classified ads and cost
is based on the amount of space usedis based on the amount of space used Quoting display ads- price per column inch- Quoting display ads- price per column inch-
one column wide by one inch deepone column wide by one inch deep
Newspaper RatesNewspaper Rates
Run of paper rateRun of paper rate- allows the newspaper - allows the newspaper to choose where to run an ad in the to choose where to run an ad in the paperpaper
Color adsColor ads run at a higher rate than those run at a higher rate than those which run in which run in black and whiteblack and white
Newspaper RatesNewspaper Rates
Open rateOpen rate- a.k.a. non-contract rate, the - a.k.a. non-contract rate, the basic charge for a minimum amount of basic charge for a minimum amount of advertising spaceadvertising space Open rate varies depending upon when the Open rate varies depending upon when the
ad will appear in the paperad will appear in the paper
Contract rateContract rate- business who advertise - business who advertise regularly get a rate discounted from the regularly get a rate discounted from the open rateopen rate
Newspaper RateNewspaper Rate
Bulk space contractBulk space contract- guarantees that a - guarantees that a minimum number of column inches within minimum number of column inches within a 12 month perioda 12 month period
Cost per thousand (CPM)Cost per thousand (CPM)- the media - the media cost of exposing 1,000 readers to an adcost of exposing 1,000 readers to an ad Cost of the ad X 1,000/circulation = cost per Cost of the ad X 1,000/circulation = cost per
thousandthousand
Magazine RatesMagazine Rates
Magazine ratesMagazine rates- based on circulation, - based on circulation, quality of readership, and production quality of readership, and production techniquetechnique
Magazine RatesMagazine Rates
In order to determine the cost of In order to determine the cost of magazine ads, one needs to become magazine ads, one needs to become familiar with the following terms:familiar with the following terms:
BleedBleed- half or full page ads are printed to - half or full page ads are printed to the very edge of the page, leaving no the very edge of the page, leaving no white borderwhite border Magazines generally charge between 15-Magazines generally charge between 15-
20% more for bleeds20% more for bleeds
Magazine RatesMagazine Rates
Color ratesColor rates- offered for color ads- offered for color ads Full colorFull color- four color advertisements which cost - four color advertisements which cost
the mostthe most Premium positionPremium position- where ads are placed in the - where ads are placed in the
magazine on the back cover or inside the first magazine on the back cover or inside the first pagepage
Frequency discountsFrequency discounts- advertisers who run the - advertisers who run the same ad several times during the yearsame ad several times during the year The rate per issue decreases as the frequency The rate per issue decreases as the frequency
increasesincreases
Magazine RatesMagazine Rates
CommissionCommission- a percentage of sales given - a percentage of sales given by the magazine to the advertising by the magazine to the advertising agency for placing the ad for the agency for placing the ad for the advertiser—typical 15%advertiser—typical 15%
Cash discountCash discount- offered for paying the bill - offered for paying the bill earlier than its due dateearlier than its due date
Online RatesOnline Rates
Online ratesOnline rates- based upon the type of - based upon the type of format the customer desiresformat the customer desires
Barter arrangementsBarter arrangements- each advertiser - each advertiser agrees to run banner ads for the otheragrees to run banner ads for the other Lead to more traffic for each business’s Web Lead to more traffic for each business’s Web
sitessites
Radio RatesRadio Rates
Radio ratesRadio rates- when purchasing radio time, - when purchasing radio time, businesses need to determine which type businesses need to determine which type of advertising to useof advertising to use
Network radio advertisingNetwork radio advertising- broadcast - broadcast from a studio to all affiliated radio stations from a studio to all affiliated radio stations throughout the countrythroughout the country Broadcast ads simultaneously to several Broadcast ads simultaneously to several
marketsmarkets
Radio RatesRadio Rates
National spot ratio advertisingNational spot ratio advertising- used by - used by national firms to advertise on a local national firms to advertise on a local station-by-station basisstation-by-station basis Used to target select marketsUsed to target select markets
Local radio advertisingLocal radio advertising- done by a local - done by a local business for its target marketbusiness for its target market Limited to a specific geographical areaLimited to a specific geographical area
Television RatesTelevision Rates
Television ratesTelevision rates- vary with time of day- vary with time of day Class AA timeClass AA time- during the hours of 8 and - during the hours of 8 and
11 p.m.11 p.m. Class A, B, C, DClass A, B, C, D- lower based on - lower based on
diminishing viewer-shipdiminishing viewer-ship
Cooperative AdvertisingCooperative Advertising
Cooperative advertising- a cost-sharing Cooperative advertising- a cost-sharing arrangement whereby both a supplier arrangement whereby both a supplier and a local advertiser pay for advertisingand a local advertiser pay for advertising
Promotional BudgetPromotional Budget
There are four common promotional There are four common promotional budgeting methods:budgeting methods:
1.1. Percentage of anticipated sales- budget Percentage of anticipated sales- budget is decided on a percentage of past or is decided on a percentage of past or anticipated salesanticipated sales
2.2. All you can afford method- turns all All you can afford method- turns all monies to promotional activity only after monies to promotional activity only after all other company expenses are paidall other company expenses are paid
Promotional BudgetPromotional Budget
3.3. Following the competition- the Following the competition- the competitor’s promotional expenditures competitor’s promotional expenditures are matched or spending is planned in are matched or spending is planned in proportion to market shareproportion to market share
4.4. Objective and task- the company Objective and task- the company determines goals, considers the determines goals, considers the necessary steps to meet goals, and necessary steps to meet goals, and determines the cost for these determines the cost for these promotional activitiespromotional activities
Assignment Assignment
Page 350Page 350 Reviewing Key TermsReviewing Key Terms # 1-5# 1-5
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