Advertising Chapter 19. Advertising Media 19.1 After finishing this section you will know: The concept and purpose of advertising The different

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 advertisingadvertising 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


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


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


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


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


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


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 bulletinspainted 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


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


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


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


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


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


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


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


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


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


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


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

Documents

Advertising Chapter 19. Advertising Media 19.1 After finishing this section you will know: The concept and purpose of advertising The different