Click here to advance to the next slide.

Chapter 14

Advertising

Section 14.2

MediaMeasurement and Rates

Read to Learn

List the components of media measurement.

Identify how advertising costs are measured.

Describe how media rates are determined.

The Main Idea

Businesses need to reach as many targeted customers as possible. Many companies do this by advertising. It is important to calculate ad costs and measure media effectiveness to best reach a potential audience.

Key Concepts

Media Planning

Media Measurement

Media Rates

Key Term

mediaplanning

advertisingagency

the process of selecting advertising media and deciding the time and space in which the ads should appear

a business that specializes in developing ads and ad campaigns for its clients

Key Term

adcampaign

audience

a series of ad messages that share a single idea and theme

the number of homes or people exposed to an ad

Key Term

impression

frequency

a single exposure to an advertising message

the number of times an audience sees or hears an ad

Key Term

cost perthousand(CPM)

primetime

the media cost of exposing 1,000 readers or viewers to an advertising impression

the time period when the network TV or radio audience is the largest

Media Planning

Media planning can help a business project the desired image to the target market.

media planningthe process of selecting advertising media and deciding the time and space in which ads should appear

Graphic Organizer

Media Planning Questions

1. Can the medium present the product or service and the appropriate business image?

2. Can the desired customers be targeted with the medium?

3. Will the medium get the desired response rate?

Advertising Agencies

Hiring an advertising agency can be an effective way to develop ads.

advertising agencya business that specializes in developing ads and ad campaigns for its clients

Advertising Agencies

An advertising agency can help a business develop an ad campaign.

ad campaigna series of ad messages that share a single idea and theme

Media Measurement

Media planners are concerned with the correct medium to use, its costs, and its effectiveness.

Media Measurement

Media planners want their ads to reach the correct audience.

audiencethe number of people exposed to an ad

Media Measurement

Two media measurements are impression and frequency.

impressiona single exposure to an advertising message

frequencythe number of times an audience sees or hears an ad

Media Measurement

Cost per thousand (CPM) is related to the number of people that read or see an ad.

cost per thousand (CPM)the media cost of exposing 1,000 readers or viewers to an advertising impression

The “M” in CPM comes from the word mille, which

is Latin for “thousand.”

Media Audiences

TV audience measurement is based on diaries and viewer data collected by Nielsen Media Research Inc.®

Arbitron Inc.® uses listener diaries to measure radio audiences in more than 260 markets.

Media Rates

Advertising uses a set formula that is defined in terms of time or space.

A media rate or advertising rate is the amount of money it costs to display or broadcast an ad.

Graphic Organizer

Factors AffectingMedia Rates

The size of an ad

The number of people an ad reaches

How often anad appears

When an adappears

Where anad is placed

Ad Campaigns That Fail

Taco Bell used to run ads featuring a Chihuahua that said “You quiero Taco Bell” (“I want Taco Bell”). The commercials were so popular that the dog’s image was put on T-shirts, window decals, and toys. After a while, the company determined that the ads did not lead to more sales.

Print Media Ad Rates

Ad rates for newspapers and magazines are based on circulation.

Circulation is the number of people who buy a publication, and audience, the number of readers per issue.

Print Media Ad Rates

Magazine and newspaper ads are sold by the inch on a page.

Graphic Organizer

Rate for a column inch is $17

You want an ad that measures four inches long by three columns wide

A column inch is one column wide by one inch deep

$17 X 4 inches X 3 Columns = $204

If a newspaper quotes a column inch rate, multiply the number of inches by the number of columns. Then multiply the total column inches by the rate.

Print Media Ad Rates

Magazine rates are based on:

Circulation

The type of readership

Production techniques

Position (prime positions are more costly)

Broadcast Media Ad Rates

Broadcast media ad rates depend on:

The size of the audience

The reach of the station

The time of the day

Broadcast Media Ad Rates

For TV, prime time is between 7 PM and 11 PM.

For radio, prime time is the morning or afternoon hours (drive time).

prime timethe time period when the network TV or radio audience is the largest

Internet Ad Rates

The cost of Internet advertising is based on:

Type

Size

Ad

Volume of monthly page views

1. What are the three basic questions advertisers must address in media planning?

Can the medium present the product or service and the appropriate business image? Can the desired customers be targeted? Will the medium get the desired response rate?

2. Name the four components of media measurement.

audience, impression, frequency, and cost per thousand (CPM)

3. Define media rate or advertising rate.

The amount of money it costs to display or broadcast an ad.

Chapter 14

Advertising

Section 14.2

MediaMeasurement and Rates

End of