Marketing Communications - Chapter 12 doc

© 2010 South-Western, a part of Cengage Learning All rights reserved. PowerPoint Presentation by Charlie Cook The University of West Alabama Eighth Edition Traditional Advertising Media CHAPTER 12 1. Describe the four major traditional advertising media (newspapers, magazines, radio, and television). 2. Discuss newspaper advertising and its strengths and limitations. 3. Evaluate magazine advertising and its strengths and limitations. 4. Describe radio advertising and its strengths and limitations. 5. Discuss television advertising and its strengths and limitations. 6. Appreciate the research methods that are used for each ad medium to determine the size of the audience exposed to advertising vehicles. Chapter Objecves After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved. 12–2 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 12–3 Major Mass Advertising Media Major Mass Advertising Media • Spending in mass advertising media in the Spending in mass advertising media in the United States totaled approximately $190 billion United States totaled approximately $190 billion in a recent year. in a recent year. • Spending percentages by media type: Spending percentages by media type: © 2010 South-Western, a part of Cengage Learning. All rights reserved. 12–4 Which Advertising Medium Is “Best”? Which Advertising Medium Is “Best”? Advertiser’s Objectives Creative Needs Competitive Challenge Available Budget Factors in the Choice of Best Advertising Media © 2010 South-Western, a part of Cengage Learning. All rights reserved. 12–5 Newspapers Newspapers • Readership: Readership:  53 million U.S. households during week and nearly 55 53 million U.S. households during week and nearly 55 million on Sundays. million on Sundays.  Historically leading medium but in constant decline Historically leading medium but in constant decline • Buying Newspaper Space Buying Newspaper Space  Standardized Advertising Unit (SAU) system Standardized Advertising Unit (SAU) system  1 column: 1 column: 2 2 1 1 / / 16 16 inches inches 2 columns: 2 columns: 4 4 1 1 / / 4 4 inches inches  3 columns: 3 columns: 6 6 7 7 / / 16 16 inches inches 4 columns: 4 columns: 8 8 5 5 / / 8 8 inches inches  5 columns: 5 columns: 10 10 13 13 / / 16 16 inches inches 6 columns: 6 columns: 13 inches 13 inches  Space depth: 1 inch to 21 inches Space depth: 1 inch to 21 inches  Space rates apply to ROP (run of press) Space rates apply to ROP (run of press)  Premium rates for preferred space positioning Premium rates for preferred space positioning © 2010 South-Western, a part of Cengage Learning. All rights reserved. 12–6 Newspaper Advertising’s Strengths and Limitations Table 12.1 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 12–7 Magazines Magazines • Special Interest Magazines Special Interest Magazines  Consumer-oriented Consumer-oriented  Business-oriented Business-oriented • Standard Rate and Data Service (SRDS Media Standard Rate and Data Service (SRDS Media Solutions) Solutions)  Tracks information on standardized ad rates, contact Tracks information on standardized ad rates, contact information, reader profiles, and other information, information, reader profiles, and other information, which facilitates media planning and buying. which facilitates media planning and buying. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 12–8 Magazines (cont’d) Magazines (cont’d) • Buying Magazine Space Buying Magazine Space  Selecting magazines that reach the target market Selecting magazines that reach the target market  Sources for cost Sources for cost considerations considerations  Media Kits Media Kits – Demographic composition Demographic composition of magazine’s readership of magazine’s readership – Rate cards Rate cards  CPM (Cost-per-thousand) CPM (Cost-per-thousand) Information Information – Mediamark Research, Inc. (MRI) Mediamark Research, Inc. (MRI) – Simmons Market Research Bureau (SMRB) Simmons Market Research Bureau (SMRB) © 2010 South-Western, a part of Cengage Learning. All rights reserved. 12–9 Golf Digest’s Demographic Profile Figure 12.1 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 12–10 Partial Rate Card for Sports Illustrated (Rate base = 3,150,000) Figure 12.2 [...]... during the fringe time © 2010 South-Western, a part of 12 22 Table 12. 6 The 10 Highest Priced TV Programs, 2007–2008 (price per 30-second commercial) © 2010 South-Western, a part of 12 23 Table 12. 7 Television Advertising’s Strengths and Limitations © 2010 South-Western, a part of 12 24 Table 12. 8 Top-10 Prime-Time Broadcast TV Programs © 2010 South-Western, a part of 12 25 Television Advertising (cont’d)... AM to 5 AM © 2010 South-Western, a part of 12 19 Table 12. 5 Average Prime-Time Audience (in millions) for Four Major Networks © 2010 South-Western, a part of 12 20 Types of Television Advertising Network Syndicated Spot Cable © 2010 South-Western, a part of Local 12 21 Television Messages Network Advertising Market product nationally on major networks Expensive but is a cost-efficient means to reach... readership and determining audience size  Each uses different research methods © 2010 South-Western, a part of 12 12 Table 12. 3 Illustration of a MRI Report for Imported Beer/Ale (Based on all adults indicating whether they have drunk imported beer/ale within the last six months) © 2010 South-Western, a part of 12 13 Magazines (cont’d) • Selecting the Magazine  The size of the potential audience that... 12 16 Table 12. 4 Radio Advertising’s Strengths and Limitations © 2010 South-Western, a part of 12 17 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... Measurement  Nielsen’s Diary Panels  Nielsen’s Local People Meters • Challenges  Counting away-from-home viewers and listeners  Audience undercounts © 2010 South-Western, a part of 12 28 Figure 12. 3 Nielsen People Meter © 2010 South-Western, a part of 12 29 ... 2010 South-Western, a part of 12 27 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... South-Western, a part of 12 15 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)  Day part choice  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 © 2010 South-Western, a part of 12 16... 2010 South-Western, a part of 12 14 Radio • Market Coverage  Nearly 14,000 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 about 93 percent of all people age 12 or older...Table 12. 2 Magazine Advertising’s Strengths and Limitations © 2010 South-Western, a part of 12 11 Magazines (cont’d) • Magazine Audience Measurement  Magazine subscriptions and the number of people who read a magazine are not equivalent:  Variety of... 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 markets 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 . advertising vehicles. Chapter Objecves After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved. 12 2 © 2010 South-Western, a part of. All rights reserved. 12 7 Magazines Magazines • Special Interest Magazines Special Interest Magazines  Consumer-oriented Consumer-oriented  Business-oriented Business-oriented • Standard Rate. South-Western, a part of Cengage Learning. All rights reserved. 12 9 Golf Digest’s Demographic Profile Figure 12. 1 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 12 10 Partial