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Transcript of 1 © 2009 South-Western, a part of Cengage Learning Chapter 15 Media Planning: Newspapers,...
1
© 2009 South-Western, a part of Cengage Learning
Chapter 15
Media Planning: Newspapers, Magazines, Television, and
Radio
PPT 15-1
2PPT 15-2
A Whole New Traditional Media World
Advertisers believe that digital media offer more cost effective way to reach target audiences.
Internet media now about $20 billion, but that is only 6% of total worldwide media spending.
Traditional mass media are losing placement to digital media—particularly newspapers.
Television has been hit by the shift to digital, but is responding with partnerships with digital organizations.
3PPT 15-3
Which Media: Strategic Planning Considerations
1. Advertisers need media to reach target audiences.
2. Advertisers’ media choices direct billions of dollars to media companies.
3. Newspapers and magazines have inherent advantages and disadvantages.
4. Broadcast media, TV and radio, also have inherent advantages and disadvantages.
4PPT15-4
Newspaper Advantages
Reach over 50% of households—150 million adults
Geographic selectivity Timeliness Creative opportunities Credibility Audience interest Cost
5PPT 15-5
Newspaper Disadvantages
Limited segmentation
Creative constraints
Poor reproduction
Cluttered environment
Short life
6PPT 15-6
Categories of Newspapers
Target Audience– General Population– Business– Ethnic
Geographic coverage– Metropolitan area– State– National
Frequency of Publication– Daily– Weekly
7PPT 15-7
Categories of Newspaper Advertising
Display Advertising– Display advertising– Co-op advertising
Inserts– Preprinted insert– Free-standing insert
Classified Advertising
8PPT 15-8
Costs and Buying Procedures for Newspaper Ads
Rate Cards Costs determined
by:– Size of ad– Use of color– Size of audience– Extent of coverage
Space is sold in column inches or SAU sizes.
Rates lower for ROP (run of paper) rather than preferred position or full position.
9PPT 15-9
Measuring Newspaper Audiences
Circulation– Paid circulation– Controlled circulation
Readership
10PPT 15-10
Future of Newspapers
Survival of newspapers depends on ability to evolve. In the future, newspapers will have to:
– Provide in-depth coverage of local issues– Increase coverage of national and international events– Provide follow-up reports of news– Maintain role as local source for consumer information– Provide more “e-Bay” like classified ads– Become more mainstream in integrated brand promotions
relating to new media
11PPT 15-11
Magazine Advantages and Disadvantages
Advantages Audience selectivity Audience interest Creative opportunities Long life
Disadvantages Limited reach and
frequency Clutter Long lead times Cost
12PPT 15-12
Categories of Magazines
Consumer publications– Men’s Journal, Women’s Day, Ebony
Business publications– American Family Physician, Forbes
Farm publications– Successful Farming, Progressive Farmer
13PPT 15-13
Costs and Buying Procedures for Magazines
Costs determined by: Circulation Size of ad Use of color Position in publication
Rates also vary for: Bleed page Gatefold ad Run-of-paper advertisement Preferred position: cover pages Double page spreads Space contract
14PPT 15-14
Measuring Magazine Audiences
Rates are based on guaranteed circulation– Stated minimum number of copies that will
be delivered to readers Publishers also estimate pass-along
readership Estimates are verified by Audit Bureau
of Circulations
15PPT 15-15
Future of Magazines
Last 20 years a roller coaster for magazines– Currently: revenues and ad pages are up– Advertisers find magazines useful for
selectivity and color Continued success requires:
– Adapting to new media options– A robust environment for mergers and
acquisitions in the industry
16PPT 15-16
Television
For many TV defines what advertising is
In 2008 advertisers spent about $85 billion on television
Many more billions are spent on commercial production
17PPT 15-17
Television Categories
Network television Cable television Syndicated television
– Off-network syndication– First-run syndication– Barter syndication
Local television Satellite and closed-circuit television Web/iPod/Cell TV
18PPT 15-18
Advantages of Television
Advantages Creative opportunities Coverage, reach, and repetition Cost per contact Audience selectivity
– narrowcasting
19PPT 15- 19
Disadvantages Fleeting message High absolute cost Poor geographic selectivity Poor audience attitude and attentiveness DVR/TiVo Clutter
Disadvantages of Television
20PPT 15- 20
Buying Procedures for Television Advertising
Sponsorship Participation Spot advertising Choosing a day-part:
– Morning– Daytime– Early fringe– Prime-time access
– Prime time– Late news– Late fringe
21PPT 15-21
Measuring Television Audiences
Source for network and local audience information: – A. C. Nielsen
Arbitron provides network information
22PPT 15-22
Measures of TV Audiences
Television households– Number of households in a market owning a television
Households using television (HUT)– Number of households tuned to a TV program in a
time period
23PPT 15-23
Measures of TV Audiences
Program rating =TV households tuned to a program
Total TV households in the market
CSI rating =19,500,00
95,900,00 = 20 rating
Program Rating Percentage of TV households in a market that
are tuned to a program during a time period.
24PPT 15-24
Measures of TV Audiences
Program Share =TV households tuned to a program
Total TV households using TV
CSI Miami =19,500,00
65,000,000 = 30 share
Share of Audience Proportion of households using television
(HUT) in a specific time period that are tuned to a program
25
Controversy in Television Ratings
DVR ad skipping has not been accounted for
Advertisers do not want to pay for “skipped” ads
Nielsen has come up with new measurement tools to account for skipping
26PPT 15-26
Future of Television
Future appears exciting Interactive era will affect TV as an advertising medium DVRs increase viewer satisfaction but may compromise advertising Increase in direct broadcast by satellite HDTV Massive consolidation of media companies
27PPT 15-27
Radio
Radio categories– Radio networks– Radio syndication– AM versus FM– Satellite radio– Internet radio
Types of radio ads– Local spot radio– Network radio advertising– National spot radio advertising
28PPT 15-28
Radio Advantages and Disadvantages
Radio advantages Cost Reach and frequency Target audience selectivity
Radio disadvantages Poor audience attentiveness Creative limitations
Flexibility and timeliness Creative opportunities
Fragmented audiences Chaotic buying procedures
29PPT 15-29
Buying Procedures for Radio Advertising
Ad time may be purchased from networks, syndications, or local radio stations About 80% is placed locally Radio has five basic day parts:
– Morning drive time– Daytime– Afternoon/evening drive time– Nighttime– Late night
30PPT 15-30
Measuring Radio Audiences Average quarter hour persons
– Average number of station listeners in a 15-minute segment Average quarter-hour share
– Percentage of total radio audience listening to a station during a specified 15-minute segment Average quarter-hour rating
– Audience during a quarter-hour expressed as a percentage of the measurement area population Cume
– Total number of different people who listen for at least five minutes in a 15-minute segment RADAR (Radio’s All Dimension Audience Research)
– Collects data 2X per year based on interviews with radio listeners
31PPT 15-31
The Future of Radio
Subscription radio/satellite
Emerging technologies and new media—Internet, HD radio
Consolidation