ADVERTISING MEDIAADVERTISING MEDIA

Learning goals:Learning goals:

Understand the purpose of advertisingUnderstand the purpose of advertising Understand how different types of media Understand how different types of media

are used are used Understand how media costs are Understand how media costs are

calculatedcalculated

Purpose of advertising:Purpose of advertising:

To present its message so well that the To present its message so well that the customer will buy the product or accept customer will buy the product or accept the idea presented.the idea presented.

Gives people the information needed Gives people the information needed about a product.about a product.

Way of pre-selling a productWay of pre-selling a product

Promotional advertising-Promotional advertising- advertising advertising designed to increase sales.designed to increase sales. creates an interest creates an interest introduces new productsintroduces new products explains a productexplains a product supports personal selling effortssupports personal selling efforts creates new marketscreates new markets

Institutional advertising-Institutional advertising- attempts to create a favorable attempts to create a favorable impression for a business or an organization.impression for a business or an organization. Ex. Environment, public health, education. Ex. Environment, public health, education.

Product promotionProduct promotion: : Convinces potential customers to buy Convinces potential customers to buy productsproducts

PrimaryPrimary focuses on the focuses on the product and its usesproduct and its uses

SecondarySecondary focuses on a focuses on a specific brandspecific brand

MediaMedia- agencies , means, or instruments used - agencies , means, or instruments used to convey messages.to convey messages.

TYPES OF MEDIATYPES OF MEDIA PrintPrint BroadcastBroadcast OnlineOnline SpecialtySpecialty

PRINT MEDIAPRINT MEDIA

Think of two advantages Think of two advantages and two disadvantages of and two disadvantages of print media.print media.

Newspaper AdvertisingNewspaper Advertising

Advantages Advantages Newspapers have a large Newspapers have a large

readership and a high level of readership and a high level of reader involvement.reader involvement.

They have a known They have a known circulation, so businesses circulation, so businesses using newspapers can target using newspapers can target their specific market.their specific market.

Cost is relatively low.Cost is relatively low. Newspapers are timely, and Newspapers are timely, and

advertisers can easily change advertisers can easily change ads.ads.

DisadvantagesDisadvantages Wasted circulation ( papers Wasted circulation ( papers

being sent outside of the being sent outside of the target market).target market).

Life of the advertisement is Life of the advertisement is limited. Papers are thrown limited. Papers are thrown away daily.away daily.

The quality of reproduction is The quality of reproduction is poor. Usually black- and –poor. Usually black- and –white.white.

Think of two advantages (things) that Think of two advantages (things) that make magazine ads a primary choice of make magazine ads a primary choice of advertisers.advertisers.

Magazine advertisements:Magazine advertisements:

AdvantagesAdvantages Businesses can target Businesses can target

their audiences because their audiences because the circulation of their the circulation of their readers is known.readers is known.

Magazines are normally Magazines are normally read slower.read slower.

Print quality is good.Print quality is good. Have a longer life span Have a longer life span

and are often reread.and are often reread.

DisadvantagesDisadvantages Magazines have less Magazines have less

mass appeal mass appeal geographically.geographically.

More expensive than More expensive than newspaper.newspaper.

Not as timely. Usually Not as timely. Usually once a month.once a month.

Direct-mail (e-mail) Advertising:Direct-mail (e-mail) Advertising:Sent through the mail to the prospect. (Direct mail sells over 80 Sent through the mail to the prospect. (Direct mail sells over 80 billion in goods and services for advertisers. Ex. Coupons, samples, billion in goods and services for advertisers. Ex. Coupons, samples, catalogues, circulars.catalogues, circulars.

AdvantagesAdvantages advertiser can be highly advertiser can be highly

selective on who will receive selective on who will receive the mailer.the mailer.

Advertiser can be sensitiveAdvertiser can be sensitive Has a wide variety of sizes Has a wide variety of sizes

and formats to choose from. and formats to choose from. Advertiser can use coupons Advertiser can use coupons

or other incentives to get or other incentives to get customers to try the product.customers to try the product.

Customers can order from Customers can order from catalogues directly from home catalogues directly from home making purchases making purchases convenient.convenient.

DisadvantagesDisadvantages There are a low number of There are a low number of

responses compared to the responses compared to the amount of material sent out.amount of material sent out.

It is very costly. Must pay for It is very costly. Must pay for printing, sending through the printing, sending through the mail, mailing lists.mail, mailing lists.

Many people consider direct Many people consider direct mail to be junk mail.mail to be junk mail.

List five companies that List five companies that you have received mail you have received mail from in the last weekfrom in the last week..

Outdoor MediaOutdoor Media The use of outdoor signs or billboards for advertising.The use of outdoor signs or billboards for advertising.

Standard outdoor signsStandard outdoor signs-- placed near highly traveled roads and placed near highly traveled roads and

freeways. freeways.

PostersPosters – pre-printed sheets put up – pre-printed sheets put up like wallpaper on outdoor billboards like wallpaper on outdoor billboards and re changed three of four times a and re changed three of four times a year.year.

Painted bulletinsPainted bulletins – painted – painted billboards that are changed every 6 billboards that are changed every 6 months to a year.months to a year.

SpectacularsSpectaculars – outdoor advertising – outdoor advertising signs that use lights or moving parts. signs that use lights or moving parts. (Las Vegas)(Las Vegas)

NonstandardNonstandard- used by local firms at - used by local firms at their place of business.their place of business.

Directory (online) AdvertisingDirectory (online) AdvertisingAdvertisements placed in alphabetical listings of businesses. Advertisements placed in alphabetical listings of businesses. (Yellow pages)(Yellow pages)

AdvantagesAdvantages Relatively Relatively

inexpensive.inexpensive. Found in over 90% of Found in over 90% of

American American households.households.

Usually kept for at Usually kept for at least a year when least a year when they are replaced.they are replaced.

DisadvantageDisadvantage Advertisements can’t Advertisements can’t

be changed until the be changed until the next year.next year.

Transit AdvertisingTransit AdvertisingUses public transportation facilities to bring advertising to people. Uses public transportation facilities to bring advertising to people. (Printed posters found in commuter trains, exterior posters on buses or (Printed posters found in commuter trains, exterior posters on buses or taxis, stationed posters found near subways and in airports.taxis, stationed posters found near subways and in airports.

AdvantagesAdvantages Reaches a large Reaches a large

audience.audience. EconomicalEconomical Has a defined market Has a defined market

(usually urban).(usually urban).

DisadvantagesDisadvantages Often unavailable in Often unavailable in

smaller towns.smaller towns. Subject to Subject to

defacement.defacement. It is restricted to It is restricted to

certain travel certain travel destinations.destinations.

DAILY JEOPARDYDAILY JEOPARDY

BROADCAST MEDIABROADCAST MEDIARadio and television advertisements. The average person who Radio and television advertisements. The average person who lives 70 years will spend 10 years watching T.V.lives 70 years will spend 10 years watching T.V.

Radio Advertising:Radio Advertising:it is estimated that radio reaches 96% of all people ages 12 it is estimated that radio reaches 96% of all people ages 12 and over. Best time for advertising is in the morning and in and over. Best time for advertising is in the morning and in the evening.the evening.

Television Advertisements: Television Advertisements: The ultimate advertising for most because it can communicate a The ultimate advertising for most because it can communicate a message with sound, action, and color.message with sound, action, and color.

SPECIALTY MEDIASPECIALTY MEDIARelatively inexpensive, useful items with an advertisers Relatively inexpensive, useful items with an advertisers

name on them. ex. Coffee mugs, hats, key chains.name on them. ex. Coffee mugs, hats, key chains.

OTHER ADVERTISING MEDIAOTHER ADVERTISING MEDIABlimps, sky writing, airplanes pulling banners.Blimps, sky writing, airplanes pulling banners.

MEDIA COSTSMEDIA COSTSThe cost for advertising in newspapers, magazines, radio, online, The cost for advertising in newspapers, magazines, radio, online, and television.and television.

Newspaper rates: classified & displayNewspaper rates: classified & display

Classified: pay a set rate for the adClassified: pay a set rate for the ad

Display: By the column inchDisplay: By the column inch

(# of inches x # of columns) x rate = cost of the ad(# of inches x # of columns) x rate = cost of the ad

4 x 3 x $17 = $2044 x 3 x $17 = $204

Magazine rates:Magazine rates:

BleedBleed

SpreadSpread

Premium positionPremium position

Frequency discountsFrequency discounts

*Radio rates:*Radio rates:

--Network radio advNetwork radio adv. – broadcast from a studio to all affiliated radio . – broadcast from a studio to all affiliated radio across the country.across the country.

--National spot radio advNational spot radio adv.- used by national firms to advertise on a .- used by national firms to advertise on a station-by-station basis.station-by-station basis.

- - Local radio advLocal radio adv. – used by local businesses for its target market. . – used by local businesses for its target market.

- $ is determined by station and times of advertising. - $ is determined by station and times of advertising.

--spot radio-spot radio- refers to the geographical location an advertiser refers to the geographical location an advertiser wants to reach.wants to reach.

--spot commercials-spot commercials- advertising commercials of one minute or less. advertising commercials of one minute or less.

Television Rates:Television Rates:

* * Rates vary with the time of day and Rates vary with the time of day and

programs. programs.

-prime time hours are (7-11 p.m. ) -prime time hours are (7-11 p.m. )

known as class AA time.known as class AA time.

-Less expensive classes A, B, C, D.-Less expensive classes A, B, C, D.

COST PER THOUSAND (CPM)COST PER THOUSAND (CPM)

The cost of exposing 1,000 readers to an The cost of exposing 1,000 readers to an ad.ad.

cost of the ad x 1,000cost of the ad x 1,000

circulation (audience) = CPMcirculation (audience) = CPM

CPMCPM

Cost of the ad = $500Cost of the ad = $500 Circulation is =500,000Circulation is =500,000

$500 x $500 x 1,0001,000

500,000 = $1 per 1,000 500,000 = $1 per 1,000 readersreaders

DAILY JEOPARDYDAILY JEOPARDY