1 © 2009 south-western, a part of cengage learning chapter 15 media planning: newspapers,...

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© 2009 South-Western, a part of Cengage Learning

Chapter 15

Media Planning: Newspapers, Magazines, Television, and

Radio

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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.

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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.

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Newspaper Advantages

Reach over 50% of households—150 million adults

Geographic selectivity Timeliness Creative opportunities Credibility Audience interest Cost

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Newspaper Disadvantages

Limited segmentation

Creative constraints

Poor reproduction

Cluttered environment

Short life

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Categories of Newspapers

Target Audience– General Population– Business– Ethnic

Geographic coverage– Metropolitan area– State– National

Frequency of Publication– Daily– Weekly

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Categories of Newspaper Advertising

Display Advertising– Display advertising– Co-op advertising

Inserts– Preprinted insert– Free-standing insert

Classified Advertising

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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.

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Measuring Newspaper Audiences

Circulation– Paid circulation– Controlled circulation

Readership

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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

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Magazine Advantages and Disadvantages

Advantages Audience selectivity Audience interest Creative opportunities Long life

Disadvantages Limited reach and

frequency Clutter Long lead times Cost

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Categories of Magazines

Consumer publications– Men’s Journal, Women’s Day, Ebony

Business publications– American Family Physician, Forbes

Farm publications– Successful Farming, Progressive Farmer

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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

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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

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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

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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

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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

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Advantages of Television

Advantages Creative opportunities Coverage, reach, and repetition Cost per contact Audience selectivity

– narrowcasting

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Disadvantages Fleeting message High absolute cost Poor geographic selectivity Poor audience attitude and attentiveness DVR/TiVo Clutter

Disadvantages of Television

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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

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Measuring Television Audiences

Source for network and local audience information: – A. C. Nielsen

Arbitron provides network information

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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

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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.

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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

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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

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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

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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

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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

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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

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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

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The Future of Radio

Subscription radio/satellite

Emerging technologies and new media—Internet, HD radio

Consolidation