2How Many Ads to You See Each Week? The average person is exposed to approximately 2000 ads each week. Do you see that many or more?
3What is advertising?Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.The time or space devoted to it is paid forIt uses a set format to carry the message rather than personal, one-on-one sellingIt identifies the sponsor of the message
4How does advertising use a set format? Advertisements are measured by time or spaceA radio spot is usually 30 seconds long (time)A newspaper ad can be 1/4 page (space)
5The Main Purpose of Advertising To sell products or ideas by presenting its message so well that the customer will buy the product or accept the idea presented.
6Promotional Advertising Promotional advertising is advertising that is designed to increase sales bycreating an interest in productsintroducing new products and businessesexplaining a productsupporting personal selling effortscreating new markets
7Institutional Advertising Institutional advertising attempts to create a favorable impression (image) and goodwill for a business or an organizationPurpose is to develop a positive image by presenting information about a company’s role in the community, important public issues and topics of general interest.
8MediaMedia are the agencies, means or instruments used to convey messages
9Three Categories of Advertising Media Print mediaBroadcast mediaSpecialty media
10Print Media Print media can include any of the following: Newspapers Direct MailMagazineOutdoor AdvertisingDirectory AdvertisingTransit Advertising
11Why is Newspaper Advertising Important? Approximately 55% of adults read the newspaper everyday?Do you read the newspaper?Do your parents or guardians read the newspaper?
12National, State and Local U.S.A. TodayThe Wall Street JournalThe New York TimesThe Atlanta Journal/Constitution
13What is a shopper? Someone who likes to shop? A community newspaper which contains no editorial content and is delivered free to persons who live in certain areas (full of ads)The Thrifty Nickel
14Advantages & Disadvantages of Newspaper Advertising Large readershipKnown circulation (easy to target)Low costTimely and flexibleWasted circulationDisposable (short lifespan)Poor quality advertising
16Consumer Vs. BusinessConsumer magazines are read for personal pleasure or interestReader’s Digest, Vogue, Sports IllustratedBusiness magazines appeal to people with general interest in business or a particular field within businessBusiness Week, Inc., Forbes, Marketing News
17Advantages & Disadvantages of Magazine Advertising Easy to target your marketRead slowly and thoroughlyGood print qualityLonger life span because they are kept of an extended period of timeLess mass appeal within a geographic areaMore expensive than newspapersNot timely or flexible (long lead times)
18Direct Mail Advertising (Junk Mail) Advertising that is sent directly to prospective customers through the mail(More than $80 billion in goods and services sold annually through direct mail)Have you ever bought anything through direct mail advertising?What do you do with it when you get it?
19Advantages & Disadvantages of Direct Mail Advertising Advertiser can be highly selectiveFlexible and secretiveWide choice of formatsCan use coupons or other incentivesCan directly make the saleLow level of response (-1%)High costsPoor image (junk mail) often not read
20Outdoor AdvertisingNon-standardized outdoor signs are used by local firms at their place of business or in other locations throughout the community.Standardized outdoor signs are available to local, regional or national advertisers.
21Three types of standardized outdoor signs Posters - Preprinted sheets put up like wallpaper on outdoor billboards (McDonalds)Painted bulletins - Painted billboards that are changed every 6 months to a yearSpectaculars - outdoor signs using lights, moving parts and are situated in high traffic areas or cities (Chick-Fil-A)
22Advantages and Disadvantages of Outdoor Advertising Highly visibleRelatively inexpensivePermits easy repetition of messageCan be geographically tailored for target marketShort message due to limited viewing timeUnknown audienceGovernment regulations
23Directory Advertising Alphabetical listing of businessesRelatively inexpensiveFound in 98% of households - all demographicsKept for at least a year - not thrown awayVery inflexible due to being printed yearlyWasted advertising (to non-target market)
24Transit AdvertisingUsing public facilities to advertise - such as subways, on buses and taxis, in stationsReaches a wide and captive audienceEconomicalDefined market (usually urban)Unavailable in smaller townsSubject to defacementRestricted to certain travel destinations
25Broadcast Media Radio - 6+ years listening to the radio Television years watching television in 70 years
26Radio Advertising 96% of people over 12 are reached by radio Prime time is morning and afternoon drive times - advertisers guaranteed concentrated audienceAds are available in 15, 30 or 60 second time slots
27Advantages and Disadvantages of Radio Advertising Select and audience - target their marketFlexible - can change quickly and easilyMobile (can be taken anywhere - shopping, jogging, hiking or drivingShort life spanSometimes many stations - have to decide which to use or use them all (more expensive)Distractions - no visual involvement
28Television Advertising The ultimate advertising medium because it can communicate with sound, action and colorPrime time is 7 p.m p.m.Infomercials - 30 minute commercials (The George Foreman Grill)
29Advantages & Disadvantages of Television Advertising All elements for creative messageBelievabilityMore personal & effectiveCan reach the masses or target specific interestsAdaptable to special needsExpensive - the highest production costs - too high for small businessesAudience size is not assuredNuisance - channel surfing - leave during commercials
30Advertising in U.S. Schools Some oppose Channel One because they believe the station misuses valuable educational time. Others are offended by commercialization of the school environmentAdvertisers hope students will become more aware of and ultimately buy their products. Disadvantages include the perception that the advertisers are forcing students to watch TV advertising or use a particular productCollege recruiters, yearbook ads, candy sale postersSome people may see advertising in schools as forcing products on a captive audience or may perceive businesses as taking advantage of schools
31Specialty MediaInexpensive, useful items with an advertiser’s name printed on them - usually given away
32Other Types of Advertising Media Sports Arena BillboardsMovie theater commercialsHot air balloons, blimps, skywriting, bannersshelf ads, shopping cart ads, coupon machines, receipt ads
33Is there anything else we are missing? What about the Internet?What advantages and disadvantages might there be?
34Media Rates - Services Available Standard Rate and Data Service - gives rates for most major media according to broad categories (print, broadcast)Audit Bureau of Circulation (ABC) - Print media use this to verify circulation figures because advertising rates are based on circulation
35Classified Ads and Display Ads Classified ads can advertise everything from services performed to houses for sale to job openings (costs per word used)Display ads are creative illustrations of the product being advertised. (costs for space used)
36Newspaper RatesColumn Inch Rates - number of columns by number of inches deep multiply by the rateRun of Paper rate - The newspaper chooses where to run the ad - you don’t choose the locationOpen Rate - Basic charge for a minimum amount of space (non-contract rate)Contract Rate - Discounted rates for guaranteed amount of advertising in a time period
37CPMCPM is the cost per thousand rate - the cost of exposing 1000 readers to an adCost of the ad X1000 = cost per thousand (cpm) CirculationUsed to compare the rates for different papers with different circulations
38Magazine RatesBleed - 1/2 or full page ads are printed to the very edge (no white border) %Black & White - Lowest rates - black & white adsColor - Each color adds more costFull color - 4 colorPremium position - ad placement in mag.Discounts - frequency, commission, cashCPM - Cost per thousand in circulation
39The SpotSpot radio refers to the geographical area an advertiser wants to reach with its advertising. Identify target market & potential customersSpot commercials are advertising messages of one minute or less that can be carried on network or spot radio.
40Different radio advertising options Network Radio advertising - a broadcast from a studio to all affiliated radio stations throughout the country (Paul Harvey)National spot radio advertising - National firms advertise on a local station-by-station basis. - target marketsLocal radio advertising - local businesses advertise for its target marketRun of schedule - lets the radio station determine when to run the advertisement
41Television Rates Advertising rates vary with the time of day. Prime time is the most expensive p.m.Class AA time is prime time - other times are Class A, B, C and D.Advertisers need to choose the time slot that receives the most viewers in their target market.