1. Media Planning: Newspapers, Magazines, Television, and Radio13 1
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2. The Present and Future World of “Traditional” Mass Media
Advertisers believe that digital media offer more cost effective way to reach target audiences.
Digital/interactive media now about $30 billion a year, about 14% of total worldwide media spending—up from 4% in 2004.
Traditional mass media—particularly newspapers are losing placement to digital media
Television has been hit by the shift to digital, but is responding with partnerships with digital organizations. 13

3. Firms like Delta are combining both print and digital media for national campaigns.
Courtesy, Delta Air Lines

4. Which Media: Strategic Planning Considerations
Advertisers need media to reach target audiences.
Advertisers’ media choices result in billions of dollars of revenue to media companies.
Print media, newspapers and magazines, have inherent advantages and disadvantages.
Broadcast media, TV and radio, also have inherent advantages and disadvantages. 13

5. Newspaper Advantages
Reach is declining—but 100 million households in U.S. still read a daily paper
Geographic selectivity is good
Timeliness
Creative opportunities exist but are limited
Credibility is high
Audience interest and demographics
High interest and upscale demographics
Cost is lower than other print media 13

6. Newspaper Disadvantages
Limited segmentation
Creative constraints
Poor reproduction
Generally and particularly color
Cluttered environment
Short life 13

7. Categories of Newspaper Advertising
Display Advertising
Co-op advertising
Inserts
Preprinted insert
Free-standing insert
Classified Advertising 13

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. 13

9. Measuring Newspaper Audiences
Circulation
Paid circulation
Controlled circulation
Readership
Circulation X number of readers 13

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— “hyper-localism”
Pursue a pay-for-inquiry advertising model
Provide follow-up reports of news
Maintain role as local source for consumer information
Provide more “eBay” like classified ads
Use bloggers to cover local events
Become more mainstream in integrated brand promotions through digital media 13

11. Magazines Magazine revenue is down sharply
Several big name casualties—e.g., Gourmet Magazine
Shift to “digital” is in progress 13

12. Magazine Advantages and Disadvantages
Audience selectivity
Audience interest
Creative opportunities
Long life
Disadvantages
Limited reach and frequency
Clutter
Long lead times
Cost 13

13. Magazines offer specialized content which attracts specialized advertising
Courtesy of Escort Inc. Used with permission

14. Categories of Magazines
Consumer publications
Men’s Journal, Women’s Day, Ebony
Business publications
American Family Physician, Forbes
Farm publications
Successful Farming, Progressive Farmer 13

15. Costs and Buying Procedures for Magazines
Costs determined by:
Circulation
Size of ad
Use of color
Position in publication
Rates also vary for:
Circulation
Size of ad
Use of color
Position in publication 13

16. 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 13

17. Future of Magazines
Last 20 years has been a roller coaster for magazines
Currently: revenues and ad pages are up despite some publication casualties
Advertisers find magazines useful for the selectivity and color capabilities
Continued success related to:
Adapting to new media options
E-readers and e-subscriptions
Some publications turning to e-commerce
Some marketers successfully publishing own magazines 13

18. Television
For many TV defines what advertising is—audio, visual, color
Advertisers spent about $65 billion on television
Many more billions are spent on commercial production 13

19. Television Categories
Network television
Cable television
Video on demand capability
Syndicated television
Off-network syndication
First-run syndication
Barter syndication
Local television
Satellite and closed-circuit television
Web/iPod/Smartphone TV
Over 100 billion video streams annually
iPad emerging as viewing device 13

20. Advantages of Television
Creative opportunities
Coverage, reach, and repetition
Cost per contact
Audience selectivity
Narrowcasting 13

21. Disadvantages of Television
Fleeting message
High absolute cost
Poor geographic selectivity
Poor audience attitude and attentiveness
DVR/TiVo ad avoidance
Clutter 13

22. 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 13

23. Measuring Television Audiences
Source for network and local audience information:
A. C. Nielsen
Arbitron provides network information
Controversy in measurement
DVR effect on “commercial” viewership vs. program viewership 13

24. 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 13

25. Measures of TV Audiences
Program Rating
Percentage of TV households in a market that are tuned to a program during a time period.
Program Rating =
TV households tuned to a program
Total TV households in the market
CSI Rating =
19,500,00
95,900,00
= 20 Rating 13

26. Measures of TV Audiences
Share of Audience
Proportion of households using television (HUT) in a specific time period that are tuned to a program
Program Share =
TV households tuned to a program
Total TV households using TV
CSI Miami =
19,500,00
65,000,00
= 30 Share 13

27. Controversy in Television Ratings
DVR ad skipping has not been fully accounted for
Advertisers do not want to pay for “skipped” ads
Nielsen has come up with new measurement tools to account for skipping 13

28. 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 increases viewer satisfaction
Massive consolidation of media companies into many TV categories 13

29. Radio Radio categories Radio networks Radio syndication AM versus FM
Satellite radio
Internet/mobile radio
Smartphone access
Types of radio ads
Local spot radio
Network radio advertising
National spot radio advertising 13

30. Satellite radio is growing rapidly in popularity—bad news for advertisers?
Sirius Satellite Radio. Creative by Crispin, Porter & Bogusky, Miami

31. Radio Advantages and Disadvantages
Cost
Reach and frequency
Target audience selectivity
Flexibility
Creative opportunities (theater of the mind)
Disadvantages
Poor audience attentiveness
Creative limitations
Fragmented audiences
Chaotic buying procedures 13

32. 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 13

33. The Future of Radio Effect of subscription radio/satellite
Emerging technologies and new media—Internet, mobile, HD radio
Consolidation of stations and broadcasting 13

34. Check Your Understanding
A company imports exotic herbs and spices for cooking and wants to use television to reach a narrowly defined target market of people interested in the culinary arts. The company would be best advised to use
cable television.
network television.
off-network syndicated television.
first-run syndicated television. 13

35. Check Your Understanding
The owners of Kelly & Kallihan Funeral Home want their ads to appear alongside the obituary notices in the newspaper. What kind of space should they buy?
run-of-paper
preferred position
run-of-press
full position 13