1. Chapter Twelve Traditional Advertising Media

2. Chapter Twelve Objectives Describe the five major traditional advertising media Discuss out-of-home advertising and its strengths and limitations Discuss newspaper advertising and its strengths and limitations

3. Chapter Twelve Objectives Discuss magazine advertising and its strengths and limitations Discuss radio advertising and its strengths and limitations Discuss television advertising and its strengths and limitations

4. Media Vs. Vehicles Media The general communication methods that carry advertising messages e.g., television, magazines, newspapers, etc Vehicles Specific broadcast programs or print choices in which advertisements are placed e.g., Friends, NBC Evening News, Time, Cosmopolitan

5. Advertisers attempts to select the media and vehicles whose characteristics are most compatible with the advertised brand in reaching its target audience and conveying its intended message Traditional Major Advertising Media Out-of-home advertising MagazinesRadio Newspaper Television

6. Which Media Do It Best? Media Comparison Consider: Advertiser’s objectives Creative needs Competitive challenge Budget availability

7. Out-of-Home (Outdoor) Advertising $5 Billion in 2000 Regarded as supplementary e.g., billboard(major), bus shelters, giant inflatables, shopping-mall displays, etc

8. Out-of-Home (Outdoor) Advertising 400,000 billboards in the US Designed with name recognition as the primary objective Two major forms: (1) Poster Panels and (2) Painted Bulletins

9. Billboard Advertising Alongside highway and heavily traveled locale Silk-screened or lithographed Sold on a monthly basis Poster PanelsPainted Bulletins Hand painted directly on the billboard Purchased for 1-3 year period To achieve a consistent and relatively permanent presence

10. Billboard Advertising Example of a poster panel

11. Billboard Advertising Example of a painted bulletin

12. Buying Outdoor Advertising Purchased through companies that own billboards, called plants Plants sell space in terms of showings »Showings are percent exposed »#25: 25% of population exposed Recently, GRPs (gross rating points) are used

13. Outdoor Advertising’s Board reach and high frequency Geographic flexibility Low cost per thousand Prominent brand identification Opportune purchase reminder Nonselectivity Short exposure time Difficult to measure audience size Environmental problem

14. Newspapers 60 million households during week and nearly 62 million on Sundays Historically leading advertising medium but declining in recent years

15. Buying Newspaper Advertising Standard Advertising Units (SAU) Six column widths 1 column=2 1/16 inches Depth from 1” to 21 Premium charges for preferred space Space rates apply to ROP (Run of Press)

16. Newspaper Audience in right mental frame Mass audience coverage Flexibility Ability to use detailed copy Timeliness Clutter Not highly selective Higher rates for occasional advertisers Mediocre reproduction quality National Buying complicated Changing composition of readers

17. Magazine Advertising Hundreds of special - interest magazines

18. Buying Magazine Space Selecting magazines that reach the target market Cost considerations »Media Kits »CPM (Cost-per-thousand) »Mediamark Research, Inc. (MRI) »Simmons Market Research Bureau (SMRB)

19. Buying Magazine Space Rolling Stone adult demographic profile

20. Buying Magazine Space Cosmopolitan demographic profile

21. Buying Magazine Space Rolling Stone 1998 General Rate Card

22. Rate Card for Cosmopolitan Magazine Cosmopolitan Rate Card

23. Magazine Can reach large audiences Selectivity Long life High reproduction quality Detailed information possible Convey information with authority High involvement potential Not intrusive Long lead times Clutter Limited geographic options Circulation patterns vary by market

24. Simmons Market Research Bureau and Mediamark Audience size and composition for 100 publicationsAudience size and composition for 100 publications Broadcast exposure and usage of over 800 consumer products and servicesBroadcast exposure and usage of over 800 consumer products and services Lifestyle informationLifestyle information Media usageMedia usage

25. Simmons Market Research Bureau Number of adultsNumber of adults Number of usersNumber of users Percent of users in categories (i.e. female)Percent of users in categories (i.e. female) Percent of category using product (i.e. % of all females using)Percent of category using product (i.e. % of all females using) Index numberIndex number All by heavy, medium, and light userAll by heavy, medium, and light user

26. Index Numbers - Using SMRB and/or Mediamark % of users in segment Index =------------------------------------ % of population in segment

27. Potential Errors with Indexes Age segment % of population % of users Index

28. 231278648125544437152956 75781963218954132201066916421 Magazine Audience Measurement - MRI (Pretzel Purchasers) Base: Female Homemakers Total U.S. ‘000 A ‘000 B% Down C% Across D Index All Female Homemakers 86474 30416 100.0 35.2 100 7.625.926.717.912.29.7 30.540.142.941.234.818.0871141221179951 18-2425-3435-4445-5455-64 65 or older Total U.S. female homemaker population. Number of female homemakers who purchased in last six months. Number of female homemakers 18-24 in the population. Number of female homemakers 18-24 who purchased in the last six months. % of total purchasers who are 18-24. ( 2312 / 30416) % who purchased in last six months. ( 30416 / 86474 ) % of 18-24 YOs who have purchased in the last six months. ( 2312 / 7578 ) 18-24 YOs who purchased compared to total population who purchased. ( 30.5 / 35.2 )

29. Radio Advertising Nearly 100% of home and cars have radios

30. Buying Radio Advertising Matching station format with target market Geographic coverage using ADIs Day part choice

31. Radio Can reach segmented audiences Intimacy Economy Short lead times Transfer of imagery from TV Use of local personalities Clutter No visuals Audience fractionalization Buying difficulties

32. Television Advertising Nearly 98% of all households have televisions Uniquely personal and demonstrative yet expensive

33. Television Programming Segments 8p.m.-11p.m. (7p.m.-10p.m.) Prime Time Early morning news - 4:30p.m. Daytime Preceding and following prime time Fringe Time

34. Television Market product nationally Major networks (ABC, CBS, Fox, NBC) Expensive but can be a cost efficient means to reach mass audience Syndicated Network Spot Cable Local

35. Television Advertising is placed only in selected markets Regional-oriented marketing and geodemographic segmentation of consumer markets Syndicated Network Spot Cable Local

36. Television Syndicated programming occurs when an independent company markets a TV show to as many network-affiliated or cable TV stations as possible Syndicated Network Spot Cable Local

37. Television 80% of households with television sets narrow areas of viewing interest Cable subscribers are more economically upscale and younger Syndicated Network Spot Cable Local

38. Television Local advertisers are turning to television inexpensive during the fringe time Syndicated Network Spot Cable Local

39. Television Demonstration ability Intrusion value Ability to generate excitement One-on-one reach Ability to use humor Effective with sales force and trade Ability to achieve impact Escalating costs Erosion of audience Audience fractionalization Zipping and zapping Clutter

40. Informercials Introduced in the early 1980s Long commercial (28 to 30 minutes) The production cost is expensive Especially effective promotional tool for moving merchandise

41. Brand Placements in TV Programs Reason: fear that TV advertising is no longer as effective as it used to be Brand managers pay to get prominent placement for their brands “Survivor” program is the poster child for this trend Advertisers who purchased commercial time in “Survivor” got prime brand placement in the program

42. Television Audience Measurement Higher rated programs command higher prices Ratings are difficult to come by accurately One primary rating service—Nielsen’s People Meter and one under development—SRI’s SMART System

43. Television Audience Measurement Handheld device slightly larger than a TV remote—has 8 buttons for family members and two additional buttons for guests Records what programs are watched, how many households are watching, and which family members are in attendance Nielsen’s People Meter Technology

44. Television Audience Measurement Viewing information is combined with each household’s pertinent demographic profile Old system consisted of diary panels, but with the implementation of the People Meter the ratings dropped causing a controversy— Networks claimed faults in the People Meter resulted in erroneous ratings data Nielsen’s People Meter Technology

45. Television Audience Measurement Statistical Research Inc. (SRI) develops SMART—Systems for Measuring And Reporting Television Meters are attached to TV sets Sensors on the meters enable signals to be picked up from the air Viewers log in and out before and after watching TV using a control SRI’s SMART System

46. Television Audience Measurement Similar to Nielsen, however it is doubtful that SMART will become a reality Similar to Arbitron’s, of radio-audience measurement fame, ScanAmerica which was discontinued due to lack of industry support SRI’s SMART System