Chapter 11 Media Characteristics Key Points:  What are media and how are they classified?  What are the important characteristics of print media?  What do media planners need to know about broadcast media?  Why are out-of-home media useful in a media plan?

What is the media? The “media”: The umbrella term that includes all types of print and electronic communication (TV, radio, newspapers, magazines, outdoor, mail, etc.)

Print Media Newspapers Magazines Directories Direct Mail Brochures (Collateral Material) Packaging

Magazines Paid-circulation Readers pay to receive it Most revenue comes from ads Paid-circulation Readers pay to receive it Most revenue comes from ads Controlled – circulation Readers get it free All revenue comes from ads Controlled – circulation Readers get it free All revenue comes from ads Paid-circulation Readers pay to receive it Most revenue comes from ads Paid-circulation Readers pay to receive it Most revenue comes from ads 2 Basic types

Sample Print Costs USA Today - ½ page ad $61K Wall Street Journal - ½ page ad $110K Business Week - full page $100K Golf Magazine - full page $95K Field and Stream - full page $120K Road and Track - full page $100K Fortune - full page $77K Forbes - full page $83K Sports Illustrated - full page $97K Food & Wine - full page $58K

Top 10 Canadian publications Magazine Paid Subscriptions 1. Reader's Digest 923, Chatelaine 645, Canadian Living 527, Maclean's 382, TV Guide 304,822 Source: Audit Bureau of Circulations July 2006

Broadcast Two major types of broadcast media:  Television  Radio

Broadcast Audience Measurement Ratings points: 1 rating point = 1% of a communication vehicle’s coverage area exposed to a broadcast program Example: Super Bowl “40 national rating” means 40% of all U.S. households were tuned in

Audience Measurement Broadcast media measured in terms of rating points Ratings based on a communication vehicle’s coverage area in terms of geography and target profile Ratings only a measure of households with a TV or radio on and tuned to a certain program – NOT the number of people paying attention to commercials

Methodology Nielsen “Box” (Peoplemeters) electronic box on TV set red & green lights corresponding to members of family people ‘log in’ when watching to activate their light station being watched is recorded data downloaded via telephone lines at night

Problems Miss ‘out of home’ viewers (e.g. Sportsbars) Doesn’t measure taped shows People forget to activate/de-activate lights Zapping & Surfing

Problems High attrition rate Memory bias Social acceptance bias

Radio Event sponsorships (concerts, festivals, etc.) On-air promotions (brand giveaways) Remote broadcasts at the brand’s location Live brand mentions by DJs :10, :30 or :60 pre-recorded commercials (“spots”) On-air promotions (brand giveaways) Remote broadcasts at the brand’s location Live brand mentions by DJs :10, :30, or :60 pre-recorded commercials (“spots”)

Radio Dayparts & Listeners

Television Local Spot Syndicated Network National Spot Cable Infomercial Cable Syndicated Local Spot National Spot Network TV Advertising TV Advertising

Out of Home (OOH) Communication vehicles that the target audience sees or uses away from home

Outdoor  Billboards  Transit Ads  Prices quoted as showings e.g “50 showing” = 50% of the market’s population is exposed per day

Cinema and Video Movie Trailers Theatre Kiosks, Lobby Signs Video Rental Messages Airline in-flight

Chapter 12 Internet and Interactivity Key Points:  What are the important aspects of interactivity in IMC?  In what ways has the internet affected MC efforts?  How can a company integrate the internet into building brands and customer relationships?  What are the key customer concerns about online marketing?

Internet Media As a Mass Medium: Banner Ads As an Addressable Medium: Messages As a Mass Medium: Banner Ads Flexibility As an Interactive Medium: Live Chat

Online Advertising Precise Targeting Quick Results Interactive More Flexible Measurable Quick Results Precise Targeting More Flexible Interactive Advantages

Online Ad Types Banner Static ad; vertical format called “skyscrapers” Interstitial Pop ups that appear in a separate frame on the screen page Pop-ups and Pop-unders when viewers open or close a page or a site

Online Ad Costs Ads are Priced in 2 Ways: Impressions $1 per 1,000 for a banner Impressions $1 per 1,000 for a banner Click-throughs $0.55 for a banner Click-throughs $0.55 for a banner Impressions $1 per 1,000 for a banner Impressions $1 per 1,000 for a banner Click-throughs $0.55 for a banner Click-throughs $0.55 for a banner Compared with traditional MC: Average banner CPM is higher than :30 TV CPM on network prime time TV

Online ad response 2 common measures Click-through 3-5 individuals click on ad—per thousand Click-through 3-5 individuals click on ad—per thousand Purchase 1 of 20,000 Purchase 1 of 20,000 Compared with traditional MC: Average banner ad response lower than direct mail Click-through 3-5 individuals click on ad—per thousand Click-through 3-5 individuals click on ad—per thousand Purchase 1 of 20,000 Purchase 1 of 20,000

Teens

Online Marketing Concerns 80% of consumers object to selling personal data 52% think tracking on-line activity is privacy invasion 56% don’t know how cookies work

Chapter 13 Advertising and IMC Media Planning Key Points:  What are the steps in media planning?  What is the difference between reach and frequency?  How do you determine a media mix?  What role does cost play in selecting media?  What are the factors involved in scheduling media buys?

Media Planning Key: maximize impact, minimize cost Goal: Get the Right message to the Right person at the Right time. Media often the largest budget item

Media Planning Process Media research Analyzing target audiences and media options Media planning Process of developing a good media plan Media buying Execution of a media plan Media research Analyzing target audiences and media options Media planning Process of developing a good media plan

Media Planners Perform four basic functions: Conduct media research Determine media objectives and strategies Determine the media mix Do the actual media buy

Your Media Diary? What did you find? Differences between your media habits and your parents? Grandparents?

Media Objectives Reach Frequency ( to be effective: 3-10 exposures) Impact

Effective Frequency The level of frequency will vary with: The offer – its complexity Attention value of the medium itself Attention-getting (creative) power of the message itself Target audience’s involvement MC objectives: inform, remind, persuade # of competitive brand messages

Media Scheduling

Gross Impressions VariableReachFreqContinuity Impressions Plan A500,00046 weeks12,000,000 Plan B 250,00086 weeks12,000,000 Plan C125, weeks12,000,000

Media Objectives Reach Frequency ( to be effective: 3-10 exposures) Impact GRPs

GRP calculation Gross Rating Points (GRPs) = Reach x Frequency Print example 50 reach X 5 insertions = 250 GRPs Broadcast example 6 (rating) X 5 (frequency) = 30 GRPs

Media Objectives  Also need to consider “media environment” or image of the media vehicle  Important to consider compatibility between a media vehicle’s image and the brand’s image

Media Costs CPM Radio A Radio B $20,000 Cost of a Radio Ad: $30,000 PeopleReached: 800,000 1,500,000 CPM: $300 x 1, ,000 $300 x 1, ,000 $85 x 1,000 65,000 $85 x 1,000 65,000 = $1 = $1.30 $300 $85 300,000 65,000

Comparing Media Costs MagazineCost (1p,4c) Circulation (000) CPM ROB$18, $51.69 NtlPostBus$15, $51.10 CdnBus$14, $ NewspaperCost (1000 lines) Circulation(000) CPM Globe&Mail$27, $75.33 NtlPost$15, $49.08 TO Star$15, $34.96 Rates from CARD

Media Costs Variables also include: Size of audience Quality of audience Quality of the media vehicle Level of attention and impact “Free” media

Key issues in media planning 1. Audience Characteristics - media habits? 2. Market Coverage desired - national? Regional? Local? - primary vs. secondary markets

Key issues in media planning 3. Timing - seasonality - dayparts 4. Competition - counter or avoid competition? - match weight?

Key issues in media planning 5. Budget - what is affordable? 6. Campaign/Message Objectives - persuasion needs more exposures 7. Media Weighting - 68% of media planners use judgmental weighting