Canadian Advertising in Action Chapter 8 Print Media: Newspapers and Magazines © 2006 Pearson Education Canada Inc.

Learning Objectives Identify newspaper and magazine classifications for Canadian advertisers Explain newspaper and magazine advertising advantages & disadvantages Assess considerations and processes of print advertising Understand print advertising terminology Assess technology influences on print media © 2006 Pearson Education Canada Inc.

Newspaper Advertising Newspapers are published in two forms: broadsheets and tabloids. There are four types of advertising: Display (National and Retail) Retail Classified Pre-printed Inserts Tabloids - flat with only a vertical centrefold Broadsheets - larger papers folded horizontally in the middle Advertising accounts for roughly 60% of newspaper space. There are two broad forms of advertising: display and classified: Display - advertising in any part of the publication by reatilers or national advertisers. Classified - one of the most read sections of a newspaper. (buy, sell, rent, obtain, etc.) Additional revenues are generated from pre-printed inserts. © 2006 Pearson Education Canada Inc.

Advantages & Disadvantages of Newspapers Short life span Lack of target market capability Clutter Reproduction quality Geographic selectivity Coverage and Reach Flexibility Reader involvement Suitable for large & small budgets Geographic Selectivity - market-by-market placement for national advertisiers based on priority of market Local Market Coverage - effective reach of broad cross-section of adult population Flexibility - size options and flexform advertising available. Also, placement can occur on short notice. Involvement - a habit-forming, personal medium. © 2006 Pearson Education Canada Inc.

Buying Newspaper Space: Agate Lines Each column inch of depth in a newspaper contains 14 agate lines. If an ad is 4 columns wide by 10 inches deep, the number of lines in the ad would be: 4 x 10 x 14 = 560 agate lines. If the ad ran 10 times, the total number of lines would be: 560 x 10 = 5,600 agate lines Total agate lines are multiplied by the line rate. This is an example of a calculation for newspapers that define space in terms of columns and column inches (a majority of present day newspapers use this system). The key number in the calculation is the 14 agate lines per column inch. To determine the cost, the total number of lines would be multiplied by the appropriate line rate. © 2006 Pearson Education Canada Inc.

Buying Newspaper Space: Modular Agate Lines Modular Agate Lines (MAL): An ad is expressed in terms of units of width and depth. Each unit contains 30 agate lines. If an ad is 2 columns wide and 5 units deep, the calculation of total MAL is: 2 x 5 x 30 = 300 MAL The number of lines is then multiplied by the line rate. There are two ways to determine the amount of lines in a newspaper ad. If a paper uses the CNU system, each unit contains 30 agate lines. If a paper uses the column inch system then there are 14 agate lines per column inch. Newspapers specify their system in Canadian Advertising Rates and Data (CARD). In this illustration the CNU system is explained If this ad were to run say 10 times, the total number of lines would be 3000. In CARD you would look up the line rate for 3000 lines. © 2006 Pearson Education Canada Inc.

Additional Features of Newspapers Preferred Positions (more costly, targeted to particular readers) Colour (more costly, but stronger impact) Multiple-page Charges Preprinted Inserts Split Runs Preferred Position - requesting a certain position adds to the cost of advertising (e.g., near the front of the paper or in a specific section of the paper). Colour - significant increases in costs occur when colour is added. Four colour is very expensive and there are minimum size requirements for 4-colour ads. Pre-printed Inserts - advertisers pay a distribution fee on a cost per thousand basis to insert flyers into a newspaper. Split Runs - using one-half of a newspapers circulation to run different ads © 2006 Pearson Education Canada Inc.

Comparing Newspapers for Efficiency Cost and circulation are used to determine efficiency. A comparison is made on the basis of what it costs to reach 1,000 people. When deciding on which newspapers to advertise in (e.g., in markets where there is more than one newspaper), each paper is compared for efficiency. Cost and circulation are used as the basis for comparison. Cost divided by the circulation in thousands produces a CPM figure. CPM = Unit Cost of Ad Circulation (000) (in thousands) © 2006 Pearson Education Canada Inc.

Comparing Toronto Newspapers In this CPM illustration the Star and the Sun are close to each other in terms of CPM. If reach is an objective, each ad in the Star will reach more people. The Globe is much more expensive but it reaches a more upscale demographic. If the target market is business-oriented then the Globe may be the preferred choice even though the CPM is much higher. Qualitative assessments must be considered along with quantitative assessments. © 2006 Pearson Education Canada Inc.

Magazines in Canada Magazines are classified in many ways: Content and Audience Reached Consumer Business (both horizontal & vertical) Circulation Base Paid circulation Controlled circulation © 2006 Pearson Education Canada Inc.

Magazines in Canada Frequency and Regional Availability Weekly and Monthly National, regional and city Size and Format Digest Standard Large-format © 2006 Pearson Education Canada Inc.

Advantages & Disadvantages of Magazines Long lead time Cost Clutter Low Frequency Demographic Selectivity Geographic Flexibility Life Span Environment Quality / Creative Pass-along Readership Demographic Selectivity - a class medium rather than a mass medium Geographic Flexibility - availability of regional editions and in some cases key market editions Life Span - monthly means multiple viewings by a subscriber; tends to stay in the home for extended periods. Quality - excellent editorial environment; well-read by subscribvers © 2006 Pearson Education Canada Inc.

Magazine Readership Primary Readers A reader who lives (works) at the location where the magazine is received. Passalong Readers Someone who reads the publication but does not live (work) where publication is received. Primary + Passalong = Total Readership © 2006 Pearson Education Canada Inc.

Readers per Copy The actual number of readers will influence advertising decisions. Magazine Circulation Readers per Copy Readers Reader’s Digest 1 233 2.6 3 168 Chatelaine 815 2.2 1 766 Maclean’s 505 3.3 1 669 © 2006 Pearson Education Canada Inc.

Features of Magazines Bleeds Gatefolds Preferred Positions Inserts and Reply Cards Split Runs Bleed - colour of ad runs off the page (borderless). Preferred Position - requesting a certain position adds to the cost of advertising. Covers are 20%+ more expensive than regular pages. Gatefolds - multiple page ads that fold out. A popular spot is the inside front cover. Inserts and Reply Cards - gluing items into a publication (referred to as tipping) or stapling in separate publications is becoming popular. Split Runs - using half of a publication’s circulation for advertising purposes (e.g., running two different ads in one publication using half the circulation for each). © 2006 Pearson Education Canada Inc.

Buying Magazine Space Ad costs are determined by multiplying cost (size) by frequency (number of insertions). If the cost of a 1 page, 4-colour ad was $20 000 and the ad ran 8 times, the total cost would be: $20 000 x 8 = $160 000 Additional discounts may apply. See rate card. © 2006 Pearson Education Canada Inc.

Comparing Magazines Homemaker’s Chatelaine Canadian Living 1pg, 4-colour rate $21 260 $41 750 $31 865 Circulation 501 402 704 779 543 826 CPM $42.40 $59.23 $58.59 Source: Canadian Media Director’s Council Media Digest, 2003-2004 p. 45 In this CPM comparison Homemaker’s is outright winner in terms of efficiency. However, the merits of a controlled circulation magazine should be compared to a subscription-based magazine in this case. Students often question whether people actually read magazines they get for free. © 2006 Pearson Education Canada Inc.

Comparing Magazines Homemaker’s Homemaker’s Chatelaine Chatelaine Canadian Living Chatelaine Canadian Living In this CPM comparison Homemaker’s is outright winner in terms of efficiency. However, the merits of a controlled circulation magazine should be compared to a subscription-based magazine in this case. Students often question whether people actually read magazines they get for free. Visit each of the above sites; compare and contrast their focus, features, and apparent targets. Compare to the hard-copy versions. © 2006 Pearson Education Canada Inc.

Discounts Offered by Print Media Frequency Number of lines, times, etc. Continuity Length of time Volume $ spent Products combine lines, times, etc., for better rate Corporate © 2006 Pearson Education Canada Inc.

Technology & Print Media Audiences can be reached differently Most print media also have websites Key news & feature articles online News updates Online polls Banner ads Sponsorships Some expansion to specialty television © 2006 Pearson Education Canada Inc.