11-1 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Chapter 11 Media choices: evaluating media options 11-1

11-2 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Learning objectives 1.To examine the structure of specific media industries including broadcast, print, out-of- home and cinema and the role of each media channel in the IMC program. 2.To consider the advantages and limitations of each media channel. 3.To explain how audiences are measured and how rates are determined. 4.To consider future trends and how they will influence the use of media channels in IMC programs.

11-3 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Print Branded entertainment Newspapers TV Media choices Audience measurement Product placement and computer games Digital impact Radio Out-of-home Media buying Broadcast Promotional products Future trends Advantages and imitations Social media Cinema Magazines

11-4 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media engagement

11-5 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Share of advertising expenditure by main media: Australia % share

11-6 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Share of advertising expenditure by main media: New Zealand Source: Advertising Standards, New Zealand, % share

11-7 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Print Branded entertainment Newspapers TV Media choices Audience measurement Product placement and computer games Digital impact Radio Out-of-home Media buying Broadcast Promotional products Future trends Advantages and imitations Social media Cinema Magazines

11-8 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Television penetration and reach 90% of TV households own VCR 68% of TVs are digital Approx 13.5 million people watch TV on any given day The average Australian watches approx 3 hours of TV per day

11-9 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Television advantages Selectivity and flexibility Captivity and attention Coverage and cost effectiveness Creativity and impact 11-9

11-10 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Television disadvantages Low selectivity Low selectivity Fleeting message Fleeting message Cost Clutter Distrust Negative evaluation Negative evaluation Negative factors Negative factors Limited attention Limited attention Zipping Zapping

11-11 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Top 10 network TV advertisers: Australia 2009

11-12 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Top 10 TV advertisers, New Zealand 2009 Company/ Brand TV Spend ($millions) Reckitt Benckiser NZ37.16 Unilever Australasia32.54 BrandWorld26.36 NZ Lotteries Commission23.79 Harvey Norman23.58 L'Oreal22.18 The Warehouse20.48 Progressive Enterprises19.43 NZ Transport Agency19.09 Telecom Corp Of NZ18.67 Mitre 10 NZ18.16 Source: Nielsen Media Research, New Zealand, AIS Data, 2009

11-13 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Foxtel advertising

11-14 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Television formats: Australia Public broadcasters TV formats Metropolitan: (FTA) Regional: (FTA) Subscription: (STV) Community TV Digital transmission

11-15 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Television formats: New Zealand Public broadcaster (TVNZ) Pay television Private networks Regional and niche broadcasters Maori TV TV formats 11-15

11-16 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Buying TV advertising time National: Spots purchased across major networks Local: Commercials shown on local stations Sponsor entire program Spot announcements between programs Spot buying Sponsor- ship

11-17 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell TV dayparts 11-17

11-18 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Subscription TV: national report

11-19 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Measuring the TV audience: key measures HH (or PPL) tuned to show HH (or PPL) using TV Share = Share of audience HH (or PPL) tuned to show Total HH (or PPL) Rating = Program rating

11-20 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Measuring the TV audience: key measures (cont.) Target audience ratings points (TARPs) TARP = Number of PPL in a target audience reached by a media buy Potential target audience for media buy x 100

11-21 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell The future of TV: new delivery modes Personal video recorders enable recording and storing of TV programs for subsequent viewing PVRs/VOD Superior viewing experience and increased variety of promotional opportunities and audience engagement Digital Continued growth of subscription TV Subscription Interactive TV allows audiences to interact with program in real time via phone or internet connections Infomercials

11-22 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Radio penetration and reach 261 Australian radio stations (110 AM FM) 261 Australian radio stations (110 AM FM) 37 million radios in use 89% of households have 3+ radios, and 99 % of cars have a radio Radio reaches 61% of all Australians each day and 77% every week Commercial breakfast radio attracts audiences of over 6.6 million p.w.

11-23 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Radio advertising

11-24 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Advantages and limitations of radio Audience fragmentation Limited research data Creative limitations Chaotic buying Limited listener attention Cost and efficiency Selectivity Flexibility Mental imagery Integrated marketing opportunities Clutter AdvantagesDisadvantages

11-25 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Commercial Radio Australia

11-26 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Radio survey: Sydney 2010

11-27 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Radio survey: Melbourne 2010

11-28 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Buying radio time Three national networks ( Austereo, Australian Radio Network and DMG) Three national networks ( Austereo, Australian Radio Network and DMG) Over 217 regional networks The majority of radio advertisers are local The majority of radio advertisers are local Network radio Local radio

11-29 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Radio dayparts

11-30 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Print Branded entertainment Newspapers TV Media choices Audience measurement Product placement and computer games Digital impact Radio Out-of-home Media buying Broadcast Promotional products Future trends Advantages and imitations Social media Cinema Magazines

11-31 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Magazines: penetration and reach 230 million+ magazines are purchased annually (13 mags for every person aged 14+). 8 in 10 people read 1+ magazines (84% of females & 76% of males). Combined reach of the top 5 magazines is 53% of all females aged 14+. Growth in digital magazine advertising expected as consumers adopt tablets. Source: Magazine Publishers Association of Australia

11-32 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Classifications of magazines By audience Consumer magazines Business magazines Custom magazines Consumer magazines Business magazines Custom magazines By delivery Newspaper inserted magazines Street press Newspaper inserted magazines Street press

11-33 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Business magazines

11-34 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Custom magazines

11-35 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Advantages and disadvantages of magazines Limited reach Long lead time Costs Limited frequency Clutter Selectivity Reproduction quality Creative flexibility Permanence Prestige Receptivity & involvement Services Advantages Disadvantages

11-36 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell High reach consumer magazines: Australia 2010 Rank, Magazine TitleCirculationReadership (000s) 1 Australian Women’s Weekly486,1792,208 2 Woman’s Day385,0162,012 3 Better Homes & Gardens384,5121,938 4 New Idea316,5271,484 5 Reader’s Digest266, That’s Life261,3111,102 7 Superfood Ideas255,2561,024 8 Take 5217, TV Week187, Cosmopolitan150, Masterchef Magazine150, Delicious134, Who131, Woolworths Good Taste127, Recipes+126, Australian Geographic120, Family Circle120,532* 18 NW116, Cleo110, Australian House & Garden108,

11-37 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell High reach consumer magazines: New Zealand 2010 RankMagazine Title (ranked on circulation) CirculationReadership (000s) 1AA Directions542, SKYWATCH535,5911,040 3TV Guide147, New Zealand Woman's Day105, New Zealand Woman's Weekly80, Australian Women's Weekly (NZ edn)80, Reader's Digest (NZ)67, New Zealand Listener63, Cuisine54, New Idea50, Healthy Food Guide50, NZ House & Garden48, New Zealand Gardener48, Next46, Foodtown Magazine45, That's Life!39, Simply You35, Your Home and Garden34, Mindfood 31, Taste 28,

11-38 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Creative flexibility with magazines

11-39 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Receptivity and involvement

11-40 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Magazine circulation and readership Primary circulation Primary circulation Pass-along readership Pass-along readership Readership Circulation audit Circulation audit Circulation Controlled circulation Controlled circulation

11-41 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Purchasing magazine advertising space Inserts, gatefolds, tip-ons, cover mounts, etc. Spot colour (black plus one other colour) Mono (black ink on stock paper) Four colour Contract rates Casual insertion Magazine networks Size Colour Purchase frequency & volume Inserts & other Full page (PF) Half page, quarter page

11-42 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell The future of magazines Database marketing Advances in technology Cross-magazine and media deals Circulation management Stronger editorial platforms Declining ad revenues Online delivery methods Magazine trends

11-43 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Magazines and technology

11-44 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Newspapers: penetration and reach Australians spent approx $1.3 billion buying newspapers in 2010 In Melbourne, the two daily papers enjoy a reach 72% p.w. In Sydney, the two dailies reach 61% p.w. One million Australians have downloaded newspaper branded apps. Growth in digital newspaper advertising expected as consumers adopt tablets. Source: Newspaper Publishers Association of Australia

11-45 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Newspaper types Broadsheet Tabloid Size General news, business/ finance Specialist: e.g. agricultural Audience Weekly Publication frequency Daily Regional National Community Coverage 11-45

11-46 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Newspaper advertising Run of paper (ROP) Page advertising Preferred positions Contract rates By negotiation Inserts, tip-ons, etc. Size and position Column centimetre (SCC) Combination rates Casual rates Volume

11-47 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Unique newspaper features Extensive penetration Flexibility Reader involvement and acceptance Geographic selectivity

11-48 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Flexibility

11-49 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Creative placement

11-50 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell The future for newspapers Attracting and retaining readers Competition from other media Circulation Digital news & fee for service Challenges for newspaper publishers

11-51 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Print Branded entertainment Newspapers TV Media choices Audience measurement Product placement and computer games Digital impact Radio Out-of-home Media buying Broadcast Promotional products Future trends Advantages and imitations Social media Cinema Magazines

11-52 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Support media Out-of-home media Promotional products Cinema Branded entertainment Product placement Point-of- purchase Support & alternative media

11-53 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell OOH: penetration and reach Research findings suggest that OOH results in sustained and persistent brand awareness Out-of-home advertising is growing at 19% per annum Outdoor provides a continuous 24/7 presence. OOH, when used to complement TV, results in 30% improvement in recall of TV advertising Source: Outdoor Media Association of Australia

11-54 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Out-of-home media

11-55 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Out-of-home (cont.)

11-56 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Out-of-home (cont.)

11-57 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Promotional products

11-58 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Cinema: penetration and reach In an average month, 29% of Australians will attend the cinema. People aged years have the highest cinema participation rates (46%). Australia has 1,994 cinema screens plus 452 digital screens with a collective seating capacity of 453,000 seats. Source: Screen Australia

11-59 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Advantages and disadvantages of cinema Irritation Costs Exposure Recall Mood Lack of clutter Cost efficiency Proximity Segmentation Advantages Disadvantages

11-60 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Advantages and disadvantages of branded entertainment Time of exposure High absolute costs Exposure Frequency Support for other media Source association Cost efficiency Recall Bypassing regulations Advantages Disadvantages Acceptance Targeting Limited appeal Lack of control Public reactions Competition and clutter Negative placements

11-61 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Summary and conclusions  Advertisers must select the optimal way to reach and involve audiences from a very wide array of media and channels.  To evaluate different media, advertisers consider a range of quantitative and qualitative aspects including:  reach  frequency  cost efficiency  media environment  geographic and demographic selectivity  media engagement and involvement.