Think and Answer Now If you were to introduce a new product for your company, which form of advertising would you choose? Explain why. Read main idea on slide 3

Objective List the components of media measurement. Identify how advertising costs are measured. Describe how media rates are determined.

The Main Idea Businesses need to reach as many targeted customers as possible. Many companies do this by advertising. It is important to calculate ad costs and measure media effectiveness to best reach a potential audience.

Key Concepts Media Planning Media Measurement Media Rates

Media Planning Media planning can help a business project the desired image to the target market. media planning the process of selecting advertising media and deciding the time and space in which ads should appear

Graphic Organizer Media Planning Questions 1.Can the medium present the product or service and the appropriate business image? 2.Can the desired customers be targeted with the medium? 3.Will the medium get the desired response rate?

Think and Answer on your Do Now sheet What advantages do print and cyber ads share? Turn in your HW if you were Absent last week If you were absent turn in last weeks Do Now sheet Final Exam 1/22

What advantages do print and cyber ads share? Print and cyber ads are high quality, full color, and sent directly to consumers.

Advertising Agencies Hiring an advertising agency can be an effective way to develop ads. advertising agency a business that specializes in developing ads and ad campaigns for its clients

Advertising Agencies An advertising agency can help a business develop an ad campaign. ad campaign a series of ad messages that share a single idea and theme

Media Measurement Media planners are concerned with:  the correct medium to use,  its costs, and its effectiveness. Media planners want their ads to reach the correct audience. Audience - the number of people exposed to an ad

Media Measurement Two media measurements are: impression a single exposure to an advertising message frequency the number of times an audience sees or hears an ad

Media Measurement Cost per thousand (CPM) is related to the number of people that read or see an ad. cost per thousand (CPM) the media cost of exposing 1,000 readers or viewers to an advertising impression The “M” in CPM comes from the word mille, which is Latin for “thousand.”

Media Audiences TV audience measurement is based on diaries and viewer data collected by Nielsen Media Research Inc. ® Arbitron Inc. ® uses listener diaries to measure radio audiences in more than 260 markets.

Media Rates Advertising uses a set formula that is defined in terms of time or space. A media rate or advertising rate is the amount of money it costs to display or broadcast an ad.

Graphic Organizer Factors Affecting Media Rates The size of an ad The number of people an ad reaches How often an ad appears When an ad appears Where an ad is placed

Print Media Ad Rates Ad rates for newspapers and magazines are based on circulation. Circulation is the number of people who buy a publication, and audience, the number of readers per issue.

Print Media Ad Rates Magazine and newspaper ads are sold by the inch on a page.

Graphic Organizer Here is the formula: Rate for a column inch is $17 You want an ad that measures four inches long by three columns wide A column inch is one column wide by one inch deep $17 X 4 inches X 3 Columns = $204 If a newspaper quotes a column inch rate, multiply the number of inches by the number of columns. Then multiply the total column inches by the rate.

Print Media Ad Rates Magazine rates are based on: Circulation The type of readership Production techniques Position (prime positions are more costly)

Broadcast Media Ad Rates Broadcast media ad rates depend on: The size of the audience The reach of the station The time of the day

Broadcast Media Ad Rates For TV, prime time is between 7 PM and 11 PM. For radio, prime time is the morning or afternoon hours (drive time). prime time the time period when the network TV or radio audience is the largest

Internet Ad Rates The cost of Internet advertising is based on: Type Size Ad Volume of monthly page views

1.What are the three basic questions advertisers must address in media planning? Can the medium present the product or service and the appropriate business image? Can the desired customers be targeted? Will the medium get the desired response rate?

2.Name the four components of media measurement. audience, impression, frequency, and cost per thousand (CPM)

3.Define media rate or advertising rate. The amount of money it costs to display or broadcast an ad.