1. A DVERTISING CHAPTER 14

2. W HY I T ’ S I MPORTANT Businesses rely on advertising to get your attention and to promote their products. Advertising pays for many of the costs of TV, radio, newspapers, and magazines.

3. A DVERTISING Advertising is the paid, nonpersonal form of communication that businesses use to promote their products.

4. A DVERTISING M EDIA Mass media are means of communication such as TV, radio, and newspapers.

5. A DVERTISING M EDIA The type of medium an advertiser uses depends on the market it wants to reach.

6. CATCHY SLOGANS Advertising slogans have become so well known in many cases that people all over the country recognize them. Here are ten slogans from advertisements. How many of the products or services can you name?

7. P RINT M EDIA Print media use writing and pictures to communicate

8. N EWSPAPERS Newspapers are the main advertising medium in the United States. More than 50 percent of adults in the United States read newspapers. Advertisers can target people within a certain area. The cost of printing an ad is fairly cheap. Most people throw their newspapers away after they read them, so an ad’s lifespan is usually short.

9. M AGAZINES Most magazines are national in scope and appear every week or every month. Special-interest magazines like Teen and Sports Illustrated make it possible to reach target markets on a large scale. People take their time to read magazines and often save them, so magazine ads have a much longer lifespan than newspaper ads. Most magazines are printed in color with much higher quality ink and paper than newspapers.

10. M AGAZINES Magazines are so broadly circulated they are of little use to local advertisers. Magazine ads can’t be easily changed or used to promote a limited offer.

11. Graphic Organizer Qualities of Newspaper and Magazine Advertising Graphic Organizer Narrow Circulation Local/regional reach Short lifespan Easy preparation Basic printing and paper Inexpensive Broad circulation Regional/national reach Long lifespan Complex preparation Quality printing and paper Expensive Newspaper Advertising Magazine Advertising

12. D IRECT -M AIL A DVERTISING Direct-mail advertising consists of ads sent by mail to people’s homes. It is the biggest advertising medium after TV and newspapers. Direct mail allows advertisers to reach a specific target market. Direct-mail advertisers can use a variety of formats—letters, fliers, postcards, and catalogs— and include coupons or free samples. The cost of sending ads through the mail can be very high.

13. D IRECT -M AIL A DVERTISING Direct mail is often referred to as “junk mail” because people who receive direct-mail advertising often throw it out without ever looking at it.

14. D IRECTORY A DVERTISING Directory advertising, which consists mostly of phone books, is especially useful for local advertisers. The cost of a directory ad is usually very cheap. Phone books are used in almost every home, in all areas, and kept for at least a year. A disadvantage of directory ads is that they have to compete with numerous similar ads.

15. O UTDOOR A DVERTISING The most common form of outdoor advertising is a billboard. They are useful for local businesses and businesses that cater to travelers. The main disadvantage of billboards is that people often drive by them too quickly to notice.

16. T RANSIT A DVERTISING Transit advertising usually consists of posters placed on the sides of buses, in subway stations, inside trains, and at airports.

17. B ROADCAST M EDIA Broadcast media are the most effective means of advertising.

18. T ELEVISION Television has an advantage over any other medium because it combines sounds, images, and motion. Some ads are so effective that they become part of our everyday language. TV ads can be shown on national, local, or cable stations to reach any kind of market An infomercial is a TV program, usually 30 minutes long, made to advertise a product. The biggest disadvantage of TV ads is that they can be very expensive to produce. Advertisers also have to pay to broadcast an ad during a TV show.

19. R ADIO Like TV ads, radio ads can reach a very wide audience. Radio ads use music, dialogue, and sound effects creatively to get an audience’s attention. Radio stations broadcast within certain areas so they are a good medium for local advertising. Advertisers can reach people on the move.

20. W EBCASTING A webcast is like a TV or radio broadcast but it is sent and received over the Web. A webcast usually consists of a live broadcast made by a Web camera (or “cam”) crew hired to film a specific location or event.

21. C YBER A DS Cyber ads – appear on the Internet. displayed like magazine ads. can be sent directly to people on mailing lists and can include order forms like direct-mail ads. an added advantage in that they can use sound effects and animation. Pop-up ads appear for a few seconds when you first log onto the Internet or when you click on a site. Banner ads are displayed across the top or bottom of the screen and remain there. Screen ads appear at the left or right of the screen and can be printed for future reference.

22. M EDIA P LANNING Media Planning is the process of selecting advertising media and deciding the time and space in which the ads should appear. To create the media plan and select the right medium to use advertisers address 3 basic 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?

23. Advertising agency is a business that specializes in developing ads and ad campaigns for its clients. Ad Campaign is a series of ad messages that share a single idea and theme Ad agencies vary in size from small that serve regional markets to large international firms. A DVERTISING A GENCIES

24. A DVERTISING R ATES M EDIA M EASUREMENT The number of people exposed to an ad is called the audience A single exposure to an advertising message is called an impression. Frequency – is the number of times an audience sees or hears an ad Cost Per Thousand (CPM) is the media cost of exposing 1,000 readers or viewers to an advertising impression. (The “M” in CPM come from the word Mille, which is Latin for thousand)

25. M EDIA A UDIENCE TV audience measurement is based on diaries and viewer data collected by Nielsen Media Research Nielsen Media Research takes a sample of TV viewers in moree than 200 markets. Arbitron Inc uses listener diaries to measure radio audiences in more than 260 markets Online audiences are measured through online tracking services such as Google Analytics, surveys, and computer software tracking systems.

26. The rates charged by various media Knowing the potential audience How frequently your ad will be seen Its CPM M EDIA A UDIENCE

27. M EDIA R ATES Set format in terms of time (60-second TV or radio ad) or space (a half-page newspaper ad) Media costs vary greatly Type of media Geographic location Audience Media rate or advertising rate is the amount of money it costs to display or broadcast an ad It’s a separate cost from what it costs to make the ad

28. A DVERTISING R ATES M EDIA M EASUREMENT The factors that determine advertising rates are: The size of an ad The number of people it reaches How often it appears When it appears Where it is placed

29. This chart shows the five companies who spent the largest sums of money on advertising in a recent year. General Motors Corporation, for example, spent about $3.7 billion on advertising. BIG SPENDERS

30. P RINT M EDIA Newspaper and magazine rates are based on circulation, or the number of people who read them. Advertiser pays a rate for every 1,000 CPM a magazine or newspaper reaches Newspaper and magazine ads are sold by the inch on the page. Rate for a column inch X # inches X # columns = RATE Premium Position : ad placement Prime Positions : Ads that appear on the front or back cover of a magazine cost more than ads inside the magazine.

31. B ROADCAST M EDIA The cost of radio and TV ads depends on the size of the audience, the reach of the station and the time of day an ad. Prime Time is the time period when the network TV or radio audience is the largest. TV 7PM – 11Pm Radio – Drive Times morning and afternoon The cost to advertise on a national network is much more expensive than on a local station. Radio and TV advertisers usually pay for ads that are 10, 30, or 60 seconds long.

32. T HE I NTERNET The cost of Internet advertising is based on the size and format of ads. The length of time an ad runs also affects the price. Internet advertisers pay a certain amount for every 1,000 people that receive the ad. The advertiser pays a fee to the search engine whenever someone clicks on the ad. The advertiser that bids the highest for a particular keyword has its ad show up first on the list of ads next to the search results.