1. OverviewOverview The World of Media

2. US Ad Spending by Medium

3. Today’s Media World 3 Major Ad Media Categories: 3 Major Ad Media Categories: l Print s Newspapers s Magazines s Out-of-Home l Broadcast s Radio s Television l Other Media s Direct Mail, Yellow Pages, etc s New Media

4. Today’s Newspapers n SIX TYPES OF ADVERTISING 1. Local Display Ads 2. National Ads

5. Today’s Newspapers n SIX TYPES OF ADVERTISING 1. Local Display Ads 2. National Ads 1. Local Display Ads 2. National Ads 3. Legal Advertising

6. Today’s Newspapers n SIX TYPES OF ADVERTISING 1. Local Display Ads 2. National Ads 3. Legal Advertising 1. Local Display Ads 2. National Ads 3. Legal Advertising 4. Classified Ads

7. Today’s Newspapers n SIX TYPES OF ADVERTISING 1. Local Display Ads 2. National Ads 3. Legal Advertising 4. Classified Ads 1. Local Display Ads 2. National Ads 3. Legal Advertising 4. Classified Ads 5. Pre-prints

8. Today’s Newspapers n SIX TYPES OF ADVERTISING 1. Local Display Ads 2. National Ads 3. Legal Advertising 4. Classified Ads 5. Pre-prints 1. Local Display Ads 2. National Ads 3. Legal Advertising 4. Classified Ads 5. Pre-prints 6. Coupon Ads

9. Today’s Newspapers n SIX TYPES OF ADVERTISING 1. Local Display Ads 2. National Ads 3. Legal Advertising 4. Classified Ads 5. Pre-prints 6. Coupon Ads 1. Local Display Ads 2. National Ads 3. Legal Advertising 4. Classified Ads 5. Pre-prints 6. Coupon Ads l ROP (Run of Press) l FSI (Free Standing Inserts) l ROP (Run of Press) l FSI (Free Standing Inserts)

10. Today’s Magazines n Three Types of Magazines: l Consumer

11. Today’s Magazines n Three Types of Magazines: TV Guide - Publisher 4th largest in circulation 4th largest in circulation TV Guide - Publisher 4th largest in circulation 4th largest in circulation l Consumer s General

12. Today’s Magazines n Three Types of Magazines: s General l Consumer AARP Bulletin #1 in circulation #1 in circulation AARP Bulletin #1 in circulation #1 in circulation s Specialized

13. Today’s Magazines n Three Types of Magazines: s General l Consumer s Specialized Bride’s Condé Nast #1 in ad pages Bride’s Condé Nast #1 in ad pages

14. Today’s Magazines n Three Types of Magazines: Business Week McGraw Hill Business Week McGraw Hill s General s Specialized l Business or Trade l Consumer

15. Today’s Magazines n Three Types of Magazines: AdWeek - BPI- Trade magazine AdWeek - BPI- Trade magazine s General s Specialized l Business or Trade l Consumer

16. l Journals & Newsletters Today’s Magazines n Three Types of Magazines: Journal of Advertising Education scholarly journal scholarly journal Journal of Advertising Education scholarly journal scholarly journal s General l Business or Trade l Consumer s Specialized

17. SRDS n Standard Rate & Data Service l Advertising rates l Discount structures l Other important information l Printed & Online l Virtually all media n Standard Rate & Data Service l Advertising rates l Discount structures l Other important information l Printed & Online l Virtually all media

18. CPM - Cost Per Thousand n Cost efficiency n Formula: cost x 1,000 / audience n Example: $65,000 ad 895,000 circulation $65,000 x 1,000 / 895,000 = $72.63 n Cost efficiency n Formula: cost x 1,000 / audience n Example: $65,000 ad 895,000 circulation $65,000 x 1,000 / 895,000 = $72.63

19. Out-of-Home n Outdoor consists of: l Bulletins l 30 sheets l 8 sheets l Bulletins l 30 sheets l 8 sheets

20. Out-of-Home l Bulletins l 30 sheets l 8 sheets l Bulletins l 30 sheets l 8 sheets n Outdoor consists of: n +Transit & Kiosks n Purchased monthly, based on “showings”

21. Showing n Daily impressions as a percent of total population. Example: Population = 150,000 25 Showing = 37,500 Daily Impressions 50 Showing = 75,000 Daily Impressions 100 Showing = 150,000 Daily Impressions

22. Today’s Radio n Today, radio is a local medium s Sold by local stations s Bought by local advertisers s Sold by local stations s Bought by local advertisers l National Spot + Network $4.6 billion s Bought nationally/ played locally l Local Spot $14.9 billion l National Spot + Network $4.6 billion s Bought nationally/ played locally l Local Spot $14.9 billion

23. Today’s Television n Network TV n Cable TV n TV Ratings - “Nielsens” l Tracked by Nielsen Media Research l GRP’s, TRP’s, etc. n TV Ratings - “Nielsens” l Tracked by Nielsen Media Research l GRP’s, TRP’s, etc. l A bigger, broader, more diverse audience l More select, upscale “niche” audiences

24. Today’s Television n 4 Kinds of TV n 6 Ways to Buy TV l Network l National cable l Syndication l Local (mostly news) l Network l National cable l Syndication l Local (mostly news) l National s Network s National Spot s National Cable l Local s Local Spot s Syndication s Non-network cable l National s Network s National Spot s National Cable l Local s Local Spot s Syndication s Non-network cable

25. Direct Mail & Yellow Pages n Direct Mail is a $44 billion dollar business

26. n The “Yellow Pages” (directory advertising) is a $13 billion business Direct Mail & Yellow Pages

27. New Media - The Internet n Media Evolution in Action l Just as previous media evolution changed advertising, so will this one. l Changing marketers’ behavior l Extending advertising involvement l We can “consume” media more selectively. l We can, if we want, interact and become more involved. l Just as previous media evolution changed advertising, so will this one. l Changing marketers’ behavior l Extending advertising involvement l We can “consume” media more selectively. l We can, if we want, interact and become more involved.