Chapter Twelve Traditional Advertising Media Chapter Twelve Objectives

Chapter Twelve Traditional Advertising Media

Chapter Twelve Objectives • Describe the five major traditional advertising media • Discuss out-of-home advertising and its strengths and limitations • Discuss newspaper advertising and its strengths and limitations

Chapter Twelve Objectives • Discuss magazine advertising and its strengths and limitations • Discuss radio advertising and its strengths and limitations • Discuss television advertising and its strengths and limitations

Media Vs. Vehicles Media The general communication methods that carry advertising messages e. g. , television, magazines, newspapers, etc Vehicles Specific broadcast programs or print choices in which advertisements are placed e. g. , Friends, NBC Evening News, Time, Cosmopolitan

Traditional Major Advertising Media Out-of-home advertising Magazines Newspaper Radio Television Advertisers attempts to select the media and vehicles whose characteristics are most compatible with the advertised brand in reaching its target audience and conveying its intended message

Which Media Do It Best? Media Comparison Consider: • Advertiser’s objectives • Creative needs • Competitive challenge • Budget availability

Out-of-Home (Outdoor) Advertising • $5 Billion in 2000 • Regarded as supplementary • e. g. , billboard(major), bus shelters, giant inflatables, shopping-mall displays, etc

Out-of-Home (Outdoor) Advertising 400, 000 billboards in the US Designed with name recognition as the primary objective Two major forms: (1) Poster Panels and (2) Painted Bulletins

Billboard Advertising Poster Panels • Alongside highway and heavily traveled locale • Silk-screened or lithographed • Sold on a monthly basis Painted Bulletins • Hand painted directly on the billboard • Purchased for 1 -3 year period • To achieve a consistent and relatively permanent presence

Billboard Advertising Example of a poster panel

Billboard Advertising Example of a painted bulletin

Buying Outdoor Advertising • Purchased through companies that own billboards, called plants • Plants sell space in terms of showings » Showings are percent exposed » #25: 25% of population exposed • Recently, GRPs (gross rating points) are used

Outdoor Advertising’s • Board reach and high frequency • Geographic flexibility • Low cost per thousand • Prominent brand identification • Opportune purchase reminder • Nonselectivity • Short exposure time • Difficult to measure audience size • Environmental problem

Newspapers • 60 million households during week and nearly 62 million on Sundays • Historically leading advertising medium but declining in recent years

Buying Newspaper Advertising Standard Advertising Units (SAU) Six column widths 1 column=2 1/16 inches Depth from 1” to 21 Premium charges for preferred space Space rates apply to ROP (Run of Press)

Newspaper • Audience in right mental frame • Mass audience coverage • Flexibility • Ability to use detailed copy • Timeliness • Clutter • Not highly selective • Higher rates for occasional advertisers • Mediocre reproduction quality • National Buying complicated • Changing composition of readers

Magazine Advertising • Hundreds of special - interest magazines

Buying Magazine Space • Selecting magazines that reach the target market • Cost considerations » Media Kits » CPM (Cost-per-thousand) » Mediamark Research, Inc. (MRI) » Simmons Market Research Bureau (SMRB)

Buying Magazine Space Rolling Stone adult demographic profile

Buying Magazine Space Cosmopolitan demographic profile

Buying Magazine Space Rolling Stone 1998 General Rate Card

Rate Card for Cosmopolitan Magazine Cosmopolitan Rate Card

Magazine • • • Can reach large audiences Selectivity Long life High reproduction quality Detailed information possible • Convey information with authority • High involvement potential • • Not intrusive Long lead times Clutter Limited geographic options • Circulation patterns vary by market

Simmons Market Research Bureau and Mediamark • Audience size and composition for 100 publications • Broadcast exposure and usage of over 800 consumer products and services • Lifestyle information • Media usage

Simmons Market Research Bureau • • • Number of adults Number of users Percent of users in categories (i. e. female) • Percent of category using product (i. e. % of all females using) • Index number • All by heavy, medium, and light user

Index Numbers Using SMRB and/or Mediamark % of users in segment Index =------------------% of population in segment

Potential Errors with Indexes Age segment % of population % of users Index

% who purchased in last six months. ( 30416 / 86474 ) Magazine Audience Measurement 18 -24 YOs who purchased MRI (Pretzel Purchasers) compared to total population who purchased. Base: Female ( 30. 5 / 35. 2 ) Total U. S. ‘ 000 All Female Homemakers 86474 30416 18 -24 2312 7. 6 30. 5 87 Total U. S. female 25 -34 homemaker population. 7578 19632 7864 25. 9 40. 1 114 35 -44 18954 8125 26. 7 45 -54 13220 5444 17. 9 Homemakers Number of female homemakers 55 -64 who Number 10669 homemakers 18 -24 purchased in 65 sixormonths. older in the population. last 16421 B% Down 100. 0 C% D Across Index 35. 2 100 % of 18 -24 YOs who have purchased 42. 9 122 in the last six month 41. 2 117 ( 2312 / 7578 ) Number of female homemakers purchasers 99 3715 18 -2412. 2% of total 34. 8 who purchased in who are 18 -24. 18. 0 51 the 2956 last six months. 9. 7( 2312 / 30416)

Radio Advertising • Nearly 100% of home and cars have radios

Buying Radio Advertising • Matching station format with target market • Geographic coverage using ADIs • Day part choice

Radio • Can reach segmented audiences • Intimacy • Economy • Short lead times • Transfer of imagery from TV • Use of local personalities • Clutter • No visuals • Audience fractionalization • Buying difficulties

Television Advertising • Nearly 98% of all households have televisions • Uniquely personal and demonstrative yet expensive

Television Programming Segments 8 p. m. -11 p. m. (7 p. m. -10 p. m. ) Prime Time Early morning news - 4: 30 p. m. Daytime Preceding and following prime time Fringe Time

Television Network Spot Syndicated Cable Local • Market product nationally • Major networks (ABC, CBS, Fox, NBC) • Expensive but can be a cost efficient means to reach mass audience

Television Network Spot Syndicated Cable Local • Advertising is placed only in selected markets • Regional-oriented marketing and geodemographic segmentation of consumer markets

Television Network Spot Syndicated Cable Local Syndicated programming occurs when an independent company markets a TV show to as many network-affiliated or cable TV stations as possible

Television Network Spot Syndicated Cable Local • 80% of households with television sets • narrow areas of viewing interest • Cable subscribers are more economically upscale and younger

Television Network Spot Syndicated Cable Local • Local advertisers are turning to television • inexpensive during the fringe time

Television • Demonstration ability • Intrusion value • Ability to generate excitement • One-on-one reach • Ability to use humor • Effective with sales force and trade • Ability to achieve impact • Escalating costs • Erosion of audience • Audience fractionalization • Zipping and zapping • Clutter

Informercials • • Introduced in the early 1980 s Long commercial (28 to 30 minutes) The production cost is expensive Especially effective promotional tool for moving merchandise

Brand Placements in TV Programs Reason: fear that TV advertising is no longer as effective as it used to be Brand managers pay to get prominent placement for their brands “Survivor” program is the poster trend child for this Advertisers who purchased commercial time in “Survivor” got prime brand placement in the program

Television Audience Measurement Higher rated programs command higher prices Ratings are difficult to come by accurately One primary rating service—Nielsen’s People Meter and one under development—SRI’s SMART System

Television Audience Measurement Nielsen’s People Meter Technology Handheld device slightly larger than a TV remote—has 8 buttons for family members and two additional buttons for guests Records what programs are watched, how many households are watching, and which family members are in attendance

Television Audience Measurement Nielsen’s People Meter Technology Viewing information is combined with each household’s pertinent demographic profile Old system consisted of diary panels, but with the implementation of the People Meter the ratings dropped causing a controversy— Networks claimed faults in the People Meter resulted in erroneous ratings data

Television Audience Measurement SRI’s SMART System Statistical Research Inc. (SRI) develops SMART—Systems for Measuring And Reporting Television Meters are attached to TV sets Sensors on the meters enable signals to be picked up from the air Viewers log in and out before and after watching TV using a control

Television Audience Measurement SRI’s SMART System Similar to Nielsen, however it is doubtful that SMART will become a reality Similar to Arbitron’s, of radio-audience measurement fame, Scan. America which was discontinued due to lack of industry support