2007 Thomson South-Western

Using Traditional Advertising Media

Chapter Fourteen

Chapter Fourteen Objectives

• Describe the four major traditional advertising media.

• Discuss newspaper advertising and its strengths and limitations.

Chapter Fourteen Objectives

• Evaluate magazine advertising and its strengths and limitations.

• Discuss radio advertising and its strengths and limitations

• Discuss television advertising and its strengths and limitations

Advertisers attempt 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

Traditional Major Advertising Media

Out-of-home advertising

Magazines Radio

Newspaper

Television

Which Media Do It Best?

Consider:

•Advertiser’s objectives•Creative needs•Competitive challenge•Budget availability

Buying Newspaper Space

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

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)

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

Magazine Audience Measurement

• The number of subscriptions to a magazine and the number of people who read the magazine are not equivalent.

• MRI and Simmons specialize in measuring magazine readership and determining audience size.

• Each use different research methods, and their results are often discrepant.

The advertiser must weigh:

• The size of the potential audience that a vehicle might reach.

• The attractiveness of its coverage as revealed by the total product purchasers exposed to that vehicle and compared with other media.

• Its cost compared with other vehicles • Its appropriateness for the advertised

brand

Radio Advertising

• Over 11,000 commercial radio stations in the U.S.

• Nearly 100% of home and cars have radios.

• Radio reaches about 94% of all persons ages 12 and over.

Buying Radio Time

• 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

Radio Audience Measurement

• Arbitron is the major company involved with measuring listenership and audience demographics.

• RADAR (Radio’s All Dimension Audience Research)

• Arbitron uses a paper-based diary approach to measure listener behavior.

• Navigauge new service tracks radio-listening behaviors in motor vehicles using continuous tracking devices.

Television Advertising

• Slightly more than 98% of all households have televisions

• Uniquely personal and demonstrative, yet expensive to produce and broadcast

Television Programming Segments

8p.m.-11p.m. (7p.m.-10p.m.)

Prime Time

Early morning news - 4:30p.m.

Daytime

Preceding and following prime time

Fringe Time

Television

• Market product nationally

• Major networks (ABC, CBS, Fox, NBC)

• Expensive but can be a cost efficient means to reach mass audience

Syndicated

Network

Spot

Cable

Local

Television

• Advertising is placed only in selected markets

• Regional-oriented marketing and geodemographic segmentation of consumer markets

Syndicated

Network

Spot

Cable

Local

Television

Syndicated programming

occurs when an

independent company

markets a TV show to as

many network-affiliated

or cable TV stations as

possible

Syndicated

Network

Spot

Cable

Local

Television

• 80% of households with television sets

• Narrow areas of viewing interest

• Cable subscribers are more economically upscale and younger

Syndicated

Network

Spot

Cable

Local

Television

• Local advertisers are turning to television

• Inexpensive during the fringe time

Syndicated

Network

Spot

Cable

Local

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

Infomercials

• Introduced in the early 1980s

• 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 child for this trend

• 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

Measuring Away-from-Home Viewers and Listeners

• College students viewing TV in dorms and people consuming radio and TV at bars, gyms, and restaurants are not accounted for in the typical at-home viewing measurements.

• Nielsen and Arbitron are testing PPM (portable people meter) technology that can track radio and TV exposure at any location.

• Competition has come and gone and Nielsen remains the one company measuring TV viewership.