Chapter Twelve Traditional Advertising Media. Chapter Twelve Objectives Describe the five major traditional advertising media Discuss out-of-home advertising

Chapter Twelve

Traditional Advertising Traditional Advertising MediaMedia

Chapter Twelve ObjectivesChapter 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 ObjectivesChapter 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. VehiclesMedia 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

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

Traditional Major Advertising MediaTraditional Major Advertising Media

Out-of-home advertising

Magazines Radio

Newspaper

Television

Which Media Do It Best?Which Media Do It Best?

Media

Comparison

Consider:

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

Out-of-Home (Outdoor) AdvertisingOut-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) AdvertisingOut-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 AdvertisingBillboard Advertising

• Alongside highway and heavily traveled locale

• Silk-screened or lithographed

• Sold on a monthly basis

Poster Panels Painted Bulletins

• Hand painted directly on the billboard

• Purchased for 1-3 year period

• To achieve a consistent and relatively permanent presence


Example of a poster panel


Example of a

painted bulletin

Buying Outdoor AdvertisingBuying 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 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

NewspapersNewspapers

• 60 million households during week and nearly 62 million on Sundays

• Historically leading advertising medium but declining in recent years

Buying Newspaper AdvertisingBuying 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)

NewspaperNewspaper

• 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 AdvertisingMagazine Advertising

• Hundreds of special - interest magazines

Buying Magazine SpaceBuying 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)

http://www.smrb.com/

http://www.mediamark.com/


Rolling Stone adult

demographic profile


Cosmopolitan

demographic profile


Rolling Stone 1998

General Rate Card

Rate Card for Cosmopolitan MagazineRate Card for Cosmopolitan Magazine

Cosmopolitan

Rate Card

Magazine 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 Simmons Market Research Bureau and MediamarkBureau and Mediamark

• Audience size and composition Audience size and composition for 100 publicationsfor 100 publications

• Broadcast exposure and usage Broadcast exposure and usage of over 800 consumer products of over 800 consumer products and servicesand services

• Lifestyle informationLifestyle information

• Media usageMedia usage

Simmons Market Research Simmons Market Research BureauBureau

• Number of adults Number of adults • Number of usersNumber of users• Percent of users in categories (i.e. Percent of users in categories (i.e.

female)female)• Percent of category using product (i.e. Percent of category using product (i.e.

% of all females using)% of all females using)• Index numberIndex number• All by heavy, medium, and light userAll by heavy, medium, and light user

Index Numbers -Index Numbers -Using SMRB and/or MediamarkUsing SMRB and/or Mediamark

% of users in segment

Index =------------------------------------

% of population in segment

Potential Errors with IndexesPotential Errors with Indexes

18-24 15.1 18.0 119

25-34 25.1 25.0 100

35-44 20.6 21.0 102

45+ 39.3 36.0 91

Agesegment

% ofpopulation

% ofusers

Index

23122312

78647864

81258125

54445444

37153715

29562956

75787578

1963219632

1895418954

1322013220

1066910669

1642116421

Magazine Audience Measurement -Magazine Audience Measurement -MRI (Pretzel Purchasers)MRI (Pretzel Purchasers)

Base: Female

Homemakers

Total

U.S. ‘000

A

‘000B%

Down

C%

Across

D

Index

All Female

Homemakers 86474 30416 100.0 35.2 100

7.67.6

25.925.9

26.726.7

17.917.9

12.212.2

9.79.7

30.530.5

40.140.1

42.942.9

41.241.2

34.834.8

18.018.0

8787

114114

122122

117117

9999

5151

18-2418-24

25-3425-34

35-4435-44

45-5445-54

55-6455-64

65 or older65 or older

Total U.S. female

homemaker

population.

Number of female

homemakers who

purchased in

last six months.

Number of female

homemakers 18-24

in the population.

Number of female

homemakers 18-24

who purchased in

the last six months.

% of total purchasers

who are 18-24.

( 2312 / 30416)

% who purchased

in last six months.

( 30416 / 86474 )

% of 18-24 YOs who

have purchased

in the last six months.

( 2312 / 7578 )

18-24 YOs who purchased

compared to total

population who purchased.

( 30.5 / 35.2 )

Radio AdvertisingRadio Advertising

• Nearly 100% of home and cars have radios

Buying Radio AdvertisingBuying Radio Advertising

• Matching station format with target market

• Geographic coverage using ADIs

• Day part choice

RadioRadio

• 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 AdvertisingTelevision Advertising

• Nearly 98% of all households have televisions

• Uniquely personal and demonstrative yet expensive

Television Programming SegmentsTelevision 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

TelevisionTelevision

• 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


• Advertising is placed only in selected markets

• Regional-oriented marketing and geodemographic segmentation of consumer markets

Syndicated

Network

Spot

Cable

Local


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


• 80% of households with television sets

• narrow areas of viewing interest

• Cable subscribers are more economically upscale and younger

Syndicated

Network

Spot

Cable

Local


• Local advertisers are turning to television

• inexpensive during the fringe time

Syndicated

Network

Spot

Cable

Local


• 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

InformercialsInformercials

• 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 ProgramsBrand 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 MeasurementTelevision 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


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

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

Nielsen’s People Meter Technology


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

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, ScanAmerica which was discontinued due to lack of industry support

SRI’s SMART System

Documents

Chapter Twelve Traditional Advertising Media. Chapter Twelve Objectives Describe the five major traditional advertising media Discuss out-of-home advertising