Media Planning & Buying in the 21st Century

CHAPTER 15

Traditional Media

Media Planning & Buying in the 21st Century

Agenda

Purpose: to review strengths & weaknesses of traditional media Broadcast and cable television Radio Magazines Newspapers Outdoor

Television: Sight, Sound, Motion& Emotion?

Media Planning & Buying in the 21st Century

Television

Television Overview

TV Penetration - 99% 68% Cable 17% ADS

1685 television stations Network O&Os Network affiliates Independents

Cable Television 129 national & regional networks 10,000+ systems & interconnects

Reach Potential 90% watched “yesterday” 4.2 hours spent

Media Planning & Buying in the 21st Century

Television

Advantages 99% watch, average 4+ hours/day Broadcast and cable = thousands of programs Broad or selective audiences High potential impact

Intrusive Multi sensory - Sight, sound, motion, emotion Imagery

Geographic flexibility – from national to localDisadvantages

Broadcast ratings declining Cost Clutter

Cable TelevisionCable Television

More cost efficient than broadcast networkMore original programming. Targeted audiences

Over 100 channels to choose

Buy targeted local schedules

Low ratings Reporting is inadequateLocal cable

interconnects and cable systems are high cost (CPM)

Advantages Disadvantages

Radio: “Theatre of the Mind”?

Radio Overview

Over 10,000 radio stationsA format for almost everyone

- Musical tastes- News/Talk- Sports- Special interest- Ethnic

Media Planning & Buying in the 21st Century

Radio

Radio

Advantages - Demographic targeting via different radio formats - Build high frequency with select stations’ audiences - Geographic & timing flexibility - Lower CPMs and out of pocket cost than TV - Reach impulse buyers in cars - Stations’ on air talent, promotion & merchandising - Low commercial production costs

Disadvantages - Audience fragmentation with 10,000+ stations - Many stations required to achieve high reach - Background medium - lower attention levels - Lack of visual communication - Smaller geographic coverage area than TV

Media Planning & Buying in the 21st Century

A magazine for every interest.

Media Planning & Buying in the 21st Century

Gone

Media Planning & Buying in the 21st Century

Today

Media Planning & Buying in the 21st Century

Today

Media Planning & Buying in the 21st Century

Today

Media Planning & Buying in the 21st Century

The Largest Magazine in America

Media Planning & Buying in the 21st Century

The Trade Press

Magazines

Advantages 17,000 magazines = magazines for every interest

Selective or broad reach (consumer & B2B) Potentially relevant editorial context - enhance interest Demographic, geographic editions Positioning - covers, editorial context

Good for considered purchases, coupons, promotions Creative Flexibility- ad units: size/color, inserts, etc. Enhance media mix (e.g., reach lighter viewers, etc.)

Disadvantages Selective perception (easier to skip ads) Build reach slowly Lack of immediacy Long lead closings

Media Planning & Buying in the 21st Century

Introduction to Newspapers

Media Planning & Buying in the 21st Century

Newspapers: reach buyers when they are shopping.

Newspaper Overview

A few “national” Newspapers USA Today, WSJ, NY Times, Washington Post, etc. On line editions

Mostly Local Morning - 787 Evening - 690 Sunday - 917 Weekly - 6704

Specialized Newspapers Growth of Hispanic press Decline in African American press Proliferation of “Alternative” newspapers

140+ per DMA

Newspaper Overview

Newspaper Trends Circulation continues decline, especially among younger to

people Nonetheless, 60% of adults “read a newspaper yesterday” But rate differential has prevented growth in national

advertising What is the future-- as newspapers are no longer able to

provide “news” in a timely manner vs. TV, radio, internet???Many types of availabilities

Run of Paper/section of paper Free Standing Inserts Sunday Supplements, comics, poly bags, classified

Newspaper Rate Cards National Rates - for National Advertisers Retail Rates - for Local Market Businesses

Display Advertising Sold by column inch, e.g., 4 column x 10 inch ad = 40 col. inches x rate/inch = Cost

Newspapers

Advantages- Generally 60%+ market coverage- Newspapers referred to for prices among people “in market”- Sense of immediacy/“buy now”- In market shoppers/save retail ads of interest- Many availabilities - ROP, comics, supplements, inserts, poly bags- Local market and zone edition flexibility- Short closing dates

Disadvantages Broad, older audience - not as selective as other media - High out of pocket cost and CPM (eg, $5 million+ for fullpage on

Sunday in top 100 markets - National rate discrimination persists - Variable production quality

Media Planning & Buying in the 21st Century

Retail Role of Newspapers

Direct Mail

Advantages- Maximum ability to target customers/prospects- Direct response- Flexible message - to communicate whole story- Highly suited to promotions & offers- Right list & mailing package - high response rate

Disadvantages - Cost, cost, cost - very high CPMs vs. traditional media - Quality of mailing lists varies widely - Many programs generate low response/lose money - Mail clutter & consumer resistance

Media Planning & Buying in the 21st Century

Out of Home

Creative Use of Outdoor

Outdoor

Advantages- 96%+ reach potential- High frequency opportunity- Geographic targeting within DMAs- Research: good for simple awareness- Creative flexibility - bulletins, 30/8 sheet posters, transit

Disadvantages - Limited communication opportunity/simple message - Large investment necessary for “campaign” - Availabilities more limited in upscale areas

Example of Media Selection CriteriaInternet

Information

Sensory

Intrusive

Impact

Low CPM

Hi Invest

Cost

Geo Flex

Frequency

Selective

Mass

Audience

Mail

OutdoorNewspaperMagsRadioTV