Part 4 Practice: Where are Media Headed? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 12-1

Chapter 12: Traditional Media

Part 4Practice: Where are Media Headed?

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 12-1

What key points should marketers know to make effective decisions about advertising in newspapers and magazines?

What factors do marketers consider in making out-of-home advertising decisions?

How do radio and television work as marketing communication media?

How do marketers use movies and other video formats for marketing communication?

Questions to Explore


What are the Key Print Media Characteristics?


Print media vehicles include: ◦ Newspapers◦ Magazines◦ Brochures◦ Posters◦ Outdoor

Print provides more information, richer imagery, and longer messages than broadcast media.

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

What are the key print media characteristics?

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Print is often used to generate cognitive responses.

It is more flexible, less fleeting, and more engaging when targeted to special interest audiences.

Print can engage the senses of sight, touch, and smell.


What are the key print media characteristics?

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Newspaper’s primary function is news, making it useful for ads announcing sales, events, other news.

People read newspapers as much for the ads as they do for the news stories.

Newspapers are a local, mass medium.

Market selectivity allows newspapers to target specific consumer groups.


Newspaper basics

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This beautifully illustrated newspaper ad conveys the idea of worldwide coverage for telecom giant AT&T.


Newspaper basics

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The newspaper industry Readership is declining, particularly among young

people.

The recession of the late 2000s brought double-digit declines in advertising.

Newspapers are third to television in advertising revenue.

Online delivery is becoming an industry growth area.


Newspaper basics

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Newspaper ad sales Ads are sold based on size

of the space and the newspaper’s circulation.

Local advertisers and volume buyers get discounts; national advertisers pay a higher rate.


Newspaper basics

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Newspaper ad sales Ads are sold by local sales staff or brokers on the

one-order, one-bill system.

The introduction of standard advertising unit (SAU) in the 1980s made national buying much easier.

With coop advertising, a local retailer places an ad and the manufacturer pays for part of the ad.


Newspaper basics

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Types of newspaper advertising Display

◦ Can be any size, placed anywhere except editorial section.◦ May be local (retail) or national (brand).◦ Run-of-paper rate (can run anywhere) or preferred-

position rate (advertiser selects sections where ad runs).

Classified◦ Advertising by individuals to sell their personal goods and

advertising by local businesses.

Supplements◦ Magazine-style publications inserted into newspapers.◦ A free-standing insert (FSI) is a preprinted ad inserted for a

fee.


Newspaper basics

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Newspaper readership measurement Half of American adults read the newspaper daily.

Readers are older with higher incomes, education.

Newspapers measure their audiences to attract advertisers who want to reach their readers.◦ Audit Bureau of Circulations: independently verifies

statements about newspaper circulation statistics.◦ Simmons-Scarborough: annually measures readership

profiles in approximately 70 of the nation’s largest cities.


Newspaper basics

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Over 90% of all U.S. adults read one magazine per month, spending 44 minutes per issue.

Quality of reproduction is their greatest strength.

This campaign makes the case that magazines can be an effective ad medium even in the age of the Internet.


Magazine basics

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Health of the magazine industry

It has weathered the recession and changing media environment relatively well.

New magazines continue to emerge, especially those that target business markets and other growing segments.

Zines, online versions of traditional magazines, represent the greatest growth area.


Magazine basics

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Health of the magazine industry Zines also create interesting dilemmas.

Consider:

www.wiredmagazine.com

Wired has been on the cutting edge of the digital community. However, its website is the most popular version.

What happens to the website if the print version of the magazine is eliminated?


Magazine basics

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http://www.wiredmagazine.com/

Types of magazines Consumer magazines

Aimed at consumers who buy products for personal use.

Business magazinesThese target business readers. Examples:◦Trade papers◦Industrial magazines◦Professional magazines◦Farm magazines◦Corporate publications


Magazine basics

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Types of magazinesIn assembling their media mix, planners consider:

Geography: national, regional editions

Demographics: age, income, occupation, etc.

Editorial Content: general, women’s, shelter, business, and special interest.

Physical Characteristics: 8 ½” x 11,” 6” x 9” most common.

Ownership: publishing companies vs. organizations

Distribution and Circulation: subscriptions vs. single-copy sales.


Magazine basics

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Controlled versus uncontrolled circulation

Controlled circulationTraditional delivery through newsstand purchases or home delivery via the U.S. Postal Service

Uncontrolled circulationNontraditional or free delivery to specific audiences: ◦ Hanging bagged copies on doorknobs◦ Inserting in newspapers ◦ Delivering through professionals’ offices◦ Direct delivery ◦ Electronic delivery


Magazine basics

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Magazine ad sales Ad costs are based on the size of the ad and

circulation of the magazine.

Typical formats: ◦ Premium positions: back cover, inside covers◦ Double-page spread: two ad pages face each other◦ Bleed page: color goes to edge of the page


Magazine basics

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Magazine ad sales

Typical formats◦Gatefold: more than two connected pages that

fold in on themselves

◦Special ad page or section that looks like editorial

◦Multiple-page photo essay

◦Fractional page space: vertical or horizontal half-page, half-page double spread


Magazine basics

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Magazine readership measurement Magazine rates are based on guaranteed

circulation a publisher promises to provide.

Circulation is the number of copies of an issue sold.

Readership represents total audience, which includes pass-along readers.


Magazine basics

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Magazine readership measurementObjective, outside measurement companies: Audit Bureau of Circulations verifies circulation.

MediaMark’s MRI service measures readership for many popular national and regional magazines.

Simmons Market Research Bureau provides psychographic data on readers.

Starch, Gallup and Robinson provide information on audience size and behavior.


Magazine basics

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Directories are books that list people or companies, phone numbers, and addresses.

They are directional: they tell people already in the target market where to go to get the product or service they want.

Almost 90% of the people who consult the Yellow Pages follow up with action.


Directories

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Retailers can buy display space for larger ads, but directories can be cluttered.

There are more than 7,500 other directories for professional and interest groups.

As a class: For more information on the value of directory

advertising, see:

“A Matter of Principle”“Directories: The Medium You Trust the Most”


Directories

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What are the Out-of-Home Media Characteristics?


Out-of-home advertising includes:◦ Billboards◦ Hot-air balloons◦ Buses◦ Posters◦ Kiosks◦ Blimps◦ Airport displays

It ranks second to the Internet in terms of growth.

It is situational: can target specific people at a specific time when they’re most interested.


What are the out-of-home media characteristics?

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This includes street and highway advertising, plus posters in public locations.

Two primary uses of outdoor:

1. As reminder advertising 2. As a directional guide


Outdoor advertising

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Size and Format Printed posters or painted bulletins

Extensions: go beyond the rectangle border

Cutouts: present an irregular shape.

Digital displays: use wireless technology to change messages.


Outdoor advertising

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Outdoor ad sales

Outdoor is sold in showings, based on traffic counts.

Boards are usually rented for 30 days.

As a class: What does a “100 showing” mean?


Outdoor advertising

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This outdoor board was designed to dramatize the quality of the LCD screen on an Olympus digital camera.

Retail signs identifying stores are an ever-present form of brand communication.


On-premise signs

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Some on-premise signs also act like billboards, as shown in this highly creative sign at Bally’s in Las Vegas.

Posters Used on buildings, kiosks, vehicles, and bulletin

boards.

Kiosks are designed for public posting of notices and advertising posters.

Did you know…The iPod was launched in London with walls of posters that Tube riders encountered on the escalators!


On-premise signs

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Transit Advertising This is a form of urban mass advertising.

Ads run on buses, taxis, and moving billboards.

There are two types of transit advertising:

1. Interior2. Exterior

Painted vehicles emerged in 1993 with PepsiCo.


On-premise signs

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Key considerations: Use newspapers to announce something new

and to target local markets.

Use magazines to target people with special interests.

Use outdoor to target audiences on the move and to provide directional information.

Directory ads catch people when shopping.


Using print and out-of-home media effectively

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What are Broadcast Media Characteristics?


Broadcast media refers to:◦ Radio◦ Television and other video forms◦ Movie advertising

Ads are bought in terms of time (seconds, minutes). It utilizes sight and sound; is more entertaining. Radio advertising engages the imagination. Television creates powerful brand imagery. Both use emotion and repetition to intensify

memory.


What are broadcast media characteristics?

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The structure of the radio industry The U.S. has more than 10,000 commercial radio

stations, mostly serving local markets.

In recent years, radio industry growth has slowed.

Broadcast forms: ◦ AM/FM◦ Public radio◦ Cable radio◦ Satellite radio◦ LPFM (low-power FM)◦ Web Radio or webcasting


Radio basics

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The radio audience Radio is close to being a universal medium.

Virtually every U.S. household has at least one radio.

Radio is a $20 billion industry tightly targeted based on special interests:

◦ Religion◦ Spanish language◦ Talk shows


Radio basics

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Dayparts Audiences are grouped by the time of day when

they are most likely to be listening.

Typical dayparts:

◦ Morning drive time: 6–10 a.m. ◦ Midday: 10 a.m.–3 p.m. ◦ Evening drive time: 3–7 p.m. ◦ Evening: 7 p.m.–midnight◦ Late night: midnight–6 a.m.


Radio basics

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Measuring the radio audience Coverage: the number of homes able to pick up

station, tuned in or not.

Ratings: measure percentage of homes actually tuned to a station.

The Arbitron Ratings Company estimates audiences for some 250 markets in United States.


Radio basics

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Radio advertising Delivers high frequency using jingles for

repetition.

Has the power to engage the imagination and communicate on a more personal level than other forms of media.

Uses drama to engage the imagination as in public service announcements (PSAs) which are created free by agency personnel and run free by the media.


Radio basics

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Radio advertising is divided into three categories:

Network Radio Advertising◦ Group of local affiliates connected to one or more national networks.◦ Growth has contributed to increase in syndicated radio

Spot Radio Advertising◦ Advertiser places ads with an individual station, not a network◦ Messages can be tailored for particular audiences◦ Flexibly in content, timing, and rates

Syndicated Radio Advertising◦ Offers advertisers of high-quality, specialized, and original programs◦ Advertisers value the high level of audience loyalty.


Radio basics

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Using radio effectively

Radio is highly targeted and inexpensive. Excellent reminder/reinforcement capabilities. Builds frequency through repetition. Targets audiences through specialized programming. Sparks imagination through “theater of the mind.” Timing is critical. Radio advertising must “break through” the clutter.

For a look behind the scenes of radio commercial production, go to: www.radio-ranch.com


Radio basics

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http://www.radio-ranch.com/

Television has become a mainstay of society. Some 98% of U.S. homes have one or more television sets.

Heavy TV use by children has concerned parents and early childhood experts.

Television advertising is tied to television programming, so its effectiveness is determined by the popularity of the television program.

For some interesting insights on TV advertising, check out “A Matter of Practice, Mad Men: Advertising at the Intersection of Social Change.”


Television basics

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Structure of the television industry

Network television A distribution system that provides television

content to its affiliated stations.

ABC, CBS, NBC and Fox are the major networks.

Each network has about 150 affiliates.

Local and national advertising pays for station and network operations.


Television basics

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Subscription television Here, people sign up for service and pay monthly

fees. The most common form is cable television. Cable is pulling ad revenue away from network TV. Satellite television is another form of subscription

TV.


Television basics

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Other television formats:

Pay programming and on-demand programming Local television Public television Syndication

As a class: Discuss the key differences between each format.


Television basics

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New technology and innovative television High-definition TV (HDTV)

◦ Playback of movie quality, high-resolution images◦ Content must be broadcast in HDTV format

Interactive television ◦ TV set with computer capabilities; uses broadband◦ Addressable and 3-D television also are in development.

Digital video recorders (DVRs) ◦ Enables users to record favorite shows and watch later.

This is called time-shifting. ◦ DVRs threaten marketers because viewers can skip ads.


Television basics

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Measuring the television audience Households Using Television (HUT) measures

exposure based on houses with sets turned on.

Impressions: the number of viewers watching a program—measured by:◦ Ratings: converts gross impressions to a percentage; one

ratings point equals 1% of all the nation’s TV homes.◦ Share: share of audience is percent of viewers based on the

number of sets turned on.

Nielsen measures national and local audiences using people meters and viewer diaries.


Television basics

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Television tells stories, engages emotions, creates fantasies, makes a powerful visual impact.

It also demonstrates how things work.

TV brings brand images to life and adds personality to a brand.


Television advertising

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The famous “crying Indian” image commercial conveyed a strong ecology message.

Advertising salesCommercials can take several forms:

SponsorshipsThe advertiser assumes financial responsibility for producing the program and providing the commercials.

ParticipationsAdvertisers pay for 10, 15, 20, 30 or 60-second commercials. This is the most common approach used by networks.

Spot announcementsCommercials appearing in breaks between local programs. Sold by local affiliates to advertisers who want to show their ads locally.



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Effectiveness of television

Television is used because of the reach it delivers.

It also makes a strong visual and emotional impact, creating engagement.

It’s good for messages that need action, movement, demonstration.



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This TV ad utilizes motion graphics to show how all energy-saving efforts are connected.

Drawbacks of television Commercial breaks are cluttered, and viewers often

leave their sets.

Wasted reach: messages reach consumers not in the target market.

Viewers zip (fast forward) or zap (change channels) to avoid commercials.

Advertising time and production costs are expensive.

Clutter, which leads to intrusiveness, and irritation.



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Other Video Formats


Movie theaters trailers reach captive audiences.

DVD, Blu-ray and other video distributors place ads before movies.

Promotional video networks are used in stores, offices, and truck stops.

Marketers are producing video clips for cable, video-on-demand, company websites, MySpace, other sites.

For an example: go to: www.ge.com/imaginationtheater


Movie trailers and disc ads

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http://www.ge.com/imaginationtheater

As a class: Review the “Broadcast and

Video Media Advantages and Limitations” table in this chapter.

Discuss as groups, and provide examples of each.


Using broadcast and video effectively

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This ad reminds media buyers of the power of cinema.

In Chapter 13, we will:

Move on to the equally fast-changing realm of digital media.

Learn more about the dynamic world of online communication.


Where We’re Headed Next

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“Aflac’s Duck Spreads Its Wings”

In your mind, just how effective is the Aflac duck?

This campaign led to a 94% awareness of Aflac and a boost of 55% in U.S. sales during the first three years.

Will the next generation of the campaign be equally effective?


It’s a Wrap

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“Aflac’s Duck Spreads Its Wings”Key lessons: Traditional media is key to campaign success, even

in the age of the Web and social media.

All media components worked together to educate consumers and boost brand comprehension.

As a class: What others can you think of?


It’s a Wrap

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Documents

Part 4 Practice: Where are Media Headed? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 12-1