Print Planning & Buying

October 6, 2009

Agenda

• Overall Media Marketplace

• Broadcast, Online and OOH Overview

• Magazine Planning & Buying

• Newspaper Planning & Buying

• Accountability

Media Marketplace

Media Marketplace

Broadcast, Online & OOH Overview

Broadcast - Television

•Broadcast, Cable, Syndication

•National vs. Local

•Upfront vs. Scatter

•GRPs

•CPPs

Broadcast - Radio

•Network, Streaming, Satellite, Local

•Formats

•GRPs

•CPPs

Online

•Display

•Search

•CPM, CPC, CPV, CPA

•Impressions vs. Uniques

Outdoor

•Traditional

•Non-traditional

•Digital

•Showings

•DECs

Magazine Planning & Buying

Publishing Groups

PeopleSports IllustratedInStyleElleFortune / FSBGolf MagazineReal SimpleEntertainment

WeeklyMoneyTimeParentingCooking Light

AllureArchitectural DigestBon AppétitCN TravelerGlamourGourmetGQLuckySelfTeen VogueNew YorkerVanity FairVogue

CosmopolitanHarper’s BazaarHouse BeautifulMarie ClaireOprahSeventeenRedbook

PreventionMen’s HealthRunner’s WorldWomen’s HealthBackpackerOrganic Gardening

BH & GardensFamily CircleLH JournalMoreFitnessParentsChild BabyTraditional HomeMidwest Living

Characteristics of Magazines

• Targeted

• Adds increased delivery to broadcast schedule

• Reader involvement

• Creative/Message Flexibility

• Geographic flexibility

• Demographic flexibility

• Prolonged audience accumulation

Criteria for Selecting Magazines

Why must you set criteria for selecting titles?

• There are over 2,000 consumer magazines• It helps define the best titles that meet the clients objectives and

serves as a process for eliminating others• Quantitative criteria vs. qualitative criteria

• Supporting data vs. planner’s judgment• Key criteria in selecting magazines

• Audience (target) composition• Audience (target) coverage• Media Age and Median HHI• CPM• Circulation vitality• Editorial relevance• Positioning • Added Value

Print Definitions

Composition: The % of the publications audience that is your target

Coverage: The % of your total audience that the publication reaches

CPM: Cost to reach each thousand• Measures efficiency against the target audience (relevant to

maximizing media dollars)• CPM should always be calculated based on total target audience

• CPM = (cost / audience) x 1000• Example:

• Glamour FP4CB rate: $119,035, total circulation: 2,200,000• $54.11 = (119,035 / 2,200,000) x 1,000 (‘bucks over

schmucks’)

Quantitative Factors

• Demographics• How well does the magazine deliver against your target

audience

• Vitality• Circulation trends, regularity of achieving rate base (YOY),

rate of subscription renewal, ad page/revenue trends etc

• Primary audience vs. pass along readership• Used as an indicator of reader involvement and interest

(in home) vs. OOH readership

• Subscription vs. single copy sales• Consistency vs. impulse

• Ad/Edit ratio• Ratio of advertising pages to editorial pages

Qualitative Factors

• Editorial environment• Tone of the publication aligns with your brands DNA

• Positioning• Key positioning:

• Cover 2, cover 3, cover 4• Opposite TOC• Adjacency to popular column or feature

• Know the magazine; some of the best read articles are in the back of the book

• Competitive separation

• Added value: Largely based on your spend with the magazine• Examples

• Bonus space • Sponsorship of an already established programs / event sponsorship• Mobile campaigns• Direct mailing

• Programs must be goal oriented • Drive store traffic/sales• Sample opportunities

• Programs should be turn-key for the client

Process for Magazine Recommendation

• Start with a long list of books that make sense for the product/client

• Establish a selection criteria (key factors you will base on your recommendation on)

• Narrow down to a manageable list of magazines based on criteria goals

• Categorize this list of magazines

• Send out RFPs (request for proposal)• RFPs should outline:

• Objectives and strategies• Target audience• Timing• Creative unit size and approximate number of insertions • Proposed positioning• Goals for added value programs• Due dates for completed RFP

• Once RFPs are returned – analyze the details, provide reps with feedback, present recommended plan to client• Upon client approval, let each rep know ‘why or why not’ they were not

recommended. Be prepared to defend your recommendation

Trade magazines

• Limited options - some categories may only have a few appropriate books

• Target audience is often industry specific rather than demographic specific

• Magazines are selected based on their target comp and % of qualified recipients

• Resources are limited• Discounted rates and added value are much harder to achieve

Newspaper Planning & Buying

Types of Newspapers

• National

• Local

• Community

• Special Interest

Newspaper strengths

• Immediate impact• Great for timely offers and generating quick sales

• Local Emphasis• Often considered the voice of the town, particularly community

papers

• Coupon distribution

• Short lead time• Usually 2-3 days notice to book space

Ways to buy newspapers

• Newspapers are generally bought by the column inch• PCI (per column inch): $465• 1/2 page ad: 3 columns x 10.5 inches = 31.5• 31.5 x $465 = $14,647.5 total

• Category• Most papers have special rates for certain products (i.e. travel,

real estate)

• Demographic or regional• Zoned editions target specific areas of higher incomes or

influence

• Franchise positioning• Owning the weather pages, the stock pages etc

• Newspaper rep firms• National rep firms allow for a multiple newspaper buy

(nnlp.com)

Accountability

How do we know it is working?

• Return on Investment (ROI) - Evaluate the efficiency of an investment

• The benefit must outweigh the cost

• How can we evaluate the media?

• Analytics

• Unique offer codes

• Unique URLs

APPENDIX

Benefits & Considerations of Traditional Media

Media Vehicle Benefits Considerations

Television High Impact / Reach, efficient CPM

High production costs, high out of pocket, limited targeting (due to mass reach)

Radio Builds frequency, efficient CPM, lower production costs than TV, live reads driven by local personalities

Cluttered, fragmented audience, smaller audiences with growing options

Magazines Long copy, highly targeted, added value / merchandising, synergistic edit, delivers light TV viewers, ads can be reviewed at leisure

Long lead time, slow audience accumulation, reader controls ad exposure

Newspapers Long copy, immediacy, suburban/ local/ national, high single day reach opportunity

Limited national options, cluttered short shelf life, low quality production

Outdoor Geographic selectivity, high reach, high impact “spectaculars,” technological advances

Short exposure, minimum one month commitment, best locations require long-term commitment, long production lead time

Top 10 Reasons To Advertise In Magazines

1) Magazine advertising is engaging• Multiple studies show that consumers are more likely to find

magazine advertising acceptable and enjoyable compared to advertising in other media. They also find it less interruptive

2) Magazines advertising is considered valuable content• Starcom found that when readers were asked to pull 10 pages that

demonstrate the essence of their favorite magazines, three out of 10 pages pulled were ads

3) Magazine advertising moves readers into action• More than half of readers took action on magazines ads

4) Magazine advertising improves ROI• Allocating more money to magazines in a media mix improves

marketing and advertising5) Magazine advertising sells

• Magazines (in a media mix that included online and TV) contributed 67% of the total increase in purchase intent

Top 10 Reasons To Advertise In Magazines

6) Magazine advertising is relevant and targeted• With a range of titles that appeal to a wide variety of demographics,

lifestyles and interests, advertisers can hone in on targets that fit their needs

7) Magazine provide reach to the most desired consumers• Across almost every demographics, the top 25 magazines out

deliver the top 25 TV shows8) Magazine audiences accumulate faster than you think – and with lasting

impact• The average magazine accumulates approximately 60% of its

audience within a months time9) Magazine influence influential's

• Magazines are the medium of ‘influential Americans’ – the one in ten consumers who control the levers of change – those who are turned to most often for making purchase decisions and recommendations

10) Magazines supply credibility• Consumers trust and believe magazine advertising more than

advertising in other media