Traditional Advertising Media

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Traditional Advertising Media

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter ObjectivesAfter reading this chapter you should be able to:1. Describe the four major traditional advertising media

(newspapers, magazines, radio, and television).2. Discuss the strengths and weakness for each of the

following major traditional advertising media: newspapers, magazines, radio, and television.

3. Describe how each of these traditional media choices has changed with the appearance of new media options (e.g., social media, online advertising).

4. Appreciate the research methods that are used for each ad medium to determine the size of the audience exposed to advertising vehicles.

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Has TV Advertising Lost its Effectiveness? Or, Has it Simply Changed its Look?

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Major Mass Advertising Media• Spending on measured media advertising in the four

traditional media in the United States totaled approximately $121 billion, and $300 billion for all media – measured and unmeasured – in 2012.

• Approximate spending percentages by major media type:

Radio19%

Newspapers17%

Mag-azine

s13%

Television51%

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Which Advertising Medium Is “Best”?

Advertiser’s Objectives

CreativeNeeds

CompetitiveChallenge

Available Budget

Factors in the Choice of Best Advertising

Media

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Newspapers• Readership

• 48 million U.S. households during the week and nearly 49 million on Sundays.

• Historically, the leading medium, but in constant decline• Buying Newspaper Space

• Standardized Advertising Unit (SAU) system• 1 column: 21/16 inches 2 columns: 41/4 inches• 3 columns: 67/16 inches 4 columns: 85/8 inches• 5 columns: 1013/16 inches 6 columns: 13 inches• Space depth: 1 inch to 21 inches• Space rates apply to ROP (run of press)• Premium rates for preferred space positioning

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Newspaper Advertising’s Strengths and Limitations

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Magazines• Special Interest Magazines

• Consumer-oriented• Business-oriented

• Standard Rate and Data Service (SRDS Media Solutions)• Tracks information on standardized ad rates,

contact information, reader profiles, and other information, which facilitates media planning and buying.

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Magazines (cont’d)

• Buying Magazine Space• Selecting magazines that reach the target market• Sources for cost considerations

• Media Kits– Demographic composition of magazine’s readership– Rate cards

• CPM (Cost-per-thousand) Information– Mediamark Research, Inc. (MRI)– Simmons Market Research Bureau (SMRB)

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Figure 12.1: Golf Digest’s Demographic Profile

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Figure 12.2: Partial Rate Card for Sports Illustrated (Rate base = 3,150,000)

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Magazine Advertising’s Strengths and Limitations

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Magazines (cont’d)• Magazine Audience Measurement

• Magazine subscriptions and the number of people who read a magazine are not equivalent:• Variety of intermediaries collecting subscription makes it difficult to

obtain an accurate count of subscribers• Single copy purchases and publicly-available copies thwart

identification of readers• Subscribers who share magazines with others

• Simmons and MRI Reports• Specialists in measuring magazine readership and determining

audience size.• Each uses different research methods

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Illustration of a MRI Report for Imported Beer/Ale

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Magazines (cont’d)• Considerations in selecting magazines:

• 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

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Radio• Market Coverage

• There are 14,503 commercial radio stations in the United States

• Almost 100 percent of all homes have radios; most homes have several

• Virtually all cars have a radio• More than 50 million radios are purchased in the United

States each year• Radio broadcasting in the United States reaches slightly

over 93 percent of all people age 12 or older.

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Radio (cont’d)• Factors in Buying Radio Time

• Matching station format with target market• Choosing a station with geographic coverage in

areas of dominant influence (ADIs)• Daypart choices:

• Morning drive: 5 AM to 10 AM• Midday: 10 AM to 3 PM• Afternoon drive: 3 PM to 7 PM• Evening: 7 PM to Midnight• Late night: Midnight to 7 AM

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Radio Advertising’s Strengths and Limitations

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Radio (cont’d)

• Radio Audience Measurement Firms• Arbitron

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

• Owns RADAR (Radio’s All Dimension Audience Research)

• Uses a paper-based diary approach to measure listener behavior and is introducing pager-like meters (Portable People Meters) to its data collection process

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Television• Television

• Over 98% of all households have televisions• Is a uniquely personal and demonstrative medium• Is expensive to produce and broadcast

• Television Programming Dayparts:• Early morning: 5 AM to 9 AM• Daytime: 9 AM to 4 PM• Early fringe: 4 PM to 7 PM• Prime access: 7 PM to 8 PM• Prime time: 8 PM to 11 PM• Late fringe: 11 PM to 2 AM• Overnight: 2 AM to 5 AM

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Average Prime-Time Audience (in millions) for Six Major Networks

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Types of Television Advertising

Spot

Network

LocalCable

Syndicated

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Television Messages

NetworkAdvertising

Useful when selling a product nationally on major networksExpensive, but is a cost-efficient means to reach mass audience

Spot Advertising

Advertising is placed only in selected marketsRegional-oriented marketing and geodemographic segmentation of consumer markets

SyndicatedProgramming

Occurs when an independent company sells a show to as many network-affiliated or cable TV stations as possible

Cable Advertising

Uses narrowcasting to reach 85% of all households ofeconomically upscale and young subscribers

Local Advertising

Local advertisers are turning to television as it is inexpensive during the fringe time

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The 10 Highest-Priced TV Programs (Fall 2010)

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Television Advertising’s Strengths and Limitations

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Top-10 Prime-Time Broadcast TV Programs

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Television Advertising (cont’d)• Infomercials

• Were introduced in the early 1980s• Are essentially a long commercial (28 to 30

minutes)• Are expensive to produce• Are an especially effective promotional tool for

moving merchandise

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Television Advertising (cont’d)

• Brand Placements in TV Programs• Can be very effective provided brand is displayed in a

context that appropriately matches the brand’s image.• Are the result of advertisers’ fear that TV advertising

is no longer as effective as it used to be• Require that brand managers pay to get prominent

placement for their brands in popular programs

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Television Advertising (cont’d)• Television Audience Measurement

• Higher rated programs command higher ad prices• Ratings are difficult to come by accurately

• National (Network) Audience Measurement• Nielsen’s People Meter Technology

• Local Audience Measurement• Nielsen’s Diary Panels• Nielsen’s Local People Meters

• Challenges• Counting away-from-home viewers and listeners• Audience undercounts

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Figure 12.3: Nielsen People Meter

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Traditional Advertising Media