TV GuideTV Guide

• What does that say:– About magazines?– About television?

8-1

ABC, CBS, NBC ShareABC, CBS, NBC Share

• 1987: 75%

• 2006: 36%

• Why?

8-2

Somebody’s Lying!Somebody’s Lying!

• Page 260: “One study, for example, found that radio listeners are far less likely to change the dial during ads than are television viewers [8%]”

• Page 268: “CBS says that the typical drop during a normal show is approximately 5%”

8-3

Page 263Page 263

• “The price of a 30-second ad has increased even as the size of the audience has decreased”

• Why?

8-4

Introducing a critical ConceptIntroducing a critical Concept

• Meet the CPM

• Cost/AudienceX1000

• Cost per thousand

• Television has the lowest CPM of any media by far: it is often measured in pennies.

• The most expensive medium is also the most efficient.

• A penny’s worth of Ivory liquid!

8-5

Concerns and New Concerns and New Developments in TVDevelopments in TV

• Mass vs. niche

• Efficiency vs. wastage vs. narrowcasting

• Pod placement

• Engagement guarantees

• Minute-by-minute ratings

8-6

The Core ConceptsThe Core Concepts

• Reach: % of audience exposed at least once.

• Frequency: # of times a person sees it, on average.

• Effective reach: % of people who’ve seen it 3+ times (or more).

• Frequency distribution: Exactly how many see how often.

8-7

Back to the FutureBack to the Future

The Wonderful World of Disney

Mutual of Omaha's Wild Kingdom

8-8

• Bewitched Chevrolet

• Bewitched Quaker

8-9

AbsoluteAbsolute

8-10

Product PlacementProduct Placement

8-11

High points (low points?)High points (low points?)in product placementin product placement

• http://www.ew.com/ew/article/0,,20215225,00.html

8-12

Higher Levels of Engagement Higher Levels of Engagement Experiential MediaExperiential Media

8-13

8-14

Media Industry TrendsMedia Industry Trends

• Engagement– The captivating quality of media

to grab and hold attention.

• Brand Touch Points– All the various ways consumers

come in touch with a brand.

Video SnippetHasbro sends one cohesive

message through several media to drive sales.

8-15

Print Media CharacteristicsPrint Media Characteristics

• Ads in newspapers, magazines, brochures, posters, outdoor

• More information, richer imagery, and longer messages than broadcast

• Often used to generate cognitive responses• More flexible, less fleeting, and more

engaging when targeted to special interest audiences

• Can engage the senses of sight, touch, and smell

8-16

Newspaper BasicsNewspaper Basics

• Newspaper’s primary function is news, making it appropriate for ads that announce sales, events, or other news.

• Readership is declining, especially among younger people.

• Newspapers are a local, mass medium.• Market selectivity allows newspapers to target

specific consumer groups.

Principle: A basic principle of newspaper publishing

is that people read newspapers as much for the ads as they do for the news stories.

8-17

Newspaper: Newspaper: Frequency of PublicationFrequency of Publication

• Dailies– About 1,500 dailies in the United States, usually

published in cities and larger towns.

• Weeklies– About 6,700 serving towns, suburbs, and smaller cities.

• Sunday editions– Approximately 30% of dailies and a few weeklies also

publish Sunday editions.

• Business or organization newspapers– May be published weekly, monthly, quarterly,

bimonthly (every other month), or semimonthly (twice a month).

8-18

Newspaper: Format and SizeNewspaper: Format and Size

• Broadsheet – Standard size generally 22 inches deep and

14 inches wide with eight columns.

• Tabloid– Half the size of a broadsheet with five or six

2-inch columns.

8-19

Types of Newspaper AdvertisingTypes of Newspaper Advertising

• National vs. Local• Classified

– Advertising by individuals to sell their personal goods and advertising by local businesses.

• Display– Any size, placed anywhere except editorial section.– Run-of-paper (can run anywhere) or preferred-

position (select sections where ad runs).

• Supplements– Usually independently published, syndicated,

magazine-style publications that are sold to newspapers and inserted on Sunday.

– Free-standing inserts are preprinted advertisements, such as the grocery ads, that are inserted into the newspaper for a fee.

8-20

Newspaper Industry TrendsNewspaper Industry Trends

• Readership is declining, particularly among young people.

• Newspaper production costs are increasing.

• Internet delivery is becoming a growth area for the industry.– Stories are delivered

through web phones, pagers, emails, Palm Pilots, Blackberries.

Visit the Site

8-21

Magazine BasicsMagazine Basics

• Over 92% of all U.S. adults read one magazine per month, spending 44 minutes per issue.

• Quality of reproduction is their greatest strength.• Over half of all new magazines fail.• Most magazines focus on niche markets related to

hobbies, sports, business, and professions.• Zines, online versions of traditional magazines,

represent the greatest growth area.

Principle: If you want to start a successful magazine,

create a special-interest publication aimed at a narrow or niche audience.

8-22

Rank Gross Ad Revenue05 04 Magazine $ Mil %

change

1 1 People $1,374.2 8.1

2 5 Better Homes & Gardens 971.5

9.4

3 3 Time 944.6 -6.0

4 2 Sports Illustrated 925.7 -

9.8

5 4 TV Guide 726.1 -20.9

6 7 Parade 626.0 1.6

7 6 Newsweek 622.0 -

4.8

8 8 Reader’s Digest 586.9

5.5

9 9 Good Housekeeping 586.5

7.8

10 11 Woman’s Day 502.7

11.2

11 10 Cosmopolitan 472.8

3.5

12 13 InStyle 455.4 8.5

13 15 Family Circle 434.6

9.9

14 14 USA Weekend 431.4

3.6

15 22 Us Weekly 417.4

28.5

16 19 Ladies’ Home Journal 412.9

12.3

17 12 Business Week 396.5 -

7.8

18 20 Vogue 392.8 8.5

19 16 Forbes 381.6 -0.2

20 23 The New York Times Magazine 373.8

21.1

Table 8.2 Top 20 Magazine Advertising Leaders(ranked by total U.S. advertising and circulation gross revenues in 2005)

Source: Maureen Morrison, “Leading Magazines Gain 5.2% to $36.6 Billion,” Advertising Age, October 23, 2006, S-13.

8-23

Types of MagazinesTypes of Magazines• Consumer Magazines

– Aimed at consumers who buy products for personal use.

• Business Magazines– Trade papers are aimed at retailers,

wholesalers, and other distributors; e.g., Chain Store Age

– Industrial magazines are aimed at manufacturers; e.g., Concrete Construction.

– Professional magazines are aimed at physicians, lawyers, and other professionals; e.g., National Law Review, MediaWeek.

– Farm magazines are aimed at those working in agriculture; e.g., Farm Journal and Feed and Grain.

8-24

Classifications of MagazinesClassifications of Magazines• Vertical vs. horizontal publications

– Vertical: contains stories about and info about an industry– Horizontal: deals with business functions across industries

• Geography– National, regional editions (e.g., Los Angeles Magazine,

Southern Living’s southwestern edition zoned editions of national magazines)

• Demographics– Age, income, occupation, etc. (e.g., Newsweek’s college

edition and Time’s editions for business executives and doctors)

• Editorial Content– General (Reader’s Digest), women’s (Family Circle),

shelter (House Beautiful), business (Forbes), and special interest (Ski).

8-25

Magazine Advertising: FormatMagazine Advertising: Format• Premium positions

– Back cover, inside covers• Double-page spread

– Two ad pages facing each other• Bleed page

– Color goes to edge of the page• 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

8-26

Magazine Readership Magazine Readership MeasurementMeasurement

• Magazine rates are based on guaranteed circulation a publisher promises to provide.

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

• Objective, outside measurement companies:– Audit Bureau of Circulation—independently verifies

statements about magazine circulation statistics.

– Media Mark—MRI measures readership for many popular national and regional magazines.

– Simmons Market Research Bureau—provides psychographic data on readers plus what products they buy.

– Companies like Starch, Gallup & Robinson provide audience size and behavior information.

8-27

Magazine Advertising TrendsMagazine Advertising Trends

• Product placement, although opposed by the The Magazine Editors Association, will happen.

• Online technology has led to online magazines.• Traditional formats provide interesting writing

that’s portable.• The questions is: What works best for the media

strategy for a particular target audience?

8-28

Directory AdvertisingDirectory Advertising• Directories list people or companies, phone numbers,

and addresses.

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

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

• 7,500 directories for professional and interest groups

Principle: The principle behind directory advertising is

that it is directional—it tells people who already are in the target market where to go to get the

product or service they want.

8-29

Out-of-Home AdvertisingOut-of-Home Advertising

• OOH includes billboards, hot-air balloons, buses, posters on walls, kiosks, blimps, airport displays.

• Ranks second to the Internet in terms of growth.• It’s situational: can target specific people at a

specific time when they’re most interested.

8-30

Out-of-Home Advertising:Out-of-Home Advertising:Outdoor AdvertisingOutdoor Advertising

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

• Two primary uses of outdoor:– As reminder advertising (e.g., McDonald’s)– As a directional (e.g., hotels, gas stations)

8-31

Out-of-Home Advertising:Out-of-Home Advertising:Outdoor AdvertisingOutdoor Advertising

• Size and Format– Printed poster bulletin—posted

like wallpaper– Painted bulletin — on signs,

buildings, roofs, mountains– Extensions/cutouts — go

beyond border of rectangle– Digital displays — use wireless

technology to change message– Message is about 8 to 10 words

• Buying outdoor– Sold in “showings”– Based on traffic counts– Boards are rented for 30 days

8-32

Out-of-Home AdvertisingOut-of-Home Advertising• On-premise signs

– Identify a store– Directional and

informational– Help locate businesses

• Posters– Used on buildings, kiosks,

vehicles, and bulletin boards

– Usually have few words– Kiosks are designed for

posters• Transit advertising

– Ads on buses, taxis, and moving billboards

– Interior and exterior

Replace photo

8-33

PackagingPackaging

• Both a container and a communication vehicle

• Constant brand reminder once at home or office

• Presents brand image and communicates critical benefits information

• Can deliver benefits like recipes

Principle: A package is the last ad a customer sees before

making a decision on which brand to buy.

8-34

Using Print and Out-of-HomeUsing Print and Out-of-Home

• Use newspaper for announcements of something new, or for targeting local markets.

• Use magazines for targeting people with special interests; they’re also good for brand image or longer explanations.

• Use outdoor for people on the move to provide directional information; also good for brand reminders.

• Use directories to catch people when they’re shopping.