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Chapter Fourteen
Using Traditional Advertising Media
? 2007 Thomson South-Western
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Chapter Fourteen Objectives

• Describe the four major traditional advertising
  media.
• Discuss newspaper advertising and its strengths
  and limitations.

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Chapter Fourteen Objectives

• Evaluate magazine advertising and its strengths
  and limitations.
• Discuss radio advertising and its strengths and
  limitations
• Discuss television advertising and its strengths
  and limitations

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Traditional Major Advertising Media
Out-of-home advertising
Newspaper
Magazines
Radio
Television
Advertisers attempt to select the media and
vehicles whose characteristics are most
compatible with the advertised brand in reaching
its target audience and conveying its intended
message
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Which Media Do It Best?

• Consider
• Advertisers objectives
• Creative needs
• Competitive challenge
• Budget availability

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Newspapers

• 56 million households during week and nearly 59
  million on Sundays.
• Leaders include
• USA Today (2.22 million daily)
• Wall Street Journal (2.11 million)
• New York Times (1.12 million)
• Historically leading advertising medium but
  declining in recent years

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Buying Newspaper Space
Standard Advertising Units (SAU)
Six column widths 1 column2 1/16 inches Depth
from 1 to 21
Premium charges for preferred space
Space rates apply to ROP (Run of
Press)
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Newspaper

• Audience in right mental frame
• Mass audience coverage
• Flexibility
• Ability to use detailed copy
• Timeliness

• Clutter
• Not highly selective
• Higher rates for occasional advertisers
• Mediocre reproduction quality
• National Buying complicated
• Changing composition of readers

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Magazine Advertising

• Hundreds of special-interest magazines

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Buying Magazine Space

• Selecting magazines that reach the target market
• Cost considerations
• Media Kits
• CPM (Cost-per-thousand)
• Mediamark Research, Inc. (MRI)
• Simmons Market Research Bureau (SMRB)

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Buying Magazine Space
Sports Illustrated Magazines Demographic
Profile
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Cosmopolitan Magazines Demographic Profile
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Partial Rate Card for Cosmopolitan Magazine

• 2005 Rates Rate Base 2,900,000

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Magazine

• Can reach large audiences
• Selectivity
• Long life
• High reproduction quality
• Detailed information possible
• Convey information with authority
• High involvement potential

• Not intrusive
• Long lead times
• Clutter
• Limited geographic options
• Circulation patterns vary by market

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Magazine Audience Measurement

• The number of subscriptions to a magazine and the
  number of people who read the magazine are not
  equivalent.
• MRI and Simmons specialize in measuring magazine
  readership and determining audience size.
• Each use different research methods, and their
  results are often discrepant.
• (The next slide shows a sample skeleton MRI
  Report for Bottled Water)

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The advertiser must weigh

• 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 Advertising

• Over 11,000 commercial radio stations in the U.S.
  
• Nearly 100 of home and cars have radios.
• Radio reaches about 94 of all persons ages 12
  and over.

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Buying Radio Time

• Matching station format with target market
• Geographic coverage using ADIs
• Day part choice

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Radio

• Can reach segmented audiences
• Intimacy
• Economy
• Short lead times
• Transfer of imagery from TV
• Use of local personalities

• Clutter
• No visuals
• Audience fractionalization
• Buying difficulties

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Radio Audience Measurement

• Arbitron is the major company involved with
  measuring listenership and audience demographics.
  
• RADAR (Radios All Dimension Audience Research)
• Arbitron uses a paper-based diary approach to
  measure listener behavior.
• Navigauge new service tracks radio-listening
  behaviors in motor vehicles using continuous
  tracking devices.

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Television Advertising

• Slightly more than 98 of all households have
  televisions
• Uniquely personal and demonstrative, yet
  expensive to produce and broadcast

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Television Programming Segments
8p.m.-11p.m. (7p.m.-10p.m.)
Prime Time
Early morning news - 430p.m.
Daytime
Preceding and following prime time
Fringe Time
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Average Prime-Time Audience (in millions) for
Four Major Networks
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Television
Network

• Market product nationally
• Major networks (ABC, CBS, Fox, NBC)
• Expensive but can be a cost efficient means to
  reach mass audience

Spot
Syndicated
Cable
Local
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The Five Highest Priced TV Programs
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Television
Network

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

Spot
Syndicated
Cable
Local
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Television
Network

• Syndicated programming
• occurs when an
• independent company
• markets a TV show to as
• many network-affiliated
• or cable TV stations as
• possible

Spot
Syndicated
Cable
Local
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Television
Network

• 80 of households with television sets
• Narrow areas of viewing interest
• Cable subscribers are more economically upscale
  and younger

Spot
Syndicated
Cable
Local
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Television
Network

• Local advertisers are turning to television
• Inexpensive during the fringe time

Spot
Syndicated
Cable
Local
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Television

• Demonstration ability
• Intrusion value
• Ability to generate excitement
• One-on-one reach
• Ability to use humor
• Effective with sales force and trade
• Ability to achieve impact

• Escalating costs
• Erosion of audience
• Audience fractionalization
• Zipping and zapping
• Clutter

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Infomercials

• Introduced in the early 1980s
• Long commercial (28 to 30 minutes)
• The production cost is expensive
• Especially effective promotional tool for moving
  merchandise

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Brand Placements in TV Programs

• Reason fear that TV advertising is no longer as
  effective as it used to be
• Brand managers pay to get prominent placement for
  their brands
• Survivor program is the poster child for this
  trend
• Advertisers who purchased commercial time in
  Survivor got prime brand placement in the
  program

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Television Audience Measurement

• Higher rated programs command higher prices
• Ratings are difficult to come by accurately
• One primary rating serviceNielsens People Meter
  and one under developmentSRIs SMART System

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Television Audience Measurement
Nielsens People Meter Technology

• Handheld device slightly larger than a TV
  remotehas 8 buttons for family members and two
  additional buttons for guests
• Records what programs are watched, how many
  households are watching, and which family members
  are in attendance

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National Audience Measurement
Nielsens People Meter Technology

• Viewing information is combined with each
  households pertinent demographic profile
• Participating households receive a stipend
  (typically, 600 for a two-year period) for
  participating in the program.)
• Networks complain that the Nielsen data
  undercounts major segments of the population,
  especially those watching TV outside the home.

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Local Audience Measurement

• Nielsens Diary Panels
• Nielsen has used paper diaries since the 1950s to
  collect information about viewing habits.
• 375,000 households fill out these diaries
• Because at least 10 of the diaries come back
  illegible or improperly filled out, Nielsen is
  using LPMs (Local People Meters) to collect daily
  feedback in major markets.

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Measuring Away-from-Home Viewers and Listeners

• College students viewing TV in dorms and people
  consuming radio and TV at bars, gyms, and
  restaurants are not accounted for in the typical
  at-home viewing measurements.
• Nielsen and Arbitron are testing PPM (portable
  people meter) technology that can track radio and
  TV exposure at any location.
• Competition has come and gone and Nielsen remains
  the one company measuring TV viewership.