The World of Media

1
The World of Media

• Chapter 6

Part Two
2
INTRODUCTION

• INTRODUCTION

A 236 Billion Business
US advertising media expenditures 2000 est.
www.mccann.com
3
Current Media Choices

• Now, well cover

Print Media Broadcast Media Other Media Opp
ortunities
Current Media Choices
4
Todays Media World

• 3 Major Ad Media Categories

Print Newspapers Magazines Out-of-Home Br
oadcast Radio Television Other Media Direc
t Mail, Yellow Pages, etc
New Media
5
Todays Newspapers
Newspaper facts

• Local advertisers use newspapers
• Newspapers reach 60 million
  households
  
• Newspaper ownership
• National publishers
• Knight-Ridder
• Local publishers
• Multi-Media Organizations
• News Corporation
• Gannett

6
Todays Newspapers

• Newspaper facts

Over 1,500 US newspapers Daily newspapers reach
58.7 of U.S. 68 on Sunday Newspaper ad rev
enue 45.4 billion (2003) Top 7 newspapers hav
e circulation over 1 million
7
Todays Newspapers
Newspaper facts

• 78 rely on newspapers for employment ads
• 69 use newspapers to find an apartment
• 64 read the newspaper when looking for grocery
  advertising
  
• However, there are some major challenges

8
Todays Newspapers

• Major Challenges

Intense Competition
For Ad Dollars From Internet (for profitable cl
assified ads) Newsprint Costs CNN/Evening TV
News replaces newspaper as source of latest
news. Alternative newspapers attract younger rea
ders
9
Todays Newspapers

• SIX TYPES OF ADVERTISING

1. Local Display Ads
2. National Ads
10
Todays Newspapers

• SIX TYPES OF ADVERTISING

1. Local Display Ads 2. National Ads
3. Legal Advertising
11
Todays Newspapers

• SIX TYPES OF ADVERTISING

1. Local Display Ads 2. National Ads 3.
Legal Advertising
4. Classified Ads
12
Todays Newspapers

• SIX TYPES OF ADVERTISING

1. Local Display Ads 2. National Ads 3.
Legal Advertising
4. Classified Ads
5. Pre-prints
13
Todays Newspapers

• SIX TYPES OF ADVERTISING

1. Local Display Ads 2. National Ads 3.
Legal Advertising 4. Classified Ads 5. Pr
e-prints
6. Coupon Ads
14
Todays Newspapers

• SIX TYPES OF ADVERTISING

1. Local Display Ads 2. National Ads 3.
Legal Advertising 4. Classified Ads 5. Pre
-prints
6. Coupon Ads
ROP (Run of Press) FSI (Free Standing Inserts)
15
Todays Magazines

• Magazine facts

11 billion - 03 ad revenue
50 - of space is ads Subscriptions - seco
nd revenue source Three Big Publishers Each pu
blishes 16 titles Conde Nast Hearst Time War
ner
16
Todays Magazines

• Three Types of Magazines

Consumer
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Todays Magazines

• Three Types of Magazines

Consumer
General
TV Guide - Publisher 4th largest in circulation
18
Todays Magazines

• Three Types of Magazines

Consumer
General
Specialized
19
Todays Magazines

• Three Types of Magazines

Consumer
General
Specialized
Brides Condé Nast 1 in ad pages
20
Todays Magazines

• Three Types of Magazines

Consumer
General
Specialized
Business or Trade
Business Week McGraw Hill
21
Todays Magazines

• Three Types of Magazines

Consumer
General
Specialized
Business or Trade
AdWeek - BPI- Trade magazine
22
Todays Magazines

• Three Types of Magazines

Consumer
General
Specialized
Business or Trade
Journals Newsletters
Journal of Advertising Education
scholarly journal
23
Todays Magazines

• New magazine concepts

Always room for a new concept
Need audience and advertiser base
Desktop publishing has lowered barriers to entry
Important source of revenue growth for publishers
24
Out-of-Home

• An exciting 5.5 billion medium (03)

Technology creating new opportunities
25
Out-of-Home
Outdoor consists of

• Bulletins
• 30 sheets
• 8 sheets

26
Out-of-Home
Outdoor consists of

• Bulletins
• 30 sheets
• 8 sheets

Transit Kiosks
Purchased monthly, based on showings
27
Broadcast - Radio TV

• Buying Time

Broadcast media sell time
They sell advertisers time on their
station(s)
28
Broadcast - Radio TV

• Buying Time
• Broadcast media sell time
• They sell advertisers time on their
  station(s)

The number of people who watch or listen to a
station establishes ratings. Media often sell ce
rtain attributes of these audiences (age, income,
sex, etc.)
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Todays Radio

• Today, radio is a local medium

National Spot Network 4.47 billion
Bought nationally/ played locally Local S
pot 15.1 billion
Sold by local stations Bought by local adver
tisers
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Todays Radio

• Major Considerations

Drive Time Largest listenership Best quality
listenership
31
Todays Radio

• Major Considerations

Drive Time Largest listenership Best quality
listenership
Radio Formats Over 2000 Country Over 1000
News Talk 902 Adult Contemp. 755
Oldies 551 Adult Standards 474
Spanish 404 Re
ligious
Formats Audiences
Radio has distinct formats
Small but loyal audiences
32
Todays Television

• Network TV

Cable TV
TV Ratings - Nielsens Tracked by AC Nielsen
GRPs, TRPs, etc.
33
Todays Television

• The Growth of Cable

Improved technology - satellite relay
Superstations provided relatively low-cost
relatively OK content Pay cable (HBO, etc.) pro
vided high-quality content (movies)
Niche channels - CNN, ESPN, MTV provided content
for specialized audiences - news, sports, music
34
Todays Television

• 4 Kinds of TV

6 Ways to Buy TV
Network National cable Syndication Local (
mostly news)

National Network National Spot National Cab
le Local Local Spot Syndication Non-networ
k cable

35
Todays Television

• The Big TV Squeeze

Fragmenting Audiences Increasing Clutter Decr
easing Effectiveness New Viewer Behaviors Surf
ing
Time-Shifting Zipping and Zapping
36
Direct Mail Yellow Pages

• Direct Mail is a 46 billion dollar business

37
Direct Mail Yellow Pages
The Yellow Pages (directory advertising) is a
13.8 billion business
38
New Media - The Internet

• Media Evolution in Action

Just as previous media evolution changed
advertising, so will this one.
Changing marketers behavior Extending advertis
ing involvement We can consume media more sele
ctively. We can, if we want, interact and become
more involved.
39
New Media - The Internet

• Change is already happening!

Every marketer has a Web site
Every marketer and agency working to develop
an Internet strategy New job opportunities expan
ding, for agencies and marketing services
even with short-term dislocations.
We are changing, too Were connected - e-mail/b
rowsers Were beginning to interact - e-commerce

40
Discussion Questions

• You The World of Media

What is your media network? How have your media
habits changed? What is the most influential me
dium in your life today? What changes in the w
orld of media have you noticed in the last five
years?
41
The World of Media

• In Conclusion...

Every day, its a new world.