Download CH 14 Advertising

ADVERTISING
CHAPTER 14
WHY IT’S IMPORTANT

Businesses rely on advertising to get your
attention and to promote their products.
Advertising pays for many of the costs of TV,
radio, newspapers, and magazines.
ADVERTISING
 Advertising
is the paid, nonpersonal form
of communication that businesses use to
promote their products.
ADVERTISING MEDIA

Mass media are means of communication such as
TV, radio, and newspapers.
ADVERTISING MEDIA

The type of medium an advertiser uses depends
on the market it wants to reach.
CATCHY SLOGANS
Advertising
slogans have
become so well
known in many
cases that people
all over the
country recognize
them. Here are
ten slogans from
advertisements.
How many of the
products or
services can you
name?
PRINT MEDIA

Print media use writing and pictures to
communicate
NEWSPAPERS
 Newspapers
are the main advertising
medium in the United States.
 More than 50 percent of adults in the United
States read newspapers.
 Advertisers can target people within a
certain area.
 The cost of printing an ad is fairly cheap.
 Most people throw their newspapers away
after they read them, so an ad’s lifespan is
usually short.
MAGAZINES
Most magazines are national in scope and appear
every week or every month.
 Special-interest magazines like Teen and Sports
Illustrated make it possible to reach target
markets on a large scale.
 People take their time to read magazines and
often save them, so magazine ads have a much
longer lifespan than newspaper ads.
 Most magazines are printed in color with much
higher quality ink and paper than newspapers.

MAGAZINES
Magazines are so broadly circulated they are of
little use to local advertisers.
 Magazine ads can’t be easily changed or used to
promote a limited offer.

Graphic Organizer
Qualities
of Newspaper
Graphic
Organizer and
Magazine Advertising
Newspaper Advertising
Narrow Circulation
Local/regional reach
Short lifespan
Easy preparation
Magazine Advertising
Broad circulation
Regional/national reach
Long lifespan
Complex preparation
Basic printing and paper
Quality printing and paper
Inexpensive
Expensive
DIRECT-MAIL ADVERTISING
Direct-mail advertising consists of ads sent by
mail to people’s homes.
 It is the biggest advertising medium after TV and
newspapers.
 Direct mail allows advertisers to reach a specific
target market.
 Direct-mail advertisers can use a variety of
formats—letters, fliers, postcards, and catalogs—
and include coupons or free samples.
 The cost of sending ads through the mail can be
very high.

DIRECT-MAIL ADVERTISING

Direct mail is often referred to as “junk mail”
because people who receive direct-mail
advertising often throw it out without ever
looking at it.
DIRECTORY ADVERTISING
Directory advertising, which consists mostly of
phone books, is especially useful for local
advertisers.
 The cost of a directory ad is usually very cheap.
 Phone books are used in almost every home, in
all areas, and kept for at least a year.
 A disadvantage of directory ads is that they have
to compete with numerous similar ads.

OUTDOOR ADVERTISING
The most common form of outdoor advertising is
a billboard.
 They are useful for local businesses and
businesses that cater to travelers.
 The main disadvantage of billboards is that
people often drive by them too quickly to notice.

TRANSIT ADVERTISING

Transit advertising usually consists of posters
placed on the sides of buses, in subway stations,
inside trains, and at airports.
BROADCAST MEDIA

Broadcast media are the most effective means of
advertising.
TELEVISION
Television has an advantage over any other
medium because it combines sounds, images, and
motion.
 Some ads are so effective that they become part
of our everyday language.
 TV ads can be shown on national, local, or cable
stations to reach any kind of market
 An infomercial is a TV program, usually 30
minutes long, made to advertise a product.
 The biggest disadvantage of TV ads is that they
can be very expensive to produce.
 Advertisers also have to pay to broadcast an ad
during a TV show.

RADIO

Like TV ads, radio ads can reach a very wide
audience.
Radio ads use music, dialogue, and sound effects
creatively to get an audience’s attention.
 Radio stations broadcast within certain areas so
they are a good medium for local advertising.
 Advertisers can reach people on the move.

WEBCASTING
A webcast is like a TV or radio broadcast but it is
sent and received over the Web.
 A webcast usually consists of a live broadcast
made by a Web camera (or “cam”) crew hired to
film a specific location or event.

CYBER ADS
Cyber ads –
 appear on the Internet.
 displayed like magazine ads.
 can be sent directly to people on mailing lists and
can include order forms like direct-mail ads.
 an added advantage in that they can use sound
effects and animation.
 Pop-up ads appear for a few seconds when you first
log onto the Internet or when you click on a site.
 Banner ads are displayed across the top or bottom of
the screen and remain there.
 Screen ads appear at the left or right of the screen
and can be printed for future reference.

MEDIA PLANNING
Media Planning is the process of selecting
advertising media and deciding the time and
space in which the ads should appear.
 To create the media plan and select the right
medium to use advertisers address 3 basic
questions

1. Can the medium present the product or service
and the appropriate business image
 2. can the desired customers be targeted with the
medium
 3. will the medium get the desired response rate?

ADVERTISING AGENCIES
Advertising agency is a business that specializes
in developing ads and ad campaigns for its
clients.
 Ad Campaign is a series of ad messages that
share a single idea and theme


Ad agencies vary in size from small that serve
regional markets to large international firms.
ADVERTISING RATES MEDIA MEASUREMENT
The number of people exposed to an ad is called
the audience
 A single exposure to an advertising message is
called an impression.
 Frequency – is the number of times an audience
sees or hears an ad
 Cost Per Thousand (CPM) is the media cost of
exposing 1,000 readers or viewers to an
advertising impression.

(The “M” in CPM come from the word Mille, which is
Latin for thousand)
MEDIA AUDIENCE
TV audience measurement is based on diaries
and viewer data collected by Nielsen Media
Research
 Nielsen Media Research takes a sample of TV
viewers in moree than 200 markets.
 Arbitron Inc uses listener diaries to measure
radio audiences in more than 260 markets
 Online audiences are measured through online
tracking services such as Google Analytics,
surveys, and computer software tracking
systems.

MEDIA AUDIENCE

The rates charged by various media
Knowing the potential audience
 How frequently your ad will be seen
 Its CPM

MEDIA RATES
Set format in terms of time (60-second TV or
radio ad) or space (a half-page newspaper ad)
 Media costs vary greatly

Type of media
 Geographic location
 Audience
Media rate or advertising rate is the amount of money
it costs to display or broadcast an ad
It’s a separate cost from what it costs to make the ad

ADVERTISING RATES MEDIA MEASUREMENT
The factors that determine advertising rates are:
• The size of an ad
• The number of people it reaches
• How often it appears
• When it appears
• Where it is placed

BIG SPENDERS
This chart
shows the
five
companies
who spent
the largest
sums of
money on
advertising
in a recent
year.
General
Motors
Corporation,
for example,
spent about
$3.7 billion
on
advertising.
PRINT MEDIA
Newspaper and magazine rates are based on
circulation, or the number of people who read them.
 Advertiser pays a rate for every 1,000 CPM a
magazine or newspaper reaches
 Newspaper and magazine ads are sold by the inch on
the page.

Rate for a column inch X # inches X # columns = RATE
Premium Position: ad placement
 Prime Positions: Ads that appear on the front or back
cover of a magazine cost more than ads inside the
magazine.

BROADCAST MEDIA
The cost of radio and TV ads depends on the size of the
audience, the reach of the station and the time of day
an ad.
 Prime Time is the time period when the network TV or
radio audience is the largest.





TV 7PM – 11Pm
Radio – Drive Times morning and afternoon
The cost to advertise on a national network is much
more expensive than on a local station.
Radio and TV advertisers usually pay for ads that are
10, 30, or 60 seconds long.
THE INTERNET
 The
cost of Internet advertising is based on
the size and format of ads.
 The length of time an ad runs also affects
the price.
 Internet advertisers pay a certain amount
for every 1,000 people that receive the ad.
 The advertiser pays a fee to the search
engine whenever someone clicks on the ad.
 The advertiser that bids the highest for a
particular keyword has its ad show up first
on the list of ads next to the search results.