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CHAPTER 1O PRINT MEDIA Chapter Overview This chapter continues the analysis of the major media of advertising by examining the two primary types of print media—magazines and newspapers. The characteristics of each medium are examined including the different types of magazines and newspapers and their advantages and limitations as advertising media. Attention is given to audience measurement for magazines and newspapers, their rate structures and the purchase of advertising space in each. The discussion of each medium concludes with a discussion of future developments that will influence their role and the nature of magazines and newspapers as advertising media. Learning Objectives 1. To examine the structure of the magazine and newspaper industries and the role of each medium in the advertising program. 2. To analyze the strengths and limitations of magazines and newspapers as advertising media. 3. To examine the various types of magazines and newspapers and the value of each as an advertising medium. 4. To discuss how advertising space is purchased in magazines and newspapers, how readership is measured, and how rates are determined. 5. To consider future developments in magazines and newspapers and how these trends will influence their use as advertising media. Chapter and Lecture Outline I. INTRODUCTION AND THE ROLE OF MAGAZINES AND NEWSPAPERS Magazines and newspapers have been in existence as advertising media for more than two centuries and until the 1920s were the only major media available to advertisers. Despite the growth and competition of the broadcast media, newspapers and magazines have remained important to both their readers and advertisers. Magazines have become a highly specialized medium that reaches specific target audiences in both the consumer and business markets. Newspapers are still the largest advertising medium in terms of both ad revenue and number of advertisers and are particularly important to local advertisers. Advertising revenue is extremely important to magazines and newspapers as few, if any, could survive without it. The role of magazines and newspapers in the advertiser’s media plan differs from the broadcast media in that they are high-involvement media which allow the presentation of detailed information that can be processed at the reader’s own pace. However, the characteristics of each medium, their advantages and limitations as advertising media vehicles, and their role in the media mix are quite different. Chapter 10 - Print Media 118 II. MAGAZINES Magazines serve the educational, informational, and entertainment needs and interests of a wide range of readers in both the consumer and business markets. There has also been a tremendous growth in business publications as their number has grown to more than several thousand titles. While some magazines are general mass-appeal publications, most are targeted to very specific types of audiences in both the consumer and business markets. A. Classifications of Magazines—A useful way of classifying magazines is provided by Canadian Advertising Rates and Data (CARD) which divides the publications into three broad categories based on the audience to which they are directed. 1. Consumer magazines—those that are bought by the general public for information and/or entertainment. CARD divides more than 550 domestic consumer magazines into 44 classifications, among them general interest, sports, travel, and women’s. Consumer magazines represent the major portion of the magazine industry in terms of advertising revenue. 2. Farm publications—the second major CARD category consists of magazines direct to farmers. There are approximately 86 publications targeted to nearly every possible type of farming or agricultural interest. 3. Business publications—these are magazines or trade journals that are published for specific businesses, industries, or occupations. CARD’s 109 major categories of business publications include those directed to specific professional groups, industrial magazines directed to various manufacturing and production industries, trade magazines, and general-business publications. B. Advantages of Magazines 1. Selectivity—Magazines are the most selective of all media except direct mail. Most magazines are published for special interest groups or activities. 2. Reproduction quality—magazines are generally printed on high-quality paper stock and use printing processes that provide excellent reproduction in black and white or colour. 3. Creative flexibility—Some magazines offer a variety of special options that can enhance the creative appeal of the ad and increase attention and readership. Examples include gatefolds, bleed pages, inserts, pop-ups, and creative space buys such as half or quarter page ads. 4. Permanence—Magazines are often kept for reference and/or read over several days. One benefit of the longer life of magazines is that reading occurs at a less hurried pace and there is more opportunity to examine ads in considerable detail. 5. Prestige—Companies whose products rely heavily on perceived quality, reputation, and/or image often buy space in prestigious publications with high-quality editorial content whose consumers have a high level of interest in the advertising pages. Chapter 10 - Print Media 119 6. Consumer receptivity and involvement—Magazines are generally purchased because the information they contain interests the reader, and ads provide additional information that may be of value in making a purchase decision. Consumers consider magazines to be the primary source of information for a variety of products and services. C. Disadvantages of Magazines 1. Costs— The absolute cost of advertising in large mass-circulation magazines like MacLean's can be very expensive, particularly for popular positions such as back covers. 2. Limited reach and frequency—The percentage of adults reading any individual publication tends to be much smaller, so magazines have a thin penetration of households. Thus, companies who want to reach mass markets have to buy space in a number of magazines. 3. Long lead time—Most major publications have a 30- to a 90-day lead time, which means space must be purchased and the ad must be prepared well in advance of the actual publication date. 3. Clutter and competition for readers’ attention—Clutter is a problem for magazines. This problem is something of a paradox: the more successful a magazine becomes, the more advertising pages it attracts, which leads to greater clutter. D. Magazine Circulation and Readership—Two of the most important considerations in deciding whether to utilize a magazine in the media plan are the size and characteristics of the audience reached by the publication. Important considerations include the circulation of the publication as well as its total readership. 1. Circulation—circulation figures represent the number of individuals who receive a publication, either through subscription , store purchase or controlled circulation. The number of copies distributed to original subscribers or purchasers is known as primary circulation and is used as the basis for the magazine’s rate structure. Many publications base their rates on guaranteed circulation and provide rebates if the number of delivered magazines fall below the guarantee. a. Circulation verification—these services are provided by several companies to ensure circulation figures for magazines are accurate. Most major publications are audited by the Audit Bureau of Circulations (ABC). 2. Readership and total audience—in addition to primary circulation figures, advertisers may be interested in the number of people that a publication reaches as a result of secondary or passalong readership. Total audience or readership of a magazine can be determined by taking the readers per copy and multiplying this figure by the circulation of an average issue. E. Audience Research for Magazines—Media planners are interested in the match between a magazine’s readers and the advertiser’s target audience. Information on readers demographic, lifestyle and product usage characteristics are available from studies conducted by the magazines Chapter 10 - Print Media 120 themselves as well as from syndicated research studies. The primary Canadian source of information concerning magazine audiences is the Print Measurement Bureau (PMB). It measures readership, consumption of other media, shopping behaviour and product usage. F. Purchasing Magazine Advertising Space—While magazine rates are primarily a function of the circulation of the publication, rates will vary in response to a number of other variables including size of the ad, position, number of colours, particular editions chosen (geographic, demographic), any special mechanical or production requirements, the number and frequency of insertions and whether the circulation is controlled (free) or paid.. Advertising space is generally sold on the basis of space units such as full page, half page and quarter page. Ads can be produced in black and white, black and white plus one colour or four colours. G. The Future of Magazines—The magazine industry continues to grow in terms of the number of both consumer and business publications. Specific issues regarding the future of magazines that might be discussed include: 1. Stronger editorial platforms—Magazines with strong editorial platforms that appeal to the interests, lifestyles, and demographics of consumers and market trends will have the best chance of attracting readers and advertisers. 2. Circulation management—Circulation is becoming the major source of revenue for many publications, and they must carefully consider the costs of attracting and maintaining additional readers or subscribers. 3. Niche marketing – As marketers continue to move toward greater market segmentation, they are making greater use of magazines because of their high selectivity. 4. Advances in technology—Selective binding and inkjet imaging make it possible to personalize ads and offer ultra-narrow target marketing. 5. Online delivery methods—Some magazines are providing online versions of their publications. It remains to be seen whether this method of distribution will catch on with readers. III. NEWSPAPERS Newspapers are the second major form of print media and represent the largest of all advertising media in terms of total advertising volume. Newspapers are an especially important advertising medium to local advertisers such as retailers. However newspapers can also be a valuable medium to national advertisers as well. A. Types of Newspapers—The vast majority of newspapers are daily publications serving a local community. However, there are other types of newspapers that have special characteristics that make them valuable to advertisers. Classifications of newspapers include: Chapter 10 - Print Media 121 1. Daily newspapers—published each weekday and found in most larger cities and towns across the country. In 2000, there were 108 daily newspapers in Canada and these were read by approximately 60% of adults each weekday. 2. Community newspapers—most community newspapers originate in small towns or suburbs where the volume of news and advertising is not adequate to support a daily paper. They appeal primarily to local advertisers in the community because of their limited geographic focus. 3. National newspapers—national newspapers in Canada include The National Post and The Globe and Mail. They appeal primarily to national advertisers and to regional advertisers that use specific geographic editions of these papers. 4. Special-audience newspapers—there are a variety of papers that offer specialized editorial content and are published for specific groups. Marketing Magazine is an example of a special audience newspaper as are college newspapers. 4. Newspaper supplements—although not a category of newspapers per se, many papers include magazine type supplements. An example is The Globe and Mail’s Report on Business which is published monthly. B. Types of Newspaper Advertising—Advertising in newspapers can be divided into different categories which include: 1. Display advertising—display ads are found throughout the paper and generally use illustrations, headlines, white space and other visuals in addition to copy text. Display ads account for approximately 70 percent of the advertising revenue of the average newspaper. Display ads can be further classified as local or national/general advertising. Local advertising refers to ads placed by local advertisers targeted to the market area served by the newspaper. National or general advertising refers to newspaper display advertising done by marketers of branded products sold which are sold on a national or regional level. 2. Classified advertising—classified ads are those arranged under subheads according to the product, service, or offering being advertised and run in the classified section of the newspaper. Major categories include employment, real estate, and automotive. 2. Special ads and inserts—special ads in newspapers include a variety of government and financial reports and notices and public notices. Preprinted inserts do not appear in the paper itself but are printed by the advertiser and then distributed with the newspaper. These include circulars, catalogs, brochures and free standing inserts (FSIs) which are popular for distributing coupons. C. Advantages of Newspapers 1. Extensive penetration—In most areas, 60 percent or more of households read a daily newspaper, and the reach figure may exceed 70 percent among household with higher incomes and education levels. Chapter 10 - Print Media 122 2. Flexibility—Newspapers are flexible in terms of requirement for producing and running the ads and from the creative options they make available to advertisers. 3. Geographic selectivity—Advertisers can vary their coverage by choosing a paper or combination of papers that reaches the areas with the greatest sales potential. Most major newspapers offer advertisers various geographic or zone editions within their market. 4. Reader involvement and acceptance—An important feature of newspapers is consumers’ level of acceptance and involvement with the paper, including the ads it contains. Consumers are generally very familiar with the various sections of the newspaper and knowledgeable about the types of ads they contain. 5. Services offered—Many newspapers offer merchandising services and programs to manufacturers that make the trade aware of ads being run for the company’s product and help convince local retailers they should stock, display and promote the item. D. Limitations of Newspapers 1. Poor reproduction quality—The course paper used for newspapers, the absence of extensive colour, and the lack of time papers have available to achieve high-quality reproduction limits the quality of most newspaper ads. 2. Short life span/hasty reading—Because a newspaper is generally kept for less than a day, an ad is unlikely to have any impact beyond the day of publication and repeat exposure is unlikely. 3. Lack of selectivity—While newspapers can offer advertisers geographic selectivity, they are not a selective medium in terms of demographics or lifestyle characteristics. The only exception to this is the various sections that are available in most newspapers. 4. Clutter—Because a high percentage of the average Canadian daily newspaper is devoted to advertising, the advertiser’s message must compete with numerous other ads for consumers’ attention and interest. E. Buying Newspaper Advertising Space As with any medium, the media planner must understand the size and characteristics of the audience reached by a newspaper. Basic sources of information concerning the audience size of newspapers come from a number of sources. 1. Newspaper Circulation and Readership – The basic source of audience information comes from the circulation figures in CARD. The ABC verifies circulation figures for many newspapers. The Canadian Community Newspapers Association (CCNA). Data on newspaper audience size and characteristics is available from NADbank. Chapter 10 - Print Media 123 2. Newspaper Audience Measurement – NADbank specifically measures readership of local and national newspapers. Its measurements include time spent reading, frequency of reading, method of newspaper receipt as well as product usage and usage habits for other media. Their study indicates that adults spend an average of 48 minutes per weekday and over 90 minutes on the weekend reading newspapers. 3. Newspaper Advertising Rates – Advertising space in newspapers is sold by the agate line and column width. Most newspapers offer volume discounts. Their are additional charges for the use of colour and for preferred page and section positions. F. The Future of Newspapers—It is unlikely that newspapers’ importance as a local advertising medium will change in the near future. However, newspapers will continue to battle for advertising dollars from national advertisers as problems with reproduction quality and the rate differential continue. Newspapers are concerned with declining readership as well as competition from other media and the increasing potential to lose advertising dollars to direct marketing and telemarketing. Local radio and television stations (particularly cable) as well as the expanded market for yellow pages advertising are also pursuing local advertisers who traditionally relied heavily on newspaper advertising. The decline in readership of newspapers that has resulted from the fast-paced, time-poor lifestyle of the modern dual-income household and popularity of television is also a problem worth discussing. Some specific issues regarding the future of newspapers that should be discussed include: 1. Competition from other media such as direct mail, local radio and television, and the Internet. 2. Circulation management 3. Cross-media buys with other newspapers as well as magazines 4. Attracting and retaining readers Teaching Suggestions This chapter is designed to provide the student with a general understanding of the two major types of print media, magazines and newspapers. As with television and radio, it is important for students to understand the general characteristics of magazines and newspapers including the different types or classifications of each medium, their specific advantages and limitations as advertising media, how readership is measured, and how rates are determined and advertising space is purchased. The instructor should call students’ attention to the wide variety of magazines available and their ability to reach nearly every consumer interest, lifestyle, and activity as well as most businesses. You might ask your students if there is any segment of the consumer or business market that does not have one or more magazines targeted towards it? One interesting point of discussion is whether there are too many magazines on the market and whether it is possible for the highly specialized publications to survive. Students might also be asked to find and discuss examples of magazines that are using selective binding and inkjet imaging to target and personalize ads. A very interesting web site that you may want to visit for some interesting information on U.S. magazines is that of the Magazine Publishers of America (MPA). Their site can be found at www.magazine.org. With regard to newspapers, it is important to stress their importance as an advertising medium for local advertisers and also to discuss how national advertisers might be encouraged to allocate more of their budgets to newspapers. Attention should also be given to the problem of declining newspaper readership, particularly since the young generation of people in this country is very dependent on the broadcast media Chapter 10 - Print Media 124 and less likely to read a newspaper. You might ask students how many of them read a newspaper on a daily basis and what particular sections they read. It is likely that many of them do not read a newspaper regularly. The implications of this for advertisers can be discussed. The Newspaper Association of America has a very interesting web site that contains a great deal of information that can be helpful in discussing trends and development affecting newspapers, both in general and as an advertising medium. Their site can be found at www.naa.org. Answers To Discussion Questions 1. Discuss the strengths and limitations of magazines as an advertising medium. How do magazines differ from television and radio as advertising media? There are numerous advantages of magazines as an advertising medium. These include their selectivity or ability to reach specific target audiences, their reproduction quality, creative flexibility in terms of the type, size and placement of advertising material, their permanence or long life span, the prestige associated with advertising in some publications, consumer receptivity to and involvement with magazine advertising, and the special services offered by some publications. Disadvantages or limitations of magazine advertising include the high absolute costs of advertising in many publications, the limited reach and frequency (particularly for individual publications) the long lead time often required for placing an ad, and the problem of advertising clutter and competition among the numerous ads for the readers’ attention. Magazines and newspapers play an important role as advertising media in an integrated marketing communications program. They allow the presentation of detailed information that can be processed at the receiver’s own pace whereas TV and radio are externally paced media which means the receiver cannot control the rate at which the information is processed. Magazines are more suitable than the broadcast media for delivering detailed ads with a great deal of information or visuals that the reader needs time to study or examine. However, magazines are not as effective as television for reaching mass audiences and they offer advertisers the same creative options that are available through TV commercials. 2. Describe what is meant by selectivity with regard to the purchase of advertising media and discuss some of the ways magazines provide selectivity to advertisers. Selectivity refers to the ability of an advertising media vehicle to reach a specific target audience. Magazines provide selectivity to advertisers in a number of ways. Most magazines are published for readers with specific interests and lifestyles or who are involved with or work in a specific profession, business or area. Magazines also offer demographic and geographic selectivity. The editorial content of various magazines generally appeals to specific demographic groups based on factors such as gender, income, occupation, and education. Magazines also offer demographic selectivity through special editions that are targeted at different demographic segments. Geographic selectivity is possible as magazines can make it possible for advertisers to focus on certain cities or regions. This can be done by advertising in a magazine that is targeted to a particular geographical area such as a regional or city magazine. Geographic selectivity is can also be achieved in magazines by purchasing ad space in specific geographic editions of national or regional magazines. 3. Explain why advertisers of products such as cosmetics or women’s clothing would choose to advertise in a publication such as Flare, Elm Street or Chatelaine. Chapter 10 - Print Media 125 Women are very likely to be receptive to ads for cosmetics or clothes in these publications. In fact, one might argue that one of the reasons women buy fashion magazines such as Flare, Elm Street or Chatelaine is to see the ads. For example, clothing ads provide some insight into new styles and fashions and will be of great interest to many of the magazines’ readers. Advertisers will tolerate the high number of ads in these publications because they create a very favourable environment that includes high quality photography and artwork as well as articles that are of interest to women. 4. Discuss how circulation figures are used in evaluating magazines and newspapers as part of a media plan and setting advertising rates. Circulation figures represent the number of individuals that receive a publication, either through subscription or store/newsstand purchase. Total audience or readership refers to the total number of individuals who read a magazine or newspaper and is determined by taking the readers per copy and multiplying this figure by the circulation of the average issue. Magazines and newspapers use circulation figures and readership estimates to set their advertising rates. The greater the number of readers the publication can deliver, the more than can charge for advertising space. Media buyers often prefer to use circulation figures of a publication in making their purchases since they are more verifiable. Total audience or readership figures rely on estimates of pass-along readership which occurs when the publication is read by individuals other than the primary subscriber or in places out of the home such as waiting rooms, airplanes, etc. Media buyers generally attach greater value to the primary in-home reader versus the out-of-home or pass-on reader as the former generally spends more time with the publication, picks it up more often and is thus more likely to be attentive and responsive to advertising. 5. If you were purchasing magazine advertising space for a manufacturer of snowboarding equipment, what factors would you consider? Would your selection of magazines be limited to snowboarding publications? Why or why not? In purchasing magazine space to advertise snowboarding equipment the media planner would obviously want to know what publications are best suited for reaching snowboarders and their advertising space rates. Consideration should also be given to the amount of advertising for snowboarding equipment that appears in these publications and the problem of getting the company’s ad noticed among all the competing ads. Many North American marketers of snowboarding equipment limit their advertising to publications that focus specifically on this market such as Snowboard since virtually all of the readers of these publications are snowboarders and there would be very little, if any, wasted circulation. Companies might also consider running ads in skiing magazines such as Ski, Skiing or Powder as readers of these publications may also be snowboarders. However, one problem of advertising in snowboarding or skiing publications is the high amount of competition from ads for other companies’ equipment which may make it difficult for the company’s ad to get noticed. Consideration also has to be given to the number of snowboarders who may be viable prospects for the equipment but do not read any of the snowboarding skiing publications. To broaden its reach, the company might want to look at other magazines that reach snowboarders such as general sports publications (e.g., Sports Illustrated), outdoor magazines, or other publications that reach this age and lifestyle group. A problem the company faces in advertising in these general publications is that of wasted circulation as many of the readers may not be snowboarders. Thus, advertising in general sports or outdoor magazines may not be as cost-effective as the more narrowly targeted snowboarding or skiing publications. Chapter 10 - Print Media 126 6. Discuss the strengths and limitations of newspapers as an advertising medium. How might the decision to use newspapers in a media plan differ for national versus local advertisers? Newspapers have a number of advantages that make them popular among both local and national advertisers. These include their extensive penetration or market coverage, their flexibility in terms of production requirements and short closing times, the geographic or territorial selectivity of newspapers, the high level of involvement and acceptance consumers have with newspapers and the advertisements therein, and the valuable services many papers offer. Limitations of newspapers include their poor reproduction quality, the short life span of daily papers, their lack of selectivity with respect to demographics and lifestyle and the clutter problem that results from the vast number of ads in most papers. The decision to use newspapers in a media plan may differ for national versus local advertisers because of the rate differential that papers charge the two types of advertisers. The rates paid by national advertisers are considerably higher than those paid by local advertisers. Thus national advertisers may be less willing to use newspaper advertising or may try to avoid the higher rates by channeling their newspaper ads through special category plans, cooperative advertising deals with retailers, and local dealers and distributors that pay the lower local rates. 7. Discuss the challenges and opportunities magazines and newspapers are facing from the growth of the Internet? The growth of the Internet represents both a challenge and opportunity for magazines and newspapers. Magazines and newspapers are a source of information but also a form of entertainment. With the growth of the Internet and online services, more consumers will be spending time “surfing the net” which means they may be spending less time reading magazines and newspapers. People only have so much time available for leisure activities such as reading or watching TV and the Internet is likely to cannibalize some of the time that might have been spent reading a magazine or newspaper. Magazines and newspapers are responding to this challenge by making their publications available online. Some studies have shown consumers are comfortable with the idea of reading magazines and newspapers over the Internet. This means that it will be very important for publishers to make their magazines and newspapers available online. However, there are still many problems associated with issues such as audience measurement and the ways to sell advertising on these electronic versions of the publications. 8. Cereal advertisers would typically use magazines for advertising but some have recently used newspaper. Why would they select this new option? Your answer should address how the media would help achieve the advertiser’s communication objectives. If the advertiser’s objective is to reach a broader market, the superior reach of the newspaper medium compared to magazines would help attain that goal. If the objective is to increase the frequency that the target market is exposed to the advertiser’s message, because of their daily publication, newspapers would be the logical choice. If the advertiser wanted to have different levels of coverage in the cities where its product is sold, because of their local nature, newspapers would facilitate this. Finally, if the advertiser wanted create a pull effect by mentioning local retailers in its advertising, newspapers would be a better choice than magazines. Additional Discussion Question (Not In Text) Chapter 10 - Print Media 127 9. Choose a specific target market that an advertiser might want to reach. Discuss how magazines and/or newspapers could be used to reach this particular market in a cost effective manner. First of all it should be noted that selectivity is an inherent advantage of advertising in many magazines. Most magazines are published for special-interest groups and allow advertisers to target segments of the population that are of interest to them. In addition to selectivity based on interests or topic, magazines can also provide demographic and geographic selectivity. This can be done through editorial content as well as through special demographic and geographic editions offered by many publications. Many magazines are also offering greater selectivity through processes such as selective binding and ink jet imaging. Readers can be targeted by postal code, metropolitan area, region or demographics. Students should be asked to choose a product or service targeted at a specific market and discuss how magazines are an effective way to reach this group. They might even contact a magazine and ask for a media kit which usually provides very detailed information on how the magazine can reach specific target audiences and users of various products and services. Newspapers have the advantage of offering advertisers geographic selectivity since they can reach areas or cities of specific interest to them. However, newspapers are not a selective medium in terms of demographics or lifestyle characteristics. One way advertisers can increase selectivity of newspapers is by advertising in certain sections of the paper such as the sports, food, entertainment or business section. Within a local market area advertising in specific geographic or zone editions of a paper can enhance selectivity. Many newspapers in large metropolitan areas offer zone editions so local retailers can reach readers in their trading area. Again, students might be encouraged to contact a local newspaper (even the college paper) and request a media kit or information on advertising rates. 10. Discuss how advertisers deal with the clutter problem in both magazines and newspapers. Clutter is a serious problem in both magazines and newspapers as the ratio of advertising to editorial content is very high in both. The main way for advertisers to deal with the clutter problem is through creative advertising and space buys. Ads with strong visual images, catchy headlines and copy or very creative approaches such as “pop-ups,” gatefolds, or special inserts are ways of breaking through the clutter. Creative space buys such as “island ads” or consecutive page space buys may also help ads get noticed. Of course it is also important to remember the basic advertising principle of developing an ad that offers a benefit or promise to the readers and invites them to explore it further. 11. Discuss why companies such as Ray-Ban, Sony, IKEA and Philip Morris choose to publish their own magazines. Do you agree or disagree with critics who call some of these custom magazines “phony publishing”? Some companies publish their own magazines because they are a very good way to provide detailed information to their customers. The company controls all of the editorial content in a custom magazine and thus can provide readers with what ever type of information they feel is appropriate and, of course, is beneficial to the company. Custom magazines are valuable to a company such as Sony since it carries so such as wide variety of electronic products ranging from televisions and video equipment to stereos and digital cassette players. Custom magazines allow these companies such as Sony to provide readers with advertising as well as other forms of information in a manner that is more cost effective than media advertising. Philip Morris may have other reasons for being interested in custom magazines. A publication such as Unlimited: Action, Adventure, Good Times is a way for the company to target young men who are smokers and create an editorial environment that is consistent with the masculine image the company uses to advertise some of its cigarettes such as the various Marlboro brands. Tobacco companies are also facing the possibility of having the type of Chapter 10 - Print Media 128 advertising they use in traditional magazines restricted and they may be trying to establish their custom magazine as an alternative way of reaching smokers. Some people in the publishing industry are very critical of custom magazines and refer to them as phony publishing because they are controlled entirely by the advertiser and sometimes represent themselves as independent publications. The basis of the criticism stems from the fact that the companies who publish the magazines also control the editorial content and thus can write articles that are biased in favour of the company and its products or services. If consumers are not aware of the fact that the company publishes the custom magazine, they may interpret this favourable information as coming from a neutral, objective source and thus attribute more credibility to the stories. On the other hand, if the companies make it clear to consumers that they are publishing the custom magazines and they still choose to read them, then it is difficult to criticize them. 12. Discuss the future problems and challenges both newspapers and magazines will be facing from other media such as direct mail, television and the Internet. Newspapers and magazines face challenges from other media such as direct mail, television and the Internet. Many advertisers are already spending more of their media budgets on direct mail as they can target their messages more precisely with this medium. As the number of cable channels increases on television, the ability to target specific groups of consumers will increase which means that TV will be better able to compete with the selectivity of magazines. Newspapers also face challenges from local cable stations, which are attracting more advertising revenue from local advertisers such as retailers. The growth of the Internet is a major concern for both magazines and newspapers as consumers are spending more and more time online, which means they have less time available to read newspapers and magazines. The Internet is also becoming an important source of information for many purchases and thus competes directly against magazines and newspapers, which have traditionally played this role. Newspapers are likely to remain a very important advertising medium in the future, particularly for national advertisers. However, newspaper’s battle to win more ad dollars from national advertisers will continue to present a challenge. Newspapers must also continue to expand services and efforts to both local and national advertisers to encourage them to continue to use the paper as an advertising medium. Cross-media buys are another area where newspapers might focus their efforts to help increase their advertising revenue. Newspapers can also take advantage of their distribution system and the fact that they reach a large number of households. Many papers are collecting information from their readers and building data bases that can be made available to marketers who want to target consumers with direct-marketing efforts. The magazine industry should continue to grow as the trend toward market segmentation continues and many advertisers turn to magazines as a cost-efficient way of reaching specialized audiences. Processes such as selective binding allow advertisers to personalize ads and target them to specific types of consumers. There are a number of ways magazines can improve their position in the advertising area such as strengthening their editorial platforms, better circulation management, becoming involved in cross-magazines and media deals and using technological advances to make advertising in magazines more appealing to marketers. Many newspapers and magazines are taking steps to position themselves for the growth of the Internet by offering their publications through online computer networks or making additional information on various topic areas available through online services. Chapter 10 - Print Media 129 IMC Exercise Choose a specific consumer or business magazine and analyze it from an advertising perspective. If time permits you might write or call the publication to request a media kit from the publisher. Your report should include an analysis of the following: The target audience for the magazine in terms of both demographics and life style of the readers it attracts. The percentage of the magazine’s pages devoted to advertising versus editorial content. Is there a clutter problem in the magazine? A breakdown of the types of products and services advertised in the magazine. Why do you think these advertisers are attracted to this particular publication? An analysis of the editorial climate and mood created by the publication and how it affects who chooses to advertise in it. How might the editorial climate of the magazine affect readers processing of the advertisements? IMC Comprehensive Project Students should analyze how magazines and newspapers might be used as part of the media plan for their project. The specific assignment is as follows: IMC Project Assignment for Chapter 10 Analyze the role of magazines and newspapers in the media plan for your product or service. Your analysis should focus on how magazines and newspapers can be used to reach the target audience and help achieve your media objectives. What percentage of your media budget will be devoted to magazines and newspapers? What class of magazines and specific publications do you plan to use and why? If you plan to use newspaper advertising what are some of the factors you need to consider in making effective use of this medium? You should consult a source such as Canadian Advertising Rates and Data to get rate information on the magazines or newspaper you plan to use. You might also consider contacting some of the publishers to request media kits on their magazines. Chapter 10 - Print Media 130