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Advertising
Chapter 19
Advertising Media 19.1
 After finishing this section you will know:
 The concept and purpose of advertising
 The different types of advertising media
Advertising and Its
Purpose
 Promotional advertising- advertising
designed to increase sales
 Institutional advertising- attempts to
create a favorable impression and
goodwill for a business or organization
 Allows large numbers of people to see
the advertiser’s message
Advertising Drawbacks
 Cannot focus on individual needs
because the same message is conveyed
to all customers
 Some forms of advertising can be too
expensive- TV
 Advertising can be inefficient—not
everyone who reads a magazine is a
potential customer
Types of Media


1.
2.
3.
4.
Media- the agencies, means, or instruments
used to convey advertising messages to the
public
There are four general categories of
advertising media:
Print media
Broadcast media
Online advertising
Specialty media
Print Media
 Print media- written advertising that may
be included in newspapers, magazines,
direct mailings, signs, and billboards
Print Media-Newspaper
 Newspaper advertising- main form of print
media for most businesses
 Advantages of newspaper advertising:
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Large readership
High level of reader involvement
Relatively low cost, ads are timely
Advertisers can easily change ads up to 24 hours
before printing
 55% of US adults read a newspaper every day
Print Media-Newspaper
 Limitations of newspaper advertising:
 Wasted circulation—sent to more than target
market
 Short advertising life—papers are thrown
away
 Black and white format is less appealing
Print Media-Magazine
 Magazine advertising- can be classified
as local, regional, national, as well as
weekly, monthly, and quarterly
Print Media-Magazine
 Advantages of magazine advertising:
 Can target audience because they know the
circulation and characteristics of their readers
 Longer life span and are often read more slowly and
thoroughly than newspapers
 Information in a magazine ad is more likely to be
remembered
 Print quality is better
 Magazines are kept longer—increasing the chances
that the ads will be reread
 Variation of presentation formats—full page, twopage spreads, or heavy stock inserts
Print Media-Magazine
 Drawbacks to magazine advertising:
 Less mass appeal within a geographical
area
 More expensive than newspapers
 Deadlines for submitting ads are months in
advance
Print Media-Direct Mail
 Direct-mail advertising- sent by
businesses directly through the mail to
prospective customers
 Types of direct-mail advertising include:
newsletters, catalogs, coupons,
samplers, price lists, circulars, and
invitations to special events
Print Media-Direct Mail
 Mailing lists:
 Assembled by the advertiser from current
customer records
 Can be purchased from a direct-mail
specialty firm
 Must be accurate, or using them is
useless
Print Media-Direct Mail
 Advantages of direct mail:
 Highly selective about who receives mailing
 Control timing and prevent competitors from
seeing the initial mailing
 Wide choice of sizes and formats
 Can easily incorporate coupons or
incentives
 Customers can order directly by using an
order form or toll-free number
Print Media-Direct Mail
 Disadvantages of direct-mail advertising:
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Low level of response—less than 1%
Customers see it as “junk mail”
Dated customer lists
Cost is high
Print Media-Directory
 Directory advertising- an alphabetical
listing of houses and businesses
 Example: telephone directories- white
pages (houses) yellow pages
(businesses)
Print Media-Directory
 Advantages of directory advertising:
 Relatively inexpensive
 Can be used with all demographic groups
 Disadvantage of directory advertisingprinted yearly- advertisers cannot change
prices or sales for over a year
Print Media-Outdoor
 Outdoor advertising- used by both local and
national businesses
 Nonstandardized outdoor signs- used by local
firms at their places of business or around their
community
 Standardized outdoor signs- available to local,
regional, or national advertising companies in
standard sizes and placed near highly traveled
roadways where there is high visibility
Print Media-Outdoor
 Three types of standardized outdoor signs:
1. Posters- pre-printed sheets put up like
wallpaper on outdoor billboards which are
changed 3 to 4 times per year
2. Painted bulletins- painted billboards that are
changed about every 6 months to a year
3. Spectaculars- outdoor advertising signs
which use lights or moving parts and are
suited in high traffic areas
Print Media-Outdoor
 Advantages of outdoor signs:
 Highly visible
 Relatively inexpensive
 24 hour a day message
 Disadvantages of outdoor signs:
 Some states have banned billboard
advertising because they distract viewers
 Size restrictions and spacing requirements
Print Media-Transit
 Transit advertising- uses public
transportation facilities to bring
advertising message to people
 Advantages of transit advertising:
 Reaches a wide captive audience
 Defined market
Print Media-Transit
 Disadvantages of transit advertising:
 Unavailable in smaller towns and cities
 Subject to defacement
 Restricted to predetermined travel routes
 E-billboards- video screens used to
advertise products popular in bus stops,
train stations, and gas stations
Broadcast Media
 Broadcast media- includes radio and
television
 The average person spends:
 10 years watching television
 6 years listening to the radio
Broadcast MediaTelevision
 Television advertising- ultimate advertising
medium for many businesses because it can
communicate a message with sound, motion,
and color
 Prime time- between 8 and 11 p.m. when
millions of viewers are watching
 Television commercial advertisements- 30-60
seconds long
 Infomercials- 30 minute advertisements
Broadcast MediaTelevision
 Advantages of television advertising:
 Can be directed to an audience with a
specific interest
 News, comedy, history, movies, sports, or
science
 Messages can be adapted to holidays,
season changes, or special events
programming
Broadcast MediaTelevision
 Disadvantages of television advertising:
 Highest production costs of any advertising
media
 Prime-time costs prohibit smaller companies
from using television advertising
 Actual audience size is not assured
 Television commercials are seen as an
opportunity to leave the room
Broadcast Media-Radio
 Radio advertising- it is estimated that
radio reaches 95% of all people age 12
and over in a given week
 Best radio advertising times- when
people are going to and from work
 15, 30, or 60-second time period
commercials
Broadcast Media-Radio
 Advantages of radio advertising:
 Can select an audience
 More flexible than print media because
messages can be changed easily
 Mobile medium that can be taken just about
anywhere
Broadcast Media-Radio
 Disadvantages of radio advertising:
 Messages have a short life span
 Lack of visual involvement causes listeners
to become easily distracted and miss the
message
Online Advertising
 Online advertising- placing advertising
messages on the Internet
 Banner ad- a wide shallow rectangle seen at
the top or bottom of Web pages which takes
the user to the advertiser’s Web page if clicked
with a mouse
 Banner ads use rich media- animation, sound,
and video
 Interstaitial ads- screens pop up to interrupt
Web surfing
Online Advertising
 Advantages of online advertising:
 Easily measure effectiveness by the number
of click throughs
 Bold colors, top-of-page placement increase
the number of click throughs
 Disadvantages of online advertising:
 People see online advertisements as an
annoyance or distraction
 Concerned by privacy or reliability issues
Specialty Media
 Specialty media- relatively inexpensive,
useful items with an advertiser’s name
printed on them
 Items given away with no obligation attached
to receiving and keeping them
Specialty Media
 To be successful items must be:
 Practical
 Subject to frequent use
 Placed in locations with high visibility
 Limitations of specialty items:
 Distribution of items
 Items given to people who would never
consider buying the product
Other Advertising Media
 Other advertising media- businesses are
constantly creating innovative means of
transmitting messages to potential
customers
 Examples: sports arena billboards,
airplanes pulling advertising banners
Selection of Promotional
Media
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
1.
2.
3.
The advertising medium used depends on the
product being advertised
To determine the type of promotional media to use
advertisers need to address three basic questions:
Does the medium have the ability to present the
product and the appropriate business image?
Does the medium have the ability to target the
desired customers?
Does the medium have the ability to obtain the
desired response rate?
Assignment



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Page 344
Reviewing Key Terms
Thinking Critically
# 1-6
Media Rates 19.2
 After finishing this section you will know:
 How various media rates are set
 The costs of print media
 The standards for selecting promotional
media
Media Costs
 Advertising uses a set format that is
defined in terms of time or space
 Media costs vary greatly with the type of
media and geographical location
Media Costs
 Standard Rate and Data Servicepublishes rate cards for most major
media according to general categories
 Audit Bureau of Circulation- print media
publishers subscribe to ABC to have it
verify their circulation figures
 Important because advertising rates for print
media are based on circulation
Newspaper Rates
 Newspaper rates- classified into two
categories
 Classified ad- grouped or classified into
specific categories, such as help wanted,
real estate, and auto sales
Newspaper Rates
 Display ad- involve creative illustration of
the product being advertised
 A mix of art, photographs, headlines, copy,
and logo of the product or business
 Generally larger than classified ads and cost
is based on the amount of space used
 Quoting display ads- price per column inchone column wide by one inch deep
Newspaper Rates
 Run of paper rate- allows the newspaper
to choose where to run an ad in the
paper
 Color ads run at a higher rate than those
which run in black and white
Newspaper Rates
 Open rate- a.k.a. non-contract rate, the
basic charge for a minimum amount of
advertising space
 Open rate varies depending upon when the
ad will appear in the paper
 Contract rate- business who advertise
regularly get a rate discounted from the
open rate
Newspaper Rate
 Bulk space contract- guarantees that a
minimum number of column inches within
a 12 month period
 Cost per thousand (CPM)- the media
cost of exposing 1,000 readers to an ad
 Cost of the ad X 1,000/circulation = cost per
thousand
Magazine Rates
 Magazine rates- based on circulation,
quality of readership, and production
technique
Magazine Rates
 In order to determine the cost of
magazine ads, one needs to become
familiar with the following terms:
 Bleed- half or full page ads are printed to
the very edge of the page, leaving no
white border
 Magazines generally charge between 1520% more for bleeds
Magazine Rates
 Color rates- offered for color ads
 Full color- four color advertisements which cost
the most
 Premium position- where ads are placed in the
magazine on the back cover or inside the first
page
 Frequency discounts- advertisers who run the
same ad several times during the year
 The rate per issue decreases as the frequency
increases
Magazine Rates
 Commission- a percentage of sales given
by the magazine to the advertising
agency for placing the ad for the
advertiser—typical 15%
 Cash discount- offered for paying the bill
earlier than its due date
Online Rates
 Online rates- based upon the type of
format the customer desires
 Barter arrangements- each advertiser
agrees to run banner ads for the other
 Lead to more traffic for each business’s Web
sites
Radio Rates
 Radio rates- when purchasing radio time,
businesses need to determine which type
of advertising to use
 Network radio advertising- broadcast
from a studio to all affiliated radio stations
throughout the country
 Broadcast ads simultaneously to several
markets
Radio Rates
 National spot ratio advertising- used by
national firms to advertise on a local
station-by-station basis
 Used to target select markets
 Local radio advertising- done by a local
business for its target market
 Limited to a specific geographical area
Television Rates
 Television rates- vary with time of day
 Class AA time- during the hours of 8 and
11 p.m.
 Class A, B, C, D- lower based on
diminishing viewer-ship
Cooperative Advertising
 Cooperative advertising- a cost-sharing
arrangement whereby both a supplier
and a local advertiser pay for advertising
Promotional Budget

There are four common promotional
budgeting methods:
1. Percentage of anticipated sales- budget
is decided on a percentage of past or
anticipated sales
2. All you can afford method- turns all
monies to promotional activity only after
all other company expenses are paid
Promotional Budget
3. Following the competition- the
competitor’s promotional expenditures
are matched or spending is planned in
proportion to market share
4. Objective and task- the company
determines goals, considers the
necessary steps to meet goals, and
determines the cost for these
promotional activities
Assignment
 Page 350
 Reviewing Key Terms
 # 1-5