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Advertising Principles
and Practices
Media Basics
and Print Media
Part Three:
Effective Advertising Media
(Insert new book cover)
• Focuses on the creation
and delivery of
advertising messages
• Discusses the dynamic
media environments of
print and out-of home,
broadcast, interactive,
and alternative media
• Looks at planning and
buying for all media
Prentice Hall, © 2009
Questions We’ll Answer
• Why is the media landscape changing and
how does that affect the key media
planning concepts?
• What are the key points that advertisers
should know to make effective decisions
about advertising in newspapers and
magazines?
• What factors do advertisers consider in
making out-of-home advertising and
packaging decisions?
Prentice Hall, © 2009
8-3
Staying Cool
with Apple’s iPod
• Apple created buzz for iPod
with more than 6,000 iPod
and iTunes stories in major
\
publications
worldwide (PR).
• A “cool” advertising
campaign featured
Visit the
dynamic silhouettes in
Site
posters, magazines and
television ads, and
billboards.
Prentice Hall, © 2009
8-4
Media Basics
• In most cases, media is supported by
advertising.
• Media costs are the biggest part of a
campaign budget—from 80–85%.
• Achieving efficiency is critical.
• Media advertising was a $960 billion
industry in 2007.
Prentice Hall, © 2009
8-5
The Changing Media Landscape
• Consumer Media Usage
– Recent generations spend more time with media.
– Media focused lives—the average person spends 9 hours a day
with some type of media (including mass media, iPods, cell
phones, books, email).
– Media multitasking—about 68% of people use other media with
TV; 30% use more than one media at at time.
• Advertising Media Use
– Online newspaper, cable, outdoor, and the Internet is increasing;
newspaper and network TV is declining.
• The Media Plan
– Identifies the best media to efficiently deliver an advertising
message to a targeted audience.
– A subsection within an advertising plan with its own objectives,
strategies, and tactics.
Prentice Hall, © 2009
8-6
Table 8.1
Evolution of Media Availability Among the Generations
Traditionalists Baby Boomers
Gen X
[Born before 1946] [Born 1946–1964] [Born 1965–1976]
Newspapers
Magazines
Broadcast Radio
Broadcast TV
Transistor Radio
8-Track Tapes
Cassette Tapes
Walkman Radio
Video Games
VCRs
Cable TV
Personal Computers
Satellite TV
Internet
Cell phones
Online News
DVD Players
Satellite Radio
MP3 Players
TiVo
iPod Video Player
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GenY
[Born 1977–1994]
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•
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•
•
Key:
 This technology/media format was “always there”
• This technology/media format was invented during this generation’s time
Prentice Hall, © 2009
8-7
Table 8.2
Television
Broadcast TV
Cable TV
Direct Mail
Newspapers
National
Retail
Classified
Online*
Radio
Magazines
Directory
Business Papers
Out of Home
Internet**
Miscellaneous***
Total All Media
U.S. Media Advertising Expenditures
2003
($ Millions)
2004
2005
60,746
41,932
18,814
48,370
46,155
7,797
21,341
15,801
1,216
19,100
11,435
13,896
4,004
5,443
4,434
31,990
67,794
46,267
21,527
52,191
48,244
8,083
22,012
16,608
1,541
19,581
12,247
14,002
4,072
5,770
5,312
34,654
67,947
44,293
23,654
55,218
49,436
7,910
22,178
17,312
2,027
19,640
12,847
14,229
4,170
6,232
5,737
35,692
.002
-.04
.10
.06
.02
-.02
.004
.04
.32
.005
.05
.01
.02
.08
.08
.03
$245,573
$263,867
$271,148
.03
% Change
% of Media
.25
.20
.18
.07
.05
.05
.02
.02
.02
.13
*Advertising in online newspaper
**Non-newspaper Internet advertising
*** Includes weeklies, shoppers, penny savers, and cinema advertising
Source: Adapted from The Source: Newspapers by the Numbers 2006, Newspaper Association of America, January
2007,
Prentice Hall, © 2009
8-8
Key Media Players
• Media sales people work for a magazine or TV station; provide
sales kits with information about audience and medium.
• Media reps or brokers are people/companies who sell space
and time for a variety of media, allowing the media buyer to
place the buy with one order.
• Media researchers compile audience measurement data, media
costs, and availability data for the various media options.
• Media planners develop the strategic decisions outlined in the
media plan, such as where and when to advertise and which
type of media to use.
• Media buyers implement the media plan by contracting for
specific amounts of time or space, based on the plan developed
by the media planner.
• Media buying companies specialize in media research,
planning, and buying. They may be a spin off from an
advertising agency and now work for a variety of clients.
Prentice Hall, © 2009
8-9
Key Media Concepts
• Media mix
– The way various types of
media are strategically
combined to create a
certain kind of impact.
• Media vehicle
– A specific TV program
(60 Minutes), newspaper
(Chicago Tribune, El
Neuvo Herald), magazine
(Woman’s Day, GQ),
radio station or program
(NPR’s All Things
Considered, Rush
Limbaugh’s talk show).
Prentice Hall, © 2009
8-10
Key Media Concepts
• Targets and Audiences
– The goal of the media plan is
to match the advertiser’s
target audience with the
audience of a particular
medium.
• Measuring Print Audiences
– Impressions—one person’s
opportunity to be exposed
one time to an ad
– Circulation—number of
copies sold, not readership
– Gross impressions—estimate
of total impressions; if an ad
runs in three issues, the gross
impressions are impressions
times three
Prentice Hall, © 2009
8-11
Key Media Concepts
• Reach
– The percentage of the media audience exposed at
least once to the advertiser’s message during a
specific time frame.
• Frequency
– The number of times a person is exposed to an
advertisement.
– You have to hear/see an ad three times for it to
make an impact.
Principle:
The goal of a media plan is to reach as many people in
the target audience as often as the budget allows.
Prentice Hall, © 2009
8-12
Media Industry Trends
• Engagement
– The captivating quality of media
to grab and hold attention.
• Brand Touch Points
– All the various ways consumers
come in touch with a brand.
Prentice Hall, © 2009
Video Snippet
Hasbro sends one cohesive
message through several
media to drive sales.
8-13
Print Media Characteristics
• Ads in newspapers, magazines, brochures,
posters, outdoor
• More information, richer imagery, and
longer messages than broadcast
• Often used to generate cognitive responses
• More flexible, less fleeting, and more
engaging when targeted to special interest
audiences
• Can engage the senses of sight, touch, and
smell
Prentice Hall, © 2009
8-14
Newspaper Basics
• Newspaper’s primary function is news, making it
appropriate for ads that announce sales, events, or
other news.
• Readership is declining, especially among younger
people.
• Newspapers are a local, mass medium.
• Market selectivity allows newspapers to target
specific consumer groups.
Principle:
A basic principle of newspaper publishing
is that people read newspapers as much for the ads as
they do for the news stories.
Prentice Hall, © 2009
8-15
Newspaper: Types of Circulation
• Subscription
– Individuals and companies sign up to receive a
publication over a specified time for a certain
fee.
• Single Copy sales
– Copies sold at newsstands.
• Third Party
– Copies bought by hotels, restaurants, airlines
that are distributed to guests.
Prentice Hall, © 2009
8-16
Newspaper:
Frequency of Publication
• Dailies
– About 1,500 dailies in the United States, usually
published in cities and larger towns.
• Weeklies
– About 6,700 serving towns, suburbs, and smaller cities.
• Sunday editions
– Approximately 30% of dailies and a few weeklies also
publish Sunday editions.
• Business or organization newspapers
– May be published weekly, monthly, quarterly,
bimonthly (every other month), or semimonthly (twice
a month).
Prentice Hall, © 2009
8-17
Newspaper: Editions
• Morning
– Yesterday’s events, advance coverage of today’s events.
• Evening
– Today’s events (up till mid-day) and advance stories for
tomorrow.
• All-day
– Frequent updates with different editions published
during the day.
• Special Interest
– Ethnic such as Spanish language, Asian, and African
American; also upscale neighborhoods by zip code.
Prentice Hall, © 2009
8-18
Newspaper: Format and Size
• Broadsheet
– Standard size generally 22 inches deep and
14 inches wide with eight columns.
• Tabloid
– Half the size of a broadsheet with five or six
2-inch columns.
Prentice Hall, © 2009
8-19
Newspaper Ad Sales
• Ads are sold based on size of the space.
– Local advertisers and volume buyers get discounts;
national advertisers pay a premium.
• Ads are sold by local sales staff or brokers
(one-order, one-bill).
• The introduction of SAU (Standard Ad Units)
in the 80s made national buying much easier.
• Some newspapers offer large advertisers hybrid
rates (between local and national).
• Coop advertising—a local retailer places an ad
and the manufacturer pays for part of the ad.
Prentice Hall, © 2009
8-20
Types of Newspaper Advertising
• National vs. Local
• Classified
– Advertising by individuals to sell their personal
goods and advertising by local businesses.
• Display
– Any size, placed anywhere except editorial section.
– Run-of-paper (can run anywhere) or preferredposition (select sections where ad runs).
• Supplements
– Usually independently published, syndicated,
magazine-style publications that are sold to
newspapers and inserted on Sunday.
– Free-standing inserts are preprinted advertisements,
such as the grocery ads, that are inserted into the
newspaper for a fee.
Prentice Hall, © 2009
8-21
Table 8.3
Newspaper Advertising by Category
National
Local/Retail
Classified
Online
Newspaper Total
$Mil %change
$Mil %change
$Mil %change
$Mil %change
$Mil %change
2000
$7,653
13.7
$21,409
2.4
$19,608
5.1
$48,670
5.1
2001
$7,004
- 8.5
$20,679
-3.4
$16,622 -15.2
$44,305
-9.0
2002
$7,210
2.9
$20,994
1.5
$15,898
-4.3
$44,102
-0.5
2003
$7,797
8.1
$21,341
1.7
$15,801
-0.6
$1,216
$46,156
1.9
2004
$8,083
3.7
$22,012
3.1
$16,608
5.1
$1,541
26.7
$48,244
4.5
2005
$7,910
-2.2
$22,187
0.8
$17,312
4.2
$2,027
31.5
$49,435
2.5
Adapted from Value of Newspaper Medium, Newspaper Association of American, 2007.
Prentice Hall, © 2009
8-22
Newspaper Readership
Measurement
• About half of American adults read the newspaper
daily.
• Newspaper readers are older with higher incomes
and education levels.
• Newspapers measure their audiences to attract
advertisers who want to reach their readers.
– Audit Bureau of Circulation—independently verifies
statements about newspaper circulation statistics.
– Simmons—annually measures readership profiles in
approximately 70 of the nation’s largest cities.
Prentice Hall, © 2009
8-23
Newspaper Industry Trends
• Readership is declining,
particularly among
young people.
• Newspaper production
costs are increasing.
• Internet delivery is
becoming a growth
area for the industry.
Visit the
Site
– Stories are delivered
through web phones,
pagers, emails, Palm
Pilots, Blackberries.
Prentice Hall, © 2009
8-24
Magazine Basics
• Over 92% of all U.S. adults read one magazine per
month, spending 44 minutes per issue.
• Quality of reproduction is their greatest strength.
• Over half of all new magazines fail.
• Most magazines focus on niche markets related to
hobbies, sports, business, and professions.
• Zines, online versions of traditional magazines,
represent the greatest growth area.
Principle:
If you want to start a successful magazine,
create a special-interest publication aimed at
a narrow or niche audience.
Prentice Hall, © 2009
8-25
Table 8.2
Top 20 Magazine Advertising Leaders
(ranked by total U.S. advertising and circulation gross revenues in 2005)
Rank
05
Gross Ad Revenue
$ Mil
% change
04
Magazine
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
1
5
3
2
4
7
6
8
9
11
10
13
15
14
22
19
12
20
16
23
People
Better Homes & Gardens
Time
Sports Illustrated
TV Guide
Parade
Newsweek
Reader’s Digest
Good Housekeeping
Woman’s Day
Cosmopolitan
InStyle
Family Circle
USA Weekend
Us Weekly
Ladies’ Home Journal
Business Week
Vogue
Forbes
The New York Times Magazine
$1,374.2
971.5
944.6
925.7
726.1
626.0
622.0
586.9
586.5
502.7
472.8
455.4
434.6
431.4
417.4
412.9
396.5
392.8
381.6
373.8
8.1
9.4
-6.0
-9.8
-20.9
1.6
-4.8
5.5
7.8
11.2
3.5
8.5
9.9
3.6
28.5
12.3
-7.8
8.5
-0.2
21.1
Source: Maureen Morrison, “Leading Magazines Gain 5.2% to $36.6 Billion,” Advertising Age, October 23,
2006, S-13.
Prentice Hall, © 2009
8-26
Types of Magazines
• Consumer Magazines
– Aimed at consumers who buy
products for personal use.
• Business Magazines
– Trade papers are aimed at retailers,
wholesalers, and other distributors;
e.g., Chain Store Age
– Industrial magazines are aimed at
manufacturers; e.g., Concrete
Construction.
– Professional magazines are aimed
at physicians, lawyers, and other
professionals; e.g., National Law
Review, MediaWeek.
– Farm magazines are aimed at those
working in agriculture; e.g., Farm
Journal and Feed and Grain.
Prentice Hall, © 2009
8-27
Classifications of Magazines
• Vertical vs. horizontal publications
– Vertical: contains stories about and info about an industry
– Horizontal: deals with business functions across industries
• Geography
– National, regional editions (e.g., Los Angeles Magazine,
Southern Living’s southwestern edition zoned editions of
national magazines)
• Demographics
– Age, income, occupation, etc. (e.g., Newsweek’s college
edition and Time’s editions for business executives and
doctors)
• Editorial Content
– General (Reader’s Digest), women’s (Family Circle),
shelter (House Beautiful), business (Forbes), and special
interest (Ski).
Prentice Hall, © 2009
8-28
Classifications of Magazines
• Physical Characteristics
– The most common sizes are 8 1/2 x 11 inches and 6 x 9
inches, which allows for fewer visuals and less copy.
• Ownership
– Some are owned by publishing companies (Conde Nast
owns Glamour, Gourmet, Vanity Fair) and others by
organizations (AARP).
• Distribution and Circulation
– Traditional delivery—through newsstand purchases or
home delivery via the U.S. Postal Service
– Nontraditional delivery or controlled circulation —
hanging bagged copies on doorknobs, inserting in
newspapers (such as Parade delivering through
professionals’ offices (doctors and dentists), direct delivery
(company or airplane), and electronic delivery
Prentice Hall, © 2009
8-29
Magazine Advertising: Format
• Premium positions
– Back cover, inside covers
• Double-page spread
– Two ad pages facing each other
• Bleed page
– Color goes to edge of the page
• Gatefold
– More than two connected pages
that fold in on themselves
• Special ad page or section that looks
like editorial
• Multiple-page photo essay
• Fractional page space
– vertical or horizontal half-page,
half-page double spread
Prentice Hall, © 2009
8-30
Magazine Advertising:
Technology
• Selective binding and inkjet imaging allow for
personalization
• Satellite transmission and
computerized editing
allow for regional
editions with regional
advertising
Prentice Hall, © 2009
8-31
Magazine Readership
Measurement
• Magazine rates are based on guaranteed circulation
a publisher promises to provide.
• Readership represents total audience which includes
pass-along readers.
• Objective, outside measurement companies:
– Audit Bureau of Circulation—independently verifies
statements about magazine circulation statistics.
– Media Mark—MRI measures readership for many popular
national and regional magazines.
– Simmons Market Research Bureau—provides
psychographic data on readers plus what products they buy.
– Companies like Starch, Gallup & Robinson provide
audience size and behavior information.
Prentice Hall, © 2009
8-32
Magazine Advertising Trends
• Product placement, although opposed by the The
Magazine Editors Association, will happen.
• Online technology has led to online magazines.
• Traditional formats provide interesting writing
that’s portable.
• The questions is: What works best for the media
strategy for a particular target audience?
Prentice Hall, © 2009
8-33
Directory Advertising
• Directories list people or companies, phone numbers,
and addresses.
• About 90% of the people who consult the Yellow
Pages follow up with action.
• Retailers can buy display space for larger ads, but
directories can be cluttered.
• 7,500 directories for professional and interest groups
Principle:
The principle behind directory advertising is
that it is directional—it tells people who already
are in the target market where to go to get the
product or service they want.
Prentice Hall, © 2009
8-34
Out-of-Home Advertising
• OOH includes billboards, hot-air balloons, buses,
posters on walls, kiosks, blimps, airport displays.
• Ranks second to the Internet in terms of growth.
• It’s situational: can target specific people at a specific
time when they’re most interested.
Prentice Hall, © 2009
8-35
Out-of-Home Advertising:
Outdoor Advertising
• Outdoor includes street and highway advertising,
plus posters in public locations.
• Two primary uses of outdoor:
– As reminder advertising (e.g., McDonald’s)
– As a directional (e.g., hotels, gas stations)
Prentice Hall, © 2009
8-36
Out-of-Home Advertising:
Outdoor Advertising
• Size and Format
– Printed poster bulletin—posted
like wallpaper
– Painted bulletin — on signs,
buildings, roofs, mountains
– Extensions/cutouts — go
beyond border of rectangle
– Digital displays — use wireless
technology to change message
– Message is about 8 to 10 words
• Buying outdoor
– Sold in “showings”
– Based on traffic counts
– Boards are rented for 30 days
Prentice Hall, © 2009
8-37
Out-of-Home Advertising
• On-premise signs
– Identify a store
– Directional and
informational
– Help locate businesses
• Posters
– Used on buildings, kiosks,
vehicles, and bulletin
boards
– Usually have few words
– Kiosks are designed for
posters
• Transit advertising
– Ads on buses, taxis, and
moving billboards
– Interior and exterior
Prentice Hall, © 2009
Replace photo
8-38
Packaging
• Both a container and a
communication vehicle
• Constant brand reminder
once at home or office
• Presents brand image and
communicates critical
benefits information
• Can deliver benefits like
recipes
Principle:
A package is the last ad a customer sees before
making a decision on which brand to buy.
Prentice Hall, © 2009
8-39
Using Print and Out-of-Home
• Use newspaper for announcements of something
new, or for targeting local markets.
• Use magazines for targeting people with special
interests; they’re also good for brand image or
longer explanations.
• Use outdoor for people on the move to provide
directional information; also good for brand
reminders.
• Use directories to catch people when they’re
shopping.
Prentice Hall, © 2009
8-40
Table 8.6
Print Media Advantages and Limitations
Newspaper Advertising
Advantages
Limitations
Good for news announcements
Good market coverage
Good for comparison shopping
Positive consumer attitudes
Good to reach educated and affluent consumers
Flexibility—geographic; scheduling
Short life span
Clutter
Limited reach for certain groups
Poor production values
Magazine Advertising
Advantages
Limitations
High production values
Targets consumers’ interests—
specialized audiences
Receptive audience
Long life span
Format encourages creativity
Good for brand messages
Good for complex or in-depth messages
Long lead times—limited flexibility
Lack of immediacy
High cost
Sometimes limited distribution
Prentice Hall, © 2009
8-41
Directory Advertising
Advantages
Limitations
Directional: consumers go to directories for
shopping information
Inexpensive
Good ROI of 1:15—every dollar spent of an ad
produces $145 in revenue
Flexible in size, colors, formats
Long life
Lack of flexibility—can be a long time before a
change can be made
Competitive clutter and look-alike ads
Low production quality
Outdoor Advertising, Including Transit
Advantages
Limitations
Good situational medium
Directional
Brand reminder medium
High-impact—larger than life
Least expensive
Long Life
Packaging
Traffic moves quickly
Can’t handle complex messages—designs must
be simple
May be easy to miss (depending on location)
Some criticize outdoor ads for “polluting” the
landscape
Transit lacks the size advantage of other outdoor
media
Advantages
Limitations
Stimulates point-of-purchase decision making
Last ad a consumer sees
In-home is brand reminder on shelf
Billboarding effect can dominate shelf
Reinforces brand advertising
Delivers product information
Cluttered environment
Shelf space may be limited
Can get inconvenient placement—such as
bottom shelf
Limited space needs simple message
Prentice Hall, © 2009
8-42
Discussion Questions
Discussion Question 1
• You are the media planner for an agency handling a
small chain of upscale furniture outlets in a top-50
market that concentrates most of its advertising in the
Sunday supplement of the local newspaper. The client
also schedules display ads in the daily editions for
special sales.
• Six months ago a new, high-style metropolitan magazine
approached you about advertising for your client. You
deferred a decision by saying you’d see what reader
acceptance would be.
• Now the magazine has shown some steady increases (its
circulation is now about one-quarter of the newspaper’s).
• If you were to include the magazine on the ad schedule,
you’d have to reduce the newspaper media somewhat.
What would be your recommendation to the furniture
store owner?
Prentice Hall, © 2009
8-44
Discussion Question 2
• Since his freshman year in college, Phil Dawson,
an advertising major, has waited tables at
Alfredo’s, a small family-operated restaurant
featuring excellent Italian food and an intimate
atmosphere.
• A Yellow Pages representative approaches the
owner to run a display ad in addition to its listing.
• The owner asks Phil for advice on whether such
an ad would help, and if so, what the ad should
look like.
• What should Phil recommend?
Prentice Hall, © 2009
8-45
Discussion Question 3
•
•
•
•
Three-minute debate: Petra Wilcox, a display ad salesperson for the
Daily Globe, thought she had heard all the possible excuses for not
buying newspaper space until she called on the manager of a CD
store that sold new and used discs.
“I heard about newspaper reader studies that prove how wrong the
audience is for me. Readership is too adult—mostly above 50 years
of age,” he said. “And besides, readers of newspapers are families
with higher incomes—the wrong market for our used disc business,”
he continued.
How should Wilcox try to counter the manager’s views?
In class, organize into small teams, with each team developing a
position team members feel is most compelling on the advantages of
newspaper advertising. Set up a series of three-minute debates with
each side taking half the time to argue its position. Every team of
debaters has to present new points not covered in the previous teams’
presentations until there are no arguments left to present. Then the
class votes as a group on the winning point of view.
Prentice Hall, © 2009
8-46
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mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Prentice Hall, © 2009
8-47