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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 $960 billion industry in 2007. Prentice Hall, © 2009 8-5 The Changing Media Landscape • Consumer Media Usage – Recent generations spend more time with media. – Media focused lives—the average person spends 9 hours a day with some type of media (including mass media, iPods, cell phones, books, email). – Media multitasking—about 68% of people use other media with TV; 30% use more than one media at at time. • Advertising Media Use – Online newspaper, cable, outdoor, and the Internet is increasing; newspaper and network TV is declining. • The Media Plan – Identifies the best media to efficiently deliver an advertising message to a targeted audience. – A subsection within an advertising plan with its own objectives, strategies, and tactics. Prentice Hall, © 2009 8-6 Table 8.1 Evolution of Media Availability Among the Generations Traditionalists Baby Boomers Gen X [Born before 1946] [Born 1946–1964] [Born 1965–1976] Newspapers Magazines Broadcast Radio Broadcast TV Transistor Radio 8-Track Tapes Cassette Tapes Walkman Radio Video Games VCRs Cable TV Personal Computers Satellite TV Internet Cell phones Online News DVD Players Satellite Radio MP3 Players TiVo iPod Video Player • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • GenY [Born 1977–1994] • • • • • Key: This technology/media format was “always there” • This technology/media format was invented during this generation’s time Prentice Hall, © 2009 8-7 Table 8.2 Television Broadcast TV Cable TV Direct Mail Newspapers National Retail Classified Online* Radio Magazines Directory Business Papers Out of Home Internet** Miscellaneous*** Total All Media U.S. Media Advertising Expenditures 2003 ($ 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 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, 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