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Television Advantages Creativity and Impact: High Impact Sight-Sound-Motion IKEA ad Budweiser ad Coverage and Cost Effectiveness Mass Coverage High Reach Captivity and Attention Attention Getting Favorable Image Selectivity and Flexibility High Prestige Low Exposure Cost Television Disadvantages Cost Lack of Selectivity Fleeting Message Clutter Limited Viewer Attention Distrust and Negative Evaluation Three TV Buying Decisions Network Versus Spot Reach is the primary consideration but ease of purchase is important. Sponsor, Participate, or Spot Method of buying affects cost, commitment, and identification. Specific Daypart and Weeks Scheduling depends on reach and frequency requirements. Buying TV Time Network Versus Spot Networks Affiliated stations are linked Purchase transactions are simplified Spot and local Buying Television Time Spot: mostly confined to station breaks between programs Two Types National Spot-non-network/national advertiser Local- non-network/local advertiser Advantages: flexibility, cost Limitations: more clutter; more difficult Many stations involved Variations in pricing Variations in discount structure Syndication Syndication - shows sold on a station-by-station basis Two Types Off-network - reruns: Seinfeld, Roseanne, Simpsons First-run - Jerry Springer, Rosie, Star Trek Voyager, Highlander Barter syndication-selling shows to stations in return for commercial time Syndication buying is complex Less info from syndicators Different audience (older, more rural) May not be seen in all markets May run in different time slots Methods of Buying Time Sponsorship Advertiser assumes responsibility for the production and perhaps the content of the program Sponsor has control and can capitalize on the prestige associated with a show Participations Superbowl Halftime Show Sponsorship Superbowl Participation Participating sponsors share the cost May participate regularly or sporadically Advertiser isn’t responsible for production Participants lack control over content TV Dayparts Morning 7:00 AM - 9:00 AM Mon. - Fri. Daytime 9:00 AM - 4:30 PM Mon. - Fri. Early fringe 4:30 PM - 7:30 PM Mon. - Fri. Prime-time access 7:30 PM - 8:00 PM Sun. - Sat. Prime time 8:00 PM - 11:00 PM Mon. - Sat. Prime time Sun. 7:00 PM - 11:00 PM Sun. Late news 11:00 PM - 11:30 PM Mon. - Fri. Late fringe 11:30 PM - 1:00 AM Mon. - Fri. Cable Can be national, regional or spot Advantages Selectivity-narrowcasting (TRP vs GRP) Much lower cost CPMcable = 2 or 3 times CPMnetwork Limitations Comparably low ratings Even MTV, ESPN and CNN have prime time ratings of only 1 to 2 Lower penetration: 68% of households–1/3 unreachable Radio and TV Similarities Both Media . . . Are time oriented media Are sold in time segments Have some network affiliates Have some independents Use the public airway Are regulated by the F.C.C. Are externally paced media Are passive, low-involvement Radio Differs from TV Radio Broadcasting . . . Offers only an audio message. Is more limited communication. Costs much less to produce. Costs much less to purchase. Has less status and prestige. Magazines Three Categories (SRDS) Consumer Business Farm Magazines Advantages Selectivity Reproduction Quality Creative Flexibility Permanence Prestige Consumer Receptivity Consumer Involvement Due to and correlated with selectivity Some are purchased as much for ads as for content: Bridal Fashion Computer Magazines Disadvantages Costs Limited Reach and Frequency Long Lead Time Clutter! Circulation Primary: subscriptions Circulation Verification Audit Bureau of Circulations (ABC) - 70% paid requirement Circulation Primary: subscriptions Circulation Verification Readership Based on pass-along readership Readership = readers per copy X circulation Purchasing Space Usually space units Full, half, quarter page Plus: Color Bleed Insert Location Etc. Minus: Volume Newspapers Five Categories Daily Weekly National (USA Today, Christian Science Monitor, WSJ) Special Audience (Advertising Age) Supplements (Parade, USA Weekend) Three types Display Classified Inserts Newspapers Advantages Extensive Penetration Flexibility Geographic Selectivity City by city Often very narrow insert zones Chicago Tribune has 95 zones Newspapers Disadvantages Poor Reproduction Short Life Span Lack of Selectivity Clutter! Purchasing Space Rates Columns vary (6-9 / page) Standard advertising units (SAU) Adopted in 1984 Used by 90% of newspapers Some do not use the 6th column Locals still use column inch 1” x 1 column Purchasing Space Rates Columns vary (6-9 / page) Standard advertising units (SAU) Rate Structure Flat Rate: no quantity, repeat discounts Open Rate: discounts available Run of Paper (ROP): newspaper places ad; standard Preferred position: advertiser chooses location; costs extra Combination rate: multi paper rate Morning/evening Several papers owned by one publisher Several papers in a syndicate Outdoor Advertising Reach Reaches young, affluent audiences very quickly Frequency Very high frequency of impressions, especially up-scale Flexibility Many positions available to reach specific groups Cost Lowest cost per exposure of any major ad medium Impact Size, shape, lighting, motion, and special impressions Other Out-of-Home Media Aerial Advertising Sky Banners Sky Writing Blimps Mobile Billboards Trucks Vans Trailers In-Store Media Signs Video Kiosks Special Outdoor Media Parking meters ATM displays Trash cans Ski lift poles Car top signs Sidewalk signs Garden plantings Wall drawings Transit Advertising Inside Cards Placed above seats In luggage areas Outside Posters On the sides, backs, roofs On busses, taxis, trains, etc. Station, Platform, Terminal Posters Floor displays Island showcases Electric signs, etc. Specialty Advertising Defined A medium of advertising, sales promotion, and motivational communications employing imprinted, useful, or decorative products called advertising specialties, a subset of promotional products. Unlike premiums, with which they are sometimes confused, these articles are always distributed free: Recipients don’t have to earn the specialty by making a purchase or contribution. Forms of Yellow Pages Specialized Directories Targeted to special audiences (e.g., Hispanics, Women, Blacks, Christians, etc.) Audiotex “Talking” Yellow Pages Interactive Consumer search data bases Internet Directories National, regional and local listings Other Services Coupons, inserts, samples, etc. Movie, Videotape Ads Advantages High Exposure Audience Mood Cost (Maybe) Good Recall Lack of Clutter Proximity Disadvantages Irritation Cost (Maybe) Placements Advantages High exposure High frequency Media support Source association Economy High recall Bypass regulations Viewer acceptance Disadvantages High absolute cost Time of exposure Limited appeal Lack of control Public reactions Competition Negative placements