Discussion Slide 9 Media? • On the average, how much time per week do you spend with the following media? • • • • • • Television Radio Magazines Newspapers Internet Outdoor (billboards, bus signs, etc.) • In which media do you pay the most attention to advertisements? • What differences do you see between your media habits and those of your parents? 9-1 9 Advertising Media Selection Chapter Overview • • • • • Nature of media strategy Media planning Media buying Media choices B-to-B and international media selection 9-2 Media Strategy • • • • Objectives of the campaign Target audience Message theme Constraints 9-3 FIGURE 9.1 Examples of Times Workers Are Exposed to Advertisements • • • • • • • • • A favorite wake-up radio station or one that is listened to during the commute to work. A favorite morning news show or newspaper. Trade or business journals that are examined while at work. A radio station that is played during office hours at work. Favorite computer sites that are accessed during work. Favorite magazines that are read during the evening hours. Favorite television shows that are watched during the evening hours. Internet sites that are accessed during leisurely hours. Shopping, dining, and entertainment venues that are frequented. 9-4 People Involved in Media Selection Media Buyer Media Planner Creative Account Executive Client 9-5 Media Planner An advertisement by New Balance placed in Runner’s World magazine by the media planner. 9-6 Factors in Effective Media Purchases • Quality of media choices. • Creativity in developing the media plan. • Financial stewardship. • Agency culture and track record. • Good data analysis. • Relationship between media buyer and sales representatives. 9-7 Media Terms • • • • • • Reach Frequency Rating Gross rating points Cost per thousand (CPM) Cost per rating point (CPRP) • Continuity • Gross impressions 9-8 Table 9.1 Cost for 4color full page ad Total readership (000's) CPM Total National Geographic $346,080 21,051 Newsweek $780,180 People Magazine Target Market (20M) Rating (Reach) Cost per Rating Point (CPRP) $16.44 16.1 $21,496 15,594 $50.03 12.2 $63,949 $605,880 21,824 $27.76 9.4 $64,455 Southern Living $11,370 5,733 $1.98 2.4 $4,738 Sports Illustrated $965,940 13,583 $71.11 10.5 $91,994 $1,324,282 21,468 $61.69 15.9 $83,288 Travel & Leisure $183,216 2,205 $83.09 2.3 $79,659 U.S. News $100,740 8,929 $11.28 8.3 $12,137 Time 9-9 Cost to Advertise on the Super Bowl Year Price 1967 $42,000 1970 $78,200 1975 $110,000 1980 $275,000 1985 $500,000 1990 $700,000 1995 $1,000,000 2000 $2,100,000 Rating Viewers (millions) Cost/Rating Pt 23.0 N/A $1,826.09 24.0 44.27 $3,258.33 25.0 56.05 $4,400.00 26.0 76.24 $10,576.92 27.0 85.53 $18,518.52 28.0 73.85 $25,000.00 29.0 83.42 $34,482.76 30.0 88.46 $70,000.00 CPM N/A $1.77 $1.96 $3.61 $5.85 $9.48 $11.99 $23.74 Source: Nielsen Advertising Research, Advertising Age Research. 9-10 Achieving Advertising Objectives • Reach vs Frequency • Recency theory 9-11 TAB LE 9 .Television 2 Television Advertising Table 9.2 Advantages Disadvantages 1. 2. 3. 4. 1. Greater clutter 2. Channel surfing during commercials 3. Short amount of copy 4. High cost per ad 5. Low recall due to clutter High Reach High Frequency Potential Low cost per contact Quality creative opportunities 5. High intrusion value 6. Segmentation possibilities through cable outlets 9-12 STOP Nielsen TV Ratings INTEGRATED LEARNING EXPERIENCE Http://www.nielsenmedia.com Access the following sections of Nielsen Media Research • Who We Are and What We Do • Ratings 101 • • • • What TV Ratings Really Mean Measuring Ethnic TV Audience Reports Available to the Public Services 9-13 TAB LE 9.3 Radio Advertising Advantages Disadvantages 1. 2. 3. 4. 5. 6. 7. 1. Short exposure time 2. Low attention 3. Few chances to reach national audience 4. Target duplication when several stations use same format Lower cost per spot than television Low production cost Music can match station’s programming High segmentation potential Flexibility in making new ads Able to modify ads to fit local conditions Intimacy (with DJ’s and radio personalities) 8. Creative opportunities with music and other sounds 9. Mobile: people carry radios everywhere 9-14 STOP INTEGRATED LEARNING EXPERIENCE • To view the top 100 radio sites. • Http://www.100topradiosites.com • Radio Link – The Radio Advertising Bureau’s Marketing Research Center on the Internet. • Http://www.rab.com • Access Media Facts • Access Radio Facts 9-15 Outdoor Advertising ADVANTAGES • 1. Large, spectacular ads possible • 2. Able to select key geographic areas • 3. Accessible for local ads • 4. Low cost per impression • 5. Broad reach • 6. High frequency on major commuter routes DISADVANTAGES • 1. Short exposure time • 2. Brief messages • 3. Little segmentation possible • 4. Cluttered travel routes 9-16 Outdoor Advertising Dennis Carter discusses how billboard advertising was used to encourage existing customers to move to a newer Intel product. Customers had been reluctant to move from their familiar 286 processor to the new 386 processor. Click picture to play video. 9-17 This ad for a portable email device is aimed at busy travelers looking for convenience. http://www.billboardinfo.com 9-18 Http://www.jessicamcclintock.com 9-19 STOP INTEGRATED LEARNING EXPERIENCE Http://www.lamar.com • Under “Rates and Markets” find your state and your area. What are the rates for your area. Compare it to rates in other areas. • For benefits of outdoor advertising. access the “Why Lamar” section. • For a view of the various options, access the “Products & Services” area. 9-20 Internet Advertising Advantages Disadvantages 1. Creative possibilities 2. Short lead time to send ad 3. Simplicity of segmentation 4. High audience interest on each website 5. Easier to directly measure responses 1. Clutter on each site 2. Difficult procedures to place ads and buy time 3. Only for computer owners 4. Low intrusion value 5. Hard to retain interest of surfers 6. Short life span - viewers lose interest quickly 9-21 STOP INTEGRATED LEARNING EXPERIENCE • Nielsen/Net Ratings • Http://www.nielsen-netratings.com • Weekly Top 10 properties. • Weekly Top 10 banners. • Weekly Top 10 usage data. 9-22 TAB LE 9 .Magazines 6 Magazine Advertising Table 9.6 Advantages Disadvantages 1. High market segmentation 2. Targeted audience interest by magazine 3. High color quality 4. Availability of special features (e.g., scratch and sniff) 5. Long life 6. Direct response techniques (e.g. coupons, web addresses, toll-free numbers) 7. Read during leisure time (longer attention to ad) 1. Long lead time to ad showing 2. Little flexibility 3. High cost 4. High level of clutter 5. Declining readership (some magazines) 9-23 How important is advertising to magazines? The chart below shows the top five magazines and the percentage of their revenues generated by advertising, subscriptions and newsstand sales TV Guide People Time Sports Illustrated Better Homes & Garden Total Revenue Advertising Subscribers Newstand $1,172,127,000 41.9% 43.2% 14.9% $1,155,395,000 61.8% 18.9% 19.3% $962,651,000 68.4% 27.2% 4.4% $905,313,000 67.8% 28.6% 3.6% $595,667,000 74.6% 23.0% 2.4% Source: Http://www.adage.com (1999 figures) 9-24 TAB LE 9 Newspapers .7 Newspaper Advertising Table 9.7 Advantages Disadvantages 1. Priority for local ads 2. Coupons and specialresponse features 3. High credibility 4. Strong aud ience interest 5. Longer copy/message possible 6. High flexibility 7. Cumulative vo lume discounts 1. Internet classified competition 2. Major clutter (especially ho lidays) 3. Short life span 4. Poor quality reproduction (especially color) 5. Poor buying procedures 9-25 Direct Mail Advantages • Normally lands in the purchaser’s hands Disadvantages • High cost • Clutter • Nuisance factor 9-26 Media Mix United States Radio 13.0% Outdoor 1.8% Magazines 12.2% Newspapers 34.3% Television 38.7% Projected U.S. total ad spending = $134.3 billion Ad Spending per capita = $437.60 Source: Http://adage.com/dataplace/topmarkets/us.html 9-27 FIGURE 9.2 Developing Logical Combinations of Media 9-28 FIGURE 9.3 Business-to-Business Advertising Expenditures Other 4.6% Trade Magazines 32.2% Business Magazines 15.8% Yellow Pages 4.0% Consumer Magazines 6.2% Outdoor 1.4% Radio 4.4% Newspapers 16.9% Television 14.4% Source: Sean Callahan, “Advertising Remains Favorite Communications Vehicle, With Traditional Trade Publications, Advertising Age’s Business Marketing, May 99, p. S4. 9-29 Shift by B-to-B Advertisers to Non-Business Media Fact: 64% of all business advertising dollars are spent in non-business environments. Reasons for shift: • Business decision makers also consumers. • Business decision makers difficult to reach at work. • Clutter among business mediums. 9-30 FIGURE 9.4 Top six B-to-B Advertisers 9-31 Media Selection in International Markets • Media importance varies. • Media viewing habits vary across countries. • Media buying is different. • Cultural mores vary. 9-32 STOP INTEGRATED LEARNING EXPERIENCE • Comparison of international media expenditures. • Http://adage.com/dataplace/topmarkets 9-33 Building Your IMC Campaign • Develop the media strategy plan. • Choose the best media for your product. • Develop media plans for the consumer market, channel market and b-to-b market. • Match the media with the creative briefs you have already developed 9-34