SEM1 3.08
A - Promotion
• PE - Manage media planning and
placement to enhance return on
marketing investment
• PI - Determine advertising reach of
sport/event media
• PI – Calculate media costs
Advertising Reach & Frequency
• Reach and frequency are both quantitative
measures of advertising – often used to
determine costs of media
– Frequency is the # of times you wish to expose a targeted
audience to your advertisements
– Reach is the # of people in a targeted audience exposed to an
ad or campaign at least one time during a designated time
period
– Reach Calculation % is found by dividing the target audience
exposed to the ad by the total target audience
– Reach % = TA ÷ TTA
• Example: The total target audience for the Carolina Tar Heels Football
team is 1,500,000 and those exposed during an ad campaign is 375,000
• 375,000 ÷ 1,500,000 = 25%
• So 25% of the total target audience saw the ad at least one time
Advertising Reach & Frequency
• Circulation numbers, subscriptions or rating points are
best used to determine & calculate reach data
• Broad reach – is effective for consumer convenience
goods like toothpaste (simple features)
• Effective reach - # or % of consumers in a targeted
audience exposed to an ad a specific minimum # of
times (more appropriate for targeted SEM consumers)
WHY?
Media costs – how to determine?
• Circulation (size of the audience)
– Is the most significant factor affecting media costs
– In most cases, the larger the media vehicle’s audience, the higher the cost
of advertising space or time will be.
• RATE CARDS: Price lists showing rates for space or time
• Production costs vary a lot across different media
– High-quality TV and Magazine ads cost a great deal to produce
– While local radio and newspaper ads are relatively inexpensive to produce
• Preferred location of ad
– time of ad, (day, night, drive time)
– position of ads in print and broadcast media – what shows
• Available discounts
– size of ad – frequency of purchase - dollar volume
• Demographic makeup
– narrowly defined audiences demand higher rates
• Editorial climate
– credibility & prestige may influence consumers reaction to an ad
• Reproduction quality
– high quality = higher costs
Media costs types – Absolute & Relative
• Absolute cost
– What is the total expenditure for an ad
• Cost of production
• Cost for time and space purchased
– Check rate cards found in Standard Rate & Data Service (SRDS)
directories for time & space costs
• Relative cost
– To determine if one media type is more efficient or
cost effective over another
– Use (CPM) - based on cost per thousand
• Often used in print media and internet
– Use (CPRP) - based on cost per rating point
• Often used in broadcast media and outdoor
– Use (GRP) – based on gross rating points across a
media platform
Media costs – how to calculate?
• Cost per thousand (CPM)
– Multiply cost of the ad by 1000 then divide by the
number of people receiving the message (reach)
– CPM = (Cost of ad x 1000 ÷ by # of target audience)
• Example:
– Cost of ad is $50,000
– Total audience is 2,000,000
• ($50,000 x 1000) = $50,000,000
• ($50,000,000 ÷ 2,000,000) = $25.00
Media costs – how to calculate?
• Cost per rating point (CPRP)
– Calculated to determine 1% of audience
• Cost per gross rating points (GRP)
– (GRP) = (Reach (x) frequency) - to determine GRP and
240 GRP’s used as a standard of measurement
– The cost per GRP is determined by dividing the total
advertising expense by the # of gross rating points
– (GRP) cost = (Expenses ÷ GRP)
• Example:
– Total advertising expense is $20,000
– The gross rating points for the show is 210
• $20,000 ÷ 210 = $95.24
Media costs for different mediums
• Newspapers
– Rates – how determined
• circulation and target market are primary factors – great for locals
• less for local ads vs. national advertisers
• information given through use of rate cards
– Types of rates
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Run of page – wherever newspaper places the ad
Flat rates – used for one time placement
Sliding scale rates – more ads will cost less per ad
Combination rates – ads and (FSI) will lower rate
Volume and consistency rates/discounts
– Costs
• Tend to be lower than other print media
• Position preferences
– Example: SEM advertiser wants ad placement in sports section instead of
food or employment opportunity section
• Color requirements or including (FSI) free standing inserts
• Split-runs - 2 different ads produced at same time
Media costs for different mediums
• Magazines
• Rates – how determined
– Circulation and target market are primary factors for
rates that reach specific readers for advertisers
• Types of rates
– Size and frequency rates
– Volume and consistency rates/discounts
– Combination rates
• Costs
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Tend to be higher than other print media
Position preferences – front and back cover, inside front
Color requirements
Full bleed pages
Gatefolds
Spreads
Media costs for different mediums
• Television
– Most effective way to promote a local event to the public
– Very long production lead time
• Rates – how determined
– Larger/higher audience rating & time are the major factors, (Nielsen
ratings) are GRP for television – advertisers will ask for this data
– SQAD (cost-per-point) x Nielsen ratings determine TV ad costs
– Rates and schedules change based on local factors
• Types of rates
– Run of schedule – prime time vs. other
– National network, cable or local network
• Costs
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Are higher than any medium
Time availability - morning, afternoon, prime time, late night
Demand for time – peak winter season
Length of ad impact ad & production costs
Media costs for different mediums
• Radio
– Effective for local & regional markets – use local personalities
– Relatively short production lead time – quick turn around
– Very good to hit your demographic target market
• Rates, how determined
– Audience size & composition are the major factors
– Less than TV but can still be expensive
• Type of rates
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Offer the largest discounts of any medium
Run of schedule – (all 3 types lower costs)
Weekly package (TAPs) total audience plans
Volume and consistency rates/discounts
• Costs
– Are lower than TV media
– Time availability – morning/evening drive
– Production costs & ad
–
http://www.bestradiocommercials.com/?gclid=CN64k8z73bICFQsFnQodMH8AtA
Media costs for different mediums
• Internet
– Very popular 3rd to television and newspaper
• Rates – how determined
– Web-site popularity - browser
• Types of rates
– CPM – cost per 1000 impressions
– CPC – cost per click
• Cost
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E-mail ads may be very cost effective
Creative type – text, image, multimedia
Size – banner, pop-up etc.
Placement in browsers
Delivery type
Media costs for different mediums
• Out-of-home (outdoor and transit)
• Rates – how determined
– Audience size based on ad’s visibility, its location and population in
area
• Types of rates
•
http://clearchanneloutdoor.com/rates/
• Costs
– Size of space
– Length of time
– Illumination/movement/3D
• Production costs - varies
• Types of out-of-home
– Painted bulletins – Spectaculars (as seen here) - Transit
advertisements like subway, cabs, hot air balloons or busses
– Moveable billboards – very good at promoting an event throughout
a metropolitan area – draws a lot of attention and is seen by a lot
of consumers
Media costs for different mediums
• Direct Mail
• Rates – how determined
– Vary based on what you wish to accomplish
• Types of rates
– Allows advertisers to target a specific market with
the most cost effective manner but preparation time
is longer than radio and newspaper ads
• Costs
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Postage and delivery rates
Production costs
Mailing list costs
Labor costs
Total costs can vary and at time be very expensive
SEM1 3.08
A - Promotion
• PE - Manage media planning and
placement to enhance return on
marketing investment
• PI – Select advertising media
• PI – Buy ad space/time
Selecting advertising media - why
• Selection of media is important because it is the
largest expenditure of an ad budget
• Choosing the most cost effective is essential to
provide the most effective ad campaign
• Must select the medium(s) that reaches the
target market
Factors impacting your media selection
• Objectives
– Your overall goal of advertising
• Target audience
– Identify their media-usage habits
– You limit waste circulation
• Competition
– Most will use the same media so look for alternatives
• Budget
– Most companies will have constraints that impact your
selection- you can’t do everything you want
Factors impacting your media selection
• Product
– Nature of product
• Colorful or luxurious may need demonstrating resulting in
media selection – TV or magazines
• Other products need different requirements
• Provide examples for each media type
• Distribution
– Location, place or geography
– Coverage should be same as product availability
• Lead time
– Television and magazines require the longest
– Daily newspapers and radio require the least time
Factors impacting your media selection
• Quantitative media factors
– Measured numerically
• Different methods and types and believed the most important factor
– Measure cost efficiency
• Total cost (varies by medium)
• Cost per person (reaching potential prospects)
• Advertisers use CPM, CPRP and GRP
• Qualitative media factors
– Not as easy to measure as quantitative
– Credibility
• Medium’s believability to consumers – take seriously
– Editorial environment
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Each type appeals to a specific group of consumers
The climate or mood of the media vehicle should compliment product
Level of clutter can impact your ad – less is more
The impact – impression an ad will make on the target market
consumer
Factors impacting your media selection
• Media coverage
• Extensive coverage
– Reaching a large audience and exposing them at
least once to your advertisement (reach)
• Example: Advertising during The Super Bowl
• Intensive coverage
– Reaching a smaller audience more often to drive
home the message (frequency)
• Example: Multiple Renaissance Festival advertisements in
newspaper, radio and TV in the Charlotte market
Buy advertising space/time
• Research
• Negotiating
– Choose a medium/media
type to reach your goals
– Contact advertising manager
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• Request information
– Rate cards
– Circulation and/or rating
numbers
• Scheduling
– Time of day - placement
– Geographic location
– Reach & frequency
• Analysis & strategies
– Determine all costs for your
promotional strategy
– Make sure you can reach
your target market
• Planning
– Advertising message
– Pre-production process
Go for the numbers (CPM)
Adequate reach & frequency
Review rating services
Negotiate the best price
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Placement of ads
Confirmation of ad run
Payment
Evaluation
– Review for effectiveness
– Propose additional strategies
3.08 –
Sample Test
Questions
1.
One reason it is important for professional
sport/event organizations to develop advance ticket
sales plans is because the generated revenue helps
organizations to
A.
increase general
admission ticket sales.
B.
decrease operational
costs.
C.
cover pre-event
expenses.
D.
reduce the risk of ticket
scalping activities.
The Fit and Lively Fitness Center wants to increase its
membership, so it is planning to run a television ad to
promote lower membership fees for a limited
time. If the target audience is 939,000 16- to 36-yearold females, and 313,000 of the target audience is
exposed to the message, what is the percentage of
reach for a local cable-television advertisement?
A.
36
B.
33
C.
39
D.
30
Which of the following types of
media should an event planner use
to promote an upcoming local
charity event to the general public:
A.
Direct mail
B.
C.
D.
Local
television
National
newspaper
Consumer
magazine
Which of the following media vehicles
might a sport/event marketer choose to
promote a celebrity baseball game to
many people throughout a metropolitan
area:
A.
Internet
advertising
B.
Airplane banners
C.
Movable billboard
D.
Stadium posters
What is the percentage of reach for a local
radio sporting-goods advertisement if the
target audience is 875,000 18-30-year-old
males and 393,750 of the target audience
is exposed to the message?
A.
45
B.
40
C.
35
D.
30
A sport/event organization can
determine advertising reach of a
magazine by analyzing the
publication's
A.
billing cycle.
B.
circulation.
C.
finances.
D.
response mode.
Businesses generally pay more for
newspaper advertisements when
purchasing space at a _________
rate.
A.
preferred-position
B.
run-of-page
C.
contract
D.
frequency
When a business places print
advertisements in a magazine that
has a specific readership reach, it is
basing its buying decisions on the
publication's
A.
motivation
B.
reputation
C.
circulation
D.
participation
A business owner who wants to
obtain a reduced rate for a series of
local radio commercials might
contract for what type of
promotion?
A.
Package
B.
Display
C.
Transit
D.
Contingent
Businesses that buy broadcast
advertising time often ask for
information about the _______
before purchasing the time.
A.
qualifications of
management
B.
ownership of the
stations
C.
popularity of
newscasters
D.
ratings for certain
shows
A business owner saved money by
contracting with the local
newspaper to purchase a series of
ads over a period of time which
entitled the business to a
A.
flat rate.
B.
volume discount.
C.
free insert.
D.
preferred position.
What is the most appropriate
media-scheduling strategy for
advertising food and other
frequently purchased items?
A.
Continuous
B.
Flighting
C.
Pulsing
D.
Intermittent
Which of the following is the most
appropriate promotional medium
for a local hardware store:
A.
Local newspaper
B.
Network television
C.
Local rock station
D.
National news magazine
Which of the following is a
qualitative media factor used in the
selection of promotional media:
A.
Reach
B.
Frequency
C.
Impact
D.
Cost per thousand
Your business wants to sell a
shipment of goods by the end of
the current work week at the
lowest possible advertising cost.
Which of the following promotional
media would be best:
A.
An ad in next Sunday's
paper
B.
A direct mail campaign
C.
Point-of-purchase
displays
D.
Radio spot commercials
When an advertiser wants to reach
specific target markets, which type
of print medium would be most
cost-effective?
A.
Newspapers
B.
Billboards
C.
Direct mail
D.
Yellow pages
An advertiser spent $117,000 for 12
television spots with a total of 240
GRPs (gross rating points). What
was the cost per GRP?
A.
975.5
B.
585.5
C.
712.5
D.
487.5
A radio station sells a 30-second
spot for $500. If the number of
listeners is 200,000, calculate the
cost per thousand (CPM).
A.
50
B.
5
C.
25
D.
2.5
An important factor in determining
rates for outdoor advertising is its
A.
short life.
B.
ease of replacement.
C.
visibility.
D.
artistic appeal
The cost to a business of radio spots
will vary with the
A.
basic production costs
B.
size of the business.
C.
number of listeners
being reached.
D.
type of information
being aired.
Which of the following decreases
the costs to a business of using
newspaper advertising:
A.
Color requirements
B.
Sliding-scale rates
C.
Preferred position
D.
Split-runs
SEM1 3.08
A - Promotion
• PE - Manage media planning and
placement to enhance return on
marketing investment
• PI – Choose appropriate media vehicles
for sport/events
Choosing media vehicles
1. Determine the problem
– Advertising goals
– Primary target audience
– Competition
2. Consider potential media options & total costs
– List all media and analyze effectiveness and costs
3. Select the appropriate media and vehicles
– Review quantitative and qualitative factors
– Select one that has right time, place & audience
Choosing media schedule strategies
4. Determine the timing and schedule strategies
– Select degree of continuity desired
– Should be chosen based on advertiser’s needs and
type of product
– Continuous strategy – ads on a regular basis
• Good for everyday products like groceries
– Flighting strategy – intermittent scheduling
• Great for seasonal promotions like events
• Great for introducing new products or events
– Pulsing strategy – combination, low then high
• Good for reminding consumers about your product
• Coca Cola uses this strategy
Advertising Media Choices and
Marketing Strategy
3.06 – 3.07
Sample Test
Questions
A business that asks customers to
forward an e-mail to their friends or
associates is engaged in
A.
suggestion selling.
B.
direct advertising.
C.
image building.
D.
viral marketing.
The body of an e-mail that reads,
"Dear Sue, we hope you are
enjoying the newsletter," is an
example of a/an ______ message.
A.
understandable
B.
compelling
C.
focused
D.
personalized
Which of the following is the most
common use of opt-in e-mail
marketing:
A.
Subscriptions.
B.
Announcements
C.
Attachements
D.
Confirmations
One of advantage of using e-mail
marketing is that it is
A.
anonymous.
B.
profit oriented.
C.
cost effective.
D.
impersonal.
Which of the following is an
example of a business's using e-mail
in a timely manner:
A.
Describing features of
expensive products
B.
Addressing messages to
individual customers
C.
Sending customers a
notice of tomorrow's
sale
D.
Targeting groups that
subscribe to
newsletters
One of the disadvantages to
marketers using streaming video email is that it requires the recipient
to have a(n)
A.
complicated operating
system.
B.
sophisticated computer
keyboard.
C.
high-speed internet
connection.
D.
cloud computing.
Which of the following is an
example of an email attachment?
A.
nike.com
B.
resume.doc
C.
smith@aol.com
D.
http://www.org
Which of the following is an
advantage to a business of using an
in-house system to send bulk emailings:
A.
B.
Costs are tied to
volume.
Last-minute changes are
possible.
C.
Control of delivery is
limited.
D.
Up-front costs are low.
What is a guideline for businesses
to follow when creating mailing
lists?
A.
Obtain names from local
competitors
B.
Identify all people in a
certain area
C.
Choose individuals who
want the e-mail
D.
Ask employees for names
of relatives
What mailing technique do
businesses often use if they do not
have mailing-list software?
A.
Autoresponder
B.
Internet Service
Provider
C.
Bookmark feature
D.
Blind Carbon Copy
What should businesses do to
detect any problems before sending
an e-mail to everyone on their list?
A.
Finalize a signature
B.
Format the message
C.
Prepare a response
D.
Conduct a test run
For higher response rates,
businesses should develop
marketing e-mail messages that
are
A.
short, simple, and
understandable.
B.
relevant, short, and
complex.
C.
interesting, unique, and
lengthy.
D.
appealing, complex, and
relevant
Which one of the following
computer programs prevents email
messages containing the word
"free" in the subject header from
entering an inbox:
A.
Queues
B.
Gophers
C.
Filters
D.
Servers
“You Do”: PROJECT
1.
2.
Each group will be assigned one of the following: Radio, Direct Marketing,
Outdoor, Newspaper or Magazine Advertising.
You will need to research and identify the following information:
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3.
4.
Pros of using your media for advertising
Cons of using your media for advertising
Types of Costs using your media advertising
Organize information above in a POWERPOINT Presentation to be presented to
the class.
INVENT/MAKE-UP a product and CREATE an advertisement for your media
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Radio- Needs to be a SCRIPT read to the class Identify which station it will be on and
what time of day it will be played. WHY? (Hint- needs to reach your target audience)
Magazine- Needs to be a full-page ad. Identify which magazine it will be in and what
day/month subscription. WHY? (Hint- needs to reach your target audience)
Direct Marketing- Who is on your mailing list and when will you be mailing it out?
(Define the target market) (Hint- needs to reach your target audience)
Outdoor- Which road/physical location will it be located and for how long and what
time of year? (Hint- needs to reach your target audience)
Newspaper- Needs to be a full-page ad. (You chose if it is color or not) Which
newspaper will it be in and on what day? (Hint- needs to reach your target audience)