Media Planning Develop a media plan for a product you were given using billboards, radio ads, magazines, television commercials, and/or newspapers for a 3 month period. Assume you have $500,000 to reach a target audience of 1,250,000 people. You will want to calculate the CPM for the different types of media you plan to advertise in. Media Billboard Radio ad, drive time Magazine, one page color ad CPM TV Commercial in prime time Newspaper, one third page, black and white Customers Avg 75,000 (Depends on location) 45,000 http://adage.com/datacenter/datapopup.php?article_id=115101 OR http://abcas3.accessabc.com/ecirc/index.html http://tv.zap2it.com/ http://abcas3.accessabc.com/ecirc/index.html Clarify: Cost per thousand is referred to as CPM instead of CPT because the M stands for mille, the Latin word for thousand. Example: Take the average number of customers and divide that by the cost. The will give you the cost per 1,000 customers. Try to find the best type of advertising that best fits the company that you were given. Select the types that will show the products and services that are offered and will reach the most potential customers in a selected media type. Type up your results in a word document and make sure you explain what the cost will be for each type, the CPM, the number of potential customers exposed, and what type of media you will use. For newspapers, magazines, and TV make sure you choose a specific media. List the features and benefits for each type and why you selected it. Criteria Points Possible Spent no more than $500,000 and your campaign would target 1, 250,000 people 10 Used a variety of media that fits the company you were given 10 Explain the features and benefits of each type of media you used. 10 Points Earned PROFILES OF MAJOR MEDIA TYPES Medium Advantages Limitations Newspapers Flexibility; timeliness; good local market coverage; broad acceptability; high believability Short life; poor reproduction quality; small pass-along audience Television Good mass market coverage; low cost per exposure; combines sight, sound, and motion; appealing to the senses High absolute costs; high clutter; fleeting exposure; less audience selectivity Direct mail High audience selectivity; flexibility; no ad competition within the same medium; allows personalization Relatively high cost per exposure; “junk mail” image Radio Good local acceptance; high geographic and demographic selectivity; low cost Audio only, fleeting exposure; low attention (the half-heard” medium); fragmented audiences Magazines High and demographic selectivity; credibility and prestige; high-quality reproduction; long life and good passalong readership Long ad purchase lead time; high cost; no guarantee of position Outdoor Flexibility; high repeat exposure; low cost; low message competition; good positional selectivity Little audience selectivity, creative limitations Online High selectivity; low cost; immediacy; interactive capabilities Small, demographically skewed audience; relatively low impact; audience controls exposure Average Costs for Advertising*: Newspapers – $1,300 per week for 2” x 2” ad Television – $100,000 for one 30-second commercial (during prime-time) Direct Mail - $1,500 for 1,000 4x6 postcards (includes postage) Radio - $90 to $120 per week on a rotator (prices higher if time slots for ad are selective) Magazines - $1,200 to $5,000 per month or per issue (depends on ad size and demographics) Outdoor (billboard) - $3,000 to do artwork and install media on billboard; rates depend on impress level, ranges from $5,000 to $500,000 (the higher the qualify of the artwork and the larger the demographic group, the higher the price); minimum contract is 16 weeks Or $600 to $2500 per month. Online - $0.60 pay-per-click or $1,200 - $1,800 a month for aggressive campaigns (does not include search engine optimization) or $200 to $1,200 per year per banner ad on websites *Note: Prices reflected are negotiated prices for a 12-week campaign