Chapter 1: Where Marketing Communication Began
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Chapter 11 Media choices: evaluating media options Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-1 Learning objectives 1. To examine the structure of specific media industries including broadcast, print, out-ofhome and cinema and the role of each media channel in the IMC program. 2. To consider the advantages and limitations of each media channel. 3. To explain how audiences are measured and how rates are determined. 4. To consider future trends and how they will influence the use of media channels in IMC programs. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-2 TV Radio Newspapers Print Broadcast Promotional products Cinema Magazines Out-of-home Advantages and imitations Media choices Media buying Branded entertainment Audience measurement Product placement and computer games Future trends Digital impact Social media Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-3 Media engagement Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-4 Share of advertising expenditure by main media: Australia % share Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-5 Share of advertising expenditure by main media: New Zealand 10.2 29.3 28.4 % share Source: Advertising Standards, New Zealand, 2011 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-6 TV Radio Newspapers Print Broadcast Promotional products Cinema Magazines Out-of-home Advantages and imitations Media choices Media buying Branded entertainment Audience measurement Product placement and computer games Future trends Digital impact Social media Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-7 Television penetration and reach 90% of TV households own VCR 68% of TVs are digital Approx 13.5 million people watch TV on any given day The average Australian watches approx 3 hours of TV per day Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-8 Television advantages Creativity and impact Coverage and cost effectiveness Captivity and attention Selectivity and flexibility Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-9 Television disadvantages Fleeting message Cost Limited attention Zipping Low selectivity Negative factors Clutter Zapping Negative evaluation Distrust Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-10 Top 10 network TV advertisers: Australia 2009 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-11 Top 10 TV advertisers, New Zealand 2009 Company/ Brand TV Spend ($millions) Reckitt Benckiser NZ 37.16 Unilever Australasia 32.54 BrandWorld 26.36 NZ Lotteries Commission Harvey Norman L'Oreal The Warehouse 23.79 23.58 22.18 20.48 Progressive Enterprises NZ Transport Agency Telecom Corp Of NZ Mitre 10 NZ 19.43 19.09 18.67 18.16 Source: Nielsen Media Research, New Zealand, AIS Data, 2009 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-12 Foxtel advertising Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-13 Television formats: Australia Public broadcasters Metropolitan: (FTA) TV formats Regional: (FTA) Community TV Subscription: (STV) Digital transmission Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-14 Television formats: New Zealand Public broadcaster (TVNZ) Private networks TV formats Pay television Maori TV Regional and niche broadcasters Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-15 Buying TV advertising time Spot buying Sponsorship Local: Commercials shown on local stations National: Spots purchased across major networks Sponsor entire program Spot announcements between programs Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-16 TV dayparts Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-17 Subscription TV: national report Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-18 Measuring the TV audience: key measures Program rating Rating = HH (or PPL) tuned to show Total HH (or PPL) Share of audience Share = HH (or PPL) tuned to show HH (or PPL) using TV Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-19 Measuring the TV audience: key measures (cont.) Target audience ratings points (TARPs) TARP = Number of PPL in a target audience reached by a media buy x 100 Potential target audience for media buy Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-20 The future of TV: new delivery modes Subscription Continued growth of subscription TV Digital Superior viewing experience and increased variety of promotional opportunities and audience engagement PVRs/VOD Personal video recorders enable recording and storing of TV programs for subsequent viewing Infomercials Interactive TV allows audiences to interact with program in real time via phone or internet connections Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-21 Radio penetration and reach 261 Australian radio stations (110 AM + 151 FM) 37 million radios in use 89% of households have 3+ radios, and 99 % of cars have a radio Radio reaches 61% of all Australians each day and 77% every week Commercial breakfast radio attracts audiences of over 6.6 million p.w. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-22 Radio advertising Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-23 Advantages and limitations of radio Advantages Cost and efficiency Selectivity Disadvantages Creative limitations Audience fragmentation Chaotic buying Flexibility Limited research data Mental imagery Limited listener attention Integrated marketing opportunities Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Clutter 11-24 Commercial Radio Australia Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-25 Radio survey: Sydney 2010 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-26 Radio survey: Melbourne 2010 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-27 Buying radio time Three national networks Network radio (Austereo, Australian Radio Network and DMG) Over 217 regional networks Local radio The majority of radio advertisers are local Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-28 Radio dayparts Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-29 TV Radio Newspapers Print Broadcast Promotional products Cinema Magazines Out-of-home Advantages and imitations Media choices Media buying Branded entertainment Audience measurement Product placement and computer games Future trends Digital impact Social media Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-30 Magazines: penetration and reach 230 million+ magazines are purchased annually (13 mags for every person aged 14+). 8 in 10 people read 1+ magazines (84% of females & 76% of males). Combined reach of the top 5 magazines is 53% of all females aged 14+. Growth in digital magazine advertising expected as consumers adopt tablets. Source: Magazine Publishers Association of Australia Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-31 Classifications of magazines By audience By delivery • Consumer magazines • Newspaper inserted magazines • Business magazines • Street press • Custom magazines Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-32 Business magazines Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-33 Custom magazines Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-34 Advantages and disadvantages of magazines Advantages Selectivity Reproduction quality Creative flexibility Permanence Prestige Receptivity & involvement Disadvantages Costs Limited reach Limited frequency Long lead time Clutter Services Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-35 High reach consumer magazines: Australia 2010 Rank, Magazine Title 1 Australian Women’s Weekly 2 Woman’s Day 3 Better Homes & Gardens 4 New Idea 5 Reader’s Digest 6 That’s Life 7 Superfood Ideas 8 Take 5 9 TV Week 10 Cosmopolitan 11 Masterchef Magazine 12 Delicious 13 Who 14 Woolworths Good Taste 15 Recipes+ 16 Australian Geographic 17 Family Circle 18 NW 19 Cleo 20 Australian House & Garden Circulation Readership (000s) 486,179 385,016 384,512 316,527 266,173 261,311 255,256 217,281 187,822 150,346 150,000 134,242 131,229 127,528 126,007 120,835 120,532 116,260 110,081 108,098 2,208 2,012 1,938 1,484 778 1,102 1,024 843 854 544 868 536 639 685 433 405 * 327 411 660 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-36 High reach consumer magazines: New Zealand 2010 Circulation Readership (000s) AA Directions SKYWATCH TV Guide 542,242 535,591 147,956 901 1,040 659 4 New Zealand Woman's Day 105,127 814 5 6 New Zealand Woman's Weekly Australian Women's Weekly (NZ edn) 80,439 80,032 834 656 7 8 9 10 Reader's Digest (NZ) New Zealand Listener Cuisine New Idea 67,986 63,930 54,882 50,563 404 269 407 462 11 12 13 14 15 16 17 18 19 20 Healthy Food Guide NZ House & Garden New Zealand Gardener Next Foodtown Magazine That's Life! Simply You Your Home and Garden Mindfood Taste 50,182 48,752 48,699 46,489 45,754 39,004 35,118 34,163 31,551 28,613 355 561 344 370 339 297 113 307 153 215 Rank Magazine Title (ranked on circulation) 1 2 3 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-37 Creative flexibility with magazines Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-38 Receptivity and involvement Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-39 Magazine circulation and readership Primary circulation Circulation Readership Controlled circulation Circulation audit Pass-along readership Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-40 Purchasing magazine advertising space Full page (PF) Size Half page, quarter page Mono (black ink on stock paper) Colour Spot colour (black plus one other colour) Four colour Purchase frequency & volume Casual insertion Contract rates Magazine networks Inserts & other Inserts, gatefolds, tip-ons, cover mounts, etc. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-41 The future of magazines Declining ad revenues Stronger editorial platforms Circulation management Magazine trends Cross-magazine and media deals Database marketing Advances in technology Online delivery methods Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-42 Magazines and technology Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-43 Newspapers: penetration and reach Australians spent approx $1.3 billion buying newspapers in 2010 In Melbourne, the two daily papers enjoy a reach 72% p.w. In Sydney, the two dailies reach 61% p.w. One million Australians have downloaded newspaper branded apps. Growth in digital newspaper advertising expected as consumers adopt tablets. Source: Newspaper Publishers Association of Australia Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-44 Newspaper types Daily Publication frequency Weekly National Coverage Regional Community Size Broadsheet Tabloid Audience General news, business/ finance Specialist: e.g. agricultural Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-45 Newspaper advertising Page advertising Size and position Column centimetre (SCC) Run of paper (ROP) Preferred positions Volume Combination rates Contract rates Casual rates Inserts, tip-ons, etc. By negotiation Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-46 Unique newspaper features Extensive penetration Flexibility Geographic selectivity Reader involvement and acceptance Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-47 Flexibility Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-48 Creative placement Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-49 The future for newspapers Competition from other media Circulation Challenges for newspaper publishers Attracting and retaining readers Digital news & fee for service Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-50 TV Radio Newspapers Print Broadcast Promotional products Cinema Magazines Out-of-home Advantages and imitations Media choices Media buying Branded entertainment Audience measurement Product placement and computer games Future trends Digital impact Social media Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-51 Support media Point-ofpurchase Out-of-home media Promotional products Support & alternative media Product placement Cinema Branded entertainment Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-52 OOH: penetration and reach Out-of-home advertising is growing at 19% per annum Outdoor provides a continuous 24/7 presence. Research findings suggest that OOH results in sustained and persistent brand awareness OOH, when used to complement TV, results in 30% improvement in recall of TV advertising Source: Outdoor Media Association of Australia Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-53 Out-of-home media Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-54 Out-of-home (cont.) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-55 Out-of-home (cont.) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-56 Promotional products Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-57 Cinema: penetration and reach In an average month, 29% of Australians will attend the cinema. People aged 14-17 years have the highest cinema participation rates (46%). Australia has 1,994 cinema screens plus 452 digital screens with a collective seating capacity of 453,000 seats. Source: Screen Australia Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-58 Advantages and disadvantages of cinema Advantages Disadvantages Exposure Costs Recall Irritation Mood Lack of clutter Cost efficiency Proximity Segmentation Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-59 Advantages and disadvantages of branded entertainment Advantages Exposure Frequency Support for other media Source association Disadvantages High absolute costs Time of exposure Limited appeal Cost efficiency Lack of control Recall Public reactions Bypassing regulations Competition and clutter Acceptance Negative placements Targeting Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-60 Summary and conclusions Advertisers must select the optimal way to reach and involve audiences from a very wide array of media and channels. To evaluate different media, advertisers consider a range of quantitative and qualitative aspects including: reach frequency cost efficiency media environment geographic and demographic selectivity media engagement and involvement. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 11-61
