Discussion Slide
8
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?
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• • • • •
Advertising Media Selection
Chapter Overview
Nature of media strategy Media planning Media buying Media choices B-to-B and international media selection
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Media Strategy
• • • • Objectives of the campaign Target audience Message theme Constraints
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FIGURE
8.1
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.
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People Involved in Media Selection
Media Buyer
Media Planner
Creative
Account Executive
Client
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Media Planning
• Focus on consumer behavior • Create plans that reflect purchase process • Influence consumer in the marketplace
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Components of a Media Plan
• • • • • Marketing analysis Advertising analysis Media strategy Media schedule Justification and summary
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Media Planner
Target Market
Media Audience Characteristics
Media Audience Characteristics
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Media Planner
An advertisement by New Balance placed in Runner’s World magazine by the media planner.
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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.
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Media Terms
• • • • • • • • • Reach Frequency Opportunity to see (OTS) Gross rating points Effective rating points Cost per thousand (CPM) Cost per rating point (CPRP) Continuity Impressions
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Table 8.1
Magazine Cost for 4color full page ad $346,080 $780,180 $605,880 $11,370 $965,940 $1,324,282 $183,216 $100,740 Total readership (000's) 21,051 15,594 21,824 5,733 13,583 21,468 2,205 8,929 CPM Total Target Market (20M) Rating (Reach) $16.44 $50.03 $27.76 $1.98 $71.11 $61.69 $83.09 $11.28 16.1 12.2 9.4 2.4 10.5 15.9 2.3 8.3 Cost per Rating Point (CPRP) $21,496 $63,949 $64,455 $4,738 $91,994 $83,288 $79,659 $12,137
National Geographic Newsweek People Southern Living Sports Illustrated Time Travel & Leisure U.S. News
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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.
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Ad Campaign Continuity
• Continuous campaign • Pulsating campaign • Flighting campaign
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Achieving Advertising Objectives
• • • • • • Three-exposure hypothesis Effective frequency Effective reach Recency theory Intrusion value Media multiplier effect
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Media Selection
Percentage who indicated they were “very attentive” to brand messages by various media. (Figure 8.2)
• • • •
Word-of-mouth Sampling In-store Mass media
• TV, Radio, Newspapers, Magazines, Outdoor
63% 45% 32% 27%
23% 18% 15% 10% 7%
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• Sponsorship • Alternative media
• Viral, guerrilla, etc.
• Public relations • Online • Direct mail
Source: David Kaplan, “Study: Masses Still Tuned in to Mass Media,” Adweek, Vol. 44, No. 42 (October 27, 2003), p. 12.
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T A B L E 8 .Television 2 Television Table 9.2
Advantages High reach High frequency potential Low cost per contact Quality creative opportunities 5. High intrusion value 6. Segmentation possibilities through cable outlets 1. 2. 3. 4.
Disadvantages 1. Greater clutter 2. Channel surfing during commercials 3. Short amount of copy 4. High cost per ad 5. Low recall due to clutter
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Nielsen Ratings
Rating number of household turned to a program total number of households in a market
In the United States, the total number of households with television sets is approximately 109.7 million. To calculate the rating of an episode of American Idol, if the number of households tuned to the season finale was 17.8 million, then the rating would be:
Rating 17,800,000 16 .2 109 ,700 ,000
Next, if the advertiser were interested in the percentage of households that actually were watching television at that hour, the program’s share could be calculated. If 71 million of the 109.7 million households had a television turned on during the hour in which American Idol aired, the share would be:
Share number of households tuned to Survivor 17 ,800 ,000 25 number of households with a televisio n turned on 71,000 ,000
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FIGURE 8 . 3 FIGURE 8.3
Cost of a 30-second Ad and Nielsen Rating
Cost Nielsen 30 Second Ad Rating
TV Show
• • • • • • American Idol Survivor CSI: Miami Everybody Loves Raymond Two and a Half Men Law and Order
$658,333 $412,833 $374,231 $315, 850 $249,017 $227,500
16.2 10.8 10.0 9.8 9.6 8.3
Sources: “Average Price of a 30-second Ad for Fall 2004,” The Futon Critic, Http://www.thefutoncritic.com, March 29, 2005; “Nielsen Media Research Top 20,” Http://tv.yahoo.com/nielsen, March 29, 2005. © 2007 by Prentice Hall 8-19
Television Advertising
A locally produced advertisement for Matt’s Music Store.
Click on video to play ad.
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TAB LE Radio
Advantages
8.3
Disadvantages 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 DJs and radio personalities) 8. Creative opportunities with music and other sounds 9. Mobile: people carry radios everywhere
1. 2. 3. 4. 5. 6. 7.
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Radio Advertising
An advertisement by Haik Humble Eye Center.
Click on speaker to play ad.
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TAB LE Outdoor
Advantages 1. 2. 3. 4. 5. 6.
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Disadvantages
Legal limitations Short exposure time Brief messages Little segmentation possible 5. Cluttered travel routes 1. 2. 3. 4.
Large, spectacular ads possible Able to select geographic areas Accessible for local ads Low cost per impression Broad reach High frequency on major commute routes
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Figure 8.4: Expenditures on Outdoor Advertising During the First Quarter of 2004
Beer and wine Insurance and real estate Auto dealers & services Financial Restuarants Media and advertising Retail Public trans., hotels, resorts Local services, amusements $0.0 $50.0 $100.0 $150.0 $53.8 $94.5 $94.5 $99.8 $99.8 $111.6 $112.9 $128.6 $203.4 $200.0 $250.0
1st Quarter 2004 (Millions)
Source: Deborah L. Vence, “Outdoor Ads Leverage New Technology,” Marketing News, Vol. 38, No. 15 (September 15, 2004), pp. 11-13.
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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.
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This ad for a portable e-mail device is aimed at busy travelers looking for convenience.
http://www.billboardinfo.com
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Http://www.jessicamcclintock.com
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TAB LE Internet
Advantages
8.5
Disadvantages
1. Clutter 2. Difficult procedures to place ads and buy space 3. Reach only computer owners 4. Low intrusion value 5. Hard to retain interest of surfers
Creative possibilities Short lead time to send ad Simplicity of segmentation High audience interest on each Web site 5. Easier to directly measure responses
1. 2. 3. 4.
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TAB LE 8 . 6 Magazines
Advantages 1. High market segmentation 2. Targeted audience interest by magazine 3. High color quality 4. Long life 5. Direct response techniques 6. Read during leisure time 7. Longer attention to ads
Disadvantages
1. 2. 3. 4. 5. Long lead time for ads Little flexibility High cost High level of clutter Declining readership
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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%
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Source: Http://www.adage.com (1999 figures)
TAB LE 8 . 7 Newspapers
Advantages 1. Priority for local ads 2. Coupons and special-response features 3. High credibility 4. Strong audience interest 5. Longer copy/message possible 6. High flexibility 7. Cumulative volume discounts
Disadvantages
1. 2. 3. 4. 5. Major clutter Short life span Poor quality reproduction Limited audience Poor buying procedures
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Direct Mail
Lands in hands of person who opens mail and makes purchase decisions Response rate averages 2.5 percent Disadvantages are clutter and costs Used heavily in business-to-business marketing
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Alternative Media
Leaflets, brochures, and carry-home menus Ads on carry-home bags Ads on clothing and caps Ads on movie trailers (theater and rentals) Yellow pages Ads sent by fax Video replay and signage at sporting events Ads on walls in airports, subways, etc. Guerrilla marketing Product placements
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Media Mix - United States
Radio 3% Magazines 20.9% Outdoor 2.2% Newspapers 21.4%
Internet 5.3% Television 47.2%
Source: “100 Leading National Advertisers,” Advertising Age (June 29, 2004), pp. 1-5.
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TAB LE
8.8
Advertising Expenditures by Category
Magazines
Retail Automotive Food & beverages Airlines, hotels, car rental Restaurants Apparel 8.4% 11.9% 24.2% 23.1% 2.6% 71.6%
Newspaper
41.3% 34.1% 0.6% 34.3% 3.6% 1.1%
Outdoor
1.8% 1.8% 0.8% 5.6% 5.0% 0.9%
Television
37.0% 48.6% 70.6% 27.4% 84.8% 22.9%
Radio
4.6% 2.4% 2.7% 2.5% 3.6% 0.7%
Internet
6.9% 1.2% 1.0% 7.1% 0.4% 2.8%
Total Domestic Ad Spending
20.9%
21.4%
2.2%
47.2%
3.0%
5.3%
Source: “100 Leading National Advertisers,” Advertising Age, (June 29, 2004), pp. 1-5.
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FIGURE
8.5
Developing Logical Combinations of Media
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Shift by B-to-B Advertisers to Non-business Media
Fact: 56% 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.
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FIGURE
8.6
Business-to-Business Advertising Expenditures
Television, 20.4% Trade publications, 43.5%
Consumer magazines, 10.4% Outdoor, 2.1%
Internet, 5.5%
Newspaper, 16.2% Radio, 2.2%
Source: Sean Callahan, “Advertising Remains Favorite Communications Vehicle, With Traditional Trade Publications, Advertising Age’s Business Marketing, May 99, p. S4.
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Media Selection International Markets
• Media importance varies. • Media viewing habits vary across countries. • Media buying is different. • Cultural mores vary.
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FIGURE
Figure 8.8 8.8
Media Usage in North America, Europe, and Global Media Spending Japan
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