Transcript Document

Advertising Principles
and Practices
Media Basics
and Print Media
Staying Cool
with Apple’s iPod
• Apple created buzz for iPod
with more than 6,000 iPod
and iTunes stories in major
\
publications
worldwide (PR).
• A “cool” advertising
campaign featured
dynamic silhouettes in
posters, magazines and
television ads, and
billboards.
Prentice Hall, © 2009
8-2
The Changing Media Landscape
• Consumer Media Usage
– Recent generations spend more time with media.
– Media focused lives—the average person spends 9 hours a day
with some type of media (including mass media, iPods, cell
phones, books, email).
– Media multitasking—about 68% of people use other media with
TV; 30% use more than one media at at time.
• Advertising Media Use
– Online newspaper, cable, outdoor, and the Internet is increasing;
newspaper and network TV is declining.
• The Media Plan
– Identifies the best media to efficiently deliver an advertising
message to a targeted audience.
– A subsection within an advertising plan with its own objectives,
strategies, and tactics.
Prentice Hall, © 2009
8-3
Table 8.1
Evolution of Media Availability Among the Generations
Traditionalists Baby Boomers
Gen X
[Born before 1946] [Born 1946-1964] [Born 1965-1976]
[Born 1977-1994]
Newspapers
Magazines
Broadcast Radio
Broadcast TV
Transistor Radio
8-track Tapes
Cassette Tapes
Walkman Radio
Video Games
VCRs
Cable TV
Personal Computers
Satellite TV
Internet
Cell Phones
Online News
DVD Players
Satellite Radio
MP3 Players
TiVo
iPod Video Player
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Key:
 This technology/media format was “always there”
• This technology/ media format was invented during this generation’s time
Prentice Hall, © 2009
8-4
Table 8.2
Television
Broadcast TV
Cable TV
Direct Mail
Newspapers
National
Retail
Classified
Online*
Radio
Magazines
Directory
Business papers
Out of Home
Internet**
Miscellaneous***
Total All Media
U.S. Media Advertising Expenditures
2003
($ Millions)
2004
2005
60,746
41,932
18,814
48,370
46,155
7,797
21,341
15,801
1,216
19,100
11,435
13,896
4,004
5,443
4,434
31,990
67,794
46,267
21,527
52,191
48,244
8,083
22,012
16,608
1,541
19,581
12,247
14,002
4,072
5,770
5,312
34,654
67,947
44,293
23,654
55,218
49,436
7,910
22,178
17,312
2,027
19,640
12,847
14,229
4,170
6,232
5,737
35,692
.002
-.04
.10
.06
.02
-.02
.004
.04
.32
.005
.05
.01
.02
.08
.08
.03
$245,573
$263,867
$271,148
.03
% Change
% of Media
.25
.20
.18
.07
.05
.05
.02
.02
.02
.13
*Advertising in online newspaper
**Non-newspaper Internet advertising
*** Includes weeklies, shoppers, penny savers, and cinema advertising
Source: Adapted from The Source: Newspapers by the Numbers 2006, Newspaper Association of America, January
2007, www.naa.org/thesource/the_source_newspapers_by_the_numbers.pdf
Prentice Hall, © 2009
8-5
Key Media Players
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Media sales
Media reps or brokers
Media researchers
Media planners
Media buyers
Media buying companies
Prentice Hall, © 2009
8-6
Key Media Concepts
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•
•
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Media mix
Media vehicle
Targets and audiences
Measuring print audiences
– Impressions
– Circulation
– Gross impressions
• Reach
• Frequency
Prentice Hall, © 2009
8-7
Newspaper Basics
• Types of Circulation
• Editions
– Subscription
– Single Copy sales
– Third Party
• Frequency of Publication
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–
–
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Dailies
Weeklies
Sunday editions
Business or organization
newspapers
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–
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Morning
Evening
All-day
Special Interest
• Format and Size
– Broadsheet
– Tabloid
Principle:
A basic principle of newspaper publishing
is that people read newspapers as much for the ads as
they do for the news stories.
Prentice Hall, © 2009
8-8
Newspaper Ad Sales
• Ads are sold based on size of the space.
– Local advertisers and volume buyers get
discounts; national advertisers pay a premium.
• Ads are sold by local sales staff or brokers
(one-order, one-bill).
• The introduction of SAU (Standard Ad Units)
in the 80s made national buying much easier.
• Some newspapers offer large advertisers hybrid
rates (between local and national).
• Coop advertising—a local retailer places an ad
and the manufacturer pays for part of the ad.
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8-9
Types of Newspaper Advertising
• National vs. Local
• Classified
– Individuals selling goods; advertising by local
businesses
• Display
– Any size, placed anywhere except editorial
– Run-of-paper or preferred-position
• Supplements
– Independent, magazine-style publications sold
to newspapers
– Free-standing inserts are preprinted ads (like
grocery ads) inserted for a fee.
Prentice Hall, © 2009
8-10
Table 8.3
Newspaper Advertising by Category
National
Local/Retail
Classified
Online
Newspaper Total
$Mil %change
$Mil %change
$Mil %change
$Mil %change
$Mil %change
2000
$7,653
13.7
$21,409
2.4
$19,608
5.1
$48,670
5.1
2001
$7,004
- 8.5
$20,679
-3.4
$16,622 -15.2
$44,305
-9.0
2002
$7,210
2.9
$20,994
1.5
$15,898
-4.3
$44,102
-0.5
2003
$7,797
8.1
$21,341
1.7
$15,801
-0.6
$1,216
$46,156
1.9
2004
$8,083
3.7
$22,012
3.1
$16,608
5.1
$1,541
26.7
$48,244
4.5
2005
$7,910
-2.2
$22,187
0.8
$17,312
4.2
$2,027
31.5
$49,435
2.5
Adapted from Value of Newspaper Medium, Newspaper Association of American, 2007.
Prentice Hall, © 2009
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Newspaper Readership
Measurement
• Half of American adults
read the newspaper daily.
• Readers or older; have
higher incomes and
education levels.
• Newspapers measure their
audiences to attract
advertisers.
– Audit Bureau of Circulation
verifies circulation statistics
– Simmons measures readership
profiles in 70 of major cities
Prentice Hall, © 2009
8-12
Table 8.2
Top 20 Magazine Advertising Leaders
(ranked by total U.S. advertising and circulation gross revenues in 2005)
Rank
05
Gross Ad Revenue
$ Mil
% change
04
Magazine
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
1
5
3
2
4
7
6
8
9
11
10
13
15
14
22
19
12
20
16
23
People
Better Homes & Gardens
Time
Sports Illustrated
TV Guide
Parade
Newsweek
Reader’s Digest
Good Housekeeping
Woman’s Day
Cosmopolitan
InStyle
Family Circle
USA Weekend
Us Weekly
Ladies’ Home Journal
BusinessWeek
Vogue
Forbes
the New York Times Magazine
$1,374.2
971.5
944.6
925.7
726.1
626.0
622.0
586.9
586.5
502.7
472.8
455.4
434.6
431.4
417.4
412.9
396.5
392.8
381.6
373.8
8.1
9.4
-6.0
-9.8
-20.9
1.6
-4.8
5.5
7.8
11.2
3.5
8.5
9.9
3.6
28.5
12.3
-7.8
8.5
-0.2
21.1
Source: Maureen Morrison, “Leading Magazines Gain 5.2% to $36.6 Billion,” Advertising
Age, October 23, 2006, S-13.
Prentice Hall, © 2009
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Types of Magazines
• Types of Magazines
– Consumer magazines
– Business magazines
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Trade papers
Industrial magazines
Professional magazines
Farm magazines
• Classifications of Magazines
– Vertical vs. horizontal publications
– Geography
– Demographics
– Editorial content
– Physical Characteristics
– Ownership
– Distribution and circulation
Prentice Hall, © 2009
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Magazine Advertising: Format
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Premium positions
Double-page spread
Bleed page
Gatefold
Special ad page or section that
looks like editorial
• Multiple-page photo essay
• Fractional page space
Prentice Hall, © 2009
8-15
Magazine Readership
Measurement
• Magazine rates are based on guaranteed circulation
a publisher promises to provide.
• Readership represents total audience, which includes
pass-along readers.
• Objective, outside measurement companies:
– Audit Bureau of Circulation—independently verifies
circulation statistics
– Media Mark—MRI measures readership for many popular
national and regional magazines
– Simmons Market Research Bureau—provides
psychographic data on readers plus what products they buy
– Companies like Starch, Gallup & Robinson provide
audience size and behavior information
Prentice Hall, © 2009
8-16
Directory Advertising
• Directories list people or companies, phone numbers,
and addresses.
• About 90% of the people who consult the Yellow
Pages follow up with action.
• Retailers can buy display space for larger ads, but
directories can be cluttered.
• 7,500 directories for professional and interest groups
Principle:
The principle behind directory advertising is
that it is directional—it tells people who already
are in the target market where to go to get the
product or service they want.
Prentice Hall, © 2009
8-17
Out-of-Home Advertising
• Outdoor
– Street and highway, plus
posters in public locations.
– Reminder and directional
– Printed and painted
– Extensions and digital
displays
• On-premise signs
– Identify a store
• Posters
– Used on buildings, kiosks,
vehicles, and bulletin boards
• Transit advertising
– Interior/exterior ads on buses
and taxis, moving billboards
Prentice Hall, © 2009
8-18
Packaging
• Both a container and a
communication vehicle
• Constant brand reminder
once at home or office
• Presents brand image and
communicates critical
benefits information
• Can deliver benefits like
recipes
Principle:
A package is the last ad a customer sees before
making a decision on which brand to buy.
Prentice Hall, © 2009
8-19
Table 8.6
Print Media Advantages and Limitations
Newspaper Advertising
Advantages
Limitations
Good for news announcements
Good market coverage
Good for comparison shopping
Positive consumer attitudes
Good to reach educated and affluent consumers
Flexibility—Geographic; scheduling
Short life span
Clutter
Limited reach for certain groups
Poor production values
Magazine Advertising
Advantages
Limitations
High production values
Targets consumers’ interests—
specialized audiences
Receptive audience
Long life span
Format encourages creativity
Good for brand messages
Good for complex or in-depth messages
Long lead times—limited flexibility
Lack of immediacy
High cost
Sometimes limited distribution
Prentice Hall, © 2009
8-20
Directory Advertising
Advantages
Limitations
Directional: consumers go to directories for
shopping information
Inexpensive
Good ROI of 1:15—every dollar spent of an ad
produces $145 in revenue
Flexible in size, colors, formats
Long life
Lack of flexibility—can be a long time before a
change can be made
Competitive clutter and look-alike ads
Low production quality
Outdoor Advertising, Including Transit
Advantages
Limitations
Good situational medium
Directional
Brand reminder medium
High-impact—larger than life
Least expensive
Long life
Packaging
Traffic moves quickly
Can’t handle complex messages—designs must
be simple
May be easy to miss (depending on location)
Some criticize outdoor ads for “polluting” the
landscape
Transit lacks the size advantage of other outdoor
media
Advantages
Limitations
Stimulates point-of-purchase decision making
Last ad a consumer sees
In-home is brand reminder on shelf
Billboarding effect can dominate shelf
Reinforces brand advertising
Delivers product information
Cluttered environment
Shelf space may be limited
Can get inconvenient placement—such as
bottom shelf
Limited space needs simple message
Prentice Hall, © 2009
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Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
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8-22