Transcript clow_imc03_media_ppt..

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?
© 2007 by Prentice Hall
8-1
Advertising Media
Selection
8
Chapter Overview
•
•
•
•
•
Nature of media strategy
Media planning
Media buying
Media choices
B-to-B and international media
selection
© 2007 by Prentice Hall
8-2
Media Strategy
•
•
•
•
Objectives of the campaign
Target audience
Message theme
Constraints
© 2007 by Prentice Hall
8-3
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.
© 2007 by Prentice Hall
8-4
People Involved in Media Selection
Media Buyer
Media Planner
Creative
Account
Executive
Client
© 2007 by Prentice Hall
8-5
Media Planning
• Focus on consumer behavior
• Create plans that reflect
purchase process
• Influence consumer in the
marketplace
© 2007 by Prentice Hall
8-6
Components of a Media Plan
•
•
•
•
•
Marketing analysis
Advertising analysis
Media strategy
Media schedule
Justification and summary
© 2007 by Prentice Hall
8-7
Media Planner
Target
Market
Media
Audience
Characteristics
Media
Audience
Characteristics
© 2007 by Prentice Hall
8-8
Media
Planner
An advertisement by
New Balance placed
in Runner’s World
magazine by the
media planner.
© 2007 by Prentice Hall
8-9
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.
© 2007 by Prentice Hall
8-10
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
© 2007 by Prentice Hall
8-11
Table 8.1
Cost for 4color full
page ad
Total
readership
(000's)
CPM
Total
National Geographic
$346,080
21,051
Newsweek
$780,180
People
Magazine
Target Market (20M)
Rating
(Reach)
Cost per Rating
Point (CPRP)
$16.44
16.1
$21,496
15,594
$50.03
12.2
$63,949
$605,880
21,824
$27.76
9.4
$64,455
Southern Living
$11,370
5,733
$1.98
2.4
$4,738
Sports Illustrated
$965,940
13,583
$71.11
10.5
$91,994
$1,324,282
21,468
$61.69
15.9
$83,288
Travel & Leisure
$183,216
2,205
$83.09
2.3
$79,659
U.S. News
$100,740
8,929
$11.28
8.3
$12,137
Time
© 2007 by Prentice Hall
8-12
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.
© 2007 by Prentice Hall
8-13
Ad Campaign Continuity
• Continuous campaign
• Pulsating campaign
• Flighting campaign
© 2007 by Prentice Hall
8-14
Achieving Advertising Objectives
•
•
•
•
•
•
Three-exposure hypothesis
Effective frequency
Effective reach
Recency theory
Intrusion value
Media multiplier effect
© 2007 by Prentice Hall
8-15
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
63%
45%
32%
27%
• TV, Radio, Newspapers, Magazines, Outdoor
• Sponsorship
• Alternative media
23%
18%
• Viral, guerrilla, etc.
• Public relations
• Online
• Direct mail
15%
10%
7%
Source: David Kaplan, “Study: Masses Still Tuned in to Mass Media,” Adweek, Vol. 44, No. 42
(October 27, 2003), p. 12.
© 2007 by Prentice Hall
8-16
T A B L E 8 .Television
2
Television
Table 9.2
Advantages
Disadvantages
1.
2.
3.
4.
1. Greater clutter
2. Channel surfing during
commercials
3. Short amount of copy
4. High cost per ad
5. Low recall due to clutter
High reach
High frequency potential
Low cost per contact
Quality creative
opportunities
5. High intrusion value
6. Segmentation possibilities
through cable outlets
© 2007 by Prentice Hall
8-17
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
© 2007 by Prentice Hall
8-18
FIGURE
FIGURE 88.3
.3
Cost of a 30-second Ad and
Nielsen Rating
TV Show
•
•
•
•
•
•
American Idol
Survivor
CSI: Miami
Everybody Loves Raymond
Two and a Half Men
Law and Order
Cost
Nielsen
30 Second Ad Rating
$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.
© 2007 by Prentice Hall
8-20
TAB LE
Radio
8.3
Advantages
Disadvantages
1.
2.
3.
4.
5.
6.
7.
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
© 2007 by Prentice Hall
8-21
Radio Advertising
An advertisement by
Haik Humble Eye Center.
Click on speaker to play ad.
© 2007 by Prentice Hall
8-22
TAB LE
Outdoor
8.4
Advantages
Disadvantages
1.
2.
3.
4.
5.
6.
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
Legal limitations
Short exposure time
Brief messages
Little segmentation
possible
5. Cluttered travel routes
© 2007 by Prentice Hall
8-23
Figure 8.4: Expenditures on Outdoor Advertising
During the First Quarter of 2004
Beer and wine
$53.8
Insurance and real estate
$94.5
Auto dealers & services
$94.5
Financial
$99.8
Restuarants
$99.8
Media and advertising
$111.6
Retail
$112.9
Public trans., hotels, resorts
$128.6
Local services, amusements
$0.0
$203.4
$50.0
$100.0
$150.0
$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.
© 2007 by Prentice Hall
8-24
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.
© 2007 by Prentice Hall
8-25
This ad for a portable e-mail device is aimed at
busy travelers looking for convenience.
http://www.billboardinfo.com
© 2007 by Prentice Hall
8-26
Http://www.jessicamcclintock.com
© 2007 by Prentice Hall
8-27
TAB LE
Internet
8.5
Advantages
Disadvantages
1.
2.
3.
4.
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
© 2007 by Prentice Hall
8-28
TAB LE 8 . 6
Magazines
Advantages
Disadvantages
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
1.
2.
3.
4.
5.
Long lead time for ads
Little flexibility
High cost
High level of clutter
Declining readership
© 2007 by Prentice Hall
8-29
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%
Source: Http://www.adage.com (1999 figures)
© 2007 by Prentice Hall
8-30
TAB LE 8 . 7
Newspapers
Advantages
Disadvantages
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
1.
2.
3.
4.
5.
Major clutter
Short life span
Poor quality reproduction
Limited audience
Poor buying procedures
© 2007 by Prentice Hall
8-31
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
© 2007 by Prentice Hall
8-32
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
© 2007 by Prentice Hall
8-33
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.
© 2007 by Prentice Hall
8-34
TAB LE
8.8
Advertising Expenditures by Category
Magazines
Newspaper
Outdoor
Television
Radio
Internet
8.4%
41.3%
1.8%
37.0%
4.6%
6.9%
Automotive
11.9%
34.1%
1.8%
48.6%
2.4%
1.2%
Food & beverages
24.2%
0.6%
0.8%
70.6%
2.7%
1.0%
Airlines, hotels, car rental
23.1%
34.3%
5.6%
27.4%
2.5%
7.1%
2.6%
3.6%
5.0%
84.8%
3.6%
0.4%
Apparel
71.6%
1.1%
0.9%
22.9%
0.7%
2.8%
Total Domestic Ad Spending
20.9%
21.4%
2.2%
47.2%
3.0%
5.3%
Retail
Restaurants
Source: “100 Leading National Advertisers,” Advertising Age, (June 29, 2004), pp. 1-5.
© 2007 by Prentice Hall
8-35
FIGURE
8.5
Developing Logical Combinations of Media
© 2007 by Prentice Hall
8-36
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.
© 2007 by Prentice Hall
8-37
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.
© 2007 by Prentice Hall
8-38
Media Selection
International Markets
• Media importance varies.
• Media viewing habits vary across
countries.
• Media buying is different.
• Cultural mores vary.
© 2007 by Prentice Hall
8-39
FIGURE
Figure
8.8
8
.8
Media Usage in North America, Europe, and
Global
Media
Spending
Japan
© 2007 by Prentice Hall
8-40