Transcript Class 16.1

TV Guide
• What does that say:
– About magazines?
– About television?
8-1
ABC, CBS, NBC Share
• 1987: 75%
• 2006: 36%
• Why?
8-2
Somebody’s Lying!
• Page 260: “One study, for example, found
that radio listeners are far less likely to
change the dial during ads than are
television viewers [8%]”
• Page 268: “CBS says that the typical drop
during a normal show is approximately
5%”
8-3
Page 263
• “The price of a 30-second ad has
increased even as the size of the audience
has decreased”
• Why?
8-4
Introducing a critical Concept
•
•
•
•
Meet the CPM
Cost/AudienceX1000
Cost per thousand
Television has the lowest CPM of any
media by far: it is often measured in
pennies.
• The most expensive medium is also the
most efficient.
• A penny’s worth of Ivory liquid!
8-5
Concerns and New
Developments in TV
•
•
•
•
•
Mass vs. niche
Efficiency vs. wastage vs. narrowcasting
Pod placement
Engagement guarantees
Minute-by-minute ratings
8-6
The Core Concepts
• Reach: % of audience exposed at least
once.
• Frequency: # of times a person sees it, on
average.
• Effective reach: % of people who’ve seen
it 3+ times (or more).
• Frequency distribution: Exactly how
many see how often.
8-7
Back to the Future
The Wonderful World of Disney
Mutual of Omaha's Wild Kingdom
8-8
• Bewitched Chevrolet
• Bewitched Quaker
8-9
Absolute
8-10
Product Placement
8-11
High points (low points?)
in product placement
• http://www.ew.com/ew/article/0,,2021522
5,00.html
8-12
Higher Levels of Engagement
Experiential Media
8-13
Media Industry Trends
• Engagement
– The captivating quality of media
to grab and hold attention.
• Brand Touch Points
– All the various ways consumers
come in touch with a brand.
Video Snippet
Hasbro sends one cohesive
message through several
media to drive sales.
8-14
Print Media Characteristics
• Ads in newspapers, magazines, brochures,
posters, outdoor
• More information, richer imagery, and
longer messages than broadcast
• Often used to generate cognitive responses
• More flexible, less fleeting, and more
engaging when targeted to special interest
audiences
• Can engage the senses of sight, touch, and
smell
8-15
Newspaper Basics
• Newspaper’s primary function is news, making it
appropriate for ads that announce sales, events, or
other news.
• Readership is declining, especially among younger
people.
• Newspapers are a local, mass medium.
• Market selectivity allows newspapers to target
specific consumer groups.
Principle:
A basic principle of newspaper publishing
is that people read newspapers as much for the ads as
they do for the news stories.
8-16
Newspaper:
Frequency of Publication
• Dailies
– About 1,500 dailies in the United States, usually
published in cities and larger towns.
• Weeklies
– About 6,700 serving towns, suburbs, and smaller cities.
• Sunday editions
– Approximately 30% of dailies and a few weeklies also
publish Sunday editions.
• Business or organization newspapers
– May be published weekly, monthly, quarterly,
bimonthly (every other month), or semimonthly (twice
a month).
8-17
Newspaper: Format and Size
• Broadsheet
– Standard size generally 22 inches deep and
14 inches wide with eight columns.
• Tabloid
– Half the size of a broadsheet with five or six
2-inch columns.
8-18
Types of Newspaper Advertising
• National vs. Local
• Classified
– Advertising by individuals to sell their personal
goods and advertising by local businesses.
• Display
– Any size, placed anywhere except editorial section.
– Run-of-paper (can run anywhere) or preferredposition (select sections where ad runs).
• Supplements
– Usually independently published, syndicated,
magazine-style publications that are sold to
newspapers and inserted on Sunday.
– Free-standing inserts are preprinted advertisements,
such as the grocery ads, that are inserted into the
newspaper for a fee.
8-19
Newspaper Industry Trends
• Readership is
declining, particularly
among young people.
• Newspaper production
costs are increasing.
• Internet delivery is
becoming a growth
area for the industry.
Visit the
Site
– Stories are delivered
through web phones,
pagers, emails, Palm
Pilots, Blackberries.
8-20
Magazine Basics
• Over 92% of all U.S. adults read one magazine per
month, spending 44 minutes per issue.
• Quality of reproduction is their greatest strength.
• Over half of all new magazines fail.
• Most magazines focus on niche markets related to
hobbies, sports, business, and professions.
• Zines, online versions of traditional magazines,
represent the greatest growth area.
Principle:
If you want to start a successful magazine,
create a special-interest publication aimed at
a narrow or niche audience.
8-21
Table 8.2
Top 20 Magazine Advertising Leaders
(ranked by total U.S. advertising and circulation gross revenues in 2005)
Rank
05
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
Business Week
Vogue
Forbes
The New York Times Magazine
Gross Ad Revenue
$ Mil
% change
$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.
8-22
Types of Magazines
• Consumer Magazines
– Aimed at consumers who buy
products for personal use.
• Business Magazines
– Trade papers are aimed at retailers,
wholesalers, and other distributors;
e.g., Chain Store Age
– Industrial magazines are aimed at
manufacturers; e.g., Concrete
Construction.
– Professional magazines are aimed
at physicians, lawyers, and other
professionals; e.g., National Law
Review, MediaWeek.
– Farm magazines are aimed at those
working in agriculture; e.g., Farm
Journal and Feed and Grain.
8-23
Classifications of Magazines
• Vertical vs. horizontal publications
– Vertical: contains stories about and info about an industry
– Horizontal: deals with business functions across industries
• Geography
– National, regional editions (e.g., Los Angeles Magazine,
Southern Living’s southwestern edition zoned editions of
national magazines)
• Demographics
– Age, income, occupation, etc. (e.g., Newsweek’s college
edition and Time’s editions for business executives and
doctors)
• Editorial Content
– General (Reader’s Digest), women’s (Family Circle),
shelter (House Beautiful), business (Forbes), and special
interest (Ski).
8-24
Magazine Advertising: Format
• Premium positions
– Back cover, inside covers
• Double-page spread
– Two ad pages facing each other
• Bleed page
– Color goes to edge of the page
• Gatefold
– More than two connected pages
that fold in on themselves
• Special ad page or section that looks
like editorial
• Multiple-page photo essay
• Fractional page space
– vertical or horizontal half-page,
half-page double spread
8-25
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
statements about magazine 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.
8-26
Magazine Advertising Trends
• Product placement, although opposed by the The
Magazine Editors Association, will happen.
• Online technology has led to online magazines.
• Traditional formats provide interesting writing
that’s portable.
• The questions is: What works best for the media
strategy for a particular target audience?
8-27
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.
8-28
Out-of-Home Advertising
• OOH includes billboards, hot-air balloons, buses,
posters on walls, kiosks, blimps, airport displays.
• Ranks second to the Internet in terms of growth.
• It’s situational: can target specific people at a specific
time when they’re most interested.
8-29
Out-of-Home Advertising:
Outdoor Advertising
• Outdoor includes street and highway advertising,
plus posters in public locations.
• Two primary uses of outdoor:
– As reminder advertising (e.g., McDonald’s)
– As a directional (e.g., hotels, gas stations)
8-30
Out-of-Home Advertising:
Outdoor Advertising
• Size and Format
– Printed poster bulletin—posted
like wallpaper
– Painted bulletin — on signs,
buildings, roofs, mountains
– Extensions/cutouts — go
beyond border of rectangle
– Digital displays — use wireless
technology to change message
– Message is about 8 to 10 words
• Buying outdoor
– Sold in “showings”
– Based on traffic counts
– Boards are rented for 30 days
8-31
Out-of-Home Advertising
• On-premise signs
– Identify a store
– Directional and
informational
– Help locate businesses
• Posters
– Used on buildings, kiosks,
vehicles, and bulletin
boards
– Usually have few words
– Kiosks are designed for
posters
• Transit advertising
– Ads on buses, taxis, and
moving billboards
– Interior and exterior
Replace photo
8-32
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.
8-33
Using Print and Out-of-Home
• Use newspaper for announcements of something
new, or for targeting local markets.
• Use magazines for targeting people with special
interests; they’re also good for brand image or
longer explanations.
• Use outdoor for people on the move to provide
directional information; also good for brand
reminders.
• Use directories to catch people when they’re
shopping.
8-34