Transcript ITB_14_2

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Read to Learn
• List the components of media measurement.
• Identify how advertising costs are measured.
• Describe how media rates are determined.
The Main Idea
Businesses need to reach as many targeted
customers as possible. Many companies do this by
advertising. It is important to calculate ad costs and
measure media effectiveness to best reach a
potential audience.
Key Concepts
• Media Planning
• Media Measurement
• Media Rates
Key Term
media
planning
the process of selecting advertising
media and deciding the time and
space in which the ads should appear
a business that specializes in
advertising
developing ads and ad campaigns for
agency
its clients
Key Term
ad
campaign
a series of ad messages that share a
single idea and theme
audience
the number of homes or people
exposed to an ad
Key Term
impression
a single exposure to an advertising
message
frequency
the number of times an audience
sees or hears an ad
Key Term
cost per
thousand
(CPM)
the media cost of exposing 1,000
readers or viewers to an advertising
impression
prime
time
the time period when the network TV
or radio audience is the largest
Media Planning
Media planning can
help a business project
the desired image to
the target market.
media planning
the process of selecting
advertising media and
deciding the time and
space in which ads should
appear
Graphic Organizer
Media Planning Questions
1. Can the medium present the product or service and the
appropriate business image?
1. Can the desired customers be targeted with the medium?
1. Will the medium get the desired response rate?
Advertising Agencies
Hiring an advertising
agency can be an
effective way to
develop ads.
advertising agency
a business that specializes
in developing ads and ad
campaigns for its clients
Advertising Agencies
An advertising agency
can help a business
develop an ad
campaign.
ad campaign
a series of ad messages
that share a single idea
and theme
Media Measurement
Media planners are concerned with the correct
medium to use, its costs, and its effectiveness.
Media Measurement
Media planners want
their ads to reach the
correct audience.
audience
the number of people
exposed to an ad
Media Measurement
Two media
measurements are
impression and
frequency.
impression
a single exposure to an
advertising message
frequency
the number of times an
audience sees or hears an
ad
Media Measurement
Cost per thousand
(CPM) is related to the
number of people that
read or see an ad.
The “M” in CPM comes from
the word mille, which is
Latin for “thousand.”
cost per thousand (CPM)
the media cost of exposing
1,000 readers or viewers to
an advertising impression
Media Audiences
TV audience measurement is based on diaries
and viewer data collected by Nielsen Media
Research Inc.®
Arbitron Inc.® uses listener diaries to measure
radio audiences in more than 260 markets.
Media Rates
Advertising uses a set formula that is defined
in terms of time or space.
A media rate or advertising rate is the amount
of money it costs to display or broadcast an
ad.
Graphic Organizer
The size of an ad
Where an
ad is placed
Factors Affecting
Media Rates
When an ad
appears
The number
of people an ad
reaches
How often an
ad appears
Ad Campaigns That Fail
Taco Bell used to run ads featuring a Chihuahua
that said “You quiero Taco Bell” (“I want Taco
Bell”). The commercials were so popular that the
dog’s image was put on T-shirts, window decals,
and toys. After a while, the company determined
that the ads did not lead to more sales.
Print Media Ad Rates
Ad rates for newspapers and magazines are
based on circulation.
Circulation is the number of people who buy a
publication, and audience, the number of
readers per issue.
Print Media Ad Rates
Magazine and newspaper ads are sold by the
inch on a page.
Graphic Organizer
If a newspaper
quotes a column
inch rate, multiply
the number of
inches by the
number of columns.
Then multiply the
total column inches
by the rate.
A column inch is one column wide by
one inch deep
Rate for a column inch is $17
You want an ad that measures four
inches long by three columns wide
$17 X 4 inches X 3 Columns = $204
Print Media Ad Rates
Magazine rates are based on:
• Circulation
• The type of readership
• Production techniques
• Position (prime positions are more costly)
Broadcast Media Ad Rates
Broadcast media ad rates depend on:
• The size of the audience
• The reach of the station
• The time of the day
Broadcast Media Ad Rates
For TV, prime time is
between 7 PM and
11 PM.
For radio, prime time
is the morning or
afternoon hours
(drive time).
prime time
the time period when the
network TV or radio
audience is the largest
Internet Ad Rates
The cost of Internet advertising is based on:
• Type
• Size
• Ad
• Volume of monthly page views
1. What are the three basic questions
advertisers must address in media planning?
Can the medium present the product or service
and the appropriate business image? Can the
desired customers be targeted? Will the
medium get the desired response rate?
1. Name the four components of media
measurement.
audience, impression, frequency, and cost per
thousand (CPM)
1. Define media rate or advertising rate.
The amount of money it costs to display or
broadcast an ad.
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