Transcript File - School of Business Mrs. Kelly @ SHSE

Think and Answer Now
If you were to introduce a
new product for your
company, which form of
advertising would you
choose?
Explain why.
Read main idea on slide 3
Objective
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
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?
2. Can the desired customers be targeted with the medium?
3. Will the medium get the desired response rate?
Think and Answer on your Do Now sheet
What advantages do print and
cyber ads share?
Turn in your HW if you were
Absent last week
If you were absent turn in last
weeks Do Now sheet
Final
Exam
1/22
What advantages do print and cyber ads share?
Print and cyber ads are high quality, full color,
and sent directly to consumers.
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 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
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
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
Here is the formula:
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?
2. Name the four components of media
measurement.
audience, impression, frequency, and cost per
thousand (CPM)
3. Define media rate or advertising rate.
The amount of money it costs to display or
broadcast an ad.