Transcript 8b - media Newspaper

Chapter 10
Using Newspapers
Kleppner’s
Advertising
Procedure, 18e
Lane * King * Reichart
Learning Objectives_1
• Describe the changing character and role of
local and national newspapers in the marketing
mix.
• Explain the marketing of newspapers to
readers and advertisers.
• Identify the many categories of newspaper
advertising.
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Learning Objectives_2
• Describe the newspaper advertising planning
and buying process.
• Discuss the role of newspaper-distributed
supplements.
• Discuss the role of ethically oriented
newspapers and weeklies.
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Pros of Newspapers
• Upscale audience of adults 35 and older
• Flexibility in options
• Ability to measure response using tracking
techniques
• High credibility with readers
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Flexible Newspaper Options
•
•
•
•
Color
Large-space ads
Small-space ads
Timely insertion
schedules
• Coupons
• Selectivity in special
sections
• Targeted editions
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Cons of Newspapers
• High ratio of advertising content to news
content
• Average reading time of less than 30 minutes
• Newspaper circulation has fallen
• Advertising costs have risen
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Characteristics
• On an average weekday, read by over 50% of
adult population
• Readership reflects higher than average
income and education
• Annual ad revenues are almost $50 billion
• 84% of ad revenues come from local
advertisers
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Trends in Newspaper Publishing
• Circulation
• Advertising revenues
• Changing technology
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National Newspapers
•Published at least 5
days/week
•Printed copies sold,
distributed, and available
nationwide
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Exhibit 10.2 Top U.S. Daily Newspapers
by Circulation
• USA Today
• Wall Street Journal
• The New York
Times
• Los Angeles Times
• The Washington
Post
• Daily News
•
•
•
•
•
•
•
New York Post
Chicago Tribune
Houston Chronicle
The Arizona Republic
The Denver Post
Newsday
The Dallas Morning
News
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Marketing Newspapers to Readers
• Maintain good circulation numbers
• Keep independent from marketing
•
•
•
•
departments
Go after opportunities in national advertising
View website as a distinct product
Market to new audience segments
Invest in research and explore ways to make
the Internet site complement the information
in the newspaper
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Marketing Newspapers to Advertisers
• Provide information about readership and paid
circulation
• Utilize the Newspaper Association of America
(NAA) to provide advertisers with a database of
which newspapers provide special editions,
targeted inserts, and other options
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Newspaper Association of America (NAA)
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Exhibit 10.3
Top Advertisers in Newspapers
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Exhibit 10.4 Most Believable
and Trustworthy Ad Sources
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Newspaper Advertising Strategy
Full coverage of newspaper’s circulation
Zoned preprints
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Exhibit 10.5 Preprinted Insert
• Less profitable than
ROP advertising
• Newspaper is simply
delivery device
• Shrinking “news
hole” may change
character of
newspaper
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Zoning
• Zoning is the newspaper practice of offering
advertisers partial coverage of a market,
often accomplished with weekly inserts
distributed to certain sections of that market.
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Total Market Coverage
Weekly delivery of a nonsubscriber
supplement carrying mostly advertisements
Using newspaper-supported
direct mail to nonsubscription
Delivering the newspaper free
to all households once a week
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Categories of Newspaper Advertising
• Classified advertising is found in columns
so labeled, and published in sections of a
newspaper or magazine that are set aside for
certain classes of goods or services
• Display is all the nonclassified advertising in
a newspaper
Type
% of Total
Classified
26.4%
Local
49.6%
National
15.8%
Online
8.2%
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Local Display Advertising
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National Newspaper Advertising
• Approximately 16% of all newspaper
advertising revenue
• National advertisers rely on Standard
Advertising Units (SAU) to place ads in
different newspapers.
• National advertisers usually pay a price
premium over local advertisers.
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Exhibit 10.8 SAUs
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Cooperative Advertising
• Cooperative advertising is joint promotion
of a national advertiser (manufacturer) and a
local retail outlet on behalf of the
manufacturer’s product on sale in the retail
store.
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The Rate Structure
• Flat rate: a uniform charge for space
• Open rate: the highest rate at which
discounts are placed
• Bulk discounts: savings based on ad
volume
• ROP and preferred position rates: savings
or premiums based on ad location
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Comparing Costs Using CPM
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Space Contracts
• The short rate is the balance advertisers
have to pay if they estimated that they would
run more advertisements in a year than they
did and entered a contract to pay at a
favorable rate
• A rebate is the amount owed to an advertiser
by a medium when the advertiser qualifies for
a higher space discount
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Audit Bureau of Circulation (ABC) Reports
• Total paid circulation
• Amount of circulation in city zone, retail
trading zone, and other areas
• Number of papers sold at newsstands
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Newspaper-Distributed
Magazine Supplements
• Magazines
• Comics
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Ethnic and Foreign Language Press
• Exhibit 10.2 The Spanish version of this ad can
run in Spanish-language newspapers
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Weekly Newspapers
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For Discussion
• What has caused the erosion of local
newspaper advertising bases?
• What are the primary advantages of
newspaper magazine supplements?
• What are the two biggest problems facing
newspapers seeking national advertising?
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