Transcript Media Measurement and Rates

MEDIA
MEASUREMENT
AND RATES
Chapter 14.2
Introduction to Business and Marketing
Objectives



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.
Media Planning
Media planning can help a business
project the desired image to the
target market.
Market 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?
Advertising Agencies
Hiring an advertising agency can be an
effective way to develop ads.
An advertising agency can help a business
develop an ad campaign.
Media Measurement
Media planners are concerned with

the correct medium to use

its costs

its effectiveness
Media planners want their ads to
reach the correct audience
Media Measurement
Two media measurements are
impression and frequency.
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.”
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.
Factors Affecting Media Rates
The size of an ad
Where an
ad is placed
When an ad
appears
Factors Affecting
Media Rates
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.
Magazine and newspaper ads are sold by the
inch on a page.
Print Media Ad Rates
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).
Internet Ad Rates
The cost of Internet
advertising is based on:

Type

Size

Ad
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Volume of monthly
page views