Transcript Ch. 19 Advertising

19_2 Media Measurement and Rates
Media Measurements & Rates
Businesses need to reach as many
targeted customers as possible. It
is important to calculate costs and
measure media effectiveness to
reach a potential audience.
Media Measurement
Audience  The number of homes or people
exposed to an advertisement
Impression  A single exposure to an
advertising message
Frequency  The number of times an
audience sees or hears an advertisement
Cost per thousand (CPM)  the media cost
of exposing 1,000 readers or viewers to an
advertising impression
Media Measurements (cont.)
Print media = total number of readers
per issue (circulation vs. audience)
Broadcast Media
TV = Nielsen Media Research
(Feb., May, July, Nov.)
Top 10 for TV
Radio= Arbitron Company
II. Media Rates
Standard Rate & Data Service –
private company which publishes
rate cards for most major media
Audit Bureau of Circulations (ABC)
– verifies circulation numbers for
businesses
A. Newspaper Rates
Classified – pay by the word & grouped together into
specific categories
Display – cost is based on location in paper and space.
quotes are determined by one column inch
 1. Factors That Affect Rates
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run-of-paper rates or preferred locations
color
open rate/noncontract rate
yearly frequency contract vs. bulk space contract
 2. Comparing Rates
 Cost of the ad X 1,000/Circulation = CPM
B. Magazine Rates
circulation
type of readership
production techniques
 15-20% more for bleeds
 premium position
1. Rate Discounts
C. Online Rates
Banner
Rich-media enhanced banner
Button
Interstitial – show a webpage
prior to the desired page
D. Radio Rates
National, Network, Local
R-O-S Run of Schedule
E. Television Rates
 Prime Time
 7-10 p.m.
 Day
 9-4 p.m.
 Late Fringe
 10:35-1 a.m.
 Overnight
 1-5 a.m.
III. Promotional Budget Methods
1. Percentage of Sales
2. All you can Afford
3. Following the Competition
4. Objective & Task