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Media Planning and Buying




M. Larry Litwin, APR, Fellow PRSA
[Portions from Advertising Principles & Practices by Wells]




                                                              11-1




                Taken from…




                                                              11-2




                                                                     1
Advertising Principles & Practices

• William Wells
• John Burnett
• Sandra Moriarty




                                  11-3




 Portions taken from…




                                  11-4




                                         2
You enter to learn

You leave to serve



                     11-5




                     11-6




                            3
PR Is...
•   “This is who we are;
•   What we think about ourselves;
•   What we want to do; and
•   Why we deserve your support.”




                                     11-7




           Five Major Media

•   Print
•   Broadcast
•   Internet
•   Face-to-Face
•   Special Events




                                     11-8




                                            4
Defining Modern Advertising
• Paid persuasive
  communication
• Uses
  nonpersonal
  mass media to
  reach broad
  audiences
• Connects an
  identified
  sponsor with a
  target audience
                                       11-9




     Six Basic Components
1.   Paid
2.   Non-personal communication
3.   Sponsor is identified
4.   Using mass media
5.   Tries to persuade or influence
6.   Reaches large audience



                                      11-10




                                              5
Advertising Defined


    Paid, non-personal
    communication from an
    identified sponsor, using mass
    media to persuade or influence
    an audience.



                                         11-11




    Public Relations 101
• Management and counseling function
• Enables organizations to build and
  maintain relationships
• Through an understanding of audience
  attitudes, opinions and values
• Planned, deliberate and two-way
• Conscience of organization
• Overseer of brand/reputation
• Relationship management


                                         11-12




                                                 6
Advertising 101
•   Paid
•   Non-personal communication
•   From identified sponsor
•   Using mass media
•   To persuade or influence
•   Audience
            (Paid – Controlled)

                                  11-13




      Marketing 101

Determine what people need (and
    want) and give it to them.




                                  11-14




                                          7
Marketing

• The exchange of goods and
  services from manufacturer to
  consumer.
• Strategies that employ the
  various elements of the
  marketing mix to achieve
  marketing objectives.
                                  11-15




 Marketing Mix – IMC

• A plan that identifies the most
  effective combination of
  promotional activities (IMC).
• The goal is to achieve synergy.



                                  11-16




                                          8
Media Mix Selection
• Using a variety of
  media to get your
  message out to
  customers
• Media selection is
  based on message
  needs




                                                  11-17




     Synergy’s Parts
• Advertising            • Product itself*
• (Sales) Promotion*     • Packaging*
• Public Relations*      • Policy*
• Direct Marketing       • Politics*
• Cause Marketing        • Mind Share
• Sponsorship                (Brainstorming –
  (Partnering)                Intellectual
  Marketing
                           Property)
• Positioning (Place)*
                         • Brand Identity
• Personal Selling*
                         • Interactive
• Price*
                         * Litwin’s 9 Ps of Marketing

                                                  11-18




                                                          9
M A C T ria d
                             M

                           +P+T
                   A                    C
     M = M e s s a g e A = A u d ie n ce C = C h a n n e l
                  P = P u rp o se T = T im in g




                                                             11-19




    MAC Triad Plus cont.
• Informization
  – Disseminating information (message) to
    target audience through the proper
    channel at the best possible time.




                                                             11-20




                                                                     10
Advertising is Synergy




                             11-21




      Execution
            • Effective ads
              adhere to the
              highest production
              values in the
              industry
            • Clients demand
              the best
              production the
              budget allows


                             11-22




                                     11
The Functions of
             Marketing
    • Builds awareness of products and
      brands
    • Creates a brand image
    • Provides product and brand information
    • Persuades people
    • Provides incentives to take action
    • Provides brand reminders
    • Reinforces past purchases and brand
      experiences
                                          11-23




       Full-Service Agency
            Major Functions

•   Account Management
•   Creative Services
•   Research
•   Media Planning and Buying


                                          11-24




                                                  12
Federal Trade
               Commission




                              11-25




    11 Types of Advertising
•   Brand
•   Retail or Local
•   Directory
•   Direct-Response
•   Business-to-Business
•   Corporate
•   Institutional (Product)
•   Recruitment
•   Political
•   Issue (Advocacy)
•   Public Service
    (Charity/Non-profit)

                              11-26




                                      13
26 Advertising Mechanisms
      or Techniques
•   Co-op
•   Per Inquiry
•   Tie-in
•   Piggyback
•   Competitor
•   Product Placement
•   Product Integration
•   Silent Publicity
•   Advertorial
•   Infomercial
•   Endorsement
•   Testimonial
•   Informational

                               11-27




26 Advertising Mechanisms
   or Techniques (more)
• Partnering
• Cause-Related Marketing
• Co-authoring
• Co-branding
• Interactive
• Scent/Aroma Marketing
• Virtual
• Specialty
• Street Marketing
• Viral Marketing (Word of
  Mouth)
• E-viral Marketing (Word of
  Mouse)
• Promotainment
• House (Promo)

                               11-28




                                       14
What Makes an Ad Effective?
1.   Gets your attention
2.   Delivers the
     message
3.   Creates an
     impression for a
     product or brand
4.   Influences people
     to respond
5.   Separates the
     product or brand
     from the
     competition

                            11-29




              Key Players
• Advertiser

• Agency

• Media

• Supplier/Vendor

• Target Audiences
                            11-30




                                    15
Why Hire an Agency?
    Hiring an agency can result in
    several benefits:
•   Offer objective advice
•   Draw on the collective experience
    and training of its staff
•   Provide people and management
    skills to accomplish advertising
    objectives
•   Provide supportive environment for
    professional advice               11-31




     The Aperture Concept
• The goal of the media planner is to
  expose the target audience to the
  message at the critical point when
  the consumer is receptive to the
  brand message.




                                        11-32




                                                16
Aperture Concept in
       Media Planning




                           11-33




The Media
  Plan
• A written
  document that
  summarizes the
  objectives and
  strategies
  pertinent to the
  placement of a
  company’s
  advertising
  messages.
                           11-34




                                   17
The Media Planning Process




                        11-35




     Creative Brief




                        11-36




                                18
The Central Role of
     Media Research




                          11-37




       Media Objectives
• Exposure
• Gross Ratings
  Points
• Reach
• Frequency
  – Average frequency
  – Frequency
    distribution
  – Effective
    frequency
                          11-38




                                  19
Media Strategies
 • Strategies are designed to deliver
   on the media objectives, to deliver
   the right level of exposure in
   terms of reach and frequency
  [Superior tactics cannot overcome
   a bad (business) strategy]



                                    11-39




 Target Audience Strategies
• Media use
• Geography
• Consumption
  patterns




                                    11-40




                                            20
Changes In Consumer Media Use
         (2001-2003)




                             11-41




WF of R: Buying Space and Time




                             11-42




                                     21
Consumer
Attitudes and
 Advertising
  Spending




                           Figure 11.5
                                         11-43




               Cost Efficiency
         Cost per thousand (CPM)
       Cost of message unit x 1,000
        Gross Impressions




            Cost per point (CPP)

           Cost of message unit
          Program or issue rating




                                         11-44




                                                 22
Scheduling Strategies
• Timing strategies
  – Duration: How long
  – Continuity: How often




     The Continuity Strategies of Pulsing and Flighting


                                                          11-45




              Media Buying
 • Buying is a complicated process
 • The American Association of
   Advertising Agencies (AAAA) lists
   no fewer than 21 elements in the
   authorization for a media buy




                                                          11-46




                                                                  23
Six Major Functions of a
     Media Buyer




                           11-47




Media Planning Changes and
        Challenges
• Unbundling media
  buying and
  planning
• Online media
  buying
• New forms of
  media research
  needed


                           11-48




                                   24
How Media Planning Fits
 in the Advertising Process
• Media planners have two main roles:
   – Analyzing the market, and
   – Evaluating media channel effectiveness.
• Media planning is the process of
  determining how to use time and space to
  achieve marketing objectives.
• One of these objectives is always to place
  the advertising message before a target
  audience using some type of media.

                                         11-49




 The Media Planning Process




                                         11-50




                                                 25
Sources of Information in
       Media Planning




                                                   11-51




    Setting Media Objectives
   The Basic Goals That Direct Media Strategy Typically
   Focus on:
          Whom to Advertise To


     Which Geographic Areas to Cover


            When to Advertise


What the Duration of the Campaign Should Be

What the Size or Length of the Ad Should Be
                                                   11-52




                                                           26
Finding Target Audiences and
      Sales Geography
    • Two major challenges face media
      planners searching for target audiences:
       – Discrepancies between the language of
         internal strategic research, and
       – Lack of reliable audience research for new
         media for advertising and sales promotion.
    • Sales geography is an important part of
      many advertising plans:
       – Sales are rarely consistent across
         geographic boundaries.
       – Affects which markets to advertise in and
         how much money to allocate to each
         geographic region.
                                                           11-53




    Timing and Duration
    • Media planners might have to juggle a number
      of variables to make correct timing decisions:
       – How often is product bought?
       – Whether it is used more in some months than in
         others?
       – Timing decisions relate to factors such as
         seasonality, holidays, days of the week, and time of
         day.
    • Duration (how long to advertise) depends on:
       – Schedule and advertising budget,
       – Consumer use cycle, and
       – Competitive strategies.


                                                           11-54




                                                                   27
Developing Media Strategies
   Target Market Strategies: New
    Technology of Measurement
   Retail Scanners       • Cash register scanners


                         • List of customers and their
Database Developments     various characteristics, stored
                          electronically.

                         • Determining the precise impact
Marketing Mix Modeling    of the media plan on product
                          sales.

  Internet Audience      • Who’s online and which sites
                          they are visiting may be
Measurement Problems      determined by number of hits,
                          unique visitors, visitors, or page
                          impressions.
                                                               11-55




        Geographic Strategies:
        Allocating Media Weight
       • Try to balance sales with advertising
         investment market by market.
       • Can help local business fight the power
         of national corporations by saturating
         community with advertising from local
         companies.
       • Planner’s ideal advertising allocation
         provides enough budget to meet each
         area’s sales objectives.
                                                               11-56




                                                                       28
Timing and Duration
                              Strategies
            Continuity
  $ Spent   Option




                             Campaign Time




                                                                   11-57




            Media Selection Procedures
       Reach
 Number of Different
People Exposed to the
      Message


    Frequency                                Factors to Consider
 Degree of Exposure
                                               When Selecting
     Repetition
                                              Advertising Media


 Cost Per Thousand
Efficiency of Selected
       Vehicles

                                                                   11-58




                                                                           29
Audience Measures Used
          in Media Planning
                        Impressions
             Measure of the Size of the Audience


    Gross Impressions
                                          Gross Values
   Audiences of All Media
                                     Number of People Viewing
 Vehicles Used in a Time Spot

                            Rating
                   Percentage of Exposure


                       Gross Rating Point
          Divide the Total Number of Impressions by Size
             of Target Population and Multiply by 100.
                                                                11-59




           Reach, Frequency and
              Media Planning
       Reach                            Frequency
  % of the Target                 Number of Times the
Population Exposed                 Target Population
 At Least Once to                   Is Exposed to the
  the Advertising                      Advertising
 Message During a                  Message During a
   Specific Time                      Specific Time
      Frame.                             Frame.
                                    Methods Include:
                                   Average Frequency
                                 Frequency Distribution



                                                                11-60




                                                                        30
Combining Reach and
     Frequency Goals
• Reach of an audience is not sufficient
  measure of an advertising’s schedule’s
  strength.
• For anyone to be considered part of the
  reached audience, he or she must have
  been exposed more than once.
• This theory combines reach and
  frequency elements into one factor
  known as effective frequency.

                                                     11-61




  How to Calculate CPMs
• Magazines. An issue of You magazine
  has 10,460,000 readers who could be
  considered a target audience. The
  advertising unit is a four-color page and
  its rate is $42,000. The CPM is:
CPM = Cost of page or fractional page unit x 1,000
             Target audience readers
          = $42,000 x 1,000 = $4.02
             10,460,000
  Media planners try to select the media
     that will expose the largest target
   audience for the lowest possible cost.
                                                     11-62




                                                             31
Media Buyers’ Special Skills
         • Negotiation: Art of • Maintaining Plan
           a Buyer               Performance
             – Vehicle                     – Monitoring
               Performance                   Audience Research
             – Unit Costs                  – Scheduling and
             – Preferred Positions           Technical
             – Extra Support                 Problems
                                                • Program
               Offers
                                                  Preemptions
                                                • Missed Closings
                                                • Technical problems


                                                                    11-63




                Staging a Media Plan
                 A Media Plan is a Written Document that
               Summarizes the Recommended Objectives,
           Strategies, and Tactics Pertinent to the Placement of
                   a Company’s Advertising Messages.
  Background and         Discusses Media Options, Opportunities
  Situation Analysis             and Target Audience.

 Media Objectives &      Goal or Task that Media Can Accomplish
Aperture Opportunities     Based on Aperture Opportunities.

     Strategy:           Explains Why a Single Medium or Set of
 Selection of Media               Media is Appropriate.

                          Media Buyers Convert Objectives and
Flow Chart Scheduling
                          Select, Negotiate, & Contract for Media
     & Budgeting                          Space.

                                                                    11-64




                                                                            32
A Sample Media Plan for
         Pizza Hut




                                    11-65




   A Sample Media Plan for
         Pizza Hut
• Situation and Consumer Analysis
• Media Objectives and Aperture
  Strategies
• The Media Mix
• The Flowchart: Scheduling and
  Budgeting Allocation



                                    11-66




                                            33
A Sample Media Plan for
            Pizza Hut




       Pizza Hut Media Plan
                                                          11-67




  A Sample
 Media Plan
for Pizza Hut




                              Pizza Hut TV and Internet
                                                          11-68
                                  Media Strategies




                                                                  34
A Sample Media Plan for
            Pizza Hut




       Pizza Hut Media-Planning Template




                                                                      11-69




     Print Ad Components
                  Headline:
    Words in the Leading Position of the Ad


                  Subheads:
Smaller Than the Headline, Larger Than the Copy


                Body Copy:
      The Main Text Portion of a Print Ad


                Visual Elements:
    Illustrations Such As Drawings or Photos


                  Layout:
 How Elements Are Blended Into a Finished Ad
                                                                      11-70
              © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                              35
Print Ad Layout

                        Arrangement of the Elements on the
Format                  Printed Page


                        Expressed in Columns, Column Inches
 Size                   or Portions of a Page


                        Black & White or Two-, Three-, or Four-
Color                   color Printing


White                   Marginal and Intermediate Space That
Space                   Remains Unprinted



                                                                                            11-71
                    © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




Top 10 Jingles of the Century
        Company                                                             Jingle
    1. McDonald’s                                   You deserve a break today
    2. U.S. Army                                    Be all that you can be
    3. Pepsi Cola                                   Pepsi Cola Hits the Spot
    4. Campbell’s Soup                              M’m, Good M’m Good
    5. Chevrolet                                    See the USA in your Chevrolet
    6. Oscar Mayer                                  I wish I was an Oscar Mayer Wiener
    7. Wrigley’s gum                                Double your pleasure, double your fun
    8. Winston                                      Winston tastes good like a cigarette should
    9. Coca-Cola                                    It’s the real thing
    10. Brylcreem                                   Brylcreem—A little dab’ll do ya




                                                                                            11-72
                    © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                                                    36
Production Stages for TV Commercials



                               All work before actual
Preproduction
                               shooting, recording

                               Period of filming, taping, or
  Production
                               recording

                               Work after spot is filmed or
Postproduction
                               recorded




                                                                                      11-73
                 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




          Pre-production Tasks

                       Select a Director


                                                                           Choose
Preproduction
                                                                         Production
   Meeting
                                                                         Company


                   Preproduction

 Production
                                                                          Bidding
 Timetable


                        Cost Estimation
                          and Timing

                                                                                      11-74
                 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                                              37
Production Tasks


                          Production




Location Versus       Night/weekend                                           Talent
  Set Shoots              Shoots                                          Arrangements



                                                                                         11-75
                  © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




        Post-production Tasks

              Editing                                   Processing


 Release/
                                                                           Sound Effects
 Shipping
                   Postproduction
                                                                            Audio/Video
Duplicating
                                                                              Mixing


         Client/agency
                                                            Opticals
            Approval
                                                                                         11-76
                  © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                                                 38
Evaluation Guidelines for Creative Output

Consistent With Brand’s Marketing Objectives?

 Consistent With Brand’s Advertising Objectives?

   Consistent With Creative Strategy, Objectives?

     Does It Communicate What It’s Suppose to?

      Approach Appropriate to Target Audience?

        Communicate Clear, Convincing Message?

            Does Execution Overwhelm the Message?

             Appropriate to the Media Environment?

               Is the Advertisement Truthful and Tasteful?
                                                                            11-77
                    © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




               Media Terminology
  Media           A series of decisions involving the delivery
 Planning         of messages to audiences


  Media           Goals to be attained by the media strategy
Objectives        and program


  Media           Decisions on how the media objectives can
 Strategy         be attained


                  The various categories of delivery systems,
  Media
                  including broadcast and print media


Broadcast         Either radio or television network or local
  Media           station broadcasts
                                                                            11-78
                    © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                                    39
Media Terminology
 Print       Publications such as newspapers,
 Media       magazines, direct mail, outdoor, etc.


 Media       The specific carrier within a medium
 Vehicle     category


             Number of different audience members
 Reach
             exposed at least once in a given time period


             The potential audience that might receive
Coverage
             the message through the vehicle


             The number of times the receiver is exposed
Frequency
             to the media vehicle in a specific time period
                                                                       11-79
               © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




      The Media
        Plan
      • A written
        document that
        summarizes the
        objectives and
        strategies
        pertinent to the
        placement of a
        company’s
        advertising
        messages.
                                                                       11-80




                                                                               40
Developing the Media Plan
       Analyze the Market


    Establish Media Objectives


     Develop Media Strategy


    Implement Media Strategy


      Evaluate Performance
                                                                 11-81
         © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




             Creative Brief




                                                                 11-82




                                                                         41
Developing the Media Plan
    Situation                     Marketing                                        Creative
    Analysis                    Strategy Plan                                   Strategy Plan


                     Setting Media Objectives

                  Determining Media Strategy

                 Selecting Broad Media Classes

                 Selecting Media Within Class


Media Use Decision       Media Use Decision                                   Media Use Decision
  — Broadcast                 — Print                                          — Other Media

                                                                                                11-83
                      © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




    Brand and Category Analysis


          Brand Development Index

                Percentage of brand to
                total U.S. sales in market
  BDI =                                                                               X 100
                Percentage of total U.S.
                population in market




                                                                                                11-84
                      © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                                                        42
Brand and Category Analysis


    Category Development Index

        Percentage of total product
        category sales in market
CDI =                                                                    X 100
        Percentage of total U.S.
        population in market




                                                                                 11-85
              © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




 Determining Relative Cost of Media-Print




    Cost per thousand (CPM)

            Cost of ad space
CPM =       (absolute cost)                                           X 1,000
            Circulation



                                                                                 11-86
              © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                                         43
Determining Relative Cost of Media-Broadcast




 Cost per rating point (CPRP)

           Cost of commercial time
CPRP =     Program rating




                                                                    11-87
            © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




          Insertion Order #1




                                                                    11-88




                                                                            44
Insertion Order #2




                     11-89




Insertion Order #3




                     11-90




                             45
Newspaper Pros and Cons
    Advantages                                                    Disadvantages
     High Coverage                                                           Short Life

       Low Cost                                                               Clutter

  Short Lead Time for                                          Low Attention Getting
      Placing Ads
  Ads Can Be Placed in                                    Poor Reproduction Quality
    Interest Sections

  Timely (Current Ads)                                   Selective Reader Exposure

Reader Controls Exposure

Can Be Used for Coupons
                                                                                          11-91
                     © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




   Newspaper Advantages and Drawbacks
    Advantages                                                    Disadvantages
                                                                   Production Quality
 Extensive Penetration
                                                                      May Be Low
                                                                        They Have a
       Flexibility
                                                                       Short Life Span
                                                                Not Demographically
 Geographic Selectivity
                                                                     Selective
                                                               Not Psychographically
Involvement, Acceptance
                                                                     Selective
                                                                    There's Heavy Ad
    Services Offered                                                  Competition

                                                         Potentially Poor Placement

                                                                 May Be Overlapping
                                                                     Circulation
                                                                                          11-92
                     © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                                                  46
Newspaper Classifications
                                                                   Daily
 Publication
 Frequency
                                                                 Weekly

                                                               National

    Type                                                 Special-Audience

                                                         Supplements

                                                              Standard
    Size
                                                                 Tabloid

                                               Ethnic, Religious, Etc.
Audience Type
                                            Business, Financial, Etc.
                                                                            11-93
               © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




Characteristics of Newspapers

    The Dominant Advertising Vehicle

      Account for 22% of Ad Dollars


     Over 1,500 Daily Papers in Print


   Dailies Read by About 60% of adults


           Main Community Medium

    Local Ads Provide Most of Revenue
                                                                            11-94
               © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                                    47
Unique Newspaper Features
                        Mass audience

               Cross-section of population

               Local geographic coverage

             Wide range of content, subjects

              Selective readership by area

              Timely coverage, daily issues

          Readership concentrated in time

               Permanent, durable record
                                                                              11-95
                   © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




        Newspaper Advertising
                                                      Local (Mostly Retail)

 Display Ads                                     General (Often National)

                                  Paid Reading Notices (Editorial Look)

                                         Small Items Arranged by Topic

Classified Ads                            Rates Based on Size, Duration

                                        Classified Display - Combination

                                           Legal Notices - Public Reports

Public Notices                         Notices by People, Organizations

                                                          Financial Reports
   Printed
                                    Prepared Separately by Advertisers
   Inserts
                                                                              11-96
                   © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                                      48
Newspaper Characteristics
                                 Read by Almost All Consumers


  Wide                            Read Daily in an Ordered Way
Audience
                                        Readers Look at Over 3/4
                                              of All Pages


   Few Limitations on Ad Size


  Spot and Full Color Available
                                                                            Offer
                                                                         Flexibility
    Many Shapes, Sizes,
     Paper, & Printing
                                                                                       11-97
                 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




            Rate Terminology

        Split Runs                                    Split Run Rates
    Preferred Position                             Differential Rates
       Color Rates                                    Insertion Rates
    Combination Rates                            Run-of-Paper [ROP]
       Open Rates                                         Short Rates
        Flat Rates                                      Earned Rates
      National Rates                                       Local Rates



           Terms of the Trade

                                                                                       11-98
                 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                                               49
Coverage Map – Major Radio Station




                                                                  11-99




Circulation Zones for a Major Newspaper




                                                                 11-100
         © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                          50
A Newspaper Promotes Its Various Sections




                                                                  11-101
          © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




Island Ads Break Through Clutter




                                                                  11-102
          © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                           51
Popper/Dot Whack/Sticky Note




                                                             11-103
     © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




Popper/Dot Whack/Sticky Note




                                                             11-104
     © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                      52
Popper/Dot Whack/Sticky Note




                          11-105




Popper/Dot Whack/Sticky Note




                          11-106




                                   53
Popper/Dot Whack/Sticky Note




                          11-107




Popper/Dot Whack/Sticky Note




                          11-108




                                   54
Inserts (FSIs) Help Marketers Reach Consumers




                                                                   11-109
           © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




Some Newspapers Offer Combination Rates




                                                                   11-110
           © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                            55
College Newspapers Are an
   Effective Way to Reach Students




                                                                                        11-111
                    © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




     Television Pros and Cons
   Advantages                                                    Disadvantages
   Mass Coverage                                                      Low Selectivity

     High Reach                                                  Short Message Life

Impact of Sight, Sound                                           High Absolute Cost
     and Motion

    High Prestige                                              High Production Cost

Low Cost Per Exposure                                                       Clutter

  Attention Getting

   Favorable Image
                                                                                        11-112
                    © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                                                 56
Radio Pros and Cons
     Advantages                                                  Disadvantages
     Local Coverage                                                         Audio Only

        Low Cost                                                             Clutter

     High Frequency                                           Low Attention Getting

         Flexible                                                   Fleeting Message

  Low Production Cost

Well-segmented Audience



                                                                                         11-113
                    © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




         Internet Pros and Cons
     Advantages                                                  Disadvantages
  User Selects Product                                               Limited Creative
      Information                                                      Capabilities
   User Attention and                                           Web snarl (Crowded
      Involvement                                                    Access)

 Interactive Relationship                                   Technology Limitations

                                                           Few Valid Measurement
 Direct Selling Potential
                                                                Techniques

Flexible Message Platform                                              Limited Reach




                                                                                         11-114
                    © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                                                  57
Direct Mail Pros and Cons
    Advantages                                                     Disadvantages
    High Selectivity                                            High Cost Per Contact

Reader Controls Exposure                                      Poor Image (Junk Mail)

High Information Content                                                        Clutter

    Repeat Exposure
     Opportunities




                                                                                           11-115
                      © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




         Outdoor Pros and Cons
    Advantages                                                     Disadvantages
    Location Specific                                              Sort Exposure Time

    High Repetition                                                           Short Ads

     Easily Noticed                                                           Poor Image

                                                                     Local Restrictions




                                                                                           11-116
                      © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                                                    58
Magazine Pros and Cons
    Advantages                                                    Disadvantages
                                                                  Long Lead Time for
 Segmentation Potential
                                                                    Ad Placement

  Quality Reproduction                                                       Visual Only

High Information Content                                             Lack of Flexibility

       Longevity

    Multiple Readers




                                                                                           11-117
                     © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




         Magazine Pros and Cons
    Advantages                                                    Disadvantages
       Selectivity                                                             Costs

  Reproduction Quality                                                  Limited Reach

   Creative Flexibility                                            Limited Frequency

      Permanence                                                      Long Lead Time

        Prestige                                                               Clutter

Receptivity, Involvement

        Services
                                                                                           11-118
                     © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                                                    59
Special Magazine Features

                        Bleed Pages


Island Halves                                                             Inserts




 Gate Folds                                                              Pop-Ups

                              Cover
                             Positions
                                                                                    11-119
                © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




    Magazine Circulation Concepts

                           Primary
                          Circulation

    Total                                                               Guaranteed
  Audience                                                              Circulation




 Controlled                                                             Circulation
 Circulation                                                            Verification

                          Pass-Along
                          Readership
                                                                                    11-120
                © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                                             60
The Future of Magazines
 Declining Ad Revenues


     Stronger Editorial Platforms


          Circulation Management


               Cross-Magazine and Media Deals
Trends,
Trends,                    Database Marketing

Trends…
                                        Advances in Technology


                                                    Electronic Delivery Methods

                                                                             11-121
               © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




 Consumer Magazines Target Specific Interests




                                                                             11-122
               © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                                      61
An Example of a Farm Publication




                                                                     11-123
             © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




Magazines Target Professions or Industries




                                                                     11-124
             © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                              62
Top-Selling Magazines: 2002




                                                                  11-125
          © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




Media Kits Provide Information on Readers




                                                                  11-126
          © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                           63
City Magazines Provide Geographic Targeting




                                                                    11-127
            © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




  Newsweek Offers Various Geographic Editions




                                                                    11-128
            © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                             64
Use of Various Media for Insight and Ideas




                                                                   11-129
           © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




Consumers Rely on Magazines for Information




                                                                   11-130
           © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                            65
Pop-Ups Grab Attention




                                                                   11-131
           © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




Quarter Page Ads Can Extend a Media Budget




                                                                   11-132
           © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                            66
Media Research Guides Advertisers




                                      +




                                                                     11-133
             © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




 Media Kits Provide Advertisers With Information




                                                                     11-134
             © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                              67
A New Breed of Business Publication




                                                                11-135
        © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




   Magazines Go Online




                                                                11-136
        © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin




                                                                         68
Questions ???
M. Larry Litwin, APR, Fellow PRSA
    larry@larrylitwin.com
    www.larrylitwin.com

                              © 2009




                                11-137




                                         69

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Media Planning Buying Handout 2 Per Page Spring 2009

  • 1. Media Planning and Buying M. Larry Litwin, APR, Fellow PRSA [Portions from Advertising Principles & Practices by Wells] 11-1 Taken from… 11-2 1
  • 2. Advertising Principles & Practices • William Wells • John Burnett • Sandra Moriarty 11-3 Portions taken from… 11-4 2
  • 3. You enter to learn You leave to serve 11-5 11-6 3
  • 4. PR Is... • “This is who we are; • What we think about ourselves; • What we want to do; and • Why we deserve your support.” 11-7 Five Major Media • Print • Broadcast • Internet • Face-to-Face • Special Events 11-8 4
  • 5. Defining Modern Advertising • Paid persuasive communication • Uses nonpersonal mass media to reach broad audiences • Connects an identified sponsor with a target audience 11-9 Six Basic Components 1. Paid 2. Non-personal communication 3. Sponsor is identified 4. Using mass media 5. Tries to persuade or influence 6. Reaches large audience 11-10 5
  • 6. Advertising Defined Paid, non-personal communication from an identified sponsor, using mass media to persuade or influence an audience. 11-11 Public Relations 101 • Management and counseling function • Enables organizations to build and maintain relationships • Through an understanding of audience attitudes, opinions and values • Planned, deliberate and two-way • Conscience of organization • Overseer of brand/reputation • Relationship management 11-12 6
  • 7. Advertising 101 • Paid • Non-personal communication • From identified sponsor • Using mass media • To persuade or influence • Audience (Paid – Controlled) 11-13 Marketing 101 Determine what people need (and want) and give it to them. 11-14 7
  • 8. Marketing • The exchange of goods and services from manufacturer to consumer. • Strategies that employ the various elements of the marketing mix to achieve marketing objectives. 11-15 Marketing Mix – IMC • A plan that identifies the most effective combination of promotional activities (IMC). • The goal is to achieve synergy. 11-16 8
  • 9. Media Mix Selection • Using a variety of media to get your message out to customers • Media selection is based on message needs 11-17 Synergy’s Parts • Advertising • Product itself* • (Sales) Promotion* • Packaging* • Public Relations* • Policy* • Direct Marketing • Politics* • Cause Marketing • Mind Share • Sponsorship (Brainstorming – (Partnering) Intellectual Marketing Property) • Positioning (Place)* • Brand Identity • Personal Selling* • Interactive • Price* * Litwin’s 9 Ps of Marketing 11-18 9
  • 10. M A C T ria d M +P+T A C M = M e s s a g e A = A u d ie n ce C = C h a n n e l P = P u rp o se T = T im in g 11-19 MAC Triad Plus cont. • Informization – Disseminating information (message) to target audience through the proper channel at the best possible time. 11-20 10
  • 11. Advertising is Synergy 11-21 Execution • Effective ads adhere to the highest production values in the industry • Clients demand the best production the budget allows 11-22 11
  • 12. The Functions of Marketing • Builds awareness of products and brands • Creates a brand image • Provides product and brand information • Persuades people • Provides incentives to take action • Provides brand reminders • Reinforces past purchases and brand experiences 11-23 Full-Service Agency Major Functions • Account Management • Creative Services • Research • Media Planning and Buying 11-24 12
  • 13. Federal Trade Commission 11-25 11 Types of Advertising • Brand • Retail or Local • Directory • Direct-Response • Business-to-Business • Corporate • Institutional (Product) • Recruitment • Political • Issue (Advocacy) • Public Service (Charity/Non-profit) 11-26 13
  • 14. 26 Advertising Mechanisms or Techniques • Co-op • Per Inquiry • Tie-in • Piggyback • Competitor • Product Placement • Product Integration • Silent Publicity • Advertorial • Infomercial • Endorsement • Testimonial • Informational 11-27 26 Advertising Mechanisms or Techniques (more) • Partnering • Cause-Related Marketing • Co-authoring • Co-branding • Interactive • Scent/Aroma Marketing • Virtual • Specialty • Street Marketing • Viral Marketing (Word of Mouth) • E-viral Marketing (Word of Mouse) • Promotainment • House (Promo) 11-28 14
  • 15. What Makes an Ad Effective? 1. Gets your attention 2. Delivers the message 3. Creates an impression for a product or brand 4. Influences people to respond 5. Separates the product or brand from the competition 11-29 Key Players • Advertiser • Agency • Media • Supplier/Vendor • Target Audiences 11-30 15
  • 16. Why Hire an Agency? Hiring an agency can result in several benefits: • Offer objective advice • Draw on the collective experience and training of its staff • Provide people and management skills to accomplish advertising objectives • Provide supportive environment for professional advice 11-31 The Aperture Concept • The goal of the media planner is to expose the target audience to the message at the critical point when the consumer is receptive to the brand message. 11-32 16
  • 17. Aperture Concept in Media Planning 11-33 The Media Plan • A written document that summarizes the objectives and strategies pertinent to the placement of a company’s advertising messages. 11-34 17
  • 18. The Media Planning Process 11-35 Creative Brief 11-36 18
  • 19. The Central Role of Media Research 11-37 Media Objectives • Exposure • Gross Ratings Points • Reach • Frequency – Average frequency – Frequency distribution – Effective frequency 11-38 19
  • 20. Media Strategies • Strategies are designed to deliver on the media objectives, to deliver the right level of exposure in terms of reach and frequency [Superior tactics cannot overcome a bad (business) strategy] 11-39 Target Audience Strategies • Media use • Geography • Consumption patterns 11-40 20
  • 21. Changes In Consumer Media Use (2001-2003) 11-41 WF of R: Buying Space and Time 11-42 21
  • 22. Consumer Attitudes and Advertising Spending Figure 11.5 11-43 Cost Efficiency Cost per thousand (CPM) Cost of message unit x 1,000 Gross Impressions Cost per point (CPP) Cost of message unit Program or issue rating 11-44 22
  • 23. Scheduling Strategies • Timing strategies – Duration: How long – Continuity: How often The Continuity Strategies of Pulsing and Flighting 11-45 Media Buying • Buying is a complicated process • The American Association of Advertising Agencies (AAAA) lists no fewer than 21 elements in the authorization for a media buy 11-46 23
  • 24. Six Major Functions of a Media Buyer 11-47 Media Planning Changes and Challenges • Unbundling media buying and planning • Online media buying • New forms of media research needed 11-48 24
  • 25. How Media Planning Fits in the Advertising Process • Media planners have two main roles: – Analyzing the market, and – Evaluating media channel effectiveness. • Media planning is the process of determining how to use time and space to achieve marketing objectives. • One of these objectives is always to place the advertising message before a target audience using some type of media. 11-49 The Media Planning Process 11-50 25
  • 26. Sources of Information in Media Planning 11-51 Setting Media Objectives The Basic Goals That Direct Media Strategy Typically Focus on: Whom to Advertise To Which Geographic Areas to Cover When to Advertise What the Duration of the Campaign Should Be What the Size or Length of the Ad Should Be 11-52 26
  • 27. Finding Target Audiences and Sales Geography • Two major challenges face media planners searching for target audiences: – Discrepancies between the language of internal strategic research, and – Lack of reliable audience research for new media for advertising and sales promotion. • Sales geography is an important part of many advertising plans: – Sales are rarely consistent across geographic boundaries. – Affects which markets to advertise in and how much money to allocate to each geographic region. 11-53 Timing and Duration • Media planners might have to juggle a number of variables to make correct timing decisions: – How often is product bought? – Whether it is used more in some months than in others? – Timing decisions relate to factors such as seasonality, holidays, days of the week, and time of day. • Duration (how long to advertise) depends on: – Schedule and advertising budget, – Consumer use cycle, and – Competitive strategies. 11-54 27
  • 28. Developing Media Strategies Target Market Strategies: New Technology of Measurement Retail Scanners • Cash register scanners • List of customers and their Database Developments various characteristics, stored electronically. • Determining the precise impact Marketing Mix Modeling of the media plan on product sales. Internet Audience • Who’s online and which sites they are visiting may be Measurement Problems determined by number of hits, unique visitors, visitors, or page impressions. 11-55 Geographic Strategies: Allocating Media Weight • Try to balance sales with advertising investment market by market. • Can help local business fight the power of national corporations by saturating community with advertising from local companies. • Planner’s ideal advertising allocation provides enough budget to meet each area’s sales objectives. 11-56 28
  • 29. Timing and Duration Strategies Continuity $ Spent Option Campaign Time 11-57 Media Selection Procedures Reach Number of Different People Exposed to the Message Frequency Factors to Consider Degree of Exposure When Selecting Repetition Advertising Media Cost Per Thousand Efficiency of Selected Vehicles 11-58 29
  • 30. Audience Measures Used in Media Planning Impressions Measure of the Size of the Audience Gross Impressions Gross Values Audiences of All Media Number of People Viewing Vehicles Used in a Time Spot Rating Percentage of Exposure Gross Rating Point Divide the Total Number of Impressions by Size of Target Population and Multiply by 100. 11-59 Reach, Frequency and Media Planning Reach Frequency % of the Target Number of Times the Population Exposed Target Population At Least Once to Is Exposed to the the Advertising Advertising Message During a Message During a Specific Time Specific Time Frame. Frame. Methods Include: Average Frequency Frequency Distribution 11-60 30
  • 31. Combining Reach and Frequency Goals • Reach of an audience is not sufficient measure of an advertising’s schedule’s strength. • For anyone to be considered part of the reached audience, he or she must have been exposed more than once. • This theory combines reach and frequency elements into one factor known as effective frequency. 11-61 How to Calculate CPMs • Magazines. An issue of You magazine has 10,460,000 readers who could be considered a target audience. The advertising unit is a four-color page and its rate is $42,000. The CPM is: CPM = Cost of page or fractional page unit x 1,000 Target audience readers = $42,000 x 1,000 = $4.02 10,460,000 Media planners try to select the media that will expose the largest target audience for the lowest possible cost. 11-62 31
  • 32. Media Buyers’ Special Skills • Negotiation: Art of • Maintaining Plan a Buyer Performance – Vehicle – Monitoring Performance Audience Research – Unit Costs – Scheduling and – Preferred Positions Technical – Extra Support Problems • Program Offers Preemptions • Missed Closings • Technical problems 11-63 Staging a Media Plan A Media Plan is a Written Document that Summarizes the Recommended Objectives, Strategies, and Tactics Pertinent to the Placement of a Company’s Advertising Messages. Background and Discusses Media Options, Opportunities Situation Analysis and Target Audience. Media Objectives & Goal or Task that Media Can Accomplish Aperture Opportunities Based on Aperture Opportunities. Strategy: Explains Why a Single Medium or Set of Selection of Media Media is Appropriate. Media Buyers Convert Objectives and Flow Chart Scheduling Select, Negotiate, & Contract for Media & Budgeting Space. 11-64 32
  • 33. A Sample Media Plan for Pizza Hut 11-65 A Sample Media Plan for Pizza Hut • Situation and Consumer Analysis • Media Objectives and Aperture Strategies • The Media Mix • The Flowchart: Scheduling and Budgeting Allocation 11-66 33
  • 34. A Sample Media Plan for Pizza Hut Pizza Hut Media Plan 11-67 A Sample Media Plan for Pizza Hut Pizza Hut TV and Internet 11-68 Media Strategies 34
  • 35. A Sample Media Plan for Pizza Hut Pizza Hut Media-Planning Template 11-69 Print Ad Components Headline: Words in the Leading Position of the Ad Subheads: Smaller Than the Headline, Larger Than the Copy Body Copy: The Main Text Portion of a Print Ad Visual Elements: Illustrations Such As Drawings or Photos Layout: How Elements Are Blended Into a Finished Ad 11-70 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 35
  • 36. Print Ad Layout Arrangement of the Elements on the Format Printed Page Expressed in Columns, Column Inches Size or Portions of a Page Black & White or Two-, Three-, or Four- Color color Printing White Marginal and Intermediate Space That Space Remains Unprinted 11-71 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Top 10 Jingles of the Century Company Jingle 1. McDonald’s You deserve a break today 2. U.S. Army Be all that you can be 3. Pepsi Cola Pepsi Cola Hits the Spot 4. Campbell’s Soup M’m, Good M’m Good 5. Chevrolet See the USA in your Chevrolet 6. Oscar Mayer I wish I was an Oscar Mayer Wiener 7. Wrigley’s gum Double your pleasure, double your fun 8. Winston Winston tastes good like a cigarette should 9. Coca-Cola It’s the real thing 10. Brylcreem Brylcreem—A little dab’ll do ya 11-72 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 36
  • 37. Production Stages for TV Commercials All work before actual Preproduction shooting, recording Period of filming, taping, or Production recording Work after spot is filmed or Postproduction recorded 11-73 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Pre-production Tasks Select a Director Choose Preproduction Production Meeting Company Preproduction Production Bidding Timetable Cost Estimation and Timing 11-74 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 37
  • 38. Production Tasks Production Location Versus Night/weekend Talent Set Shoots Shoots Arrangements 11-75 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Post-production Tasks Editing Processing Release/ Sound Effects Shipping Postproduction Audio/Video Duplicating Mixing Client/agency Opticals Approval 11-76 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 38
  • 39. Evaluation Guidelines for Creative Output Consistent With Brand’s Marketing Objectives? Consistent With Brand’s Advertising Objectives? Consistent With Creative Strategy, Objectives? Does It Communicate What It’s Suppose to? Approach Appropriate to Target Audience? Communicate Clear, Convincing Message? Does Execution Overwhelm the Message? Appropriate to the Media Environment? Is the Advertisement Truthful and Tasteful? 11-77 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Media Terminology Media A series of decisions involving the delivery Planning of messages to audiences Media Goals to be attained by the media strategy Objectives and program Media Decisions on how the media objectives can Strategy be attained The various categories of delivery systems, Media including broadcast and print media Broadcast Either radio or television network or local Media station broadcasts 11-78 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 39
  • 40. Media Terminology Print Publications such as newspapers, Media magazines, direct mail, outdoor, etc. Media The specific carrier within a medium Vehicle category Number of different audience members Reach exposed at least once in a given time period The potential audience that might receive Coverage the message through the vehicle The number of times the receiver is exposed Frequency to the media vehicle in a specific time period 11-79 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Media Plan • A written document that summarizes the objectives and strategies pertinent to the placement of a company’s advertising messages. 11-80 40
  • 41. Developing the Media Plan Analyze the Market Establish Media Objectives Develop Media Strategy Implement Media Strategy Evaluate Performance 11-81 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Creative Brief 11-82 41
  • 42. Developing the Media Plan Situation Marketing Creative Analysis Strategy Plan Strategy Plan Setting Media Objectives Determining Media Strategy Selecting Broad Media Classes Selecting Media Within Class Media Use Decision Media Use Decision Media Use Decision — Broadcast — Print — Other Media 11-83 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Brand and Category Analysis Brand Development Index Percentage of brand to total U.S. sales in market BDI = X 100 Percentage of total U.S. population in market 11-84 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 42
  • 43. Brand and Category Analysis Category Development Index Percentage of total product category sales in market CDI = X 100 Percentage of total U.S. population in market 11-85 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Determining Relative Cost of Media-Print Cost per thousand (CPM) Cost of ad space CPM = (absolute cost) X 1,000 Circulation 11-86 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 43
  • 44. Determining Relative Cost of Media-Broadcast Cost per rating point (CPRP) Cost of commercial time CPRP = Program rating 11-87 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Insertion Order #1 11-88 44
  • 45. Insertion Order #2 11-89 Insertion Order #3 11-90 45
  • 46. Newspaper Pros and Cons Advantages Disadvantages High Coverage Short Life Low Cost Clutter Short Lead Time for Low Attention Getting Placing Ads Ads Can Be Placed in Poor Reproduction Quality Interest Sections Timely (Current Ads) Selective Reader Exposure Reader Controls Exposure Can Be Used for Coupons 11-91 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Newspaper Advantages and Drawbacks Advantages Disadvantages Production Quality Extensive Penetration May Be Low They Have a Flexibility Short Life Span Not Demographically Geographic Selectivity Selective Not Psychographically Involvement, Acceptance Selective There's Heavy Ad Services Offered Competition Potentially Poor Placement May Be Overlapping Circulation 11-92 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 46
  • 47. Newspaper Classifications Daily Publication Frequency Weekly National Type Special-Audience Supplements Standard Size Tabloid Ethnic, Religious, Etc. Audience Type Business, Financial, Etc. 11-93 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Characteristics of Newspapers The Dominant Advertising Vehicle Account for 22% of Ad Dollars Over 1,500 Daily Papers in Print Dailies Read by About 60% of adults Main Community Medium Local Ads Provide Most of Revenue 11-94 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 47
  • 48. Unique Newspaper Features Mass audience Cross-section of population Local geographic coverage Wide range of content, subjects Selective readership by area Timely coverage, daily issues Readership concentrated in time Permanent, durable record 11-95 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Newspaper Advertising Local (Mostly Retail) Display Ads General (Often National) Paid Reading Notices (Editorial Look) Small Items Arranged by Topic Classified Ads Rates Based on Size, Duration Classified Display - Combination Legal Notices - Public Reports Public Notices Notices by People, Organizations Financial Reports Printed Prepared Separately by Advertisers Inserts 11-96 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 48
  • 49. Newspaper Characteristics Read by Almost All Consumers Wide Read Daily in an Ordered Way Audience Readers Look at Over 3/4 of All Pages Few Limitations on Ad Size Spot and Full Color Available Offer Flexibility Many Shapes, Sizes, Paper, & Printing 11-97 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Rate Terminology Split Runs Split Run Rates Preferred Position Differential Rates Color Rates Insertion Rates Combination Rates Run-of-Paper [ROP] Open Rates Short Rates Flat Rates Earned Rates National Rates Local Rates Terms of the Trade 11-98 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 49
  • 50. Coverage Map – Major Radio Station 11-99 Circulation Zones for a Major Newspaper 11-100 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 50
  • 51. A Newspaper Promotes Its Various Sections 11-101 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Island Ads Break Through Clutter 11-102 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 51
  • 52. Popper/Dot Whack/Sticky Note 11-103 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Popper/Dot Whack/Sticky Note 11-104 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 52
  • 53. Popper/Dot Whack/Sticky Note 11-105 Popper/Dot Whack/Sticky Note 11-106 53
  • 54. Popper/Dot Whack/Sticky Note 11-107 Popper/Dot Whack/Sticky Note 11-108 54
  • 55. Inserts (FSIs) Help Marketers Reach Consumers 11-109 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Some Newspapers Offer Combination Rates 11-110 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 55
  • 56. College Newspapers Are an Effective Way to Reach Students 11-111 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Television Pros and Cons Advantages Disadvantages Mass Coverage Low Selectivity High Reach Short Message Life Impact of Sight, Sound High Absolute Cost and Motion High Prestige High Production Cost Low Cost Per Exposure Clutter Attention Getting Favorable Image 11-112 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 56
  • 57. Radio Pros and Cons Advantages Disadvantages Local Coverage Audio Only Low Cost Clutter High Frequency Low Attention Getting Flexible Fleeting Message Low Production Cost Well-segmented Audience 11-113 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Internet Pros and Cons Advantages Disadvantages User Selects Product Limited Creative Information Capabilities User Attention and Web snarl (Crowded Involvement Access) Interactive Relationship Technology Limitations Few Valid Measurement Direct Selling Potential Techniques Flexible Message Platform Limited Reach 11-114 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 57
  • 58. Direct Mail Pros and Cons Advantages Disadvantages High Selectivity High Cost Per Contact Reader Controls Exposure Poor Image (Junk Mail) High Information Content Clutter Repeat Exposure Opportunities 11-115 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Outdoor Pros and Cons Advantages Disadvantages Location Specific Sort Exposure Time High Repetition Short Ads Easily Noticed Poor Image Local Restrictions 11-116 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 58
  • 59. Magazine Pros and Cons Advantages Disadvantages Long Lead Time for Segmentation Potential Ad Placement Quality Reproduction Visual Only High Information Content Lack of Flexibility Longevity Multiple Readers 11-117 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Magazine Pros and Cons Advantages Disadvantages Selectivity Costs Reproduction Quality Limited Reach Creative Flexibility Limited Frequency Permanence Long Lead Time Prestige Clutter Receptivity, Involvement Services 11-118 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 59
  • 60. Special Magazine Features Bleed Pages Island Halves Inserts Gate Folds Pop-Ups Cover Positions 11-119 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Magazine Circulation Concepts Primary Circulation Total Guaranteed Audience Circulation Controlled Circulation Circulation Verification Pass-Along Readership 11-120 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 60
  • 61. The Future of Magazines Declining Ad Revenues Stronger Editorial Platforms Circulation Management Cross-Magazine and Media Deals Trends, Trends, Database Marketing Trends… Advances in Technology Electronic Delivery Methods 11-121 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Consumer Magazines Target Specific Interests 11-122 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 61
  • 62. An Example of a Farm Publication 11-123 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Magazines Target Professions or Industries 11-124 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 62
  • 63. Top-Selling Magazines: 2002 11-125 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Media Kits Provide Information on Readers 11-126 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 63
  • 64. City Magazines Provide Geographic Targeting 11-127 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Newsweek Offers Various Geographic Editions 11-128 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 64
  • 65. Use of Various Media for Insight and Ideas 11-129 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Consumers Rely on Magazines for Information 11-130 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 65
  • 66. Pop-Ups Grab Attention 11-131 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Quarter Page Ads Can Extend a Media Budget 11-132 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 66
  • 67. Media Research Guides Advertisers + 11-133 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Media Kits Provide Advertisers With Information 11-134 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 67
  • 68. A New Breed of Business Publication 11-135 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Magazines Go Online 11-136 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 68
  • 69. Questions ??? M. Larry Litwin, APR, Fellow PRSA larry@larrylitwin.com www.larrylitwin.com © 2009 11-137 69