Com 452, Adv. Media Strategy, Ju-Pak Notes Date of your note taking: / /2004
ADV. MEDIA STRATEGY & TACTICS
COURSE NOTES
JU-PAK, FALL 2006
Topic
Planning/Buying Individual Media 1-29
Newspapers 1
Magazines 8
TV 11
Radio 16
Outdoor, Transit 20, 23
Direct Mail, Other Media 26, 28
Comparison of Advertising Media (Summary) i
MRI Tutorial ii
Model-Based Media Planning Process iv
Note:
Please review course notes for each class prior to the class meeting; Extra credit assignments are embedded throughout the notes
PLANNING/BUYING MEDIA -- NEWSPAPERS
I. Classification (7 Categories)
Businesses can advertise in any of the following newspaper classes
A. Daily
Total --- ______in U.S. [about 70% are chains]
Predominantly ______(in $)
-- Use of dailies (and weeklies) is logistically prohibited for national advertisers – practical limitations – this is why newspapers are not popular among national advertisers
National (daily) newspapers include:
B. Sunday -- around 840
Why would businesses advertise in Sunday papers?
Do people read Sunday papers differently from dailies? How?
C. Weeklies -- around 7,500
Two types (rural and suburban) and their media implications:
What kinds of advertisers/businesses might benefit from advertising in weekly papers?
D. Special Interest
Include foreign language, religious, African-American, labor, financial papers, etc.
Why would advertisers use these types?
Have magazine-like characteristics:
Noted for audience selectivity.
E. Supplements or Supps [Sunday magazines]
National (______, ______, ______)
Local [Most]
Why would businesses advertise in supps?
F. Sunday Comics
National (Metro-Puck)
Local -- Bought thru "______"
What kinds of business would want to advertise in Sunday comics? What kinds of advertisers have you seen in Sunday comics?
G. Pre-Print Advertising/Inserts -- typically distributed through supplements
Magazine-like color reproduction
Two Color Options (Strengths/Weaknesses)
ROP (Run-of-Paper or Run-of-Press):
Pre-print inserts:
Current examples: multi-page inserts, free-standing inserts (FSI), cards, envelopes, product sample, etc.
Think of some of the advertisers you have seen in newspaper ad inserts:
II. Why or Why Not Use Newspapers?
Read the SB textbook and fill in the space following
(You get extra credit if you came up with at least two advantages and two disadvantages of using newspapers)
III. Tactics of Buying Newspapers
A. Who provides newspaper information?
Circulation information:
Audience information:
Rates (cost) information:
See examples for each type of info from the slides
B. What ad sizes/options are available?
SAU (Standard Advertising Unit) system for determining ad sizes and rates: [See handout]
C. Advertising Sizes -- Column inch is the basis for newspaper buy
1. Column inch (New, SAU-based) vs. Agate line (Old System)
One column inch = 1 column (width) by 1 inch (depth)
One column inch = ____ agate lines.
Example: How do you determine the size of your ad (space) in column inches?
2. Advertising Rates: Open Rate vs. Flat Rate
Flat rate:
Open rate:
3. Short Rating and Rebating:
Are you legally bound to buy what you contracted for?
______: advertiser pays for the rate difference when the volume or space actually purchased is less than that signed for the year; ______: vehicle pays for the rate when the actual purchase is more than that singed for.
Examples:
Suppose you contracted for inches of buy in LA Times. If you, however, end up buying inches,
a) How did you contracted for? How much did you buy (in column inches)?
b) Which rate system is applicable to your buy? How much are you short?
[assume $48 column inch rate for 8,000 column inches of buy, $45 for 10,000 and $43 for 12,000]
c) how much rebate would you get if you end up buying 12,000 column inches?
4. Color Rates ("extra" charges are added to the B&W rates for each ad)
-- Note the color "add-on" charge applies to ______
See an example of “add-on” charges from the slide:
If you buy two 3-color ads, each measuring 50 column inches in the paper shown, how much should you pay?
D. Vehicle Comparisons by CPM (cost-efficiency)
CPM =
If two newspapers in a market has the same circulation in your trading area, and Newspaper A charges a little more than Newspaper B for the same amount of ad space, then which paper would deliver a lower CPM? So, is lower or higher CPM better?
IV. Some Additional Matters/Significant Trends
A. Rate Differential: National advertisers pay ______% more than retailers.
-- depends in part on the demand-supply relationship
B. Newspaper Readership [done yearly by SMRB] -- who reads newspapers?
____% of all adults read a daily newspaper
Readership vary by selected demographics:
45 to 64 -- 68/69% [vs. 18-24 -- 57%]
Graduate college -- 75% [ vs. 41% did not attend H.S.]
$50K+ HH income -- 75% [vs. 44% less than $10K]
Summarize the pattern of newspaper readership shown above (in your own words – Those who have written up their summary get extra credit):
Advertising/Media Implications: Newspapers are an effective medium to reach what kinds of targets (in age, education, and income)?
MAGAZINES
I. Classification -- 3 Categories:
A. Consumer magazines-- ______vehicles & ____ editorial classes
B. Farm (Agricultural) publications
C. Business publications [separate SRDS]
1. Industrial
2. Merchandising (Trade)
3. Professional
See examples of different types of magazines:
II. Why or Why Not Use Magazines?
Read the textbook and fill in the space following
(You get extra credit if you came up with at least two advantages and two disadvantages of using magazines)
III. Tactics of Buying Magazines
A. Who provides magazine information?
1. Circulation:
Consumer magazines:
Farm Publications:
Business Publications:
2. Audiences (extensive audience data is available for consumer magazines):
See MRI for examples of magazine audience data:
3. Rates:
C. Some Important Terms
Total Audience = Primary + Secondary (Pass-Along) Audience
Primary Audience:
Examples:
Secondary (Pass-Along) Audience:
Examples:
What does the information (split between primary and secondary audience) tell a media planner?
D. Vehicle Comparisons by CPM
CPM =
Example: Redbook charges $25,000 for a half-page 2-color ad, and Better Homes & Garden (BHG) charges $40,000 for the same ad. Redbook delivers 2,000,000 target individuals (women 18+), while BHG 4,000,000 target women. Which is a more cost efficient choice?
TELEVISION
I. Classification -- 6 Categories
Network:
Cable Network:
Syndication:
Spot National:
Spot Local:
Non-network or Local Cable:
II. Why or Why Not Use Television?
Read the textbook and fill in the space following
(You get extra credit if you came up with at least two advantages and two disadvantages of using Television)
(You get extra credit if you came up with at least two advantages and two disadvantages of using Cable Television)
A. Some data illustrating TV's ability to deliver broad coverage of audiences:
• TV Households -- ____% of all households in U.S.
• Multi-set ownership -- % What does this mean to TV advertisers?
• Cable -- ____%
Average percent of households using TV [ ______]: varies by time of day
Weekday -- ____%
Primetime -- ____%
If you use "Roadblock;" networks + cable networks, what % of population will you get?
• Average Program Ratings:
Daytime --
Primetime --
B. Additional Characteristics:
1. Large dollars outlay required (especially, for network)... yet CPM can be low
Average PT :30 sec -- $ [CPMs -- $ - $ ]
Top-rate shows -- $
2. Complex medium to buy - why?
a.
b.
c.
3. In primetime, HH's TV usage varies across seasons: {see Marketer’s Guide to Media}
III. Tactics of Buying Television
A. Who provides television information?
Audience (ratings): Network --
Spot --
Cost/Rates: Network --
Spot --
B. Costing a TV Buy
Examples
IV. More Trends on TV (Marketer’s Guide to Media)
RADIO
I. Classification
A. Network -- Wired vs. Nonwired
B. Spot
C. Local
II. Why or Why Not Use Radio?
Read the textbook and fill in the space following
(You get extra credit if you came up with at least two advantages and two disadvantages of using Radio)
A. Some data regarding radio's reach potential:
• ___% of all HHs have at least 1 radio set; average # of sets per home = 6
• Radio reaches ___% of people 12+ each day; ___% in a week
This is potential for large reach; the potential is rarely realized in practice (because of too many radio stations and radio audience fragmentation)
Radio is more of a frequency-building medium than of a reach-building medium for a national advertiser
B. Additional Characteristics:
1. Can get audience selectivity
By Daypart:
6-10 am -- Morning Drive (AMD) [most expensive daypart]
10-3 pm -- Daytime (DT)
3-7 pm -- Afternoon Drive (PMD) [next most expensive]
7-midnight -- Evening (ET or NT)
-- Why are drive times more expensive?
By Station "Sound" Format -- Adult Contemporary Rock (ACR), Country & Western (CW), News/Talk .....
III. Tactics of Buying Radio
A. Who provides radio information?
1. Audience:
Network --
Spot --
2. Cost or Rates:
Network --
But, cost estimates are available by ad agencies
[:30s in network radio are 50% of :60s]
Spot --
Frequency discounts [6 per week,13 per week, etc.]
Cost estimates are also available
[:30s in spot radio are about 80% of :60s]
B. Vehicle Comparison by CPM
IV. More about Radio {See Marketer’s Guide to Media}
OUTDOOR
I. Classification ["Standardized" outdoor] -- 3 Categories
A. Posters
-- Produced in large quantities
-- 30-sheet and bleed are common ["horizontal' in layout]
Some examples (to see):
-- Junior Posters/Panels (to reach pedestrians) ["vertical"]
B. Painted Bulletins
-- Individually painted and priced
[bigger in size and higher in price]
-- Characterized by special designs
Some examples (to see):
-- Rotary Plans:
C. Spectacular
-- Custom-built (electronic or non-electronic) displays using extensive lighting, movement, and intricate designs
Some examples (to see):
(Extra Credit Opportunity: Take a digital photo of any of the three types in your local area and bring it in a pdf file to show it to class)
II. Why or Why Not Use Outdoor?
Read the textbook and fill in the space following
(You get extra credit if you came up with at least two advantages and two disadvantages of using Outdoor billboards)
III. Tactics of Buying Outdoor
-- Buy either from local plant operators or thru chains
-- Buying posters and other classes differ
A. Posters (Illuminated vs. Non-illuminated)
1. Buy according to ______
2. Three most popular buys are 100, 50, 25 GRPs
What does 100 GRPs mean?
100 GRPs or Showing = 100% delivery of the local population??
3. Base buy is ______
4. Cost/Rates:
a. Sources for precise costs:
-- cost estimates for buying top 10, 20, . . . , 100 markets available
b. Example:
B. Painted Bulletins/ Spectacular (Most are illuminated)
1. Priced by individual unit
2. Base Buy is ______
3. No standard basis for setting rates
TRANSIT
I. Classification ["Standardized" Transit] -- 3 Categories
A. Interior Transit: (inside the bus or train) Car cards
What kinds of people might be exposed to interior transit ads?
What kinds of businesses would benefit from advertising inside the bus or train?
B. Exterior Transit:
Standard sizes: tailgaters (back), headlighters (front), king-size, queen, traveling displays (sides), Bus-O-Roma (top)
What kinds of businesses would benefit from using exterior transit?
C. Station Posters:
II. Why or Why Not Use Transit?
Read the textbook and fill in the following
(You get extra credit if you came up with at least two advantages and two disadvantages of using Transit)
Some Important Characteristics:
1. Exterior:
a.
b.
2. Interior:
a. Longer copy can be used
b. High frequency can be built
III. Tactics of Buying Transit
A. Buy from local transit systems [or thru media reps]
B. Base buy for transit advertising is ____
[frequency discounts available for longer contracts]
C. Priced based on
1. Exterior: "______" -- 100, 50, 25, like outdoor posters
2. Interior: "______" -- full, half, quarter, double run
What is a half run?
D. Costing a buy [Interior and Exterior]
-- Who provides cost information for transit?
Cost estimates for buying top markets are available
IV. More on Outdoor and Transit Trends
DIRECT MAIL
I. Introduction/Classification
-- How does the term direct mail differ from direct marketing?
-- Direct mail has not been classified any further.
II. Why or Why Not Use Direct Mail?
1. Does not interact with editorial matter -- May be an advantage or disadvantage. Why?
(You get extra credit if you came up with at least two advantages and two disadvantages of using Cable Television)
III. Tactics of Buying Direct Mail
A. Who provides direct mail information?
1. Audience or Circulation:
2. Cost/Rates: SRDS Direct Mail Lists
Cost is shown $ amount per thousand names
B. Costing of Direct Mail [3 components]
1.
2.
3.
[3 approaches]:
a.
b.
c.
OTHER MEDIA
1. Internet
Web-based
e-mail based
Wired
Wireless
2. Specialties
a. Calendars
b. Wearables
c. Writing instruments
d. Others
3. Directories
a. Yellow Pages (significant volume increase)
b. Business Directories
4. Motion Picture Advertising
a. "Commercials"
b. Theater programs
5. Sporting Events
a. Scoreboards
b. Programs
c. Posters
6. Shopping Carts and Bags
7. Airplanes [banners] and Blimps
8. (Bus) Benches and Shelters
9. In-store Media
a. Island displays
b. Check-out counter signs and monitors
c. In-store television and radio
d. Store receipts
10. Online, Video Games
11. Hotel TV Channels
12. Kiosks
13. CD, Video Cassettes, DVD
14. Car wraps
15. Product Placement in Films and TV Shows
(Extra Credit Opportunity: Come up with more types of non-traditional/alternative media)
Page 35
Com 452, Adv. Media Strategy, Ju-Pak Notes Date of your note taking: / /2004
COMPARISON OF ADVERTISING MEDIA (Summary)
Broadcast TV Cable TV Radio Magazines Newsp Newsp. Outdoor Transit Direct
Criteria National Local National Local National Local (National) Magazines Mail