Figure 8-1 Factors Affecting the Media Plan

Figure 8-1 Factors Affecting the Media Plan

8 Chapter Eight Traditional Media Channels Copyright 2014 by Pearson 8-1 8 GoDaddy.com Super Bowl Buzz Super Bowl audiences over 100 million Advertising event of the year Ads generate online buzz

Word-of-mouth recommendations 30 second ad - $3 million GoDaddy sexually controversial ads Ads banned by network Controversial ads posted on Web Generated buzz and free publicity Copyright 2014 by Pearson 8-2 8 1. 2. 3. 4. 5. 6. 7. 8. Traditional Media Channels Chapter Objectives What is a media strategy? What elements and individuals are involved in media planning? How do the terms used to describe advertising help the marketing

team design effective campaigns? What are some of the primary advertising objectives? What are the advantages and disadvantages associated with each of the traditional advertising media? How can the marketing team use the media mix to increase advertising effectiveness? What are the key issues associated with media selection for business-to-business markets? What issues are associated with media selection in international markets? Copyright 2014 by Pearson 8-3 8 Traditional Media Channels Chapter Overview Nature of media strategy

Media planning Media buying Media choices B-to-B media selection International media concerns Copyright 2014 by Pearson 8-4 Media Strategy Process of analyzing and choosing media for advertising and promotional campaigns Copyright 2014 by Pearson 8-5 Media Planning

Analysis of target market Focus on consumer behavior Understanding purchase process Study media choices Listening and viewing habit Copyright 2014 by Pearson 8-6 FIGURE 8.2 Examples of Times Workers Are Exposed to Advertisements

A favorite wake-up radio station or one that is listened to during the commute to work A favorite morning news show or newspaper Trade or business journals that are examined while at work A radio station that is played during office hours at work Favorite computer sites that are accessed during work Favorite magazines that are read during the evening hours Favorite television shows that are watched during the evening hours Internet sites that are accessed during leisurely hours Shopping, dining, and entertainment venues that are frequented Copyright 2014 by Pearson 8-7 FIGURE 8.3 Components of a Media Plan Marketing analysis Advertising analysis Media strategy Media schedule Justification and summary

Copyright 2014 by Pearson 8-8 People Involved in Media Selection Media Buyer Media Planner Creative Account Executive Account Planner Client Copyright 2014 by Pearson 8-9 Media Planner Target Market

Media Audience Characteristics Media Audience Characteristics Copyright 2014 by Pearson 8-10 Media Planner An advertisement by New Balance placed in Runners World magazine by the media planner. Copyright 2014 by Pearson 8-11 Media Buyers

Purchases space, negotiates rates Placement important consideration Little connection between agency size and price Spot ad one time placement Effectiveness related to Quality of media choices Creativity Financial stewardship Agencys culture and track record Relationship with media reps Copyright 2014 by Pearson 8-12 Advertising Terminology Reach Number in target audience exposed

Typically 4-week period Frequency Average number of exposures Opportunities to see (OTS) Cumulative exposures Placements x frequency Gross rating points (GRPs) Measures impact of intensity of media plan Vehicle rating x OTS (number of insertions) Copyright 2014 by Pearson 8-13 Advertising Terminology Costs Cost per thousand (CPM) CPM allows for cost comparisons Ratings and Cost per Rating Point (CPRP) Ratings measure percent of target market exposed by medium CPRP allows for comparison across media Cost of media buy / vehicles rating Weighted CPM

Continuity Continuous campaign Pulsating campaign Flighting (or discontinuous) campaign Impressions Gross impressions total audience exposed to ad Copyright 2014 by Pearson 8-14 FIGURE 8 . 5 Hypothetical Media Information for Select Magazines Target Market (20 million) Publication 4C Base Rate Total Paid & Verified Circulation

CPM Percent of Number of Readers Fit Readers Fit Target Market Target Market Rating (Reach) Cost per Rating Point (CPRP) Better Homes and Gardens $506,380 7,648,600 $66.21 13.51% 1,033,000 5.2

$98,041 Glamour $219,190 2,320,325 $94.47 24.65% 572,000 2.9 $76,640 Good Housekeeping $387,055 4,652,904 $83.19 10.81%

503,000 2.5 $153,899 National Geographic $225,455 4,495,931 $50.15 26.96% 1,212,000 6.1 $37,204 Reader's Digest $185,300

7,114,955 $26.04 18.62% 1,325,000 6.6 $27,970 Southern Living $198,800 2,855,973 $69.61 10.57% 302,000 1.5 $131,656

Sports Illustrated $392,800 3,201,524 $122.69 16.77% 537,000 2.7 $146,294 TIME $320,100 3,376,226 $94.81 18.60%

628,000 3.1 $101,943 Copyright 2014 by Pearson 8-15 FIGURE 8 . 6 Calculating Weighted CPM Target Market (20 million) Publication Total Paid & Verified 4C Base Rate Circulation CPM Percent of Readers Fit Target Market

Number of Readers Fit Target Market Weighted (Demographic) CPM Better Homes and Gardens $506,380 7,648,600 $66.21 13.51% 1,033,000 $490.20 Glamour $219,190 2,320,325

$94.47 24.65% 572,000 $383.20 Good Housekeeping $387,055 4,652,904 $83.19 10.81% 503,000 $769.49 National Geographic $225,455

4,495,931 $50.15 26.96% 1,212,000 $186.02 Reader's Digest $185,300 7,114,955 $26.04 18.62% 1,325,000 $139.85 Southern Living $198,800

2,855,973 $69.61 10.57% 302,000 $658.28 Sports Illustrated $392,800 3,201,524 $122.69 16.77% 537,000 $731.47 Copyright 2014 by Pearson

8-16 Achieving Advertising Objectives Three-Exposure Hypothesis Herbert Krugman Minimum of 3 exposures to be effective Intrusion value Recency Theory Clutter, 3 exposures not enough Selective attention and focus Pay attention only to certain ads One ad exposure may be enough Requires continuous advertising Increase exposure through adding reach Copyright 2014 by Pearson 8-17 Achieving Advertising Objectives

Effective reach and frequency What percent of audience must be exposed? How many times must audience be exposed? Too few ads not effective Too many ads wasted resources Size and placement of ads Number and type of media Computer models to optimize schedule Copyright 2014 by Pearson 8-18 Achieving Advertising Objectives Brand recognition Emphasis on visual product presentation Recognize brand Brand recall

Frequency more important than reach Repetition important Copyright 2014 by Pearson 8-19 F I G U R E 8 .Television 7 Brand Recognition versus Table Brand 9.2 Recall Objective Brand Recognition Brand Recall Goal Create/strengthen mental linkages Place brand in evoked set Method

Increase reach Increase frequency (repetitions) Best media Television Television Outdoor Radio Magazines Newspapers Internet Internet Direct mail Copyright 2014 by Pearson

8-20 F I G U R E 8 Television .8 Television Advertising Table 9.2 Disadvantages Advantages High reach High frequency potential Low cost per contact High intrusion value Quality creative opportunities Segmentation through cable

High level of clutter Low recall due to clutter Channel surfing during ads DVRs skipping ads Short amount of copy High cost per ad Copyright 2014 by Pearson 8-21 Nielsen Ratings Rating number of household turned to a program total number of households in a market In the United States, the total number of households with television sets is approximately 109.7 million. To calculate the rating of an TV episode, if the number of households tuned to the show was 17.8 million, then the rating would be: 17,800,000 Rating

16.2 109,700,000 Next, if the advertiser were interested in the percentage of households that actually were watching television at that hour, the programs share could be calculated. If 71 million of the 109.7 million households had a television turned on during the hour in which the show aired, the share would be: Share number of households tuned to Survivor 17,800,000 25 number of households with a television turned on 71,000,000 Copyright 2014 by Pearson 8-22 C3 Ratings

Rating for actual commercial time slot Rating plus viewing within 3 days Now used for advertising rates Calculated for all ads within a pod Criticism ads within pod not equal First position 28% higher awareness On Demand C3 Copyright 2014 by Pearson 8-23 F I G U R E 8 .Television 9 Cost of 30-Second Ad Based Table 9.2on C-3 Ratings American Idol $467,617 Sunday Night Football $415,000 Glee $272,694 Family Guy $259,289 The Simpsons

$253,170 House $226,180 Greys Anatomy $222,113 The Office $213,617 Desperate Housewives $210,064 Source: Adapted from Brian Steinberg, Simon Who? Idol Spots Still Pricest in Prime Time, Advertising Age, October 18, 2010, http://adage.com/pring/146495. Copyright 2014 by Pearson 8-24 Ratings Provider AC Nielsen DMAs Demographic information Nielsen Media Research Starch INRA Mediamark Research

Burke Marketing Research Copyright 2014 by Pearson 8-25 Television Local and Regional TV advertising Excellent for local and regional companies National brands spot TV ads 75% national time sold during sweeps week Can generate higher GRPs at lower costs Effective television advertising Television audience should match target market Can reach large audience Low cost per contact

Cable provides segmented audiences Copyright 2014 by Pearson 8-26 Social Media and Television Trends for consumers Less time watching television More time online High social media users watch more TV 75% consumers multi-task watching TV Bluefin Labs online buzz and TV shows Copyright 2014 by Pearson 8-27 YouTube and Television Television ads posted on YouTube Simultaneous rollout YouTube pre-rollout Super Bowl teaser ads Result in higher recall 200% higher recall for both TV and YouTube

150% higher recall YouTube only Copyright 2014 by Pearson 8-28 Super Bowl Advertising Biggest advertising event of year 110 million plus viewers Brand building opportunity Many Super Bowl ads pre-roll in social media Teaser ads Extended ad with additional information Immediate feedback Monitor social buzz Copyright 2014 by Pearson 8-29 FIGURE

8 . 10 Radio Advertising Advantages Disadvantages Recall promoted Narrower target markets Ad music can match audience High segmentation potential Flexibility in making ads Modify ad to local conditions Intimacy with DJs Mobile listen anywhere Creative opportunities with sound and music

Short exposure time Low attention Difficult to reach national audiences Target duplication with several stations using the same format Information overload Copyright 2014 by Pearson 8-30 FIGURE 8 . 11 Outdoor (out-of-home) Advertising Advantages Disadvantages Select key geographic areas Accessible for local ads Low cost per impression Broad reach

High frequency on major commuter routes Large visuals possible Digital capabilities Short exposure time Brief messages Little segmentation possible Clutter Copyright 2014 by Pearson 8-31 FIGURE 8 . 12 Expenditures on Outdoor Advertising Government, politics & orgs

$276 Automotive Dealers & services $294 Financial $370 Insurance & real estate $420 Media & Advertising $452 Communications $514 Restaurants $514

Retail $528 Transportation, hotels & resorts $602 Services & amusements $1,042 $0 $200 $400 $600 $800 $1,000 $1,200 Expenditures in Millions Source: Adapted from Outdoor Advertising Expenditures, 2009 January-June, TNS Media Intelligence/CMR OAAA, September 2009.

Copyright 2014 by Pearson 8-32 Outdoor Advertising First outdoor billboard for Unleashed Indoor Dog Parks Copyright 2014 by Pearson 8-33 Outdoor Advertising Second outdoor billboard for Unleashed Indoor Dog Parks Copyright 2014 by Pearson 8-34 Outdoor Advertising Third outdoor billboard for Unleashed Indoor Dog Parks Copyright 2014 by Pearson

8-35 F I G U R E 8 . 13 Magazine Advertising Advantages High market segmentation Targeted audience by magazine Direct-response techniques High color quality Long-life Read during leisure Disadvantages longer attention to ads Availability of special features

Declining readership Clutter Long lead time Little flexibility High cost Copyright 2014 by Pearson 8-36 F I G U R E 8 . 14 Newspaper Advertising Advantages Geographic selectivity

High flexibility High credibility Strong audience interest Longer copy Cumulative volume discounts Coupon and special-response features Disadvantages Poor buying procedures Short life span Clutter Poor quality reproduction Internet competition Aging readership Copyright 2014 by Pearson 8-37

Media Mix Select proper blend of media Media planners and media buyers Media multiplier effect Consumer audience Business-to-business audience Copyright 2014 by Pearson 8-38 FIGURE 8 . 15 U.S. Advertising Expenditures by Media for Coca-Cola Internet; 1.81% Outdoor; 6.86% Magazine; 17.68% Radio; 7.17% Newspaper; 3.10% Television; 63.38% Source: Adapted from Marketer Trees 2009, http://adage.com/marketertrees09, December 28, 2009.

Copyright 2014 by Pearson 8-39 FIGURE 8 . 16 Developing Logical Combinations of Media Copyright 2014 by Pearson 8-40 Media Selection in B-to-B Markets B-to-B ads looking more like consumer ads Reasons for shift Decision makers also consumers Decision makers difficult to reach Clutter in B-to-B traditional media Increase in advertising through consumer media Trade publications still important Business magazines Copyright 2014 by Pearson

8-41 FIGURE 8 . 17 Business-to-Business Advertising Expenditures Outdoor, 3.0% Radio, 6.7% Internet, 9.6% Television, 25.4% Business publications, 26.0% Newspapers, 18.0% Consumer magazines, 11.5% Source: Based on Kate Maddox, Top 100 B-to-B Advertisers Increased Spending 3% in 06, B to B, Vol. 92, No. 11 (September 10, 2007), pp. 25-30. Copyright 2014 by Pearson

8-42 International Implications Media importance varies. Media viewing habits vary across countries. Media buying is different. Cultural mores vary. Copyright 2014 by Pearson 8-43 ClowBaack Integrated Campaigns in Action Ouachita Independent Bank (Part 8) Theme of campaign - Local people, local trust Media

Magazine Newspaper Television Billboard Copyright 2014 by Pearson Education, Inc. All rights reserved. 3-44 ClowBaack Integrated Campaigns in Action Ouachita Independent Bank (Part 8) Magazine Copyright 2014 by Pearson Education, Inc. All rights reserved. 3-45 ClowBaack Integrated Campaigns in Action Ouachita Independent Bank (Part 8) Newspaper

Copyright 2014 by Pearson Education, Inc. All rights reserved. 3-46 ClowBaack Integrated Campaigns in Action Ouachita Independent Bank (Part 8) Television 15 second Ad 30 second Ad Copyright 2014 by Pearson Education, Inc. All rights reserved. 3-47 ClowBaack Integrated Campaigns in Action Ouachita Independent Bank (Part 8) Billboard Copyright 2014 by Pearson Education, Inc. All rights reserved.

3-48 Integrated Campaigns in Action The Snoring Center Copyright 2014 by Pearson 8-49

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