VIDEO MEDIA
ARIZONA STATE UNIVERSITY
MKT 365 - ADVERTISING AND BEYOND: CUSTOMER-CENTRIC
BRAND DEVELOPMENT
WEEK 7
Introduction:
When we refer to television and radio, we generally call them broadcast media,
although nowadays they are not always broadcast by broadcast. Television and radio can be
sent via satellite transmission or digitally via the Internet, and television can be sent via
cable. Nonetheless, the traditional term broadcast is still used when referring to these
advertising media.
When all types of television advertising are grouped together, television is the largest
advertising medium in terms of dollars spent. Television's share of the media pie has
decreased slightly over the past few years as newer media take a larger share of total
advertising investment, but television is still number one in advertising sales.
20.1. INDUSTRY STRUCTURE:
Many local television stations are joined together by chains called networks.
Traditionally, networks provide programming to stations and pay stations to carry the
programming. As a result, these stations are referred to as network affiliates when they strike
a deal with the network.
The four largest television networks are CBS, NBC, ABC, and Fox, and they have tv
stations in most US television markets. Smaller networks, such as CW, have fewer stations,
usually in larger cities. PBS public network television is a somewhat informal approach in
which stations are less obligated to carry network programming and may choose to
broadcast it at different times. PBS does not carry advertising in the same way as the big
four, although the company helps underwrite the cost of the program. Many of these
underwriter messages look similar to ads that air on other networks.
A so-called cable network is not really a broadcast network in the traditional sense.
Instead, a cable network may only have one programming channel that is broadcast via cable
and satellite systems. Although cable networks do not broadcast local news, opportunities
for local advertising still exist.
Networks, stations, satellite companies and cable operators all sell advertising. Sales
representatives are called "reps" in the business; some broadcast companies have attempted
to upgrade the role of reps by calling them "account executives", although they do not fill
the same role as executives in advertising agencies.
The Internet allows various ways for individuals to find and watch their favorite
programs. The big four networks make some, if not all, of their programs available online on
their own websites. For example, NBC's website, NBC. Com, provides full episodes of
current programs such as The Voice, Days of Our Lives, and Late Night with Jimmy Fallon.
Advertisements are shown before, after, and sometimes during the show. Services such as
Hulu allow viewers to watch programs selected from multiple networks (as well as original
programming) through their website (Hulu. Com), via mobile devices, and on television
through gaming consoles such as Xbox. Hulu is similar to other digital channels in that it
offers a "free" service with ads and a "subscription" service with a reduced number of ads.
20.2. TYPES OF ADVERTISEMENTS ON TELEVISION:
Commercial announcements within the body of a program are called program
announcement participles, often shortened simply to participles. Commercials between
programs are known as spot ads. At one time, the participles were sold by the network,
while stations sold spot time.
In recent years, however, the distinction has fallen apart as networks also sell
advertising outside of programs, called network spots. Major advertisers once sponsored
entire television shows, or alternated with other advertisers. As television advertising has
become more expensive and advertisers want to reach diverse audiences, sponsors have
declined and participations are a common pattern. There are many other patterns of
television commercials; for example, infomercials are program-type commercials that take
the full 30 or 60 minutes.
20.3. ADVERTISING RATES ON TELEVISION:
The time cost of advertising on television depends on the size of the audience, which
varies by station or show, of course, but also by time. The higher the audience rating, the
higher the cost of advertising. The cost also varies with the length of the spot.
In the average television broadcast on networks such as ABC, there is little time
available for advertising; the amount of time is regulated by the Federal Communications
Commission (FCC). Buying television advertising time depends on the available capability
(often referred to as available), i.e. the television broadcast time that is still available for
purchase. An advertiser can pay the full rate and guarantee that it has a certain amount of
time to advertise, or it can take the risk of paying an earlier rate that is cheaper but could be
taken by another advertiser willing to pay more.
As airtime approaches, a strange thing happens. Time that has already been sold at an
ever-increasing price as other advertisers express willingness to pay more to acquire that
timeframe. But the price of unsold time decreases as the station or network tries to sell it
cheaply, rather than not having advertising to run in that particular time slot.
On network television, the highest time is prime time (8pm to 11pm Eastern
Standard Time) in the evening, with other categories labeled throughout the day, as shown in
Exhibit 20.1. Stations use their own labels for time categories, such as letters or numbers. At
one time, class A time used to be the highest, but now some stations have 5A or 6A time,
starting from class A as the time with the lowest time limit. Therefore, we cannot compare
the advertising costs of various stations by looking at the time classification; it is necessary
to check the actual time and audience ratings.
Cost benchmarking is often done using cost per thousand (CPM), which compares
the cost of reaching 1,000 audience members or 1,000 households or any other unit of
measure for the category that may be available. Cost benchmarking also often uses cost per
point (CPP), which compares the cost of reaching 1 percent of a given audience or target
group.
As with other media, discounts are available for most television advertisements
based on quantity or frequency. The various advertising holes that are broadcast are often
referred to as deployment packages, where advertisers can specify which spots to use and
obtain discounts for various purchases. For television, there are also additional costs for
preparing the commercial itself, and if people appear in the commercial ongoing residual
payments to the actors, called residuals, may be required in addition to the time cost of
running the commercial.
Decades ago, the start of a new television season in the fall was a big event for
advertisers and sellers of television commercials. The fall schedule was announced at the
start of the period in May. During the advance season, major advertisers committed the bulk
of their budgets - and 75 percent of their television budgets - to the upcoming season's
programs. Although the seasonality of network television has diminished and new programs
are introduced at any time of the year, fall is still an important time for networks to introduce
new programs. The advance market still exists, albeit to a smaller degree: during the fall of
2013, approximately 33 percent of network buys were made in advance. Scatter buying
follows the advance period, occurring in the month or so before departure. About a week
before a program goes on the air, opportunists buy leftover slots. In both the open and stock
markets, savvy advertisers ask for "opt-out" options so that ads can be canceled if the new
program fails.
Placing a television advertisement in the local market is known as buying a spot.
Spot buying is similar to the process of stock splits, although last-minute opportunities are
also available. Local spots are available in both network and syndicated programs (such as
wheel of fortune), and in locally produced programs such news.
20.4. AUDIENCE STEPS:
Broadcast audiences are measured from rating services, which in the case of
television are mainly provided by Nielsen. As these audience surveys use a sample of the
total audience, the research determines the percentage of the audience, and most audience
measures are reported as percentages. Nielsen uses the concept of designated market areas
(DMAs) to measure private markets; a DMA is the entire area where most households
receive their television from a particular market, such as the Chicago DMA, which stretches
into most of northern Illinois as well as parts of Indiana, or the Albuquerque DMA, which
includes most of New Mexico and small portions of several bordering states. You can view
maps of all the Christmas DMAs through an Internet search for "Nielsen DMA map."
Households using television (huts) is the percentage of all television households that
have a television operating at all times. If you are more interested in individuals than
families, people using television (PUT) is the percentage of television viewers watching at
any given time. Program rating, usually just called rating, is the percentage of all television
households that watch specific programs or networks. This percentage can be derived from
the entire US television market or from individual Christmases.
Audience count, which is usually just called percentage, is the percentage of the
cottage that watches a particular program, station, or network. Ratings and share actually
count the same audience: those with sets on and tuned in for a particular program, station, or
network. The difference between them is that share is households or people as a percentage
of sets that are on, while ratings are the same households or people as a percentage of all
television households, whether they are on or not.
If you count all the ratings for all the programs you advertise, your sum is measured
as gross rating points (GRP). If you do the same only for the ratings of your target group,
your sum is measured as target rating points (TRP).
The projected audience is determined by taking the percentage of the ratings survey
and projecting them onto the total audience to estimate how many households or people are
watching; this is an approximate number, not a percentage. You can also conduct research to
show audience size tracking on a minute-by-minute basis. And, of course, advertisers are
often interested in the composition of the audience, often in terms of demographics.
Nielsen has been tracking digital video recorders (DVRs) since 2005. The service
reports estimated ratings for live viewing and all DVR viewing until 3 a.m. after the
program first airs (called live+SD for live plus same day), and for live viewing plus all DVR
viewing for three days (live+3D) or seven days (live+7D) after the first program airs. This
can increase numbers from 30 to 75 percent.
Nielsen also provides a trick called C3 or C+3, which is the average commercial
viewing during a show for live viewing and up to three days of DVR viewing. Advertisers
request these commercial ratings to figure out how many people are watching their ads, as
opposed to how many people are watching the program. Nielsen's extended screen system
captures viewing on TVs and computers and reports it into a single C3 rating. This requires
an episode or broadcast to have the exact same commercial structure on air as online.
These measures are important because "live" television viewing has declined, and
some estimates suggest that less than 50 percent of television programs are watched live. In
addition, many people use a variety of devices to access television content. While most
Americans still use television sets with cable or satellite access, many viewers now watch at
least some of their programs on computers or other devices such as tablets and smartphones.
20.5. DATA COLLECTION:
National television ratings were collected through small devices called human
meters, which were connected to televisions in selected homes. Each family member in a
sample household is given a personal viewing button that identifies each household
member's age and gender. Using a remote control, people can log in if the TV is turned on.
The data is transferred nightly to Nielsen.
Local ratings surveys are collected through diary forms sent to a sample of
households in local markets across the country that allow people at home to track their
viewing. This information is collected as many as four times a year in the largest television
markets, and perhaps only three or even twice a year in smaller markets. The ratings survey
period is known as ratings assessment, and Nielsen leads it in November, February, May,
and August.
20.6. COMMERCIAL FORMAT:
The traditional ad format is the 30-second ad (abbreviated as :30). This is a change
from 50 years ago, when the standard was :60. Today, a number of different offerings are
available on network and digital television, including units that last only 10 or 15 seconds as
well as those that are 60 or 90 seconds long.
20.7. BUYING BROADCAST ADS:
The commercial breaks during which ads run are called commercial pods and can be
up to eight different types of ads. Networks tend to rotate advertisers through the pods-so if
you buy a spot in a weekly program for seven weeks, you might have the first pod position
during the first week, the second during the second week, and so on. The first or last pod
position is usually considered the "better" position, as there is a good chance that someone
will see at least part of that ad before changing channels, or before returning to the program
after leaving the commercial pod for other reasons. The more ads in a pod, the more viewers
are exposed to clutter, which overall reduces ad search.
If your ad is not run properly, such as without sound, or if there are mechanical
problems with your ad, you are usually offered a make-good offer, which is the chance to
run the business again for an equivalent period of time. You are not obliged to take the
make-good, and you can cancel the purchase instead; you will not have paid anything for the
spot. After all, if you run a political ad on election day, for example, you wouldn't want to
make-good on a specific date in the future after the election is over.
RADIO AUDIO MEDIA:
In many ways, radio operates like television, although there are some differences
worth discussing. Network programming is less common in radio; there are more
independent stations in radio than television. In some cases, radio personalities (announcers
and hosts) are an important factor in attracting audience attention. And terms like prime time
and fringe do not apply to radio; instead, other time periods dominate the listening period,
with different terms, as shown in Exhibit 21.1.
21.1. RADIO TYPE:
Radio networks are similar to TV networks in that stations are affiliated with content
providers. Often, the content is quite specific: for example, there are radio networks for
sports fans such as the Dallas Cowboy Radio network and Fox Sports Radio, along with
other niches such as Business Broadcast Radio Network and Univision. Some of these
networks provide a significant level of programming; others (like the Cowboy Radio
network) only provide specific coverage that may be seasonally driven. And many of these
networks provide what would be considered syndicated programs such as American Top 40
and House of Blues.
21.2. SPOT:
Most radio advertising happens on local stations; these are known as radio spots.
Advertisers can find the best stations to reach their targets, and most clients choose a
combination of four to 10 stations to run their ads. (The number varies by market size, and
larger markets usually have more stations to choose from.) Many local stations also live
stream content them over the Internet, either on their own websites or through other digital
services.
21.3. SATELLITE:
The merger of Sirius and XM in 2008 created a satellite-based direct-to-video
broadcast. Encoded digital material is broadcast to receivers from orbiting satellites or from
repeater stations. To listen to satellite radio, consumers need a specialized satellite receiver;
some automakers offer receiver services in new vehicles. Subscriptions are sold to the entire
network or to specialized networks such as music, kids, talk, sports, and so on. The service
provides a wider variety of music programs than AM/FM radio stations, and the
programming contains far fewer advertisements because revenue is primarily based on
subscriptions.
21.4. ONLINE RADIO:
Besides live broadcasts from terrestrial radio stations over the Internet, music stream
programs such as Pandora and Spotify are the only offerings that feature personalized
experiences and comprehensive selections. Pandora and similar stations (such as Jango and
Lazy) allow users to create their own "radio channels" based on user-selected artists: the
channels intuitively generate upcoming songs based on user endorsements of the selection.
Spotify and similar stations (such as Grooveshark) differ in that they provide an unlimited
selection chosen by the user. Services are generally available with free advertising, or with
reduced advertising for a monthly fee that ranges from $5 to $10. Advertising opportunities
include traditional radio ads as well as visual banners that will accompany them.
Radio stations attempt to sell blocks of ads, which typically contain 30 or 40 ads or
more each week. But, for many advertisers, that pattern may not reflect the best opportunity
for radio advertising. For example, in retail trade, if a big sale is planned, the best pattern is
to run 60 to 70 percent radio ads for the first day of the big sale and then keep the balance to
promote the next biggest sale day. For a sale that runs Wednesday through Sunday, use most
of the money to promote the Wednesday opening and put the rest towards Saturday, which
will most likely be the next biggest sale day.
In any advertising, the most important consideration is to choose the time and space
that best suits your needs, not necessarily that of the sales rep pushing or the one with the
attractive package price.
21.5. AD TYPE:
Radio commercials are spot-produced or read live; and, some spot productions may
take place during periods of silence, known as donuts, so that local broadcasters can make
short announcements live during the show.
In a live broadcast, the on-air announcer reads the advertiser's spot on air. This can
be delivered through a script, a fact sheet, or an addition from the broadcaster's personal
knowledge. A live reading can also be an endorsement, when the on-air announcer
personally recommends the advertiser's product or service during the show.
Most spots, however, are produced spots, where either the station or the ad agency
records the spot for the client. This allows the use of music, sound effects, jingles, and such.
21.6. RATING:
Radio ratings are generated by a company called Arbitron, which collects data by
selecting a random sample of the population across the United States and giving respondents
a diary to record their listening habits over a specific period (generally, seven days).
Respondents are paid a small cash incentive for their participation. Arbitron releases data
several times a year. In 2007, Arbitron introduced a portable meter (PPM)-a wearable device
similar to a beeper. The PPM collects inaudible codes that identify the source of the
broadcast the user is listening to (i.e., a specific radio station). Recruited consumers wore the
meters for between a year and two years, with data released monthly. PPMs are used in 48
radio markets.
Key ratings data includes cume (number of unique listeners during a given period),
AQH (number of people listening in a given quarter-hour or 15-minute period), and TSL
(time spent listening - average amount of time spent listening) listeners listening to a station
at a time before changing the channel or turning off the radio). Cume counts listeners at one
time, while AQH is the product of cume and TSL. For example, if you look into a room and
see that your brother and father are listening to a baseball game on the radio, then 15
minutes later look and see that your brother has left the room and your mother has entered,
the cume would be 3 (father, mother, brother) and the AQH would be 2 (an average of two
people in the room within 15 minutes).
21.7. DAYPARTS:
Unlike television, which sells specific programs, radio stations sell days. The
daytime includes the morning drive (approximately 5.30am to 10am), Midday (10am to
10pm), and the afternoon drive (10am to 10pm).
to 3:00 pm), Afternoon commute (3:00 pm to 7:00 pm), Night (7:00 pm to 12 midnight) and
overnight (12 midnight to 5:30 am). Although the daytime schedule may vary from station
to station and market to market, most stations have the same turn schedule and sell their
advertisements accordingly. The two most popular days are the morning and evening drives,
when people commute. As a result, ad rates are most likely higher during these times.
Ratings may also change in the time of year. As more people are out and about
during the summer months, the number of listeners is higher, and the rates may reflect that.
Advertising numbers also vary based on the length of the spot. Available include 60-second
spots (which are standard in the industry), 30-second spots, and even 10- and 5-second
commercial units. The latter is known as "flashing"
Today, many media planners wonder if radio as an advertising medium will survive
given other more affordable and interactive options. Radio has consistently been a key
player in many media plans for local retail businesses (such as car dealerships, banks, fast
food outlets, and so on) and will most likely remain a viable medium for such businesses in
the future. Radio stations also participate in services such as iHeart
PRINT MEDIA:
While recognizing the different types of media, it is important to remember that
many types of media overlap with others. For example, newspapers are a traditional print
medium, but their content can be read on the internet and also on tablets or mobile devices.
In fact, many newspapers have larger online audiences than traditional print readers. So,
when we talk about print, it's really the origin of the medium that we're talking about. This
chapter is about printed media: newspapers, magazines and similar publications.
22.1. NEWSPAPER:
When we read a newspaper, we usually think of the typical daily news. A daily
newspaper is published at least four days each week, but most newspapers come out all
seven days of the week, or perhaps every weekday, or weekday plus one weekend day.
Publishing can be a combination of internet and print or just an online version of the original
printed newspaper.
A weekly newspaper is a newspaper that is published three days or less per week. A
local newspaper published twice a week is still discussed weekly.
There are other types of newspapers as well, such as college newspapers, ethnic
newspapers, foreign-language newspapers, and "shoppers", which are often free distribution
papers filled with local classified advertisements.
1) Types of Advertisements in Newspapers:
Two types of ads dominate the commercial print side of newspapers: display ads and
classified ads. Perhaps it will be easier to distinguish between the two types if we start with
classified advertising.
Classified ads are so named because they are organized by classification. Ads also
known as "want ads" are smaller ads, usually for the back of the newspaper, organized so
that potential buyers can easily find the category they need, such as used cars, part-time jobs,
lost pets, and garage sales. Although online products like Craigslist have become a large
source of revenue from classified markets, it remains a strong source of revenue for many
newspapers.
Display ads are regular advertisements, characterized by larger-sized ads found
throughout the newspaper. However, the boundaries between types of ads are disappearing,
and most newspapers will now accommodate "classified displays", which are larger
announcements, like other display ads, but still in the same category as other classified ads.
One of the problems in placing advertisements nationwide using multiple
newspapers is that newspaper sizes are not uniform. Some use five columns, some use six or
seven or eight, and column lengths also vary. This wide variety complicates the creation of a
single advertisement and its appearance in multiple newspapers. To help solve this problem,
a standardized advertising unit (SAU) was developed; this brochure contained some
standardized sizes of newspaper advertisements so that an announcement of a particular size
would fit into most newspapers, although in some newspapers there may be additional space
around the ad. By using regional, area and national ads, advertisers can place ads in almost
all US newspapers, without the need to resize the ads for each newspaper.
Another aspect of advertising in newspapers is digital advertising. Newspapers offer
a variety of digital ad units plus the opportunity to sponsor contain pages. Typical digital ad
units include skyscrapers, vertical and horizontal banner ads, and boxes. Newspapers offer
ads the opportunity to play videos on their sites, so pre-roll ads are starting to creep into the
print world.
In addition, newspapers are moving to apps. This gives ads the opportunity to engage
newspaper audiences in more dynamic ways, including video as well as rich media ads.
2) Ad Size in Newspapers:
Newspaper print space is usually sold by the column-inch column, which is a
measurement of column-width space by one-inch height. Therefore, an ad that is six inches
tall and three columns wide totals 18 3-inch column inches (6 3-inch column inches = 18
column inches). However, bear in mind that every newspaper has its own size. different
buffers, which means ad sizes can vary from newspaper to newspaper; that's why SAU was
developed. What advertisers buy is space; don't think of ad sizes as types, as some spaces
may be left empty.
Newspaper fish can also be purchased in larger quantities, such as quarter-page, half-
page, and one-page ads. Again, these sizes vary from newspaper to newspaper.
3) Advertising Rate on Newspapers:
Most advertising media offer discounts to advertisers based on various factors. For
all media including newspapers, the fl number indicates that no discount is available; No
matter how much advertising is purchased, the price will not change. There is a discount
indicating that there is a discount, although there is also a discount; this is the highest rate
charged before the discount starts to be applied to the advertising cost. If advertisers look at
the open rate, they know that a discount can eventually be obtained.
For all media, advertising rates are listed on the rate card, whether there is an actual
printed card or just an online list of advertising prices.
Combination rates apply when a single broadcaster owns more than one newspaper,
offering lower advertising rates to advertisers using multiple chain papers.
If an advertiser signs a contract for advertising space, an anticipated final discount
may be built into the contract. If the advertiser is unsuccessful in obtaining the discount in
the contract, the advertiser will have to pay the difference in cost, known as the short rate -
that is, the money paid from the advertiser to the newspaper because the advertiser failed to
advertise the contractual discounted price. Similarly, if the advertiser uses more advertising
than anticipated and obtains an even better discount than stipulated in the contract, there
may be a rebate paid from the newspaper to the advertiser. Short rates and rebates are terms
that apply to all media, not just to newspapers.
Newspapers are bundling print advertising with digital advertising. Just like any
other media, newspapers offer multiple ways to acquire their content. This has prompted
newspaper sales and marketing staff to create integrated print and digital programs for their
advertisers.
22.2. DISCOUNT TYPE:
For all media including newspapers, the amount of discount is based on the amount
of advertising purchased as time passes; as advertisers use more space or time for
advertising, a larger discount may be obtained, resulting in reduced advertising costs.
Frequent frequency discounts for advertisements. Continuity discounts are acceptable for
regular advertisements. The difference between frequency and continuity is the same;
frequency applies to the total number of ad placements, while continuity applies to regular
placements, such as every week or every day. Dollar volume discounts are also a way for
newspapers to reward advertisers who increase their spend in both print and online.
22.3. NEWSPAPER PREFERENTIAL RATES:
In print media, color costs extra because it involves additional steps in the printing
process. Black ink is included in the advertising space, and then one or two or three extra
colors cost more; Printing is black and three colors, known as a four-color process (although
black is not considered a color in printing). Color can be added in advance (known as pre-
press) or during the regular printing process (known as ROP color, for paper or press layers).
Spot color is exactly that: a few dots of color, like a border or headline. Process color uses
small dots of color to create a color image.
Position in the printed publication can mean additional costs for advertisers, who
may be willing to pay more to ensure that a particular ad is in a particular place - for
example, the sports section or the recipe section of the newspaper. Attitude on the page can
also come at an additional cost; most ads are at the bottom of the page, so an advertiser may
be willing to pay more to ensure that the ad is not "buried" or surrounded by other ads.
22.4. NEWSPAPER CIRCULATION AND READERSHIP:
Circulation is the number of copies of a publication that are actually distributed.
There will be some extra copies that are not sold, and some free copies that are given to
advertisers to prove that the advertisement appeared as ordered. Advertisers are usually
interested in paid circulation - that is, the number of copies delivered to paying readers.
Advertisers are also interested in audience size, which is the number of people who actually
read the publication.
Many major newspapers offer city-zone editions, which are broadcast in the central
city and any blighted areas that seem to match the city itself. Often, there are separate
suburban editions for other areas, where advertisers want to know the circulation in the retail
trade zone (RTZ), the entire area where people live who do their main shopping in the city
zone. Other advertisers may want total market coverage (TMC), with ads reaching every
household in the market.
Newspapers also measure the number of unique visitors to their digital newspapers.
This is a key measure of the newspaper's overall reach. These audience numbers for
newspapers are provided through third-party research services. Scarborough Audit and
Media are two local Media measurement services that provide readership information for
print. These sources allow advertisers to better understand the dynamics of newspaper
readership for both print and digital versions.
22.5. MECHANICAL MOLDING CONSIDERATIONS:
As mentioned earlier, an advertiser may sign a contract to indicate how much and
how often advertisers place ads with that medium. Whether there is a contract or not, ad
placements are accompanied by an insertion order, telling how and where and when the ad
will appear. These terms are used with all media, not just print.
Newspapers offer advertisers a tear sheet, which is a page torn out of the newspaper
that actually contains the advertisement being run. Do not confuse tear sheets with proofs. A
proof is an advance copy of the advertisement or page provided, so that the advertiser can
check the advertisement to ensure its accuracy.
22.6. BUYING ADVERTISING SPACE IN NEWSPAPERS:
Remember the following definition: there are frequent ads, and repetition is using the
same ad more than once. It is possible to have frequency without repetition and also to have
repetition without frequency. Not many ads can be generated just once or a few times, so
frequency is an important factor. Large size ads attract more readers than small ads.
Many advertisers believe that ads on the right page of a publication are more eye-
catching than ads on the left page. Similarly, they believe that ads at the front of a
publication are better than ads at the center or back. By Because of this, they often mention
"right page, way ahead", even though research shows that these factors are not much better
in newspapers.
We have seen that ads at the top half of the page may have less competition than
other ads. That the ad is near the "gutter" (the center of the layout where two pages meet)
does not matter with newspapers.
The timing of newspaper ads depends on the shopping patterns of the audience. For
example, most newspapers can tell you which days are their "best food days", when national
food advertisers and local grocery stores run the most ads. Car tires may do best on
Saturdays, when more readers have time to buy tires.
22.7. PRINTED INSERTS:
One of the bright spots in newspaper advertising is pre-printed inserts. Pre-printed
inserts are usually retail inserts that are inserted in daily or weekly newspapers. As a result,
the newspaper becomes a delivery vehicle for other advertisements. The popularity of the
pre-printed insert among retailers is a driving force in its importance. Printed inserts can
account for up to 70 percent of the total revenue for Sunday newspapers. Because
advertisers can send pre-printed images through the newspaper's delivery route, they can
customize sales messages to different geographic parts of a city. Research has shown that
users value before print. Some consumers buy most newspapers to access these inserts.
22.8. CONSUMER MAGAZINE:
There are several types of magazines. Consumer magazines are discussed in this
section. Business publications are also magazines, but their use and structure are somewhat
different from consumer magazines, so they can be grouped separately. Agricultural
publications are often amalgams of consumer magazines and business publications, so they
have traits from both categories.
Consumer magazines are publications that are general in nature - both interest and
special interest. The days of general interest magazines are largely over, with only a few
survivors like TV Guide and Reader's Digest. Magazines carried by newspapers, such as
Parade and the weekend ace, were also general interest magazines. Most magazines today
are special interest publications, and there are magazines that can cover almost anything of
interest, from model railroads to retirement locations to gaming. The largest circulation
categories for magazines are women's interest publications and health and beauty
publications.
The magazine subtype includes regional and metropolitan (metro) editions, which
are circulated in limited areas within the broader circulation of major national magazines.
International editions of some publications are available, sometimes simply translated and
other times thoroughly edited. Audience-specific editions are also published, such as news
magazines or college sports magazines that carry advertisements that may not appeal to a
general audience.
Just like newspapers, magazines have entered the digital arena. Most circulation
publications offer online content, either with tablet and/or mobile editions.
22.9. CIRCULATION AND AUDIENCE:
Magazine circulation, like newspapers, is measured by the number of magazines
broadcast, either to subscribers or through sales at newsstands. The primary audience cheats
the people who received the publication because they subscribed or bought it, and the
secondary audience, also called the "pass-along audience", cheats the people who obtained
the publication from others.
Some audience concepts apply to all advertising media, but are perhaps easiest to
understand when applied to magazines. Accumulated audience (cumulative audience, or
cumulative) is the total number of people who see or hear an advertisement at least once in a
media vehicle (in this case, in a single magazine), even though this campaign may appear in
multiple vehicles. Subscribed audience, measured as internet reach, consists of all the people
who were exposed to the ad at least once in a combination of vehicles - for example, when
four magazines are used in a campaign. Doublers (also called dupes) are defined as people
who were exposed more than once to the ad in a campaign. If we count every time the ad
was seen by the entire audience across all media vehicles, that number is referred to as total
audience impressions (TAI), also known as audience or repulsive impressions. The average
number of times an audience member is exposed to an ad from that campaign is called
average frequency or average exposure.
Mediamark Research Inc. (MRI, first discussed in chapter 7) is a major third-party
audience measurement service for the consumer magazine industry. Simmons Market
Research (SMRB) historically started as a print measurement service but has now expanded
to offer specialized research services. Through MRI, a media planner can find out the
audience dimensions of various publications. Since MRI also collects the habits of branded
respondents, a media planner can analyze that details of how many brand users read specific
publications. This type of information is crucial for making magazine buying decisions.
22.10. FREQUENCY AND REPETITION:
Like newspapers, consumer magazines measure the frequency of how many times
people see or hear an ad during a campaign, whether the same ad is repeated. Repetition
refers to using the same ad more than once, whether or not it is done frequently. In general,
frequency is better to reach; that is, people need to be exposed more than once in a
campaign, so it may be better to be delivered to the same audience rather than expanding the
audience.
A. Ad Position:
Again, like newspapers, many advertisers request that their ads be on the right-hand
page, way in front of the publication. In fact, research shows that left or right page
placement has little effect, and placement on the front, center or back page has little effect
either. It doesn't matter whether the ad appears in a thin or thick issue of the publication.
What determines who reads the ad is the theme of the ad, the interest of the audience, and
the size and frequency of the ad. Remember, these characteristics are for consumer
magazines; later in this chapter, we will see how the results differ when business
publications are involved.
B. Cost Considerations:
Like all print media, color advertising in magazines requires additional costs; of
course, color is now expected for television and cinema advertising, so there is no need to
incur additional costs. In magazines, the illustration may immediately stray from the edge of
the page (known as bleeding), and is more expensive than printing magazine ads with
unprinted borders.
C. Magazine Ad Size:
The largest regular magazine size is the size of old life magazines, so they are called
life-sized pages, about 12 inches to 15 inches. Most magazines are printed in an 8-inch by
11-inch format or a 10-inch by 8- or 9-inch by 10-inch format, roughly the size of Time
magazine, called time-sized pages. Smaller magazines use a 5-inch to 8-inch format, the size
of Reader's Digest, and are called Digest-sized pages.
If a time-size ad is placed on a life-size page, it is called a "junior unit," and a Digest-
size ad on a time-size page is a "Digest unit." This allows advertisers to use printing plates in
more than one publication size and allows the magazine to place ads or other editorial
materials on the page, so the cost is often lower.
D. Insulated Edition:
To test different versions of an ad, an advertiser may request that the ad version be
split in two, as different versions of the ad are placed in different sections of the audience.
By measuring the sales response, the appeal of the ad or message can be measured. Split
runs can be used for different parts of a city through local newspapers or for different parts
of the country through regional magazine editions.
E. Magazine advertisement deadline:
The deadline for placing an ad in a magazine may be months in advance of
publication. The publication date is when the magazine is printed and distributed - often first
to newsstands and then to subscribers. The cover date is usually set a few weeks or a month
in advance, to let newsstand operators know when to delay publication and expect a later
edition.
F. Business Publications:
In most respects, business publications and agricultural publications are similar to
consumer magazines, so there is no need to repeat all the information that applies to all of
them. Nonetheless, there are some differences for business publications that should be
observed.
Business publications are categorized as (1) vertical publications, which reach all
levels within a single industry, such as the advertising age; and (2) horizontal publications,
which are meant for a single work function within a cross section of the industry, such as
sales & marketing. Sometimes, business publications are categorized as industrial
publications, which appeal to specific industries; institutional publications, which are
intended for those working in institutions such as prisons, clubs, or colleges; professional
publications, which are addressed to specific professions; and merchandising publications
(also called trade letters), to assist in marketing efforts. These categories may not be
exclusive; Advertising Age is an industry publication, a professional publication, and a
merchandising publication.
Business publications can be true thought leaders in their respective industries. Oil &
Gas journals are standard bearers of the energy industry. As a result, at the Offshore
Technology Conference (OTC), there is a major trade company that influences the oil and
gas industry. Business publications can be trusted industry sources and carry a lot of weight
as marketing vehicles.
G. Advertising Level:
And like other media, business publications offer quantity discounts, often called
bulk rates, and frequency discounts, sometimes known as frequency rates. Many business
publications are published monthly and offer per-issue rates, based on the number of issues
used so as not to be confused with frequency, based on the number of ad insertions.
Most advertising media offer rate protection policies so that advertisers with
contracts will not increase their rates during the term of the contract, although they may
benefit if rates decrease.
Magazines usually charge premium prices for ad placements on the outside front
cover (cover 1), inside front cover (cover 2), inside back cover (cover 3), and outside back
cover (cover 4).
Ads that are inserted into the publication and do not appear on regular pages are also
usually more expensive. Inserts can be incorporated into a publication or simply tucked
between multiple pages.
Color levels, short rates, and rebates may apply, just like with other types of
publications.
Business publications offer a variety of marketing services. We previously
mentioned that helping to develop trade proofs is one aspect of certain publications. Since
the audience of business publications is highly valued, these publications sell their
subscriber lists to advertisers to conduct direct marketing campaigns.
H. Distribution:
Many business publications are distributed for free, and the revenue comes solely
from advertising (called free circulation); others charge for a subscription and a single copy
(called paid circulation). Some publications regulate who can receive their publications
(controlled circulation), whereas others do not. A publication that is delivered to subscribers
through a business may use franchise circulation, or "paid for distribution", because if a
broadcaster sells the magazine in bulk to the business, which then gives it to good
subscribers freely.
I. Inspection:
An examined copy of a magazine serves the same function as a tear sheet of a
newspaper: to prove that the ad works as intended. Many publications include a business
card, which can also help gauge audience response.
J. Frequency and Repetition:
Frequency is important for successful advertising in business publications, such as in
newspapers and consumer magazines. Research has shown that frequent and persistent
business publication advertising helps increase readership and recognition, generates buyer
inquiries, and helps build brand preference.
Additionally, business advertising can help increase an advertiser's voice (SOV),
which is the percentage of messages in an industry category that come from a specific
advertiser or company.
Business publications have specific monthly and seasonal response patterns, so
advertisers need to know the readership patterns within a particular industry and also for a
particular publication.
K. Buying Ads:
Unlike newspapers and consumer magazines, ad placement (positioning) in business
publications is an important factor. Ads are more effective in the front quarter of the
publication, as well as more effective on the right-hand page and when facing other ads,
rather than facing news and editorial material.
There are thousands of business publications, making it difficult for media buyers to
become familiar with all of them. Many business publications present a form of media data
that provides insights into the publication, readership, and editorial and advertising policies,
which can help media buyers determine how well the publication matches target groups and
advertising objectives.
22.11. THE FUTURE OF PRINTING:
In the last five years, many have written as a viable medium. No wonder why. In
2014, primary advertising revenue for newspapers was cut by almost 50 percent compared to
2008. Magazine pages also dropped 32 percent altogether. Yet, for all the doom and gloom,
there are hopeful new signs of change. Week newspaper circulation has stabilized and is on
the rise. Magazine ad page sales seem to have turned a corner. More importantly, original
print content providers are recognizing that they are offering superior, premium content that
consumers want to pay for.
One of the key trends is the move to obtain a more even balance of advertising
subscriptions. Net income has been heavily weighted towards advertising, with more than 85
percent of total revenue coming from this source. Two important things are changing the
landscape. For newspapers, it is the realization that providing free online content is not the
path to success. More and more newspapers are moving to digital subscription plans, and
about 40 percent of the 1,380 daily newspapers in the United States already use digital
paywalls. After a few free online articles sample consumers, they have to pay to read more.
Have found success through the use of tablets. Rather than ignore, magazines use tablet
subscriptions as a way to raise prices. As of this writing, consumers embrace it.
Another major trend in the print world is the addition of digital dynamics to the
medium. Ads containing QR codes allow consumers to scan the ad with their smartphones to
view videos. Tablet ads contain a direct link to the advertiser's website. A one-dimensional
medium has now become much more dynamic.
22.12. SUMMARY:
In short, print is here to stay. Like other media, the content may be distributed in a
number of platforms, but it will have a home. Despite the movement towards digital
publishing, printed newspapers and magazines continue to have a place in the media.
