MARKETING COMMUNICATIONS PROJEC

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chapter_8_traditional_media_channels.pptx

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Chapter Eight

Traditional Media

Channels

Chapter 8 examines traditional media, which includes broadcast media of television and radio, outdoor media, and print media of magazines and newspapers.

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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

The Super Bowl has become a showcase for new advertising with many individuals watching it just to see the new ads. The Super Bowl is watched by more than 100 million people. Ads shown on the Super Bowl generate online buzz during the game and immediately following the game. People talk to each other via cell phones, social media, and e-mail about the ads. The cost of a 30-second is now $3 million. GoDaddy.com has used the Super Bowl to build its business. Each year the company creates sexually controversial ads that are banned from the network. These ads are immediately posted on the Web, which drives traffic to their Web site. Some of the ads, or portions of the ad, or shown on news programs. The rejected ads may generate as much buzz as the ones that were shown during the game.

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Media Planning

Analysis of target market

Focus on consumer behavior

Understanding purchase process

Study media choices

Listening and viewing habit

Media planning begins with a careful analysis of the target market. It involves understanding the process they use in making purchases, the consumer behavior events that guide those choices. It involves studying the media choices the target market makes and understanding their listening and viewing habits. To match the media to the target market requires understanding the target market.

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People Involved in Media Selection

Media Buyer

Media Planner

Client

Account

Executive

Creative

Account

Planner

The media planner formulates the media program stating when and where ads will be placed. Media planners work closely with the creative staff, the account executive, account planners, and media buyers. The creative needs to know which media will be used and even the media vehicle as the ad is being prepared. The media buyer takes the media plan and purchases the actual space and time.

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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)

Reach represents the number of people, households, or businesses in a target audience that are exposed to a media vehicle or message schedule at least once during a specified time period, which is usually 4 weeks. Frequency is the average number of times an individual, household, or business is exposed to a particular advertisement within a specified time period, again usually within 4 weeks. Opportunities to see (OTS) refers to the cumulative exposures achieved in a given time period. A brand that places 3 ads on a television show that is televised weekly will produce 12 OTS (3 shows x 4 weeks). Gross rating points (GRPs) measure the impact or intensity of a media plan. Gross rating points are calculated by multiplying a vehicles rating by the OTS.

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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 / vehicle’s rating

Weighted CPM

Continuity

Continuous campaign

Pulsating campaign

Flighting (or discontinuous) campaign

Impressions

Gross impressions – total audience exposed to ad

Costs for media is often per one thousand (CPM), which allows for easy comparisons across vehicles and even media. Ratings measure the percent of a target market that is exposed to a medium. Cost per rating point allows for comparisons across media. It is calculated by dividing the cost of the media buy by the vehicle’s rating. An alternative is to use the weighted (or demographic) CPM, which is calculated by multiplying the cost of the media buy by 1,000, then dividing by the actual audience reached. Continuity refers to the exposure pattern or schedule used in the campaign. A continuous campaign uses media in a steady stream throughout the entire campaign. Pulsating has expenditures throughout the entire campaign, but will also have bursts when extra spending occurs. Flighting (or discontinuous) spends money on media at different times during the campaign and none at other times. Gross impressions represent the total exposures of an audience to an advertisement. If an ad was shown four times on a television show with an audience of 2 million people, then the total gross impressions would be 8 million.

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				Target Market (20 Million)
	Cost 4-Color Full-Page Ad	Total Readership	CPM	Percent of Readers Fit Target Market	Number of Readers Fit Target Market	Rating (Reach)	Cost per Rating Point (CPRP)
Glamour	$842,658	18,354,000	$45.91	13.51%	2,480,000	12.4	$67,956
National Geographic	$346,080	21,051,000	$16.44	16.25%	3,420,000	17.1	$20,239
Newsweek	$780,180	15,594,000	$50.03	11.93%	1,860,000	9.3	$83,890
People	$605,880	21,824,000	$27.76	6.87%	1,500,000	7.5	$80,784
Southern Living	$11,370	5,733,000	$1.98	10.81%	620,000	3.1	$3,668
Sports Illustrated	$965,940	13,583,000	$71.11	12.96%	1,760,000	8.8	$109,766
Time	$1,324,282	21,468,000	$61.69	11.65%	2,500,000	12.5	$105,943
Travel & Leisure	$183,216	2,205,000	$83.09	12.70%	280,000	1.4	$130,869

T A B L E 8 . 1

Hypothetical Media Information

for Select Magazines

This table provides hypothetical media information for select magazines. The CPM is calculated by dividing the cost by the total readership then multiplying by 1,000. For this example, the target market consists of 20 million. The fifth column identifies the percent of the readership that fits the target market. For example, 13.51% of Glamour’s readership fits the target market of this product. The next column is the 13.51% times the total readership for Glamour, which means 2.48 million readers of Glamour fit the target audience for this product. The rating (reach) is the number of readers who fit the target market divided by the total market (20 million). For glamour the 2.48 million was divided by 20 million yielding a reach of 12.4, or 12.4%. Thus, 12.4% of the target market reads Glamour. The cost per rating point is the cost of the ad divided by the rating. For Glamour it is $842,658/12.4.

Sample Media Kit

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http://www.rachaelraymag.com/rrmag/files/legal/ EDWRR_MEDIA_KIT.pdf

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Achieving Advertising Objectives

Three-Exposure Hypothesis

Clutter, 3 exposures not enough

Selective attention and focus

Recency Theory

The three-exposure hypothesis was introduced by Herbert Krugman. The hypothesis states that it takes at least 3 exposures to an ad for it to have an affect. It also is based on the idea that advertising has intrusion value, that is viewers will pay attention to an ad even if they don’t want to. Most advertisers feel three exposures are not enough and that advertising today does not always display intrusion value. Consumers have selective attention and focus. They pay attention to only certain ads. According to recency theory, one ad exposure may be enough if the person has an interest in that product or for some other reason pays attention to the ad. Recency theory suggests advertising needs to be continuous since most of the time ads are ignored. According to recency theory, increasing exposure through adding reach is more important than adding frequency.

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Television Table 9.2

T A B L E 8 . 3

Television

Advantages

High reach

High frequency potential

Low cost per contact

Quality creative opportunities

High intrusion value

Segmentation possibilities through cable outlets

Disadvantages

Greater clutter

Channel surfing during commercials

Short amount of copy

High cost per ad

Low recall due to clutter

Television for many years had the reputation of being the glamour advertising medium. To some, TV still remains the best medium. But, its luster has faded for many products. A survey by Nielsen notes that the average consumer watches 31 hours of TV per week. This table summarizes the advantages and disadvantages of TV. It can reach a large audience at a relatively low cost per contact, but that overall cost is high for many brands. Clutter is the number one problem facing TV. Channel surfing and shifting to other media are also concerns.

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T A B L E 8 . 4

Radio

Advantages

Lower cost per spot than television

Low production cost

Music can match station’s programming

High segmentation potential

Flexibility in making new ads

Able to modify ads to fit local conditions

Intimacy (with DJs and radio personalities)

Creative opportunities with music and other sounds

Mobile: people carry radios everywhere

Disadvantages

Short exposure time

Low attention

Few chances to reach national audience

Target duplication when several stations use same format

Approximately 80% of Americans still listen to radio. Radio still reaches about 93% of Americans. Radio is especially important for smaller, local businesses. This table identifies the advantages and disadvantages of radio. Audiences can be segmented based on station format and many listeners form an attachment to DJs. The major problem is short exposure and low attention. Radio is often used as background music.

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T A B L E 8 . 5

Outdoor

Advantages

Large, spectacular ads possible

Able to select geographic areas

Accessible for local ads

Low cost per impression

Broad reach

High frequency on major commute routes

Disadvantages

Legal limitations

Short exposure time

Brief messages

Little segmentation possible

Cluttered travel routes

Outdoor media is more than just billboards. It includes signs on cabs, buses, park benches, fences of stadiums and arenas, and even a blimp flying over a major event. Advances in technology have dramatically changed outdoor advertising. This table shows the advantages and disadvantages. Outdoor has the advantage of geographic selectivity and is excellent for local ads, broad reach, and a low cost per impression. The problem is a very short lead time, especially for billboards on highways so the message has to be extremely brief.

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F I G U R E 8 . 7

Expenditures on Outdoor Advertising

Source: Adapted from “Outdoor Advertising Expenditures, 2009 January-June,” TNS Media Intelligence/CMR OAAA, September 2009.

Services and amusements are the big spenders on outdoor advertising. The next largest category is transportation, hotels, and resorts.

Services & amusements Transportation, hotels & resorts Retail Restaurants Communications Media & Advertising Insurance & real estate Financial Automotive Dealers & services Government, politics & orgs 1042.0 602.0 528.0 514.0 514.0 452.0 420.0 370.0 294.0 276.0

Expenditures in Millions

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T A B L E 8 . 6

Magazines

Advantages

High market segmentation

Targeted audience interest by magazine

High color quality

Long life

Direct response techniques

Read during leisure time

Longer attention to ads

Disadvantages

Long lead time for ads

Little flexibility

High cost

High level of clutter

Declining readership

Magazines can still be the best choice for advertising. Research indicates magazines are a strong driver of purchase intentions and visits to Web sites. Magazines work especially well when blended with other media. Magazines offer high segmentation, high quality color, and a long life span. Magazines often are kept for months and read and reread. Disadvantages are the high cost, the high level of clutter and the very little flexibility in modifying ads.

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T A B L E 8 . 7

Newspapers

Advantages

Priority for local ads

Coupons and special-response features

High credibility

Strong audience interest

Longer copy/message possible

High flexibility

Cumulative volume discounts

Disadvantages

Major clutter

Short life span

Poor quality reproduction

Limited audience

Poor buying procedures

Newspapers are still important for local businesses and providing coupons to consumers. It has a high level of credibility and strong audience interest. It is especially good for reaching older consumers. The problem with newspapers is that younger consumers do not read newspapers, instead they go online for news. There is major clutter and a very short life span. Newspapers are not kept and reread like magazines.