Advertising Exam 3 - Kwon

Program Rating

% of TV households in an area that are tuned into a specific program (Channel 2 households) / (Total TV households)

Advertising Allowance (Push Strategy)

% of gross purchases or a flat fee paid to the retailer for advertising the manufacturer's product

HUT

% of homes in an area that have 1 or more TV sets turned on at any particular time (Households using TV) / (Total TV households)

Share

% of homes with TV sets in use tuned to a specific program (Channel 2 households) / (Households using TV)

National Magazines

*[TERM]* that are distributed throughout a country

How to Measure Audience in Digital Interactive Media

- Ad Impression - Click Rate

Positive Effects of Sales Promotion on Brand Volume

- Adds value to brand - Maximizes sales - Helps build short-term market volume - Accelerates sales by motivating customers to try a new product or brand

Challenges of Direct Marketing

- Bad reputation of being sales oriented - Don't get the affiliation offered by some media - Clutter - Privacy concerns

Benefits of Direct Marketing

- Best way to develop a good database - Helps companies send discrete messages to individual customers/prospects - Offers accountability, convenience, precision, and flexibility - More private

Negative Effects of Sales Promotion on Brand Volume

- Can reduce profitability - Makes customers become "deal-prone" - Destroys brand equity - High cost - Can lead to a price war

Types of Magazines

- Consumer - Farm - Business - Local - Regional - National

Buying TV Time

- Cost Per Rating Point (CPP) - Cost Per Thousand (CPM)

Major Types of Newspaper Advertising

- Display Advertising - Classified Ads - Public Notices - Preprinted Inserts

Disadvantages of Digital Interactive (as an advertising medium)

- Does not offer mass-media effectiveness - Lack of accountability and security since it is not controlled by 1 entity - Requires constant attention and time on the part of the advertiser to engage consumers on a daily basis

Types of Digital Interactive Advertising

- Email Advertising - Viral Marketing - Affiliate Marketing - Sponsorship - Search Engine Ads

Advantages of Magazine Advertising

- Flexibility - Color - Authority and Believability - Permanence - Prestige - Audience Selectivity - Cost-Efficiency - Selling Power - Reader Loyalty - Extensive Pass-Along Readership - Merchandising Assistance

Disadvantages of Broadcast TV (as an advertising medium)

- High Production Cost - High Airtime Cost - Limited Selectivity - Brevity - Clutter - Zipping and Zapping (DVR users fast forward through commercials and people who change the channel during commercials)

Disadvantages of Personal Selling

- Labor-intensive - Time-consuming - Poor reputation/perception - Requires sales executives with the right personality attributes

Disadvantages of Magazine Advertising

- Lack of Immediacy - Shallow Geographic Coverage - Inability to Deliver Mass Audiences at a Low Price - Inability to Deliver High Frequency - Long Lead Time - Heavy Advertising Competition - High Cost Per Thousand (CPM) - Declining Circulations

Disadvantages of Newspaper Advertising

- Lack of Selectivity - Short Life Span - Low Production Quality - Clutter - Lack of Control - Overlapping Circulation

Disadvantages of Radio (as an advertising medium)

- Limitations of Sound - Segmented Audiences - Short-Lived and Half-Heard Commercials - Clutter

Advantages of Broadcast TV (as an advertising medium)

- Mass Coverage - Relatively Low Cost - Some Selectivity - Impact - Creativity - Prestige - Social Dominance

Advantages of Newspaper Advertising

- Mass Medium - Local Medium - Comprehensive in Scope - Geographic Selectivity - Timeliness - Credibility - Selective Attention - Creative Flexibility - An Active Medium - A Permanent Record - Reasonable Cost

Advantages of Personal Selling

- Personal and persuasive - Facilitates instant feedback - Flexibility to adjust the presentation - Helps in distribution of new products - Good for high-priced items

How Magazine Circulation is Measured and Rates Are Set

- Rate Base - Guaranteed Circulation - Circulation Audit - Primary Circulation - Vertical Publications - Horizontal Publications

How to Measure TV Audiences

- Rating Services - Sweeps - TV Households (TVHH) - Households Using TV (HUT) - Program Rating - Audience Share - Total Audience - Gross Rating Points (GRPs)

Advantages of Radio (as an advertising medium)

- Reach and Frequency - Selectivity - Cost-Efficiency - Timeliness - Immediacy - Local Relevance - Creative Flexibility

Considerations When Buying Magazine Space

- Readership - Cost - Mechanical Requirements - Closing Dates or Deadlines - Circulation and Rate-Card Information

Various Types of Advertising on TV

- Sponsorship - Participation - Spot Announcement - Infomercial - Product Placement

Types of Magazines by Content

1. Consumer 2. Farm 3. Business

5 Types of Direct Marketing

1. Direct Sales 2. Direct Selling 3. Telemarketing 4. Direct-Response Advertising (Direct-Response Broadcast Advertising and Direct-Response Digital Interactive Media)

Types of Magazines by Geographic Scope

1. Local 2. Regional 3. National

Buying Radio Time (5 Dayparts)

1. Morning Drive (6-10am) 2. Daytime (10am-3pm) 3. Afternoon or Evening Drive (3-7pm) 4. Nighttime (7pm-midnight) 5. All Night (midnight-6am)

Lengthy Lead Times

A disadvantage of magazine advertising is - Low Prestige - Short Shelf Life - Cost Inefficiency - Weak Selling Power - Lengthy Lead Times

Pull Strategy

Activities aimed at inducing trial purchase and repurchase by consumers - Manufacturers to consumers

Pre-Printed Inserts

Advertisements printed in advance by the advertiser and inserted into a specific edition

Frequency Discounts

Advertisers earn this by running advertising repeatedly in a specific time period

Spot Announcements

After watching Hawaii 5-0 and before Blue Bloods came on, Carol saw a 30-second commercial for a Taco Bell value meal, a 30-second commercial for Hyundai, a 60-second commercial for a movie, and several 15-second spots, one of which promoted another CBS show. The term used to describe the various national commercials that Carol saw is - Spot Announcements - Narrowcasting - Syndicated Spots - Integrated Advertising - Cume Spots

Advantages of Digital Interactive (as an advertising medium)

Allows for greater *interactivity* between company and its stakeholders

Public Notices

Announce legal changes in business, public governmental reports, notices by private citizens and organizations, and financial reports

Classified Ads

Arranged under subheads that describe the class of goods or the need the ads seek to satisfy

High cost of airtime

As an advertising medium, which of the following is one of broadcast television's greatest disadvantages? - Too much selectivity - Lack of immediacy - Minimal zipping and zapping - Absence of a media image - High cost of airtime

Banner Ad

At Rediff.com, there is an ad for Covergirl cosmetics that stretches across the top of the page and directs you to its website at a click, where you can purchase Covergirl products. This Covergirl ad that appears on Rediff.com is an example of a(n) - Adword - Banner Ad - Sponsored Link - Button Ad - Microsite

Local City Magazine

Caters to upscale, professional people interested in local arts, fashion, and business

Distributed Networks

Characterized by many different hubs and links, which allows continuous communication even if some connections stop working

Rate Base

Circulation figure on which the publisher bases its rates

Spot Announcement

Commercial message run between 2 programs but having no relationship to either - Purchased from individual stations directly - Less expensive and more flexible than network advertisement - Tend to have less viewers

Affiliate Marketing (Program)

Contractual advertising program where a seller pays a manufacturer a % of the price of an item sold

CPM TV

Cost of reaching 1,000 people in a medium's audience; used to compare the cost of various media vehicles

CPM Magazine

Cost of reaching 1,000 people in a mediums audience *[TERM]* = ([Cost of ad space or absolute cost] / Circulation) x 1,000

Social Media

Digital media that connect individuals

Farm Publications

Directed to farmers and their families or to companies that manufacture or sell agricultural equipment, supplies, and services

Sponsored SMS

Does not require the end user to own a smartphone

Product Placement

During an episode of Dancing with the Stars, the judges are shown drinking from Diet Coke cups. Which of the following does this most likely demonstrate? - Synergistic Promotion - Creative Licensing - Product Placement - Product Diversification - Narrowcasting

Email Advertising

Effective way to provide direct mail

Purchased keywords

Every time an Internet user types the words bouquet or flowers into Google, the user encounters ads from Ferns and Petals, a flower shop. Ferns and Petals has most likely - Developed a creative banner or button ad - Engaged in behavioral tracking methods - Joined an affiliated marketing program - Worked through an ad network - Purchased keywords

Push Strategy

Help get products into the dealer pipeline and accelerate sales by offering inducements to dealers, retailers, and salespeople - Manufacturers --> Retailers and Wholesalers --> Consumers - 3 Strategies

Centralized Networks

How media content was traditionally delivered. A hub, such as a TV station, a newspaper publisher, or a cable company distributes content to many receivers

Click Rate

How often people who see your ad end up clicking it - High rate = helpful and relevant ad

Display Ads

Includes copy, illustrations or photographs, headlines, coupons, and other visual components

Consumer Magazines

Information- or entertainment-oriented periodicals directed toward people who buy products for their own consumption

Viral Marketing

Internet version of word-of-mouth advertising e-mail

Infomercial

Long-format TV commercial that may run as long as an hour - Can generate sales in excess of $1 billion

Buy Back Allowance (Push Strategy)

Manufacturer's offer to pay for an old product to take it off the shelf to make room for the new product

Offer advertising space at contract rates

Newspapers that offer volume discounts are most likely to - Avoid offering advertising space at open rates - Offer advertising space at contract rates - Offer a very low rate for a one-time insertion - Offer advertising space only at flat rates - Avoid situations that could give rise to charging a short rate

Guaranteed Circulation

Number of copies of a magazine that the publisher expects to sell

TV Households

Number of households in a market area that own TV sets

Imagery Transfer

One advantage of running a full advertisement on TV and then converting the audio into a radio spot is _____, where 75 percent of consumers report replaying the TV spot in their minds as they hear the radio spot. - Gross Impressions - Cumes - Imagery Transfer - ROS - Makegoods

Product Placement

Paying a fee to have a product prominently displayed in a movie or TV show (ex. American Idol judges with their Coke cups) - Minimize impact of commercial avoidance - Help link products with popular characters - Help avoid credibility issues that surround commercials

Mobile Advertising

Phone is the only truly portable and personally identifiable medium - Banner Advertising - Sponsored SMS

Ad Impression

Possible exposure of the advertising message to one audience member

Sponsorship

Presentation of a TV program by a sole advertiser responsible for program content, cost of production, and advertising

Loyalty Program

Programs that reward customers with discounts and free products in return for frequent and continuous patronage. Consumer purchases are tracked on a company's database

Participation

Several advertisers share the sponsorship of a TV program (ex. the Superbowl)

Trade Deal (Push Strategy)

Short-term dealer discounts on the cost of a product or other dollar inducements

Banner Ad

Similar to online banner advertising

Business Magazines

Target readers include: - Trade publications - Industrial magazines - Professional Journals

Regional Publications

Targeted to a specific area of the country

Sponsorship

The Super Bowl's web page exclusively features IBM's logo and links to IBM products during the event. IBM pays the NFL $1 million to have their brand featured on the site. Which term best describes this arrangement? - Sponsorship - Niche Marketing - Click-Through - Rich Mail - Viral Marketing

Database Marketing

Tracking and analyzing the purchasing patterns of specific customers in a computer database and then targeting advertising to their needs

True

True or False: Cable networks are often more specialized in their offerings and therefore reach selective niches as compared to broadcast networks.

True

True or False: For magazines, the rate base is the circulation figure on which the publisher bases its rates.

True

True or False: Hundreds of highly targeted, upstart publications are showing up on the web, along with magazines created by users on sites such as Flipboard.

False

True or False: In the United States, most newspaper advertising revenue comes from national advertisers, such as department stores.

False

True or False: Marketers like social media because it allows them to speak without listening.

True

True or False: The larger the audience, the more a radio station can charge for commercial time.

CPP TV

Used to determine which broadcast programs are the most efficient in relation to the target audience by dividing the cost of the show by its expected rating

Search Engines

Web sites that are devoted to finding and retrieving requested information from the Web

Low Cost

What is a characteristic of cable TV advertising? - Wide Reach - Low Cost - Infrequent Zipping - Limited Flexibility - High Production Quality

Cost-Efficiency

What is a characteristic of radio advertising? - National Relevance - Cost-Efficiency - Poor Reach - An Absence of Clutter - Minimal Segmentation

Email

What is the most cost effective direct marketing strategy?

Click-Through

Whenever someone visits the website for The Missoulian (a local newspaper in Missoula, MT) and clicks an ad to go to the sponsor's site, the sponsor is charged $.20 for the click. The Missoulian is using the _____ method of charging for advertising - Keyword Purchase - Banner Purchase - Impression - Click-Through - Click Rate

Space on the Internet is vast and inexpensive

Which of the following best explains the difference between digital interactive and traditional media? - Space on traditional media is unlimited - Space on the Internet is vast and inexpensive - Digital media is more expensive than traditional media - Traditional media provides for greater creative opportunities when compared to digital media - Traditional media audiences create and consume content unlike the audiences of digital media

Cable Companies

Which of the following is a primary advertiser in U.S. newspapers? - Legal Companies - The Health Care Industry - Cable Companies - Educational Institutions - The Hospitality Industry

A Junior Unit

Which of the following is an example of a less expensive form of magazine advertising that involves placing an ad in unusual places or dramatically across spreads? - A Fourth Cover Position - A Cover Position - A Bleed - A Market Position - A Junior Unit

Engaging With Consumers

Which of the following is most likely the key to success for a firm that uses social media for advertising purposes? - Seeking Referrals - Monitoring Clicks - Minimizing Spam - Engaging With Consumers - Protecting Corporate Security

It offers geographic selectivity

Which of the following is one of the reasons an advertiser would decide to use newspaper advertising rather than some other medium? - There are no overlapping circulation problems - It has a long life span - It offers high production quality - It offers geographic selectivity - It has no clutter

Bulk Discounts

Which of the following offer advertisers decreasing rates as they use more inches? - Short Rates - Combination Rates - Bulk Discounts - Earned Rates - Frequency Discounts

An end user needs a smartphone to receive an SMS

Which of the following statements about SMS is most likely false? - SMS stands for Short Message System - Carriers have set up guidelines to reduce SMS spam - An end user needs a smartphone to receive an SMS - A smartphone user can respond to an SMS ad via a link - Some companies offer sports scores and news free to users via SMS

With sponsored links, advertisers pay only when a user clicks on the link

Which of the following statements is most likely true about sponsored links? - Sponsored links are organic in nature - Sponsored links search results are based on PageRank - With sponsored links, advertisers pay only when a user clicks on the link - Sponsored links are search results not paid for by the advertiser - With sponsored links, advertisers pay for impressions but not performance