Chapters 13-17
Premium rates of magazine ad
Color- 25-60 percent more than white Bleed pages- 15-20 percent depends on geography and demographic (more in NYC)
Ad impressions
"an opportunity to deliver an advertising element to a Website visitor."
Run-of-station, total audience plan: know what they are
(TAP) package rate, which guarantees a certain percentage of spots in the better dayparts if the advertiser buys a total package of time. Run of station: this leaves total control of spot placement up to the station.
human communication process
Elements: Source, (formulates an idea, encodes it as a message) noise (noise—the distracting cacophony of many other messages being sent at the same time by other sources) feedback,(A message that acknowledges or responds to the original message constitutes feedback, which also affects the encoding of a new message) encoding: at message
Types of TV Providers
Broadcast TV, Cable TV, digital
FTC's five programs
FDA( The agency monitors the manufacture, import, transport, storage, and sale of over $1 trillion worth of products annually, which accounts for about 9 cents of every dollar spent annually by American consumers) FCC (an independent federal agency with jurisdiction over the radio, television, telephone, satellite, Internet, and cable TV industries. The FCC is responsible for protecting the public interest and encouraging competition) Patent and Trademark Library of Congress(works of authorship) Non governement regulation
Discounts
Frequency: based on the number of ad insertions, usually within a year Volume: based on the total amount of space bought during a specific period.
Buying magazine space Guaranteed vs. delivered circulation
Guaranteed: is the number of copies the publisher expects to circulate. Delivered: If the publisher does not reach its delivered figure, it must provide a refund.
Dayparts: which daypart is most heavily viewed? Which daypart is mostly viewed by women/adults?)
Highest during prime time (8-11) Adults- late fringe Women- early fringe
Pros and Cons of Newspaper Advertising
Pro: Unique and flexibility, timeliness, geographic target and broad range of market (mass and local) Con: selectivity, poor production quality and clutter, lack of control and circulation
click rate (aka click-through rate): know what they mean, know click-through rate as a measure of ad effectiveness
The click rate is the number of clicks on an ad divided by the number of ad impressions. (measuring frequency)
combination rate
a given ad in (1) morning and evening editions of the same newspaper; (2) two or more newspapers owned by the same publisher and 3) in some cases, two or more newspapers affiliated a newspaper group
media commissions
agency buys ad at 15% of price, agency bills client full ad, keeps difference
markups
agency buys materials for 17.65% markup agency bills cost plus markup
at-home vs. away from home readership
at home reader will read in their home, regardless of who bought the magazine. away from home readers are readers who read the magazine outside their home, regardless of who bought the magazine.
Highway Beautification Act of 1965
controls outdoor advertising on U.S. interstate highways and other federally subsidized highways.
Buying newspaper space
local versus national rates The national rate averages 75 percent higher, but some papers charge as much as 254 percent
how agencies are compensated
media commissions, markups and fees
Pros and Cons of Magazine Advertising
Pro: flexible, color design, believability, long shelf life and authority, selectivity, cost efficiency and selling power Con: Expensive, difficult to build reach and frequency, lack of immediacy, shallow geographically and
spot announcements
run in clusters, better for budgets
subscription vs. vendor sales
subscriptions account for the majority of magazine sales. Newsstands (which include bookstore chains) are still a major outlet for single-copy sales, but no outlet can handle more than a fraction of the many magazines available. Impressive bc it shows real desired interest
Types of newspaper advertising
-display advertising copy, illustrations or photos, headlines, coupons, and other visual components— -classified advertising a community marketplace for goods, services, and opportunities of every type, from real estate and new-car sales to employment and business opportunities. public notices changes in business and personal relationships, public governmental reports, notices by private citizens and organizations, and financial reports. preprinted inserts The advertiser prints the inserts and delivers them to the newspaper plant for insertion into a specific edition.
national vs. cable TV network
Pros Networks offer large advertisers convenience and efficiency because they broadcast messages simultaneously across many affiliate stations throughout the country. Broadcast networks tend to reach masses of American consumers representing a cross section of the population, Cable: More selective Cons: Network lack of flexibility, long read, restrictions and high prices participation bias with several advertisers buying 30- or 60-second segments within a program.
The pros and cons of radio advertising
Pros: Reach and frequency, selectivity, cost efficiency Cons: clutter, segemented audience, limitations of sound, short lived
Types of Internet advertising: know what each type refers to
1. Website, Microsites (supplement) and Landings (direct links) 2. search engine 3. sponsored links and ad words 5. adsense (portion of page for google text) 6. buttons 7. rich media advertising (graphics) 8. email advertising
paid vs. controlled circulation
A paid basis means the recipient must pay the subscription price to receive the magazine. (Bloomberg) Controlled: publisher mails the magazine free to individuals who the publisher thinks can influence the purchase of advertised products.
Buying television time: run-of-schedule, preemption rate, makegoods, affidavit of performance
A preemption rate is lower because the advertiser agrees to be "bumped" (preempted) if another advertiser pays the higher, nonpreemption rate. Run of schedule: (the station chooses when to run the commercials), affidavit of performance: performance to the advertiser or agency, specifying when the spots aired and what makegoods are available. makegoods: refer to free advertising time an advertiser receives to compensate for spots the station missed or ran incorrectly or because the program's ratings were substantially lower than guaranteed
Regional edition of a magazine: know what it means
Regional publications are targeted to a specific area of the country, such as the West or the South: larger more well-known publications while staying geographically relevant to the audience that may be reading the magazine.
vertical vs. horizontal publication
A vertical publication covers a specific industry in all its aspects. Horizontal publications, in contrast, deal with a particular job function across a variety of industries.
insertion order
An insertion order serves as a contract between the advertiser (or its agency) and the publication.
AQH persons and Cume persons: know what they are
Average quarter-hour audience: identifies the average number of people listening to a specific station for at least five minutes during a 16-minute period of any given daypart. Cume persons is the total number of different people who listen to a radio station for at least five minutes in a quarter-hour within a reported daypart
Signal reach
Broadcast: by transmitting electromagnetic waves through the air across some geographic territory. (VFH and UHF) Cable: through wires, which may be strung from telephone poles or laid underground. Digital: sends and receives moving images and sound by digital signals, rather than the analog signals of terrestrial
ROP vs. preferred position
Run-of-paper: entitle a newspaper to place a given ad on any newspaper page or in any position it desires. preferred position: ensure a choice position for an ad by paying a higher
Exhibitive media
Some media are designed specifically to help bring customers eyeball-to-eyeball with the product—often product packaging and trade-show booths and exhibits.
Examples in advertising
Source: Sponsor Message: AD Receiver: Communicator Noise: competition
Source dimensions, message dimensions, and receiver dimensions in advertising
Sponsor, the author, the persona Message: autobiography, graphical, narrative Receiver: Implied, Sponsorial, Actual
TV audience measurement
TV Households TVHH- number of households that own television sets. Households using TV HUT- The percentage of homes in a given area that have one or more TV sets turned on at any particular time is expressed DMA (designated market areas)- for geographic areas (cities, counties) in which the local TV stations attract the most viewing.
AQH rating and AQH share: know how to calculate them
The average quarter-hour rating expresses the AQH persons as a percentage of the population. AQH/ Population x 100 the station's audience (AQH persons) expressed as a percentage of the total radio listening audience in the area. AQH of station/AQH of all stations x 100
Audience estimation with outdoor ad: What does "100 showing" mean?
The basic unit of sale for billboards, or posters, is 100 gross rating points daily, or a 100 showing. posters; it means the message will appear on as many panels as needed to provide a daily exposure theoretically equal to the market's total population.
Rating and audience share: know how they are defined, and how to calculate them
The percentage of homes with sets in use (HUT) tuned to a specific program is called : audience share. Rating share: measure the audience as a percentage of all TVHH in the area, whether the TV sets are on or off.
tearsheets
To verify that the ad ran, the newspaper tears out the page on which the ad appeared and sends it to the agency or advertiser. handled through a private central office, the Advertising Checking Bureau.
proof copy
When a newspaper creates ad copy and art, it gives the advertiser a proof copy to check.
Supplementary media: ad specialties vs. premiums (know their differences)
advertising specialty as a promotional product, usually imprinted with an advertiser's name, message, or logo, that is distributed free as part of a marketing communications program. (free) Premiums are also promotional products; they are typically more valuable and usually bear no advertising message. (have to buy product, or do some action to receive)
Dayparts: know the basics (e.g., which dayparts receive heaviest radio listening? Which daypart is ignored by rating services?)
all night is not measured (midnight to 6) heaviest: drive times during the week (6-10 a.m. and 3-7 p.m.) during the week
Basic structures of outdoor advertising: know what they are and their characteristics
bulletin structures: heavy traffic and good visibility, Bulletins measure 14 by 48 feet, plus any extensions, and may carry either painted or printed messages. poster panels: is the basic outdoor advertising structure. A poster consists of blank panels with a standardized size and border. Poster sizes are referred to in terms of sheets. The poster sheets are mounted on a board with a total surface of 12 by 25 feet and usually change every 30 days. junior posters: these offer a 5- by 11-foot printing area on a panel surface 6 feet high by 12 feet wide. (pedestrian, vehicle)
Three dates that affect magazine sales
cover date, on-sale date (issued) and closing date (must be in publisher's hands)
Ways to improve click-throughs (Refer to the ppt slides!)
draw attention to ad (creativity, color, location, rich media)(in the middle of page) provide a reason to click (selling proposition, draw to action)
flat vs. discount rates
flat rates: which means they allow no discounts; a few newspapers offer a single flat rate to both national and local advertisers. Bulk discounts offer advertisers decreasing rates (calculated by multiplying the number of inches by the cost per inch) as they use more inches. bulk discount: earn frequency discounts by running a given ad repeatedly in a specific time period.
Audience estimation with transit ad: What does a "full/half/quarter showing" mean?
full showing or 100 showing means that the ad would appearing each vehicle in the system. half showing: 50 showing quarter showing: 25 showing are also available.
Rate card
helps determine costs, counts, mechanical requirements, closing dates, special editions and additional features Magazines
direct response: infomercials
infomercials: years: Long-form advertising can communicate a message in a way other forms can't. direct-response TV (DRTV) includes shorter ads (often 60 seconds to two minutes) that ask consumers to order a product, as well as cable networks (Home Shopping Network) that feature round-the-clock sales.
Out-of-home media: outdoor, transit, and others
mobile billboards: cross between traditional billboards and transit advertising, Electronic signs display text and graphic messages much like the big screens in sports stadiums.
local TV ad
most sell spot advertisements, some develop and sponsor rights to syndicated series rating services
Consumer Motivation Process
negatively originated motives, such as problem removal or problem avoidance. a positive bonus is promised rather than the removal or reduction of some negative situation. Maslow: a positive bonus is promised rather than the removal or reduction of some negative situation.
Conversion rate
number of orders taken/ number of ad impressions high click rate is not always high conversion good conversion (top 10% of google)
primary vs. secondary readership
primary circulation represents the number of people who buy the publication, either by subscription or at the newsstand. Secondary (or pass-along) readership, which is an estimate determined by market research of how many people read a single issue of a publication, is very important to magazines.
The pros and cons of outdoor/transit advertising
pros: cost effective for large audiences, reach and frequency, geography, low CPM, credibility cons: fleeting message, cost, measurement, image
Sponsored links vs. organic pagerank search results: know what they are
sponsored links: advertisers pay Google only when a search engine user clicks on the link and visits the sponsor's site. More useful for marketing organic pagerank: search results (unaffected by sponsors)
split runs
that advertisers can test the pulling power of different ads. run two ads but for different content for same product
How advertisers buy newspaper space
the media buyer must know the characteristics of a newspaper's readership: the median age, sex, occupation, income, educational level, and buying habits of the typical reader.
syndication (know what each type of syndication means)
the sale of programs on a station-by-station, market-by-market basis. First-run syndication involves original shows, like Oprah, Inside Edition, and Extra, which are produced specifically for the syndication market. off-network syndication, former popular network programs (reruns) are sold to individual stations for rebroadcast. These are first-run programs offered free or for a reduced rate, but with some of the ad space (usually 50%) presold to national advertisers.
Types of transit advertising: know what each type means
transit shelter: success. It reaches virtually everyone who is outdoors: auto passengers, pedestrians, bus riders, motorcyclists, bicyclists, and more. Terminal posters: In many bus, subway, and commuter train stations, space is sold for one-, two-, and threesheet Inside Card: placed above the seats and luggage area in a wall rack. Outside posters are printed on high-grade cardboard and often varnished for weather resistance. taxicab exteriors, generally for periods of 30 days, to display internally illuminated, two-sided posters positioned on the roofs.
broadcast media
transmit sounds or images electronically, they typically includes TV and radio, specifically the following (cable, syndicated, local)
The Elaboration Likelihood Model
two routes to persuasion: central (high level) and peripheral (low level)
click throughs
when a user actually clicks on a banner ad to visit the advertiser's landing page
short rate
which is the difference between the contracted rate and the earned rate for the actual inches run.
