chapter 14 advertising

Chapter 14Chapter 14

ADVERTISINGADVERTISING

What is Advertising?What is Advertising?

Advertising is the public promotion of Advertising is the public promotion of something such as a product, service, something such as a product, service, business, or event to attract or increase business, or event to attract or increase interest in it. interest in it.

Types of MediaTypes of Media

Medium is a channel or system of Medium is a channel or system of communication.communication.

Mass Media are channels of Mass Media are channels of Communication such as television, Communication such as television, radio, and newspaper.radio, and newspaper.

Why AdvertiseWhy Advertise

Companies Advertise to get Companies Advertise to get consumers’ attentionconsumers’ attention


NewspapersNewspapers Allow advertisers to target people Allow advertisers to target people

within a certain areawithin a certain area News paper ads have a short shelf News paper ads have a short shelf

life.life.


MagazinesMagazines Most magazines are National and Most magazines are National and

appear every week, or month.appear every week, or month. Special interest magazines make it Special interest magazines make it

possible to target specific markets on possible to target specific markets on a large scalea large scale

Magazine ads have a loner life than Magazine ads have a loner life than newspaper adsnewspaper ads


TelevisionTelevision TV ads can be informative, entertaining, or TV ads can be informative, entertaining, or

creativecreative Most TV ads are about 30 seconds longMost TV ads are about 30 seconds long TV ads reach target markets by carefully TV ads reach target markets by carefully

choosing to advertise during certain types choosing to advertise during certain types of shows. of shows.

The more popular a show is, the more it The more popular a show is, the more it costs to air an ad during that showcosts to air an ad during that show

Types of Advertising Types of Advertising

Direct-Mail AdvertisingDirect-Mail Advertising Ads sent by mail to peoples homesAds sent by mail to peoples homes Allows targeting of certain areasAllows targeting of certain areas Marketers use letters, flyers, Marketers use letters, flyers,

postcards, and catalogs often postcards, and catalogs often offering coupons, or free samples. offering coupons, or free samples.


Directory AdvertisingDirectory Advertising– Appears in Phone BooksAppears in Phone Books– Used under certain headingsUsed under certain headings– Usually low cost when shelf life is Usually low cost when shelf life is

consideredconsidered– Disadvantage of directory advertising is Disadvantage of directory advertising is

that they compete with similar addsthat they compete with similar adds


RadioRadio– Reaches a wide audienceReaches a wide audience– Not as effective as TV or Magazine adsNot as effective as TV or Magazine ads– Use music, dialog and sound effects to Use music, dialog and sound effects to

get users attentionget users attention


Online MediaOnline Media– Pop-up adsPop-up ads– Banner adsBanner ads– Web casting Web casting


BillboardsBillboards– Large outdoor advertisingLarge outdoor advertising– Placed Near HighwaysPlaced Near Highways– Very VisibleVery Visible– Disadvantage- people often drive by to Disadvantage- people often drive by to

quickly to notice themquickly to notice them


TransitTransit– Posters or advertisement placed on Posters or advertisement placed on

sides of buses, in subways, inside trains, sides of buses, in subways, inside trains, and at airports and at airports

Media PlanningMedia Planning

Process of selecting advertising Process of selecting advertising media and deciding the time and media and deciding the time and space in which the ads should appearspace in which the ads should appear


Three Question to consider when Three Question to consider when making a media planmaking a media plan

1)1) Can the medium present the product Can the medium present the product or service and the appropriate or service and the appropriate business image?business image?

2)2) Can the desired customers be targeted Can the desired customers be targeted with the medium?with the medium?

3)3) Will the medium get the desired Will the medium get the desired response rate?response rate?


Advertising AgencyAdvertising Agency– Specializes in developing ad campaigns Specializes in developing ad campaigns

for its clientsfor its clients– What is an “Ad Campaign”What is an “Ad Campaign”– Ad Campaign is a series of messages Ad Campaign is a series of messages

that share a single idea and theme. that share a single idea and theme. Vary from small agencies to large Vary from small agencies to large international firms.international firms.

Media MeasurementMedia Measurement Several Key Terms:Several Key Terms: Audience-the number of homes or people Audience-the number of homes or people

exposed to an ad.exposed to an ad. Impression-a single exposure to an Impression-a single exposure to an

advertising message.advertising message. Frequency-the number of times an Frequency-the number of times an

audience sees or hears an ad.audience sees or hears an ad. Cost per thousand (CPM)-the media cost of Cost per thousand (CPM)-the media cost of

exposures 1,000 readers or viewers to an exposures 1,000 readers or viewers to an advertising impression. The “M” in CPM advertising impression. The “M” in CPM comes from the word comes from the word mille, mille, which is Latin which is Latin for thousand.for thousand.

Media RatesMedia Rates

A media rate or advertising rate is the A media rate or advertising rate is the amount of money it cost to display or amount of money it cost to display or broadcast an ad. This is separate from the broadcast an ad. This is separate from the amount to make the ad. Ad rates are amount to make the ad. Ad rates are determined by several factors:determined by several factors:– Size of the adSize of the ad– The number of people it reachesThe number of people it reaches– How often it appearsHow often it appears– When it appearsWhen it appears– Where it appearsWhere it appears

Print Media Ad RatesPrint Media Ad Rates

An advertiser usually pays a rate for every An advertiser usually pays a rate for every 1,000 people (CPM) a newspaper or 1,000 people (CPM) a newspaper or magazine reaches.magazine reaches.

The size of the ad also affects the cost. The size of the ad also affects the cost. Newspaper and magazine ads are sold by Newspaper and magazine ads are sold by the inch on a page.the inch on a page.

Magazine rates are based on circulation, Magazine rates are based on circulation, type of readership, and production type of readership, and production techniques. Premium position refers to ad techniques. Premium position refers to ad placement.-Back page or the inside of the placement.-Back page or the inside of the front page.front page.

Broadcast Media Ad RatesBroadcast Media Ad Rates

The cost of TV and radio ads depend The cost of TV and radio ads depend on the size of the audience, the on the size of the audience, the reach of the station, and the time of reach of the station, and the time of day an ad is broadcast. Prime time is day an ad is broadcast. Prime time is the period of time when the network the period of time when the network TV or radio audience is the largest. TV or radio audience is the largest. 7pm -11pm and drive times for the 7pm -11pm and drive times for the radio.radio.

Internet Ad RatesInternet Ad Rates The cost of Internet advertising is based on the The cost of Internet advertising is based on the

type, size, and format of the ad. Types include type, size, and format of the ad. Types include banner ads, rich-media enhanced banner ads, banner ads, rich-media enhanced banner ads, and pop-up ads. The length of time an ad runs and pop-up ads. The length of time an ad runs also affects the price.also affects the price.

Rates vary based on the volume on monthly page Rates vary based on the volume on monthly page views.views.

Paid search ads are Internet ads that online Paid search ads are Internet ads that online advertisers bid on for search engine queries. The advertisers bid on for search engine queries. The advertiser pays a fee to the search engine advertiser pays a fee to the search engine whenever someone clicks the ad. The advertiser whenever someone clicks the ad. The advertiser that bids the highest for a particular keyword has that bids the highest for a particular keyword has its ad show up first on the list of ads next to the its ad show up first on the list of ads next to the search results.search results.

chapter 14 advertising

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