chapter 7 media selection in advertising. what’s happening?

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CHAPTER 7 Media Selection in Advertising

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Page 1: CHAPTER 7 Media Selection in Advertising. What’s Happening?

CHAPTER 7

Media Selection in Advertising

Page 3: CHAPTER 7 Media Selection in Advertising. What’s Happening?

What kinds of ads get your attention? Are they found in “traditional” media like television or

unusual places?

Where is the most unique or “oddest” place that you have seen an ad?

Page 4: CHAPTER 7 Media Selection in Advertising. What’s Happening?

This ad was above a urinal.

Attention getting ad? Why or why not?

Page 5: CHAPTER 7 Media Selection in Advertising. What’s Happening?

Media Planning

Focus on consumer behaviourCreate plans that reflect the purchase

process (Chapter 3)Influence consumer in the marketplaceStudy media choicesListening and viewing habits

Page 6: CHAPTER 7 Media Selection in Advertising. What’s Happening?

8-6

Media Planning

An advertisement by New Balance placed in Runner’s World magazine by the media planner.

Page 7: CHAPTER 7 Media Selection in Advertising. What’s Happening?

Components of a Media Plan

Marketing analysisAdvertising analysisMedia strategyMedia scheduleJustification and summary

See course website for a document containing more detail

Page 8: CHAPTER 7 Media Selection in Advertising. What’s Happening?

Factors that have changed the role of Media

IMC – more than just mass advertising nowCost factorsTechnologyGlobalizationComplexity of the media functionProfitability

Page 9: CHAPTER 7 Media Selection in Advertising. What’s Happening?

Media Selection Factors

Reasons as to why certain media are selected:Organizational ObjectivesTarget market(s)CostsMessage ThemeConstraintsProduct/Service considerations

Page 10: CHAPTER 7 Media Selection in Advertising. What’s Happening?

F I G U R E 8 . 5Developing Logical Combinations of Media - Table 7.12

Page 12: CHAPTER 7 Media Selection in Advertising. What’s Happening?

Advertising Terminology

Reach Number in target audience exposed Typically 4-week period

Frequency Average number of exposures within a given period

Opportunities to see (OTS) Cumulative exposures Placements x frequencyRatings and Cost per Rating Point (CPRP)

Ratings measure percent of target market exposed by mediumCPRP allows for comparison across mediaCost of media buy / vehicle’s ratingWeighted CPM

Page 13: CHAPTER 7 Media Selection in Advertising. What’s Happening?

Advertising Terminology

CostsCost per thousand (CPM)CPM allows for cost comparisons

Gross rating points (GRPs) Measures impact of intensity of media plan Vehicle rating x OTS (number of insertions)Impressions

Gross impressions – total audience exposed to adContinuity

Continuous campaignPulsating campaignFlighting (or discontinuous) campaign

Page 14: CHAPTER 7 Media Selection in Advertising. What’s Happening?

Table 7.3 plus

MagazineCost for 4-color fullpage ad

Totalreadership

(000's)

CPMTotal

Target Market (20M)

Rating(Reach)

Cost per RatingPoint (CPRP)

National Geographic $346,080 21,051 $16.44 16.1 $21,496

Newsweek $780,180 15,594 $50.03 12.2 $63,949

People $605,880 21,824 $27.76 9.4 $64,455

Southern Living $11,370 5,733 $1.98 2.4 $4,738

Sports Illustrated $965,940 13,583 $71.11 10.5 $91,994

Time $1,324,282 21,468 $61.69 15.9 $83,288

Travel & Leisure $183,216 2,205 $83.09 2.3 $79,659

U.S. News $100,740 8,929 $11.28 8.3 $12,137

Page 15: CHAPTER 7 Media Selection in Advertising. What’s Happening?

Ad Campaign Continuity

Continuous campaignAdvantages:Serves as a constant reminder to the customerCovers the entire buying cycleDisadvantages:Higher costsPotential for overexposure

Page 16: CHAPTER 7 Media Selection in Advertising. What’s Happening?

Flighting Campaign

Advantages:Cost efficiency of advertising, only used

during purchase cyclesAllows for more than one medium or vehicle

on limited budgetsDisadvantages:Lack of awareness, interest, retention or

promotional message during non-scheduled times – could lead to decay

Page 17: CHAPTER 7 Media Selection in Advertising. What’s Happening?

Pulsating Campaign

Advantages:Same as the two previous methodsDisadvantage:Not required for seasonal products, or other

cyclical products, therefore adding to organization’s expenses

Page 18: CHAPTER 7 Media Selection in Advertising. What’s Happening?

Selecting Media

o Televisiono Radioo Transito Billboardo Outdoor /Out-of-Homeo Interneto Magazineso Newspaperso Direct Mailo Alternate media

Page 19: CHAPTER 7 Media Selection in Advertising. What’s Happening?

How Important Is Advertising to Magazines?

The chart below shows the top five magazines and the percentage of their revenues generated by advertising, subscriptions and newsstand sales

Total Revenue Advertising Subscribers NewstandTV Guide $1,172,127,000 41.9% 43.2% 14.9%People $1,155,395,000 61.8% 18.9% 19.3%Time $962,651,000 68.4% 27.2% 4.4%Sports Illustrated $905,313,000 67.8% 28.6% 3.6%Better Homes & Garden $595,667,000 74.6% 23.0% 2.4%

Page 20: CHAPTER 7 Media Selection in Advertising. What’s Happening?

Achieving Advertising Objectives

1. Three-exposure hypothesis Intrusion value Takes a minimum of three exposures for an ad to be

effective Effective frequency – number of times that one must

be exposed to message to achieve its objective Effective reach - % of target market that must be

exposed to ad to achieve its objective Size, placement, length of ad are factors to consider Number of media used is important (variability)

Page 21: CHAPTER 7 Media Selection in Advertising. What’s Happening?

Achieving Advertising Objectives

2. Recency theory One exposure may be enough Effective the closer to a purchase States that consumers use selective retention when

they consider ads. Advertising is a waste of money when intended

market is not reached

Page 22: CHAPTER 7 Media Selection in Advertising. What’s Happening?

Achieving Advertising Objectives

o Media Multiplier Effecto The combined impact of using two or more media is

stronger than using either medium aloneo Often the reason for using several different mediao This ensures a broader effective reach

Page 23: CHAPTER 7 Media Selection in Advertising. What’s Happening?

Alternative Media Venues

o Cinemao In-tunnel, subwayo Parking lot/streeto Escalatoro Airline in-flighto Leaflets and

brochureso Carry home menuso Carry home bagso Clothingo Mall signso Kiosks

Page 24: CHAPTER 7 Media Selection in Advertising. What’s Happening?

Traditional Media using a different approach

Page 25: CHAPTER 7 Media Selection in Advertising. What’s Happening?

EXAMPLES

Alternative Media