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Prof. (Dr.) Kao Kveng Hong, PhD, D.Litt8-1

Chapter Eight

Traditional MediaChannels

Media?• On the average, how much time per

week do you spend with the following media?• Television• Radio• Magazines• Newspapers• Outdoor (billboards, bus signs,

etc.)• In which media do you pay the mostattention to advertisements?

• What differences do you see between your media habits and those of your parents?

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M&M’s• Spanish Civil War – Spain• United States – 1941• Television advertising• Print advertising• Popularity of M&M characters• September 11, 2001 package• Charitable causes

• Special Olympics• Susan G. Komen Breast Cancer

“Melts in your mouth, not in your hand.”

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Chapter Overview• Nature of media strategy• Media planning• Media buying• Media choices• B-to-B and international media

selection

Advertising MediaSelection8

Media Strategy

Process of analyzing and choosing media

for an advertising and promotional

campaign.

8-5

• A favorite wake-up radio station or one that is listened to during the commute to work.

• A favorite morning news show or newspaper.• Trade or business journals that are examined while at work.• A radio station that is played during office hours at work.• Favorite computer sites that are accessed during work.• Favorite magazines that are read during the evening hours.• Favorite television shows that are watched during the

evening hours.• Internet sites that are accessed during leisurely hours.• Shopping, dining, and entertainment venues that are

frequented.

F I G U R E 8 . 2

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Examples of Times Workers Are Exposed to Advertisements

F I G U R E 8 . 3

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Components of a Media Plan

• Marketing analysis• Advertising analysis• Media strategy• Media schedule• Justification and

summary

People Involved in Media Selection

Media Buyer

Media Planner

Client

Account Executive

Creative

Media Planning and Buying at

Strawberry Frog Advertising Agency

Click to play clip from Strawberry Frog: Inside an Advertising Agency

VIDEO

Media Planning

• Focus on consumer behavior• Create plans that reflect

purchase process• Influence consumer in the

marketplace

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Media Planner

TargetMarket

Media Audience

Characteristics

Media Audience

Characteristics

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MediaPlanner

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

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Factors in EffectiveMedia Purchases

• Quality of media choices.• Creativity in developing the media plan.• Financial stewardship.• Agency culture and track record.• Good data analysis.• Relationship between media buyer and

sales representatives.

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Media Terms• Spot ads• Reach• Frequency• Opportunity to see (OTS)• Gross rating points• Cost per thousand (CPM)• Cost per rating point (CPRP)R• Ratings• Continuity (continuous, pulsating, discontinuous)

• Gross impressions

Table 8.1Magazine

Cost for 4- color full page

ad

Total readership (000's)

CPMTotal

Target Market (20M)

Rating (Reach)

Cost per Rating Point (CPRP)

National Geographic

$346,080 21,051 $16.44

16.1 $21,496Newswee

k$780,180 15,594 $50.0

312.2 $63,94

9People

$605,880 21,824 $27.76

9.4 $64,455Southern

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 $83,288Travel &

Leisure$183,216 2,205 $83.0

92.3 $79,65

9U.S. News

$100,740 8,929 $11.28 8.3 $12,137

Achieving Advertising Objectives

• Intrusion value• Clutter• Effective frequency and Effective reach• Objective

• Increase brand recognition – visual important• Increase brand recall – frequency important

• Size, placement, length of ad• Number of media used

Three-Exposure Hypothesis

Achieving Advertising Objectives

Recency Theory• Attention is selective and focused• Impact dissipates over time• Maximize exposure

• Run ads over longer period of time• Place ads in multiple outlets

• Business-to-business

Media SelectionPercentage who indicated they were “very attentive”

tobrand messages by various media

• TV, Radio, Newspapers, Magazines, Outdoor• Sponsorship• Alternative media

23%18%

• Viral, guerrilla, etc.

Source: David Kaplan, “Study: Masses Still Tuned in to Mass Media,” Adweek, Vol. 44, No. 42 (October 27, 2003), p. 12.

• Word-of-mouth 63%• Sampling 45%• In-store 32%• Mass media 27%

• Public relations 15%• Online 10%• Direct mail 7%

TelevisionTable 9.2

T A B L E 8 . 2Television

Advantages

1. High reach2. High frequency potential3. Low cost per contact4. Quality creative

opportunities5. High intrusion value6. Segmentation possibilities

through cable outlets

Disadvantages

1. Greater clutter2. Channel surfing

during commercials3. Short amount of copy4. High cost per ad5. Low recall due to

clutter

Nielsen RatingsRat ing number of household turned to a p

rogram totalnumber of households in a market

In the United States, the total number of households with television sets is approximately 109.7 million. To calculate the rating of an episode of American Idol, if the number of households tuned to the season finale was 17.8 million, then the rating would be:

Rating 17,800,000 16.2

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109,700,000

Next, if the advertiser were interested in the percentage of households that actually were watching television at that hour, the program’s share could be calculated. If 71 million of the 109.7 million households had a television turned on during the hour in which American Idol aired, the share would be:

Share number of households tuned to Survivor

17,800,000 25 number of households with a television turned on

71,000,000

• American Idol• Survivor• CSI: Miami• Everybody Loves Raymond• Two and a Half Men• Law and Order

$658,333$412,833$374,231$315, 850$249,017$227,500

16.210.810.0

9.89.68.3

Sources: “Average Price of a 30-second Ad for Fall 2004,” The Futon Critic, Http://www.thefutoncritic.com, March 29, 2005; “Nielsen Media Research Top 20,”Http://tv.yahoo.com/nielsen, March 29, 2005.

TV ShowCost

30 Second AdNielsen Rating

Cost of a 30-scond Ad and Nielsen Rating

Television Advertising

A locally produced advertisement for Matt’s Music Store.

Click here to play ad.

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T A B L E 8 . 3Radio

Advantages

1. Lower cost per spot than television2. Low production cost3. Music can match station’s

programming4. High segmentation potential5. Flexibility in making new ads6. Able to modify ads to fit local conditions7. Intimacy (with DJs and

radio personalities)8. Creative opportunities with music

and other sounds9. Mobile: people carry radios

everywhere

Disadvantages

1. Short exposure time2. Low attention3. Few chances to

reach national audience

4. Target duplication when several stations use same format

Radio Advertising

An advertisement by Haik Humble Eye Center.

Click on speaker to play ad.

T A B L E 8 . 4Outdoor

Advantages

1. Large, spectacular ads possible2. Able to select geographic areas3. Accessible for local ads4. Low cost per impression5. Broad reach6. High frequency on major commute

routes

Disadvantages

1. Legal limitations2. Short exposure time3. Brief messages4. Little segmentation

possible5. Cluttered travel

routes

$203.4

$128.6

$112.9

$111.6

$99.8

$99.8

$94.5

$94.5

$53.8

$0.0 $50.0 $100.0 $150.0

1st Quarter 2004 (Millions)$200.0 $250.0

Local services, amusements

Public trans., hotels, resorts

Retail

Media and advertising

Restuarants

Financial

Auto dealers & services

Insurance and real estate

Beer and wine

Source: Deborah L. Vence, “Outdoor Ads Leverage New Technology,” Marketing News, Vol. 38, No. 15 (September 15, 2004), pp. 11-13.

F I G U R E 8 . 7

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Expenditures on Outdoor Advertising

Dennis Carter discusses how billboard advertising was used to encourage existing customers to move to a newer Intel product. Customers had been reluctant to move from their familiar 286 processor to the new 386 processor.

Click picture to play video.

Outdoor Advertising

This ad for a portable e-mail device is aimed atbusy travelers looking for convenience.

http://www.billboardinfo.com

http://www.jessicamcclintock.com 8-29

T A B L E 8 . 5Magazines

Advantages

1. High market segmentation2. Targeted audience interest

bymagazine3. High color quality

4. Long life5. Direct response techniques6. Read during leisure time7. Longer attention to ads

Disadvantages

1. Long lead time for ads2. Little flexibility3. High cost4. High level of clutter5. Declining readership

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T A B L E 8 . 6Newspapers

Advantages

1. Priority for local ads2. Coupons and special-response

features3. High credibility4. Strong audience interest5. Longer copy/message possible6. High flexibility7. Cumulative volume discounts

Disadvantages

1. Major clutter2. Short life span3. Poor quality reproduction4. Limited audience5. Poor buying procedures

Media Mix - United States

Radio 3%

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Internet 5.3%

Television 47.2%

Magazines 20.9%

Outdoor 2.2% Newspaper

s 21.4%

Source: “100 Leading National Advertisers,” Advertising Age (June 29, 2004), pp. 1-5.

T A B L E 8 . 7Advertising Expenditures by Category

Source: Based on “100 Leading National Advertisers,” Advertising Age, (June 25, 2007), p. 9.

Category Total Magazines Newspapers Outdoor Television Radio Internet

$19.79Automotive 9 11.0% 25.4% 1.7% 50.4% 7.8% 3.7%

Retail $19.114 11.0% 35.4% 2.0% 33.8% 11.2% 6.6%

$10.95Telecommunications 0 8.2% 19.8% 2.5% 48.7% 7.1% 13.6%

Financial services $8.689 13.7% 21.8% 2.8% 36.3% 8.3% 17.0%

Food, beverages, candy

$7.225 27.6% 0.7% 1.1% 64.2% 4.5% 1.8%

Restaurants $5.291 2.5% 3.5% 4.5% 78.4% 10.1% 0.9%

Apparel $2.911 75.1% 2.0% 1.0% 19.8% 0.7% 1.3%

F I G U R E 8 . 6Developing Logical Combinations of Media

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Shift by B-to-B Advertisers toNon-business Media

Fact: 56% of all business advertising dollars are spent in non-business environments.

Reasons for shift:• Business decision makers also consumers.• Business decision makers difficult to reach at

work.• Clutter among business mediums.

Source: Based on Kate Maddox, “Top 100 B-to-B Advertisers Increased Spending 3% in ‘06,” B to B, Vol. 92, No. 11 (September 10, 2007), pp. 25-30.

F I G U R E 8 . 9Business-to-Business Advertising Expenditures

Business publications,

26.0%

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Newspapers, 18.0%

Consumer magazines, 11.5%

Television, 25.4%

Outdoor, 3.0%

Radio, 6.7%

Internet, 9.6%

Media SelectionInternational Markets

• Media importance varies.• Media viewing habits vary across countries.• Media buying is different.• Cultural mores vary.

Figure 8.8Global MediaSpending

F I G U R E 8 . 8Media Usage in North America, Europe, and Japan

Source: Adapted from Colin MacLeod, “Global Adspend Trends,” International Journal of Advertising, Vol. 24, No. 2 (2005), pp. 261-262.

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

Per

cet o

f To

tal

United States 10.3% 30.7% 3.1% 38.9% 12.4% 4.6%

Europe 17.0% 34.5% 6.1% 35.7% 5.8% 3.9%

Japan

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9.4% 25.1% 11.6% 46.0% 4.2% 4.1%

Magazines Newspapers Outdoor Television

Radio Internet