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Media Rates and
Measurements
Selection of Media
• Reach vs. cost• Ability to illustrate product• Ability to present adequate selling
message• Flexibility for last-minute changes• Ability to use with special promotions• Image of business/desired image• Coverage of targeted area
Lesson Objectives
• Identify media measurement techniques• Explain techniques used to evaluate
media• Calculate media costs• Explain promotional budget methods
Media Terms• Audience
– Number of homes or people exposed to an ad
• Circulation– Number of print media produced for sale and for
subscriptions
• Impression frequency– Number of times an audience sees, hears or reads an
ad
• Cost per thousand (CPM)– Media cost of exposing 1000 readers or viewers to an
ad impression– Comparison tool to determine cost effectiveness
Newspaper Rates
• Classified Ads– Grouped into categories– Paid by word or line
• Display Ads– More creative– Generally larger– Paid by “column inch”
• one column wide by one inch deep• Inches X columns X $ per column inch
Example #1• Cost is
$25.00 per column inch
• Ad size is 4” long and 3 columns wide
4”
Answer
Other Factors Affecting Newspaper Ad Rates
• Day of week• Run-of-paper rate vs. guaranteed
or preferred rate• Color vs. black and white
Other Factors Affecting Newspaper Ad Rates
• Frequency (more = less)–Open (non-contract) rate–Contract rate - guarantees space
purchased• Circulation – size of audience
Cost per thousand (CPM)
• Cost of exposing 1000 readers to an ad
• Measurement that allows advertisers to compare costs
Formula:
Cost of ad X 1000
Circulation
Example #2:• Cost of ad = $1200• Circulation = 222,000• What is the CPM?
Example #3: Calculate CPM
Constitution• Cost = $500• Circulation = 700,000
Tribune• Cost = $400• Circulation = 300,000
All other things being equal, which newspaper would you choose?
Tribune
Constitution
Media Rates and
Measurements
Selection of Media
• Reach vs. cost• Ability to illustrate product• Ability to present adequate selling
message• Flexibility for last-minute changes• Ability to use with special promotions• Image of business/desired image• Coverage of targeted area
Media Terms• Audience
– Number of homes or people exposed to an ad
• Circulation– Number of print media produced for sale and for
subscriptions
• Impression frequency– Number of times an audience sees, hears or reads an
ad (used most often in online media)
• Cost per thousand (CPM)– Media cost of exposing 1000 readers or viewers to an
ad impression– Comparison tool to determine cost effectiveness
Media Rates and
Measurements
Magazine RatesKey Terms
• Bleed – ads printed to the edge of page–No white border–15-20% extra for bleeds
• Color rates – if any color added–Cost increases as color added–Four-color – aka “Full-color ads”
• Premium position – where ad placed
Key Terms (con’t)
• Frequency discounts–Similar to contract rates for newspapers–More frequency, less cost per issue
• Commission–Percentage of sales given by magazine to
advertising agency for placing the ad for the advertiser
–Generally, 15% of ad cost
Example #4:
• Four-color rate = $23,300• Bleed = 15%• What is the ad cost?
Example #5:
• Four-color ad with bleed = $26,795• Commission = 15%
Radio Advertising• Network Radio Advertising
– Broadcast from studio to all affiliated stations– Allows reach to several markets at once
• National Spot Radio Advertising– Used by national companies– Allows local station-by-station ad to reach
specific markets• Local Radio Advertising
– Used by local businesses– Limited to specific geographic area
Key Terms in Radio• Spot radio – refers to geographic
area• Spot commercial – refers to length of
message: one minute or less– Can be carried on network or spot radio
• Rates based on time of day– a.m. and afternoon more expensive
• Run-of-schedule rates – radio station decides when the ad will
run – Less costly
Television Rates
• Rates vary with time of day–Prime-time 7-11 p.m. most costly
–Class AA time
Media Rates and
Measurements