Section 19.1
Advertising Media
Section 19.2
• Identify media measurement techniques.
• Explain techniques used to evaluate media.
• Summarize how media costs are determined.
• Explain promotional budget methods.
• audience
• frequency
• impression
Businesses need to reach as many targeted
customers as possible. It is important to
calculate costs and measure media
Key Terms in Media Measurement
Audience
Frequency
Cost per Thousand (CPM)
audience
The number of homes or people exposed to an ad.
frequency
The number of times an audience sees or hears an advertisement.
impression
A single exposure to an advertising message.
cost per thousand (CPM)
The media-measurement cost of
exposing 1,000 readers or viewers to an advertising impression.
To compare media rates, a formula for cost per
thousand (CPM) is used. CPM is the media cost of exposing 1,000 readers or viewers to an ad.
CPM = cost of the ad x 1,000 total audience size
Ex: Should COVERGIRL
choose to place a full-page ad in Glamour, Vogue or
Run-Of-Press: allows a publisher to choose where to run the ad. Otherwise, an additional fee is charged for premium positions. (Ex. the most expensive locations in a magazine are back cover, inside front cover, inside back cover.
Bleed ads are printed to the very edge of the page. They are more expensive because they require special printing and paper trimming.
Color rates are higher than black-and-white. Extra fees are charged for each additional color, and full-color (or four-color) is the most
expensive. Quiz: What are the four printer’s colors? (Hint: CMYK)
Other Factors: Circulation Size, Quality of
There are five classifications of radio airtimes, listed from most expensive to least expensive:
• Class AA: Morning drive time: 6 a.m. to 10 a.m. • Class A: Evening drive time: 4 p.m. to 7 p.m. • Class B: Home worker time: 10 a.m. to 4 p.m. • Class C: Evening time: 7 p.m. to Midnight
• Class D: Nighttime: Midnight to 6 a.m.
1. Network radio advertising is a broadcast from a studio to all affiliated radio stations
2. National spot radio advertising is used by national firms to advertise on a local
station-by-station basis. It is used to target select markets in the country.
3. Local radio advertising is done by a local
Advertising rates for television vary by: -Time of day
-Markets purchased (local vs. national) -Audience Size
It is more expensive to advertise during the “prime time” hours of 7 to 10 p.m. because of increased viewership.
2011-2012 LOCAL AD RATES FOR FOX 2 (ST. LOUIS MARKET ONLY)
Wed 7-9p American Idol $8000
Tues 7-8p Glee $3500 M-F 5-6a Fox 2 News @ 5am
$ 300
M-F 6-9a Fox 2 News $ 800
M-F 5-630p Fox 2 News $ 900
Will a prime-time television slot
always guarantee an advertiser
Promotional Budgeting Methods
Contrast possible ad rates for a small weekly newspaper with a large daily newspaper.
Section 19.2
1.
With all things except circulation being equal, comparing rates using cost per thousand (CPM) measurement, it would cost less to advertise in a large daily newspaper. For example: Cost of ad for both papers = $500. Circulation for small weekly newspaper = 10,000. Circulation for large daily = 200,000. Calculate: small weekly newspaper ($500 x
Explain how CPM determines the rates television and radio stations charge for advertising.
Section 19.2
2.
CPM is the cost of exposing 1,000 viewers or listeners to an
advertising impression. For television and radio, as the number of
Suggest a reason that following the competition is not the best model for creating a promotional budget.
Section 19.2
3.
Section 19.1
Advertising Media
Section 19.2