media basics and print media advertising principles and practices

Media Basics and Print Media

Advertising Principles and Practices

Part Three: Part Three: Effective Advertising MediaEffective Advertising Media

• Focuses on the creation and delivery of advertising messages

• Discusses the dynamic media environments of print and out-of home, broadcast, interactive, and alternative media

• Looks at planning and buying for all media

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Questions We’ll AnswerQuestions We’ll Answer• Why is the media landscape changing and

how does that affect the key media planning concepts?

• What are the key points that advertisers should know to make effective decisions about advertising in newspapers and magazines?

• What factors do advertisers consider in making out-of-home advertising and packaging decisions?

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Media BasicsMedia Basics

• In most cases, media is supported by advertising.

• Media costs are the biggest part of a campaign budget—from 80–85%.

• Achieving efficiency is critical.• Media advertising was a $960 billion

industry in 2007.


The Changing Media LandscapeThe Changing Media Landscape

• Consumer Media Usage– Recent generations spend more time with media.– Media focused lives—the average person spends 9 hours a day

with some type of media (including mass media, iPods, cell phones, books, email).

– Media multitasking—about 68% of people use other media with TV; 30% use more than one media at at time.

• Advertising Media Use– Online newspaper, cable, outdoor, and the Internet is increasing;

newspaper and network TV is declining.

• The Media Plan– Identifies the best media to efficiently deliver an advertising

message to a targeted audience.– A subsection within an advertising plan with its own objectives,

strategies, and tactics.


Traditionalists Baby Boomers Gen X GenY[Born before 1946] [Born 1946–1964] [Born 1965–1976] [Born 1977–1994]

Newspapers Magazines

Broadcast Radio

Broadcast TV • Transistor Radio • 8-Track Tapes • •

Cassette Tapes • •

Walkman Radio • • Video Games • •

VCRs • •

Cable TV • •

Personal Computers • • • Satellite TV • • • Internet • • • Cell phones • • • Online News • • • DVD Players • • • •

Satellite Radio • • • • MP3 Players • • • • TiVo • • • • iPod Video Player • • • •

Key: This technology/media format was “always there” • This technology/media format was invented during this generation’s time

Table 8.1 Evolution of Media Availability Among the Generations


($ Millions)2003 2004 2005 % Change % of Media

Television 60,746 67,794 67,947 .002 .25

Broadcast TV 41,932 46,267 44,293 -.04

Cable TV 18,814 21,527 23,654 .10

Direct Mail 48,370 52,191 55,218 .06 .20

Newspapers 46,155 48,244 49,436 .02 .18

National 7,797 8,083 7,910 -.02

Retail 21,341 22,012 22,178 .004

Classified 15,801 16,608 17,312 .04

Online* 1,216 1,541 2,027 .32

Radio 19,100 19,581 19,640 .005 .07

Magazines 11,435 12,247 12,847 .05 .05

Directory 13,896 14,002 14,229 .01 .05

Business Papers 4,004 4,072 4,170 .02 .02

Out of Home 5,443 5,770 6,232 .08 .02

Internet** 4,434 5,312 5,737 .08 .02

Miscellaneous*** 31,990 34,654 35,692 .03 .13

Total All Media $245,573 $263,867 $271,148 .03

*Advertising in online newspaper**Non-newspaper Internet advertising*** Includes weeklies, shoppers, penny savers, and cinema advertising

Source: Adapted from The Source: Newspapers by the Numbers 2006, Newspaper Association of America, January 2007,

Table 8.2 U.S. Media Advertising Expenditures


Key Media PlayersKey Media Players

• Media sales people work for a magazine or TV station; provide sales kits with information about audience and medium.

• Media reps or brokers are people/companies who sell space and time for a variety of media, allowing the media buyer to place the buy with one order.

• Media researchers compile audience measurement data, media costs, and availability data for the various media options.

• Media planners develop the strategic decisions outlined in the media plan, such as where and when to advertise and which type of media to use.

• Media buyers implement the media plan by contracting for specific amounts of time or space, based on the plan developed by the media planner.

• Media buying companies specialize in media research, planning, and buying. They may be a spin off from an advertising agency and now work for a variety of clients.


Key Media ConceptsKey Media Concepts

• Media mix– The way various types of

media are strategically combined to create a certain kind of impact.

• Media vehicle– A specific TV program

(60 Minutes), newspaper (Chicago Tribune, El Neuvo Herald), magazine (Woman’s Day, GQ), radio station or program (NPR’s All Things Considered, Rush Limbaugh’s talk show).



• Targets and Audiences– The goal of the media plan is

to match the advertiser’s target audience with the audience of a particular medium.

• Measuring Print Audiences– Impressions—one person’s

opportunity to be exposed one time to an ad

– Circulation—number of copies sold, not readership

– Gross impressions—estimate of total impressions; if an ad runs in three issues, the gross impressions are impressions times three



• Reach– The percentage of the media audience exposed at

least once to the advertiser’s message during a specific time frame.

• Frequency– The number of times a person is exposed to an

advertisement.– You have to hear/see an ad three times for it to

make an impact.

Principle: The goal of a media plan is to reach as many people in

the target audience as often as the budget allows.


Media Industry TrendsMedia Industry Trends

• Engagement– The captivating quality of media

to grab and hold attention.

• Brand Touch Points– All the various ways consumers

come in touch with a brand.

Video SnippetHasbro sends one cohesive

message through several media to drive sales.


Print Media CharacteristicsPrint Media Characteristics

• Ads in newspapers, magazines, brochures, posters, outdoor

• More information, richer imagery, and longer messages than broadcast

• Often used to generate cognitive responses• More flexible, less fleeting, and more

engaging when targeted to special interest audiences

• Can engage the senses of sight, touch, and smell


Newspaper BasicsNewspaper Basics

• Newspaper’s primary function is news, making it appropriate for ads that announce sales, events, or other news.

• Readership is declining, especially among younger people.

• Newspapers are a local, mass medium.• Market selectivity allows newspapers to target

specific consumer groups.

Principle: A basic principle of newspaper publishing

is that people read newspapers as much for the ads as they do for the news stories.


Newspaper: Types of CirculationNewspaper: Types of Circulation

• Subscription– Individuals and companies sign up to receive a

publication over a specified time for a certain fee.

• Single Copy sales– Copies sold at newsstands.

• Third Party– Copies bought by hotels, restaurants, airlines

that are distributed to guests.


Newspaper: Newspaper: Frequency of PublicationFrequency of Publication

• Dailies– About 1,500 dailies in the United States, usually

published in cities and larger towns.

• Weeklies– About 6,700 serving towns, suburbs, and smaller cities.

• Sunday editions– Approximately 30% of dailies and a few weeklies also

publish Sunday editions.

• Business or organization newspapers– May be published weekly, monthly, quarterly,

bimonthly (every other month), or semimonthly (twice a month).


Newspaper: EditionsNewspaper: Editions

• Morning– Yesterday’s events, advance coverage of today’s events.

• Evening– Today’s events (up till mid-day) and advance stories for

tomorrow.

• All-day – Frequent updates with different editions published

during the day.

• Special Interest– Ethnic such as Spanish language, Asian, and African

American; also upscale neighborhoods by zip code.


Newspaper: Format and SizeNewspaper: Format and Size

• Broadsheet – Standard size generally 22 inches deep and

14 inches wide with eight columns.

• Tabloid– Half the size of a broadsheet with five or six

2-inch columns.


Newspaper Ad SalesNewspaper Ad Sales

• Ads are sold based on size of the space.– Local advertisers and volume buyers get discounts;

national advertisers pay a premium.

• Ads are sold by local sales staff or brokers (one-order, one-bill).

• The introduction of SAU (Standard Ad Units) in the 80s made national buying much easier.

• Some newspapers offer large advertisers hybrid rates (between local and national).

• Coop advertising—a local retailer places an ad and the manufacturer pays for part of the ad.


Types of Newspaper AdvertisingTypes of Newspaper Advertising

• National vs. Local• Classified

– Advertising by individuals to sell their personal goods and advertising by local businesses.

• Display– Any size, placed anywhere except editorial section.– Run-of-paper (can run anywhere) or preferred-

position (select sections where ad runs).

• Supplements– Usually independently published, syndicated,

magazine-style publications that are sold to newspapers and inserted on Sunday.

– Free-standing inserts are preprinted advertisements, such as the grocery ads, that are inserted into the newspaper for a fee.


National Local/Retail Classified Online Newspaper Total

$Mil %change $Mil %change $Mil %change $Mil %change $Mil %change

2000 $7,653 13.7 $21,409 2.4 $19,608 5.1 $48,670 5.1

2001 $7,004 - 8.5 $20,679 -3.4 $16,622 -15.2 $44,305 -9.0

2002 $7,210 2.9 $20,994 1.5 $15,898 -4.3 $44,102 -0.5

2003 $7,797 8.1 $21,341 1.7 $15,801 -0.6 $1,216 $46,156 1.9

2004 $8,083 3.7 $22,012 3.1 $16,608 5.1 $1,541 26.7 $48,244 4.5

2005 $7,910 -2.2 $22,187 0.8 $17,312 4.2 $2,027 31.5 $49,435 2.5

Adapted from Value of Newspaper Medium, Newspaper Association of American, 2007.

Table 8.3 Newspaper Advertising by Category


Newspaper Readership Newspaper Readership MeasurementMeasurement

• About half of American adults read the newspaper daily.

• Newspaper readers are older with higher incomes and education levels.

• Newspapers measure their audiences to attract advertisers who want to reach their readers.– Audit Bureau of Circulation—independently verifies

statements about newspaper circulation statistics.

– Simmons—annually measures readership profiles in approximately 70 of the nation’s largest cities.

http://www.smrb.com/


Newspaper Industry TrendsNewspaper Industry Trends

• Readership is declining, particularly among young people.

• Newspaper production costs are increasing.

• Internet delivery is becoming a growth area for the industry.– Stories are delivered

through web phones, pagers, emails, Palm Pilots, Blackberries.

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Magazine BasicsMagazine Basics

• Over 92% of all U.S. adults read one magazine per month, spending 44 minutes per issue.

• Quality of reproduction is their greatest strength.• Over half of all new magazines fail.• Most magazines focus on niche markets related to

hobbies, sports, business, and professions.• Zines, online versions of traditional magazines,

represent the greatest growth area.

Principle: If you want to start a successful magazine,

create a special-interest publication aimed at a narrow or niche audience.


Rank Gross Ad Revenue05 04 Magazine $ Mil %

change

1 1 People $1,374.2 8.1

2 5 Better Homes & Gardens 971.5

9.4

3 3 Time 944.6 -6.0

4 2 Sports Illustrated 925.7 -

9.8

5 4 TV Guide 726.1 -20.9

6 7 Parade 626.0 1.6

7 6 Newsweek 622.0 -

4.8

8 8 Reader’s Digest 586.9

5.5

9 9 Good Housekeeping 586.5

7.8

10 11 Woman’s Day 502.7

11.2

11 10 Cosmopolitan 472.8

3.5

12 13 InStyle 455.4 8.5

13 15 Family Circle 434.6

9.9

14 14 USA Weekend 431.4

3.6

15 22 Us Weekly 417.4

28.5

16 19 Ladies’ Home Journal 412.9

12.3

17 12 Business Week 396.5 -

7.8

18 20 Vogue 392.8 8.5

19 16 Forbes 381.6 -0.2

20 23 The New York Times Magazine 373.8

21.1

Table 8.2 Top 20 Magazine Advertising Leaders(ranked by total U.S. advertising and circulation gross revenues in 2005)

Source: Maureen Morrison, “Leading Magazines Gain 5.2% to $36.6 Billion,” Advertising Age, October 23, 2006, S-13.


Types of MagazinesTypes of Magazines• Consumer Magazines

– Aimed at consumers who buy products for personal use.

• Business Magazines– Trade papers are aimed at retailers,

wholesalers, and other distributors; e.g., Chain Store Age

– Industrial magazines are aimed at manufacturers; e.g., Concrete Construction.

– Professional magazines are aimed at physicians, lawyers, and other professionals; e.g., National Law Review, MediaWeek.

– Farm magazines are aimed at those working in agriculture; e.g., Farm Journal and Feed and Grain.


Classifications of MagazinesClassifications of Magazines• Vertical vs. horizontal publications

– Vertical: contains stories about and info about an industry– Horizontal: deals with business functions across industries

• Geography– National, regional editions (e.g., Los Angeles Magazine,

Southern Living’s southwestern edition zoned editions of national magazines)

• Demographics– Age, income, occupation, etc. (e.g., Newsweek’s college

edition and Time’s editions for business executives and doctors)

• Editorial Content– General (Reader’s Digest), women’s (Family Circle),

shelter (House Beautiful), business (Forbes), and special interest (Ski).


Classifications of MagazinesClassifications of Magazines• Physical Characteristics

– The most common sizes are 8 1/2 x 11 inches and 6 x 9 inches, which allows for fewer visuals and less copy.

• Ownership– Some are owned by publishing companies (Conde Nast

owns Glamour, Gourmet, Vanity Fair) and others by organizations (AARP).

• Distribution and Circulation – Traditional delivery—through newsstand purchases or

home delivery via the U.S. Postal Service – Nontraditional delivery or controlled circulation —

hanging bagged copies on doorknobs, inserting in newspapers (such as Parade delivering through professionals’ offices (doctors and dentists), direct delivery (company or airplane), and electronic delivery


Magazine Advertising: FormatMagazine Advertising: Format• Premium positions

– Back cover, inside covers• Double-page spread

– Two ad pages facing each other• Bleed page

– Color goes to edge of the page• Gatefold

– More than two connected pages that fold in on themselves

• Special ad page or section that looks like editorial

• Multiple-page photo essay• Fractional page space

– vertical or horizontal half-page, half-page double spread


Magazine Advertising: Magazine Advertising: TechnologyTechnology

• Selective binding and ink-jet imaging allow for personalization

• Satellite transmission and computerized editing allow for regional editions with regional advertising


Magazine Readership Magazine Readership MeasurementMeasurement

• Magazine rates are based on guaranteed circulation a publisher promises to provide.

• Readership represents total audience which includes pass-along readers.

• Objective, outside measurement companies:– Audit Bureau of Circulation—independently verifies

statements about magazine circulation statistics.

– Media Mark—MRI measures readership for many popular national and regional magazines.

– Simmons Market Research Bureau—provides psychographic data on readers plus what products they buy.

– Companies like Starch, Gallup & Robinson provide audience size and behavior information.


Magazine Advertising TrendsMagazine Advertising Trends

• Product placement, although opposed by the The Magazine Editors Association, will happen.

• Online technology has led to online magazines.• Traditional formats provide interesting writing

that’s portable.• The questions is: What works best for the media

strategy for a particular target audience?


Directory AdvertisingDirectory Advertising• Directories list people or companies, phone numbers,

and addresses.

• About 90% of the people who consult the Yellow Pages follow up with action.

• Retailers can buy display space for larger ads, but directories can be cluttered.

• 7,500 directories for professional and interest groups

Principle: The principle behind directory advertising is

that it is directional—it tells people who already are in the target market where to go to get the

product or service they want.


Out-of-Home AdvertisingOut-of-Home Advertising

• OOH includes billboards, hot-air balloons, buses, posters on walls, kiosks, blimps, airport displays.

• Ranks second to the Internet in terms of growth.• It’s situational: can target specific people at a

specific time when they’re most interested.


Out-of-Home Advertising:Out-of-Home Advertising:Outdoor AdvertisingOutdoor Advertising

• Outdoor includes street and highway advertising, plus posters in public locations.

• Two primary uses of outdoor:– As reminder advertising (e.g., McDonald’s)– As a directional (e.g., hotels, gas stations)


Out-of-Home Advertising:Out-of-Home Advertising:Outdoor AdvertisingOutdoor Advertising

• Size and Format– Printed poster bulletin—posted

like wallpaper– Painted bulletin — on signs,

buildings, roofs, mountains– Extensions/cutouts — go

beyond border of rectangle– Digital displays — use wireless

technology to change message– Message is about 8 to 10 words

• Buying outdoor– Sold in “showings”– Based on traffic counts– Boards are rented for 30 days


Out-of-Home AdvertisingOut-of-Home Advertising• On-premise signs

– Identify a store– Directional and

informational– Help locate businesses

• Posters– Used on buildings, kiosks,

vehicles, and bulletin boards

– Usually have few words– Kiosks are designed for

posters• Transit advertising

– Ads on buses, taxis, and moving billboards

– Interior and exterior

Replace photo


PackagingPackaging

• Both a container and a communication vehicle

• Constant brand reminder once at home or office

• Presents brand image and communicates critical benefits information

• Can deliver benefits like recipes

Principle: A package is the last ad a customer sees before

making a decision on which brand to buy.


Using Print and Out-of-HomeUsing Print and Out-of-Home

• Use newspaper for announcements of something new, or for targeting local markets.

• Use magazines for targeting people with special interests; they’re also good for brand image or longer explanations.

• Use outdoor for people on the move to provide directional information; also good for brand reminders.

• Use directories to catch people when they’re shopping.


Newspaper Advertising

Advantages

Good for news announcements Good market coverageGood for comparison shoppingPositive consumer attitudesGood to reach educated and affluent consumersFlexibility—geographic; scheduling

Magazine Advertising

Advantages

High production valuesTargets consumers’ interests— specialized audiencesReceptive audienceLong life spanFormat encourages creativityGood for brand messagesGood for complex or in-depth messages

Limitations

Short life spanClutterLimited reach for certain groups Poor production values

Limitations

Long lead times—limited flexibility

Lack of immediacy

High cost

Sometimes limited distribution

Table 8.6 Print Media Advantages and Limitations


Directory Advertising

Advantages

Directional: consumers go to directories for shopping information

InexpensiveGood ROI of 1:15—every dollar spent of an ad

produces $145 in revenueFlexible in size, colors, formatsLong life

Outdoor Advertising, Including Transit

Advantages

Good situational mediumDirectionalBrand reminder mediumHigh-impact—larger than lifeLeast expensiveLong Life

Packaging

Advantages

Stimulates point-of-purchase decision makingLast ad a consumer sees In-home is brand reminder on shelfBillboarding effect can dominate shelfReinforces brand advertisingDelivers product information

Limitations

Lack of flexibility—can be a long time before a change can be made

Competitive clutter and look-alike adsLow production quality

Limitations

Traffic moves quicklyCan’t handle complex messages—designs must

be simpleMay be easy to miss (depending on location)Some criticize outdoor ads for “polluting” the

landscapeTransit lacks the size advantage of other outdoor media

Limitations

Cluttered environmentShelf space may be limitedCan get inconvenient placement—such as

bottom shelfLimited space needs simple message

Discussion Questions


Discussion Question 1Discussion Question 1• You are the media planner for an agency handling a

small chain of upscale furniture outlets in a top-50 market that concentrates most of its advertising in the Sunday supplement of the local newspaper. The client also schedules display ads in the daily editions for special sales.

• Six months ago a new, high-style metropolitan magazine approached you about advertising for your client. You deferred a decision by saying you’d see what reader acceptance would be.

• Now the magazine has shown some steady increases (its circulation is now about one-quarter of the newspaper’s).

• If you were to include the magazine on the ad schedule, you’d have to reduce the newspaper media somewhat. What would be your recommendation to the furniture store owner?


Discussion Question 2Discussion Question 2

• Since his freshman year in college, Phil Dawson, an advertising major, has waited tables at Alfredo’s, a small family-operated restaurant featuring excellent Italian food and an intimate atmosphere.

• A Yellow Pages representative approaches the owner to run a display ad in addition to its listing.

• The owner asks Phil for advice on whether such an ad would help, and if so, what the ad should look like.

• What should Phil recommend?


Discussion Question 3Discussion Question 3• Three-minute debate: Petra Wilcox, a display ad salesperson for the

Daily Globe, thought she had heard all the possible excuses for not buying newspaper space until she called on the manager of a CD store that sold new and used discs.

• “I heard about newspaper reader studies that prove how wrong the audience is for me. Readership is too adult—mostly above 50 years of age,” he said. “And besides, readers of newspapers are families with higher incomes—the wrong market for our used disc business,” he continued.

• How should Wilcox try to counter the manager’s views?

• In class, organize into small teams, with each team developing a position team members feel is most compelling on the advantages of newspaper advertising. Set up a series of three-minute debates with each side taking half the time to argue its position. Every team of debaters has to present new points not covered in the previous teams’ presentations until there are no arguments left to present. Then the class votes as a group on the winning point of view.


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