Advertising Final Flashcards
11) Cume estimates
Cume persons (Reach): total number of different people listening to a radio station for at least one 15-minute segment over the course of a given week, day, or daypart
Cume rating: estimated number of cume persons expressed as a percentage of the total market population
Cume rating = Reach*100/total market population
11) Buying radio time
Factors affecting rate negotiation:
Based on the daypart chosen
Run-of-station (ROS): leaving placement of spots up to the station to achieve a lower ad rate
Total audience plan (TAP): package rate that guarantees a certain percentage of spots in the better dayparts
11) Radio dayparts
Radio day is divided into five dayparts:
Morning drive: 6 a.m. to 10 a.m.
Daytime: 10 a.m. to 3 p.m.
Afternoon (or evening) drive: 3 p.m. to 7 p.m.
Nighttime: 7 p.m. to midnight
All night: Midnight to 6 a.m.
When do people listen to the radio most?
Heaviest radio use occurs during drive times: morning and afternoon hours when the number of listeners is the highest, coinciding with rush hour.
11) Types of radio advertising
Network radio: provides advertisers with simple administration and low effective net cost per station; carries messages nationwide; can target geographic markets
Spot radio: purchase of airtime on individual stations to gain flexibility in the choice of markets, stations, airtime, and copy
Your spot can go on the air in as little as 20 min
Local time: spots purchased by local advertisers or agencies
11) Digital audio formats
Satellite radio (Sirius XM): proprietary, subscription-based method of broadcasting digital audio programs via satellite
Large number of program choices
Exclusive programming (Oprah Winfrey, Pro sports)
Podcasts
Contribute to the decline of the radio
Podcast ads (pre-roll-15sec, mid-roll- 1min), costs in CPM (cost per thousand) $18-25CPM
Digital formats
Pandora, Spotify and Apple Music
11) Radio programming and audiences
FM stations have better sound, more program variety, and fewer commercials.
AM stations have more news, talk, or sports programs (no need for sound quality).
Advertisers buy station’s programming formats
appeal to specific demographics through the genre of music or programming style
11) Explain why radio is an important part of the media mix
- One-to-one, mobile, and adaptable to moods
- Actively involves people (call in, contest, use of ears and imagination)
- Is an important part of the media mix
(reach, attention)
Enables imagery transfer: -75% of consumers replay visual elements of a TV commercial while listening to the same radio spot
13) Understand the components of direct mail
- All forms of advertising sent directly to prospective customers without using one of the commercial media forms
- Used by for-profit businesses, charities, and political campaigns
- Targets advertiser’s best prospects based on geography, demographics, purchasing behavior, or expressed interest
- Consumers can opt out:
Direct Marketing Association’s Mail Preference Service
13) Types of promotional products
E-coupons, convenience cards
Refunds and Rebates
Contests and games
Sampling
Product packaging
13) Types of outdoor advertising
- Bulletin structures
- Spectaculars
- Posters
13) Buying outdoor advertising
Gross Ratings Points (GRP), or 100 showing
A score between 1 and 100.
50 means that your billboard will be seen by at least 50% of the population in the area at least once a day
Price depends on:
Traffic, visibility, location, size, etc
Location is key for effective outdoor advertising.
Billboards still offer the lowest cost per thousand impressions.
A standard billboard costs between $500 and $1,500 per month.
13) Regulation of outdoor advertising
- Highway Beautification Act of 1965: controls outdoor advertising on U.S. interstate highways and other federally subsidized highways
- 1991- the ban on the construction of new billboards on all scenic interstate highways
- Each state regulates, administers, and enforces outdoor advertising permit programs through the department of transportation.
- Maine, Vermont, Hawaii, and Alaska prohibit outdoor advertising altogether.
- But use OOH in other states to promote tourism
13) Ethical concerns
- Racial and ethnic communities have been disproportionately exposed to this type of advertising for alcohol and tobacco products
- 1998- LA prohibited alcoholic beverage and cigarettes advertising on all publicly visible sites
- Proximity to schools affects children (line of sight restrictions from public health experts)
- Spillover effect – can’t switch off the out-of-home advertising, especially for mobile billboards in taxis
10) Selecting media - Circulation, Reach and Frequency
Reach: number of different people exposed, at least once, to a medium during a given period of time
Frequency: average number of times those people are exposed to that medium during that period of time
Circulation:
10) Special possibilities with magazines (types of ads)
Bleed: color, type, or visuals that run all the way to the edge of a printed page
Cover position: advertising space on the front inside, back inside, or back cover pages of a publication, usually sold at a premium price
Junior unit: large magazine ad placed
in the middle of a page and
surrounded by editorial matter
Island halves: half-page of magazine space that is surrounded on two or more sides by editorial matter and sold at a premium price
Insert: ad or brochure printed by the advertiser and shipped to the publisher for insertion into a magazine or newspaper
Gatefold: magazine cover or page extended and folded over to fit into the magazine, sold at a premium price
10) Important dates for magazine purchases
Cover date: date printed on the cover of a publication
On-sale date: date a magazine is issued
Closing date: publication’s final deadline for supplying printing material for an advertisement
10) CPM and newspaper rates
Cost per thousand (CPM): cost of reaching 1,000 people in a medium’s audience, used to compare the cost of various media vehicles
CPM= Page rate/(Circulation/1,000)
Frequency discounts: advertisers earn this by running advertising repeatedly in a specific time period
10) Types of newspaper advertising
Display advertising: includes copy, illustrations or photographs, headlines, coupons, and other visual components
Reading notice or advertorial: looks like editorial content, but flagged as advertising to avoid confusion; may cost more than normal display advertising
Co-op advertising:
sharing of advertising costs
by the manufacturer and
the distributor or retailer
Classified ads: arranged under subheads that describe the class of goods or the need the ads seek to satisfy
Rates based on the number of lines the ad occupies
Classified display ads:
have larger-size type,
photos, art borders,
abundant white space,
and color
Public notices: announce legal changes in business, public governmental reports, notices by private citizens and organizations, and financial reports
Preprinted inserts: advertisements printed in advance by the advertiser and inserted into a specific edition, appearing as a separate, smaller section of the paper
10) Buying print media online (real time bidding)
Online publications offer ads in the form of:
Banners
Pop-ups and pushdowns
Floating ads Interstitials and videos
RTB – real time buying and selling of ads on a per-impression basis
12) Mobile advertising
- Programmatic advertising
12) Enhanced tracking
- Websites use cookies, small files on your computer’s hard drive which let content providers and advertisers know what sites you’ve been visiting all over the Internet
12) Content creation
12) Problems with Digital Interactive advertising
- Cyberbullying
12) Using the digital interactive in IMC
Cost per click: the amount an advertiser pays for each visitor sent to the advertiser’s website by a search engine or other site.
Keyword: a single word that a user inputs into an Internet search engine to request information that is similar in subject matter to that word
Click-throughs: A web user clicking on an ad banner to visit the advertiser’s site. Some web publishers charge advertisers according to the number of click-throughs on a given ad banner.
11/14) Challenges in TV media planning
- Difficulty reaching a big audience due to increasing media options
- TV fragmentation (network, syndicated, spot, local television, and cable)
- New OTT options such as streaming (Hulu, YouTubeTV), on demand (Netflix, Amazon Prime, Disney+), social media, and other nontraditional media (mobile media, apps, product placement)
- Increasing costs due to the restriction by media on the number of ads sold
- More messages than what the consumers can process
- Rising costs due to limited ad space and growing number of messages
11/14) Basic video formats
Broadcast : Reaches audiences by transmitting electromagnetic waves through the air across some geographic territory
Cable: Reaches audiences through cable systems
- cord-cutting
Satellite (Dish Network, Direct TV) wirelessly delivered to TV sets across the world via a network of radio signals, communications satellites, broadcast centers and outdoor antennas
Allows stations to offer improved picture and sound quality
OTT (Over the top): video, delivered by streaming over the Internet, includes live or on-demand
(Hulu, Netflix, Amazon Prime)
11/14) Types of video advertising
Product placements: paying a fee to have a product prominently displayed in a movie or TV show
Commercials at gas stations
- Audience tethered at pump for four-and-a-half minutes
- Costs comparable to spot cable
11/14) Pros and Cons of OTT advertising
Pros:
- Selectivity
- Audience data
- Rapid growth
- Flexibility
- Testability
Cons:
- Ad blockers
- Availability
- Unproven
- Zipping and zapping
11/14) Gross rating points (GRPs)
- Rating: Percentage of homes or individuals exposed to an advertising medium
- 1 rating point is equal to 1 percent of a given population group.
Gross Rating Points – sum of the ratings of several media vehicles
A weekly schedule of 5 commercials on programs with an average household rating of 20= 100 GRPs
11/14) Principal methods for scheduling media
Continuous schedule: advertising runs steadily with little variation
Flighting: periods of advertising are alternated with periods of no advertising at all (cold remedies, snow plowing equipment)
Pulsing: mixing continuity and flighting strategies
The advertiser maintains a low level of advertising all year but uses periodic pulses to heavy up during peak selling periods (Coke)
11/14) Buying TV time
Cost per thousand (CPM): cost of reaching 1,000 people in a medium’s audience (cost/1,000)
Cost-efficiency: cost of reaching a target audience through a particular medium as opposed to the cost of reaching the medium’s total circulation
- Target CPM (TCPM): cost per thousand to expose a message to the target audience rather than the total circulation
