Paid Media Flashcards
Paid media communicates to
Strangers
Owned media communicates to
Customers
Earned media communicates to
Fans
Paid media advantages (4)
Message control
Scale; can generate broad reach
Good brand reminder
Measurable
Paid media disadvantages (4)
Clutter
Lack of credibility
Low response rates
Indirect action
Magazines advantages (6)
Audience selectivity Permanence Secondary readership Prestige Creative flexibility Selling power
This is the most selective media
Direct mail
Second most selective media
Magazines
why do magazines have permanence
Long shelf-life
Disadvantages of magazines (6)
Audience fragmentation Difficult to generate frequency Long lead times Costly for reaching a mass audience Relatively high CPMs Cluttered
Are magazine subscribers or newsstand sales more involved?
Newsstand
Circulation figure on which a magazine bases its rates
Generally equivalent to the guaranteed circulation
Rate base
Guaranteed circulation
Minimum number of copies the publisher expects to circulate
Advertisers verify the reach of magazines through a system of audited circulation called
ABC = audit bureau of circulation
Opportunities for discounts (magazines) (3)
Frequency
Volume
Payment terms
Opportunities for premiums (magazines) (4)
Color
Covers
Gatefolds
Inserts
Advantages of newspapers (5)
Timeliness Geographic selectivity Intensive local coverage Mass medium Credibility
Disadvantages of newspapers (5)
Short life span Lack of overall selectivity Skews to older audiences Clutter Low production quality
6 newspaper advertising options
Display advertising Classified advertising Sunday supplements Run of paper (ROP)/preferred position Split runs Per column inch (rows)
Display advertising (newspapers)
Anyone can purchase them
yard sales, dating, selling things, etc
Classified advertising (newspapers)
Traditional newspaper advertising
Sunday supplements (newspapers)
May include free standing inserts (FSI)
Run of power versus preferred position (newspapers)
Location of ad
Split runs (newspapers)
Run different versions or different ads
Geographically
Ad testing
Per column inch (newspapers)
-2 formulas
(Per row)
Column inches = columns * row inches
Cost = column inches * rate
Newspaper advertising mechanics (3)
Insertion order
Proof
Tear sheet
Insertion order (newspapers)
Contract between newspaper and advertiser
Proof (newspapers)
Copy of ad to be approved by advertiser prior to publication
Tear sheet (newspaper)
Verification that the ad actually ran
The page of the newspaper torn out and sent to you
This medium of television
- attracts most national advertising
- independent stations
- network affiliates
Broadcast tv
This medium of television
- premium services
- Ad-supported networks
- superstations
Cable tv
Which medium of tv attracts most national advertising
Broadcast tv
Which medium of tv has premium services, ad-supported networks, and superstations
Cable tv
CBS, ABC, Fox, NBC are all network affiliates of
Broadcast tv
Advantages of broadcast tv advertising (5)
Mass coverage Impact Creativity Prestige Can be cost efficient
What % of us homes have a tv
98%
Disadvantages of broadcast tv advertising
Limited selectivity High production cost High Airtime cost Brevity - poor recall Clutter Zapping
What is zapping
Ability to fast forward, skip, avoid ads in any way shape or form
MTV, Lifetime, HDTV, CNN are superstations of
Cable tv
Advantages of cable tv
Selectivity Audience demographics - buyers! Impact Creativity Prestige Low cost (relative to broadcast)
Why are audience demographics favorable for cable tv
They tend to be buyers, more affluent, wealthy, willing to spend money, and with disposable income
Disadvantages of cable tv
Audience fragmentation Limited reach Somewhat lower quality Brevity Poor recall Clutter
Which medium to people find to be the most authoritative, influential, and persuasive
Television
8 types of television advertising purchases
Sponsorship Cosponsorship Participation (within) Spot ads (between) Syndication Program length ads (infomercials) Roadblocks Product placement
8 types of television advertising purchases
Sponsorship Cosponsorship Partnership (within) Spot ads (between) Syndication Program length ads (infomercials) Roadblocks Product placement
Advertiser underwrites the total cost of a program, including content and production
Sponsorship
Multiple advertisers sponsor a program
Cosponsorship
Several advertisers buy advertising segments within a program
Most network TV advertising
Participation (within)
Run ads between programs in clusters
Can be concentrated in specific regions
Less expensive than participation
Spot ads (between)
3 types of syndication
Offnetwork
First run
Barter
Re-runs of old, popular shows sold to individual local stations for rebroadcast
Off-network syndication
Original programming sold to individual local stations for broadcast (ex. The jerry springer show)
First run syndication
Off-network or first run programming offered to local stations free or for a reduced rate with some ad positions pre-sold to prominent national advertisers (ex. Wheel of fortune, jeopardy, 30 rock)
Barter syndication
Combination of advertising, direct response, and sales promotion usually seen late at night
Product demonstration and bead differentiation
Immediate response
Measurable results
Program length ads (infomercials)
Long-form ads running on all the networks at exactly the same time
Roadblocks
Advantages of product placement
Free from TiVo and DVRs
Products linked to characters
Credibility less of an issue
Disadvantages of product placement
Trade off between nonintrusive and noticeable
Little control over how brand or product is featured
Unclear if they work/effectiveness
Rating services for tv audience measurement
Nielsen & networks
Cable ratings
Defining tv markets for tv audience measurement
Designated market areas (DMAs)
Tv day parts
Early morning 6-9am Daytime 9am-4:30pm Early fringe 4:30-7:30pm Prime access 7:30-8pm Prime time 8pm-11pm Late news 11-11:30pm Late fringe 11:30-2am
Importance of dayparts?
Quantity and quality of viewers
Tv households
The number of households within a DMA that own a tv
DMA
Designated market areas
The number of households within a DMA that own a tv
Tv households
How many tv households have the tv on
Households using tv
Households using tv
How many tv households have the tv on
Program rating formula
Rating = Total TVHH tuned into program / Togal TVHH in an area x 100
Audience share formula
Share = TVHH tuned into program / HH with a TV turned on) x 100
This is a comparable measure of advertising weight, but does not reflect a markets size (Reachxfrequency)
GRPs
GRP formula for buying tv time
Reach (average rating) x frequency
Cost per point formula
CPP = Cost/Rating
Cost per thousand formula
CPM=Cost/Thousands of people (who watched the program)
Cost of reaching 1% of TVHH
Cost per thousand
What’s the most important figure for cost efficiency?
CPM calculated against size of your target market
Why are FOX prices higher than CBS?
Fox tends to be younger audiences, consumers are less brand loyal, more CLV
Run if schedule positioning
Television station/network decides when your ad runs
Preemption rates
Discounted price, advertiser loses the ad position if another advertiser offers to pay the higher “preemption rate”
Affidavits of performance
Proof that the ad ran as planned; similar to tear sheets
Makegoods
Compensation for missed ads or missed ratings
Advantages of radio ads
Selectivity (radio station formats) Immediacy Local relevance Can be cost efficient Reach and frequency
Disadvantages of radio ads
Limitations of sound
Audience fragmentation
Brief and fleeting (transitory medium
Clutter
Radio day parts
Morning 6am-10am Daytime 10am-3pm Afternoon drive 3pm-7pm Nighttime 7pm-midnight All night 12am-6am
Run of station basis (ROS) for radio
Similar to ROP (print) and ROS (TV); station decides when the ad runs
Total audience plan (TAP)
Package rate with a certain % of spots guaranteed to run during he better dayparts
This identifies the average number of people who listen to a specific station for at least 5 minutes during any 15 minute period of any daypart
Average quarter hour persons
Average quarter hour persons interpretation
Identifies the average number of people who listen to a specific station for at least 5 minutes during any 15 minute period of any daypart
AQH Share formula
AQH persons/AQH of all stations x 100
AQH Rating formula
AQH Persons/Target Audience x 100
Gross impressions radio formula
GI = AQH Persons x Number is Spots
GRP Radio formula
GRPs = (GI/Target Audience) x 100 GRPs = AQH rating x number of spots
Three types of internet advertising
Web sites
Banner ads
Interstitial (pop ups)
Pricing for banner ads is usually on what basis
CPMs
Sometimes performance
-click throughs
Affiliates
Affiliate marketing program for banner ad pricing
Website displays your banner; gets percentage of sales
These act as brokers for advertisers and websites
Pool hundreds/thousands of web pages together and facilitate advertising across these pages
Help advertisers get enough reach from their advertising
Ad networks
Advantages of online advertising
Selectivity Enormous reach Measurable Audience demographics Timeliness Interactive Proximity to purchase
Disadvantages of online advertising
Limited reach (mass medium?)
Measurement
Relatively high CPMs
Easy to ignore
Why is measurement a disadvantage of online advertising
No standardization
What do we count as an impression?
Issues with mobile advertising
Poor creative ad formats Focus on direct response? Banners -> videos Mobile space less relationship focused (feels private) Consumer indifference Ineffective targeting and ad blocking
Types of direct mail
Postcards Email Sales letters Brochures Statement stuffers Catalogs
Advantages of direct mail
Selectivity Extensive reach Personalized impact Competitive exclusivity Measurable response
Most selective medium
Direct mail
Medium with the highest response rate
Direct mail
Disadvantages of direct mail
High cost per exposure Delivery (cost/control) Negative attitudes Lack of content Overexposure
Two creative tactics to give the recipient of direct mail a reason to open/keep
Disguise sender
Make an offer
The key to effective direct mail advertising
Mailing list!
3 types of mailing lists
House list
Mail response list
Compiled list
Names of existing customers compiled over time
Mailing list with the highest response rate
House list
Respondents to the direct mail solicitations of other organizations
House lists of other direct mail advertisers
Mailing list with the second highest response rate
Mail response list
Built based on some geographic, demographic, psychographic, behavioral profile
Purchased (used multiple times) or rented (used once)
Lowest mailing list response rate
Compiled list
Mailing list response rate order
- House list
- Mail response list
- Compiled list
Out of home advertising
Media that reach prospects outside their homes
Most common form of out of home advertising
On-premise signage
Outdoor advertising advantages
Reach Frequency Geographic/demographic selectivity Impact Cost
This medium has the lowest cost per exposure of any major medium
Outdoor advertising
Disadvantages of outdoor advertising
Fleeting message Availability of locations Measurement Long lead times Creative challenge
Buying out of home media is based on
Daily GRPs
1 GRP = 1% of particular markets population
Buying 100 GRPs means message will provide daily exposure theoretically to 100% of markets total population
Pros of cinema advertising
Captive audience
Geographic selectivity
Audience demographics
Lack of clutter
Cons of cinema advertising
Netflix
Control
Frequency
Measurement
