Advertising 3100 Lecture 10 Notes
Advertising 3100 Lecture 10 Notes ADPR 3100-0
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This 4 page Class Notes was uploaded by Bridget Notetaker on Monday September 26, 2016. The Class Notes belongs to ADPR 3100-0 at University of Georgia taught by Nathaniel J. Evans in Fall 2016. Since its upload, it has received 22 views. For similar materials see Principles of Advertising in Advertising at University of Georgia.
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Date Created: 09/26/16
Advertising 3100 Lecture 10 Notes Newspapers: o Profile: 1. Reach: low 2. Frequency: high 3. Cost/Impression: high o Strengths: High reach with older, upscale, opinion leaders Desirable target markets Immediacy: next day publications Credibility o Drawbacks: Clutter Declining readership Increasing cost of advertising Challenges from online news aggregators Nobody wants to pay for news anymore o Newspaper Advertising Categories: Classified Ex: a person buys a “square” in the newspaper to sell their car About $10 billion a year in as expenditures in 2008 Now less than $5 billion due to social media like Craigslist Display All non-classified newspaper advertising is called Display Retail (local): all places that a person could physically go to in their town (ex: Wal-Mart, Creature Comforts) Local retailers are the main source of display ad $ Changing retailer market: consolidation, greater market share, service concentration o Put stress on small business/retailers (reduces their ad budget and ability to spend) National: places that cannot physically be walked into (ex: Samsung/AT&T) Standard Advertising Units: allow national advertisers to seamlessly buy across multiple outlets/in different markets Co-op (Cooperative Advertising) Partnership: Local retailers: lower costs National companies: extended reach National advertisers cover anywhere from 50% to 100% o Buying Space: Flat Rate: no discounts Uniform charge regardless of space bought Open Rate: discount structure Also refers to the highest rate against which all discounts are applied Two types of Open Rates: 1. Bulk: advertiser is charged proportionally less as more space is purchased SPACE 2. Frequency: advertiser is charged proportionally less as more insertions are purchased NUMBER OF ADS o Calculation Sheet: ***MEMORIZE*** CPM (cost per (Cost of Space x (1,500 x thousand) 1,000)/ circulation 1,000)/40,000 = 37.5 Reach (Total (40,000/120,000) x circulation/target 100 = 33.33 market population) x 100 GRPs Reach x # of ads 33.33 x 8 = 266.67 bought $ per GRP Total cost of print 1,500/266.67 = 5.62 space/GRPs o GRPs: GRPs (gross rating points) reach x frequency How do we get reach? Reach = (total circulation of all ads/total target market) x 100 o Cost-Effectiveness: How cost effective is your mix of print placements? Refer to $ per GRP formula Magazines: o Profile: 1. Reach: extremely low 2. Frequency: medium 3. Cost/impression: high o Drawbacks: Cost Clutter Long lead time Difficult to reach large audiences segments o Strengths: Segmenting Strong visuals Long life = boost reach and frequency per issue o Best use: Complete information Supplemental Older, targeted, more affluent segments o Buying: Cost and number of readers aren’t everything Effectiveness in reaching your target market is very important o Calculation Sheet: ***MEMORIZE*** CPM (cost per (Cost of Space x (250,000 x 1,000) / thousand) 1,000) / circulation 1,500,000 = 166.67 Weighted CPM (Cost of Space x (250,000 x 1,000) / 1,000) / circulation in 275,000 = 909.10 your Target Market Reach (Target Market (275,000/5,000,000) x Circulation/Target 100 = 5.5 Market Population) x 100 GRPs Reach x # of Ads 5.5 x 15 = 82.5 Bought $ per GRP Total Cost of Print 250,000 / 82.5 = Space / GRPs 3,030.30 o Cost Efficiency: Refer to CPM and weighted CPM formulas Cost efficiency of a publication in reaching portion of readership that is your target audience (region) o GRPs: GRPs (gross rating points) reach x frequency How do we get reach? o Refer reach formula o Cost Effectiveness: How cost effective is your mix of print placements? Refer to $ per GRP formula o Verification: Audit Bureau of Circulations (ABC) Verifies circulation Syndicated market research Readership studies o Print: Advantages: o Trusted and influential (boosts effectiveness) o Segmenting geographically; lifestyle Disadvantages: o Comparatively high cost o Clutter o National, large markets unreachable
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