Lecture 12, Sept. 21st
Lecture 12, Sept. 21st ADPR 3100-0
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This 6 page Class Notes was uploaded by Meghan Shah on Tuesday October 4, 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 6 views. For similar materials see Principles of Advertising in Advertising at University of Georgia.
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Date Created: 10/04/16
Lecture 12: Newspapers and Magazines Sept. 21st Newspapers Profile ○ Low reach (circulation) ○ High frequency (daily papers) ○ Fairly high cost per an impression ▪ Price has been driven up by the decline of readers/subscribers ○ Supplemental medium (now) ○ Upscale, older audience ○ Good for local and retail ads Strengths ○ Higher reach with older, upscale people and opinion leaders ○ Desirable target markets ○ Immediacy ▪ Next day publication Makes it very easy to fix and adapt Flexible ○ Credibility ▪ Newspapers are seen as the medium with the most credibility People trust newspapers and journalists, because they’re more objective Drawbacks ○ So much clutter ▪ People want to read articles, not ads ○ Declining readership ▪ More and more content is going online ○ Increasing cost of advertising ▪ In order to substitute the loss of subscribers, the cost of placing ads has gone up ○ Challenges from online news aggregators ▪ People don’t want to pay for the news Information is so much easier to access now Can be accessed for free Newspaper Advertising Categories ○ Classified ○ Display ▪ Local retail ▪ National ○ Coop (Cooperative Advertising) ○ Classified ▪ Personal – people placing ads ▪ About $10 billion a year in ad expenditures in 2008 ▪ Now, less than $5 billion a year ▪ What could be contributing to this? Sites like Craigslist and Facebook, social media, and apps ○ Display ▪ Basically all other, nonclassified newspaper advertising ▪ Primarily local (retail) businesses: Local retailers are the main source of display ad $ These are physical places you can go and buy stuff Local to the area – can be big chains/national stores in the immediate area Products are nation, but the actual stores and retailers are local Changing retailer market: Consolidation & greater market shares Service concentration – like Walmart, “onestopshop” Puts a lot of stress on small businesses/retailers It reduces their ad budget and ability to spend ▪ Secondary source of $ are national advertisers Can be brands with no local or nearby stores National ads are more about branding and less about trying to get people to go to the stores Standard Advertising Units Allow national advertisers to seamlessly buy across multiple outlets/in different markets Don’t have to prepare different ads for different newspapers ○ Coop ▪ Partnerships Local retailers lower costs National companies expand reach National advertisers cover 50 – 100% of costs Big national brands (that don’t or mostly don’t have their own stores) sell their products through local retailers, especially big department stores, like Belk. The brand and store advertise together “Come get your new ___ at ___store” The goal is to get consumers into the store buy the brand’s products 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 kinds: ▪ Bulk – advertiser is charged proportionally less as more space is purchased. Amount of space ▪ Frequency – advertiser is charged proportionally less as more insertions are purchased. Number of ads. ○ CPM = (cost of space * 1000) / circulation ▪ CPM – cost per thousand ▪ Example: Red & Black of Athens Cost for quarter page: $1440.60 3 quarter page ads Circulation: 10,000 Population of Athens: 120,000 CMP = [(3(1440.6) * 1000] / 10,000 = $388.80 ○ GRPs = reach * frequency ▪ Reach = [(total circulation of all ads) / (total target market)] * 100 ▪ Frequency = number of ads ▪ Example: Reach = (10,000 / 120,000) * 100 = 8.33 Frequency is 3 GRPs = 25 ○ Costeffectiveness ▪ $ per GRP = (total cost of print space)/ (GRPs delivered by print) ▪ Example: $ per GRP = 3,888 / 25 = $155.52 3,888, because 3 ads at $1440.60 each 25 is # of GRPs Magazines Profile ○ Very low reach ▪ Low circulation, low readership numbers ○ Medium frequency ○ Very high cost per impression ▪ Magazines have nicer quality than newspapers ○ Supplemental medium ○ The have very niche audiences. ▪ Targeted audiences flock to certain magazines ▪ Advertisers choose specific magazines to advertise in, because the readers are the same kind of people who are likely to buy the advertised products Strengths ○ High credibility ○ Advertising to a specific target audience ○ High quality (production) ○ More creative flexibility ○ Long shelf lives ▪ Articles can be relevant and useful for years ▪ Boosts reach and frequency ○ Segmenting ▪ Super targeted audiences ▪ Strong visuals Drawbacks ○ High cost ○ Lots of clutter ▪ People want content, not the as ○ Long lead time ▪ Ads have to be designed and placed months before the ad is run ▪ Difficult to reach large audience segments ▪ Low frequency Most magazine print only once a month Selfselection bias – situations wh the caracteristics of the people which cause them to select themselves in the group create abnormal or undesirable conditions in the group Best Use ○ Complete information ▪ Detailed articles ○ Supplemental ○ Older, targeted, more affluent segments ○ Target market must be a big city Creative flexibility ○ Many different kinds of spreads and layouts ○ Can use/add certain elements to the medium ▪ The opaque page over the picture ▪ The magazine where the inside of the front goes with the inside of the back ▪ Popups ▪ Interactive ads The tightening of the bra Scratch and sniff Rip out pages and use the magazine as a mirror when sun tanning Make things like a bottle opener Edibles ▪ With the internet and smart phones, you can have multiplatform ads Much more interactive Immersive Super Apps Videos Games Buying Space in Magazines ○ Prices depend on size and frequency ○ Ex: Car & Driver Space 1 time 6 times 12 times 1/2 page $27, 612 $25,955 $24,298 1/3 page $19,506 $18,392 $17,218 1/6 page $10,875 $10,223 $9,570 Buying ○ Cost and number of readers aren’t everything ○ Effectiveness in reaching your target market is very important ○ Example: ▪ Cost of space: $250,000 ▪ Population: 1,500,000 ▪ In target market circulation: 275,000 ▪ Target market population: 5,000,000 ▪ Number of ads bought: 15 ○ CPM = (cost of space * 1,000) / circulation ▪ Cost per thousand ▪ Example: (250,000 * 1000) / 1,500,000 = $166.67 per thousand ○ Weighted CPM = (cost of space * 1,000)/ circulation in your target market ▪ Ex: (250,000 * 1,000) / 275,000 = $909.10 per thousand (weighted) ○ Reach = [target market circulation / target market population] * 100 ▪ Example: (275,000 / 5,000,000) * 100 = 5.5 % reach ○ GRPs = reach * number of ads bought ▪ Ex: 5.5 * 15 = 82.5 ○ $ per GRP = total cost of print space / GRPs ▪ Ex: 250,000 / 82.5 = $3,030.30 per GRP Verification ○ Audit Bureau of Circulations (ABC) ▪ Verifies circulation ○ Syndicated market research ▪ Readership studies Print Advantages ○ Trusted and influential ▪ This boosts effectiveness ○ Segmenting ▪ Geographically or lifestyle Disadvantages ○ Comparatively high cost ○ Clutter ○ National, larger markets are unreachable
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