Chapter 14: Advertising
Why Companies Advertise
- Advertising is the public promotion of something such as a product, service, business, or event, to attract or increase interest in it.
- Advertisers use humor, creativity, style, and originality to create an image for their products and services.
- A medium is a channel or system of communication.
- Media are the members of the mass media.
- Mass media are channels of communication, such as television, radio, and newspapers.
- Print media include newspapers, magazines, signs, and billboards.
- Newspapers are the main advertising medium in the United States.
- Most magazines are national and appear every week (such as Time) or every month (such as Seventeen)
- Television advertising combines sounds, images, and motion.
- TV ads can be informative, entertaining, or creative
- An infomercial is a 30-minute commercial.
- Direct-mail advertising is the biggest advertising medium after television and newspapers.
- Direct-mail advertising consists of ads sent by mail to people’s homes and businesses.
- Directory advertising appears mostly in phone books
- Radio ads can reach a wide audience.
- However, they may not be as effective as TV or magazine ads because they cannot use images.
- The two main types of online ads are pop-up and banner ads.
- Pop-up ads appear in a new browser window when you first log on to a Web site.
- Banner ads are displayed across the top or bottom of the Web page.
- A webcast is a broadcast made on the Internet.
- Billboards provide the most common form of outdoor advertising
- Transit advertising usually consists of posters placed on the sides of buses, in subway stations, inside trains, and at airports.
- Media planning is the process of selecting advertising media and deciding the time and space in which the ads should appear
- Many businesses develop advertising by hiring advertising agencies.
- An advertising agency is a business that specializes in developing ads and ad campaigns for its clients.
- An ad campaign is a series of ad messages that share a single idea and theme.
- To understand media measurement, you need to become familiar with several key terms.
- First, the number of homes or people exposed to an ad is called the audience.
- A single exposure to an advertising message is called an impression.
- Frequency is the number of times an audience sees or hears an ad.
- Cost per thousand (CPM) is the media cost of exposing 1,000 readers or viewers to an advertising impression.
- The “M” in CPM comes from the word mille, which is Latin for “thousand.”
- Knowing the potential audience, how frequently your ad will be seen, and its CPM can tell you if the rates charged by various media are right for your ad budget.
- To reach customers, advertising uses a set format that is defined in terms of time (a 60-second TV or radio ad) or space (a half-page newspaper ad).
- A media rate or advertising rate is the amount of money it costs to display or broadcast an ad.
- Ad rates for newspapers and magazines are based on circulation, or the number of people who buy them, and audience, the number of readers per issue.
- The size of the ad also affects the cost.
- Magazine rates are based on circulation, the type of readership, and production techniques.
- Premium position refers to ad placement.
- Ads placed in prime positions, such as on the back cover or the inside of the first page, are more expensive to buy.
- The cost of TV and radio ads depends on the size of the audience, the reach of the station, and the time of day an ad is broadcast.
- Prime time is the time period when the network TV or radio audience is the largest.
- TV audiences are usually largest between 7 P.M. and 11 P.M., when most viewers are at home.
- The cost of Internet advertising is based on the type, size, and format of ads.
- Types include banner ads, rich-media enhanced banner ads, and pop-up ads.
- Paid search ads are Internet ads that online advertisers bid on for search engine queries.