Chapter 14: Advertising

Advertising Media

\

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.

\

Types of Media

• 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 Measurement and Rates

\

Media Planning

• 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.

\

Media Measurement

• 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.

\

Media Rates

• 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.

\