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ROLE OF MEDIA IN ADVERTISING

Reema BBA/4589/10 Monika BBA/4547/10 Nipun BBA/4583/10 Nikhil BBA/4546/10

THE NATURE OF COMMUNICATION

The communication process is complex, and often unsuccessful

Television could combine visual images, sound, motion, and color into a program, thus is considered an ideal advertising medium.

Creativity and Impact Coverage and Cost Effectiveness Captivity and Attention Selectivity and Flexibility

Costs Lack of selectivity Fleeting message Clutter limited viewer attention Distrust negative evaluation

TELEVISION COULD COMBINE VISUAL IMAGES, SOUND, MOTION, AND COLOR INTO A PROGRAM, THUS IS CONSIDERED AN IDEAL ADVERTISING MEDIUM.

A basic decision for all advertisers is allocating their TV media budgets to network versus local or spot announcements. Network a network assembles a series of affiliated local TV stations o National coverage is available through networks o Affiliated stations are linked o Purchase transactions are simplified Spot/Local commercials shown on local TV with time purchased from individual stations o Commercials shown on local stations o May be local or national spot (non-network advertising done by a national advertiser) Network advertising is used by large national advertisers to disseminate their messages cost effectively and simplify their purchasing. Additionally, large national advertisers supplement their advertising in specific markets by using local/spot advertising. Local firms, such as banks, retailers, and auto dealers, use spot/local advertising to reach their local geographic markets.

Sponsorship
1. Advertiser assumes responsibility for the production and perhaps content 2. Sponsor has control and can capitalize on a shows prestige

Participations
1. Participating sponsors share the cost 2. May participate regularly or sporadically

Spot Announcements
1. May be

purchased by day part or adjacency

3. Advertiser isnt responsible for production


4. Participants lack control over content

Considerations here include the selection of a specific time period or day part segment and audience size and demographic composition. Common Television Day parts . Morning 7am - 9am, M-F Daytime 9am - 4:30pm, M-F Early fringe 4:30pm - 7:30pm, M-F Prime-time access 7:30pm -8pm, Sun.-Sat. Prime-time 8pm - 11pm, M-Sat. and 7pm-11pm, Sun. Late news 11-11:30pm, M-F Late fringe 11:30-1am, MF

SWEEPS PERIODS

Cost and Efficiency Receptivity Flexibility Mental imagery Integrated marketing opportunities

Creative Limitations Audience fragmentation Chaotic buying procedures Limited research data Limited listener attention Clutter

Visual elements of television commercials are transferred into the consumers mind by using a similar audio track in radio commercials

BUYING RADIO TIME


Network Radio

About 20% of all spots Allows great flexibility, targeting Purchase transaction can be difficult

Spot Radio

Local Radio

Nearly 80% of advertisers are local

Local CATV is becoming competitive

Ensure target audience coverage Identify advertising rates Set time schedules Optimize the advertisers budget

Consumer

Farm

Business

Selectivity Reproduction quality Creative flexibility Permanence Prestige Receptivity, engagement Services

Costs Limited reach and frequency Long lead time Clutter and competition

SMALLER ADS CAN EXTEND A MEDIA BUDGET

Primary Circulation Total Audience Guaranteed Circulation

Controlled Circulation Pass-Along Readership

Circulation Verification

SRDS Media Data

Reader Data from Magazines

Ad rates and circulation figures

Demographics
Financial profile

General requirements
Contact & Web site information

Lifestyle information

Media kits
Product usage characteristics Audit statements

Circulation

Size of the ad
Position in the publication

Editions chosen
Production requirements

Insertion number/frequency
Use of color

Advertising $$$

Time
News Network Newsweek U.S. News & World Report

Local (mostly retail) Display Ads National or general Small items arranged by topic

Classified Ads

Rates based on size, duration Legal notices - public reports

Public Notices

Notices by people, organizations Political ads

Printed Inserts

Prepared separately by advertisers

Extensive penetration Flexibility Geographic selectivity Involvement, acceptance Services offered

Poor reproduction quality Short life span Lack of selectivity Clutter

NEWSPAPER CIRCULATION FIGURES


Other Zone Other Zone

City Zone

Other Zone

Retail Trading Zone

PURCHASING NEWSPAPER SPACE

General rates
Advertisers

are outside the newspapers designated market area Includes national advertisers Are up to 75% higher than local rates

Retail or local rates


Advertisers

conduct business within the designated market

The Newspaper National Network targets national advertisers in six low-use categories: automotive, cosmetics and toiletries, good, household products, liquor and beverages, and drugs and remedies. The networks goal is to attract more advertising dollars from national advertisers in these categories by promoting the strategic use of newspapers and facilitating the purchase of newspaper space with the one order/one bill model.

NEWSPAPER ADVERTISING RATES


Standard Advertising Units
One inch by 2 1/16 inches wide

Sales by Column Inch


1 inch deep by 1 column width

Fits in all newspapers that use this format size

Column widths vary

Simplifies rate quotes

Column width affects ad size, shape, cost

Simplifies production process

Complicated purchasing and placement process

RATE STRUCTURES AND TERMINOLOGY


General rates Split Run Rates

Combination Rates Open Rates Flat Rates National Rates

Run-of-Paper [ROP] Local Rates Preferred Position Color Rates

The role of support media is to reach those people in the target audience that primary media such as TV or print may not have effectively reached and to reinforce or support the advertising message. There are various forms traditional support media. Some of the more popular types are:

Billboards Kiosks Posters Promotional products Yellow pages Wall murals

OUT-OF-HOME ADVERTISING MEDIA

AD EXPENDITURES BY PRODUCT CATEGORY

Outdoor advertising is one of the more pervasive communication forms, particularly in urban and suburban settings. This slide summarizes the characteristics of outdoor advertising, which include:

Reach can reach many people quickly Frequency potential for many impressions Flexibility many options are available Cost low cost per exposure Impact size, shape, and lighting may lead to impact Aerial advertising sky banners, blimps, and sky writing Mobile billboards on trucks, vans, and trailers In-store media such as signs, videos, and kiosks

various forms of alternative out-of-home media, including:


The first two categories are really additional forms of outdoor advertising; the last category covers the billions of dollars spent each year to promote products in retail environments.

BLIMPS CARRY MESSAGES HIGH AND WIDE

Advertisers use in-store media, such as in-store ads, aisle displays, store leaflets, shopping cart signage, and in-store TV to reach shoppers at the place where they buy. One-third of shoppers say in-store ads influence them to make a purchase, 44 percent notice such ads, and 75 percent of those who notice the ads are likely to purchase the advertised brand.

There are numerous outdoor media available, adding to the pervasiveness of this medium. Transit advertising is targeted at the millions of people who are exposed to commercial transportation facilities, including buses, taxis, commuter trains, trolleys, airplanes, and subways. Many companies like this category of media because of its lower costs, frequency of exposure, flexibility, and point-of-sale presence.

the advantages of using outdoor advertising:


Wide local coverage with proper placement, exposure of up to 100% in local markets is possible. High frequency because purchase cycles typically occur in 30-day periods, consumers are usually exposed a number of times. Geographic flexibility outdoor ads can be placed almost anywhere Creativity large print, colors, and other elements attract attention. Waste coverage not everyone who passes by an outdoor ad is part of the target market. Limited message capability messages are limited to a few words and/or an illustration because the exposure time is so short Wear-out people are likely to get to get tired of seeing the same ad, day after day. High cost outdoor advertising can be expensive because of the decreasing amount of signage available and the higher cost associated with inflatable signs. Measurement problems it is very difficult to measure reach, frequency, and other effects of signs like this. Image problems outdoor advertising has suffered some image problems, as well as some disregard among consumers.

the disadvantages of using outdoor advertising, including:

Transit advertising can be an effective medium, but its strengths and weaknesses must be understood to use it properly.

Advantages
o o

Exposure long length of exposure because of ride times Frequency commuters and riders can be exposed regularly
Reach does not always reach the right target consumer Mood of audience mass transit can be crowded and hurried

Disadvantages
o o

Promotional products marketing is the more up-to-date name for specialty advertising. This form of advertisings is, essentially, giving away items that are imprinted with the advertisers name, contact information, and so on. There are more than 15,000 advertising specialty items, including ballpoint pens, coffee mugs, key rings, calendars, T-shirts, and matchbooks. Some of the more unconventional specialties are plant holders, wall plaques, gloves, glassware, trophies, and awards. The top six promotional products are listed on this slide.

Advantages
o o o o o o o

Selectivity distributed directly to the targeted customer Flexibility a variety of specialty items are available Frequency designed for retention which results in repeat exposures Cost most items are affordable Goodwill free gifts make consumer feel good High recall high recall of the advertisers name and message

Augmentation supplements other media Disadvantages o Image cheap giveaway can cheapen brand/company image Saturation many organizations use this medium o Lead time takes time to have large numbers of items produced This medium is a very effective tool as a supplement to traditional media.
o

An overlooked, but popular medium for local and national advertisers is the Yellow Pages, which can take several forms:

Specialized directories targeted at select markets, such as ethnic or religious groups Internet Yellow Pages 3.3 billion references in 2006 Other services refers to additional items that are distributed with the Yellow Pages, such as coupons and freestanding inserts

The Yellow Pages are often referred to as directional medium, because the ads do not create awareness or demand for products and services. Rather, once consumers have decided to buy, the Yellow Pages point them to where the purchase can be made.

Publishers of Yellow Pages often promote them as the final link in the purchase cycle, since customers use them when they are ready to make a purchase. : Advantages o Wide availability used more than 13.4 billion times per year o Action oriented used by consumers when they are considering action o Low cost ad space and production costs are low o Frequency because of their longevity (published yearly), consumers return to the directories again and again o Non-intrusive consumers choose to use the Yellow Pages Disadvantages o Market fragmentation essentially local media, plus an increasing number of specialized directories o Timeliness because they are printed just once per year, they become outdated o Lack of creativity creativity is limited, although the use of four-color processes is increasing o Lead times ads must be placed long before the book appears o Clutter many ads from many businesses o Size requirements response to ads is tied directly to the size of the ad. Many disadvantages can be reduced or eliminated with the Internet.

Many movie theaters are now showing commercials shown before the feature film and previews. Advantages o High exposure over a billion people go to movies every year o Audience mood good moods can carry over to the product o Cost low in absolute and cost per exposure o Good recall high percentage of recall compared to TV o Lack of clutter theaters limit the number of ads o Proximity theaters are close to shopping malls where many products are purchased o Segmentation allows advertisers to target specific demographic segments, based on the type of movie being shown. As a rule, moviegoers are above-average in education and affluence. Disadvantages o Irritation people who pay to see a movie perceive advertising as an intrusion o Cost CPMs tend to be higher than in other media

Another rapidly growing medium is in-flight advertising, which includes magazines, catalogs, videos, and radio. Nearly every airline has an in-flight magazine, and most have video and audio programming available where advertising messages can be run.

Advantages
o o o o

Reaches a very desirable audience Reaches a captive audience Low relative cost Segmentation capabilities High potential for irritation Limited availability of medium Lack of audience attention Potential for rapid wearout

Disadvantages
o o o

the various types of branded entertainment, which is a form of advertising that blends marketing and entertainment through television, film, music talent, and technology: Product Placements showing the actual product or an ad for it as part of a movie or TV show Product Integration the product is woven throughout the program Advertainment the creation of video and/or music content by an advertiser in an attempt to entertain viewers while advertising their products Content Sponsorship rather than developing their own content, some advertisers agree to sponsor specific programs, receiving product placements, integration, and promotions in return. Ad-Supported Video on Demand specialized content programs offered through cable TV networks that are developed by advertisers and provided to the cable operators for free. Others Other forms of branded entertainment (through wireless, mobile, etc.) continue to develop

o o o o o

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o o o o o o o o

Advantages High exposure... billions of people see movies each year, the life of the average movie is 3.5 years, moviegoers are attentive, and there is no zapping. Frequency there may be opportunity for repeated exposures in the movie. Support for other media there is a growing trend toward cross-promotion of the product and movie in multiple media venues Source association studies confirm that when consumers see their favorite celebrity using a certain brand, it leads to a favorable product image and sales Economy for some products, like an Apple iPod, placements may be free High recall average recall is 38 percent, higher than reported for TV viewings. Disadvantages High absolute cost increased demand for branded entertainment, coupled with rising emphasis by the studios for cross-promotions, drives costs up considerably Time of exposure there is no guarantee that viewers will notice the product Limited appeal no potential for discussing product benefits or details Lack of control advertiser has no say over when, how often product is shown Public relations consumers are annoyed by crass commercialization Competition increased competition for placement has increased the cost of doing so Negative placements.. products may appear in scenes that are disliked by the audience Clutter too many placements and integrations will eventually lead to clutter

The variety of options for placing ads appears endless. A few of the faster growing and more widely used options are: Videogame ads Parking lot ads Bathroom ads Place-based media Others

Advantages
o o o

Awareness and attention Cost efficiencies Targeting Irritation Wearout

Disadvantages
o o

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