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Hill Education. Learning Objectives

©McGraw-HillEducation.Allrightsreserved.Authorizedonlyforinstructoruseintheclassroom.NoreproductionorfurtherdistributionpermittedwithoutthepriorwrittenconsentofMcGraw-HillEducation.Chapter Ten
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©McGraw-Hill Education.
Learning Objectives
• Learning Objective 10.1: Explain the advantages
and disadvantages of magazine advertising.
• Learning Objective 10.2: Discuss how magazine
circulation is measured and rates are set.
• Learning Objective 10.3: List the advantages and
disadvantages of newspaper advertising.
• Learning Objective 10.4: Describe the major types
of newspapers and how they charge for
advertising.
• Learning Objective 10.5: Show how print media
work with new technologies.
©McGraw-Hill Education.
Selecting Media
Selecting media involves:
• Understanding the unique characteristics of
media alternatives
• Determining which medium will be the most
effective
Reach: number of different people exposed, at least
once, to a medium during a given period of time
Frequency: average number of times those people
are exposed to that medium during that period of
time
©McGraw-Hill Education.
Print Media
Print media:
• Messages produced on any printed medium
• Has more permanence than television or radio
• Presents more detailed information
• Important component of the media mix
Media mix: combination of media types that work
together to most effectively deliver an advertiser’s
message
©McGraw-Hill Education.
Pros and Cons of Magazine Advertising
Advantages
– Flexibility
– Color
– Authority and believability
– Permanence
– Prestige
– Audience selectivity
– Cost-efficiency
– Selling power
– Reader loyalty
– Extensive pass-along
readership
– Merchandising assistance
Disadvantages
– Lack of immediacy
– Shallow geographic
coverage
– Inability to deliver mass
audiences at a low price
– Inability to deliver high
frequency
– Long lead time
– Heavy advertising
competition
– High cost per thousand
– Declining circulations
©McGraw-Hill Education.
Special Possibilities with Magazines (1 of 2)
Bleed: color, type, or visuals that run all the way to
the edge of a printed page
Cover position: advertising space on the front inside,
back inside, or back cover pages of a publication,
usually sold at a premium price
Junior unit: large magazine ad placed in the middle
of a page and surrounded by editorial matter
©McGraw-Hill Education.
Special Possibilities with Magazines (2 of 2)
Island halves: half-page of magazine space that is
surrounded on two or more sides by editorial matter
and sold at a premium price
Insert: ad or brochure printed by the advertiser and
shipped to the publisher for insertion into a
magazine or newspaper
Gatefold: magazine cover or page extended and
folded over to fit into the magazine, sold at a
premium price
©McGraw-Hill Education.
Categorization of Magazines:
Content
Consumer magazines: information- or
entertainment-oriented periodicals directed toward
people who buy products for their own consumption
Farm publications: directed to farmers and their
families or to companies that manufacture or sell
agricultural equipment, supplies, and services
Business magazines: target business readers and
include trade publications, industrial magazines, and
professional journals
©McGraw-Hill Education.
Categorization of Magazines:
Geographic Scope
Local city magazine: caters to upscale, professional
people interested in local arts, fashion, and business
Regional publications: targeted to a specific area of
the country
National magazines: magazines that are distributed
throughout a country
©McGraw-Hill Education.
Categorization of Magazines:
Size
Size classification Magazine Full-page ad size
Large Interview 4 col. x 170 lines
9 ½ x 11 1/3 inches
Flat Time 3 col. x 140 lines
7 x 10 inches
Standard National Geographic 2 col. x 119 lines
6 x 8 ½ inches
Small or pocket Reader’s Digest 2 col. x 91 lines
4 ½ x 6 ½ inches
©McGraw-Hill Education.
Considerations When Buying Magazine
Space
• Readership
• Cost
• Mechanical requirements
• Closing dates or deadlines
• Circulation and rate-card information
©McGraw-Hill Education.
Understanding Magazine
Circulation (1 of 4)
Rate base: circulation figure on which the publisher
bases its rates
Guaranteed circulation: number of copies of a
magazine that the publisher expects to sell;
publisher must refund the advertisers if this figure is
not reached
©McGraw-Hill Education.
Understanding Magazine
Circulation (2 of 4)
Circulation audit: thorough analysis of circulation
procedures, distribution outlets, and other
distribution factors
Audit Bureau of Circulations (ABC): verifies
circulation and other marketing data on magazines
for the benefit of its members
Primary circulation: number of people who receive a
publication through direct purchase or subscription
©McGraw-Hill Education.
Understanding Magazine
Circulation (3 of 4)
Secondary (pass-along) readership: number of
people who read a magazine in addition to the
primary purchasers
Vertical publication: business publications aimed at
people in a specific industry
Horizontal publications: business publications aimed
at people with job functions that cut across industry
lines
©McGraw-Hill Education.
Understanding Magazine
Circulation (4 of 4)
Paid circulation: total number of copies of an
average issue sold through subscriptions and
newsstand sales
Controlled circulation: free publication mailed to a
select list of individuals who are in a unique position
to influence the purchase of advertised products
©McGraw-Hill Education.
Merchandising Services Provided by
Magazines to Advertisers
• Special promotions at retail stores
• Marketing services to help readers find local outlets
• Response cards that allow readers to request brochures
• Help handling sales force, broker, wholesaler, and retailer
meetings
• Advance copies for the trade
• Research into brand preferences, consumer attitudes, and
markets
©McGraw-Hill Education.
Dates Affecting Magazine Purchases
Cover date: date printed on the cover of a
publication
On-sale date: date a magazine is issued
Closing date: publication’s final deadline for
supplying printing material for an advertisement
©McGraw-Hill Education.
Reading Rate Cards (1 of 2)
Cost per thousand (CPM): cost of reaching 1,000
people in a medium’s audience, used to compare the
cost of various media vehicles
Frequency discounts: advertisers earn this by
running advertising repeatedly in a specific time
period
©McGraw-Hill Education.
Reading Rate Cards (2 of 2)
Volume discounts: given for purchasing print space
in bulk quantities
Cash discounts: given for prompt payment
Premium rates: charged for special features; rates
differ for geographic or demographic issues
– Geographic editions: distributed in specific geographic
areas
– Demographic editions: distributed to readers who
share a demographic trait
©McGraw-Hill Education.
Pros and Cons of Newspaper
Advertising
Advantages
– Mass, local medium
– Comprehensive in scope
– Geographic selectivity
– Timeliness
– Credibility
– Selective attention
– Creative flexibility
– An active medium
– A permanent record
– Reasonable cost
Disadvantages
– Lack of selectivity
– Short life span
– Low production quality
– Clutter
– Lack of control
– Overlapping circulation
©McGraw-Hill Education.
Categorization of Newspapers:
Frequency of Delivery
Daily newspaper: published at least five times a
week, in morning or evening editions
Weekly newspapers: published once a week and
serve readers in small urban or suburban areas or
farm communities with an emphasis on local news
and advertising
©McGraw-Hill Education.
Categorization of Newspapers:
Physical Size
Standard-size newspaper: measures 22 inches deep and 13
inches wide and is divided into six columns
Tabloid newspaper: about half the size of standard-size
newspaper, 14 inches deep and 11 inches wide
Standard advertising unit (SAU): system of standardized
advertisement sizes that is accepted by all standard-size
newspapers
• Column inch: basic unit by which publishers bill for
advertising, equal to one vertical inch of column space;
SAU column inch: 2 1/16 inches wide by 1 inch deep
• 56 standard sizes for newspapers, 32 for tabloids
©McGraw-Hill Education.
Categorization of Newspapers:
Audience/Other Types
By type of audience
• Some newspapers cater to special-interest audiences,
specific ethnic markets, foreign-language groups, or
religious groups.
Others
• Sunday supplement: newspaper-distributed Sunday
magazine printed by rotogravure on smoother paper
stock
• Shoppers: free publications consisting almost entirely
of local advertising used by consumers to find dealers
and make price comparisons
©McGraw-Hill Education.
Types of Newspaper Advertising (1 of 3)
Display advertising: includes copy, illustrations or
photographs, headlines, coupons, and other visual
components
• Reading notice or advertorial: looks like
editorial content, but flagged as advertising to
avoid confusion; may cost more than normal
display advertising
• Cooperative (co-op) advertising: sharing of
advertising costs by the manufacturer and the
distributor or retailer
©McGraw-Hill Education.
Types of Newspaper Advertising (2 of 3)
Classified ads: arranged under subheads that
describe the class of goods or the need the ads seek
to satisfy
• Rates based on the number of lines the ad
occupies
• Classified display ads: run in the classified
section of the newspaper but have larger-size
type, photos, art borders, abundant white
space, and color
©McGraw-Hill Education.
Types of Newspaper Advertising (3 of 3)
Public notices: announce legal changes in business,
public governmental reports, notices by private
citizens and organizations, and financial reports
Preprinted inserts: advertisements printed in
advance by the advertiser and inserted into a
specific edition, appearing as a separate, smaller
section of the paper
©McGraw-Hill Education.
Understanding Newspaper Readership
and Circulation (1 of 4)
Rate card: lists advertising rates, mechanical and copy
requirements, deadlines, and other information
National rate: higher rate charged owing to the added costs
of serving national advertisers
Flat rate: standard rate with no discount allowance
Open rate: highest rate for a one-time insertion into a
newspaper
Contract rate: special rate offered to local advertisers who
sign an annual contract for frequent or bulk-space purchases
©McGraw-Hill Education.
Understanding Newspaper Readership
and Circulation (2 of 4)
Bulk discounts: discounted rates (calculated by
multiplying the number of inches by the cost per
inch) as they use more inches
Frequency discounts: discount earned by running an
ad repeatedly in a specific time period
Earned rate: discount applied retroactively as the
volume of advertising increases throughout the year
©McGraw-Hill Education.
Understanding Newspaper Readership and
Circulation (3 of 4)
Short rate: charged to advertisers who, during the year, fail to
fulfill the amount of space for which they have contracted
Combination rates: offered for placing an ad in (1) morning
and evening editions of a newspaper; (2) two or more
newspapers owned by a publisher; or (3) two or more
newspapers affiliated in a newspaper group
Run-of-paper (ROP) advertising rates: newspaper’s
discretionary right to place a given ad on any page or in any
position it desires
Preferred-position rate: higher rate charged for a choice
position
©McGraw-Hill Education.
Understanding Newspaper Readership
and Circulation (4 of 4)
Full position: preferred position near the top of a page or on
the top of a column next to reading matter. Usually
surrounded by editorial text and may cost 25 to 50 percent
more than ROP rates
Color advertising: cost is based on the black-and-white rate
plus a charge for each additional color
Split runs: running two different ads of identical size, but
different content, in the same or different press runs on the
same day to compare effectiveness of different advertising
approaches
©McGraw-Hill Education.
Insertion Order
Form submitted to a newspaper or magazine when
an advertiser wants to run an advertisement, stating
dates on which the ad is to run, its size, requested
position, and rate
Proof copy: Copy of the completed advertisement
used to check for final errors and corrections
• Most national ads arrive camera ready,
meaning there is no need for a proof copy.
©McGraw-Hill Education.
Tearsheets
Printed ad cut out and sent by the publisher to the
advertiser as proof of the ad’s print quality and proof
that the ad was published
©McGraw-Hill Education.
Print Media and New Technologies
Online publications offer ads in the form of:
• Banners
• Pop-ups and pushdowns
• Floating ads and billboards
• Interstitials and videos
Publishers are looking to increase revenues
generated by digital subscriptions.
©McGraw-HillEducation.Allrightsreserved.Authorizedonlyforinstructoruseintheclassroom.NoreproductionorfurtherdistributionpermittedwithoutthepriorwrittenconsentofMcGraw-HillEducation.Advertising
Chapter 10
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