Learning Objectives. Learning Objectives 17/03/2016. Chapter 12 Evaluation of Media: Magazines and Newspapers

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1 Chapter 12 Evaluation of Media: Magazines and Newspapers Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives To examine the various types of magazines and newspapers and the value of each as an advertising medium To analyze the advantages and limitations of magazines and newspapers as advertising media 12-2 Learning Objectives To discuss how advertising space is purchased in magazines and newspapers, how readership is measured, and how rates are determined To consider future developments in magazines and newspapers and how these trends will influence their use as advertising media

2 Magazines and Newspapers Present detailed information that can be processed at the reader s own pace High-involvement media Magazines are the most specialized of all advertising media 12-4 Classifications of Magazines Consumer magazines Farm publications Business publications 12-5 Consumer Magazines Bought by the general public for information and/or entertainment Classification by: Distribution - Subscription, circulation, and store distribution Frequency - Weekly, monthly, and bimonthly Special-interest magazines - Help reach target audience with little wasted coverage or circulation

3 Farm Publications Directed to farmers and their families Range from general-interest magazines to those in specialized agricultural areas Not classified with business publications 12-7 Business Publications Major classifications Magazines for specific professional groups Industrial magazines for businesspeople in manufacturing and production industries Trade magazines for wholesalers, dealers, distributors, and retailers General business magazines for all business executives Health care publications for various areas 12-8 Advantages of Magazines Selectivity Reproduction quality Creative flexibility Permanence Prestige Consumer receptivity and engagement Services

4 Consumer Receptivity and Engagement Greater in magazines than in any other medium With the exception of newspapers Magazines are: Primary source of information for consumers for a variety of products Capable of engaging the readers and retaining their attention Split runs Services Two or more versions of an ad are printed in alternate copies of a particular issue of a magazine Help determine which ad generates the most responses or inquiries Selective binding Allows creation of hundreds of copies of a magazine in one continuous sequence Computerized production process Enables magazines to address specific groups within their circulation base Ink-jet imaging Projects ink onto paper rather than using mechanical plates Enables personalization of an advertising message Disadvantages of Magazines Costs Limited reach and frequency Long lead time Clutter and competition

5 Magazine Circulation Primary circulation Number of copies distributed to the original subscribers or purchasers Determines magazine s rate structure Guaranteed circulation Publishers give advertisers a rebate if the number of delivered magazines falls below the guarantee Figures are set safely below the average actual delivered circulation Circulation Verification Alliance for Audited Media (AAM) Audits consumer magazines and farm publications Provides data and information critical to evaluating and purchasing media Audits digital replica editions of magazines Controlled-circulation basis: Sending copies individuals the publisher believes can influence a company s purchases Readership and Total Audience Pass-along readership: Occurs when: Primary subscriber gives a magazine to another person Publication is read in doctors waiting rooms, on airplanes, and so forth Total audience or readership: Calculated by multiplying the readers per copy by the circulation of an average issue

6 Audience Information and Research for Magazines SRDS - Provides complete planning information on domestic and international consumer, business, and health care publications Publication s own research studies Syndicated research studies Business Publication Audits - Provide the titles of people who receive a publication and the industry they work in Cost Elements Involved in Purchasing Magazine Advertising Space Variables to consider Magazine s circulation Size of the ad Position in the publication Particular editions chosen Special mechanical or production requirements Number and frequency of insertions Cost Elements Involved in Purchasing Magazine Advertising Space Positions available for ads First cover: Outside front of a magazine Second cover: Inside front of a magazine Third cover: Inside back of a magazine Fourth cover: Outside back of a magazine, sold at a higher rate than any other position Advertising space is sold on the basis of space units Full page, half page, and quarter page

7 Cost Elements Involved in Purchasing Magazine Advertising Space Advertisers save money through: Volume discounts - Based on the total space purchased within a contract year Magazine networks: Offer advertisers the opportunity to buy space in a group of publications as a package deal The Future for Magazines Publishers are focused on building: Stronger editorial platforms Better circulation management Cross-magazine and media deals Database marketing Technological advances Electronic delivery methods Native advertising: Integrates the advertising in online publications with the environment and editorial content Types of Newspapers Daily newspapers Found in cities and larger towns Provide detailed coverage of events, issues concerning the local area Classifications - Morning, evening, or Sunday publications Weekly newspapers Originate in small towns or suburbs Focus on news, sports, and events relevant to the local area Appeal primarily to local advertisers

8 Types of Newspapers National newspapers Have national circulation and editorial content with a nationwide appeal Appeal to: Large national advertisers Regional advertisers that use specific geographic editions of these publications Special-audience newspapers Offer specialized editorial content and are published for particular groups Newspaper supplements Included by papers in their Sunday editions Types of Newspaper Advertising Display advertising Uses visual devices in addition to the copy text Classified advertising Ads are arranged under subheads according to the product, service, or offering being advertised Special ads and inserts Government and financial reports Notices and public notices of changes in business and personal relationships Preprinted inserts: Printed by advertiser and taken to the newspaper to be inserted Advantages and Disadvantages of Newspapers Advantages Market penetration Flexibility Geographic selectivity Reader involvement and acceptance Services offered Disadvantages Poor reproduction Short life span Lack of selectivity Clutter

9 Categories of Newspaper Circulation Figures City zone Composed of the city where the paper is published and contiguous areas similar in character to the city Retail trading zone Market outside the city zone whose residents regularly trade with merchants within the city zone All other areas Covers all circulation not included in the city or retail trade zone Sources of Audience Information SRDS Studies conducted by the papers Commercial research services Provide information on: Standardized ad rates and circulation figures General requirements Contact information Lifestyles Media behavior Product/brand preferences General versus Local Rates for Newspaper Ad Space General advertising rates Apply to: Display advertisers outside the newspaper s designated market area (DMA) Any classification deemed by the publisher to be general in nature Rates are 75 percent higher than those paid by local advertisers Retail or local advertising rates Apply to advertisers that conduct business or sell goods or services within the DMA

10 Newspaper Rates Standard Advertising Units (SAUs) Use column widths 2-1/16 inches wide with: Tabloid-size papers five columns wide Standard or broadcast papers six columns Used for national advertising Column inch One inch deep by one column wide Rates are quoted per column inch Total space costs is calculated by multiplying the ad s number of column inches by the cost per inch Used for local advertising Rate Structures Flat rates Offer no discount for quantity or repeated space buys Open-rate structure Discounts are available based on frequency or bulk purchases of space Depend on the number of column inches purchased in a year Run of paper (ROP) Paper can place the ad on any page or in any position it desires Preferred position rate Allows advertisers to choose a specific section and/or position on a page Combination rates Advertisers get a discount for using several newspapers as a group Challenges Future for Newspapers Competition from other media Circulation Attracting and retaining readers Increased use of online delivery and multiple platforms