Media Measurement. and Rates. Chapter 14 Advertising. Section Read to Learn List the components of media measurement.
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1 Chapter 14 Advertising Section 14.2 Media Measurement and Rates Read to Learn List the components of media measurement. Identify how advertising costs are measured. Describe how media rates are determined. The Main Idea Businesses need to reach as many targeted customers as possible. Many companies do this by advertising. It is important to calculate ad costs and measure media effectiveness to best reach a potential audience. Key Concepts Media Planning Media Rates Key Term Key Term media planning the process of selecting advertising media and deciding the time and space in which the ads should appear ad campaign a series of ad messages that share a single idea and theme advertising agency a business that specializes in developing ads and ad campaigns for its clients audience the number of homes or people exposed to an ad 1
2 Key Term a single exposure to an advertising message Key Term cost per thousand (CPM) the media cost of exposing 1,000 readers or viewers to an advertising frequency the number of times an audience sees or hears an ad prime time the time period when the network TV or radio audience is the largest Media Planning Media planning can help a business project the desired image to the target market. media planning the process of selecting advertising media and deciding the time and space in which ads should appear Graphic Organizer Media Planning Questions 1. Can the medium present the product or service and the appropriate business image? 2. Can the desired customers be targeted with the medium? 3. Will the medium get the desired response rate? Advertising Agencies Advertising Agencies Hiring an advertising agency can be an effective way to develop ads. advertising agency a business that specializes in developing ads and ad campaigns for its clients An advertising agency can help a business develop an ad campaign. ad campaign a series of ad messages that share a single idea and theme 2
3 Media planners are concerned with the correct medium to use, its costs, and its effectiveness. Media planners want their ads to reach the correct audience. audience the number of people exposed to an ad Two media measurements are and frequency. a single exposure to an advertising message frequency the number of times an audience sees or hears an ad Cost per thousand (CPM) is related to the number of people that read or see an ad. The M in CPM comes from the word mille, which is Latin for thousand. cost per thousand (CPM) the media cost of exposing 1,000 readers or viewers to an advertising Media Audiences Media Rates TV audience measurement is based on diaries and viewer data collected by Nielsen Media Research Inc. Arbitron Inc. uses listener diaries to measure radio audiences in more than 260 markets. Advertising uses a set formula that is defined in terms of time or space. A media rate or advertising rate is the amount of money it costs to display or broadcast an ad. 3
4 Graphic Organizer Where an ad is placed When an ad appears The size of an ad Factors Affecting Media Rates How often an ad appears The number of people an ad reaches Ad Campaigns That Fail Taco Bell used to run ads featuring a Chihuahua that said You quiero Taco Bell ( I want Taco Bell ). The commercials were so popular that the dog s image was put on T-shirts, window decals, and toys. After a while, the company determined that the ads did not lead to more sales. Print Media Ad Rates Ad rates for newspapers and magazines are based on circulation. Print Media Ad Rates Magazine and newspaper ads are sold by the inch on a page. Circulation is the number of people who buy a publication, and audience, the number of readers per issue. Graphic Organizer Print Media Ad Rates If a newspaper quotes a column inch rate, multiply the number of inches by the number of columns. Then multiply the total column inches by the rate. A column inch is one column wide by one inch deep Rate for a column inch is $17 You want an ad that measures four inches long by three columns wide $17 X 4 inches X 3 Columns = $204 Magazine rates are based on: Circulation The type of readership Production techniques Position (prime positions are more costly) 4
5 Broadcast Media Ad Rates Broadcast Media Ad Rates Broadcast media ad rates depend on: The size of the audience The reach of the station The time of the day For TV, prime time is between 7 PM and 11 PM. For radio, prime time is the morning or afternoon hours (drive time). prime time the time period when the network TV or radio audience is the largest Internet Ad Rates The cost of Internet advertising is based on: Type Size Ad Volume of monthly page views 1. What are the three basic questions advertisers must address in media planning? Can the medium present the product or service and the appropriate business image? Can the desired customers be targeted? Will the medium get the desired response rate? 2. Name the four components of media measurement. audience,, frequency, and cost per thousand (CPM) 3. Define media rate or advertising rate. The amount of money it costs to display or broadcast an ad. 5
6 End of Chapter 14 Advertising Section 14.2 Media Measurement and Rates 6
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