m

1. 8
Prof. (Dr.) Kao Kveng Hong, PhD, D.Litt
8-1
Chapter Eight
Traditional Media
Channels

2. Media?
• On the average, how much time per
week do you spend with the
following media?
• Television
• Radio
• Magazines
• Newspapers
• Outdoor (billboards, bus signs, etc.)
• In which media do you pay the most
attention to advertisements?
• What differences do you see
between your media habits and
those of your parents?
8

3. M&M’s
• Spanish Civil War – Spain
• United States – 1941
• Television advertising
• Print advertising
• Popularity of M&M characters
• September 11, 2001 package
• Charitable causes
• Special Olympics
• Susan G. Komen Breast Cancer
“Melts in your mouth, not in your hand.”
8

4. Chapter Overview
• Nature of media strategy
• Media planning
• Media buying
• Media choices
• B-to-B and international media
selection
Advertising Media
Selection
8

5. Media Strategy
Process of
analyzing and choosing media
for an
advertising and promotional
campaign.

6. • A favorite wake-up radio station or one that is listened to during
the commute to work.
• A favorite morning news show or newspaper.
• Trade or business journals that are examined while at work.
• A radio station that is played during office hours at work.
• Favorite computer sites that are accessed during work.
• Favorite magazines that are read during the evening hours.
• Favorite television shows that are watched during the evening
hours.
• Internet sites that are accessed during leisurely hours.
• Shopping, dining, and entertainment venues that are frequented.
F I G U R E 8 . 2
Examples of Times Workers Are Exposed to Advertisements

7. F I G U R E 8 . 3
Components of a Media Plan
• Marketing analysis
• Advertising analysis
• Media strategy
• Media schedule
• Justification and summary

8. People Involved in Media Selection
Media Buyer
Media Planner
Client
Account
Executive
Creative

9. Media Planning and Buying
at
Strawberry Frog Advertising Agency
Click to play clip from
Strawberry Frog: Inside
anAdvertisingAgency
VIDEO

10. Media Planning
• Focus on consumer behavior
• Create plans that reflect
purchase process
• Influence consumer in the
marketplace

11. Media Planner
Target
Market
Media
Audience
Characteristics
Media
Audience
Characteristics

12. Media
Planner
An advertisement by
New Balance placed
in Runner’s World
magazine by the
media planner.

13. Factors in Effective
Media Purchases
• Quality of media choices.
• Creativity in developing the media plan.
• Financial stewardship.
• Agency culture and track record.
• Good data analysis.
• Relationship between media buyer and
sales representatives.
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

14. Media Terms
• Spot ads
• Reach
• Frequency
• Opportunity to see (OTS)
• Gross rating points
• Cost per thousand (CPM)
• Cost per rating point (CPRP)R
• Ratings
• Continuity (continuous, pulsating, discontinuous)
• Gross impressions

15. Table 8.1
Magazine
Cost for 4-
color full
page ad
Total
readership
(000's)
CPM
Total
Target Market (20M)
Rating
(Reach)
Cost per Rating
Point (CPRP)
National Geographic $346,080 21,051 $16.44 16.1 $21,496
Newsweek $780,180 15,594 $50.03 12.2 $63,949
People $605,880 21,824 $27.76 9.4 $64,455
Southern Living $11,370 5,733 $1.98 2.4 $4,738
Sports Illustrated $965,940 13,583 $71.11 10.5 $91,994
Time $1,324,282 21,468 $61.69 15.9 $83,288
Travel & Leisure $183,216 2,205 $83.09 2.3 $79,659
U.S. News $100,740 8,929 $11.28 8.3 $12,137

16. Achieving Advertising Objectives
• Intrusion value
• Clutter
• Effective frequency and Effective reach
• Objective
• Increase brand recognition – visual important
• Increase brand recall – frequency important
• Size, placement, length of ad
• Number of media used
Three-Exposure Hypothesis

17. Achieving Advertising Objectives
Recency Theory
• Attention is selective and focused
• Impact dissipates over time
• Maximize exposure
• Run ads over longer period of time
• Place ads in multiple outlets
• Business-to-business

18. Media Selection
Percentage who indicated they were “very attentive” to
brand messages by various media
• TV, Radio, Newspapers, Magazines, Outdoor
• Sponsorship
• Alternative media
23%
18%
• Viral, guerrilla, etc.
Source: David Kaplan, “Study: Masses Still Tuned in to Mass Media,” Adweek, Vol. 44, No. 42
(October 27, 2003), p. 12.
• Word-of-mouth 63%
• Sampling 45%
• In-store 32%
• Mass media 27%
• Public relations 15%
• Online 10%
• Direct mail 7%

19. Television
Table 9.2
TA B L E 8 . 2
Television
Advantages
1. High reach
2. High frequency potential
3. Low cost per contact
4. Quality creative
opportunities
5. High intrusion value
6. Segmentation possibilities
through cable outlets
Disadvantages
1. Greater clutter
2. Channel surfing during
commercials
3. Short amount of copy
4. High cost per ad
5. Low recall due to clutter

20. Nielsen Ratings
Rating 
number of household turned to a program
totalnumber of households in a market
In the United States, the total number of households
with television sets is approximately 109.7 million. To
calculate the rating of an episode of American Idol, if
the number of households tuned to the season finale
was 17.8 million, then the rating would be:
Rating 
17,800,000
 16.2109,700,000
Next, if the advertiser were interested in the percentage
of households that actually were watching television at
that hour, the program’s share could be calculated. If 71
million of the 109.7 million households had a television
turned on during the hour in which American Idol aired,
the share would be:
Share 
number of households tuned to Survivor

17,800,000
 25
number of households with a television turned on 71,000,000

21. • American Idol
• Survivor
• CSI: Miami
• Everybody Loves Raymond
• Two and a Half Men
• Law and Order
$658,333
$412,833
$374,231
$315, 850
$249,017
$227,500
16.2
10.8
10.0
9.8
9.6
8.3
Sources: “Average Price of a 30-secondAd for Fall 2004,” The Futon Critic,
Http://www.thefutoncritic.com, March 29, 2005; “Nielsen Media Research Top 20,”
Http://tv.yahoo.com/nielsen, March 29, 2005.
TV Show
Cost
30 Second Ad
Nielsen
Rating
Cost of a 30-scond Ad and Nielsen Rating

22. Television Advertising
A locally produced
advertisement for Matt’s
Music Store.
Click here to play ad.

23. TA B L E 8 . 3
Radio
Advantages
1. Lower cost per spot than television
2. Low production cost
3. Music can match station’s programming
4. High segmentation potential
5. Flexibility in making new ads
6. Able to modify ads to fit local conditions
7. Intimacy (with DJs and radio
personalities)
8. Creative opportunities with music and
other sounds
9. Mobile: people carry radios everywhere
Disadvantages
1. Short exposure time
2. Low attention
3. Few chances to reach
national audience
4. Target duplication when
several stations use
same format

24. Radio Advertising
An advertisement by
Haik Humble Eye Center.
Click on speaker to play ad.

25. TA B L E 8 . 4
Outdoor
Advantages
1. Large, spectacular ads possible
2. Able to select geographic areas
3. Accessible for local ads
4. Low cost per impression
5. Broad reach
6. High frequency on major commute
routes
Disadvantages
1. Legal limitations
2. Short exposure time
3. Brief messages
4. Little segmentation
possible
5. Cluttered travel routes

26. $203.4
$128.6
$112.9
$111.6
$99.8
$99.8
$94.5
$94.5
$53.8
$0.0 $50.0 $100.0 $150.0
1st Quarter 2004 (Millions)
$200.0 $250.0
Local services, amusements
Public trans., hotels, resorts
Retail
Media and advertising
Restuarants
Financial
Auto dealers & services
Insurance and real estate
Beer and wine
Source: Deborah L. Vence, “Outdoor Ads Leverage New Technology,” Marketing News, Vol. 38, No. 15 (September 15, 2004), pp. 11-13.
F I G U R E 8 . 7
Expenditures on Outdoor Advertising

27. Dennis Carter discusses
how billboard advertising
was used to encourage
existing customers to
move to a newer Intel
product. Customers had
been reluctant to move
from their familiar 286
processor to the new 386
processor.
Click picture to play video.
Outdoor Advertising

28. This ad for a portable e-mail device is aimed at
busy travelers looking for convenience.
http://www.billboardinfo.com

29. http://www.jessicamcclintock.com

30. TA B L E 8 . 5
Magazines
Advantages
1. High market segmentation
2. Targeted audience interest by
magazine
3. High color quality
4. Long life
5. Direct response techniques
6. Read during leisure time
7. Longer attention to ads
Disadvantages
1. Long lead time for ads
2. Little flexibility
3. High cost
4. High level of clutter
5. Declining readership

31. TA B L E 8 . 6
Newspapers
Advantages
1. Priority for local ads
2. Coupons and special-response
features
3. High credibility
4. Strong audience interest
5. Longer copy/message possible
6. High flexibility
7. Cumulative volume discounts
Disadvantages
1. Major clutter
2. Short life span
3. Poor quality reproduction
4. Limited audience
5. Poor buying procedures

32. Media Mix - United States
Radio
3%
Internet
5.3%
Television
47.2%
Magazines
20.9%
Outdoor
2.2%
Newspapers
21.4%
Source: “100 Leading NationalAdvertisers,” AdvertisingAge (June 29, 2004), pp. 1-5.

33. TA B L E 8 . 7
Advertising Expenditures by Category
Source: Based on “100 Leading NationalAdvertisers,” AdvertisingAge, (June 25, 2007), p. 9.
Category Total Magazines Newspapers Outdoor Television Radio Internet
$19.79
Automotive 9 11.0% 25.4% 1.7% 50.4% 7.8% 3.7%
Retail $19.114 11.0% 35.4% 2.0% 33.8% 11.2% 6.6%
$10.95
Telecommunications 0 8.2% 19.8% 2.5% 48.7% 7.1% 13.6%
Financial services $8.689 13.7% 21.8% 2.8% 36.3% 8.3% 17.0%
Food, beverages,
candy
$7.225 27.6% 0.7% 1.1% 64.2% 4.5% 1.8%
Restaurants $5.291 2.5% 3.5% 4.5% 78.4% 10.1% 0.9%
Apparel $2.911 75.1% 2.0% 1.0% 19.8% 0.7% 1.3%

34. F I G U R E 8 . 6
Developing Logical Combinations of Media

35. Shift by B-to-B Advertisers to
Non-business Media
Fact: 56% of all business advertising dollars are
spent in non-business environments.
Reasons for shift:
• Business decision makers also consumers.
• Business decision makers difficult to reach at work.
• Clutter among business mediums.

36. Source: Based on Kate Maddox, “Top 100 B-to-BAdvertisers Increased Spending 3% in ‘06,” B to B, Vol.
92, No. 11 (September 10, 2007), pp. 25-30.
F I G U R E 8 . 9
Business-to-Business Advertising Expenditures
Business
publications,
26.0%
Newspapers,
18.0%
Consumer
magazines, 11.5%
Television, 25.4%
Outdoor, 3.0%
Radio, 6.7%
Internet, 9.6%

37. Media Selection
International Markets
• Media importance varies.
• Media viewing habits vary across countries.
• Media buying is different.
• Cultural mores vary.

38. Figure 8.8
Global Media Spending
F I G U R E 8 . 8
Media Usage in North America, Europe, and Japan
Source: Adapted from Colin MacLeod, “Global Adspend Trends,” International Journal of Advertising, Vol. 24, No. 2
(2005), pp. 261-262.
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
PercetofTotal
United States 10.3% 30.7% 3.1% 38.9% 12.4% 4.6%
Europe 17.0% 34.5% 6.1% 35.7% 5.8% 3.9%
Japan 9.4% 25.1% 11.6% 46.0% 4.2% 4.1%
Magazines Newspapers Outdoor Television Radio Internet