19_2 Media Measurement and Rates

Media Measurements & RatesBusinesses need to reach as

many targeted customers as possible. It is important to calculate costs and measure media effectiveness to reach a potential audience.

Media Measurement

Audience The number of homes or people exposed to an advertisement

Impression A single exposure to an advertising message

Frequency The number of times an audience sees or hears an advertisement

Cost per thousand (CPM) the media cost of exposing 1,000 readers or viewers to an advertising impression

Media Measurements (cont.)Print media = total number of readers

per issue (circulation vs. audience)Broadcast Media

TV = Nielsen Media Research (Feb., May, July, Nov.)

Top 10 for TVRadio= Arbitron Company

II. Media RatesStandard Rate & Data Service –

private company which publishes rate cards for most major media

Audit Bureau of Circulations (ABC) – verifies circulation numbers for businesses

A. Newspaper RatesClassified – pay by the word & grouped together into

specific categoriesDisplay – cost is based on location in paper and space.

quotes are determined by one column inch1. Factors That Affect Rates

run-of-paper rates or preferred locationscoloropen rate/noncontract rateyearly frequency contract vs. bulk space contract

2. Comparing RatesCost of the ad X 1,000/Circulation = CPM

B. Magazine Ratescirculationtype of readershipproduction techniques

15-20% more for bleedspremium position

1. Rate Discounts

C. Online RatesBannerRich-media enhanced bannerButtonInterstitial – show a webpage

prior to the desired page

D. Radio RatesNational, Network, LocalR-O-S Run of Schedule

E. Television RatesPrime Time

7-10 p.m.Day

9-4 p.m.Late Fringe

10:35-1 a.m.Overnight

1-5 a.m.

III. Promotional Budget Methods 1. Percentage of Sales 2. All you can Afford3. Following the Competition 4. Objective & Task