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Chapter 14

Advertising

Section 14.2

MediaMeasurement 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 Measurement

Media Rates

Key Term

media

planning

advertising

agency

the process of selecting advertising

media and deciding the time and

space in which the ads should appear

a business that specializes in

developing ads and ad campaigns for

its clients

Key Term

ad

campaign

audience

a series of ad messages that share a

single idea and theme

the number of homes or people

exposed to an ad

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Key Term

impression

frequency

a single exposure to an advertising

message

the number of times an audience

sees or hears an ad

Key Term

cost per

thousand

(CPM)

prime

time

the media cost of exposing 1,000

readers or viewers to an advertising

impression

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 planningthe 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

Hiring an advertising

agency can be an

effective way to

develop ads.

advertising agencya business that specializes in developing ads and ad campaigns for its clients

Advertising Agencies

An advertising agency

can help a business

develop an ad

campaign.

ad campaigna series of ad messages that share a single idea and theme

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Media Measurement

Media planners are concerned with the correct

medium to use, its costs, and its effectiveness.

Media Measurement

Media planners want

their ads to reach the

correct audience.

audiencethe number of people exposed to an ad

Media Measurement

Two media

measurements are

impression and

frequency.

impressiona single exposure to an advertising message

frequencythe number of times an audience sees or hears an ad

Media Measurement

Cost per thousand

(CPM) is related to the

number of people that

read or see an ad.

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

The “M” in CPM comes from the word mille, which

is Latin for “thousand.”

Media Audiences

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.

Media Rates

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.

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Graphic Organizer

Factors AffectingMedia Rates

The size of an ad

The number of people an ad reaches

How often anad appears

When an adappears

Where anad is placed

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.

Circulation is the number of people who buy a

publication, and audience, the number of

readers per issue.

Print Media Ad Rates

Magazine and newspaper ads are sold by the

inch on a page.

Graphic Organizer

Rate for a column inch is $17

You want an ad that measures four inches long by three columns wide

A column inch is one column wide by one inch deep

$17 X 4 inches X 3 Columns = $204

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.

Print Media Ad Rates

Magazine rates are based on:

Circulation

The type of readership

Production techniques

Position (prime positions are more costly)

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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

Broadcast Media Ad Rates

For TV, prime time is

between 7 PM and

11 PM.

For radio, prime time

is the morning or

afternoon hours

(drive time).

prime timethe 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, impression, 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.

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Chapter 14

Advertising

Section 14.2

MediaMeasurement and Rates

End of