2. Agenda
Purpose: to review strengths & weaknesses of
traditional media
Broadcast and cable television
Radio
Magazines
Newspapers
Outdoor
Media Planning & Buying in the 21st Century
5. Television Overview
TV Penetration - 99%
68% Cable
17% ADS
1685 television stations
Network O&Os
Network affiliates
Independents
Cable Television
129 national & regional networks
10,000+ systems & interconnects
Reach Potential
90% watched “yesterday”
4.2 hours spent
6. Television
Advantages
99% watch, average 4+ hours/day
Broadcast and cable = thousands of programs
Broad or selective audiences
High potential impact
Intrusive
Multi sensory - Sight, sound, motion, emotion
Imagery
Geographic flexibility – from national to local
Disadvantages
Broadcast ratings declining
Cost
Clutter
Media Planning & Buying in the 21st Century
7. Cable Television
Advantages
Disadvantages
More cost efficient
Low ratings
than broadcast network
More original programming.
Targeted audiences
Reporting is inadequate
Over 100 channels to choose
Buy targeted local schedules
Local cable interconnects
and cable systems are high
cost (CPM)
11. Radio
Advantages
- Demographic targeting via different radio formats
- Build high frequency with select stations’ audiences
- Geographic & timing flexibility
- Lower CPMs and out of pocket cost than TV
- Reach impulse buyers in cars
- Stations’ on air talent, promotion & merchandising
- Low commercial production costs
Disadvantages
- Audience fragmentation with 10,000+ stations
- Many stations required to achieve high reach
- Background medium - lower attention levels
- Lack of visual communication
- Smaller geographic coverage area than TV
12. A magazine for every interest.
Media Planning & Buying in the 21st Century
22. Newspaper Overview
A few “national” Newspapers
USA Today, WSJ, NY Times, Washington Post, etc.
On line editions
Mostly Local
Morning - 787
Evening - 690
Sunday - 917
Weekly - 6704
140+ per DMA
Specialized Newspapers
Growth of Hispanic press
Decline in African American press
Proliferation of “Alternative” newspapers
23. Newspaper Overview
Newspaper Trends
Circulation continues decline, especially among younger to people
Nonetheless, 60% of adults “read a newspaper yesterday”
But rate differential has prevented growth in national advertising
What is the future-- as newspapers are no longer able to provide
“news” in a timely manner vs. TV, radio, internet???
Many types of availabilities
Run of Paper/section of paper
Free Standing Inserts
Sunday Supplements, comics, poly bags, classified
Newspaper Rate Cards
National Rates - for National Advertisers
Retail Rates - for Local Market Businesses
Display Advertising
Sold by column inch, e.g.,
4 column x 10 inch ad = 40 col. inches x rate/inch = Cost
24. Newspapers
Advantages
- Generally 60%+ market coverage
- Newspapers referred to for prices among people “in market”
- Sense of immediacy/“buy now”
- In market shoppers/save retail ads of interest
- Many availabilities - ROP, comics, supplements, inserts, poly bags
- Local market and zone edition flexibility
- Short closing dates
Disadvantages
Broad, older audience - not as selective as other media
- High out of pocket cost and CPM (eg, $5 million+ for fullpage on Sunday in top 100
markets
- National rate discrimination persists
- Variable production quality
25. Retail Role of Newspapers
Media Planning & Buying in the 21st Century
26. Direct Mail
Advantages
- Maximum ability to target customers/prospects
- Direct response
- Flexible message - to communicate whole story
- Highly suited to promotions & offers
- Right list & mailing package - high response rate
Disadvantages
- Cost, cost, cost - very high CPMs vs. traditional media
- Quality of mailing lists varies widely
- Many programs generate low response/lose money
- Mail clutter & consumer resistance
28. Outdoor
Advantages
- 96%+ reach potential
- High frequency opportunity
- Geographic targeting within DMAs
- Research: good for simple awareness
- Creative flexibility - bulletins, 30/8 sheet posters, transit
Disadvantages
- Limited communication opportunity/simple message
- Large investment necessary for “campaign”
- Availabilities more limited in upscale areas
29. Example of Media Selection Criteria
Internet
Audience
Mass
Selective
Frequency
Geo Flex
Cost
Hi Invest
Low CPM
Impact
Intrusive
Sensory
Information
TV
Radio
Mags
Newspaper
Outdoor
Mail
Editor's Notes
People still spend more time watching television than almost any form of human activity
Radio has always considered television as its major competitor for ad dollars. Here is an example of a radio promotion piece selling the benefits of radio advertising over TV– in this case lower costs and efficiency.
Over time the magazine industry has become more and more an industry of thousands of special interest magazines. Sports car magazines like Road & Track. Men’s Health, Weight Watchers. Architectural Digest. Entrepreneur.
Gone are the mass magazines of the past. In the 70s magazines like Life, Look, and the Saturday Evening Post were the leading magazines in the country. General interest, mass magazines. Now they are gone, replaced by special interest magazines, some small, some large
Special interest magazines specializing in beauty and high fashion
Replaced by magazines like AARP which has over 24 million circulation and over 35 monthly “readers” as measured by MRI
There are many thousands of trade publications who publish weekly to monthly publications for specialized business audiences. Horizontal trade publications generate audience by function, e.g., purchasing managers, in many different industries. Vertical trade publications are written for specific industries like the printing industry above.
