Chapter 8

Traditional Media Channels

LEARNING OBJECTIVES
Students should be able to answer the following questions:

1. What activities are involved in creating a media strategy?

2. How do the roles played by media planners and media buyers differ from others
in the marketing department?
3. What are reach, frequency, continuity, impressions, and CPM?
4. What are the advantages and disadvantages of various forms of traditional media
used in advertising?
5. Why is the mix of media a key part of an advertising campaign?

CHAPTER OVERVIEW
This chapter is devoted to explaining the nature of the advertising media selection. The topics
to be covered include:
• The media strategy
• Media planning processes and the roles of the media planner and buyer
• Advertising objectives
• Media choices based on the advantages and disadvantages of each medium
• Media selection in business-to-business and international settings

Development of an advertising campaign within the framework of an integrated marketing

communications program is the most important function an advertising agency can provide.
Advertising media selection is an important element in the success of any advertising
program.

Figure 8.1 displays all of the components of an IMC program and how traditional media, e-
active marketing, and alternative channels fit in the program.

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LEAD-IN VIGNETTE
M & M's: The Sweet Task of Media Selection

Using animated spokescandies, M & M's have been successfully advertised for many years.
Television, print, and Internet ads are used in conjunction with charity sponsorships and
evolving campaign themes.

Questions for Students:

1. Name another candy that you have seen advertised. Do the ads compare favorably
with M & M's?
2. Can you name another candy company that has sponsored charitable events?

CHAPTER OUTLINE
Media Strategy

A media strategy is the process of analyzing and choosing media for an advertising and
promotions campaign. The strategy must take into account several factors, which should have
been specified in a creative brief:

The average consumer spends little time on any advertisement. Simply finding the right places
to speak to potential customers is an increasingly challenging task.

Figure 8.2 lists times when workers are exposed to advertisements.

The first step is to prepare a thorough media-planning program that accounts for the general
advertising methods and objectives to be utilized.

Media Planning

Media planning begins with a careful analysis of the target market. Demographics such as age,
gender, income, and education are not enough to determine the media habits of a person in a
target market.

Figure 8.3 identifies the components of a media plan, which are:

• A marketing analysis to review the fundamental marketing program

• An advertising analysis to spell out fundamental advertising strategy
• A media strategy to state the media to be used and creative consideration
• Media scheduling notes the times ads will appear
• Justification and summary to state the measures and the rationale for media choices

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Media Planners

The primary job of the media planner is to formulate a program stating where and when to
place advertisements, working closely with creatives and account executives.

Another task for the media planner is to conduct research to match the product with the market
and media.

Part of the media planner’s research is devoted to gathering facts about various media, such as
the circulation rates and demographic groups reached by each medium.

Media Buyers

The media buyer purchases the space, while negotiating rates, times, and schedules for ads.

To ensure promotional dollars are spent wisely, it is best to involve the media planner and the
media buyer with the creative and the account executive in the design of an advertising
campaign.

There is little connection between the size of an advertising firm and the prices they can
negotiate.

Differences in effectiveness of advertising are often related to:

• Quality media choices (the right ones) made by each agency
• Creativity
• Financial stewardship (“bang” for your advertising buck)
• Agency culture and track record
• Computer systems to analyze data
• Relationships between the agency and the medium’s sales representative

The negotiated price is only one element in the success of an advertising program.

Advertising Objectives

Several concepts or technical terms used in the advertising world are important in developing
media objectives. Terms students need to understand include:

• Reach, which is the number of people, households, or businesses in a target

audience exposed to a media vehicle or message schedule at least one time during
a given time period (usually four weeks).

• Frequency, which is the average number of times an individual, household, or

business within a particular target market is exposed to a particular advertisement
within a specified time period (again, usually four weeks).

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 • Opportunity to see (OTS), which is the cumulative exposures achieved in a given
time period.

• Gross rating points (GRP), measure of the impact or intensity of a media plan.
GRPs are calculated by multiplying a vehicle’s rating by the frequency or number
of insertions of an advertisement.

• Cost is a measure of overall expenditures associated with an advertising program

or campaign. A second useful number that can be calculated to measure the costs
of a program is the cost per thousand (CPM) of the program.

The cost per thousand is calculated by using the following formula:

CPM = (cost of media buy / total audience) x 1,000

To calculate the Cost Per Rating Point (CPRP), the formula is:

CPRP = cost of media buy / vehicle’s rating

To calculate the weighted (or demographic) CPM, the formula is:

Weighted CPM = advertisement cost x 1,000 / actual audience reached

• Continuity is the exposure pattern or schedule used in the ad campaign. The three
types of patterns used are:
Continuous – a continuous campaign buys media time in a steady stream
throughout the year.

Pulsating – a firm advertises some throughout the whole year, but will
increase advertising in small, short bursts around special events, such as
holidays.

Flighting (discontinuous) – a flighting schedule places advertisements at

special intervals during the year, with no advertising between.

• Impressions, in which the number of gross impressions is the total exposures of

the audience to an advertisement. It does not take into consideration what
percentage of the total audience did or did not see an advertisement.

Achieving Advertising Objectives

The three-exposure hypothesis suggests that it takes a minimum of three exposures for an
advertisement to be effective. It has been followed by most media planners for quite a while.

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Seeking to discover the minimum number of exposures needed to be effective is based on two
concepts:
1. Effective frequency, which refers to the number of times a target audience must be
exposed to a message in order to achieve a particular objective.
2. Effective reach, which is the percentage of an audience that must be exposed to a
particular message to achieve a specific objective. Implied in the concept of
effective reach is that some minimum number of exposures exits.

Effective reach and frequency are affected by differences in:

• The interests, personalities, and exposures to the media outlets for individual
consumers
• The size and placement of ads
• The number of different media being used in a particular advertising campaign

Recency Theory

Recency theory suggests that a consumer’s attention is selective and is focused on his or her
individual needs and wants.

The traditional three-exposure hypothesis is based on the intrusion value of advertisements,

which is the ability of a media or advertisement to intrude upon a viewer without their
voluntary attention.

In contrast, recency theory states that consumers use selective attention processes as they
consider advertisements. Attention is given to messages that might meet a person’s needs or
wants. The closer, or more recent, an ad is to a purchase, the more powerful the ad will be.
When a consumer is contemplating a future purchase of the product being advertised, the
more likely it becomes the consumer will pay attention to and react favorably toward an ad.

Recency theory notes that advertising is a waste of money when ads reach individuals who are
not in the market for a particular product and for those who do not need the product. Another
difference in recency theory is the idea that one ad exposure is enough to affect an audience
when that person or business needs the product being promoted.

Figure 8.5 compares brand recognition to brand recall.

In the business-to-business arena, the application of the recency theory means ads should
appear in a number of outlets rather than running a series of ads in one trade journal.

Media Selection

Television

Table 8.2 summarizes the advantages and disadvantages of television advertising.

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Advantages:
• High reach
• High frequency potential
• Low cost per contact
• Quality creative opportunities
• High intrusion value
• Segmentation possibilities through cable

Disadvantages:
• Clutter
• Channel surfing during commercials
• Short amount of copy
• High cost per ad
• Low recall

Television has always been a popular medium for consumer products. Recently, however,
more business-to-business ads are appearing on television.

Television ratings are calculated as follows:

Rating = number of households turned to a program / total number of households in a

market

Television share is calculated as follows:

Share = number of households turned to a program / number of households with a

television turned on

Figure 8.6 displays costs of television advertisement 30 second spots in 2007.

Radio

The advantages and disadvantages of radio advertising are displayed in Table. 8.3.

Advantages:
• Lower cost per spot than television
• Low production costs
• Background music can match station format
• High segmentation
• Flexible
• Intimacy which means listeners can develop a closeness to the DJs and other radio
personalities
• Creative opportunities
• Mobile

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Disadvantages:
• Short exposure time
• Low attention
• Few national audiences
• Target duplication when several stations use the same format

Radio advertising is a low-cost option for a local firm. Radio remotes, where the station
broadcasts from a business location, have been popular methods of attracting attention.

For business-to-business advertisers, radio provides the opportunity to reach businesses during
working hours or while business people are in transit to or from work.

Outdoor Advertising

Table 8.4 summarizes the advantages and disadvantages of outdoor advertising.

Advantages:
• Large, spectacular ads possible
• Able to select key geographic areas
• Accessible for local ads
• Low cost per impression
• Broad reach
• High frequency on major commute routes
• Long life

Disadvantages:
• Short exposure time
• Brief messages
• Limited segmentation possible
• Cluttered travel routes

There are also some legal limitations to outdoor advertising.

Figure 8.7 lists the types of products that are advertised using outdoor and amounts of
expenditures.

Magazines

The advantages and disadvantages of magazines are summarized by Table 8.5.

Advantages:
• High market segmentation
• Target audience interest by magazine
• High color quality
• Special features available
• Long life

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 • Direct response techniques
• Read during leisure time

Disadvantages:
• Declining readership
• High level of clutter
• Long lead time
• Low flexibility
• High cost

Magazines have proliferated even as the problems of declining readership have occurred.

Although business-to-business marketers are increasingly using other mediums, trade journals
and business magazines still remain an effective method of reaching their target markets.

Newspapers

The advantages of disadvantages of newspaper advertising appear in Table 8.6.

Advantages:
• Geographic selectivity
• High flexibility
• High credibility
• Strong audience interest
• Longer copy/message possible
• Cumulative volume discounts
• Excellent location for coupons and special-response features

Disadvantages:
• Poor buying procedures
• Short life span
• Major clutter (especially near Christmas)
• Poor color quality
• Internet classified competition

Few young people read newspapers.

Most major city newspapers are now owned by chains such as Gannett.

For many smaller local firms, newspaper ads, billboards, and local radio programs are the only
viable advertising options.

A new threat to newspapers is the Internet. One strategy that newspapers can use to counter
the trend of classified advertisements moving to the Internet is to establish their own Internet
classified sites.

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Newspapers have not been a major medium for business-to-business marketers primarily
because of the local nature of newspapers.

Media Mix

Selecting the proper blend of media outlets for advertisements is a crucial activity as
campaigns are prepared. Media planners and media buyers are both excellent sources of
information on what type of mix is the most effective for a particular advertising campaign.
There are several possible linkages between various media.

Table 8.7 provides advertising expenditures and average media mix percentages by industries
or products.

Media Selection in Business-to-Business Markets

Currently, about 56% of all business advertising dollars are spent in non-business
environments. There are several reasons for this shift to more non-business media.
• Business decision makers are also consumers of goods and services, so the same
psychological techniques work
• Business decision makers are very difficult to reach at work, so companies try to
reach them elsewhere
• Clutter among the traditional business media has made it more difficult to get a
company noticed

Trade journals provide an opportunity to reach members of the buying center who may not be
able to be reached with sales people. Clutter, however, is a major problem in trade journals.
As a result, many companies, in addition to trade journals, also use business magazines such
as Business Week and consumer magazines. This approach is successful because many of the
goals in business-to-business advertisements are the same as those devoted to consumers.

International Implications

Understanding media viewing habits in international markets is important for successful

advertising programs. Media viewing is different, as is media buying in other countries.

Figure 8.11 summarizes media usage in the United States, Europe, and Japan.

In international settings, it is important to understand that the media habits of consumers vary
as well as their daily life styles.

In general, many of the tactics used to develop advertising campaigns in the United States
apply to international advertising. What differs is the nature of the target markets, consumer
media preferences, and the processes used to buy media.

Careful attention must be given to cultural mores to make sure that the buying process does
not offend the cultural and religious attitudes, which are prevalent in any given region.

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IMPLICATIONS FOR MEDIA PLANNERS, BUYERS, AND
ACCOUNT EXECUTIVES
(Note to professors -- these materials are not in the text. They provide a method for
you to summarize the chapter in a different way)

Start with the message theme, and finish with the message theme. The IMC approach works
best if every activity focuses on the one clear voice of the company.

Decide whether the client is large enough to have a separate media planner and media buyer,
or if the two positions should be combined. Remember, the driving criteria should be service
to the client, not cost savings.

Review the research conducted by the media planner. Make sure the plan is doing an effective
job of finding media to match the message, the company, its customers, and the goods or
services being advertised.

Review the work being performed by the media buyer. Make sure that purchases do indeed
reflect the best available rates for the client. Also make sure the times and schedules are
appropriate, and that they will lead to the best possible response.

Develop a strong, positive relationship with the media planner and media buyer, and between
those two individuals and the client. The planner and buyer will have a large impact on the
success of the campaign.

Consider hiring a research agency, as needed, to follow on up advertising campaigns in order

to be certain the company is effectively reaching its audience.

Review the goals of advertising with every client. Make sure they understand the differences
between:
• Reach (and effective reach)
• Frequency (and effective frequency)
• Opportunity to see (OTS)
• Continuity
• CPM, GRP, ratings, and CPRP
• Impressions
• Ratings
• Share
Review the advantages and disadvantages of each potential medium with clients. Avoid using
words like “always” and “never” when discussing options.

Talk carefully about the potential mixes of media. Note that the Internet is probably going to
be somehow connected to every advertising campaign, even if only to give the company’s
Web site address.

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Ask business customers to think about their intentions in reaching members of the buying
center. Remind them of the challenges associated with:
1. Straight rebuys
2. Modified rebuys
3. New task purchases

Consider the differences in the mix that will exist between business campaigns and consumer
campaigns. Make certain creatives are aware of the trade journals and other advertising outlets
that should be part of every business-to-business advertising campaign.

Think SMALL. Remind the creative, media planner, and media buyer of all of the small ways
a product can be advertised and a message can be reinforced. These include:
• Envelopes carrying the company’s current advertising message
• Give-away in contests where the company provides the prize in return for being
mentioned
• Merchandise which can be sold or given away carrying advertising, such as cups,
toys, carry out bags, receipts, ash trays, napkins, towels, packaging and other
containers, and every creative method possible to restate the firm’s name

Follow up. Find ways to keep score. Make sure you can give prospective clients clear and
convincing evidence that your firm knows how to effectively reach a company’s ongoing and
new customers.

REVIEW QUESTIONS
1. What is a media strategy? How is it related to the creative brief and overall IMC
program?

A media strategy is the process of analyzing and choosing media for an advertising
and promotions campaign. It is related to the Creative Brief and overall IMC program
because the media strategy follows the factors given by the Creative Brief and IMC
program.

2. What does a media planner do?

A media planner formulates a program stating where and when to place

advertisements. Also, the media planner conducts research to match the product with
the market and media. Part of the media planner’s research is devoted to gathering
facts about various media, such as the circulation rates and demographics groups
reached by each medium.

3. Describe the role of media buyer in an advertising program.

The role of a media buyer in an advertising program is to buy the space, negotiate
rates, times, and schedules for the ads. To ensure promotional dollars are spent wisely,

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 it is best to involve the media planner and the media buyer with the creative and the
account executive in the design of an advertising campaign.

4. What is reach? Give examples of reach in various advertising media.

Reach is the number of people, households, or businesses in a target audience exposed

to a media vehicle or message schedule at least one time during a given period.
Examples of reach in various media would include: how many people heard the radio
ad, read the newspaper, watched the ad on television, accessed a Web site, or saw a
billboard.

5. What is frequency? How can an advertiser increase frequency in a campaign?

Frequency is the average number of times an individual, household, or business within

a particular target market is exposed to a particular advertisement within a specified
time period (normally four weeks). An advertiser can increase frequency by increasing
the number of ads within a time period in a given market. For example: the same ad
several times during one TV program, several times in a magazine, or several times in
a radio show.

6. What are gross rating points? What do they measure?

Gross rating points (GRP) are a measure of the impact or intensity of a media plan.
They measure the chances the target audience actually viewed the ad. GRP are
calculated by multiplying a vehicle’s rating by the frequency or number of insertions
of an advertisement.

7. What is the difference between CPM and CPRP? What costs do they measure?

The difference between cost per thousand (CPM) and cost per rating point (CPRP) is
that CPM measures the dollar cost of reaching 1,000 members of the media vehicle’s
audience. CPRP is a relative measure of the efficiency of a media vehicle to a firm’s
target market. CPRP takes into consideration the rating of the media vehicle, not just
the cost of the media.

8. What is continuity?

Continuity is the exposure pattern or schedule used in the campaign. The three types
of patterns used are:
• Continuous—a continuous campaign buys media time in a steady stream.
• Pulsating—a firm advertises some throughout the whole year but will increase
advertising in small, short bursts around special events such as holidays.
• Flighting—the campaign schedule places advertisements at special intervals with
no advertising between.

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9. Describe the three-exposure hypothesis.

The three-exposure hypothesis is a basic rule stating that it takes a minimum of three
exposures for an advertisement to be effective.

10. How is recency theory different from the three-exposure hypothesis?

Recency theory is different because it suggests that a consumer’s attention is selective

and is focused on his or her individual needs and wants. This is different from three-
exposure hypothesis because consumers may not need three exposures for an ad to be
effective if they are interested in the product.

11. What is effective frequency? Effective reach?

Effective frequency is the number of times a target audience must be exposed to a

message in order to achieve a particular objective. Effective reach is the percentage of
an audience that must be exposed to a particular message to achieve a specific
objective. Implied in the concept of effective reach is that some minimum number of
exposures exits. Effective reach and frequency are affected by differences in:
• The interests, personalities, and exposures to the media outlets for individual
consumers
• The size and placement of ads
• The number of different media being used in a particular advertising campaign

12. What are the major advantages and disadvantages of television advertising?

Advantages include:
• High reach
• High frequency potential
• Low cost per contact
• Quality creative opportunities
• High intrusion value
• Segmentation possibilities through cable

Disadvantages include:
• Clutter
• Channel surfing during commercials
• Short amount of copy
• High cost per ad
• Low recall

13. What are the major advantages and disadvantages of radio advertising?

Advantages:
• Lower cost per spot than television
• Low production costs

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 • Background music can match station format
• High segmentation
• Flexible
• Intimacy which means listeners can develop a closeness to the DJs and other radio
personalities
• Creative opportunities
• Mobile

Disadvantages include:
• Short exposure time
• Low attention
• Few national audiences
• Target duplication when several stations use the same format
• Radio advertising is a low-cost option for a local firm

14. What are the major advantages and disadvantages of magazine advertising?

Advantages include:
• High market segmentation
• Target audience interest by magazine
• High color quality
• Special features available
• Long life
• Direct response techniques
• Read during leisure time

Disadvantages include:
• Long lead time to ad appearance
• Low flexibility
• High cost
• Higher clutter
• Declining readership

15. What are the major advantages and disadvantages of newspaper advertising?

Advantages include:
• Priority for local ads
• Good for coupons and special-response features
• High credibility
• Strong audience interest
• Longer copy/message possible
• Flexibility
• Cumulative volume discounts

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 Disadvantages include:

• Major clutter (especially near Christmas)

• Short life span
• Poor color quality
• Poor buying procedures

Also there is limited audience (few under 25 years old).

16. Is the strong intrusion value of television an advantage? Why or why not?

The intrusion value of television is an advantage because by being able to prepare ads
with catchy tunes, sexy content, or motion it can grab consumers’ attention. These
consumers may not have paid attention to the ad otherwise, but the intrusion value
may cause them to become interested in a product.

17. Name a product and three media that would mix well together to advertise that
product. Defend your media mix choices.

Student answers will vary.

18. What special challenges are present in media selection for businesses? What
roles do gatekeepers play in creating those challenges?

Special challenges that face media selection for businesses are that business-to-
business ads often have a difficult time getting noticed, gatekeepers hinder the
information flow to decision makers, and clutter is growing in business
advertisements. Gatekeepers are a hindrance in the flow because of voice mail,
secretaries, and other intermediaries that may keep the decision maker from being
reached.

19. What special challenges are present in media selection for international
advertising campaigns? What differences and similarities exist with U.S. media
selection processes?

Special challenges that are present in media selection for international advertising
campaigns include television is not the dominant media in every country; cable TV,
and satellites are growing; smaller subregions impact media preferences; and media
buying behaviors are different. Also an awareness of the culture of the company must
be in place to advertise in the correct manner.

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CRITICAL THINKING EXERCISES
Discussion Questions

1. To be effective, multiple media should be chosen and integrated carefully.

Individuals who are exposed to advertisements on combinations of channels
selected from television, radio, the Internet, and billboards will be more inclined
to process the information than if only a solitary medium is used. Fill in the
following chart. Put your probability of being exposed to an advertisement from
each medium into the appropriate column. The percentages across each row
should add up to 100%.

This is an application exercise and student answers will vary widely.

2. Billboard advertising in Times Square is so popular that space has already been
sold for ten years. Coca-Cola, General Motors, Samsung, Prudential, NBC,
Budweiser, and the New York Times are paying rates in excess of $100,000 per
month to hold these spaces. Inter City is building a 50-story hotel at Broadway
and 47th Street. The building will accommodate 75,000 square feet of
advertising. Even before the completion of the hotel or tower, companies
including Federal Express, Apple Computers, AT&T, HBO, Levi Strauss,
Morgan Stanley, and the Unites States Postal Service purchased space. Why
would companies pay so much for outdoor advertising? What are the
advantages and disadvantages of purchasing billboards at Times Square?

Student discussions should note that companies pay these fees for the same reasons
companies pay millions to advertise during the Super Bowl: many consumers will be
reached at the same time. Additionally, the advertisement will be viewed many times
by the same viewers (people who work in the area) and by new people all the time
(tourists). The disadvantages include the cost and the lack of control over who views
the ads. Many will not be interested in the company’s products. Also, there is great
competition, so all of the ads are very dramatic, making the impact of one single ad
lower.

3. Repetition and a short, catchy name are the keys for an effective radio spot.
Sports equipment retailer Fogdog.com has been very successful with its radio
spots. The URL is easy to remember and is reinforced with the sound of a
howling dog. People don’t have to fumble with finding a pencil to write it down.
After a few repetitions, they remember it. Another Web company, Sandbox.com,
which is a fantasy sports game site, is looking to develop a radio and billboard
campaign. Prepare a radio and a billboard advertisement that will catch people’s
attention and be easy to remember. What are the advantages of combining a
radio campaign with billboards?

This is a discussion question and student answers will vary. One of the advantages of
combining a radio campaign with billboards is that their frequency will increase. A

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 consumer might hear the ad on the radio, then later see the billboard advertisement.
Also, many sports are broadcast on the radio, and billboards are used to advertise
teams and radio stations, so consumers expect the connection. Every time consumers
are exposed to a message, it becomes more likely they will remember the company
and its products.

4. Xerox offers a color printer that sells for $1,200 which they want to market to
businesses. What media mix would you suggest for a $20 million advertising
campaign? Justify your answer.

Student discussions should suggest that Xerox use a media mix that reach the most
viable consumers. Trade journals and business magazines that other businesses read
are obvious outlets. The company could also focus on major newspapers such as The
Wall Street Journal, Washington Post, or the New York Times, which have viewers
that would purchase the product. To complete the mix, television ads may attract a
wider clientele.

INTEGRATED LEARNING EXERCISES

1. Pick either the table of cosmetics companies or the table of clothing
companies listed below. Access each firm’s Web site. Indicate how many
advertisements you have seen in each of the media listed within the last
month. Then discuss each company’s media plan. Does the company project
an integrated message? What target market does the Web site attract? Does
the Web site convey the same message broadcast in the other media?

Cosmetics Companies
Company (Web address) TV Radio Newspaper Magazine Outdoor Internet
Estee Lauder
www.esteelauder.com)
Maybelline
(www.maybelline.com)
Sephora
(www.sephora.com)
Clinique
(www.clinique.com)
Revlon (www.revlon.com)

Clothing Companies
Polo
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 (www.polojeansco.com)
Pepe (www.pepejeans.com)
Squeeze (www.sqz.com)
Guess (www.guess.com)
Lee (www.leejeans.com)
Wrangler
(www.wrangler.com)

Student answers will vary by the sites they choose.

2. The table below provides the population of the top 10 Demographic

Marketing Areas (DMAs). The target market for a particular company is
yuppie boomers, or those 35 to 54 years old who are professionals or
managers. Based on the percentage of adults in each DMA that fits the target
market profile, calculate the size of the target market in each DMA.
Washington has been completed for you. If you had funds to advertise in only
five of the 10 DMAs, which five would you choose? Why?

Number in
DMA Population DMA Percent Target Market
Washington 3,965,200 18.4% 729,600
San Francisco- 4,824,600 14.2
Oakland
Boston 4,495,600 13.6
Dallas–Ft. Worth 3,669,900 13.3
Houston 3,251,100 13.1
New York 14,432,500 12.0
Chicago 6,483,800 11.7
Philadelphia 5,655,800 11.6
Los Angeles 11,391,200 11.3

3. A major supplier of media research information is Nielsen Media Research.

Access its Web site at www.nielsenmedia.com. Go to the “About Us” section and
then access the information available. Read “What TV ratings really mean” and
summarize what TV ratings mean. From “Ratings 101” determine how ratings
are calculated. What other types of services does Nielsen Media offer?

Ratings are calculated by dividing the number of televisions tuned to a specific

program by total television households. Nielsen also calculates reach and frequency
statistics. In addition, these statistics are provided for various ethnic groups.

4. In Canada, a valuable source of information is BBM Bureau of Measurement.

Access this Web site at www.bbm.ca. What type of information is available on
the site? How can it be used to develop a media plan for Canada?

The site, which is in both English and French, focuses on audience research. The

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 services are very similar to the Nielsen ratings. They include use of people meters,
diaries, and a return-to-sample service.

5. Achieving advertising media objectives normally requires a blending of the

various media within the advertising plan. Access Benchmark Communications
at www.bmcommunications.com and examine the information that is provided
in the site, especially about the traditional media of newspapers, radio, and
television. What types of services does Benchmark Communications provide?
How can Benchmark Communications assist in the development of a media
plan?

Benchmark offers a media buying service, business development and advertising

programs, Internet marketing, website creation and design, and integration. The
primary types of companies served by Benchmark include retail, travel, service,
broadcasting and manufacturing in both Canada and the United States.

6. Two Web sites that are important for radio advertising are the Radio
Advertising Bureau at www.rab.com and the top 100 radio sites at
www.100topradiosites.com. Access both sites. What information is available in
each site? Discuss how the information can be used to develop an advertising
plan using radio.

Rab.com is for radio advertisers. The site offers articles on a wide variety of
broadcasting topics, plus special insights for radio advertisers. The
100topradiosites.com site offers access to the top 100 radio stations. It is also a venue
for musicians to reach audiences.

7. A major company for outdoor advertising is Lamar Advertising Company.

Access its Web site at www.lamar.com. Access the outdoor component of the
company and locate the rates for your area. What type of outdoor advertising
is available? Access the transit component of their company. What services
does Lamar offer?

Local rates will vary by the area in which the student lives. The company offers a
wide variety of standstill and moving billboards. Lamar also offers graphics
programs and a real estate program which even includes antennas on billboards.

8. One of the best sources of information for business-to-business advertisers is

Advertising Age’s Net B2B Web site at www.netb2b.com. What type of
information is available at this Web site? How can it be used? What benefits
would a business-to-business advertiser derive from the Web site?

The departments include: news, advertising, business media, direct and database,
vertical insight, net marketing, and opinions. The site provides articles and insights
about various B2B marketing programs.

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Student Project: Creative Corner
The project assigns students to take a $10,000 gift from a donor and create an advertising
program for a College of Business for university, focusing on traditional media selection.

CASES
Case 1 Mainstreaming Head Shaving

(1) Discuss the concept of reach and frequency as they would apply to advertising
The Headblade.

Reach is the number of people, households, or businesses in a target audience that are
exposed to a media vehicle or message schedule at least once during a given time
period. Reach would not be terribly important for The Headblade, since so many
households would not contain a head shaver.

(2) Would the three-exposure hypothesis or recency theory best explain the
purchase of The HeadBlade?

A case can be made for either. Three exposures might build brand awareness enough
to entice a shaver to give the product a try. Someone just deciding to shave, or
someone looking for a better way to shave may only need one exposure, since interest
in finding something would be heightened.

(3) Which traditional media are best suited to advertising The Headblade? Which
do not fit?

A case can be made for any medium. Radio may be the least likely, since it
contains no visual element.

(4) Design a national and an international advertising program for The HeadBlade,
identifying target markets and methods to reach them.

Student answers will vary.

Case 2 Opryland America

(1) Which media should Mark use in advertising Opryland America? Defend your
choices.

Student answers will vary. Television is harder due to the number of new choices,
however, the Travel Channel may be one option. Newspaper inserts could be used and
include discount coupons. An Internet site would help, especially with a tie-in to bed
and breakfast type places. Travel magazines are also a choice, depending on budget

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 and cost.

(2) What should be the primary message sent out in Opryland's advertising?

The show would somehow need to be differentiated from Branson-type shows.

(3) Besides advertising, what else should Opryland do to bring back business and
find new customers?

Coupons, discounts, public relations events, and tie-ins with local attractions all
should be considered.

Bonus Case
Creating a Photo Op

Manuel Ortega was placed in charge of an advertising campaign for a new 35 mm camera.

His company was going to compete directly with Nikon and Yashica. As the account

manager, Manuel was given a $12 million budget for the first phase of the campaign,

which was to run for 3 months.

The objective of the campaign is to explain the firm’s version of disk technology.

Images recorded on computer disks rather than film are sharper and easier to use. The

complexity in conveying the details of the new technology and the benefits to consumers

makes the campaign more difficult. Manuel consulted carefully with his media planner,

media buyer, and creative after receiving the contract from the company. They agreed to

use magazine ads to be followed up with television spots.

Part of their reasoning for choosing magazines was the profile of the target market for

this particular type of camera. The company’s research indicated that the target buyer is

between 18 and 44 years of age, has completed at least 2 years of college, and has a

family income in excess of $30,000. These individuals read magazines at home and

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subscribe to most of the magazines they read. Manuel knew that individuals who

subscribe to a magazine pay more attention to advertisements than do those who purchase

the same magazine from a store. The other major characteristic of this group is that they

have purchased a 35 mm camera in the past. The company believed those who had not

purchased a 35 mm camera in the past were unlikely to buy into this new technology.

The company believed that 20 million individuals in the United States fit the target

market profile for the 35 mm camera, and 3.22 million of those individuals read National

Geographic. Manuel explained to the company’s leaders that by dividing the percentage

of the total target market by those who read National Geographic, the yield is 16.1

percent. In other words, 16.1 percent of the target market for this camera reads National

Geographic and would be exposed to an advertisement placed in the magazine. As shown

in Table 8.9, the percent sign is dropped and the reach for National Geographic is listed

simply as 16.1. In the advertising industry, this number is the rating for that particular

vehicle and can be obtained from commercial sources.

Table 8.9 indicates that National Geographic and Time magazines have the largest

ratings. Travel & Leisure and Southern Living have the smallest ratings. Two things

explain the difference in ratings: (1) the size of the circulation of the various magazines

and (2) the percentage of readers who fit the target audience. For example, the total

circulation for National Geographic is 21,051,000 readers, compared to only 2,205,000

for Travel & Leisure. Not all readers of National Geographic fit the target profile for this

35 mm camera. In fact, only 15.3 percent of National Geographic’s readers fit this profile

compared to 20.8 percent of Travel & Leisure’s readership. (Manuel calculated these

percentages by multiplying the rating times 20, then dividing by the readership of the

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magazine in millions.)

TABLE

Creating a Photo Op Case Study

Cost for 4- Target Market (20 M)

Color Total

Full-Page Readership CPM Rating Cost per Rating

Magazine Ad (000s) Total (Reach) 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 & World 100,740 8,929 11.28 8.3 12,137

Report

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 The advertising team decided that two primary factors would determine the reach of

the campaign. First was the number and diversity of media being used. A media plan

using the eight magazines would have a greater reach than a media plan using only five

magazines. Notice that the total reach for the eight magazines is 77.1. Thus, 77.1 percent

of the target market for this 35 mm camera would be exposed at least once during the next

4-week time period to an advertisement. In addition to the quantity, the diversity of media

will have an impact. Magazines that are different from each other tend to overlap less

than magazines that are not different. Advertising only in sports magazines, for example,

would overlap considerably because the same individuals probably read the various sports

magazines. Reach measures the unduplicated percentage of a firm’s target market

exposed to an advertisement. Ads in media with nearly identical target markets do not

reach as many people as advertising in vehicles with different target markets.

(1) Use the information provided in the case the Table to develop the magazine
media selection plan for the print advertising campaign for Manuel Ortega.

Each magazine must have at least one advertisement insertion but no more than
eight insertions.

Use Table 9.10 to calculate the gross rating points for the magazine campaign
and the total cost. As noted in the case, Manuel has a $12 million budget to work
with. To illustrate how to calculate the gross rating points and total cost, the first
magazine, National Geographic, has already been completed. The goal is to
maximize the gross rating points although staying within the constraints of the
$12 million budget. (Those who are familiar with linear programming can solve
this problem using a linear program to maximize the gross rating points. It can
also be solved using a spreadsheet and what-if analysis.)

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 Table Solution

Magazine Cost Rating Insertions GRPs Total Cost

National Geographic 346,080 16.1 8 128.8 2,768,640
Newsweek 780,180 12.2 2 24.4 1,560,360
People 605,880 9.4 7 65.8 4,241,160
Southern Living 11,370 2.4 8 19.2 90,960
Sports Illustrated 965,940 10.5 1 10.5 965,940
Time 1,324,282 15.9 1 15.9 1,324,282
Travel & Leisure 183,216 2.3 1 2.3 183,216
U.S. News 100,740 8.3 8 66.4 805,920
Total 333.3 11,940,478

Students may have to use linear programming to obtain the optimal answer.

(2) Justify the solution, especially in terms of frequencies chosen.

The solution provided, is solved by linear programming, which was set to maximize
the GRP’s within the constraints given.

(3) Is television a logical medium for the next phase of the campaign? Why or why
not? If television would not be the best for the next phase, which medium would
be best?

This is a discussion question. Most students will probably say television would be a
logical next step in the media plan because it reaches more consumers than just the
magazines by themselves. Using these media would create greater frequency as well a
higher reach.

(4) If the client wanted to have a fully integrated communications media package,
what package of media would be most likely to succeed? Explain the choices.

Student answers will vary, but certainly magazines, television, and the Internet make
sense. All have the capability to be highly creative and allow for providing details
about the camera, which is important to persuading the target audience about the
advantages of the digital camera versus the traditional camera.

(5) For a long-term project, investigate similar costs for television and radio
advertising in the local area. Construct a budget and develop a media-buying
plan for each medium.

Student answers will vary depending on cost of advertising in your area. Students
should be encouraged to develop a table similar to the one in the case and use linear
programming to obtain the optimal solution.

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