11-1 copyright 2012 mcgraw-hill australia pty ltd powerpoint slides t/a advertising and promotion...

11-1Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell

Chapter 11

Media choices: evaluating media options

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Learning objectives

1. To examine the structure of specific media industries including broadcast, print, out-of-home and cinema and the role of each media channel in the IMC program.

2. To consider the advantages and limitations of each media channel.

3. To explain how audiences are measured and how rates are determined.

4. To consider future trends and how they will influence the use of media channels in IMC programs.


Print

Branded entertainment

Newspapers

TV

Media choices

Audience measurement

Product placement

and computer games

Digital impact

Radio

Out-of-home

Media buying

BroadcastPromotional

products

Future trends

Advantages and imitations

Social media

Cinema

Magazines


Media engagement


Share of advertising expenditure by main media: Australia

% share


Share of advertising expenditure by main media: New Zealand

Source: Advertising Standards, New Zealand, 2011

29.3

28.4

10.2

% share


Print


Newspapers

TV

Media choices


Product placement

and computer games

Digital impact

Radio

Out-of-home

Media buying


products

Future trends


Social media

Cinema

Magazines


Television penetration and reach

90% of TV households own VCR90% of TV households own VCR

68% of TVs are digital68% of TVs are digital

Approx 13.5 million people watch TV on any given dayApprox 13.5 million people watch TV on any given day

The average Australian watches approx 3 hours of TV per dayThe average Australian watches approx 3 hours of TV per day


Television advantages

Selectivity and flexibilitySelectivity and flexibility

Captivity and attentionCaptivity and attention

Coverage and cost effectivenessCoverage and cost effectiveness

Creativity and impactCreativity and impact

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Television disadvantages

Lowselectivity

Lowselectivity

FleetingmessageFleetingmessage CostCost

ClutterClutter

DistrustDistrustNegativeevaluationNegative

evaluation

Negativefactors

Negativefactors

LimitedattentionLimited

attention

ZippingZipping

ZappingZapping


Top 10 network TV advertisers:Australia 2009


Top 10 TV advertisers, New Zealand 2009

Company/ Brand TV Spend ($millions)

Reckitt Benckiser NZ 37.16

Unilever Australasia 32.54

BrandWorld 26.36

NZ Lotteries Commission 23.79Harvey Norman 23.58L'Oreal 22.18The Warehouse 20.48

Progressive Enterprises 19.43NZ Transport Agency 19.09Telecom Corp Of NZ 18.67Mitre 10 NZ 18.16

Source: Nielsen Media Research, New Zealand, AIS Data, 2009


Foxtel advertising


Television formats: Australia

Public broadcastersPublic broadcasters

TV formats

TV formats

Metropolitan: (FTA)Metropolitan: (FTA)

Regional: (FTA)Regional: (FTA)

Subscription: (STV)Subscription: (STV)

Community TVCommunity TV

Digital transmissionDigital transmission


Television formats: New Zealand

Public broadcaster (TVNZ)Public broadcaster (TVNZ)

Pay televisionPay television

Private networksPrivate networks

Regional and niche broadcasters

Regional and niche broadcasters

Maori TVMaori TV

TV formats

TV formats

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Buying TV advertising time

National: Spots purchased across major networks

National: Spots purchased across major networks

Local: Commercials shown on local stations

Local: Commercials shown on local stations

Sponsor entire programSponsor entire program

Spot announcements between programs

Spot announcements between programs

Spot buying

Spot buying

Sponsor-ship

Sponsor-ship


TV dayparts

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Subscription TV: national report


Measuring the TV audience: key measures

HH (or PPL) tuned to show

HH (or PPL) using TVShare =

Share of audience

HH (or PPL) tuned to show

Total HH (or PPL)Rating =

Program rating


Measuring the TV audience: key measures (cont.)

Target audience ratings points (TARPs)

TARP =

Number of PPL in a target audience reached by a media buy

Potential target audience for media buy

x 100


The future of TV: new delivery modes

Personal video recorders enable recording and storing of TV programs for subsequent viewing

Personal video recorders enable recording and storing of TV programs for subsequent viewing

PVRs/VODPVRs/VOD

Superior viewing experience and increased variety of promotional opportunities and audience engagement

Superior viewing experience and increased variety of promotional opportunities and audience engagement

DigitalDigital

Continued growth of subscription TVContinued growth of subscription TVSubscriptionSubscription

Interactive TV allows audiences to interact with program in real time via phone or internet connections

Interactive TV allows audiences to interact with program in real time via phone or internet connections

InfomercialsInfomercials


Radio penetration and reach

261 Australian radio stations (110 AM + 151 FM)

261 Australian radio stations (110 AM + 151 FM)

37 million radios in use37 million radios in use

89% of households have 3+ radios, and 99 % of cars have a radio

89% of households have 3+ radios, and 99 % of cars have a radio

Radio reaches 61% of all Australians each day and 77% every weekRadio reaches 61% of all Australians each day and 77% every week

Commercial breakfast radio attracts audiences of over 6.6 million p.w.

Commercial breakfast radio attracts audiences of over 6.6 million p.w.


Radio advertising


Advantages and limitations of radio

Audience fragmentationAudience fragmentation

Limited research dataLimited research data

Creative limitationsCreative limitations

Chaotic buyingChaotic buying

Limited listener attentionLimited listener attention

Cost and efficiencyCost and efficiency

SelectivitySelectivity

FlexibilityFlexibility

Mental imageryMental imagery

Integrated marketing opportunities

Integrated marketing opportunities ClutterClutter

AdvantagesAdvantages DisadvantagesDisadvantages


Commercial Radio Australia


Radio survey: Sydney 2010


Radio survey: Melbourne 2010


Buying radio time

Three national networks(Austereo, Australian Radio Network and

DMG)

Three national networks(Austereo, Australian Radio Network and

DMG)

Over 217 regional networksOver 217 regional networks

The majority of radio advertisers are local

The majority of radio advertisers are local

Network radio

Network radio

Local radio

Local radio


Radio dayparts


Print


Newspapers

TV

Media choices


Product placement

and computer games

Digital impact

Radio

Out-of-home

Media buying


products

Future trends


Social media

Cinema

Magazines


Magazines: penetration and reach

230 million+ magazines are purchased annually (13 mags for every person aged 14+).

230 million+ magazines are purchased annually (13 mags for every person aged 14+).

8 in 10 people read 1+ magazines (84% of females & 76% of males).8 in 10 people read 1+ magazines (84% of females & 76% of males).

Combined reach of the top 5 magazines is 53% of all females aged 14+.

Combined reach of the top 5 magazines is 53% of all females aged 14+.

Growth in digital magazine advertising expected as consumers adopt tablets.Growth in digital magazine advertising expected as consumers adopt tablets.

Source: Magazine Publishers Association of Australia


Classifications of magazines

By audienceBy audience

• Consumer magazines

• Business magazines

• Custom magazines

• Consumer magazines

• Business magazines

• Custom magazines

By delivery By delivery

• Newspaper inserted magazines

• Street press

• Newspaper inserted magazines

• Street press


Business magazines


Custom magazines


Advantages and disadvantages of magazines

Limited reachLimited reach

Long lead timeLong lead time

CostsCosts

Limited frequencyLimited frequency

ClutterClutter

SelectivitySelectivity

Reproduction qualityReproduction quality

Creative flexibilityCreative flexibility

PermanencePermanence

PrestigePrestige

Receptivity & involvementReceptivity & involvement

ServicesServices



High reach consumer magazines: Australia 2010Rank, Magazine Title Circulation Readership (000s)1 Australian Women’s Weekly 486,179 2,2082 Woman’s Day 385,016 2,0123 Better Homes & Gardens 384,512 1,9384 New Idea 316,527 1,4845 Reader’s Digest 266,173 7786 That’s Life 261,311 1,1027 Superfood Ideas 255,256 1,0248 Take 5 217,281 8439 TV Week 187,822 85410 Cosmopolitan 150,346 54411 Masterchef Magazine 150,000 86812 Delicious 134,242 53613 Who 131,229 63914 Woolworths Good Taste 127,528 68515 Recipes+ 126,007 43316 Australian Geographic 120,835 40517 Family Circle 120,532 *18 NW 116,260 32719 Cleo 110,081 41120 Australian House & Garden 108,098 660

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High reach consumer magazines: New Zealand 2010Rank Magazine Title

(ranked on circulation)Circulation Readership

(000s)

1 AA Directions 542,242 9012 SKYWATCH 535,591 1,0403 TV Guide 147,956 659

4 New Zealand Woman's Day 105,127 814

5 New Zealand Woman's Weekly 80,439 834

6 Australian Women's Weekly (NZ edn) 80,032 656

7 Reader's Digest (NZ) 67,986 4048 New Zealand Listener 63,930 2699 Cuisine 54,882 40710 New Idea 50,563 462

11 Healthy Food Guide 50,182 35512 NZ House & Garden 48,752 56113 New Zealand Gardener 48,699 34414 Next 46,489 37015 Foodtown Magazine 45,754 33916 That's Life! 39,004 29717 Simply You 35,118 11318 Your Home and Garden 34,163 30719 Mindfood 31,551 15320 Taste 28,613 215


Creative flexibility with magazines


Receptivity and involvement


Magazine circulation and readership

PrimarycirculationPrimary

circulation

Pass-alongreadership

Pass-alongreadership

ReadershipReadership

Circulationaudit

Circulationaudit

CirculationCirculation

ControlledcirculationControlledcirculation


Purchasing magazine advertising space

Inserts, gatefolds, tip-ons, cover mounts, etc.Inserts, gatefolds, tip-ons, cover mounts, etc.

Spot colour (black plus one other colour)Spot colour (black plus one other colour)

Mono (black ink on stock paper)Mono (black ink on stock paper)

Four colourFour colour

Contract ratesContract rates

Casual insertionCasual insertion

Magazine networksMagazine networks

Size Size

ColourColour

Purchase frequency &

volume

Purchase frequency &

volume

Inserts & otherInserts & other

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Full page (PF)Full page (PF)

Half page, quarter pageHalf page, quarter page


The future of magazines

Database marketingDatabase marketing

Advances in technologyAdvances in technology

Cross-magazine and media dealsCross-magazine and media deals

Circulation managementCirculation management

Stronger editorial platformsStronger editorial platforms

Declining ad revenuesDeclining ad revenues

Online delivery methodsOnline delivery methods

Magazinetrends


Magazines and technology


Newspapers: penetration and reach

Australians spent approx $1.3 billion buying newspapers in 2010Australians spent approx $1.3 billion buying newspapers in 2010

In Melbourne, the two daily papers enjoy a reach 72% p.w. In Sydney, the two dailies reach 61% p.w.

In Melbourne, the two daily papers enjoy a reach 72% p.w. In Sydney, the two dailies reach 61% p.w.

One million Australians have downloaded newspaper branded apps.

One million Australians have downloaded newspaper branded apps.

Growth in digital newspaper advertising expected as consumers adopt tablets.Growth in digital newspaper advertising expected as consumers adopt tablets.

Source: Newspaper Publishers Association of Australia


Newspaper types

BroadsheetBroadsheet

TabloidTabloid

SizeSize

General news, business/ financeGeneral news, business/ finance

Specialist: e.g. agriculturalSpecialist: e.g. agriculturalAudienceAudience

WeeklyWeeklyPublication frequency

Publication frequency

DailyDaily

RegionalRegional

NationalNational

CommunityCommunity

CoverageCoverage

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Newspaper advertising

Run of paper (ROP)Run of paper (ROP)

Page advertisingPage advertising

Preferred positionsPreferred positions

Contract ratesContract rates

By negotiationBy negotiationInserts, tip-ons,

etc.Inserts, tip-ons,

etc.

Size and position

Size and position Column centimetre (SCC)Column centimetre (SCC)

Combination ratesCombination rates

Casual ratesCasual rates

VolumeVolume


Unique newspaper features

Extensive penetrationExtensive penetration

FlexibilityFlexibility

Reader involvement and acceptanceReader involvement and acceptance

Geographic selectivityGeographic selectivity


Flexibility


Creative placement


The future for newspapers

Attracting and retaining readersAttracting and

retaining readers

Competition from other media

Competition from other media CirculationCirculation

Digital news & fee for service

Digital news & fee for service

Challenges for newspaper publishers

Challenges for newspaper publishers


Print


Newspapers

TV

Media choices


Product placement

and computer games

Digital impact

Radio

Out-of-home

Media buying


products

Future trends


Social media

Cinema

Magazines


Support media

Out-of-home media

Out-of-home media

Promotional products


CinemaCinema



Product placementProduct

placement

Point-of-purchase Point-of-

purchase

Support & alternative media

Support & alternative media


OOH: penetration and reach

Research findings suggest that OOH results in sustained and persistent brand awareness

Research findings suggest that OOH results in sustained and persistent brand awareness

Out-of-home advertising is growing at 19% per annumOut-of-home advertising is growing at 19% per annum

Outdoor provides a continuous 24/7 presence.Outdoor provides a continuous 24/7 presence.

OOH, when used to complement TV, results in 30% improvement in recall of TV advertisingOOH, when used to complement TV, results in 30% improvement in recall of TV advertising

Source: Outdoor Media Association of Australia


Out-of-home media


Out-of-home (cont.)


Cinema: penetration and reach

In an average month, 29% of Australians will attend the cinema. In an average month, 29% of Australians will attend the cinema.

People aged 14-17 years have the highest cinema participation rates (46%).

People aged 14-17 years have the highest cinema participation rates (46%).

Australia has 1,994 cinema screens plus 452 digital screens with a collective seating capacity of 453,000 seats.Australia has 1,994 cinema screens plus 452 digital screens with a collective seating capacity of 453,000 seats.

Source: Screen Australia


Advantages and disadvantages of cinema

IrritationIrritation

CostsCostsExposureExposure

RecallRecall

MoodMood

Lack of clutterLack of clutter

Cost efficiencyCost efficiency

ProximityProximity

SegmentationSegmentation



Advantages and disadvantages of branded entertainment

Time of exposureTime of exposure

High absolute costs High absolute costs ExposureExposure

FrequencyFrequency

Support for other mediaSupport for other media

Source associationSource association

Cost efficiencyCost efficiency

RecallRecall

Bypassing regulationsBypassing regulations


AcceptanceAcceptance

TargetingTargeting

Limited appealLimited appeal

Lack of controlLack of control

Public reactionsPublic reactions

Competition and clutterCompetition and clutter

Negative placementsNegative placements


Summary and conclusions

Advertisers must select the optimal way to reach and involve audiences from a very wide array of media and channels.

To evaluate different media, advertisers consider a range of quantitative and qualitative aspects including:

reach frequency cost efficiency media environment geographic and demographic selectivity media engagement and involvement.

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