Media Rates and

Measurements

Selection of Media

• Reach vs. cost• Ability to illustrate product• Ability to present adequate selling

message• Flexibility for last-minute changes• Ability to use with special promotions• Image of business/desired image• Coverage of targeted area

Lesson Objectives

• Identify media measurement techniques• Explain techniques used to evaluate

media• Calculate media costs• Explain promotional budget methods

Media Terms• Audience

– Number of homes or people exposed to an ad

• Circulation– Number of print media produced for sale and for

subscriptions

• Impression frequency– Number of times an audience sees, hears or reads an

ad

• Cost per thousand (CPM)– Media cost of exposing 1000 readers or viewers to an

ad impression– Comparison tool to determine cost effectiveness

Newspaper Rates

• Classified Ads– Grouped into categories– Paid by word or line

• Display Ads– More creative– Generally larger– Paid by “column inch”

• one column wide by one inch deep• Inches X columns X $ per column inch

Example #1• Cost is

$25.00 per column inch

• Ad size is 4” long and 3 columns wide

4”

Answer

Other Factors Affecting Newspaper Ad Rates

• Day of week• Run-of-paper rate vs. guaranteed

or preferred rate• Color vs. black and white

Other Factors Affecting Newspaper Ad Rates

• Frequency (more = less)–Open (non-contract) rate–Contract rate - guarantees space

purchased• Circulation – size of audience

Cost per thousand (CPM)

• Cost of exposing 1000 readers to an ad

• Measurement that allows advertisers to compare costs

Formula:

Cost of ad X 1000

Circulation

Example #2:• Cost of ad = $1200• Circulation = 222,000• What is the CPM?

Example #3: Calculate CPM

Constitution• Cost = $500• Circulation = 700,000

Tribune• Cost = $400• Circulation = 300,000

All other things being equal, which newspaper would you choose?

Tribune

Constitution

Media Rates and

Measurements

Selection of Media

• Reach vs. cost• Ability to illustrate product• Ability to present adequate selling

message• Flexibility for last-minute changes• Ability to use with special promotions• Image of business/desired image• Coverage of targeted area

Media Terms• Audience

– Number of homes or people exposed to an ad

• Circulation– Number of print media produced for sale and for

subscriptions

• Impression frequency– Number of times an audience sees, hears or reads an

ad (used most often in online media)

• Cost per thousand (CPM)– Media cost of exposing 1000 readers or viewers to an

ad impression– Comparison tool to determine cost effectiveness

Media Rates and

Measurements

Magazine RatesKey Terms

• Bleed – ads printed to the edge of page–No white border–15-20% extra for bleeds

• Color rates – if any color added–Cost increases as color added–Four-color – aka “Full-color ads”

• Premium position – where ad placed

Key Terms (con’t)

• Frequency discounts–Similar to contract rates for newspapers–More frequency, less cost per issue

• Commission–Percentage of sales given by magazine to

advertising agency for placing the ad for the advertiser

–Generally, 15% of ad cost

Example #4:

• Four-color rate = $23,300• Bleed = 15%• What is the ad cost?

Example #5:

• Four-color ad with bleed = $26,795• Commission = 15%

Radio Advertising• Network Radio Advertising

– Broadcast from studio to all affiliated stations– Allows reach to several markets at once

• National Spot Radio Advertising– Used by national companies– Allows local station-by-station ad to reach

specific markets• Local Radio Advertising

– Used by local businesses– Limited to specific geographic area

Key Terms in Radio• Spot radio – refers to geographic

area• Spot commercial – refers to length of

message: one minute or less– Can be carried on network or spot radio

• Rates based on time of day– a.m. and afternoon more expensive

• Run-of-schedule rates – radio station decides when the ad will

run – Less costly

Television Rates

• Rates vary with time of day–Prime-time 7-11 p.m. most costly

–Class AA time

Media Rates and

Measurements