Flashcards
Advertising Test 2
Cards in this deck (33)
- 1CPM(Cost per thousand readers)
CPM = Cost of space x 1,000 / circulation
Weighted CPM = Cost of space x 1,000 / circulation in your target market - 2GRP (Gross Rating Points)Percentage of total target market.
Used to calculate cost effectiveness of your mix of print placement
$ per GRP = total cost of print space / GRP delivered by print - 3AQH(Average QTR-hour persons)- Estimated no. of people listening to a radio station for at least 5 minutes of 15 minutes period.
AQH rating (size) = (AQH persons of station / area population) x 100
AQH share (popularity) = (AQH persons of station / AQH persons of all stations) X 100 - 4Limitations of televisionCost
Clutter - 5Rating point systemRating point = program audience/total TV households (percentage)
Gross Rating Point (GRP) = rating x insertions = reach x frequency
Provides a common base that proportionately accommodates markets of all sizes
Cost per point (CPP) = Cost of commercial / GRPs - 6ClearencePercentage of network affiliates that carry a particular network program
(A program must have 70% clearance to be considered national) - 7CompensationPayment of clearance fees by a television network to local stations for carrying its shows
- 8Three factors that determine buying decisionsDemographics
CPMs
Deman - 9Spot TVPurchasing a time from a local station, in contrast to purchasing from a network
- 10Three levels of signal coverage1) Total survey area
2) Designated market area (DMA)
3) Metro rating area - 11Preemtion rateStation can sell a spot to a different advertiser for a higher price
- 12Success of cable can be attributed to two things:Brand identification based on unique and selective networks
Investment by cable networks in first-run programming - 13Nielsen Ratings three areas of concernSweeps weeks
Diaries
Exposure value - 14Qualitative ratingsQ reports determine popularity
Q = Fav % / Fam %
TVQ and Permformer Q - 15Advantages of radioRadio reaches 12+more than 2.6 hours per day
Radio advertising influences consumers closest to the time of purchase
Reaches light users of other media
Works well with other media - 16Limitations of RadioAudience fragmentations
Clutter
Lack of a visual element
Increased use of MP3 players - 17The Audit Bureau of CirculationsThe organization sponsored by publishers, agencies, and advertisers for securing accurate circulation statements
Reports the following:
Total paid circulation
Amount of circulation in city zone, retail trading zone, and all other zones
The number of papers sold at newsstands
Prevents circulation fraud - 18Magazine costs1. Marketing Costs
increase in the cost of gaining and maintaining readers
about 60% of mag revenue comes from advertising
2. Postage and Distribution Costs
increasing
resulted in greater reliance on subscription sales and a continuing upward cost spiral for publishers
3. Concentration of Advertisers
mags get disproportionate percentage of their advertising revenues from a very few product categories
12 categories = 87% of all mag advertising
4. Increased in discounting
growth in the amount magazines charge advertisers has slowed with the slowing of the economy - 19Cross-media buySeveral media or vehicles that are packaged to be sold to advertisers to gain a synergistic communication effect and efficiencies in purchasing time or space
- 20Fast-closing advertisingsome magazines offer short-notice advertising deadlines, sometimes at a premium cost
way to overcome the competitive disadvantage of long closing dates - 21partial-runwhen magazines offer less than their entire circulation to advertisers. Partial runs include demographic, geographic, and split-run editions
- 22Ad editions1. Geographic editions allow advertisers to offer products only in areas where they’re sold
2. Partial runs can localize ad and support dealers or special offers from one region to another
3. Split-run allows advertisers to test various elements of a campaign in a realistic environment
4. regional editions allow national advertisers to develop closer ties with their retailers by listing regional outlets - 23Selective bindingbinding together different material directed to various reader segments in a single issue of a magazine
- 24Make-goodswhen a medium falls short of some audience guarantee, advertisers are provided concessions in the form of make-goods
ex: future commercials to make up for shortfall in ratings - 25Run of scheduleAdvertisers can get lower rates by letting the station air the ad whenever
- 26Designated market area (DMA)Areas that receive hella ratings
- 27Metro rating areastandard metro area served by a station
- 28Magazine DatesThree sets of dates to be aware of in planning and buying magazine space:
1. Cover date- date appearing on the cover
2. On-sale date- date on which the magazine is issued
3. Closing date- date when the print of plates needed to print the ad must be in the publisher’s hands in order to make a particular issue - 29Magazine networksgroups of magazines that can be purchased
- 30Categories of mag networks1. Single Publisher Networks
network offered by a single publisher that owns several magazines and will allow advertisers to buy all or any number of these publications as a group
to a degree, being replaced by cross-media buying
2. Independent Networks
made up of different publishers that market magazines with similar audience appeals - 31In magazine industry, there are 2 distinct methods of determining audiences1. Paid Circulation
2. The Rate Base - 32rate basethe circulation level on which advertising rates are based
- 33Advertising research contributes to all four stages of the advertising process:Advertising strategy development
Advertising execution development
Evaluating pretesting executions
Campaign evaluation
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- Flashcards on Advertising Test 2, created by bleakc on 20/10/2014.
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- bleakc
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