Advertising

Media Rates

• Section 17.2

A. MEDIA MEASUREMENT

• Audience – number of homes or people exposed to an ad
• Impression – a single exposure to an advertising message
• Frequency – the number of times an audience sees or hears an advertisement
• Cost per thousand (CPM) The media cost of exposing 1,000 readers or viewers to an advertising impression – comparison tool

B. MEDIA RATES

• Use a set format defined in terms of time or space
• Based on geographic location
• Standard Rate and Data Service – look up rates
• Audit Bureau of Circulations (ABC) – verify circulation rates

1. NEWSPAPER RATES

• Two types of advertising – classified ad or display ad
• Classified ads pay by the word or line
• Display ads – larger than classified ads and cost is based upon the amount of space used and the ad’s position in the newspaper
• Quote rates by the column inch

FACTORS THAT AFFECT NEWSPAPER RATES

• Day of week ad runs
• Where the ad appears in the paper
• Run-of-paper rates allows the newspaper to place the ad where ever they feel it would fit

• Guaranteed or preferred locations
• Color use in ad
• Frequency of the ad
• Open rates versus contract rates

COMPARING RATES

• Use CPM to compare ad rates
• Cost of the ad x 1,000/Ciculation = CPM
• $500 x 1,000/500,000 = $1 per 1,000 readers
• $600 x 1,000/300,000 = $2 per 1,000 readers
• Does ad reach target market?

2. MAGAZINE RATES

• Based on circulation, the type of readership and production techniques
• Bleed – half or full page ads are printed to the very edge of the page, leaving no white border – charge 15% – 20% more
• You use the CPM to compare costs

• Cheapest ad is black & white. Color is more expensive
• Premium position refers to ad placement
• Rate discounts – based on frequency or commission (% of sales given by the magazine to the ad agency for placing the ad for advertiser