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Media Budget Considerations and Evaluation of Media

Media Budget Considerations and Evaluation of Media. SBM 338 Lanny Wilke. Budget Considerations. Two ways to categorize advertising costs Absolute cost – actual total cost required to place the message

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Media Budget Considerations and Evaluation of Media

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  1. Media Budget Considerations and Evaluation of Media SBM 338 Lanny Wilke

  2. Budget Considerations • Two ways to categorize advertising costs • Absolute cost – actual total cost required to place the message • Relative cost – the relationship between the price paid for advertising time or space and the size of the audience delivered • Used to compare media vehicles

  3. Cost of ad space (absolute cost) CPM = Circulation X 1,000 • Determining relative cost of media • Cost per Thousand (CPM)

  4. Cost of commercial time CPRP = Program Rating Cost of ad space X 1,000 Circulation • Cost per ratings point (CPRP) Daily inch rate - newpapers

  5. Cost of 1 unit of time X 1,000 Program Rating • Television Most media buyers rely on target CPM (TCPM) – calculates CPM’s based on target audience, not overall audience.

  6. Magazines would like to use the number of readers per copy as their true circulation figures. • Includes a pass-along rate

  7. Evaluation and Follow-Up • Must consider two factors • How well did these strategies achieve the media objectives? • How well did this media plan contribute to attaining the overall marketing & communications objectives?

  8. Radio

  9. Magazines

  10. Newspapers

  11. Outdoor

  12. Direct mail

  13. Internet & Interactive Media

  14. Print Ads are next.

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