Dr. H. Ronald Moser Cumberland University

1. Kleppner’s Advertising Procedure Dr. H. Ronald Moser Cumberland University

2. Chapter 11 Using Magazines Kleppner’s Advertising Procedure, 18e Lane * King * Reichart

3. Learning Objectives – 1 • Describe the history and development of the American magazine. • Discuss the usefulness of magazines in national media plans. • List the characteristics of consumer and trade publications. • Explain how magazine space is sold to advertisers.

4. Learning Objectives – 2 • Describe the role of magazines as a targeted advertising medium. • Explain how magazine audiences are measured. • List the characteristics of business publications. • Describe the role of the agri-business press.

5. Pros of Magazines • In the United States, above all, the range and number of specialized magazines offer advertisers opportunities to reach reader with narrowly defined targeted audiences. • Magazines provide strong visuals to enhance brand awareness. • Regional and demographic editions enhance targeting. • Magazines are portable and have a high pass-along rate. • By providing wed versions, magazine can increase loyalty among readers. • Effective use of graphics and other visuals by magazines enhances brand awareness. • By offering regional and/or demographic editions, a magazine provides even greater targeting, and opportunities for less-than-national advertisers. Only in Middle Tennessee

6. Cons of Magazines • Magazine growth has not kept up with increases in ad rates. • Because the growth in audiences for magazines generally hasn’t kept pace with increase in advertising rates, magazines are among the most expensive on a per prospect basis. • Ads may account for as much as 50% of magazine content. • Long deadlines limit immediacy of message. • A single vehicle cannot stand alone.

7. Advertising and Consumer Magazines • In 2008 approximately 20.1 percent of U.S. measured advertising dollars was spent in all forms of magazines including consumer, business, Sunday, and local (see Exhibit 11.1). • Magazines enjoy a unique position in advertising media for all the following reasons. • Have a long life. • Are Portable. • Are passed along to other readers. • Can be viewed as reference materials, kept, and reviewed. United States

8. Exhibit 11.1. Top Magazine Advertisers – Advertising and Consumer Magazines

9. Advertising and Consumer Magazines – Selectivity • Challenges that consumer magazines are encountering include all of the following. • Rising Cost of paper. • Greater delivery expenses. • Greater marketing expense. • Need to discount subscriptions. • To have any hope for success in introducing a new magazine, you must introduce one with narrow editorial interest and audience segments. • Magazines are searching for the right editorial formula in a market that is increasingly fragmented (see Exhibit 11.2).

10. Exhibit 11.2. – Advertising and Consumer Magazines – Selectivity • Magazines can allow advertisers to reach a distinctive niche. • Because of large number of specialized magazines, it is difficult for an advertiser to find a single magazine that reaches a majority of the market segment.

11. Advertising and Consumer Magazines – Cost Concerns • The following are cost concerns for magazines: Marketing Cost – About 60 percent of magazine revenue comes from advertising. Postage and Distribution Costs – Since 1995, the U.S. (USPS) has imposed several rate increases on magazine publishers. Concentration of Advertisers – Twelve categories account for 87 percent of all magazine advertising (Exhibit 11.3). Increases in Discounting – Growth in the amount magazines charge advertisers has slowed with the slowing of the economy.

12. Advertising and Consumer Magazines –Cross – Media Buys • A Cross-Media Buy –Refers to packaging of several media or vehicles to be sold to advertisers in order to gain a synergistic communication effect and efficiencies in purchasing time or space. • The following are appealing feature of Cross-Medial Buys for national advertisers: • Provides extended reach. • Complementary nature of TV and magazines to reach segments of the general public. • Provides welcomed variety in advertising themes. • Allows for creative executions.

13. Magazines as a National Advertising Medium – Advantages of Magazine Advertising • Depending on the product and advertising objectives, magazines may offer a number of advantages as primary or secondary media vehicles. • Effectiveness. • Audience selectivity. • Long life and creative options. • Availability of demographic and geographic editions. • Qualitative factors.

14. Magazines as a National Advertising Medium – Advantages of Magazine Advertising • Effectiveness– Readers do these things after exposure to magazine ads: • Consider purchasing advertised product. • Gather more information about product. • Visit advertiser’s website. • Purchase product. • Visit store, dealer, or other location. • Save ad for future reference. • Recommend product to a friend.

15. Magazines as a National Advertising Medium – Advantages of Magazine Advertising • Audience Selectivity – Assuming that magazines can accomplish the required communication task, the next question is whether they can reach a specific targeted market. It is here where magazines excel. • Long Life and Creative Options – Here a magazine characteristic is demonstrated when magazine readers indicate they save their copies and refer to them later, or they often read magazines in a doctor’s office.

16. Magazines as a National Advertising Medium – Advantages of Magazine Advertising • Availability of Demographic and Geographic Editions – On a national scale, magazine demographic and geographic editions meet the same demands of large advertisers. • Is the most common and oldest partial-run edition. • Qualitative Factors and Engagement – Advertisers are interested in the demographics of the audience, but they are also interested in how audience members think of themselves when they read a particular publication. • The Playboy man and the Cosmopolitan woman are as much a matter of readers’ perception as a reality. Moser Not Sure about this ad!

17. Magazines as a National Advertising medium – Disadvantages of Magazine Advertising • Despite the many advantages that magazines offer advertisers, there are some important considerations for advertisers contemplating buying magazine ads: • High cost. • Magazines are the most expensive medium on a CPM basis. • Long closing dates. • A magazine ad may run 8-10 weeks after an advertiser submits it. • Fast-close advertising allows advertisers to submit closer to publication dates.

18. Features of Magazine Advertising – Partial-Run Magazine Editions • Let’s examine some specific features and techniques involved in buying advertising in magazines. • Partial-Run Editions. • Split-Run Editions. • Selective Binding. • City Magazines.

19. Advantages: Products advertised only in areas where sold. Localization possible. Enhances relationship between national advertisers and retailers. Disadvantages: CPM levels are usually much higher than full-run. Close dates are earlier. Newsstand distribution may be limited. Restrictions on options. Features of Magazine Advertising – Pros and Cons of Partial-Run Editions • The following are advantages and disadvantages of Partial-Run Editions:

20. Features of Magazine Advertising – Split-Run Editions • Split-Run Editions – A special form of the partial-run edition is the Split-Run. Whereas most partial-run editions are intended to meet special marketing requirements of advertisers, Split-Run editions normally are used by both advertisers and publishers for testing purposes. • In Split-Run Editions, advertisers can test the effectiveness of the headline or illustration of an advertisement. • Selective Binding – Refers to different editorial material or large advertising sections that are placed in less than the full run of a publication.

21. Features of Magazine Advertising – City Magazines • Magazines directed to readers with in a particular city are not a new idea. Listed below are some characterizes of City Magazines: • Upscale readership. • Good vehicles for retail and automobile advertising. • Hybrid of small-circulation specialty publications and partial-run editions.

22. Features of Magazine Advertising – Custom Publishing • Custom Publishing – Another growing and specialized area of magazine publishing is Custom Publishing. • It is one of the fastest-growing sectors of the magazine business and consists of advertiser- produced publications intended to reach prospects or current customers in a communication environment totally controlled by the marketer. • Listed below are characteristics of Custom Publishing: • Advertisements produced so they control communication environment. • Even mainline magazine publishers produce them. • Uses market research to find the best way to talk to buyers of their products. • Its value in and IMC program. Survey Room

23. Magazine Elements – Decisions to Make • After advertisers choose the magazines that best serve their marketing goals, then they decide on the cost of space for the advertising. Space in magazines is generally sold in terms of full pages and fractions thereof (half pages, quarter pages, three columns, or one column; see Exhibit 11.10). • The following are other characteristics that should be considered: • What size ad should be used? Does not increase readership proportionately. • Where in the magazine should the ad be placed? The type of style and font size cannot significantly increase readership. • What colors (and how many) should be used? • What format will enhance readership and recall?

24. Exhibit 11.10. Magazine Elements – Ways of Using Magazine Space • EXHIBIT 11.10. Various Ways of Using Magazine Space.

25. Exhibit 11.11. Magazine Elements – Readership of Advertising by Type • Advertisers constantly are trying to determine the optimum combination of color, size, and placement that will achieve the highest readership (see Exhibit 11.11).

26. Magazine Elements – Decisions to Make • Bleed Pages – Magazine advertising is able to use a number of formats and designs unavailable or impractical in other media. • A common technique is Bleed advertising in which the advertisement runs all the way to the edge of the page with a border. • Bleed advertisements are used to gain attention and use all the available space. • Without a border, the advertisement does not have the appearance of being confined to a particular space (see Exhibit 11.12). • Typically, bleed advertising will be seen by 10 to 15 percent more readers than nonbleed advertising.

27. Exhibit 11.12. Two-Page Spread Bleed Advertisement

28. Magazine Elements – Decisions to Make • Multiple-Page Units and Inserts – Multiple-page advertising covers a broad spectrum of insertions. The most common form of multipage advertising is a facing, two-page spread. • The following are reasons for advertisers to use multiple-page inserts and spreads: • Need to show their product in the most favorable light (see Exhibit 11.13). • Need to show their service in the most favorable light. • Need to have their product appear in a bigger-than-life way. • Need to tell an in-dept story about brand features.

29. Exhibit 11.13. Magazines and Production Flexibility • EXHIBIT 11.13. This one-and-a-third page ad takes advantage of the production flexibility of magazines to handle ads in a variety of sizes.

30. How Space is Sold – Advertising Rates, Negotiation and Merchandising • After magazine advertising began to experience a downtown in revenues in the 1980s, negotiation for special rates became the common practice among magazines. • Magazine merchandising might include all of the following: • Brand extensions like the Good Housekeeping Seal. • Delivery of product samples to new mothers in hospitals. • Trade Shows. • Conferences.

31. How Space is Sold – Magazine and The Internet • The following are characteristics of an online magazine: • May or may not be advertiser supported. • Designed to be a value-added feature for advertisers. • Extends the audience reach of the core magazine to online readers. • Builds brand loyalty for the magazine among readers. • The challenge facing magazine publishers now is to find a way to make their magazine web sites profitable as both magazines and advertisers can benefit from this multiplatform tie-in (see Exhibit 11.14).

32. How Space is Sold – Cooking Light Sponsors Supper Clubs • EXHIBIT 11.14. – Cooking light magazine sponsors supper clubs for its readers.

33. How Space is Sold – Magazine Rate Structure – Typical Rate Card and Discounts • A typical rate card for a monthly publication might look like this: • Frequency and Volume Discounts – The one-time, full-page rate of a publication is referred to as its basic, or open, rates. • The basic or open rate for a magazine as is the one-time, full-page rate of publication. • Most publications present their discounts on a per-page basis in which rates vary according to frequency of insertion during a 12-month period.

34. How Space is Sold – Rate Structure: Discounts – Frequency and Volume • Frequency – In media exposure, the number of times an individual or household is exposed to a medium within a given period of time. • Volume – In a similar fashion, the volume discount givers a larger percentage discount based on the total dollar volume spent for advertising during a year.

35. How Space is Sold – The Magazine Short Rate • A Magazine Short Rate –Involves an advertiser using less space than originally contracted for the year and being charged an adjustment at a higher-than-contracted rate per page. • Some publishers charge the top (basic) rate throughout the year but state in the contract “rate credit when earned.” • If the advertiser earns a better rate, the publisher gives a refund. • Much of the consumer magazine cost, circulation, contact, and other advertising specific information needed by advertisers (including online links to magazines) can be found in the Standard Rate and Data Service (SRDS). See Exhibit 11.15. in the test.

36. How Space is Sold – Magazine Dates • There are three sets of dates to know in planning and buying magazine space: • Cover date: The date appearing on the cover. • On-sale date: The date on which the magazine is issued (e.g., a January issue could come out December 5th) • Closing date: The date when the print or plates needed to print the advertisement must be at the publishers in order to make an issue. • If a planner and buyer want to ensure an advertisement makes a particular issue of a magazine, they must deliver the ad no later than the Closing Date.

37. How Space is Sold – Magazine Networks – Single Publisher Networks • The term network, of course, comes from broadcast when affiliated stations cooperated to bring audiences national programming as early as the 1920s. • Although there are a number of magazine networks, they generally fall into two categories: • Single Publisher Networks – Here a network is 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. • The publisher network can be especially effective in encouraging a media buyer to choose among similar magazines. • Hearst Magazine Group publishes more than 20 magazines and allows advertisers that use multiple titles to build network discounts.

38. How Space is Sold – Magazine Networks – Hearst: A Single Publisher Network • This is an example of a Single Publisher Networks advertisement that the Hearst Magazine Group publishes.

39. How Space is Sold – Magazine Networks – Independent Networks • The second type of magazine network is made up of different publishers that market magazines with similar audience appeals. • A rep firm that contracts individually with each publisher and then sells advertising for magazines with the group usually offers these networks. • The concept is similar to the space wholesaling that George Rowell began in the 1850s. • Media Networks, Inc., the largest independent network firm, offers several networks, each geared to a specific audience. • The MNI Business Network consists of seven magazines including Forbes, Inc., Fortune Small Business, Money, Fast Company, and Business Week.

40. How Space is Sold – Media Networks Executive: An Independent Network • This is an example of an Independent Networks advertisement that the MNI Business Network publishes.

41. Magazine Circulation – Paid Circulation and Rate Base • Media planners don’t buy magazines, television spots, or outdoor signs – they buy audiences. • In the magazine, there are two distinct methods of determining audiences: Paid Circulation and Rate Base. • Magazine rates are based on the circulation that a publisher promises to deliver to advertisers, referred to as the Guaranteed Circulation sometime referred to as the Rate Base, or the circulation on which advertising rate for a specific magazine are based. • Paid Circulation, also known as the Rate Base, is the circulation on which advertising rates are based.

42. Magazine Circulation – Readership • Readership usually combines paid circulation (subscribers and newsstand purchasers) and pass-along readers. • Many advertisers and magazine publishers are concerned about the use of readership as a substitute for paid circulation. • Historically, the use of readership is rooted in the magazine industry’s competition with television. • Publishers want to keep readership surveys to fairly take into account their total readers. • It would seem that total readership, accurately measured, would be a reasonable approach to measuring magazine audiences.

43. Measuring Magazine Audiences – The Audit Bureau of Circulations • We now turn to the issue of how publishers verify the circulation and readership of their magazine. • The Audit Bureau of Circulation (ABC) is the largest of several auditing organizations that verifies magazine circulation. • The ABC provides two basic services: the publisher’s statements or “pink sheets” (because of their color), which report 6-month periods ending June 30 and December 31. • The second service the AVC audits uses “white sheet” to annually audit the data provided in the publisher’s statements.

44. Measuring Magazine Audiences – The ABC and Magazine Circulation • This is an example of the Audit Bureau of Circulation auditing organization that verifies magazine circulation.

45. Measuring Magazine Audiences – Syndicated Magazine Readership Research • Advertisers are interested in the primary readers of magazines. • They are also interested in who these readers are and what they buy, as well as pass-along readers who are given the publication. • Currently, there are two principal sources of syndicated magazine readership research which are two competing firms that provide audience data for several media. Best known for magazine research: • Simmons Market Research Bureau (SMRB) and Mediamark Research Inc. (MRI).

46. Syndicated Magazine Readership Research • These are examples of syndicated magazine readership research.

47. The Business Press and Business-to-Business Advertising • Compared to advertisers in consumer magazines, advertisers in business magazines are more interested in audience selectivity. • Because of the tone and advertising carried in business publications, the following are reasons typical businesspeople would consider them: • To monitor the competition. • To help with marketing strategy for their product category. • For up-to-date information on trends in their industry. • For reference material. • First and foremost, the advertising message in B2B has to be directed at profitability of the customer.

48. Communicating the Business-to-Business Message • Business-to-business advertisers must consider a number of factors in addressing their specialized audiences. • Factors the business community should consider are: • Appeal to prospects in terms of job interests and demands. • Sell benefits to the buyer not the features of the product. • The job of business advertising is to support and facilitate the sales function. • Advertisement should avoid product puffery. • Business advertising needs to have a clear, measurable objective. • Advertisers must consider pass-along readership. • A major force in business marketing since the mid -1990s has been the Internet. • The Internet gained acceptance faster in B2B marketing than in consumer marketing.

49. Business Publication Expansion of Services • As the competition for B2B advertising and promotional dollars increase, business publications have increasingly engaged in a number of ventures to reach their core readers and at the same time increase the profitability of their companies. • The following are ventures that business publications have undertaken to reach core readers: • Trade shows. • Event-related publications. • Subscriber list rentals. • Custom publications.

50. Business Publication Expansion of Services • Business publications have increasingly engaged in a number of ventures to reach their core readers and at the same time increase the profitability of their companies such as: Subscriber List Rentals –Major business publications find that their subscriber list is one of the most valuable commodities they own. Event-Related Publications – Golf tournaments, car shows, and conventions from religious denominations are examples. Custom Publications – Very lucrative business. These custom magazines re a major source of revenue for many trade publications. Trade Shows – Bring buyer and sellers from an entire industry together to view new products and methods of doing business.