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Media Measurement and Rates

Media Measurement and Rates. Chapter 14.2 Introduction to Business and Marketing. Objectives. List the components of media measurement. Identify how advertising costs are measured. Describe how media rates are determined. The Main Idea.

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Media Measurement and Rates

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  1. Media Measurement and Rates Chapter 14.2 Introduction to Business and Marketing

  2. Objectives • List the components of media measurement. • Identify how advertising costs are measured. • Describe how media rates are determined.

  3. The Main Idea Businesses need to reach as many targeted customers as possible. Many companies do this by advertising. It is important to calculate ad costs and measure media effectiveness to best reach a potential audience.

  4. Media Planning Media planningcan help a business project the desired image to the target market.

  5. Market Planning Questions • Can the medium present the product or service and the appropriate business image? • Can the desired customers be targeted with the medium? • Will the medium get the desired response rate?

  6. Advertising Agencies Hiring an advertising agencycan be an effective way to develop ads. An advertising agency can help a business develop an ad campaign.

  7. Media Measurement Media planners are concerned with • the correct medium to use • its costs • its effectiveness Media planners want their ads to reach the correct audience

  8. Media Measurement Two media measurements are impressionand frequency. Cost per thousand (CPM)is related to the number of people that read or see an ad The “M” in CPM comes from the word mille, which is Latin for “thousand.”

  9. Media Audiences TV audience measurement is based on diaries and viewer data collected by Nielsen Media Research Inc.® Arbitron Inc.® uses listener diaries to measure radio audiences in more than 260 markets.

  10. Media Rates Advertising uses a set formula that is defined in terms of time or space. A media rate or advertising rate is the amount of money it costs to display or broadcast an ad.

  11. Factors Affecting Media Rates The size of an ad The number of people an ad reaches Where anad is placed Factors AffectingMedia Rates When an adappears How often anad appears

  12. Print Media Ad Rates Ad rates for newspapers and magazines are based on circulation. • Circulation is the number of people who buy a publication, and audience, the number of readers per issue. Magazine and newspaper ads are sold by the inch on a page.

  13. Print Media Ad Rates If a newspaper quotes a column inch rate, multiply the number of inches by the number of columns. Then multiply the total column inches by the rate. A column inch is one column wide by one inch deep Rate for a column inch is $17 You want an ad that measures four inches long by three columns wide $17 X 4 inches X 3 Columns = $204

  14. Print Media Ad Rates Magazine rates are based on: • Circulation • The type of readership • Production techniques • Position (prime positions are more costly)

  15. Broadcast Media Ad Rates Broadcast media ad rates depend on: • The size of the audience • The reach of the station • The time of the day

  16. Broadcast Media Ad Rates For TV, prime timeis between 7 PM and 11 PM. For radio, prime time is the morning or afternoon hours (drive time).

  17. Internet Ad Rates The cost of Internet advertising is based on: • Type • Size • Ad • Volume of monthly page views

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