Advertising and It’s Purpose


Media Rates Section 17.2 A. MEDIA MEASUREMENT


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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

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

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