Advertising and It’s Purpose


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Advertising

3. ONLINE RATES

  • Based upon the type of format the customer desires.
  • Banner ads
  • Rich-media enhanced banner ads
  • Button ads
  • Interstitial ads
  • CPM rate based on number of viewers
  • Rates vary based on the volume of monthly page views

4. RADIO RATES

  • Types of Radio Advertising
  • 1. Network radio advertising
  • 2. National spot radio ad
  • 3. Local radio advertising
  • Spot radio refers to geographical area where an ad runs
  • Spot commercial are ad messages of one minute or less on network or spot radio
  • Drive time and run-of schedule (ROS) allows a radio station to decide when to run the ad.

5. TELEVISION RATES

  • Rates vary with the time of day. Prime time (7:00 p.m.-10:00 p.m.) most expensive
  • Advertisers try to play their messages during the time slots that enable them to reach the most customers

D. PROMOTIONAL BUDGET FOUR METHODS

  • Promotional Budget considers not only the cost for developing and placing or airing advertising but also the cost of staffing the department or campaign.
  • 4 Common promotional budgeting methods are:
  • Percentage of sales method – budget based on a percentage of past or anticipated sales
  • All you can afford method – first pay all expenses then apply remainder of funds to promotional activities
  • Following the competition method – advertiser matches its competitor’s promotional expenditures
  • Objective and task method – company determines goals, identify steps to meet goals and determines cost for promotional activities to meet goals

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