Advertising Chapter 19 Advertising and It’s Purpose

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