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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Introduction to Business and Marketing
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.
Media planningcan help a business project the desired image to the target market.
Hiring an advertising agencycan be an effective way to develop ads.
An advertising agency can help a business develop an ad campaign.
Media planners are concerned with
Media planners want their ads to reach the correct audience
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.”
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.
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.
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
Ad rates for newspapers and magazines are based on circulation.
Magazine and newspaper ads are sold by the inch on a page.
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
Magazine rates are based on:
Broadcast media ad rates depend on:
For TV, prime timeis between 7 PM and 11 PM.
For radio, prime time is the morning or afternoon hours (drive time).
The cost of Internet advertising is based on: