Recently, advertisers were upset because, apparently, some magazines were reporting circulation
figures to be higher than they actually were. Why do you think advertisers were upset?
Inflated circulation figures by just a few publications make the entire industry suspect.
Any negative publicity for a magazine will reflect poorly on their brands because they are
supporting that publication.
Magazine advertising rates are based on circulation figures.
Falsifying circulation figures will hinder future distribution for a magazine.
It generated negative publicity among consumers, which are the advertisers’ target market.
A national advertiser would like to advertise more in newspapers, but there is a substantial rate
differential between national advertisers purchasing the same ad size as local retailers, and, on
average, the national advertisers must pay more than 60 percent more for the same space. What can
a national advertiser do to avoid this rate differential?
Use the “one–order, one–bill” ordering system because they’ve negotiated the rates down to
the local rates.
There’s really nothing a national advertiser can do to avoid the higher rate.
Use co–op advertising, which is an arrangement between an advertiser and a retailer
whereby the retailer buys the ad at the local rate and the advertiser reimburses some or all of
the costs.
Use the “co–op” ordering system because they’ve negotiated the rates down to the local rates.
Advertise only in larger cities because newspapers in those markets do not charge a rate
differential.
Who makes the strategic decisions outlined in the media plan?