Marketing Chapter 13 Paid Media Movie Giant Screenvision Now Offers Minute Preshow Called The

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Chapter 13: Paid Media

 Movie giant Screenvision now offers a 20-minute preshow called The Limelight

as a mobile app that lets viewers watch trailers, search for showtimes, and earn

points toward free movie tickets and concession snacks. They can also play video

Video Game Advertising

 Marketers and media planners have been frustrated trying to reach young people with

traditional ads on mainstream media. That has led to an increased focus on unusual

media that are clearly the province of young people, such as video games.

 Now a global multi-billion-dollar industry, the video game business is developing as

a major new medium for advertisers to target 12- to 34-year-old males, although girls

are getting into the act as well. And, Wii is bringing in an older adult audience of both

men and women with its sports and exercise programs.

Place-Based Media

 What we call out-of-home media or place-based media include everything from

billboards to hot-air balloons. That means ads on public spaces, including buses,

posters on building walls (barn roofs in the old days), telephone and shopping kiosks,

painted and wrapped cars and semis, taxi signs and mobile billboards, transit shelters

and rail platforms, airport and bus terminal displays, hotel and shopping mall

displays, in-store merchandising signs, grocery store carts, shopping bags, public

restroom walls, skywriting, in-store clocks, and aisle displays.

 Although total spending on out-of-home media is hard to determine because of the

industry’s diversity, this category is second only to the internet as the fastest-growing

marketing communication industry.

Chapter 13: Paid Media

Outdoor Advertising

Of the $9 billion spent on outdoor advertising in 2016, billboard ads accounted for

approximately 60 percent; street furniture, such as signs on benches, transit ads, and

alternative forms (e.g., cinema, shopping malls, wallscapes) brought in the rest. Outdoor

advertising refers to billboards along streets and highways as well as posters in other

public locations.

 In terms of size and format, there are two traditional kinds of billboards, bulletins and

posters, as well as digital billboards:

 The billboards along major highways are called bulletins. Painted outdoor bulletins

range in size from 10 feet by 30 feet to 14 feet by 48 feet.

 Posters are generally about half the width of bulletins, at 10 feet by 22 feet, but can

run as small as 5 feet by 11 feet.

 Vinyl is the material of choice for both bulletins and posters because it has a brighter

appearance, UV defensive paint, and is much longer lasting than painted boards.

 The outdoor landscape was dominated by large roadside billboards, but is now

experiencing a paradigm shift as static ad displays are being converted to digital

units.

 For advertisers the conversion to digital, in addition to digital’s lower production

costs and shorter lead times, provides greater availability, scalability, and

flexibility on content, as illustrated in Figure 13.3.

Chapter 13: Paid Media

 Advertisers can purchase any number of units (75, 50, or 25 showings daily are

common quantities). Boards are usually rented for 30-day periods, with longer

periods possible. Painted bulletins are bought on an individual basis, usually for one,

two, or three years.

 The cost of outdoor advertising is based on the percent of population in a specified

geographical area exposed to the ad in one day. Based on a traffic count, the number

of vehicles passing a particular location during a specified period of time is called a

 Because of the very short time consumers are normally exposed to a traditional

billboard message (typically, three to five seconds), the message must be short and

the visual must be very attention getting. No more than 8 to 10 words is the norm.

 The “Practical Tips” box identifies key features of outdoor media and provides

suggestions on how to design effective attention-getting messages for this “gigantic

canvas.”

New and Novel Forms

 Innovation is important for the out-of-home industry with some boards now equipped

to run mini-movies and ads electronically. Some digitally enhanced outdoor boards

Unique Uses for Billboards and Posters

 Posters may appear on the sides of buildings, construction sites, and even vehicles.

Empty storefronts in prime downtown locations and major thoroughfares have

become the latest venue for posting posters. With their large expanse of window

space, abandoned retail stores have become a frugal way to deliver a big message

during the recession.

Chapter 13: Paid Media

Transit Advertising

 This is mainly an urban mass advertising form that places ads on vehicles such as

buses and taxis that circulate through the community as moving billboards. Transit

advertising also includes the posters seen in bus shelters and train, airport, and

subway stations.

 Most of these posters must be designed for quick impressions, although people who

are waiting on subway platforms or bus shelters often study these posters, so here

 There are two types of transit advertising – interior and exterior.

 Interior transit advertising is seen by people riding inside buses, subway cars,

and taxis. These are primarily posters or car cards, sometimes with coupons or

other forms of tear-off information that can be taken away. These can be designed

like outdoor boards with simple messages, but because the riders are largely a

designs on the sides both long haul and delivery trucks.

Event Advertising and Sponsorships

Ads at events and stadiums are another type of out-of-home media. Some are electronic,

but many are printed posters. Ads also appear all over cars at races as well as on their

driver’s outfits. Companies pay huge fees, as sponsors, in order to get their logos in

prominent positions.

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ONLINE ADVERTISING

 Internet advertising can be delivered to a website as a traditional display ad, or it can

be presented in other formats, such as banner ads across the top or bottom of a Web

page.

 The greatest percentage of internet advertising is found on a small group of large,

established sites that operate as electronic publishers, such as www.nytimes.com,

www.wsj.com, and www.espn.com, as well as on major search engines and service

providers, such as Google and Yahoo!. These media and search organizations have

established reputations, and they know how to sell advertising.

 Mobile is no longer a trend. It’s now an integral part of everyday life for millions

of consumers worldwide, and no other device is so ingrained in consumer behavior.

On average, people in the United States spend three hours a day on their mobile

devices.

 Facebook suggests measurement should focus not on “clicks” but rather on brand

advertising image and relationship building. To capture more advertising dollars

heading to mobile platforms, Facebook has been beefing up its “Audience Network,”

which lets marketers buy ads across the internet using Facebook’s data.

Chapter 13: Paid Media

 Although online advertising continues to be a hot topic at industry seminars, there are

some critics who question its effectiveness. Michael Wolff, who blogs on Technology

Review, says that people’s behavior on the web and how they interact with

advertising is different from traditional media. He charges that “the character of those

ads themselves and their inability to command real attention, has meant a marked

decline in advertising’s impact.”

Website Advertising

Here are some common, as well as novel, formats:

 Skyscrapers are the extra-long, skinny ads running down the right or left side of a

website. Response rates for skyscrapers, which began to be used aggressively by

more companies in the early 2000s, can be 10 times higher than for traditional banner

ads.

 Pop-ups and pop-behinds burst open on the computer screen either in front of or

behind the opening page of the website. They are seen as intrusive and annoying, so

some internet advertisers have moved away from this format, and some computer

software programs block them.

 Micro-sites or mini-sites are small websites that are the offspring of a parent website,

such as the TDI Diesel site on the corporate VW site. For marketing purposes, the

micro-site may cover particular products, campaigns, events, or promotions.

Microsites tend to be more tightly focused than their parent sites and may be

 Superstitials are thought of as the “Internet’s commercial” and are designed to work

like television ads. When you go from one page on a website to another, a 20-second

animation appears in a window.

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 Widgets are tiny computer programs that allow people to create and insert professional

looking content into their personal websites and also onto their television screens.

They include news notes, calculators, weather feeds, stock tickers, clocks, book or

music covers, or other web gadgets that can be a brand-name promotional offer. It’s a

way to get a nonintrusive brand reminder ad on the desktop, website, or blog.

 Widgets also refer to mini applications that pull content from some other place on

the web and add it to your site. In addition to getting onto cell phone screens and

social media pages, they also can monitor contacts when someone clicks on the

feature.

 Designers of online ads, mobile apps, and products are increasingly turning to the

processes and principles of User experience design (UX) and User interface design

(UI) in order to maximize usefulness and accessibility to consumers, and to improve

product websites so that visitors stay longer.

 The UX process originated in the field of ergonomics and focuses on the entire

customer experience with a product or ad, and, as the figure shows, often includes

field research, product design, prototyping, and learning from customer testing

and feedback.

 The UI process focuses on the look, feel, and layout of the ad or product interface

and enhancing its attractiveness and interactivity with consumers.

 Research generally finds that the click-through rate nearly doubles when motion and

an interactive element are added to a banner ad–and that’s true for display ads as well.

 Principle: The click-through rate nearly doubles when motion and an interactive

element are added to a banner ad—or to any form of online advertising.

Click-Throughs

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smartphones than desktop computers.

 The difference in click-through response lies in the creativity and attention-getting

power of the banner ad or ad and where it is placed. The more related and relevant a

site is to the brand, the more likely it will generate a higher level of click-throughs.

 Principle: The more relevant a website is to the brand, the more likely an ad will

generate a higher level of click-through.

Online Video Ads

 Website visitors or viewers watching video downloads also confront a variety of

online video ads. There are about 30 formats available, so advertisers who want to use

video are struggling to find the best platform for their ads. The most common are in a

pre-roll format, which forces viewers to watch a video ad before viewing video

clips.

 Other formats include interactive video ads that drop down over the screen and

allow viewers to click for more information and videos that allow viewers to click

on hot spots or buttons within the video to learn more about a product.

Online Classified Ads

 A small part of the online advertising world is classified advertising, whether through

local media websites or Craigslist. The move to online “want ads” has been a big

contributor to the financial trouble that local newspapers find themselves in.

Chapter 13: Paid Media

Search Advertising

 People do hundreds of millions of searches a day on their computers, smart phones,

tablets, and other electronic devices. Estimates for the percentage of internet

advertising that goes to sites connected with search advertising range from 50 to 80

percent, which indicates how important the search function is for consumers and the

marketers who are trying to reach them.

 Search providers, such as Google, MSN, Bing, and Yahoo!, auction off positions that

let advertisers’ ads be seen next to specific search results. Google AdWords is the

leading platform available for search advertising, supplying most of Google’s revenue

each year. It functions on a “pay per click” basis; that is, advertisers only pay when

their ad is clicked and the user is connected to their website.

 A benefit of online consumer searches is that they leave a trail of clues about

products, features, and advertising approaches. This behavior can be mined for

insights that lead to new products.

 With a credit card and a few minutes, a small business owner can set up a link

between his or her brand and a key word or key terms. It’s the ultimate in brand

linkage and interest association. Because consumers initiate the search, the adjoining

ads are not perceived to be as intrusive as other forms of advertising. In 2013, the

Federal Trade Commission expressed concern that search engines would often bring

up content that might not be identified as paid advertisements and laid out guidelines

to help visitors more clearly distinguish ads from other types of information.

 The practice of maximizing the link between topics and brand-related websites is

called search optimization. Companies try to affect their search engine rankings to

drive more traffic to their websites. To have maximum visibility, they want their ads

to appear as close to the top of the list as possible. An important first step for

marketers in creating a viable website is getting it registered with popular search

engines so that it shows up early on the list provided by the search engine.

Chapter 13: Paid Media

 Another type of consumer search using smart phones is based on a quick-response

code, which is a type of two-dimensional bar code that uses a scannable matrix

design of square dots. You see them in ads and articles, on packages, and the sides of

buildings, anywhere a company wants to post this code as a scannable link to its

website. The point is that this is just one more way consumers can search for

information using their mobile phones.

Online Advertising Sales

Selling online advertising space is complicated. Major sites, such as MSNBC.com and

History.com, sell ads on their pages charging premium prices because they are on high-

traffic sites. They can cost from $10 to $50 per thousand viewings, depending on the

visibility of the position.

 DoubleClick emphasizes the importance of building a web presence that is optimized

for mobile, reporting that advertisers can double their mobile ad revenue if their

mobile sites load in 5 seconds versus 19 seconds and that more than half of mobile

site visits are abandoned if they take longer than 3 seconds to load.

 Middlemen companies act as brokers for online ad space that they aggregate across

different sites and package as single buys, in effect setting up an ad network. This ad

networker offers less well-designed sites and may sell space for less than a dollar per

thousand viewers. They are criticized for flooding the internet with cheap and

sometimes tacky ads.

 Google, Microsoft, and AOL have set up ad exchanges that allow advertisers to bid

directly on available ad space on large groups of websites. In effect, they are cutting

out the middlemen. Other big websites, such as ESPN, Turner Broadcasting, and

Forbes magazine, have stopped doing business with the ad networks in order to gain

better control over the quality of the content on their sites.

Chapter 13: Paid Media

Digital Issues for Traditional Media

 Some newspapers and magazines have “bundled” subscriptions that include print,

digital, and apps for smart phones and tablets. Others offer separate subscription rates

for print, digital, and/or app packages.

 For television, more and more cable customers are “cord-cutting,” or moving away

from television services that require a fixed contract and buying on-demand options

instead. These on-demand options are called over-the-top content, which refers to

audio, video, and other media content delivered over the internet without the

involvement of a traditional provider such as cable or satellite TV.

 Consumers must disconnect their TVs from the internet if they wish to avoid the ads,

meaning that they won’t be able to use streaming providers such as Netflix, Hulu, or

Amazon Prime. Viewers have not been happy.

END-OF-CHAPTER SUPPORT

REVIEW QUESTIONS

13-3. Explain how newspapers vary based on frequency of publication, format and

size, and circulation.

Most newspapers are published either daily or weekly. Daily newspapers are usually

found in cities and larger towns and have morning editions, evening editions, or all-day

editions.

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13-4. Explain how newspaper readership is determined and measured, and how

readership differs from circulation.

Newspapers measure their audiences to assess their performance and spot growth

opportunities. They also use readership data to attract advertisers who want to reach their

readers. Newspapers obtain objective measures of newspaper circulation and readership

by subscribing to one or both of the following auditing companies: the Auditing Bureau

13-5. What are the advantages of magazine advertising?

Most American adults read at least one magazine per month, and they spend more time

with magazines than with other print media. Color and quality of reproduction are the

biggest strengths of magazines. They allow the advertiser’s products and brand image to

be presented in a format superior to the quality of newspapers. People tend to pay more

13-6. What is the greatest advantage of using outdoor advertising? Of directory

advertising?

Outdoor advertising has the advantage of being a high-impact medium offering larger-

than-life visuals, on a hard-to-ignore structure. It is valued as a directional medium

because it tells someone how to find a business establishment. It can also serve as a brand

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13-7. How can radio be used most effectively, and what are the advantages and

limitations of advertising on radio?

To maximize the impact of a radio spot, timing is critical and depends upon

understanding when the target audience is most likely to be responsive. For example,

restaurants run spots before meals; auto dealerships run spots on Friday and Saturday,

when people are free to visit showrooms; jewelry stores run spots before Christmas.

Radio buys can be used at the local level to supplement national television and cable and

can act as a reminder.

13-8. How can television be used most effectively, and what are the advantages and

limitations of advertising on television?

A media buyer must be thoroughly familiar with all of the various television options,

including network, local, and cable. For example, networks allow sponsorships,

participations, and spot announcements through their affiliates. In turn, local affiliates

allow local sponsorships, spot announcements, and national spots. Cable systems allow

system (national) spots and local spots. Finally, interactive television allows (national)

spots and local spots.

Advantages: Because of its mass appeal and wide reach, television advertising is the most

cost-effective way to deliver a mass media message to a large audience. Television also

has a buzz factor with viewers talking with friends about their favorite programs. In

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13-9. What are trailers and how are they used as an advertising form?

13-10. How can movie advertising be used most effectively, and what are its

advantages and limitations?

Movie theaters, particularly the large chain theaters, sell time at the beginning of their

film showings for commercials, called trailers. Most of these trailers are previews

advertising upcoming films, but some are national commercials for brands, ads for local

businesses, PSAs, or other forms of sponsored programs.

Advantages: The reason trailers are valued by marketers is that they play to a captive

audience with their attention on the screen, not reading or talking to other people. The

attention level is higher for these ads than for almost any other form of commercials.

Limitations: The captive audience dimension is also the biggest disadvantage of movie

advertising because people resent the intrusion. They believe they paid for the ticket, so

they shouldn’t have to pay with their time and attention to watch commercials.

13-11. What is a website, and how does it differ from other forms of advertising?

Chapter 13: Paid Media

The internet as an advertising medium is very viable as an additional channel of

communication that will continue to have a place in the media mix. Internet sites can

attract advertisers with reasonable rates and assistance in creating an effective ad. And,

with improved metrics it is easier to accurately monitor the audiences being reached.

13-15. You are a major agency media director who has just finished a presentation to a

prospective client in convenience food marketing where you recommend increasing the

use of local radio and television advertising in spot markets. During the Q-and-A period,

a client representative says: “We know that network television viewers’ loyalty is nothing

like it was ten or even five years ago because so many people now turn to cable, VCRs,

and the Web. There are smaller audiences per program each year, yet television time

costs continue to rise. Do you still believe we should consider commercial television as a

primary medium for our company’s advertising?” Another member of the client team

questions whether broadcast is effective given the clutter on both radio and television

with long commercial pods. “Why shouldn’t we decrease our use of broadcast

advertising?” How would you answer? Develop an argument in support of either

increasing or decreasing the use of broadcast advertising for this client.

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13-16. Portfolio Project: You have been asked by the director of your school’s student

union to make a chart of all the traditional media serving your market to use in promoting

the center’s 50

anniversary events. Develop a profile for each medium giving the key

characteristics, such as type of programming (for broadcast), the type of audience

reached, the products commonly advertised, and the appropriateness of this medium as an

advertising vehicle for the center’s special celebration. At the end of your media analysis,

identify the top three that you would recommend and explain why.

Information needed to prepare the chart can be readily obtained from the various

chapters in the textbook that discuss media. In order to prepare an effective analysis,

13-17. Mini-Case Analysis: Aflac has been an award-winning campaign for years. How

important do you think the “voice of the brand” is? Why not have multiple quacking

ducks? Explain how its media use has contributed to its success. In particular, describe

how the media mix has evolved. If you were a member of the team planning the next

year’s campaign, what other media might be useful?

The duck has a voice that is essential to the brand awareness. When the duck’s voice was

silenced, the company and agency moved with lightning speed to restore it with a

Chapter 13: Paid Media

TRACE NORTH AMERICA CASE

Multicultural Advertising Media

Read the TRACE case in the Appendix before coming to class.

13-18. In what ways do traditional advertising media contribute to the “Hard to Explain,

Easy to Experience” campaign? Why?

13-19. How can online advertising be used in support of this campaign?

ADDITIONAL MATERIAL

ASSIGNMENTS

Individual Assignments

1. Research the development of the TV viewing via the internet such as Netflix and

Hulu. How has it fundamentally changed television programming? What new

challenges and opportunities does it present to advertisers? Write a 750-word paper

2. Locate and interview a radio station manager. He/she could be in AM, FM, cable,

satellite, or Web radio. Ask about the future of the industry in your market. What are

the anticipated trends? What will be different about the industry one year, five years,

and 10 years from now? What new advertising challenges and opportunities will it

bring? What is the station doing to prepare for changes? Write up your findings in a

3. Go online and visit the websites of one consumer magazine and one business

magazine. Analyze the information provided by each site regarding the target market

Think-Pair-Share

1. Together, record any 60-minute television show of your choice. Then, review the

commercials. List the sponsors and tabulate the commercials in terms of length,

number of airings, and time between commercial breaks. Taken as a whole, what

does this information tell you about clutter, intrusiveness, and irritation in television

advertising? As the consumer, what is your response to these advertisements?

Summarize your findings in a PowerPoint presentation for the class.