11. TRADITIONAL ADVERTISING MEDIA Answers to Discussion Questions What are the advantages and disadvantages of cable television advertising? Why are more national advertisers turning to cable television as a viable advertising medium? How is social media (Twitter, Facebook, etc.) becoming integrated into TV viewing? Answer: Cable advertising is attractive to national advertisers for several reasons: (1) advertisers are able to reach more finely targeted audiences, (2) the rising costs of network advertising and declining audiences have compelled advertisers to experiment with media alternatives such as cable, and (3) the demographic composition of cable audiences is attractive because they are more economically upscale and younger than the population as a whole. TV shows are using social media to integrate their TV content, adding value and extras for consumers. TV viewers are more often simultaneously using Internet and apps, while watching TV. New TVs, such as Google TV, are integrating the Internet right into the TV. Assume you are brand manager for a product line of book bags designed for college students. These bags come in each university’s school colors and are imprinted with the school’s mascot. Assume you have $5 million to invest in a two-month magazine advertising campaign (July and August). What magazines would you choose for this campaign? Justify your choices. Answer: Regardless of which magazines a student chooses, the important consideration is that he or she justifies the choice in terms of CPM and in terms of special magazine characteristics that might justify choosing a magazine with a relatively higher CPM. Assume you are a manufacturer of various jewelry items. Graduation rings for high school students are among the most important items in your product line. You are in the process of developing a media strategy aimed specifically at high school students. With an annual budget of $10 million, what media and specific vehicles would you use? How would you schedule the advertising over time? Answer: Assuming that this manufacturer markets its rings nationally, it is obvious that $10 million is grossly insufficient for conducting a national advertising campaign using major media such as network television, radio, or magazines. This, of course, is the point of the question. Students should recognize that an advertiser with a limited budget faces different media alternatives than Procter & Gamble, Ford, and other well-endowed national advertisers. It might be possible for the ring company to advertise on cable television that reaches high school students. MTV would be a natural choice to enhance the credibility of the manufacturer’s brand. As far as timing is concerned, advertising should be placed immediately preceding the point in the school year when students receive the opportunity to choose a class ring. Examine a copy of the most recent Spot Radio Rates and Data available in your library and compare the advertising rates for three or four of the radio stations in your hometown or university community. Answer: The purpose of this straightforward exercise is to assure that students are exposed to this well-known data source. However, if it is not available in your library, students should be encouraged to visit radio stations to obtain rate cards or get them from the station’s website. Pick your favorite clothing store in your university community (or hometown), and justify the choice of one radio station that the clothing store should select for its radio advertising. Do not feel constrained by what the clothing store may be doing already; focus instead on what you think is most important. Be certain to make explicit all criteria used in making your choice and all radio stations considered. Answer: This exercise is designed to encourage students to think objectively about the factors that enter into the choice of a particular radio station. Students obviously should be expected to explicitly identify the criteria (e.g., cost, audience specifications) that entered into their choice, to specify the weights applied to these criteria, and to explain the reasons they have evaluated the chosen station over alternatives Magazine A is read by 11,000,000 people and costs $52,000 for a full-page, four-color advertisement. Magazine B reaches 15,000,000 readers and costs $68,000 for a full-page, four-color advertisement. Holding all other factors constant, in which magazine would you choose to advertise? Answer: CPM (cost per thousand) is the basis for comparing the two magazines (see Chapter 16 for CPM information). The CPM for magazine A is $4.73 ($52,000 ÷ 11,000) and the CPM for magazine B is $4.53 ($68,000 ÷ 15,000). Magazine B is less expensive on a CPM basis and should be chosen. Go online and see if you can locate a current (as of January of the present year) rate card for you favorite magazine. Carefully study this rate card and summarize your observations regarding price differentials for, say, black-and-white ads versus four-color ads of the same page size. (If you cannot locate a rate card for your favorite magazine, find one for your next favorite, and so on.) Answer: If students search for “media kit” on Google, they should be able to find information for this question. However, I can provide some general insights based on typical pricing differentials for black-and-white ads versus four-color ads in magazines: 1. Black-and-White Ads: • Black-and-white ads are typically the most economical option for advertisers. • They are suitable for conveying simple messages or designs without the added cost of color printing. • Pricing for black-and-white ads is usually based on factors such as ad size, placement within the magazine, and frequency of insertion. 2. Four-Color Ads: • Four-color ads, also known as full-color ads, offer advertisers the opportunity to use a wider range of colors and graphics to capture attention and convey their brand message. • These ads tend to be more visually appealing and attention-grabbing compared to black-and-white ads. • However, printing in full color incurs higher production costs, resulting in higher advertising rates compared to black-and-white ads. 3. Price Differentials: • The price differentials between black-and-white ads and four-color ads can vary significantly depending on the publication and its audience demographics. • In general, four-color ads are priced higher than black-and-white ads due to the added production costs and the perceived value of color advertising. • The rate card typically outlines the pricing structure for different ad sizes, placement options, and color options, allowing advertisers to choose the option that best fits their budget and advertising objectives. Overall, advertisers must consider their budget constraints, target audience, and advertising goals when deciding between black-and-white ads and four-color ads in magazines. The pricing differentials reflected in the rate card help advertisers make informed decisions about their advertising investments. Radio is the only major medium that is nonvisual. Is this a major disadvantage? Thoroughly justify your response. Answer: The lack of visual characteristics is a disadvantage for radio advertisers because of the limitations that are placed on product demonstration. Other media including television and magazines, which are able to show products and owners using them, provide a great deal of information to consumers. However, radio has compensating features. Without visualization, the cost of producing radio advertising is much lower and the lead time for producing a radio advertisement is much shorter. In addition, radio can transfer images from television by associating a radio advertisement with a television campaign. In your opinion, will portable digital-audio players (e.g., Apple’s iPod) eventually replace radio? Answer: As mentioned in the chapter, the iPod’s growing popularity has been shown, in fact, to be correlated with reduced radio ratings. So-called AQH ratings, which measure the number of people tuned to radio during an average quarter hour as a percentage of the population, fell by almost 6 percent during a five-year period, with the ratings decline among the college-aged demographic (18-24) even greater at 11 percent. One marketer made the following assertion: “Infomercials are junk. I wouldn’t waste my money advertising on this medium.” What is your response to her contention? Answer: The respectability of the infomercial has increased in recent years as well-known consumer goods companies have experimented with this form of advertising. For consumers, the advantage of infomercials is the combining of entertainment with information. Advertisers have found that this long-form commercial is an effective promotional tool for moving merchandise, and in this age of accountability, marketers can show results for their marcom efforts. Members of the advertising community often claim people meters are flawed. What are some of the reasons why people meters may not yield precise information about the number of households tuned into a specific television program or provide accurate demographic information of the people who actually do view a particular program? Answer: Many people will not take the time to always enter their unique ID number when viewing television. In general, it might be expected that people who are the most time pressured or least responsible are the ones most likely not to conscientiously enter their numbers. To the extent that these individuals’ viewing behaviors are systematically different, the people meter would lead to biased inferences regarding mass audience viewing behavior. Locate a recent SMRB or MRI publication in your library, and select a product large numbers of consumers use (soft drinks, cereal, candy bars, etc.). Pick out the index numbers for the 18-24, 25-34, 35-44, 45-54, 55-64, and 65 and older age categories. Show how the index numbers were calculated. Also, identify some magazines that would be especially suitable for advertising to the heavy users of your selected category. Answer: Table 12.3 provides a pared-down report that is useful for explaining the construction and interpretation of reports. Each of the detailed tables in these reports present cross-tabulations of demographic segments or media by product or brand usage. With the following data, fill in the empty blanks. Total ’000 A ’000 B % Across C % Down D Index All Adults 18–24 25–34 218,289 28,098 39,485 35,144 6,285 10,509 16.1 100.0 100 Answer: The “% Across” (column B) is calculated by dividing the value in column A for a segment by the value for “All Adults” in that same column. The “% Down” (column C) is calculated by dividing the value in column A for a segment by the value in the “Total” column for that segment. The “Index” (column D) is calculated by dividing the value in column B for a specific segment (i.e., 18-24) by the value in that column for “All Adults” and multiplying by 100. For example, the index for the 18-24 group is (22.4 16.1) 100 = 139. Total ’000 A ’000 B % Across C % Down D Index All Adults 18–24 25–34 218,289 28,098 39,485 35,144 6,285 10,509 16.1 22.4 26.6 100.0 17.9 29.9 100 139 165 Based exclusively on the data in question 13, if you were an advertiser deciding whether to advertise your brand just to people aged 18 to 24, just to the 25-to-34 age group, or to both age groups, what would be your decision? Provide a detailed rationale for your decision. Answer: The advertiser’s decision should be to choose the 25 to 34 age group. The index of this group is 165 compared to 139 for the 18 to 24 year olds, which means that the older age group is 65 percent more likely than average to purchase this product, whereas, the younger group is only 39 percent more likely than average to purchase this product. The 25 to 34 age group has a much higher propensity to purchase the product category. As a result, the advertiser’s investment in advertising would be more efficient if spent more on this age group, though as each group has a higher than average propensity to purchase this product, both should be considered in the advertising strategy. Why, in our opinion, is viewership of cable TV growing rather dramatically at the expense of network TV? Answer: Cable stations are available for almost any imaginable viewing preference, including cooking, golf, sports in general, music entertainment, general education, nature, science, and animal life, etc. What effect, in your view, will digital video recorders (of the TiVo variety) have on television advertising effectiveness in, say, 10 years from now? Answer: In the next decade, digital video recorders (DVRs) like TiVo are likely to continue reshaping the landscape of television advertising effectiveness. Here's how I foresee their impact: • Shift in Viewing Habits: With the convenience of DVRs, viewers gain more control over their TV-watching experience. They can skip commercials altogether or fast-forward through them, significantly reducing the exposure to traditional TV ads. This shift in viewing habits will necessitate a reevaluation of advertising strategies by marketers. • Demand for Targeted Advertising: As traditional advertising loses its effectiveness due to DVRs, there will be a growing demand for more targeted and personalized advertising methods. Advertisers will likely invest more in data-driven approaches to reach specific audience segments with relevant messages, leveraging technologies like programmatic advertising and advanced analytics. • Integration of Ad Content: To combat ad-skipping behavior, advertisers may increasingly integrate their messaging directly into the content viewers are watching. This could take the form of product placements, sponsored content, or native advertising seamlessly woven into the program. Such strategies aim to make the advertising experience less intrusive and more engaging for viewers. • Emergence of Interactive Ads: With the rise of connected TVs and interactive platforms, advertisers may explore new formats that allow viewers to engage with ads in meaningful ways. Interactive ads, such as quizzes, games, or polls, can enhance viewer participation and brand interaction, potentially mitigating the effects of ad avoidance. • Measurement and Accountability: Advertisers will place greater emphasis on accurate measurement and accountability in the digital era. Advanced analytics tools will enable them to track ad performance more precisely, focusing on metrics beyond traditional viewership numbers, such as engagement, conversions, and brand lift. This data-driven approach will drive optimization efforts and inform future advertising strategies. Overall, while DVRs pose challenges to traditional television advertising, they also present opportunities for innovation and adaptation. Advertisers who embrace new technologies, data-driven insights, and creative approaches to storytelling will be better positioned to navigate the evolving media landscape and connect with audiences effectively. Discuss how multitasking among TV viewing (e.g., smartphones, social media) has affected how people watch program content. How can this best be measured? Answer: Multi-tasking may mean that people are paying less attention to commercials. It might also mean that they are more engaged in content if they are sharing the experience with friends using social media simultaneously. Xbox Live and other interactive devices may be able to capture such simultaneous behavior but for now, it would be difficult to measure. What are your thoughts about brand placements in TV programs? Do you find these placements irritating or do you accept them as simply part of the programming landscape? Do you think they influence your attitudes toward advertised brands and purchase behavior? Answer: Brand placements in TV programs can be a double-edged sword. On one hand, they can enhance the realism and authenticity of the show's universe by featuring real-world products and brands. When done seamlessly and organically, brand placements can feel like a natural part of the storytelling experience, enriching the viewer's immersion in the narrative. However, when brand placements are overly intrusive or disrupt the flow of the program, they can indeed be irritating to viewers. Audiences may perceive blatant product placements as a transparent attempt at advertising, which can detract from their enjoyment of the content and even evoke a sense of cynicism. As for their influence on attitudes toward advertised brands and purchase behavior, the impact can vary depending on several factors: • Relevance and Integration: If the brand placement aligns well with the context of the program and is integrated seamlessly into the storyline, viewers may perceive it more positively and be more receptive to the brand message. In contrast, forced or out-of-place placements are likely to be less effective and may even evoke a negative response. • Viewer Engagement: Engaging viewers with the brand placement through meaningful interactions or associations within the narrative can increase the likelihood of influencing attitudes and purchase behavior. For example, if a character in a TV show uses a particular product in a way that resonates with viewers, it may lead to a more favorable perception of the brand and potentially influence purchase decisions. • Transparency and Authenticity: Viewers are increasingly savvy about advertising tactics, and they appreciate authenticity in brand placements. Transparent disclosures about sponsored content and clear distinctions between editorial and advertising content can foster trust with the audience. Conversely, attempts to deceive or manipulate viewers may backfire and harm the brand's reputation. In conclusion, while brand placements in TV programs are a common aspect of the modern media landscape, their effectiveness and impact on viewers' attitudes and behaviors depend on factors such as relevance, integration, engagement, and transparency. When executed thoughtfully and authentically, brand placements can enhance the viewing experience and positively influence audience perceptions and purchase decisions. Offer your thoughts about the likelihood that portable people meters (PPMs) will serve to effectively track people’s listening and viewing behaviors when they are away from home. Should Nielsen have taken advantage of this technology for measuring TV viewing? Answer: They should probably mention that it might be more accurate because respondents do not have to report their listening or viewing habits. However, they might not remember to wear the device. Portable People Meters (PPMs) have the potential to revolutionize the measurement of people's listening and viewing behaviors, especially when they are away from home. These devices, typically worn by participants, automatically detect and record audio signals from media sources, providing more accurate and granular data compared to traditional methods like diary-based surveys or set-top box monitoring. In terms of tracking TV viewing behavior, PPMs offer several advantages: • Accuracy: PPMs capture actual exposure to television content regardless of the viewing location, providing a more precise measurement of audience engagement compared to self-reported data or household-based monitoring. • Real-Time Data: PPMs enable real-time data collection, allowing broadcasters and advertisers to access up-to-date insights into viewership patterns and trends. This timely information can inform programming decisions, advertising strategies, and content optimization efforts. • Portability: The portability of PPM devices allows for tracking viewership across various environments, including out-of-home settings such as bars, restaurants, gyms, and public spaces. This comprehensive coverage extends beyond traditional home-based monitoring and provides a more holistic view of audience behavior. • Granularity: PPMs can capture detailed information about individual viewing habits, including channel preferences, time spent watching, and content engagement. This granularity enables more targeted advertising and content recommendations tailored to specific audience segments. Given these potential benefits, Nielsen, as a leading provider of television audience measurement services, should indeed consider leveraging PPM technology for measuring TV viewing. By integrating PPMs into their measurement methodologies, Nielsen could enhance the accuracy, reliability, and comprehensiveness of their audience measurement services, thereby better serving the needs of broadcasters, advertisers, and other stakeholders in the media industry. However, it's worth noting that implementing PPM technology for TV measurement would require overcoming various challenges, including privacy concerns, technological limitations, and the need for industry-wide adoption and standardization. Additionally, Nielsen would need to ensure transparency and accountability in the use of PPM data to maintain trust and confidence among media stakeholders and the general public. Overall, while there are challenges to address, the potential benefits of PPMs for tracking people's listening and viewing behaviors outside the home make it a technology worth exploring and integrating into Nielsen's audience measurement toolkit. Solution Manual for Advertising Promotion and Other Aspects of Integrated Marketing Communications Craig J. Andrews, Terence A. Shimp 9781111580216, 9788131528242, 9781133191421, 9781337282659
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