Chapter 11 Media choices: evaluating media options

1. Chapter 11Media choices: evaluating media options 11-1

2. Learning objectives • To examine the structure of specific media industries including broadcast, print, out-of-home and cinema and the role of each media channel in the IMC program. • To consider the advantages and limitations of each media channel. • To explain how audiences are measured and how rates are determined. • To consider future trends and how they will influence the use of media channels in IMC programs.

3. TV Radio Newspapers Print Broadcast Promotional products Cinema Magazines Product placement and computer games Media choices Out-of-home Branded entertainment Advantages and imitations Media buying Audience measurement Future trends Digital impact Social media

4. Media engagement

5. Share of advertising expenditure by main media: Australia % share

6. Share of advertising expenditure by main media: New Zealand 10.2 29.3 28.4 % share Source: Advertising Standards, New Zealand, 2011

7. TV Radio Newspapers Print Broadcast Promotional products Cinema Magazines Product placement and computer games Media choices Out-of-home Branded entertainment Advantages and imitations Media buying Audience measurement Future trends Digital impact Social media

8. 90% of TV households own VCR 68% of TVs are digital Approx 13.5 million people watch TV on any given day The average Australian watches approx 3 hours of TV per day Television penetration and reach

9. Coverage and cost effectiveness Captivity and attention Selectivity and flexibility Television advantages Creativity and impact 11-9

10. Fleeting message Cost Limited attention Low selectivity Zipping Clutter Zapping Negative evaluation Distrust Television disadvantages Negative factors

11. Top 10 network TV advertisers:Australia 2009

12. Top 10 TV advertisers, New Zealand 2009 Source: Nielsen Media Research, New Zealand, AIS Data, 2009

13. Foxtel advertising

14. Television formats: Australia Public broadcasters Metropolitan: (FTA) TV formats Regional: (FTA) Community TV Subscription: (STV) Digital transmission

15. Television formats: New Zealand Public broadcaster (TVNZ) Private networks TV formats Pay television Maori TV Regional and niche broadcasters 11-15

16. Local: Commercials shown on local stations National: Spots purchased across major networks Sponsor entire program Spot announcements between programs Buying TV advertising time Spot buying Sponsor-ship

17. TV dayparts 11-17

18. Subscription TV: national report

19. Share of audience HH (or PPL) tuned to show Share = HH (or PPL) using TV Measuring the TV audience: key measures Program rating HH (or PPL) tuned to show Rating = Total HH (or PPL)

20. Measuring the TV audience: key measures (cont.) Target audience ratings points (TARPs) Number of PPL in a target audience reached by a media buy x 100 TARP = Potential target audience for media buy

21. Subscription Continued growth of subscription TV Digital Superior viewing experience and increased variety of promotional opportunities and audience engagement PVRs/VOD Infomercials Personal video recorders enable recording and storing of TV programs for subsequent viewing Interactive TV allows audiences to interact with program in real time via phone or internet connections The future of TV: new delivery modes

22. 261 Australian radio stations (110 AM + 151 FM) 37 million radios in use 89% of households have 3+ radios, and 99 % of cars have a radio Radio reaches 61% of all Australians each day and 77% every week Commercial breakfast radio attracts audiences of over 6.6 million p.w. Radio penetration and reach

23. Radio advertising

24. Advantages and limitations of radio Advantages Disadvantages Creative limitations Cost and efficiency Audience fragmentation Selectivity Chaotic buying Flexibility Limited research data Mental imagery Limited listener attention Integrated marketing opportunities Clutter

25. Commercial Radio Australia

26. Radio survey: Sydney 2010

27. Radio survey: Melbourne 2010

28. Three national networks • (Austereo, Australian Radio Network and • DMG) • Over 217 regional networks • The majority of radio advertisers • are local Buying radio time Network radio Local radio

29. Radio dayparts

30. TV Radio Newspapers Print Broadcast Promotional products Cinema Magazines Product placement and computer games Media choices Out-of-home Branded entertainment Advantages and imitations Media buying Audience measurement Future trends Digital impact Social media

31. 230 million+ magazines are purchased annually (13 mags for every person aged 14+). 8 in 10 people read 1+ magazines (84% of females & 76% of males). Combined reach of the top 5 magazines is 53% of all females aged 14+. Growth in digital magazine advertising expected as consumers adopt tablets. Magazines: penetration and reach Source: Magazine Publishers Association of Australia

32. By audience By delivery • Consumer magazines • Business magazines • Custom magazines • Newspaper inserted magazines • Street press Classifications of magazines

33. Business magazines

34. Custom magazines

35. Advantages and disadvantages of magazines Advantages Disadvantages Selectivity Costs Reproduction quality Limited reach Creative flexibility Limited frequency Permanence Long lead time Prestige Receptivity & involvement Clutter Services

36. High reach consumer magazines: Australia 2010 11-36

37. High reach consumer magazines: New Zealand 2010

38. Creative flexibility with magazines

39. Receptivity and involvement

40. Primary circulation Circulation Readership Controlled circulation Circulation audit Pass-along readership Magazine circulation and readership

41. Full page (PF) Half page, quarter page Mono (black ink on stock paper) Casual insertion Spot colour (black plus one other colour) Contract rates Four colour Magazine networks Inserts, gatefolds, tip-ons, cover mounts, etc. Purchasing magazine advertising space Size Colour Purchase frequency & volume Inserts & other 11-41

42. Declining ad revenues Stronger editorial platforms Circulation management Cross-magazine and media deals Magazine trends Database marketing Advances in technology Online delivery methods The future of magazines

43. Magazines and technology

44. Australians spent approx $1.3 billion buying newspapers in 2010 In Melbourne, the two daily papers enjoy a reach 72% p.w. In Sydney, the two dailies reach 61% p.w. One million Australians have downloaded newspaper branded apps. Growth in digital newspaper advertising expected as consumers adopt tablets. Newspapers: penetration and reach Source: Newspaper Publishers Association of Australia

45. Daily Publication frequency Weekly National Coverage Regional Community Size Broadsheet Tabloid Audience General news, business/ finance Specialist: e.g. agricultural Newspaper types 11-45

46. Page advertising By negotiation Newspaper advertising Size and position Column centimetre (SCC) Run of paper (ROP) Preferred positions Volume Combination rates Contract rates Casual rates Inserts, tip-ons, etc.

47. Flexibility Geographic selectivity Reader involvement and acceptance Unique newspaper features Extensive penetration

48. Flexibility

49. Creative placement

50. Competition from other media Circulation Digital news & fee for service Attracting and retaining readers The future for newspapers Challenges for newspaper publishers