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Final

BUS-3230 Study Guide - Final Guide: List Of Magazines By Circulation, Classified Advertising, Display Advertising


Department
BUSINESS AND ADMINISTRATION
Course Code
BUS-3230
Professor
Grant Wainikka
Study Guide
Final

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Advertising Final Exam Review:
Chapters 1-7 are on the Mid-Term review!
Chapter 8: Print Media: Newspapers and Magazines:
Newspapers in Canada:
-134 daily newspapers with an average daily circulation (number of issues sold) of 6.4 million copies .
-1100 community newspapers (generally smaller-circulation) published once a week and directed at a
local audience. Toronto Star largest in Canada.
-Newspapers rank second to TV in Canada, controlling 15% of the net advertising revenues.
-Demographic profile of community newspaper closely matches that of the entire population.
Newspaper Formats:
Canadian newspapers are published in two formats:
-Tabloids - Sold flat with only a vertical centerfold (e.g., Toronto Sun, Vancouver Province)
-Broadsheets - Larger and folded horizontally once (e.g., Globe and Mail, Vancouver Sun)
Newspaper Readership:
NADbank Inc. (industry sponsored measurement organization) updates data annually by conducting a
detailed survey among Canadian adults.
-Newspaper reach 51% of Canadian adults, and increases marginally on weekends
-Readership increases as person’s level of income and education increases (not region and age)
-Migration to online editions of newspaper
Types of Newspaper Advertising:
There are two broad forms of advertising: display (ads appearing anywhere but in the classifieds), and
classified advertising. Display advertising includes general, or national, advertising (ads for
products and services sold nationally), and retail advertising (all forms of retail advertising sold
locally). General or National advertising usually contains a hooker or tag which identifies local retailers
where the product can be purchased (bottom of ad). Classified - one of the most read sections of a
newspaper. (buy, sell, rent, obtain, etc.). Newspapers also generate revenues through the distribution
of preprinted inserts (supplements or free-standing inserts). Advertising accounts for roughly 60% of
newspaper space.
Newspapers as an Advertising Medium:
Advantages for Newspapers include:
-Newspapers are an excellent medium for large advertisers using a key market media strategy.
Geographic Selectivity - market-by-market placement for national advertisers based on priority of
market
Local Market Coverage - effective reach of broad cross-section of adult population
Engagement – people devote a considerable amount of time reading the newspaper and tend to
consume it more carefully than other media such as radio or TV.
Flexibility - size options and flex form advertising available. Also, placement can occur on short
notice.
Creative and Merchandising Considerations – advertisers can present message that include long
copy or factual information. Also newspaper offer merchandise tie-in opportunities, such as
cooperative advertising with local distributors or ads containing coupons or other promotional

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incentives geared toward trial purchase or building loyalty,
Editorial Support – ad can be placed in specific portions in the newspaper (for a cost). (e.g., luxury
automobile in business section for business executives)
Suitability for Small Advertisers – newspapers offer high reach and flexibility at relatively low cost
compare to other media. Newspapers offer creative services for companies that lack advertising
expertise within their organization.
Disadvantages for Newspapers include:
-Creatively speaking, newspapers are a black and white medium so the ability of any ad to really stand
out from the clutter is a challenge.
Short Lifespan – a newspaper is around for only one day or less, so the likelihood for an
advertisement to receive exposure is drastically reduced if the newspaper is not read on the day of
distribution.
Lack of Target-Market Orientation – newspaper in general reach a very broad cross section of the
population. Advertisers using a shotgun approach (mass reach), newspaper serve a purpose.
Advertisers wishing to reach a target market that is upscale in terms of income, occupation, or
education must recognize that newspaper advertising will reach many who are not in the target
market, resulting in a wasteful spending of an advertising budget.
Clutter – is the extent to which a publication’s pages are fragmented into small blocks of advertising
and/or editorial. Generally 60% of a newspapers space is devoted to advertising. Making a ad stand
out and make an impression on the reader is a challenging creative task.
Poor Reproduction Quality – with respect to print quality, newspapers compare poorly to
magazines.
High Costs – high cost of newspaper advertising is a problem faced by national advertisers. E.g.,
running a full page black and white ad in six key markets is (1 MM-plus population) involves 23 daily
newspapers. The cost of the space would be $360 200, and $418 900 in colour).
Buying Newspaper Space:
Determining Ad Space (Modular Agate Lines):
-For Agate lines and Modular Agate Lines (MAL) explanations see pg.'s 249-250.
Rate Schedules (ex.s on pg.'s-251-253):
-Line rates are the advertising rates charged by newspapers for one agate line or one modular
agate line. Line rates vary depending on the section of the newspaper
-Rates charged by line go down as the volume of the lineage increase over a specific period
-Costs for additional colour and preferred position are quoted separately
-Other factors that influence costs include the number of insertions or estimates of volume
lineage over time (earns a better line rate), creative considerations such as the use of colour,
and position charges. These factors increase the cost of advertising.
-Newspaper advertising rates are published in a rate schedule. The schedule publishes a
maximum line rate and usually includes a discount line rate grid based on lineage purchased
over time (usually one year). Costs for colour, preferred positions, and other special requests
are quoted separately. Some key terms on a newspaper rate card include:
-Casual rate (transient rate): one-time rate or base rate that applies to casual
advertisers.
Additional Advertising Charges:
Position Charges - Higher line rates are charged when an advertiser requests a particular
position (e.g., a certain section, above the fold). The cost is usually quoted as a percentage addition to

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the line rate. Requesting a certain position adds to the cost of advertising (e.g., near the front of the
paper or in a specific section of the paper).
Colour Charges - There are additional costs for each additional colour. Significant increases in
costs occur when colour is added. Four colour is very expensive and there are minimum size
requirements for 4-colour ads.
Multiple Page Charges - Double-page spreads or additional pages are quoted at discounted
rates. Reduced line rates applied based on # of pages purchased.
Preprinted Inserts - Usually quoted on a cost-per-thousand basis with rates increasing with
the size or weight of the insert. Advertisers pay a distribution fee on a cost-per-thousand basis to insert
flyers into a newspaper.
Split Runs - A split run occurs when an advertiser uses the entire circulation of a newspaper
but has different material (ads) running in two or more regions. It is a method for testing the
effectiveness of various advertisements that are under consideration. Using one-half of a newspapers
circulation to run different ads.
Insertion Order - Advertisers use an insertion order when purchasing newspaper space. An
insertion order is a document that specifies the size of the ad, dates of insertion, use of colours,
position requests, and the line rate to be charged. To verify that an ad has run as scheduled, a tear
sheet (an actual ad extracted from the paper) is provided to the advertiser. Should there be any
problems with the ad (e.g., poor reproduction quality), an advertiser might request a make good (a
rerun of the ad at no cost to the advertiser).
Comparing Newspaper Efficiency - In larger metropolitan markets where several newspapers
compete for advertising revenue, advertisers must decide on which paper(s) to place advertising with.
Since circulation and costs vary from one paper to another, the advertisers compare alternatives based
on the cost of reaching one thousand readers. The expression is referred to as cost per thousand
(CPM) . The formula for the calculation is:
Cost
CPM = ______________
Circulation (000)
Other factors that influence the selection decision are the readership profile (demographic and
psychographic profile of readers), and the editorial content of the publication. The Globe and Mail , for
example, has a high CPM compared to other Toronto dailies but it reaches an upper income target
(professionals, business managers, etc.). That makes it an attractive vehicle for advertising purposes.
When deciding on which newspapers to advertise in (e.g., in markets where there is more than one
newspaper), each paper is compared for efficiency. Cost and circulation are used as the basis for
comparison.
Magazines in Canada:
There are over 1700 magazines published in Canada, 800 of which are categorized as consumer
magazines. Magazines are classified several ways:
Content and Audience Reached - Consumer versus business magazines. Both publish general-interest
and special-interest publications. Business magazines are further subdivided as vertical or horizontal
publications. Vertical publications appeal to all levels of people in the same industry. Horizontal
publications appeal to people that occupy the same level of responsibility in a business.
Circulation Base (Distribution) - Paid circulation which includes subscriptions and newsstand sales or
by controlled circulation (free distribution to selected targets).
Frequency of Publication - Weekly, monthly, bi-monthly, etc. Maclean’s is a weekly while Chatelaine
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