09 MediaPlanning_Newspaper__reuploaded

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Newspaper	Advertising
Newspaper	classifications
¡ Size/two	basic	newspaper	formats
¡ Broadsheets	
¡ Most	common	newspaper	format
¡ Standard	size:	6 columns	wide	and	21.5 inches	deep
¡ Ex.	NY	Times,	The	Wall	Street	Journal
¡ Tabloids	
¡ 11 inches	wide	and	14 inches	deep
¡ Ex.	National	Enquirer,	The	Star,	NY	daily	News,	NY	Post
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Newspaper	classifications	(cont’d)
¡ Frequency of	delivery
¡ Daily
¡ Weekly
¡ Sunday
¡ Circulation
¡ Paid	circulation
¡ Controlled	circulation
Types	of	Newspaper	Advertising
¡ Display advertising
¡ Uses	headlines,	white	space,	illustrations,	etc.,	in	addition	to	
body	copy
¡ Varies	in
¡ Includes	general/national	advertising	and	retail	advertising
¡ Throughout	the	newspaper	except	the	editorial page	and	the	
first page	of	major	sections
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Types	of	Newspaper	Advertising	
(cont’d)
¡ Classified advertising
¡ Appear	in	distinct	section	so	labeled
¡ Traditional	text-only,	limited	selection	of	type	faces
¡ Major	types:	automobile,	real	estates,	employment
¡ Inserts
¡ Free-standing	inserts	(FSI):	preprinted	ad	inserted	in	the	
newspaper	that	typically	contains	coupons	(e.g.,	grocery	ads)
Buying	Newspaper	Space
¡ 1)	Run-of-press	(ROP):	
¡ When	ad	placed	anywhere	in	the	paper	at	publishers’	discretion
¡ 2)	Preferred	position:	
¡ when	ad	placed	in	pre-selected	section	of	newspaper
¡ 3)	Full	position:	
¡ Preferred	position	near	the	top	of	page/in	middle	of	editorial	
material
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Coverage
¡ Coverage	(market	coverage):	
¡ So	if	Circulation	=	500,000	and	HHs	=	2MM,	then	coverage?
Coverage	(%) = #	of	HHs	in	circulation	area
(i.e.,	universe)
× 100__________________________
Circulation
¡ SRDS	(Standard	Rate	&	Data	Service) provides	newspapers	
current	circulations.	
¡ Alliance	for	Audited	Media	(AAM)	verifies actual	circulation.
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Rate	Structure
¡ Ads	are	measured	and	sold	based	on	size	of	the	space
(i.e.,	“the	column	inch”).
¡ SAU	(Standard	Advertising	Unit)	system	in	1984
¡ SAU	system	standardized the	newspaper	column	width
¡One	column	inch is	1	column	wide	by	1	inch	deep
Newspaper	Costing	System
Page	is	21	
½” deep
Six	Columns	Wide
1.	Ads	are	bought	by	“the	column	inch”
2.	Each	column	is	2	1/16th inches	wide
à An	SAU	column	inch	is	2	and	1/16	
inches	wide	by	1	inch	deep
3.	5	column	x	8	inches	=	
4.	Total	col.	Inches	=
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Rate	Structure
¡ Flat	rate
¡ Many	national	newspapers	charge	flat rates,	allow	no	
discounts
¡Open	ra
¡ Some	newspapers	that	offer	volume	discounts have	open	
rate	which	is	the	highest	rate	the	newspapers	charge	for	
one-time	insertion
Rate	Structure
(Factors	that	increase	Rates)
¡ Position charge
¡ A	request	for	a	specific	location	(special	section,	page,	etc.).
¡ Color charge
¡ Based	on	black	and	white	rate	with	an	extra	charge for	each	
additional	color
¡ Additional	color	produces	higher	total	awareness	compared	to	
b/w.	
¡ Costs	for	additional	color	and	preferred	position	are	
quoted	separately.
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Ex.	Problem	1.
No.	of	col. inches Ad	rate	per	col.	inch
0-35,000 $2.00
35,001-70,000 $1.90
70,001-100,000 $1.75
100,001-150,000 $1.65
More	than	150,000 $1.50
¡ If	a	retail	advertiser	had	purchased	68,000	col.	inches	of	
adverting	space	during	the	past	year.	How	much	did	the	
retailer	pay?
Ex.	Problem	2.
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¡ Estimate	the	cost	of	a	3-col.	By	8-inch	newspaper	
advertisement	in	the	Chicago	Tribune	in	both	the	daily	and	
the	Sunday	editions.	
¡ Estimate	the	cost	of	10	insertions	in	the	Columbus	Dispatch	
in	the	daily	edition	if	each	advertisement	is	13	inches	high	
by	4	columns	wide.	
Ex.	Problem	2.
Ex.	Problem	2.
¡ Estimate	the	cost	for	a	year	of	a	weekly	full-page	b/w	
insertion	in	the	Sunday	editions	of	the	Charlotte	Observer?
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Comparing	Newspapers
CPM = Cost	per	ad
Circulation
× 1000_____________
¡ Cost	and	circulation	are	used	to	determine	efficiency.
¡ SRDS publishes	newspaper	rates	and	circulation	data.
Advantages	of	newspaper	ads	
(compared	to	other	advertising	media)
¡ Credibility
¡ Short lead	time
¡ Timeliness	(i.e.,	sense	of	immediacy)
¡ Geographic selectivity
¡ Detailed	copy
¡ Low	production	cost	(compared	to	TV	commercials	or	
magazine	ads)
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Disadvantages	of	newspaper	ads
¡ Readership	declining,	especially	among	younger people
¡ Short	life	span
¡ Small	pass-along	audience
¡ Poor	reproduction quality
¡ Often	lack	color	ability
¡ Limited	ability	to	target	demographically
SRDS
¡ The	best	media	cost	information	source	
¡ Especially	for	print	media
¡ Discounts,	closing	deadlines,	color	availability	and	costs
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SRDS	(cont’d)
¡ Vehicle	Specific	Information	including:
¡ Vehicle	Circulation
¡ Page	and	Ad	unit	sizes		(e.g.,	full-page.	2/3,	1/2,	1/3,	1/4,	etc.)
¡ Rates	[unit	price	or	cost	per	unit]
¡ Black/White	Rates,	Color	Rates
¡ Discounts
¡ Copy	deadlines	or	closing	date
¡ Sales	Info:	names	of	media	sales	person;	address;	phone	numbers
Newspaper	Cost	Calculation
¡ 1.	Calculate	“the	column	inches ”
¡ 2.	Find	out	“cost-per-column	inch”	from	SRDS
¡ Color	rate:	‘Surcharge”	per	ad	(in	addition	to	B/W	rates)
Cost	per	ad	=	(Cost-per-col.	inch)	× (size	of	one	ad	in	col.	inch)
Total	cost	=	(Cost-per-col.	inch)	× (Total	column	inches	you	are	
purchasing)
Or	Total	cost	=	Cost	per	ad	× #	of	insertions