PRO - Types of Advertising and Costs [LESSON]

Types of Advertising and Costs

Review the following statements. Consider how each statement relates to your own personal choices:

  • Print Media: Newspaper, Magazine, Direct Mail - coupons, menus delivered by mail, Outdoor Advertising - billboards, skywriting, blimps, Directories - phone books like the yellow pages, Transit - bus, subway, and train
  • Broadcast Media: Radio, Television, Internet
  • Social Media: Social Networks (Facebook & LinkedIn), Bookmarking Sites (Pinterest, Instapaper), Social News (Reddit), Media Sharing (YouTube & Instagram), Microblogging (Twitter), Blog Comment and Forums (Wix, LinkedIn, Blogger)

Media Cost

Newspaper Run-of-Paper Rate: Allows the newspaper to decide where to run the ad in the paper. Open Rate: Rate charged to businesses that advertise infrequently. Contract Rate: Discounted rate offered to business that advertise more frequently and for a specified period of time. Full Run – An ad disseminated to the entire audience the newspaper serves. Magazine Premium Position: Rates determined as to where the ad is placed in the magazine. Frequency Discounts: Offered to advertisers who run the same ad several times during the year. Radio Network Radio Advertising: Broadcast from a studio to all affiliated radio stations. National Spot Radio Advertising: Used by national firms to advertise on a local station-by-station basis. Local Radio Advertising: Used by local business for its target market. Television Vary with time of day. The most expensive is prime time 7 to 11pm.

 

CPM

Cost per thousand, or cost to expose 1000 readers to the ad.

CPM equals Cost of Ad times 1000 divided by circulation (View the video "What is CPM" under more resources for more information.)

Newspapers are measured by standard column inches - each page being 6 columns by 22 inches or 132 column inches total. Advertisers must use a rate chart to determine how much the ad will cost.

PCI - Per Column Inch

Newspapers use PCI to determine the size of the ad and how much to charge.

For example if you had an ad that was 5 inches by 2 inches, that would be 10 column inches (5*2=10). If you had contracted with the Atlanta Journal Constitution that you would spend $10,000 this year it would cost you $2000 to run your ad on a Monday. ($200 PCI * 10 = $2000). See the rate chart below.

Full Run (ROP) Rates PCI

The rates below are Per Column Inch (PCI) and apply to full run display advertising.

Annual Spending

Level includes

All AJC Products

 Mon-Wed Thurs-Sat Sunday
Open Rate $260 $281 $379
$4,000 $208 $225 $304
$10,000 $200 $217 $292
$25,000 $195 $211 $285
$50,000 $187 $203 $273
$100,000 $179 $197 $266
$125,000 $172 $191 $258
$150,000 $164 $183 $247
$200,000 $156 $174 $235
$300,000 $143 $166 $224
$400,000+ $130 $155 $209

 

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