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422<br />

Part Five Developing the Integrated Marketing Communications Program<br />

Belch: Advertising and<br />

Promotion, Sixth Edition<br />

V. Developing the<br />

Integrated Marketing<br />

Communications Program<br />

12. Evaluation of Print<br />

Media<br />

© The McGraw−Hill<br />

Companies, 2003<br />

National advertisers often buy newspaper space on the basis of the size of the market<br />

area they cover. For example, General Motors might decide to purchase advertising<br />

in the top 10 markets, the top 50 markets, the top 100 markets, and so on. A<br />

national advertiser gets different levels of market coverage depending on the number<br />

of market areas purchased.<br />

Audience Information Circulation figures provide the media planner with the<br />

basic data for assessing the value of newspapers and their ability to cover various market<br />

areas. However, the media planner also wants to match the characteristics of a<br />

newspaper’s readers with those of the advertiser’s target audience. Data on newspaper<br />

audience size and characteristics are available from studies conducted by the papers as<br />

well as from commercial research services. As for magazines, a very valuable source<br />

for information on newspapers is the Standard Rate and Data Service (SRDS), whose<br />

print and online service provides complete planning information on daily papers,<br />

newspaper groups, ethnic newspapers, college newspapers, comics, and newspaperdistributed<br />

magazines. The SRDS data contain standardized ad rates, circulation figures,<br />

dates, general requirements, contact information, and other valuable information<br />

for media.<br />

Companies such as Simmons Market Research Bureau and Mediamark Research<br />

Inc. provide syndicated research studies on lifestyles, media behavior, and product/<br />

brand preferences that include information on newspapers. These studies can be valuable<br />

for comparing newspapers with other media vehicles.<br />

Many newspapers commission their own audience studies to provide current and<br />

potential advertisers with information on readership and characteristics of readers<br />

such as demographics, shopping habits, and lifestyles. These studies are often<br />

designed to promote the effectiveness of the newspaper in reaching various types of<br />

consumers. Since they are sponsored by the paper itself, many advertisers are skeptical<br />

of their results. Careful attention must be given to the research methods used and<br />

conclusions drawn by these studies.<br />

Purchasing Newspaper Space<br />

Advertisers are faced with a number of options and pricing structures when purchasing<br />

newspaper space. The cost of advertising space depends not only on the newspaper’s<br />

circulation but also on factors such as premium charges for color or special<br />

sections as well as discounts available. The purchase process and the rates paid for<br />

newspaper space differ for general and local advertisers.<br />

General versus Local Rates Newspapers have different rate structures for<br />

general or national advertisers and local or retail advertisers. General advertising<br />

rates apply to display advertisers outside the newspaper’s designated market area<br />

(DMA) and to any classification deemed by the publisher to be “general” in nature.<br />

This includes ads run by national advertisers such as automotive, tobacco, packagedgoods,<br />

and pharmaceutical companies. Retail or local advertising rates apply to<br />

advertisers that conduct business or sell goods or services within the DMA. The rates<br />

paid by general advertisers are, on average, 75 percent higher than those paid by local<br />

advertisers. Newspaper publishers claim the rate differential is justified for several<br />

reasons. First, they argue it costs more to handle general advertising since ad agencies<br />

get a 15 percent commission and commissions must also be paid to the independent<br />

sales reps who solicit nonlocal advertising. Second, they note that general advertising<br />

is less dependable than local advertising; general advertisers usually don’t use newspapers<br />

on a continual basis like local advertisers do. Finally, newspaper publishers<br />

contend that demand for general advertising is inelastic—it will not increase if rates<br />

are lowered or decrease if rates are raised. This means there is no incentive to lower<br />

the national advertisers’ rates.<br />

National advertisers do not view these arguments as valid justification for the rate<br />

differential. They argue that the costs are not greater for handling national advertising<br />

than for local business and that many national advertisers use newspapers on a regular<br />

basis. Since they use an agency to prepare their ads, national advertisers are less

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