Page 212 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management

Notes 4. Clutter: Like most other media, newspapers also suffer from advertising clutter. An average
newspaper contains many advertisements that compete for consumers' attention and
interest. Because of colour reproduction limitations, almost all the advertisements are in
black and white and it is often difficult for a newspaper advertiser to break through this
clutter.
Purchasing Newspaper Space

Newspapers do an excellent job of reaching a very large number of households in a market area.
The media planner must understand the size and nature of the audience reached by a newspaper
in evaluating its suitability for a particular campaign. Circulation figures alone help assess the
value of newspapers and their ability to cover various market areas. But the media planner is
also interested in matching the characteristics of a particular newspaper's readers with the
profile of the potential customers of the advertiser's product or service.
Depending on the newspaper's image and circulation figures, space rates vary. Generally, the
rates of national dailies are higher than local newspapers. Newspaper advertisers have three
basic ad space rate options:

1. Open rates
2. Contract rates, and
3. Flat rates
Among all the three rates, Open rates are the highest quoted for national advertisers and are
applicable only for a single insertion. Contract rates are lower than open rates and are offered to
advertisers who plan to run a series of advertisements in a particular newspaper over a period
of time, which is usually one year. For some reason, if the advertiser or the advertising agency
entering such a contract fails to meet the schedule of ads, the newspaper charges the higher open
rates for the used ad space instead of the contracted rates. The Flat rates of newspaper space refer
to a standard advertising rate, where no discounts are offered for large-quantity or repeated
space buys.
The basic rates of newspaper space are quoted as run of paper (ROP) rates. ROP means the paper
can place the advertisement on any page or in any position it likes. Newspaper space rates may
vary with an advertiser's request for preferred position or colour. Most newspapers try to place
an ad as requested by the advertiser, but to ensure that the ad is placed in a specific section and/
or position on a page the advertiser has to pay a higher preferred position rate. Likewise, the
rates for colour advertising are much higher which is available on a ROP basis with many
national and regional/local newspapers.

Notes The code of standards prescribed by Indian Newspaper Society (INS) for all
members is:
1. Society members shall not favour direct advertisers by giving them better facilities,
such as lower rates, longer credit periods, preferential positions, commission,
discounts, etc.
2. Agencies not accredited, or a canvasser, shall not be allowed a commission of more
than 10%.

Contd...

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