The Profitability of Advertising on Media - Essay Example

Advertising on media The costs of putting an advertisement on TV usually vary widely depending on the station used and the time of the day when the advert is aired. It can also depend on the length of an advert in terms of time. If a company decided to have their advert aired on ESPN during the program “Monday Night Football,” then they will have to consider paying $408,000. This payment is under the condition that the advert will be aired for a period of 30 seconds. “Monday Night Football,” is usually aired live at 8:30 PM every Monday evening.

This is a time when most people have the chance of watching TV. Furthermore, the fact that it discusses sports details and news for sports that are popular in the US makes the program highly watched. This is the reason why the station charges highly for adverts during this program (Anderson, et al 324). Businesses are sure of reaching out to a high percentage of consumers in the US.Putting an advert on radio will also depend on the radio station used, time, and the length of the advert. For WHOU FM the prices of putting a 30 seconds advert during the morning hours is 50$ per advert.

The price is relatively highly due to the fact that most people in the US usually listen to the radio during the morning hours as they drive or ride to their places of work. Therefore, a company is likely to get more audience during this period of time as opposed to other periods during the day such as mid morning and afternoon (Katz 123). However, it should be noted that the rates get high again during the evening because his is the time when people are riding back to their homes, thus getting a chance of listening to the radio again.

Prices of magazines depend on whether on is using a national magazine or local ones. The type of readers also affects the pricing. For a company to put an advert on VOGUE, they will have to pay $250,000 if they want a full-page advert. The price is high because of the fact that VOGUE is a national magazine. Furthermore, VOGUE is a women’s fashion magazine meaning that many women are likely to read it. However, the type of product or service being advertised will highly determine whether advertising on this magazine will be worth the cost.

This is because this magazine will only be read by women who are interested in knowing what things are happening in the world of fashion (Peitz and Valletti 952). An automobile advert might be out of place for this magazine because women are often less interested in matters relating to automobiles and automobile parts.Social media adverts are considered to be more cost effective in the modern days. This is due to the fact that most people use social media while it does not cost much to have them.

One can consider putting banner adverts on LinkedIn. Banner adverts on LinkedIn will only cost a company $25000 for a whole campaign. Given the fact that many professionals use LinkedIn in the modern society, it would be said that this would be an effective way through which a business organization can be able to reach out to their customers without spending much (Bergemann and Bonatti 422).Work citedAnderson, Simon P., et al. "Media market concentration, advertising levels, and ad prices." International Journal of Industrial Organization 30.3 (2012): 321-325.

Bergemann, Dirk, and Alessandro Bonatti. "Targeting in advertising markets: implications for offline versus online media." The RAND Journal of Economics 42.3 (2011): 417-443.Katz, Helen. The media handbook: A complete guide to advertising media selection, planning, research, and buying. Routledge, 2014.Peitz, Martin, and Tommaso M. Valletti. "Content and advertising in the media: Pay-tv versus free-to-air." International Journal of Industrial Organization 26.4 (2008): 949-965.