Marketing



World Wide Business Services

Management

 

Technical White Paper

by Cris Alarcon, Priciple, WWBS and owner of the Placerville Newswire.

 

Online Advertising - The Brave New World

September 2015



Abstract

 

This white paper talks about the current state of advertising. It offers a detailed presentation of the options for small business advertisers and major trends in advertising media that are changing the playing field in advertising along with an overview of the trends and direction of best practices for small business advertisers.

 

If you are looking for highly educated and affluent customers, look at this white paper.  

    If you are looking for Value shoppers, we recommend the Windfall Weekly paper.




Basics of Advertising

 

Sell More

Famous ad man David Ogilvy once said astutely, "I do not regard advertising as entertainment or an art form, but as a medium of information." Whatever else advertising is trying to do, whether with words or pictures, its purpose always is to impart information.

 

The primary use of advertising is related to soliciting, or encouraging consumers to purchase the goods and services of a company or organization. Advertising can be found in the form of print advertisements in newspapers and magazines, billboards, telephone directories, fliers, and mailers, or in electronic media such as the Internet, radio, and television. This type of advertising typically promotes a particular product or service, introduces a new offering, or promotes a sale or upcoming event.

The Importance of a Target Audience of Consumers

Identifying a target audience of consumers is among the most crucial elements for a new business operator to consider. Without knowing your target market, or whether an audience even exists, you can't realistically expect your business venture to survive. Learning to distinguish between different audiences makes it easier to determine what segments of consumers truly support your business and whether they have potential to become customers.



One of the first things I always ask anyone starting a new business is, "Who or what is your perfect customer or client?"  If they can't answer that I have them go figure it out before we go any further.

 

In marketing if you have no target, sit down and look at what you are offering and look around at who you think would be perfect for your product or service.  You need to know exactly (or as exact as you can possibly make it) who your customers are.  It's called demographics.

 

Geographic, demographic, and psychographic are the three main ways you can find your target market.

 

Once you know who it is you're going after then you can begin to design a plan around how you will market to them so they can see you, begin to learn who you are, and get to liking you so they come and buy from you.



The consumer market pertains to buyers who purchase goods and services for consumption rather than resale. However, not all consumers are alike in their tastes, preferences and buying habits due to different characteristics that can distinguish certain consumers from others. These particular consumer characteristics include various demographic, psychographic, behavioralism and geographic traits. Marketers usually define these consumer characteristics through market segmentation, the process of separating and identifying key customer groups.

 

Market Segmentation

Market segmentation is the identification of portions of the market that are different from one another.

Mass marketing refers to treatment of the market as a homogenous group and offering the same marketing mix to all customers.

Target marketing on the other hand recognizes the diversity of customers and does not try to please all of them with the same offering. The first step in target marketing is to identify different market segments.

Bases for Segmentation in Consumer Markets

Consumer markets can be segmented on the following customer characteristics.

  • Geographic: Region; Size of metropolitan area; Population density; Climate.

  • Demographic-includes: Age; Gender; Family size; Family life cycle (DINKS-Double Income, No Kids, full-nest, empty-nest); Generation; Income; Occupation; Education; Ethnicity; Nationality; Religion; Social class.

  • Psychographic -  groups customers according to their lifestyle: Activities; Interests; Opinions; Attitudes; Values.

  • Behavioristic - actual customer behavior toward products: Benefits sought; Usage rate; Brand loyalty; User status [potential, first-time, regular, etc.]; Readiness to buy; Occasions [holidays and events that stimulate purchases]

Here is a sample of one segmentation chart:

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CohortPercentPopGrowth2020v2012.jpg

 

More than half of American adults say they follow the news “all or most of the time,” and another quarter (25%) follow the news at least “some of the time.”  Asked specifically about their news habits on “a typical day,” the results are striking: 99% of American adults say that on a typical day, they get news from at least one of these media platforms: a local or national print newspaper, a local or national television news broadcast, radio, or the internet.

The internet has surpassed newspapers and radio in popularity as a news platform on a typical day and now ranks just behind TV.

 

Demographics of News Audiences

 

Age:  In general, the regular audiences for most television and print news outlets tend to be older than the public as a whole. Yet there are some notable exceptions. As was the case two years ago, The Colbert Report and The Daily Show have the youngest audiences of the 24 news sources tested.  Regular readers of the New York Times also tend to be younger than average. Nearly a third (32%) of regular Times readers – are younger than 30.  In contrast, political talk shows, particularly conservative talk programs, have older audiences. Liberal talk show audiences also skew older, but not as dramatically.

 

Gender: Men dominate the regular audiences of the financial publications included in the survey: 73% of the regular readers of the Economist and Bloomberg Businessweek are men as are 71% of regular Wall Street Journal readers.  Men also comprise smaller majorities of the regular audiences for several other news outlets, including Rush Limbaugh listeners (59%), viewers of Colbert (58%) and the Daily Show (56%), as well as regular viewers of Hannity (57%) and O’Reilly (56%).  In contrast, women make up nearly three-quarters (73%) of the regular audience for daytime talk shows, such as The View or the Ellen DeGeneres Show.  The regular viewers of MSNBC also are mostly women (62%). By comparison, the regular audiences for both CNN and Fox News are more evenly divided between women and men.

 

Education: Many regular news audiences have more education than the general public. And in general, regular readers of newspapers and magazines are more educated than the audiences of television shows or networks. Nearly two-thirds (64%) of the regular readers of magazines such as the New Yorker, the Atlantic and Harper's are college graduates, as are 63% of readers of the Economist and Bloomberg Businessweek. More than half of the regular readers of the Wall Street Journal (56%), New York Times (56%) and news magazines (53%) also are college graduates. Regular viewers of daytime talk shows are less educated than the public as a whole.

 

Income: There is a similar pattern when it comes to the family incomes of regular news audiences. At least four-in-ten regular readers of magazines such as the Economist (46%) or the New Yorker (41%), as well as regular NPR listeners (43%), have family incomes of $75,000 or more. Among the public, just 26% have family incomes of $75,000 or more.  Other high earners include readers of the Wall Street Journal and New York Times—38% of each group has a family income of at least $75,000—and Daily Show and Maddow viewers (37% each).

 

Fully 98 percent of Americans with incomes greater than $100,000 per year report watching, reading, or hearing the news on a daily basis or several times per week, compared to 93 percent of Americans who have incomes between $50,000 and $100,000, and 87 percent of Americans who have incomes of less than $50,000.



Social and demographic differences in news habits and attitudes

 

Young people are active news consumers, with particular attentiveness to breaking news

 

The survey data provide a broad challenge to the notion that younger adults in the digital age are uninterested or are turning away from news about the world. Across a range of metrics—frequency, enjoyment, variety of topic interests, and more—younger adults are high news consumers. But there are some important differences by age.

 

Americans age 60 and over are somewhat more likely than the youngest adults, age 18-29, to say they enjoy keeping up with the news, although significant majorities of both groups do so (93 percent for those age 60 plus vs. 83 percent for those age 18-29). It follows then, that older Americans watch, read, or hear the news more often than the youngest cohort. Adults age 18-29 (59 percent) are significantly less likely than adults age 30-39 (75 percent), 40-59 (77 percent), and 60 and older (89 percent) to say they consume news at least once a day. But again, for majorities across all age groups, news consumption is a daily habit.

 

Older adults are also more likely to report reading, watching, or hearing a news story in-depth in the last week. Fully 54 percent of adults age 60 and over said they’d done so compared to just 1 in 4 young people 18-29, a third of adults 30-39, and 43 percent of those 40-59.

 

But while younger people may be slightly less attentive to news on a daily basis, they are more attentive to breaking news. Indeed, the youngest adults are more than twice as likely (55 percent) to follow up in-depth on breaking news as they are to report going in-depth in the last week on any news story (25 percent). Adults age 60 and over are less likely to report going in-depth on breaking news than on news generally.

 

Young people are attentive to a range of news topics at rates similar to older adults

 

Age does not impact people’s attentiveness to various news topics. Even the youngest adults are as likely to pay attention to news on topics such as business, politics, social issues, and foreign affairs as older adults. Further, they are no more likely than older adults to follow news on lifestyle topics.  Entertainment news is the only topic followed by a majority of younger people and a minority of older people

 

The digital divide persists when it comes to news habits

 

While younger Americans are interested in a wide variety of topics at levels similar to older generations, the device they turn to and the way they discover the news is more clearly influenced by age.

 

Older adults are more likely to rely on television, radio, and print media for their news than are those in the youngest adult cohort, who are more likely to use mobile devices. Adults age 18-29 are equally as likely to get news from TV as from their cell phones.

 

Older generations are more likely to get news from television. Fully 89 percent of those age 40-59 and even more (95 percent) of those 60 plus used television to get news in the past week compared with younger adults age 18-29 (76 percent) and 30-39 (79 percent).

 

Radio is most popular among adults age 40-59; 74 percent say they used it to get news in the past week, significantly more than the 53 percent of 18-29 year olds, 59 percent of 30-39 year olds, and 64 percent of adults age 60 and over who say they used radio to get news in the past week.

 

All Americans get news in print in significant numbers each week, but there are differences by age. Three-quarters of adults age 60 and over say they read print publications in the past week versus 61 percent of adults age 40-59, 55 percent of adults age 30-39, and 47 percent of adults age 18-29.

 

The majority of Americans use computers (desktop and laptop) to get news. Seventy-three percent of adults age 18-29 got news this way in the past week compared with 82 percent of adults age 30-39 and 69 percent of adults age 40-59; meanwhile, 61 percent of adults age 60 and over say they did so.

 

Young adults are significantly more likely than older adults to say they used their cell phone to get news in the last week. Seventy-six percent of adults age 18-29 who own a cell phone and 84 percent of adults age 30-39 who own a cell phone say they used it to get news in the past week, while just 59 percent of adults age 40-59 and 37 percent of adults age 60 and over say they did.

 

Seventy-two percent of 18-29-year-old tablet owners used them to get news in the past week, about the same rate of use as 30-39 year olds (74 percent) and 40-59 year olds (75 percent), and a little higher than tablet owners who are 60 plus (65 percent).

 

Similarly, younger adults are more likely to find news through web-based media. Younger people age 18-29 are more than three times as likely to discover news through social media than adults 60 and older (71 percent vs. 21 percent). A majority of 30-39 year olds also discover news through social media (64 percent), as do 41 percent of 40-59 year olds. Similarly, people under 40 are more likely than those 40 and over to discover news through internet searches and online news aggregators.

 

Across all age groups, the preferred method for discovering the news is directly from a news organization; however, younger people are more likely to express a preference for social media as a means of discovery. Thirteen percent of 18-29 year olds cite social media as their preferred way to find news compared to 3 percent or less for all other age groups.

 

Millennials and Political News

 

Social Media – the Local TV for the Next Generation?

 

Millennials and Baby Boomers: A Generational Divide in Sources Relied on for Political News When it comes to where younger Americans get news about politics and government, social media look to be the local TV of the Millennial generation. About six-in-ten online Millennials (61%) report getting political news on Facebook in a given week, a much larger percentage than turn to any other news source, according to a new Pew Research Center analysis. This stands in stark contrast to internet-using Baby Boomers, for whom local TV tops the list of sources for political news at nearly the same reach (60%).

 

This report is the latest in an ongoing study of political news and information habits, is based on an online survey conducted between March 19 and April 29, 2014, with 2,901 members of the Pew Research Center’s American Trends Panel. An initial report on these data explored the ways news consumption differs across the ideological spectrum. Here, we consider political news habits across three generations.

 

Even looking just at members of each generation who are on Facebook, Millennials still stand out for seeing somewhat more political content on the site. Roughly a quarter (24%) of Millennials who use Facebook say at least half of the posts they see on the site relate to government and politics, higher than both Gen Xers (18%) and Baby Boomers (16%) who use the social networking site.  This occurs even though Millennials express less interest in political news. Roughly a quarter of Millennials (26%) select politics and government as one of the three topics they are most interested in (out of a list of nine). That is lower than both Gen Xers (34%) and Baby Boomers (45%). Millennials also are less familiar with many of the 36 sources asked about in the survey, which range from USA Today to Rush Limbaugh to Slate.

 

A longer-term question that arises from this data is what younger Americans’ reliance on social media for news might mean for the political system.   Viewed in the context of the ongoing debate over political polarization in social media, for example, it is the Facebook users in the oldest of the three generations studied here who are most likely to see political content on the site that supports their own views: 31% of Baby Boomers on Facebook who pay attention to political posts say the posts they see are mostly or always in line with their own views, higher than both Generation Xers (21%) and Millennials (18%). At the same time, though, Baby Boomers are the least reliant on this platform as a source for their news – meaning that at least at the moment, this affects a smaller share of them. And, across all three generations, most Facebook users who pay attention to political content do, in fact, see views on the site that aren’t in line with their own.

 

As the research continues, these data suggest that younger and older generations espouse fundamental differences in the ways they stay informed about political news – differences that are of particular interest as the 2016 election campaigns ramp up.

U.S. Smartphone Use in 2015

 

The traditional notion of “going online” often evokes images of a desktop or laptop computer with a full complement of features, such as a large screen, mouse, keyboard, wires, and a dedicated high-speed connection. But for many Americans, the reality of the online experience is substantially different. Today nearly two-thirds of Americans own a smartphone, and 19% of Americans rely to some degree on a smartphone for accessing online services and information and for staying connected to the world around them — either because they lack broadband at home, or because they have few options for online access other than their cell phone.

 

Below are some more details about these major findings on the state of smartphone ownership in America today, based on a series of surveys conducted by Pew Research Center in association with the John S. and James L. Knight Foundation:

 

Nearly two-thirds of Americans are now smartphone owners, and for many these devices are a key entry point to the online world

 

64% of American adults now own a smartphone of some kind, up from 35% in the spring of 2011. Smartphone ownership is especially high among younger Americans, as well as those with relatively high income and education levels.

 

10% of Americans own a smartphone but do not have any other form of high-speed internet access at home beyond their phone’s data plan.

 

A majority of smartphone owners use their phone to follow along with breaking news, and to share and be informed about happenings in their local community; smartphones also help users navigate the world around them, from turn by turn driving directions to assistance with public transit

 

A substantial majority of smartphone owners use their phone to follow along with news events near and far, and to share details of local happenings with others:

 

68% of smartphone owners use their phone at least occasionally to follow along with breaking news events, with 33% saying that they do this “frequently.”

67% use their phone to share pictures, videos, or commentary about events happening in their community, with 35% doing so frequently.

56% use their phone at least occasionally to learn about community events or activities, with 18% doing this “frequently.”

Each of these behaviors is common across a diverse group of smartphone owners. Mobile news consumption is common even among older smartphone owners, who tend to use these devices for more basic activities. Four-in-ten smartphone owners ages 65 and older use their phone at least occasionally to keep up with breaking news, half use it to share information about local happenings, and one-third use it to stay abreast of events and activities in their community.

 

State of the News Media 2015

 

Call it a mobile majority. At the start of 2015, 39 of the top 50 digital news websites have more traffic to their sites and associated applications coming from mobile devices than from desktop computers, according to Pew Research Center’s analysis of comScore data.

 

In tandem with the growth of mobile has been the further rise of the social Web, where the flow of information embodies a whole new dynamic. Some of our 2014 research revealed that nearly half of Web-using adults report getting news about politics and government in the past week on Facebook, a platform where influence is driven to a strong degree by friends and algorithms.

 

Financially, the newspaper industry continues to be hard-hit. Newspaper ad revenue declined another 4% year over year, to $19.9 billion – less than half of what it was a decade ago. The slight 1% growth in circulation revenue among publicly traded newspaper companies that make their data public suggests that gains there are far from making up for advertising losses.

 

At the local and state level, digital nonprofit journalism continues to develop and, according to Pew Research Center’s study on local news ecosystems, can help provide a kind of second tier of news.InEDC_324 Sep. 24 13.26.jpg

 

For the past five years, newspaper ad revenue has maintained a consistent trajectory: Print ads have produced less revenue (down 5%), while digital ads have produced more revenue (up 3%) – but not enough to make up for the fall in print revenue. Overall ad revenue fell 4%, to just $19.9 billion.

 

In 2014, spending on digital advertising as a whole continued to grow at roughly the same rate as in 2013. One segment of that – mobile advertising spending – showed sharp increases.  In 2014, $50.7 billion was spent on digital ads, including mobile, up 18% from $43.1 billion in 2013. That is on par with the 17% increase a year earlier.

New Newsnew-media.jpg

the New Media news paradigm shift

 

The chart is fairly simple: it shows the amount of time spent by users on various forms of media — including print, television, the internet and mobile — compared with the amount of money spent by advertisers on that medium. Although there are obviously areas of overlap (since most newspapers have websites that include advertising, for example) the magnitude of the gap between the amount of time spent on print media vs. the amount of money spent there is fairly dramatic. Even though people spend less than 10 percent of their time with newspapers and magazines, advertisers devote 25 percent of their spending to them.

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Although the statistics Meeker uses for her chart are old, the overall trend has not changed. For example, the analyst noted that about $50 billion worth of advertising was going towards print and other forms of “old” media when — based on the amount of time spent — it should be going to internet-based media (at that point, print was getting about 12 percent of the time spent by users, so it has fallen another five percentage points since then).

 

Pre-Relaunch 50% Discount for

Chamber Members Only

Ahead of the curve or behind the ball?

 

Are you looking for customers that are adults, well educated, and affluent?  

Do you feel your ad dollars are not effective in newspapers?

Do you need cost-effective advertising?

Do you want target educated and affluent adults for pennies.

 

Thousands of Page Views Everyday.png

 

Advertising is often judged on how many potential customers see your ad per dollar of advertising cost.

 

Here is a comparison using the Mt Democrat newspaper.

4’ Column inch Color  ad = $470

Mt Democrat Color ad to 6,000 viewers = 7.8 cents each.

 

New Media -  Placerville Newswire

4’ Column inch  [equivalent] Color  ad = $120

Displayed to 6,000 viewers. Cost is 2 cents for full color with active link to webspace of your choice.

 

Bottom Line -- We are about to relaunch the Placerville Newswire after an extensive rebuild to a mobile-first web design.  We are offering you, fellow Chamber members a limited offer of 50% off.  That is just a penny per ad!

 

Audited Number from Google Adwords [google filters out spam and search engine traffic]:

Aug 25, 2015 – Sep 23, 2015

Pages requested by users = 98,860

Ads Displayed = 286,658

 

If you want to take advantage of our special pre-launch offer, you must order before the 1st, as that is the launch date.  You can run a blitz campaign or a monthly campaign.  You may change your ad each week without a fee.  Minimum contract amount is $50.  Video ads Offered…

 

Contact our exclusive advertising agent, Lum Public Relations and Communications at (530) 295-1236 to arrange an appointment.  Ask for Sherri Lum-Alarcon.