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Marketing 2800/2010 Research Guide: Marketing Budget / Feasibility

This guide has been created for the Marketing 2800 class.

Determining Promotion Costs for Different Media Channels

Introduction

This section provides some sources to help you develop your promotion budget. In the classroom environment it is a simplified process. In the real world an individual may have access to much more data, including actual prices for various media channels, In addition,  the company might have a relationship with a marketing firm that would be able to negotiate more favorable terms.

One of the terms used in some of these sources for calculating advertising costs is cost-per-thousand, or CPM.

The American Marketing Association defines this as  "a simple and widely used method of comparing the cost effectiveness of two or more alternative media vehicles. It is the cost of using the media vehicle to reach 1,000 people or households. The CPM of any vehicle is computed by dividing the cost of placing a specific ad or commercial in the media vehicle by the vehicle's audience size and multiplying the result by 1,000" (American Marketing Association, 2017).

cost-per-thousand. (2017). In American Marketing Association. Dictionary. Retrieved from https://www.ama.org/resources/pages/dictionary.aspx?dLetter=C

Image creator attribution: Nick Youngson - link to  - http://nyphotographic.com

First Stop

Use Winmo to learn how much major companies are spending on advertising in various media categories.

Use eMarketer to find cost per thousand for Facebook or Twitter, as well as other ad benchmarks.

Use WARC to find the U.S. cost per thousand for select media and audiences. 

TV & Cable

TV RATINGS

Use the following sources to find the TV ratings of the top television programs.

Statista offers some general information about television advertising. The TV Advertising in the U.S. dossier has a section on what has been spent on 30-second spot ads in different categories. To find it, use the following keywords in Statista: tv advertising

If you want to learn about the cable TV market in the U.S., take a look at the Cable TV in the U.S. dossier.  Use the following terms to find it: cable tv

Social Media

Facebook

Twitter

YouTube

Instagram

Social Media Community Management

Other Useful Sources

Newspapers and Magazines

Obtaining advertising rates for magazines and newspapers is often straightforward. This is because many magazines and newspapers provide their "media kit" on their websites. To find a media kit you can use Google and in the search box enter "media kit" (in quotes and the name of the publication). Or you can go to the publication's website and look for a link called Advertising, often at the bottom of a webpage.

However, other times you will just go to a site where they will give you all the reasons you should advertise with them and provide a contact name or email. In this case, you can use a source like SRDS to find the advertising rate for a consumer magazine (the library doesn't have the Newspaper content). 

Examples of periodicals with media kits:

Other Useful Sources

Direct Marketing

Other Useful Sources

Radio & Digital Music

Other Useful Sources

General Marketing Cost-Related Information (e.g., Production)

Other - The sources below are also included in the specific media channels located on the left side of this page.

Calculators

Statista

Statista offers some general information about television advertising. The TV Advertising in the U.S. dossier has a section on what has been spent on 30-second spot ads in different categories. To find it, use the following keywords in Statista: tv advertising

If you want to learn about the cable TV market in the U.S., take a look at the Cable TV in the U.S. dossier.  Use the following terms to find it: cable tv

There are also dossiers on Facebook marketing and Twitter marketing.