The Ad Industry
The Ad Industry Demographics Ad Techniques Assignment Links

This page contains a basic explanation of the role advertising plays within the Media.

Advertising by Medium
 
Advertising is how most forms of mass media make most of their money.

Print Media

Newspapers usually have a local circulation, such as The New UxbridgeTimes, or regional circulation, like The Worcester Telegram & Gazette.  Newspapers receive approximately 70% of their revenue from advertising.  Some newspapers, The Wall Street Journal for example, are circulated nationally and internationally.

Magazines can have a wide spread national or even international circulation because of their general content, like TIME Magazine.  Others, often referred to as niche magazines have a smaller circulation due to narrow content, such as Welding Journal.  Magazines receive about 60% of their revenue from advertising.

Radio is a regional medium.  Although some radio stations are available world wide over the Internet, most broadcast to a certain geographic area called a market area.  Most radio stations receive 100% of their revenue from advertising (exceptions: public radio, satelite).
Television programming can be regional, national, or international.
Local stations, like  local origination or P.E.G. cable stations, only reach a certain city or town.  Other local stations, such as WBZ-TV4, broadcast to a geographic market area.
Networks, like ABC-American Broadcasting Company, and Satellite stations, such as TBS-Turner Broadcasting System, broadcast their programming throughout North America and sometimes all over the world.
Broadcast television programmers, local and network, receive 100% of their revenue from advertising.  PBS-Public Broadcasting System and other viewer supported programming, such as pay-per-view or subscription satellite and cable channels like HBO-Home Box Office, receive money directly or indirectly from the viewers.
The National Football League's Superbowl is one of the most widely watched programs on television and its advertising is expensive.
According to Neilsen Media Research approximately 90 million people watched Superbowl XXXVIII.
For 30 seconds of advertising during Superbowl XXXIX, advertisers will pay about $2.4 million.  For more info visit www.superbowl-ads.com 

Advertiser Research and Ratings
Advertising is a big business with billions of dollars at stake.  Advertisers do research to be sure they are spending their money effectively.
Editor and Publisher is a magazine that researches the circulation of newspapers.  What do you think is the most popular newspaper in the USA? Answer
The Audit Bureau of Circulations is another company that researches international print media.  What is the most popular magazine in the USA? Answer
Arbitron is a company that researches radio audiences.  The company collects demographic information about people and what stations they listen to through surveys and diaries.  They sell this information to advertisers.  What do you think is the most popular radio station in the Boston Market?  Answer Worcester? Answer
Nielsen Media Research is a company that researches television audiences.  It collects demographic information about people and what programs they watch with surveys and diaries as well as electronic monitoring devices attached to the TV set.  They sell this information to advertisers.  What do you think is the most popular prime time network television program?  Answer NMR has also begun tracking Websites.  What do you think are the most popular Websites? Answer
 Checks and Balances: Protection of the Consumer
Government Agencies like the Federal Communications Commission, and Federal Trade Commission regulate the Media and the Advertising Industry. 
These agencies work with groups like the Council of Better Business Bureaus, Inc. to keep advertisers honest.  The Children's Advertising Review Unit is an organization that specifically monitors advertising aimed at children.  Read some of the guidelines BBB Code of Advertising or read more about consumer protection and advertising.

 

Top of Page