Cost-effective ad? YOU decide!

From prior articles you have accumulated all the tools you need to make a good newspaper advertising decision. You have learned the difference between Classified and ROP, you know how to size an ad, you understand that if one newspaper mentions circulation and another gives you readership figures you can convert one or the other for an accurate comparison.

Let's now take that info and, with your understanding of Cost-per-Thousand and Penetration, walk through our first hypothetical scenario.

Lottie's Loving Care is a nursing home in Castleton, Indiana - a neighborhood community within Indianapolis proper. Lottie needs to hire Nursing Assistants, not necessarily certified. Candidates are typically unskilled. The work is very difficult, the pay low, and many NA's rely on mass transportation and are unwilling to commute very far. To further complicate recruitment efforts there are numerous hospitals and nursing facilities in the Indianapolis and surrounding areas. So, Lottie knows she primarily draws candidates from the nearby Castleton area.

There are two newspapers available to Lottie for her Classified employment ad. The Indianapolis Gazette, in a 300,000 population area, has a circulation of 150,000, 35,000 of which are delivered in Castleton itself. The Castleton Examiner is delivered only within the 40,000 population Castleton area and boasts a readership of 33,000.

• The Gazette's open (non-contract) employment rate is $12.00 per inch.
• The Examiner's open rate is only $2.40 per inch.

First, we need an accurate comparison. The Gazette has given us a circulation figure, the Examiner tells us readership. Taking the 33,000 readership figure of the Examiner and dividing it by 2.2 (remember, general rule of thumb is 2.2 readers per circulated newspaper), we come up with a circulation figure of 15,000. So, circulation of the Gazette is 150,000; that of the Examiner 15,000.

COST-PER-THOUSAND:

• Gazette: 150,000 circulation, $12.00/inch. The math is $12 divided by 150, or 8 cents per thousand.
• Examiner: 15,000 circulation, $2.40/inch. The math is $2.40 divided by 15, or 16 cents per thousand.

What we now see is that the cost-per-thousand of the Examiner is twice that of the Gazette. Does this mean that the Gazette is the better buy? Not necessarily. Don't forget that Lottie expects that her only good candidates will come from the Castleton area. To advertise in the Gazette she is still going to have to purchase their total circulation at $12.00/inch.

Now, let's look at RATE AND TOTAL COST: Assume Lottie wants to place an ad 2 columns wide by 5 inches deep - a 2x5 or 10 inch ad. The math to advertise one day:

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