Media Firm Differences

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Spac3y
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Media Firm Differences

Post by Spac3y »

Hi,

Apologies if it has been posted but I cant find it in the search.


What is the actual differrence over the 3 media firms.

I get increasing the cost for new content improves the rating, but why buy a TV studio over say a newspaper ? If you have the same rating , does the TV station allow you to charge more per 1000 images ?

Or does it make no differrence at all.

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Spac3y
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Re: Media Firm Differences

Post by Spac3y »

David,

Could you give us the lowdown of the mechanics of the differrent media companies please.

Thanks
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eleaza
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Re: Media Firm Differences

Post by eleaza »

This is a very interesting question. I never actually take much thought about it.

From my own experience I believe TV station tends to have higher initial rating compared to other media types, and higher revenue comparably. I feel the media firm's "market value" is likely proportional to its annual revenue (before factoring the economic status), not its profitability.

However, I am still not sure how and when does the base game government AI (if such thing even exists) determines to put media firms on sale. A lot of time I feel there's a window of auctions opened like several years in the game, and almost all media firms will be on-sale, but later on only those have massive losses will be on-sale constantly. Other profitable one will still be on-sale, but kinda randomly.
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Spac3y
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Re: Media Firm Differences

Post by Spac3y »

Yeah, my thought was the bigger the media company the quicker it boosted the brand rating, but I may be wrong on that. Also Im not quite sure on revenue on a like for like, as they are all priced per 1000 imagine so a tv station, radio station newspaper all charging $3 per 1000 impressions is surely the same amount of revenue ?

Its not like we can see a radio station reaches 3million listeners, newspaper 1million and tv station 20 million so bigger audience means more multiples of the 1000 impressions.

Something like that would give a better overview on the differrent media companies, or if the impression count changed like 3000 impressions for a newspaper, 2000 for a radio station and 1000 for a tv station. Either that or the premium you can charge ie $2 per 1000 for a newspaper, $4 for a radio station and $6 for a tv station hence being able to charge more for exposure
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eleaza
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Re: Media Firm Differences

Post by eleaza »

Spac3y wrote:Yeah, my thought was the bigger the media company the quicker it boosted the brand rating, but I may be wrong on that. Also Im not quite sure on revenue on a like for like, as they are all priced per 1000 imagine so a tv station, radio station newspaper all charging $3 per 1000 impressions is surely the same amount of revenue ?

Its not like we can see a radio station reaches 3million listeners, newspaper 1million and tv station 20 million so bigger audience means more multiples of the 1000 impressions.

Something like that would give a better overview on the differrent media companies, or if the impression count changed like 3000 impressions for a newspaper, 2000 for a radio station and 1000 for a tv station. Either that or the premium you can charge ie $2 per 1000 for a newspaper, $4 for a radio station and $6 for a tv station hence being able to charge more for exposure
I think the brand awareness rating changes as you said are determined by the CPM times advertisement budget you put in, and this determines the daily ads frequency (you can check it in the Corporate Detail -> Adverting tab). And I believe the viewer Rating Points in different medias determines the maximum viewers certain station can reach, since if you only put ads in one type of media, no matter how high the budget is, it will cap out the brand awareness rating at certain level (and this level I think is somewhat positive correlated with Rating Points) and couldn't get any higher. It's why I like to put ads in different medias types and spread them out than put all in one cheap CPM media.

Things I am not sure are whether different media types affect advertising different products. Maybe better media (TV>Radio>Newspaper) has more effect on "luxury products" (those with lower necessity index)? Maybe? Or do they reach different "customer base"? Like customers prefer concern will watch TV more, Ratio more for quality, and Newspaper more for price? These are less likely, but might be cool to have and differentiate different types.
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Re: Media Firm Differences

Post by David »

I think the brand awareness rating changes as you said are determined by the CPM times advertisement budget you put in, and this determines the daily ads frequency (you can check it in the Corporate Detail -> Adverting tab). And I believe the viewer Rating Points in different medias determines the maximum viewers certain station can reach, since if you only put ads in one type of media, no matter how high the budget is, it will cap out the brand awareness rating at certain level (and this level I think is somewhat positive correlated with Rating Points) and couldn't get any higher. It's why I like to put ads in different medias types and spread them out than put all in one cheap CPM media.
In the above paragraph, eleaza did a nice job describing the key characteristics of advertising in CapLab.

Other than that, TV, radio and newspapers have no differences in terms of their effectiveness in advertising, as they basically share the same mechanism.

FYI, the mechanism of advertising in the game is in fact described in detail on page 117-120 of Capitalism 2 manual. You may refer to it for more details.
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eleaza
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Re: Media Firm Differences

Post by eleaza »

I almost forget about the manual :P. These are the 4 pages about advertising in the Cap 2 manual
Media_firms1.jpg
Media_firms1.jpg (482.56 KiB) Viewed 3857 times
Media_firms2.jpg
Media_firms2.jpg (376.98 KiB) Viewed 3857 times
I know Rating Points = Reach / Coverage, and Reach is what the "cap" actually means in my post. So the part that I am not really sure about is, "Is the coverage of each type of media the same"? If TV has a larger Coverage compare to the total population, then it would explain why TV often get a higher income than Radio and Newspaper even though their rating points are about the same level, and the feeling I seem to get that TV is more effective comparably somehow (or is it just my own confirmation bias?). Since at the same rating point but higher coverage, its reach will also be higher, right?

And do coverage different in "demographic?" even if they are the same value with different medias? Like children don't buy automobile, and adults don't buy toys, etc. Children watch TV more, Adults and Elders read papers more, etc. So it would be more effective to put certain products through certain media type? (I don't feel it does, but as I said in previous post, it would be cool to have this kind of mechanism)
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bdubbs
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Re: Media Firm Differences

Post by bdubbs »

Can't lie I'm still confused here, I've never really thought about media firms much before. I typically buy them out after money isn't much of a concern, max the budget for new content and make sure my firms are using my advertiser. It sounds like what you're saying is you can actually improve your rating by having multiple advertisers thus expanding your coverage.
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eleaza
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Re: Media Firm Differences

Post by eleaza »

bdubbs wrote:Can't lie I'm still confused here, I've never really thought about media firms much before. I typically buy them out after money isn't much of a concern, max the budget for new content and make sure my firms are using my advertiser. It sounds like what you're saying is you can actually improve your rating by having multiple advertisers thus expanding your coverage.
I'm also not 100% sure of all the details as well, only know so much from experience and the manual. For the most part, advertising through 3 different kinds of medias (TV, radio, news) are much effective than putting the same amount of ads to just one kind of media. And one kind of media has its limit reach and coverage, thus the brand awareness can only rise so high depends on the reach.
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Spac3y
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Re: Media Firm Differences

Post by Spac3y »

My thoughts for the 3 media companies would be if you had the purchase-sale setup with advertising unit linking into the 4x these per floor, on each differrent floor one of the three media companies could advertise. This would then give you 100% reach ? as in the 1 store youd have all products advertised over all media and quicken brand awareness ?
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