1 Chapter 8 Media Planning and Buying. 2 Learning Objectives Learn about major decisions involved in media planning. Understand fundamental terms of media.
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Learning Objectives
Learn about major decisions involved in media planning.Understand fundamental terms of media planning.Learn how to calculate media measures.Learn to use secondary data frequently used in media planning.
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Media Planning
“I know half the money I spendOn advertising is wasted, but ICan never find out which half.”
(JW)
What is media planning?
--The process of designing a course of action that shows how advertising time and space will be used to contribute to the achievement of marketing objectives.
Problems in Media Planning
Insufficient information
Inconsistent terminologies
Time pressures
Difficulty measuring effectiveness
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Background and Situation AnalysisBackground and
Situation AnalysisDiscusses Media Options, Opportunities
and Target Audience.Discusses Media Options, Opportunities
and Target Audience.
Staging a Media PlanA Media Plan is a Written Document that Summarizes the
Recommended Objectives, Strategies, and Tactics Pertinent to the Placement of a Company’s Advertising Messages.
Strategy: Selection of Media
Strategy: Selection of Media
Explains Why a Single Medium or Set of Media is Appropriate.
Explains Why a Single Medium or Set of Media is Appropriate.
Flow Chart Scheduling & Budgeting
Flow Chart Scheduling & Budgeting
Media Buyers Convert Objectives and Select, Negotiate, & Contract for Media
Space.
Media Buyers Convert Objectives and Select, Negotiate, & Contract for Media
Space.
Media Objectives &Aperture OpportunitiesMedia Objectives &
Aperture OpportunitiesGoal or Task that Media Can Accomplish
Based on Aperture Opportunities.Goal or Task that Media Can Accomplish
Based on Aperture Opportunities.
Consumer Attitudes Toward Media (abbreviated)
57%
9%
20%
11%
3%
Television
Radio
Newspapers
Magazines
Don’t know
81%5%9%
2%3%
Authoritative Influential
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Changes in Percentage of Network Commercial by Length
0%
20%
40%
60%
80%
100%
1965 1975 1985 1987 1988 1990 1992
Other
60
30
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Whom to Advertise ToWhom to Advertise To
Which Geographic Areas to CoverWhich Geographic Areas to Cover
When to AdvertiseWhen to Advertise
What the Duration of the Campaign Should BeWhat the Duration of the Campaign Should Be
What the Size or Length of the Ad Should BeWhat the Size or Length of the Ad Should Be
Setting Media ObjectivesThe Basic Goals That Direct Media Strategy Typically Focus on:
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Specifying Media Objectives
1. What proportion of the target audience should be exposed to our message
“Reach”2. How often should the target audience be exposed to our message?
“Frequency”-- “Motivational frequency”-- “Effective reach and frequency”
Advertising Response CurvesR
esp
on
se
Frequency FrequencyR
esp
on
se
a. S-shaped response curve b. Convex response curve
Threshold
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When high frequency is required
A new brand
A smaller, less known brand
A low level of brand loyalty
Relatively short purchase and use cycle
With less involved (motivated and capable) target audiences
With a great deal of clutter to break through (Joseph Ostrow at Y & R, JAR, 1984)
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Specifying Media Objectives (cont’d)
3. How much total advertising is necessary to achieve the reach and frequency objective?
“Weight” (GRPs/TRPs, Gross Impressions)- FCB research: no awareness with <1000 GRPs
4. How to schedule the advertising campaign?
“Scheduling” or “Continuity” - Continuous scheduling - Pulsing - Fighting
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Three Methods of Media Scheduling
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Pulsing
Flighting
Continuity
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Specifying Media Objectives (cont’d)
5. What is the least expensive way to accomplish media objectives?
“Cost”: Absolute and relative costs- CPM or CPP: Measures cost efficiency
6. Other considerations-- Geographic coverage
-- Qualitative media environment-- Recall research
* Confusing terms
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How to Use Reach and Coverage
Use Reach
To express a whole number or percentage of
different people actually exposed only once to a media vehicle to combination of vehicles. Example: Television program X reaches 9 million
men aged 18-34 within a four-week period. Example: Magazine Y has a reach of 25 percent of
men aged 18-34 with an average issue.
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How to Use Reach and Coverage
Use Coverage
To express the potential audience of a broadcast medium or the actual audience of a print medium exposed only once. Example: A network television program may have
a coverage of 95 percent of TV homes in the U.S. Example: Magazine Y has 25 percent coverage of
men aged 18-34. (Means same as reach.)
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Some Basic Terms Used in Media Planning
•Gross impressions: the sum of the audience of all media vehicles used within a designated time period
–Jeopardy: 3,270,000 x 4 messages =13,080,000
–People: 8,620,000 x 2 messages = 17,240,000
–Time: 1,700,000 x 2 messages = 3,400,000
–---> 33,720,000 gross impressions
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Relative Cost: CPM= Cost of ad space X 1,000 /number of readers
Time
Per-page cost: $156,000
Number of readers: 4.0 MM
CPM: $156,000X1,000/
4.0 MM
=$39.00
Newsweek
Per-page cost: $144,000
Number of readers: 3.1 MM
CPM: $144,000X1,000/
3.1 MM
=$46.45
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Relative Cost:CPRP = Cost of ad time/Program rating
Drew Carey
Cost per spot ad: $3,500
Rating: 11
CPRP: $3,500/11
=$318.18
Survivor
Cost per spot ad: $4,000
Rating: 15
CPRP: $4,000/15
=$266.64
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Super Bowl Options
Scenario 1 ($891,000; one 30-second spot on one prime-time show each night of the week)
Scenario 2 ($895,000; a 30-second prime-time “roadblock” on Sunday and Monday nights)
Monday: Murphy Brown (CBS) Tuesday: Coach (ABC) Wednesday: 48 Hours (CBS) Thursday: Wings (NBC) Friday: Picker Fences (CBS) Saturday: The Commish (ABC) Sunday: CBS Sunday Night Movie
Sunday: ABC Sunday Night Movie CBS Sunday Night Movie NBC Sunday Night Movie Married …With Children (Fox) Monday: Day One (ABC) Dave’s World (CBS) Blossom (NBC) Fox Movie
Comparison with Super Bowl XXVШ Ratings points: +48% Reach: +6%
Comparison with Super Bowl XXVШ Rating point: +64% Reach: +25%
Source: N. W. Ayer (1994)
Notes: Ratings points/reach comparisons are based on adults 18-49. Reach is based on actual delivery of each schedule from the week of November 15, 1993. Nielsen’s cumulative audience data were used for this analysis. Costs were based on October Media Watch figures. A single Super Bowl commercial (30 seconds) cost $900,000 in 1994.
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Some basic terms used in media planning (cont’d)
GRPs: the sum of the total exposure potential of a series of media vehicles as a % of the audience population
-- GRPs = Reach x Average frequency
TRPs: ….. As a % of the target audience population
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1978 1997 Total 100.0 100.0 Newspaper 43.5 37.6 Magazine 14.0 8.9 Television 30.8 40.1 Radio 10.1 12.1 Outdoor 1.6 1.3
U.S. Main Media Volume (in percentage), Analyzed by Media Groups
SOURCE: reprinted with permission from Advertising Age, various dates. Copyright Crain Communications Inc.,
1998.
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Using Electronic Media
N etwork Advertis ing-S ponsorsh ip-P atic ipation
Spot Advertis ing-N ational and Local
Syndication- O f f -netw ork syndication v.
f irs t-run syndication-S traigh t cash v. barter sys tem
Types of TelevisionAdvertising
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100homeat set TV with HHs Total program a to tunedHHs Total Rating
100onset TV with HHs Totalprogram a to tunedHHs Total Share
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CDI and BDI
The Brand Development Index (BDI) helps marketers factor the rate of product usage by geographic area into the decision process.
The Category Development Index (CDI) is computed in the same manner as the BDI, except it uses information regarding the product category (as opposed to the brand) in the numerator.
100×= market in population U.S. total of Percentagemarket in sales totalcategory product of PercentageCDI
100×= market in population U.S. total of Percentagemarket the in sales U.S. total to brand of percentageBDI
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Using CDI and BDI to determine market potential
100×= Utah/Idaho in population U.S. total of PercentageUtah/Idaho in salescategory product of PercentageCDI
100%1
%2
200
100×= Utah/Idaho in population U.S. total of PercentageUtah/Idaho in sales brand total of percentageBDI
100%1
%2.1
120
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Using BDI and CDI Indexes
v High BDI Low BDI
High CDI High market share
Good market potential
Low market share
Good market potential
Low CDI High market share
Monitor for sales decline
Low market share
Poor market potential
High BDI and high CDI This market usually represents good sales potential for both the product category and the brand.
High BDI and low CDI The category is not selling well, but the brand is; probably a good market to advertise in but should be
monitored for declining sales.
Low BDI and high CDI The product category shows high potential but the brand is not doing well; the reasons should be determined.
Low BDI and low CDI Both the product category and the brand are doing poorly; not likely to be a good place for advertising.
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Using Printing Media
Newspaper rate
-- SAUs (Standard Advertising Unites) in 1984
-- Flat rate v. open rate
-- Run-of-paper v. preferred position rate
-- Combination rate: several nps as a group
-- National advertisers pay much more for newspaper space
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Using Print MediaMagazine circulation Primary circulation (in-home readers):
Subscription + news stand (a single copy circul.) A basis for rate structure
Secondary circulation (out-of-home readers) Paid circulation v. controlled circulation Guaranteed circulation v. verified circulation ABC (Audit Bureau of Circulations) Total audience=readers per copy x circulation of
an average issue
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SMRB/MRI ReadingBase: Female Homemakers
Top Row: There are 86,474,000 female homemakers in the U.S.
Column A: 77,418,000 female homemakers use breakfast cereals.
Column B: All female homemakers using breakfast cereals is equal to 100% (i.e., base).
Column C: 89.5% of the total female homemakers use breakfast cereals .
%5.89100000,474,86
000,418,77
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Second Row: There are 3,925,000 female homemakers who read the magazine, Money.Column A: 3,448,000 readers of Money use breakfast cereals.Column B: 4.5% of all users of breakfast cereals read Money.
Column C: 87.8% of Money readers are users of breakfast cereals
Column D: Money readers are 2% less likely to use breakfast cereals than all U.S. female homemakers
.
%5.4100000,418,77
000,448,3
%8.87100000,925,3
000,448,3
981005.89
8.87
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