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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Chapter 8

Media Planning and Buying

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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

15

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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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EXH 9-11

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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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Using Electronic Media

Rating/Share/HUTS

CDI and BDI

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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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100×= homeat set TV withHHs Totalonset TV withHHs TotalHUT

HUTShareRating ×=

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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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Review

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.