Final Media Plan

Kassandra Falvo BMO Student

Mastercard

April 4th, 2017 Kathy Saunders

Market Overview (Summary)

The BMO Student MasterCard faces strong competition as the big five
banks in Canada (BMO, TD, Scotiabank, RBC, and CIBC) all offer Visa &
MasterCard student credit cards. Aside from these big banks there are also
smaller financial institutions that offer credit cards as well such as Alterna
Savings. All of these banks, large and small, are continuously coming up with
new offers and packages for students and are fighting to compete for the
best credit worthy customers. The good news however is that the category
is facing steady growth at the same rate as population increase. All of the big
banks tend to use a combination of TV, magazines, newspapers and digital to
promote their credit cards and spend between $3,000.0 M and $3,600.0M
per year. BMO spends the most followed by RBC and TD.
The BMO student credit card offers students a low credit limit and the
capability for parents to pay off the monthly bill. They also offer a few other
features for a higher annual fee. This year, BMO is looking to activate new
student accounts and ensure that they are still active 6 months after the
account is opened. In order to do this, BMO wants to advertise heavily in July,
August and September when students are preparing for their first year of
school.
Purchase Behaviour & Consumption Chart
Client: BMO Student Mastercard

Category % % Individual Total # of %

(purchased Population Purchasers Purchases Purchases Purchases
monthly or past (000) (re-percentage to (Avg. # of Purchases) (Total $ Spent) (of total purchases)
7 days, etc.) actual purchasers)

Total Adults 18+ Base Population: 28,361.0M Any User Universe: 17,255.0M

60.84%
Any 100.0% $11,915,980.0M 100%
(17,255.0M)

Light 14.49%
23.8% $50.50 $207,505.0M 1.74%
($1-$100) (4,109.0M)

Medium 29.77%
48.94% $550.50 $4,648,422.0M 39%
($101-$1000) (8,444.0M)

Heavy 16.58%
27.25% $1,501.50 $7,060,053.0M 59.25%
($1001+) (4,702.0M)

RECOMMENDATION: It is recommended that BMO Student MasterCard targets Medium + Heavy users, in other words, those
spending $101+ monthly on a credit card, as they make up for 98.25% of the user group.
Demographics

Summary
As per Vividata information, it is recommended that the BMO student
credit card media plan target the following demographic:
Males & Females
Age: 35+
French & English speaking
HHI of $40,000+
Education: Trade Certificate/ Diploma, University Certificate/ Other Non
University Certificates, a Bachelors Degree, and a Post Graduate +
Degree
Employment Status: Full-time
Vocation: Professionals, Senior Managers/Owners, Other Managers,
Technical/Sales/Teaching/Other White Collar, and Skilled Workers
Marital Status: Married or Living Together, Widowed, or Divorced
Children: Household composition of children over and under the age of
18
Sex

Category Total Medium-Heavy

Population User Group
(000) % (000) % Index
24888 100 804 100
Male 13941 49.16 6790 51.65 105
Female 14420 50.84 6356 48.35 95

It is recommended that BMO target both males and females for this
media plan. Although males have a higher propensity to spend over $101 on
credit cards per month, females only have a lower propensity to spend this
amount by 5%. Since females make up half of the user group it would not
make sense to ignore them and only focus on males for this media plan.

Age

Category Total Medium-Heavy

Population User Group
(000) % (000) % Index
24888 100 804 100
18-24 3386 11.94 901 6.85 57
25-34 4865 17.15 2128 16.19 94
35-49 7299 25.74 3739 28.44 111
50-64 7401 26.1 3807 28.96 111
65+ 5410 19.08 2571 19.56 103

It is recommended that BMO target people aged 35+ for this media
plan. Although those aged 18-24 will be the ones using the student credit
card, they have a low propensity to actually be the ones paying off the card
demonstrated by their index of 57. The 25-34 year olds have a slightly lower
propensity to spend $101+ monthly by 6%. They are not included in the
recommended target as they would be less likely to have kids old enough to
be enrolled in a postsecondary institution. The ages of 35-49 and 50-64 both
over index by 11% for monthly spending of $101+ indicating that these age
groups have a high propensity to spend this amount. Those aged 65+ are
also over index slightly (3%) and make up for almost 20% of all spending.
The total target age of 35+ makes up for 70% of the user group.
Language

Category Total Medium-Heavy

Population User Group
(000) % (000) % Index
24888 100 804 100
French
5674 20.01 2656 20.2 101
Canada
English
22687 79.99 10489 79.79 100
Canada

It is recommended that this campaign target both French & English

Canada as they both have almost the same propensity to spend $101+ on
credit cards (French Canada ahead by 1%). Since English Canada makes up
for almost 80% of the population and French Canada makes up for 20% it
makes since to split up the media budget accordingly instead of putting 50%
towards French Canada and 50% towards English Canada.
Income

Category Total Medium-Heavy

Population User Group
(000) % (000) % Index
24888 100 804 100
HHI Under
3535 12.46 837 6.37 51
$25,000
HHI
$25,000- 3436 12.12 1276 9.71 80
39,000
HHI
$40,000- 4478 15.79 1962 14.92 95
59,000
HHI
$60,000- 3059 10.79 1411 10.73 100
74,999
HHI
$75,000- 4560 16.08 2407 18.31 114
99,999
HHI
9293 32.77 5253 39.96 122
$100,000+

As per Vividata information, it is recommended that those with a

household income of $40,000+ are targeted for this program. This group has
a high propensity to spend $101+ monthly and makes up for 75% of the user
group. The indices of 100, 114, and 122 indicate that these income groups
have a high propensity to spend $101+ per month. Household income group
$60,000-$74,999 are just as likely as the Canadian population with income
$60,000-$74,999 to spend $101+ on their credit cards. Household income
group $75,000-$99,999 is 14% more likely than the Canadian population with
income $75,000-$99,999 to spend $101+. Lastly, household income group
$100,000+ is 22% more likely than the Canadian population with income
$100,000+ to spend $101+ monthly on their credit card.
Education

Category Total Medium-Heavy

Population User Group
(000) % (000) % Index
24888 100 804 100
No
Certificate 3772 13.3 1266 9.63 72
or Diploma
Secondary
/ High
7261 25.6 2822 21.47 84
School
Graduate
Trade
Certificate 3362 11.85 1570 11.94 101
/ Diploma
University/
Other Non
6594 23.25 3155 24 103
University
Cert.
Bachelor
4732 16.68 2721 20.7 57.5
Degree
Post
Graduate 2639 9.31 1613 12.27 132
+ Degree

It is recommended that this program targets those with a trade

certificate/ diploma, a university/ other non university certificates, a
bachelors degree, and a post graduate + degree. This group of people makes
up for 61% of all spending. Those with a trade certificate/diploma are 1%
more likely than the Canadian population with a trade certificate/diploma to
spend $101+. Those with a university/other non university certificates are
3% more likely than the Canadian population with university/other non
university certificates to spend $101+. Those with a bachelors degree are
24% more likely than the Canadian population with a bachelors degree to
spend $101+. Lastly, those with a post graduate degree + degree are 32%
more likely to spend $101+ monthly on a credit card than the Canadian
population with a postgraduate + degree. The indices of 101, 103, 124, and
132 indicate that the target audience has a high propensity to spend $101+
monthly on credit cards.
Employment Status

Category Total Medium-Heavy

Population User Group
(000) % (000) % Index
24888 100 804 100
Full-Time 15109 53.27 7800 59.33 111
Part-Time 2369 8.35 908 6.91 83
Not
10882 38.37 4438 33.76 88
Employed

It is recommended that BMO targets those with full-time employment

status as they make up for 53.27% of the population and represent 59.33%
of the Medium-Heavy user group therefore they have a higher propensity to
spend more than $101 on a credit card each month than the Canadian
population working full-time by 11%.
Vocation

Category Total Medium-

Population Heavy User
Group
(000) % (000) % Index
24888 100 804 100
Professionals 1750 6.17 969 7.37 119
Senior
Managers/ 1187 4.19 761 5.79 138
Owners
Other
3588 12.65 2062 15.69 124
Managers
Technical/Sal
es
Teaching/ 3205 11.3 1820 13.84 123
Other
White Collar
Clerical/Secre
2114 7.45 839 6.38 86
tarial
Skilled 2790 9.84 1279 9.73 99
Unskilled 2632 9.28 908 6.91 74
Primary 360 1.27 150 1.14 90
Other 10735 37.85 4357 33.14 88

It is recommended that professionals, senior managers/owners, other

managers, technical/sales/teaching/other white collar, and skilled workers
are targeted for this campaign. This group makes up for 44.15% of all
spending. The indices of 119, 138, 124, 123 and 99 respectively indicate that
this target audience is highly predisposed to spending $101+ on their credit
card each month.
Marital Status

Category Total Medium-Heavy

Population User Group
(000) % (000) % Index
24888 100 804 100
Single 6702 23.63 2383 18.13 77
Married or
Living 18122 63.9 9165 69.72 109
Together
Widowed 1583 5.58 717 5.45 98
Separated 528 1.86 227 1.73 93
Divorced 1293 4.56 604 4.59 101

As per Vividata information, it is recommended that this campaign

target those married or living together, widowed, and divorced. This target
makes up for 74.04% of the user group and based on the indices has a
higher propensity to spend $101+. Those married or living together are 9%
more likely than the Canadian population that is married or living together to
spend $101+. Those widowed have a slightly lower propensity to spend
$101+ monthly by 2% but are still included as they make up for almost 6%
of all spending. Those divorced are 1% more likely than the Canadian
population that is divorced to spend $101+.
Children

Category Total Medium-Heavy

Population User Group
(000) % (000) % Index
24888 100 804 100
Household
Compositi
on
9636 33.98 4411 33.55 99
Presence
of Children
Under 18
Household
Compositi
on
18725 66.02 8735 66.45 101
Presence
of Children
Over 18

It is recommended that both households with the presence of children

under and over 18 are targeted as they both have almost the same
propensity to spend $101+ monthly on a credit card, aside from a small
difference of 2%. This demonstrates that having children under or over 18
does not have a major effect on amount of money spent on a credit card on a
monthly basis. This group makes up for 100% of all spending.
BDI/MDI
Population by Any
Region MDI Brand % BDI
(000s) (%) (000s) (%)
Atlantic 1941 6.84 973 5.64 82 6% 88
Quebec 6665 23.5 4206 24.38 104 22% 94
Ontario 10907 38.46 6721 38.95 101 40% 104
Prairies 5069 17.87 3170 18.37 103 19% 106
British 3778 13.32 2185 12.66 95 13% 98
Columbia

In the Atlantic region, BMO credit cards perform better than the market. Because of this, it is
recommended that enough media dollars be spent to keep the brand performance high and defend market
share. In Quebec the amount of money spent on a BMO Mastercard is much less than the rest of the
market. Therefore, it is recommended that more media dollars be spent towards this market to increase
sales. In Ontario and the Prairies, both the brand and market perform above average. Media spend should
stay the same or increase slightly in these regions in order to remain competitive and defend market
share. In British Columbia the brand does better than the market therefore just like the Atlantic region, it is
recommended that media spend is kept the same in order to maintain a strong position in this category.
Market Size
Category Total Medium-Heavy
Population User Group
(000) % (000) % Index
24888 100 804 100
Montreal/
Toronto/ 10078 35.53 4940 37.58 106
Vancouver
Communit
y Size
500,000+
5165 18.21 2671 20.32 112
(exc.
Tor/Van/Mt
l)
Communit
y Size
4854 17.12 2134 16.23 95
100,000-
499,999
Communit
y Size 8264 29.14 3401 25.87 89
< 99,999

As per Vividata, community sizes 500,000+ exc.

Toronto/Vancouver/Montreal as well as Montreal/Toronto/Vancouver are the
largest group of people spending $101+ per month on their credit card. This
group accounts for more than 53% of all spending. The indices 106 and 112,
respectively point out that this target audience has a high propensity to
spend $101+. Community sizes of 500,000+ excluding
Toronto/Vancouver/Montreal are 12% more likely than the Canadian
population living in community sizes of 500,000+ excluding
Toronto/Vancouver/Montreal to spend more than $101 monthly on a credit
card. Montreal/Toronto/Vancouver residents are 6% more likely than the
Canadian population living in Montreal/Toronto/Vancouver to spend more
than $101 monthly on a credit card.
Seasonality/Timing
Current Recommended Media Spend
Allocation
Q1 33% 25%
Q2 5% 5%
Q3 50% 60%
Q4 12% 10%

As per the media-briefing document, BMO wants to promote

aggressively when students are in first year set up which would be Q3 and
perhaps Q1. Because of this, the majority of media spend will take place
during July, August, and September while students are preparing for first
year. 25% of the media dollars will be spent in Q1 since 33% of sales take
place during this time period and there will be low spending in Q2 and Q4
due to low seasonality during these months.

Reach/Frequency/Continuity/Recency
Quarter Strategy
Q1 Frequency
Q2 Continuity
Q3 Reach
Q4 Continuity

In Q1 it is recommended that a frequency strategy is executed in order

to build awareness of the BMO Mastercard. Although the target market may
not be ready to buy during this time period, they will become aware of the
product. In Q2 and Q4 where media allocation dollars are low, a continuity
strategy is recommended since the budget is low and this strategy is the
least expensive. In Q3 a reach strategy is recommended since it is the most
expensive approach and this is where most of the media dollars are
allocated.

Creative
As per the media-briefing document, the media chosen has to be able
to build awareness of the offer and acquire new student accounts. It also
needs to result in students still being active 6 months post acquisition. The
selected media needs to help the BMO Mastercard stand out in an extremely
competitive market. The media selected will have to allow for the offer and
the plans features to be explained.
Media Selection/ Rationale
For this campaign Television will be used as the primary medium and
Radio will be used as the secondary medium. Please see below for rationale.

Television (Primary Medium)

Televisio Totals Total Medium Medium Index
n (000s) (%) to Heavy to Heavy
Quintiles (000s) (%)
[Heavy] 5675 20.01% 2295 17.46% 87
Televisio
n
Quintiles
[Medium 5850 20.63% 2792 21.24% 103
Heavy]
Televisio
n
Quintiles
[Medium 5483 19.33% 2720 20.69% 107
]
Televisio
n
Quintiles
[Medium 5814 20.5% 2791 21.23% 104
Light]
Televisio
n
Quintiles
[Light] 5539 19.53% 2547 19.37% 99
Televisio
n
Quintiles

Television was chosen as the primary medium for this campaign as

Medium-Heavy users over index by 3% for Television consumption. Television
has a mass reach, is cost-efficient, and incorporates sight, sound and motion.
This medium also reaches an extremely large audience of 2,792,000 for
Medium-Heavy users therefore it will be a great way to communicate the
benefits of the BMO Student MasterCard.
 Television will be used in Q1 & Q3 in which a frequency and reach
strategy are being implemented, respectively. These two quarters have the
most budget allocation and since the budget restricts running Television for
all four quarters, it will run in Q1 & Q3 only. Students will be in first year set
up at the beginning of Q3 therefore we want to promote aggressively during
these months as per the brief.
Television Program Selection

Medium- Medium- Index

Heavy Users Heavy Users
(000) (%)
Family 4670 35.52 101
Dramas
Soap/Serial 3335 25.37 105
Dramas
Suspense/Cri 6328 48.14 109
me
Instructional 4650 35.37 115
Home
Improvement
Instructional 4055 30.85 106
Cooking
Movies 8683 66.05 104
Music Video 1662 37.92 82
Nature Shows 4325 32.9 105
News/ Current 7917 60.22 119
Affairs
Reality TV 3795 28.87 102
Situation 4659 35.44 113
Comedies
Sports 5780 43.97 110

It is recommended that Instructional Home Improvement shows

are selected as Medium-Heavy users have a higher propensity to watch
these shows by 15%. When looking at the raw numbers, this group
consists of 4,650,000 viewers, which is significant. It is also
recommended that News/Current Affairs programming is selected as
Medium-Heavy credit card users have a higher propensity to watch
these programs by 19%. This group also consists of 7,917,000 viewers
therefore will help reach a lot of people in the target market.
Radio (Secondary Medium)
Radio Totals Total Medium Medium Index
Quintiles (000s) (%) to Heavy to Heavy
(000s) (%)
[Heavy] 5668 19.99% 2511 19.1% 96
Radio
Quintiles
[Medium 5648 19.91% 2934 22.32% 112
Heavy]
Radio
Quintiles
[Medium 5758 20.3% 2845 21.64% 107
] Radio
Quintiles
[Medium 5765 20.33% 2669 20.3% 100
Light]
Radio
Quintiles
[Light] 5523 19.47% 2185 16.62% 85
Radio
Quintiles

Radio was chosen as the secondary medium for this campaign

because the Medium-Heavy user group over indexes on Medium-Heavy
radio consumption by 12%. Although Television only over indexes by
3%, it is still being recommended as the primary medium because the
spot will be expensive to produce therefore it needs to gain as much
use as possible. Radio allows for specific targeting and has excellent
reach potential. This The Medium-Heavy number of people who
consume a Medium-Heavy amount of radio is also greater than
Television by 142,000 people. This campaign does not require
consumers to physically see the product, as its not a product launch in
which the packaging needs to be visualized therefore radio is a great
medium to communicate the benefits of the student MasterCard.

Radio will be executed in Q2 & Q4 without Television while a

continuity strategy is in place. The budgets in these quarters are small
therefore Television will not be feasible during these months. Radio will
also be used in Q1 and Q3 to support Television and reinforce the
message as a frequency strategy has been implemented in Q1 and a
reach strategy in Q3.
Radio Program Selection

Medium- Medium- Index

Heavy Heavy
Users (000) Users (%)
Album Rock/ Classic 4247 32.31 114
Rock
All News 2918 22.2 125
All Sports 1214 9.23 114
Big Band/ Music of 522 3.97 101
your Life
Classical/ Fine Arts 1396 10.62 125
Dance 1135 8.63 86
Modern Rock/ 2943 22.39 110
Alternative Rock
Multicultural 660 5.02 99
New Country 2268 17.25 97
News/Talk/Information 2468 18.91 132
/Sports
Oldies 2701 20.55 106
Retro 1975 15.02 107
Soft Music/ Adult 1681 12.79 117
Contemp
Top 40/Current Hits 3472 26.41 118
Traditional Country 1349 10.26 96
Urban/Hip Hop/ Rap 1260 9.58 82

It is recommended that All News radio shows are selected as

Medium-Heavy users have a higher propensity to listen to these shows
by 25%. When looking at the raw numbers, this group consists of
2,918,000 listeners, which is significant. It is also recommended that
News/Talk/Information/Sports radio shows are selected as Medium-
Heavy credit card users have a higher propensity to watch these
programs by 32%. This group also consists of 2,468,000 viewers
therefore advertising on these shows will help reach a lot of people in
the target market.
Other Media

Magazines were also considered for this campaign however, they

were not selected as Medium-Heavy magazine users only over indexed
by 3% which was the lowest when considering all of the other
mediums. The Medium-Heavy user group of 2,708,000 was also smaller
than all the other mediums therefore it did not make sense to chose
magazines. Also, magazines are a visual medium, which is not
necessary for this campaign. Most of the budget for this campaign is
going towards frequency and reach strategies in Q1 & Q3. Magazines
do not provide frequency and in this case provide low reach for our
target.

Newspapers were also considered for this campaign as Medium-

Heavy credit card users have a higher propensity to be Medium-Heavy
users of magazines by 11%. However, radio over indexes slightly
higher at 12% and when looking at the raw numbers there are more
Medium-Heavy users that listen to radio at a Medium-High level versus
newspapers. Just like magazines, newspapers are a visual medium,
which is not required for this campaign and they also lack reproduction
quality.

Media Execution/ Rationale

The scheduling pattern for this campaign is based on a
frequency/continuity/reach/continuity strategy and all regions will have
the campaign running through all four quarters, as this is a National
campaign.

Quarter 1

The first quarter consists of 12 weeks of a 0:30-second TV spot.

Because this quarter is following a frequency strategy, this plan is
recommending lower GRPs over a longer duration for this quarter (12
weeks). Higher GRPs have been placed in the Atlantic and Quebec
markets. As per the brand development index, increased spending is
required in these markets in order to defend market share in Atlantic
and generate growth in Quebec. No radio is taking place during Q1 due
to budget constraints.

Quarter 2
 Only 5% of the budget is allocated for this quarter therefore only
0:15 second radio spots will be executed during these months in key
markets. It is recommended that most of the radio spend for this
quarter goes towards Atlantic and Quebec as the Atlantic market needs
to defend its share position while the Quebec market requires growth.
The remaining dollars have been dedicated to Ontario as most of the
brand sales take place in that region. This quarter is following a
continuity strategy therefore those in Atlantic, Quebec, and Ontario will
be reminded of the advertising message that they were served in the
first quarter.

Quarter 3

60% of the budget has been allotted to this quarter to support a

reach strategy. This quarter will consist of 10 weeks of a 0:30 second
TV spot. Because these spots will air during the summer months, the
rating points are slightly more expensive as fewer people are watching
TV during the summer therefore it is harder to capture as many people
versus the winter months. It is necessary to spend heavily during this
quarter, as this is the time that parents will be in first year set up
and will be looking into student credit card options. Heavier rating
points will be purchased in the Atlantic Provinces and Quebec, as these
markets require the most rating points. The TV spots will be supported
by 6 weeks of 0:15 second radio spots in order to reach those who do
not recall the Television advertisements.

Quarter 4

10% of the budget has been allocated for this quarter which
prohibits TV therefore 0:15 second radio spots will run during these
months with heavier rating points being purchased in the Atlantic and
Quebec. This quarter is following a continuity strategy just like quarter
two in order to reinforce the advertising message that was executed in
the previous quarters.

Market List

As per the BDI/MDI, the BDI in Atlantic is significantly higher than

the MDI therefore increased spending is required in order to defend
BMOs market share. Quebec is the only region in which BMOs BDI is a
lot less than its MDI therefore increased spending is required in order
to develop this market. As for the Ontario, British Columbia, and the
Prairies, the BDI is slightly greater than the MDI therefore maintained
spending is required in these markets.

Advertisement Duration

This campaign will include 0:30 second Television spots as

mentioned above which allows for creative flexibility as well as sight,
sound, and motion. The radio spots will be 0:15 seconds in length and
is the right fit for this campaign, as consumers are not required to
visualize the credit card.
Execution Versus Media Objectives
Spending by Region and City Size

British
Atlantic $ Quebec $ Ontario $ Prairies $ Total $
Columbia $
Television $139,140 $721,640 $1,147,200 $490,220 $357,000 $2,855,200
Radio $119,325 $291,660 $426,285 $201,720 $145,080 $1,184,070
Total $258,465 $1,013,300 $1,573,485 $691,940 $502,080 $4,039,270

% of Media
7% 25% 39% 17% 12% 100%
Expenditure

% Sales/
Allocation of
6% 22% 40% 19% 13% 100%
Media
Budget

Index %
Expenditure
116 114 98 89 92 100
/ Planned %
Allocation

Since the Atlantic region is out performing the market, spending has slightly increased versus the amount
allotted in order to defend BMOs market share position. In Quebec, BMO Student Master Cards are highly
underdeveloped compared to the market therefore heavier spending has been recommended in order to fuel growth in
this market. For Ontario, Prairies, and British Columbia less media expenditure is being recommended versus the
amount allotted in order to increase spending in Quebec. These three markets have a higher BDI than MDI therefore
maintained spending is required however, in order to fund increased growth in Quebec, the funding must come from
other markets. Fewer dollars were taken from Ontario as this market generates the most sales therefore it is important
to maintain this by continuing to spend aggressively.
Spending by Season (by Quarter)

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total $

Television $1,057,200 $1,798,000 $2,855,200
Radio $201,600 $595,200 $387,270 $1,184,070
Total $1,057,200 $201,600 $2,393,200 $387,270 $4,039,270

% of Media
26% 5% 59% 10% 100%
Expenditure

Allocation of
25% 5% 60% 10% 100%
Media Budget

Index %
Expenditure/
104 100 98 100 100
Planned %
Allocation

Quarterly media expenditure recommendations lined up exactly with budget allocation in quarters two
and three. A little bit extra was spent in quarter one as a $1,000,000 made it challenging to make an impact therefore
some media dollars had to be taken from quarter th
Budget Summary

Medium Total Gross $ % of Total

Television $2,855,200 71%

Radio $1,184,070 29%

Total 4,039,270 100%

Blocking Chart
Cost Details
Quarter One: Television
Quarter Two: Radio
Quarter Three: Television
Quarter Three: Radio
Quarter Four: Radio