Media Planning & Strategy

Media Planning - Lecture 2

Media Planning
y

Defined: the process of determining how advertising time & space will be used to achievement of marketing objectives. The ultimate goal is to place the advertising message before the target audience as many time as necessary.

Media Planning
y The planning decisions includes:
y Which audience to reach? y Where? y When? y How Long? y How Often?

Media Planning
y The media function was once largely a clerical function

(media buying), but now is a managerial or executive function. y Three reasons:

y Adoption of marketing concepts y Demands by advertisers for more accountability y Expansion of the media

Aperture Concept
y Aperture: the ideal moment for exposing consumers to an

advertising message.
y When the consumer is in the purchasing mode y When the consumer is in the information seeking mode (the

search corridor)
y In either case, advertising works best when interest &

attention are high.

The Media Plan

1. 2. 3. 4.

Media Objectives (Aperture Opportunities) Media Strategies Media Choices Flow Chart---Scheduling & Budgeting

Media Objectives
y y y

Target Audience Geographic scope Message weight

Media Strategies
y y y

Reach & Frequency Continuity Audience duplication

Media Choices
y y y y

Media mix or concentration Media efficiency Competitive media assessment Media Scheduling & Buying (Tactics)

Target Audience
y
y y y y

Goal: Match market to media

Demographics Product Usage Life Style Media Usage Patterns
y

Sources: Gallup Research & Media Logic

Demographics
y y y y

Most widely available of the data about audience. Easily collected & understood Limited in descriptive ability How many variables to use

Product Usage
y y

Typically divided into heavy, medium & light use. Infrequently used products dont lend themselves to this categorization.
y

Source: Gallup Research

Psychographics & Geo-targeting

y y y

More difficult to gather than other types of data Richer in descriptive & discrimination ability Until recently, not readily applicable to media decisions

Geographic Scope
y y y

Distribution patterns: even or uneven? Match media placement to patterns. National vs. regional vs. Local National: may use national media to provide consistent levels & local media to provide heavy-up.

Geographic Scope
y y y

Market by market sales: Not all market buy products at same rate. CDI & BDI analysis

BDI & CDI

y y y

BDI= Brand Development Index: how the brand is doing relative to some norm. CDI= Category Development Index: how the product category is doing relative to some norm. Typically, the norm is based on population.

BDI & CDI

Market A B C D Pop % 10% 8% 7% 9% Category Sales % 12% 6% 5% 11% Brand Sales % 9% 10% 6% 13%

BDI & CDI

CDI=(% Category Sales Divide % Pop)X 100 BDI=(% Brand Sales Divide % Pop)X 100

BDI & CDI

Market A B C D Pop % 10% 8% 7% 9% Category Brand Sales % Sales % 12% 9% 6% 5% 11% 10% 6% 13% CDI 120 75 71 122 BDI 90 125 85 144

Using BDI & CDI

y Reward good markets with more spot advertising. y That is, Fish where the fish are. y Or, Put your money where your market is. y Use advertising to solve advertising problems.

Timing
y Calendar patterns. y Almost all products have built-in seasonality. y Anticipate peak seasons with advertising. y May try to even out peaks and valleys. y Seasonal timing:
y Weather y Holiday Timing y Days-of-the-Week Timing y Hours-of-the-Day Timing

Creative Considerations
y Theme Characteristics: creative solution often suggests

which media should carry the message. y Message Characteristics: which medium tells the message best? Synergy. y Creative Performance Research: copy testing can indicate how much repetition is necessary.

Reach
y Reach: the percentage of audience units exposed to an

advertising message or schedule at least once during a specific time period (usually four weeks). y Reach is an estimate of unduplicated audience, i.e.., the total percentage of people exposed at least once.

Frequency
y Frequency: the average number of times an audience unit is

exposed to an advertising message or schedule during a specific time period (usually four weeks).

Reach & Frequency

y Reach & Frequency exist in a relationship such that when one

goes up, the other goes down (for a finite amount of advertising).

Reach & Frequency

y Reach is the most often expressed in terms of rating points y Ratings = the percentage of target audience exposed to a

particular media vehicle. y One rating point is the equivalent of one percent of the target audience.

Audience Measures
y Gross Rating Points (GRP) y A measure of the total gross weight delivered by a vehicle or

vehicles. y The sum of ratings for individual vehicles. y GRPs indicates duplicated audience because people are counted for each exposure.

Reach, Frequency & GRPs

Reach X Frequency = GRP

GRPs
GRPs 200 200 200 200 200 Ratings 10 20 25 50 100 Frequency 20 10 8 4 2

GRP Math
GRP Divided by Reach = Frequency GRP Divided by Frequency = Reach

GRPs as Currency
y GRPs Uses:
y As indicator of advertising weight : 400 GRPs vs. 200 GRPs. y As common unit of measure for: y Planning future advertising y Ascertaining results. y Gross Impressions: the sum of all the audience of all the vehicles

used in a media plan or schedule.

Gross Impression
Vehicle She Visage Fashion Col. Family S Pages Gross Impressions = Audience (Circ.) 140,000 70,000 105,000 320,000 56,000 691,000

GRPs & GRIMPS

y GRP & Gross Impression (GRIMPs) are opposite sides of the y y y y

same coin. GRP is a percentage, & GRIMP is the number. Number of people who spent at least one night in a hotel or motel in the last 12 months = 54,894,000 Number of people who spent at least one night in a hotel or motel & read Good Housekeeping = 6,727,000 Thus, Rating = 6,727,000 Divide 54,89,000 = 12.3%

Gross Impression
y Good Housekeeping Impression = 6,726,000 y Good Housekeeping Rating = 12.3% y Work it backwards: Impression =
y .123 X 54,894,000 = 6,726,000

Continuity
y A systematic pattern of placing advertising messages over

time in order to optimize target audience exposure. y Three general patterns employed:
y Continuous y Flighting y Pulsing y Burst

Continuity
y Continuous

= 200 GRPs
Total for year = 2400 GRPs

Continuity
y Flighting

= 400 GRPs
Total for year = 2400 GRPs

Continuity
y Pulsing

M A

M J

= 300 GRPs

= 100 GRPs

Total for the year = 2400 GRPs

Continuity
y Burst

M A

M J

= 1200 GRPs
Total for the year = 2400 GRPs

Cost Measures
y Absolute Cost: the ticket price for placing an ad in a

medium. y For example: Good Housekeeping cost for a full-page, four color ad = 5,0000 y Relative Cost: an analysis of the relative cost efficiency by comparing the cost & the audience generated.

Cost Efficiency
y Cost per Thousand (CPM)

Unit Cost Audience (000s) GH = 5,0000 6,726,000

X 1000 = CPM X 1000 = 7.43*

*CPM of a Good Housekeeping readers who have stayed in a hotel or motel in the past 12 months.

Cost Efficiency
y Cost per Point (CPP or CPRP): the relative cost of reaching

the equivalent of one percent of the target audience. y CPP = Unit Cost Divide Rating

Cost Efficiency
y Rarely is cost efficiency alone used to make media choices. y Not legitimate to compare across media, e.g.., tv CPM

against magazine CPM. y Cost efficiency is just one of the criteria media planners use to make media decisions.

Competitive Analysis
y Rival promotion: y Competitive spending patterns y Share of Voice y Share of Expenditure y Share of voice = share of mind = share of market

Problem with Share of Voice (SOV)

y SOV = one brand or companys proportion of total

competing messages in a medium or vehicle. y High correlation between SOV& levels of brand attitude y Avoid crowded media y Avoid seasonal increases

Media Choices
y Media popularity go where the audience is. Law of supply &

demand prevails. y Media audience profiles: more important then size is the quality of the audience. y Media cost forecasting:client hate surprisesespecially money surprises. y Media Characteristics: atmosphere, audience involvement, prestige.

Media Characteristics
y Selectivity
y Geographic selectivity: the ability of a medium to cover a

specific geographic area, such as a city, state or a region. Local vs. regional vs. national vs. international. y Class selectivity: the ability of a medium to reach specific kinds of people who possess certain common traits.

Media Characteristics
y Flexibility: refers to how much lead time is needed to place

the advertisement in a particular vehicle. y Local media tend to be more flexible than national media; broadcast media tend to be more flexible than print.

Media Characteristics
y Authority or prestige
y National Enquirer vs. New York Times

y Compatibility between Product & Vehicle

y Power tools & Family Handyman y Food Processors in Gourmet

y Positive Placement
y Rose Milk on Rose Parade y Olympic themed ads on Olympic

Strategic Placement
y Does strategic placement offset extra cost?
y P&G, Tapal & Lipton ads, for instance.

y Research spotty

Factors that Detract

y Clutter: a crowded or confused mass or collection. In TV,

clutter refers to non- program elements such as commercials, station Ids, credits, etc. y Advertisers tend to fight clutter with more advertising weight, leading to more clutter.

More on Clutter
y Advertisers demand commercial protection or competitive

separation
y In TV, a set minimum amount of time an advertiser requests to

separate its advertisement from those of directly competing. y In print, the number of pages an advertiser requests to be separated from the competition.

Thank You