2007 Thomson South-Western

Planning for and Analyzing Advertising

Media

Chapter Thirteen

Chapter Thirteen Objectives

• Describe the major factors used in segmenting target audiences for media planning purposes.

• Explain the meaning of reach, frequency, gross rating points, target rating points, effective reach, and other media concepts.

• Discuss the logic of the three-exposure hypothesis and its role in media and vehicle selection.

Chapter Thirteen Objectives

• Describe the use of the efficiency-index procedure for media selection.

• Distinguish the differences among three forms of advertising allocation: continuous, pulsed, and flighted schedules.

• Explain the principle of recency, or shelf-space model, and implications for allocating advertising expenditures over time.

Chapter Thirteen Objectives

• Perform cost-per-thousand calculations.• Interpret the output from computerized

media models.• Review actual media plans.

Media Versus Vehicles • Media are the general communication methods

that carry advertising messages—television, magazines, newspapers, and so on.

• Vehicles are the specific broadcast programs or print choices in which advertisements are placed.

• For example, television is the media, and

American Idol is the vehicle.

• Each medium and vehicle has a unique set of characteristics and virtues.

Messages and Media: A Hand-In-Glove Reaction

• Advertisers are placing more emphasis than ever on media planning.

• The choice of media and vehicles can be the most complicated of marcom decisions.

The Media-Planning Process

Media planning

The design of a strategy that shows how

investments in advertising time and space will contribute to the achievement of

marketing objectives.

Model of the Media Planning Process

Advertising Strategy

Advertising

Objectives

AdvertisingBudget

MessageStrategy

MediaStrategy

Media Strategy

• Target Audience Selection

• Objective Specification• Media and Vehicle• Media Buying

Marketing Strategy

Selecting the Target Audience

Four major factors

(1) Buyographics

(4) Lifestyle/psychographics

(2) Geographic

(3) Demographic

Specifying Media Objectives

1. What proportion of the population should be reached with advertising message during specified period (reach)

2. How frequently should audience be exposed to message during this period (frequency)

3. How much total advertising is needed to accomplish reach and frequency objectives (weight)

Specifying Media Objectives

4. How should the advertising budget be allocated over time (continuity)

5. How close to the time of purchase should the target audience be exposed to the advertising message (recency)

6. What is the most economically justifiable way to accomplish objectives (cost)

Reach

Percentage of target audience that is

exposed to an advertisement, at least

once, during a certain time frame

(usually four weeks)

Frequency

Average number of times, on average, during the media-

planning period that members of the target audience are exposed to the media vehicles that carry a

brand’s advertising message.

Weight

How much advertising volume is required to accomplish advertising objectives

Three weight metrics:

• Gross ratings

• Target ratings

• Effective ratings

What Are Ratings?

Ratings, in an advertising sense, simply mean the percentage of an audience that has an opportunity to see an advertisement placed in a particular vehicle.

Weight: Gross Rating Points

Gross rating points, or GRPs, are

an indicator of the amount of gross

weight that a particular advertising

schedule is capable of delivering

GRPs=Reach(R) X Frequency(F)

Determining GRPs in Practice

• GRPs are the sum of all vehicle ratings in a media schedule

• Rating: proportion of the target audience presumed to be exposed to a single occurrence of an advertising vehicle in which the advertiser’s brand is advertised

Weight: Target Rating Points (TRPs)

Adjust a vehicle’s rating to reflect just those individuals who match the advertiser’s target audience

The Concept of Effective Reach

• How often does the target audience have an opportunity to be exposed?

• Effective reach is based on the idea that an advertising schedule is effective only if it does not reach members of target audience too few or too many times

Effective Reach in Advertising Practice

• 3-10 exposures during a media-planning period (typically 4 weeks)

• Using multiple media

• Subjective factors must be considered

An Alternative: Frequency Value Planning

• The objective is to select the media schedule that generates the most exposure value per GRP.

Continuity

How advertising is allocated during the course of an advertising campaign: how should the media budget be distributed?

Continuous advertising schedule: an equal number of ad dollars are invested throughout the campaign

Pulsing: some advertising is used during every period of the campaign, but the amount of advertising varies from period to period.

Flighting: the advertiser varies expenditures throughout the campaign and allocates zero expenditures in some months.

Recency Planning (a.k.a. The Shelf-Space Model)

(1)Consumers’ first exposure to an advertisement is the most powerful

(2)Advertising’s primary role is to influence brand choice

(2) Achieving a high level of weekly reach for a brand should be emphasized over acquiring heavy frequency

Optimizing Weekly Reach

• Advertising teaches consumers

• Influence brand selection

• Messages are most effective when close to

purchase time

• Cost-effectiveness of first exposure is greater

than subsequent

• Allocate budget to reach consumers often

• Reach target audience continuously rather than sporadically

Cost considerations

Cost per Thousand (CPM)

Target Market (TM)

CPM= Cost of ad # of contacts (expressed in thousands)

CPM-TM= Cost of ad # of TM contacts

(expressed in thousands)

Tradeoffs

• Tradeoff must be made because media planners operate under the constraint of a fixed advertising budget

Media Planning Software

1. User develops a media database

2. User selects criterion for schedule optimization

3. User specifies constraints

4. User seeks out the optimum media schedule