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Transcript of 434ch8-mediaplan2012
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CHAPTER 8
Media Selection in Advertising
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What kinds of ads get your attention? Are they found intraditional media like television or unusual places?
Where is the most unique or oddest place that youhave seen an ad?
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This ad was above a urinal.
Attention gettingad? Why or why
not?
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Media Planning
Focus on consumer behaviour
Create plans that reflect the purchase process
(Chapter 3) Influence consumerin the marketplace Study media choices
Listening and viewing habits
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8-5
Media Planning
An advertisement by
New Balance placed inRunners World
magazine by the media
planner.
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Components of a Media Plan
Marketing analysis
Advertising analysis
Media strategy Media schedule
Justification and summary
See course website for a document containing moredetail
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Factors that have changed the role of Media
IMC more than just mass advertising now
Cost factors
Technology
Globalization Complexity of the media function
Profitability
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Media Selection Factors
Reasons as to why certain media are selected:
Organizational Objectives
Target market(s)
Costs Message Theme
Constraints
Product/Service considerations
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F I G U R E 8 . 5Developing Logical Combinations ofMedia - Table 8.9
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Advertising Terminology
Reach Number in target audience exposed
Typically 4-week period
Frequency
Average number of exposures
Opportunities to see (OTS)
Cumulative exposures
Placements x frequency
Gross rating points (GRPs) Measures impact of intensity of media plan
Vehicle rating x OTS (number of insertions)
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Advertising Terminology
CostsCost per thousand (CPM)CPM allows for cost comparisons
Ratings and Cost per Rating Point (CPRP)Ratings measure percent of target market exposed by medium
CPRP allows for comparison across mediaCost of media buy / vehicles ratingWeighted CPM
ImpressionsGross impressions total audience exposed to ad
ContinuityContinuous campaignPulsating campaignFlighting (or discontinuous) campaign
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Table 8.1
Magazine
Cost for 4-
color fullpage ad
Total
readership(000's)
CPM
Total
Target Market (20M)
Rating(Reach)
Cost per RatinPoint (CPRP)
National Geographic $346,080 21,051 $16.44 16.1 $21,496
Newsweek $780,180 15,594 $50.03 12.2 $63,949
People $605,880 21,824 $27.76 9.4 $64,455
Southern Living $11,370 5,733 $1.98 2.4 $4,738
Sports Illustrated $965,940 13,583 $71.11 10.5 $91,994
Time $1,324,282 21,468 $61.69 15.9 $83,288
Travel & Leisure $183,216 2,205 $83.09 2.3 $79,659
U.S. News $100,740 8,929 $11.28 8.3 $12,137
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Ad Campaign Continuity
Continuous campaign
Advantages:
Serves as a constant reminder to the customer
Covers the entire buying cycleDisadvantages:
Higher costs
Potential for overexposure
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Flighting Campaign
Advantages: Cost efficiency of advertising, only used during
purchase cyclesAllows for more than one medium or vehicle on
limited budgetsDisadvantages: Lack of awareness, interest, retention or
promotional message during non-scheduled times
could lead to decay
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Pulsating Campaign
Advantages:
Same as the two previous methods
Disadvantage:
Not required for seasonal products, or other cyclicalproducts, therefore adding to organizationsexpenses
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Selecting Media
o Televisiono Radio
o Transit
o Billboard
o Outdooro Internet
o Magazines
o Newspapers
o Direct Mailo Alternate media
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How Important Is Advertising to
Magazines?
The chart below shows the top five magazines and thepercentage of their revenues generated by advertising,subscriptions and newsstand sales
Total Revenue Advertising Subscribers NewstandTV Guide $1,172,127,000 41.9% 43.2% 14.9%
People $1,155,395,000 61.8% 18.9% 19.3%
Time $962,651,000 68.4% 27.2% 4.4%Sports Illustrated $905,313,000 67.8% 28.6% 3.6%
Better Homes & Garden $595,667,000 74.6% 23.0% 2.4%
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Achieving Advertising Objectives
1. Three-exposure hypothesis Intrusion value Takes a minimum of three exposures for an ad to be
effective Effective frequency number of times that one must be
exposed to message to achieve its objective Effective reach - % of target market that must be exposed
to ad to achieve its objective
Size, placement, length of ad are factors to consider Number of media used is important (variability)
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Achieving Advertising Objectives
2. Recency theory
One exposure may be enough
Effective the closer to a purchase
States that consumers use selective retention when theyconsider ads.
Advertising is a waste of money when intended market is notreached
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Achieving Advertising Objectives
o Media Multiplier Effecto The combined impact of using two or more media is stronger
than using either medium alone
o Often the reason for using several different media
o This ensures a broader effective reach
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F I G U R E 8 . 8
U.S. Advertising Expenditures by Media for Coca-Cola
Magazine, 17.7%
Newspaper, 3.1%
Television, 63.4%
Radio, 7.2%
Outdoor, 6.9%Internet, 1.8%
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Advertising Expenditures by Category
Source: Based on 100 Leading NationalAdvertisers,Advertising Age, (June 25, 2007), p. 9.
Category Total Magazines Newspapers Outdoor Television Radio Internet
Automotive $19.799 11.0% 25.4% 1.7% 50.4% 7.8% 3.7%
Retail $19.114 11.0% 35.4% 2.0% 33.8% 11.2% 6.6%
Telecommunications $10.950 8.2% 19.8% 2.5% 48.7% 7.1% 13.6%
Financial services $8.689 13.7% 21.8% 2.8% 36.3% 8.3% 17.0%
Food, beverages,candy $7.225 27.6% 0.7% 1.1% 64.2% 4.5% 1.8%
Restaurants $5.291 2.5% 3.5% 4.5% 78.4% 10.1% 0.9%
Apparel $2.911 75.1% 2.0% 1.0% 19.8% 0.7% 1.3%