Media Planning & Strategy

Media Planning - Lecture 2

Media Planning

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

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

Media Planning

The media function was once largely a clerical function (media buying), but now is a managerial or executive function.

Three reasons:Adoption of marketing conceptsDemands by advertisers for more

accountabilityExpansion of the media

Aperture Concept

Aperture: the ideal moment for exposing consumers to an advertising message.When the consumer is in the purchasing

modeWhen the consumer is in the information

seeking mode (the search corridor)In either case, advertising works best when

interest & attention are high.

The Media Plan

1. Media Objectives (Aperture Opportunities)

2. Media Strategies3. Media Choices4. Flow Chart---Scheduling & Budgeting

Media Objectives

Target Audience Geographic scope Message weight

Media Strategies

Reach & Frequency Continuity Audience duplication

Media Choices

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

Target Audience

Goal: Match market to media Demographics Product Usage Life Style Media Usage Patterns

Sources: Gallup Research & Media Logic

Demographics

Most widely available of the data about audience.

Easily collected & understood Limited in descriptive ability How many variables to use

Product Usage

Typically divided into heavy, medium & light use.

Infrequently used products don’t lend themselves to this categorization.

Source: Gallup Research

Psychographics & Geo-targeting

More difficult to gather than other types of data

“Richer” in descriptive & discrimination ability

Until recently, not readily applicable to media decisions

Geographic Scope

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

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

BDI & CDI

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 & CDIMarket Pop % Category

Sales %Brand Sales %

A 10% 12% 9%

B 8% 6% 10%

C 7% 5% 6%

D 9% 11% 13%

BDI & CDI

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

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

BDI & CDIMarket Pop % Categor

y Sales %

Brand Sales %

CDI BDI

A 10% 12% 9% 120 90

B 8% 6% 10% 75 125

C 7% 5% 6% 71 85

D 9% 11% 13% 122 144

Using BDI & CDI“Reward” good markets with more “spot”

advertising.That is, “Fish where the fish are.”Or, “Put your money where your market is.”Use advertising to solve advertising

problems.

TimingCalendar patterns.Almost all products have built-in

seasonality. Anticipate peak seasons with advertising.May try to even out peaks and valleys.Seasonal timing:

WeatherHoliday TimingDays-of-the-Week TimingHours-of-the-Day Timing

Creative ConsiderationsTheme Characteristics: creative solution

often suggests which media should carry the message.

Message Characteristics: which medium tells the message best? Synergy.

Creative Performance Research: copy testing can indicate how much repetition is necessary.

ReachReach: the percentage of audience units

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

Reach is an estimate of unduplicated audience, i.e.., the total percentage of people exposed at least once.

FrequencyFrequency: 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 & FrequencyReach & Frequency exist in a relationship

such that when one goes up, the other goes down (for a finite amount of advertising).

Reach & FrequencyReach is the most often expressed in terms

of rating pointsRatings = the percentage of target

audience exposed to a particular media vehicle.

One rating point is the equivalent of one percent of the target audience.

Audience MeasuresGross Rating Points (GRP)A measure of the total gross weight

delivered by a vehicle or vehicles.The sum of ratings for individual vehicles.GRPs indicates duplicated audience

because people are counted for each exposure.

Reach, Frequency & GRPs

Reach X Frequency = GRP

GRPs

GRPs Ratings Frequency

200 10 20

200 20 10

200 25 8

200 50 4

200 100 2

GRP Math

GRP Divided by Reach = FrequencyGRP Divided by Frequency = Reach

GRPs as CurrencyGRPs Uses:

As indicator of advertising weight : 400 GRPs vs. 200 GRPs.

As common unit of measure for:Planning future advertisingAscertaining results.

Gross Impressions: the sum of all the audience of all the vehicles used in a media plan or schedule.

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

GRPs & GRIMPS GRP & Gross Impression (GRIMPs) are

opposite sides of the 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 ImpressionGood Housekeeping Impression =

6,726,000Good Housekeeping Rating = 12.3%Work it backwards: Impression =

.123 X 54,894,000 = 6,726,000

ContinuityA systematic pattern of placing advertising

messages over time in order to optimize target audience exposure.

Three general patterns employed:ContinuousFlightingPulsingBurst

ContinuityContinuous

= 200 GRPs

Total for year = 2400 GRPs

ContinuityFlighting

= 400 GRPs

Total for year = 2400 GRPs

Continuity

J F M A M J J A S O N D

Pulsing

= 300 GRPs = 100 GRPs

Total for the year = 2400 GRPs

Continuity

J F M A M J J A S O N D

Burst

= 1200 GRPs

Total for the year = 2400 GRPs

Cost MeasuresAbsolute Cost: the “ticket price” for placing

an ad in a medium.For example: Good Housekeeping cost for a

full-page, four color ad = 5,0000Relative Cost: an analysis of the relative

cost efficiency by comparing the cost & the audience generated.

Cost EfficiencyCost per Thousand (CPM)

Unit CostAudience (000s) X 1000 = CPM

GH = 5,00006,726,000 X 1000 = 7.43*

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

Cost EfficiencyCost per Point (CPP or CPRP): the relative

cost of reaching the equivalent of one percent of the target audience.

CPP = Unit Cost Divide Rating

Cost EfficiencyRarely is cost efficiency alone used to make

media choices.Not legitimate to compare across media,

e.g.., tv CPM against magazine CPM.Cost efficiency is just one of the criteria

media planners use to make media decisions.

Competitive AnalysisRival promotion:Competitive spending patternsShare of VoiceShare of ExpenditureShare of voice = share of mind = share of

market

Problem with Share of Voice (SOV)SOV = one brand or company’s proportion

of total competing messages in a medium or vehicle.

High correlation between SOV& levels of brand attitude

Avoid crowded mediaAvoid seasonal increases

Media ChoicesMedia popularity go where the audience is.

Law of supply & demand prevails.Media audience profiles: more important

then size is the quality of the audience.Media cost forecasting:client hate

surprises…especially money surprises.Media Characteristics: atmosphere,

audience involvement, prestige.

Media CharacteristicsSelectivity

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.

Class selectivity: the ability of a medium to reach specific kinds of people who possess certain common traits.

Media CharacteristicsFlexibility: refers to how much lead time is

needed to place the advertisement in a particular vehicle.

Local media tend to be more “flexible” than national media; broadcast media tend to be more flexible than print.

Media CharacteristicsAuthority or prestige

National Enquirer vs. New York TimesCompatibility between Product & Vehicle

Power tools & Family HandymanFood Processors in Gourmet

Positive PlacementRose Milk on Rose ParadeOlympic themed ads on Olympic

Strategic PlacementDoes strategic placement offset extra cost?

P&G, Tapal & Lipton ads, for instance.Research spotty

Factors that DetractClutter: a crowded or confused mass or

collection. In TV, clutter refers to non- program elements such as commercials, station Ids, credits, etc.

Advertisers tend to fight clutter with more advertising weight, leading to more clutter.

More on ClutterAdvertisers demand “commercial

protection” or “competitive separation”In TV, a set minimum amount of time an

advertiser requests to separate its advertisement from those of directly competing.

In print, the number of pages an advertiser requests to be separated from the competition.

Thank You