Media Planning

Chapter 8

Media Planning and Buying

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Learning Objectives Learn about major decisions involved in media planning. Understand fundamental terms of media planning. Learn how to calculate media measures. Learn to use secondary data frequently used in media planning. 2

Media Planning “I know half the money I spend On advertising is wasted, but I Can never find out which half.” (JW)

What is media planning? --The process of designing a course of action that shows how advertising time and space will be used to contribute to the achievement of marketing objectives. 3

Problems in Media Planning Insufficient information Inconsistent terminologies Time pressures Difficulty measuring effectiveness

Staging a Media Plan A Media Plan is a Written Document that Summarizes the Recommended Objectives, Strategies, and Tactics Pertinent to the Placement of a Company’s Advertising Messages. Background and Situation Analysis

Discusses Media Options, Opportunities and Target Audience.

Media Objectives & Aperture Opportunities

Goal or Task that Media Can Accomplish Based on Aperture Opportunities.

Strategy: Selection of Media

Explains Why a Single Medium or Set of Media is Appropriate.

Flow Chart Scheduling & Budgeting

Media Buyers Convert Objectives and Select, Negotiate, & Contract for Media Space. 5

Consumer Attitudes Toward Media (abbreviated) Authoritative

Influential

2% 3% 9% 5%

3% 11% 20%

81%

57%

9%

Television

Newspapers

Radio

Magazines

Don’t know

Changes in Percentage of Network Commercial by Length Other

100%

60 80%

30

60%

15

40% 20% 0%

1965

1975

1985

1987

1988

1990

1992

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Setting Media Objectives The Basic Goals That Direct Media Strategy Typically Focus on: Whom to Advertise To Which Geographic Areas to Cover When to Advertise What the Duration of the Campaign Should Be What the Size or Length of the Ad Should Be 8

Specifying Media Objectives 1. What proportion of the target audience should be exposed to our message “Reach” 2. How often should the target audience be exposed to our message? “Frequency” -- “Motivational frequency” -- “Effective reach and frequency”

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Threshold

Frequency

a. S-shaped response curve

Response

Response

Advertising Response Curves

Frequency

b. Convex response curve

When high frequency is required A new brand A smaller, less known brand A low level of brand loyalty Relatively short purchase and use cycle With less involved (motivated and capable) target audiences With a great deal of clutter to break through (Joseph Ostrow at Y & R, JAR, 11 1984)

Specifying Media Objectives (cont’d) 3. How much total advertising is necessary to achieve the reach and frequency objective? “Weight” (GRPs/TRPs, Gross Impressions) - FCB research: no awareness with <1000 GRPs

4. How to schedule the advertising campaign? “Scheduling” or “Continuity” - Continuous scheduling - Pulsing - Fighting

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Three Methods of Media Scheduling Continuity

Flighting Pulsing

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 13

Specifying Media Objectives (cont’d) 5. What is the least expensive way to accomplish media objectives? “Cost”: Absolute and relative costs - CPM or CPP: Measures cost efficiency

6. Other considerations -- Geographic coverage -- Qualitative media environment -- Recall research

* Confusing terms

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EXH 9-11

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How to Use Reach and Coverage Use Reach To express a whole number or percentage of different people actually exposed only once to a media vehicle to combination of vehicles. 

Example: Television program X reaches 9 million men aged 18-34 within a four-week period.



Example: Magazine Y has a reach of 25 percent of men aged 18-34 with an average issue. 16

How to Use Reach and Coverage Use Coverage To express the potential audience of a broadcast medium or the actual audience of a print medium exposed only once. 

Example: A network television program may have a coverage of 95 percent of TV homes in the U.S.



Example: Magazine Y has 25 percent coverage of men aged 18-34. (Means same as reach.) 17

Some Basic Terms Used in Media Planning •Gross impressions: the sum of the audience of all media vehicles used within a designated time period –Jeopardy: 3,270,000 x 4 messages =13,080,000 –People: 8,620,000 x 2 messages = 17,240,000 –Time:

1,700,000 x 2 messages = 3,400,000

–---> 33,720,000 gross impressions 18

Relative Cost: CPM = Cost of ad space X 1,000 /number of readers Time Per-page cost: $156,000

Newsweek Per-page cost: $144,000

Number of readers: 4.0 MM

Number of readers: 3.1 MM

CPM: $156,000X1,000/

CPM: $144,000X1,000/

4.0 MM =$39.00

3.1 MM =$46.45 19

Relative Cost:CPRP = Cost of ad time/Program rating Drew Carey

Survivor

Cost per spot ad: $3,500

Cost per spot ad: $4,000

Rating: 11

Rating: 15

CPRP: $3,500/11

CPRP: $4,000/15

=$318.18

=$266.64 20

Super Bowl Options Scenario 1 ($891,000; one 30-second spot on one primetime show each night of the week)

Scenario 2 ($895,000; a 30-second prime-time “roadblock” on Sunday and Monday nights)

Monday: Murphy Brown (CBS) Tuesday: Coach (ABC) Wednesday: 48 Hours (CBS) Thursday: Wings (NBC) Friday: Picker Fences (CBS) Saturday: The Commish (ABC) Sunday: CBS Sunday Night Movie

Sunday: ABC Sunday Night Movie CBS Sunday Night Movie NBC Sunday Night Movie Married …With Children (Fox) Monday: Day One (ABC) Dave’s World (CBS) Blossom (NBC) Fox Movie Comparison with Super Bowl XXVШ Rating point: +64% Reach: +25%

Comparison with Super Bowl XXVШ Ratings points: +48% Reach: +6% Source: N. W. Ayer (1994)

Notes: Ratings points/reach comparisons are based on adults 18-49. Reach is based on actual delivery of each schedule from the week of November 15, 1993. Nielsen’s cumulative audience data were used for this analysis. Costs were based on October Media Watch figures. A single Super Bowl commercial (30 seconds) cost $900,000 in 1994.

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Some basic terms used in media planning (cont’d) GRPs: the sum of the total exposure potential of a series of media vehicles as a % of the audience population -- GRPs = Reach x Average frequency TRPs: ….. As a % of the target audience population 22

U.S. Main Media Volume (in percentage), Analyzed by Media Groups Total Newspaper Magazine Television Radio Outdoor

1978 100.0 43.5 14.0 30.8 10.1 1.6

1997 100.0 37.6 8.9 40.1 12.1 1.3

SOURCE: reprinted with permission from Advertising Age, various dates. Copyright Crain Communications Inc., 1998.

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Using Electronic Media T y p e s o f T e le v is io n A d v e r t is in g N e t w o r k A d v e r t is in g

S p o t A d v e r t is in g

S y n d ic a t io n

- S p o n s o r s h ip - P a t ic ip a t io n

- N a t io n a l a n d L o c a l

- O f f - n e t w o r k s y n d ic a t io n v . f ir s t - r u n s y n d ic a t io n - S t r a ig h t c a s h v . b a r t e r s y s t e m

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Using Electronic Media Rating/Share/HUTS CDI and BDI

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Rating =

Total HHs tuned to a program Total HHs with TV set at home

×100

Share =

Total HHs tuned to a program Total HHs with TV set on

×100

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HUT=

Total HHswith TVseton ×100 Total HHswith TVsetathome

Rating = Share × HUT

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CDI and BDI The Brand Development Index (BDI) helps marketers factor the rate of product usage by geographic area into the decision process.

BDI=

percentage ofbrand tototal U.S.sales inthemarket ×100 Percentage oftotal U.S.population inmarket

The Category Development Index (CDI)

is computed in the same manner as the BDI, except it uses information regarding the product category (as opposed to the brand) in the numerator.

CDI=

Percentage ofproduct category total sales inmarket ×100 Percentage oftotal U.S.population inmarket 28

Using CDI and BDI to determine market potential CDI=

Percentage ofproduct category sales inUtah/Idaho ×100 Percentage oftotal U.S.population inUtah/Idaho

2% = ×100 1%

= 200

BDI=

percentage oftotal brand sales inUtah/Idaho ×100 Percentage oftotal U.S.population inUtah/Idaho

1.2% = ×100 1%

=120 29

Using BDI and CDI Indexes v

High BDI

Low BDI

High CDI

High market share Good market potential

Low market share Good market potential

Low CDI

High market share Monitor for sales decline

Low market share Poor market potential

High BDI and high CDI

This market usually represents good sales potential for both the product category and the brand.

High BDI and low CDI

The category is not selling well, but the brand is; probably a good market to advertise in but should be monitored for declining sales.

Low BDI and high CDI

The product category shows high potential but the brand is not doing well; the reasons should be determined.

Low BDI and low CDI

Both the product category and the brand are doing 30 poorly; not likely to be a good place for advertising.

Using Printing Media Newspaper rate -- SAUs (Standard Advertising Unites) in 1984 -- Flat rate v. open rate -- Run-of-paper v. preferred position rate -- Combination rate: several nps as a group -- National advertisers pay much more for newspaper space 31

Using Print Media Magazine circulation 

Primary circulation (in-home readers): Subscription + news stand (a single copy circul.)  A basis for rate structure 

Secondary circulation (out-of-home readers)  Paid circulation v. controlled circulation  Guaranteed circulation v. verified circulation  ABC (Audit Bureau of Circulations)  Total audience=readers per copy x circulation of an average issue 

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SMRB/MRI Reading Base: Female Homemakers Top Row: There are 86,474,000 female homemakers in the U.S. Column A: 77,418,000 female homemakers use breakfast cereals. Column B: All female homemakers using breakfast cereals is equal to 100% (i.e., base). Column C: 89.5% of the total female homemakers use breakfast cereals . 77,418,000 ×100 = 89.5% 86,474,000

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Second Row: There are 3,925,000 female homemakers who read the magazine, Money. Column A: 3,448,000 readers of Money use breakfast cereals. Column B: 4.5% of all users of breakfast cereals read Money. 3,448,000

77,418,000

×100 = 4.5%

Column C: 87.8% of Money readers are users of breakfast cereals 3,448,000

3,925,000

×100 = 87.8%

Column D: Money readers are 2% less likely to use breakfast cereals than all U.S. female homemakers

.

87.8 ×100 = 98 89.5 34

Review Learn about major decisions involved in media planning. Understand fundamental terms of media planning. Learn how to calculate media measures. Learn to use secondary data frequently used in media planning. 35