Transcript Document

Advertising Principles
and Practices
Media Planning
and Buying
Audi Reaches Elusive Audience
• Audi needed to launch its new
luxury A3 hatchback on a
comparatively reduced budget.
\ a Web-based
• They used
alternative reality game to
reach the skeptical, affluent
24- to 30-year- old males.
• A variety of media drove
traffic, created buzz, and
engaged the audience.
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Key Players
• Traditionally, advertising
agencies develop media plans.
• Lately, media buying
companies have assumed
planning roles.
• Agencies have spun off media
function as separate
companies.
• Some media planning is done
by companies in-house.
• Specialized “new media”
agencies have emerged.
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Media Research:
Information Services
• Client Information
– About customers, past efforts, sales, budget
• Market Research
– About markets and product categories; supplied by companies
MRI, Scarborough, Mendelsohn
• Competitive Advertising
– Share of voice is a percentage of total advertising spending by one
brand in a product category.
• Media Usage Profiles
– The size and makeup of various media audiences
– Supplied by companies Nielsen, Arbitron, ABC, Simmons
• Media Coverage Area
– Designated marketing area (DMA) is used in TV media
• Consumer Information
– Used to locate target audiences within media markets
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The Central Role of Media
Research
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The Media Plan
• Media Plan: a written
document summarizing
the objectives and
strategies pertinent for
placing a company’s
brand messages.
• Goal: find the most
efficient and effective
ways to deliver
messages to a targeted
audience
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Key Media Planning Decisions
• Target Audience and Media Use
– Match the advertiser’s target with a
particular medium’s audience.
• The Aperture Concept
– Aperture: when consumers are
most receptive to a brand message.
– The goal is to reach the right
people at the right time with the
right message.
Principle:
Advertising is most effective when it reaches the right people
at the right time and place with the right message.
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Measured Media Objectives
• Goal: arrive at the best media
mix to maximize reach and
frequency and generate the
greatest impact for the money.
• Media objectives: what
companies want to achieve in
delivery of brand messages and
impact on target audiences.
• Reach
• Frequency
• Effective frequency
• Media efficiency and waste
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Calculating GRPs
• GRPs (Gross Rating Points) are found by multiplying each
media vehicle’s rating by the number of insertions, then adding
up the total of all the vehicles.
Table 11.1.A
Calculating GRPs – Plan A R=35; F=6.9
Program
HH Rating
Insertions
GRPs
6
7
9
4
8
8
8
8
Total
48
56
72
32
208
Survivor
Lost
American Idol
24
Table 11.1.B
Calculating GRPs – Plan B R=55; F=3.2
Program
HH Rating
Insertions
GRPs
6
7
5
4
8
8
8
8
Total
48
56
40
32
176
Survivor
Desperate Housewives
Boston Legal
Monday Night Football
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Calculating TRPs
• TRPs (Targeted Rating Points) adjusts the GRP calculation
so it more accurately reflects the percentage of the target
audience watching the program, thus reducing waste
coverage
Table 11.2
Program
Survivor
Lost
American Idol
24
Calculating Targeted GRPs – Plan A
HH Rating
6
7
9
4
Targeted Rating
3
3
1
3
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Insertions
GRPs
8
8
8
8
Total
24
24
8
24
80
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Media Strategy Tools
and Techniques
• Media Strategy
– The way media planners determine the most cost effective
media mix to reach the target audience and satisfy the
media objectives.
– Include decisions focusing on who (target audience), what
(the media used), when (time frame), how long (duration),
and how big (size).
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Delivering on Objectives
• Plans may emphasize reach or frequency
• High reach strategy
– Used to deliver reminders for well-known products
– Used to launch a new, easy-to-understand product
• Low frequency strategy
– Used with well-known brands and simple messages
• High frequency strategy
– Used with more complex products that require repetition
– Used to build excitement about a new product or event
– Used to counter competition or build share of voice
Principle:
The tighter the focus on a target market, the easier it is to
find appropriate media to deliver a relevant message.
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Delivering on the
Targeting Strategy
• Media Use
– The goal is to match consumer
insights with media information
• Geographical Strategies
– Heavy up in DMAs where the
product is available or projected
sales are higher
– Category development index
(CDI)
– Brand development index (BDI)
Principle:
The CDI tells you where the category is strong and weak, and the
BDI tells you where your brand is strong and weak.
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Delivering on the Media
Mix Strategy
• Media Weighting
– How much to budget in each DMA
or region and for each target group.
– Used with seasonality, geography,
audience segments, or level of
brand development by DMA.
• Size, Length, and Position
– Based on advertising objectives.
– A technical/informational ad may
require more time or space while a
reminder add will require less.
• Media Optimization Modeling
– A computer technique that enables
marketers to determine the relative
impact of a media mix on product
sales and optimize efficiency.
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Scheduling Strategies
• Timing strategies: When to advertise?
– Seasonality, holidays, days of the week, time of day
– Lead time: time between thinking about purchase and
purchasing; also refers to production time to get an ad in a
medium
• Duration: How long?
– Advertisers can’t afford to cover the entire year
– If the period is too short, the message may not have
sufficient impact
– If the period is too long, the ads may suffer from wearout
• Continuity: How often?
– How advertising is spread out over the length of the
campaign
– Continuous strategy spreads ads evenly over campaign
period
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Scheduling Strategies
• Flighting strategy
– Alternating periods of intense advertising activity
(bursts) and no advertising (hiatus)
• Pulsing strategy
– Advertising is intensified (peaks) before an aperture and
reduced to lower levels (valleys) until the aperture
reopens; bursts of activity
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Cost Efficiency: CPMs and CPPs
• Used to measure a
target audience’s
size against the
cost of reaching
that audience
• TCPM (Target
CPM) and TCPP
(Target CPM) can
be figured using
the percentage of
viewers or readers
in the target
audience
Cost per thousand (CPM)
Cost of message unit
x 1,000
Gross Impressions
Cost per point (CPP)
Cost of message unit
Program or issue rating
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The Media Budget
• The size of the
budget greatly affects
media decisions
– Local vs. national
– TV vs. radio
• At the end of the
planning process, the
media planner
develops a pie chart
showing media
allocations
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Major
Sections of
a Media
Plan
• Objectives
• Strategic plan
development:
consumer
insights
• Key media
strategies
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Functions of a Media Buyer
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Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
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