Transcript moriarty8e_media_11

Advertising Principles
and Practices
Media Planning
and Buying
Questions We’ll Answer
• What is media aperture, and why is it
important?
• How do media planners calculate
media objectives?
• What are the key media strategy
decisions?
• What are the responsibilities of media
buyers?
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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
Visit the
24- to 30-year- old males.
Site
• A variety of media drove
traffic, created buzz,
and engaged the
audience.
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The Media Planning Side
of Advertising
• Advertising budgets are shifting away from
traditional media (newspapers, TV, radio)
to online and alternative media.
• Media planning and buying have become
more creative due to media fragmentation
and the explosion of new media.
• Media is used in advertising, public
relations, sales promotion and integrated
marketing communications (IMC).
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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: finding 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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Key Media Planning Decisions
• Measured Media Objectives
– Goal: to achieve the best media mix to maximize reach
and frequency and generate the greatest impact for the
money spent.
– Reach: percent of different people exposed to the message.
– Frequency: the number of times exposure is expected.
– Effective frequency: combines reach and frequency; add
frequency to reach until the level at which people respond.
– Media efficiency and waste: excessive overlap or too
much frequency.
Principle:
Reach is the first place to start in setting objectives for a
media plan.
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Key Media Planning Decisions
• Media Mix Selection
– Multiplying Media Strengths
• Media chosen based on plan
objectives and media
strengths
– GRPs and TRPs
– Cross Media Integration
• Various media work together
to create coherent brand
communication; synergy
between different media
messages
• Image transfer—how radio
reinforces TV messages
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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
3
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.
– Includes 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)
determines rates of consumption for
a product category.
– Brand development index (BDI) is
determines the strength of the brand
in geographical areas.
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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IMC Media and
Contact Point Planning
• IMC considers all important brand contact
points, not just traditional mass media and
advertising.
– See www.prenhall.com/moriarty for a list
• Contact Point Planning
– Identify a wide variety of contact points for
achieving goals
– Implement integrated communication programs
that eliminate waste
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Sample List of Contact Points
Visit the
Site
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Global Media Strategies
• Global media do not currently exist.
• Advertisers must deal with different networks and
different vehicles in different countries.
• Despite regional limitations, satellite television gives
advertisers the opportunity to deliver unified
messages across continents.
• North American, European, Asian, and Latin
American cable companies offer international
networks.
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Major
Sections of
a Media
Plan
• Objectives
• Strategic plan
development:
consumer
insights
• Key media
strategies
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Media Buying
• A media plan is a set of recommendations a client
must approve before further action.
• Once approved, media buyers convert objectives and
strategies into tactics.
–
–
–
–
–
–
–
–
–
Provide inside information to media planners
Select specific media vehicles
Negotiate and contract for time and space
Bargain for preferred positions
Secure extra support/value-added media services
Monitor media choices during and after the campaign
Handle billing and payment
Ensure make goods
Perform post-campaign evaluation
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Functions of a Media Buyer
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Media Planning Trends
• Unbundling Media Planning and Buying
– Agencies media departments have become separate, independent
profit centers and can work for the agencies’ competition, and
compete with agencies for the planning function.
• Online Media Buying
– Goggle's Adwords and eBay’s Media Marketplace are selling
Internet advertising online.
– Zimmerman (advertising agency) sells advertising online for a
number of media including print, radio, direct mail, in-store ads,
and the Internet.
• New Forms of Media Research
– Online media research (hits and clicks) don’t measure impact.
– Traditional media monitoring systems don’t address new ways
media is used and systems like TiVo and interactive TV.
– Most media research measures independent media, not the
effectiveness of combined media.
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Google AdWords
• With Google AdWords, you create your own ads
and choose keywords (words or phrases related to
your business). When people search on Google
using one of those keywords, your ad may appear
next to the search results. People can then click
your ad to make a purchase or learn more about
you.
Visit the
Site
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eBay Media Marketplace
• Called “A New Approach to Offline Advertising,”
The eBay Media Marketplace offers advertisers a
place to make planned buys in the national cable TV
market and last-minute buys on radio in all 300 top
U.S. radio markets.
Visit the
Site
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Discussion Questions
Discussion Question 1
• You have just begun a new job as a media
planner for a new automobile model from
General Motors.
• The planning sequence will begin in four
months, and our media director asks you what
data and information you need from the
media research department.
• What sources should you request?
• How will you use each of these sources in the
planning function?
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Discussion Question 2
• The marketing management of
McDonald’s restaurants has asked you
to analyze the aperture opportunity for
its breakfast entrees.
• What kind of analysis would you
present to management?
• What recommendations could you make
that would expand the restaurant’s
nontraditional, as well as traditional,
media opportunities?
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Discussion Question 3
• Your client is a major distributor of movies. Its early media plan
for magazines has been settled, and you are in negotiation when
you learn that a top publishing company is about to launch a new
magazine dedicated to movie fans and video collectors.
• Although the editorial direction is perfect, there is no valid way
to predict how the magazine will be accepted by the public.
Worse, there won’t be solid research on readership for at least a
year.
• The sales representative offers a low charter page rate if the
advertiser agrees to appear in each of the first year’s 12 issues.
To use it you will have to remove one of the established
magazines from your list.
• Is the risk worthwhile? Should you bother the client with this
information, considering that the plan is already set?
• The new magazine will also be available online. Should you take
advantage of this opportunity?
• Make some recommendations to your client and explain your
reasoning.
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