Transcript Introduction to Advertising

Media Planning and Buying
Part 3: Practice: Where are Media Heading?
Chapter 11
Prentice Hall, © 2009
11-1
CHAPTER KEY POINTS
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?
Prentice Hall, © 2009
11-2
THE MEDIA PLANNING SIDE OF ADVERTISING
Media Planning Basics
• 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).
Prentice Hall, © 2009
11-3
THE MEDIA PLANNING SIDE OF ADVERTISING
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.
Prentice Hall, © 2009
11-4
THE MEDIA PLANNING SIDE OF ADVERTISING
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
Prentice Hall, © 2009
11-5
THE MEDIA PLANNING SIDE OF ADVERTISING
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.
Prentice Hall, © 2009
11-6
KEY MEDIA PLANNING DECISIONS
Target Audience and Media Use
• Identifying the target audience is a key
decision.
• The idea is to match the advertiser’s target
with a particular medium’s audience.
• Every media vehicle’s audience is different
and therefore varies regarding what percent of
its audience is in the brand’s target audience.
Prentice Hall, © 2009
11-7
KEY MEDIA PLANNING DECISIONS
The Aperture Concept
• Aperture: when consumers are most receptive
to a brand message.
• Goal: to reach the right people at the right
time with the right message.
• Advertising is most effective when it reaches
the right people at the right time and place
with the right message.
Prentice Hall, © 2009
11-8
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.
Prentice Hall, © 2009
11-9
KEY MEDIA PLANNING DECISIONS
Media Mix Selection
• Multiplying Media Strengths
– Media chosen based on plan objectives and media strengths
• 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.
• 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.
• Cross Media Integration
– Various media work together to create coherent brand
communication; synergy between different media messages
– Image transfer—how radio reinforces TV messages
Prentice Hall, © 2009
11-10
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).
Prentice Hall, © 2009
11-11
MEDIA STRATEGY TOOLS AND TECHNIQUES
Media 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
• The tighter the focus on a target market, the easier it is
to find appropriate media to deliver a relevant
message.
Prentice Hall, © 2009
11-12
MEDIA STRATEGY TOOLS AND TECHNIQUES
Media 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) determines the strength of
the brand in geographical areas.
– The CDI tells you where the category is strong and weak,
and the BDI tells you where your brand is strong and weak.
Prentice Hall, © 2009
11-13
MEDIA STRATEGY TOOLS AND TECHNIQUES
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
Prentice Hall, © 2009
11-14
MEDIA STRATEGY TOOLS AND TECHNIQUES
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
Prentice Hall, © 2009
11-15
MEDIA STRATEGY TOOLS AND TECHNIQUES
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
Prentice Hall, © 2009
11-16
MEDIA STRATEGY TOOLS AND TECHNIQUES
Cost Efficiency: CPMs and CPPs
• Used to measure a target audience’s size against
the cost of reaching that audience
• CPM (Cost per thousand)
– An estimate of the cost to expose 1,000 audience
members
– CPM = cost of message unit/gross impressions x
1,000
• CPP
– Comparing media vehicles by relating the cost of
the message to the audience rating.
– CPP = cost of message unit/program or issue
rating
Prentice Hall, © 2009
11-17
MEDIA STRATEGY TOOLS AND TECHNIQUES
The Media Budget
• The size of the budget greatly affects media
decisions
– A small budget campaign may not be able to
afford TV, but could afford radio
– A small budget may allow for only a local or
regional campaign or campaigns; a larger budget
may allow for a national campaign
• At the end of the planning process, the media
planner develops a pie chart showing media
allocations
Prentice Hall, © 2009
11-18
MEDIA STRATEGY TOOLS AND TECHNIQUES
IMC 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
Prentice Hall, © 2009
11-19
A SAMPLE MEDIA PLAN
Prentice Hall, © 2009
11-20
A SAMPLE MEDIA PLAN
Prentice Hall, © 2009
11-21
A SAMPLE MEDIA PLAN
Prentice Hall, © 2009
11-22
A SAMPLE MEDIA PLAN
Prentice Hall, © 2009
11-23
A SAMPLE MEDIA PLAN
Prentice Hall, © 2009
11-24
MEDIA BUYING
Media Buying Basics
• 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
Prentice Hall, © 2009
11-25
MEDIA PLANNING TRENDS
The Dynamic Media Landscape
• 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 the new ways
media is used and systems like TiVo and interactive TV
– Most media research measures independent media, not the
effectiveness of combined media.
Prentice Hall, © 2009
11-26
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Prentice Hall, © 2009
11-27