Transcript Media Planning and Analysis

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Media Planning and
Analysis
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter Objectives
After reading this chapter you should be able to:
1. Describe the major factors used in segmenting
target audiences for media planning purposes.
2. Explain the meaning of reach, frequency, gross
rating points, target rating points, effective reach,
and other media concepts.
3. Discuss the logic of the three exposure hypothesis
and its role in media and vehicle selection.
4. Describe the use of the efficiency index procedure
for media selection.
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter Objectives (cont’d)
5. Distinguish the differences among three forms of
advertising allocation: continuous, pulsed, and
flighted schedules.
6. Explain the principle of recency and its
implications for allocating adverting expenditures
over time.
7. Perform cost-per-thousand calculations.
8. Review the application of media planning software
and actual media plans.
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Is Super Bowl Advertising Worth the Expense?
Clint Eastwood and “Halftime in America”
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Media versus Vehicles
• Media are the general communication methods that carry
advertising messages—television, magazines, newspapers, and so
on.
• Vehicles are the specific broadcast programs or print choices in
which advertisements are placed.
• For example, television is the media, and American Idol is the
vehicle.
• International media vehicle options: www.kidon.com/media-link
• Several years ago, GM tried consolidating its media planning and
buying into one organization (GM Planworks) and others have tried
this strategy.
• Creating effective messages is critical, but it is just as essential that
the messages are placed in the right media and vehicles.
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Figure 16.1: Model of the Media-Planning
Process
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The Media-Planning Process
1. Selecting the
target audience
2. Specifying
media
objectives
3. Selecting
media
categories and
vehicles
4. Buying media
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Selecting the Target Audience
• The target audience should be pinpointed, otherwise
exposures may be wasted, and prime candidates
missed.
• Four major types of information are used in
segmenting target audiences:
•
•
•
•
Behavioral data
Geographic data
Demographics
Lifestyle/Psychographics
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Specifying Media Objectives
1. What proportion of the population should be
reached with vehicles containing the advertising
message during specified period (reach)
2. How frequently should audience be exposed to the
vehicles with the message during this period
(frequency)
3. How much total advertising is needed to
accomplish reach and frequency objectives
(weight)
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Specifying Media Objectives (cont’d)
4. How should the advertising budget be allocated
over time (continuity)
5. How close to the time of purchase should the target
audience be exposed to the vehicles with the
advertising message (recency)
6. What is the most economically justifiable way to
accomplish objectives (cost)
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Gross Impressions
(“total exposures” or “duplicated audience”)
• Gross Impressions: Total audience (homes)
exposed during the specified time period to
any of the media vehicles containing the ad
messages on any occasion.
• Average freq. = gross impressions / net
coverage
• e.g., 2.22 = 20 / 9
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Reach (%)
• Reach: The percentage of a target audience
(e.g., homes) that is exposed at least once
(e.g., 1, 2, 3, ...) during a specified time frame
to the media vehicles containing the ad
message.
• e.g., 90% (9 of 10 homes)
90 = reach or “1+ exposures”
9 = “net coverage” or “unduplicated audience”
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Determinants of Reach
• More people are reached when a media
schedule…
• Uses multiple media
• Diversifies vehicles within each medium
• Varies the dayparts
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Average Frequency
• Frequency: The average number of times
during the specified time period that
members (homes) in the target audience
are exposed to the media vehicles
containing advertiser's message
• e.g., 2.22 times
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Hypothetical Frequency Distribution for the Smart
Car Advertised in Cosmopolitan Magazine
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The Concept of Frequency Distribution
• In the hypothetical situation, 90% of the
Fortwo’s target audience is reached by
the advertising schedule and they are
exposed an average of 2.2 times during
the four-week advertising schedule in
Cosmopolitan.
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Weight
• Weight: Represents how much advertising volume is
required to accomplish advertising objectives.
• A rating (in general) is the percentage of an audience
that has an opportunity to see an ad placed in a
vehicle.
• Three weight metrics:
• Gross ratings
• Target ratings
• Effective ratings
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Weight: Gross Rating Points
• Gross rating points, or GRPs, are an indicator
of the amount of gross weight that a particular
advertising schedule is capable of delivering
• GRPs = Reach(R) x Frequency(F)
• e.g., 200 = 90 x 2.22
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Determining GRPs in Practice
• Rating: The proportion of the target audience
exposed to a single issue of an advertising
vehicle
• GRPs are the sum of all vehicle ratings in a
media schedule
• The rating is a proxy for reach, while the sum
(of the ratings) is a proxy for frequency
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Determining GRPs in Practice
• The Gross Ratings generated by a particular media schedule simply equal
the sum of the individual ratings that can be obtained across all vehicles
included in that schedule. (GRPs below = 91.0)
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Does a Greater GRP Score Indicate a Better
Campaign?
• Plan X: 90% reach x 2 frequency =
180 GRPs
• Plan Z: 52% reach x 3.08 frequency =
160 GRPs
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Weight: Target Rating Points (TRPs)
• Adjust a vehicle’s rating to reflect just those
individuals who match the advertiser’s target
audience (e.g., for “Smart Car” campaign -18-49 years; $50,000+; urban)
• e.g., 91.0 GRPs x .30 = 27.3 TRPs
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The Concept of Effective Reach
• How often does the target audience have an
opportunity to be exposed?
• Effective reach (ER) is based on the idea that
an advertising schedule is effective only if it
has a minimum of three “exposures” (i.e., 3+
exposures)
• Effective rating points = ER x freq.
• 67 = 30 x 2.22
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Effective Reach in Advertising Practice
• 3-10 exposures during a media-planning period
(typically 4 weeks)
• Using multiple media
• Subjective factors must be considered
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Consumer awareness
Competitive position
Degree of loyalty
Message creativity
Objectives – e.g., awareness versus sales
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Reach versus Frequency Strategy?
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Reach:
New products
Undefined markets
Brands with large shares,
loyal customers
Infrequently purchased
products
•
•
•
•
•
Frequency:
Strong competition
Complex message
Weak brand loyalty
Target market that is
well defined
Frequently purchased
products
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Alternative Media Plans
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Frequency Value Planning
• The object of frequency value planning is to select
that media schedule that generates the most exposure
value per GRP.
• Frequency value planning can be broken down into 5
steps:
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•
•
•
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Estimate the exposure utility
Estimate the frequency distribution
Estimate the OTS value at each OTS level
Determine the total value across all OTS levels
Develop an index of exposure efficiency
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Frequency Distributions and Valuations of Two
Media Schedules
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Figure 16.2: Continuous Schedule
1. Continuous advertising schedule: an equal number
of ad dollars are invested throughout the campaign.
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Figure 16.2: Pulsing Schedule
2. Pulsing: some advertising is used during every
period of the campaign, but the amount of
advertising varies from period to period.
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Figure 16.2: Flighting Schedule
3. Flighting: the advertiser varies expenditures
throughout the campaign and allocates zero
expenditures in some months.
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Recency Planning (a.k.a. The Shelf-Space
Model)
The recency principle is built on three interrelated ideas:
1. Consumers’ first exposure to an advertisement for a
brand is the most powerful
2. Advertising’s primary role is to influence brand
choice, and advertising does influence choice for a
subset of consumers who are in the market of the
product category at the time a brand in that
category advertises
3. Achieving a high level of weekly reach for a brand
should be emphasized over acquiring heavy
frequency
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Cost Considerations
• Cost per Thousand (CPM)
• Target Market (TM)
CPM = Cost of ad
# of contacts (expressed in thousands)
CPM-TM = Cost of ad
# of TM contacts
(expressed in thousands)
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Use CPM With Caution!
• Measures of cost efficiency, not of effectiveness
• Lack of comparability across different audiences,
different media, and different dayparts
• Misused unless vehicles within a particular medium
are compared on the same basis
• Audience measurement can be challenging (pass
along readership, duplication, circulation estimates)
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Media-Scheduling Software
1. User develops a media database
2. User selects criterion for schedule
optimization (e.g., reach, effective reach,
frequency, GRPs, ...)
3. User specifies budget constraints (max.,
min.) and max./min. number of insertions
per vehicle
4. User seeks out the optimum media schedule
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Esuvee Safety Campaign
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Media Database for the Esuvee Safety
Campaign
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ADPlus Magazine Schedule for the Esuvee
Safety Campaign (cont’d)
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Table 16.6: ADPlus Magazine Schedule for the
Esuvee Safety Campaign
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The Diet Dr Pepper Plan
• Campaign Target:
• Adults ages 18 to 49 who were present or prospective diet
soft-drink consumers
• Campaign Objectives:
1. Increase Diet Dr Pepper sales by 4% and improve its
growth rate to at least 1.5 times that of the diet soft-drink
category
2. Heighten consumers’ evaluations of the key product
benefit and image factors that influence brand choice in
this category
3. Enhance those key brand-personality dimensions that
differentiate Diet Dr Pepper from other diet drinks
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Table 16.7: Media Plan for Diet Dr Pepper
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Saab 9-5’s Media Plan
• A mass-market advertising campaign was undertaken
with the following objectives:
1. Generate excitement for new 9-5 model line
2. Increase overall awareness for Saab name
3. Encourage customers to visit dealers and testdrive
4. Retail 11,000 units of 9-5 during introductory
year
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Table 16.8: Media Plan for the Saab 9-5
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