1. Advertising Media: Planning and Analysis
INTEGRATED MARKETING
COMMUNICATIONS
IN ADVERTISING AND PROMOTION
CHAPTER 11
Advertising Media: Planning and Analysis
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2. Chapter Objectives After reading this chapter you should be able to:
Describe the major factors used in segmenting target audiences for media planning purposes.
Explain the meaning of reach, frequency, gross rating points, target rating points, effective reach, and other media concepts.
Discuss the logic of the three-exposure hypothesis and its role in media and vehicle selection.
Describe the use of the efficiency index procedure for media selection.
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11–2

3. Chapter Objectives (cont’d) After reading this chapter you should be able to:
Distinguish the differences among three forms of advertising allocation: continuous, pulsed, and flighted schedules.
Explain the principle of recency and its implications for allocating advertising expenditures over time.
Perform cost-per-thousand calculations.
Review actual media plans.
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11–3

4. Media versus Vehicles Media Vehicles
General communication methods that carry advertising messages
Examples: television, newspapers, and Internet
Vehicles
The specific broadcast programs or print choices in which advertisements are placed
Example: the American Idol program
Each medium and vehicle has a unique set of characteristics and virtues
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5. Messages and Media: A Hand-In-Glove Reaction
Advertising message and media considerations are inextricably related—creatives and media specialists must team up to design ads
Choice of media and vehicles requires a variety of decisions
General media categories
Specific vehicles
Marcom budget allocations
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6. Selecting and Buying Media and Vehicles
Choices:
Traditional full-service ad agencies separately providing creative, planning, and media buying services for a client’s individual brands
Single media buyer and planner agency providing centralized media planning and buying services for all of the client’s brands
Takeaway:
Creating effective messages is critical but it is just as essential that the messages are placed in the right media and vehicles.
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7. The Media-Planning Process
Is the design of a strategy that will best allocate investments in advertising time and space to achieve the firm’s marketing objectives
Involves coordinating three levels of strategy: marketing, advertising, and media strategy
Media Strategy Activities
Selecting the target audience
Specifying media objectives
Selecting media categories and vehicles
Buying media
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8. Model of the Media-Planning Process
Figure 11.1
Model of the Media-Planning Process
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9. Selecting the Target Audience
Buyographics
Geographic
Demographic
Lifestyle/ Psychographics
Segmentation Factors
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10. Specifying Media Objectives
Issues in Setting Media Objectives
Frequency
Reach
Weight
Cost
Recency
Continuity
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11. Issues in Setting Media Objectives
Reach
What proportion of the population should be reached with advertising message during specified period?
Frequency
How frequently should audience be exposed to message during this period?
Weight
How much total advertising is needed to accomplish reach and frequency objectives?
Continuity
How should the advertising budget be allocated over time?
Recency
How close to the time of purchase should the target audience be exposed to the advertising message?
Cost
What is the most economically justifiable way to accomplish objectives?
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12. Media Objective: Reach
Is the percentage of the target audience exposed, at least once, during a specified time frame to the vehicles in which the advertising message is inserted
Also known as 1+, Net coverage, unduplicated audience, and cumulative audience (cume)
OTS = opportunity to see
Determinants of Reach
Use of multiple media
Diversification of vehicles within each medium
Varying dayparts for radio and TV advertising
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13. Media Objective: Frequency
Is the average number of times during a media-planning period that the target audience members are exposed to media vehicles carrying a brand’s advertising message.
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14. Table 11.1
Hypothetical Frequency Distribution for the Fortwo Advertised in Cosmopolitan Magazine
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15. Media Objective: Weight
Weight Defined
The advertising volume required to accomplish advertising objectives
Ratings
The percentage of an audience that has an opportunity to see an advertisement placed in a particular vehicle
Weight Metrics:
Gross rating points (GRPs)
Target ratings
Effective ratings
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16. Weight Metrics Gross Rating Points (GRPs)
Represent the gross weight that a particular advertising schedule is capable of delivering—the sum of all vehicle ratings in a media schedule
GRPs = Reach (R) × Frequency (F)
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17. Weight Metrics (cont’d)
Target Rating Points (TRPs)
Are adjusted vehicle’s ratings that reflect only those individuals who match the advertiser’s target audience
Indicate a media schedule’s net (non-wasted) weight
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18. Weight Metrics (cont’d)
The Concept of Effective Reach
Answers the question of how often does the target audience have an opportunity to be exposed
Is that an advertising schedule is effective only if it does not reach members of target audience too few or too many times
Three-Exposure Hypothesis (Krugman)
A minimum of three exposures to an advertising message needed for effective advertising
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19. Weight Metrics (cont’d)
Effective Reach Planning in Advertising Practice
No fewer than three and no more than ten exposures during a four-week media planning period
Use of multiple media
Subjective factors must be considered
Effective Rating Points (ERPs)
ERPs = effective reach (or exposures) × frequency
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20. Table 11.2
Alternative Media Plans Based on a $25 Million Annual Budget and Four-Week Media Analysis
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21. Weight Metrics (cont’d)
An Alternative Approach: Frequency Value Planning
The objective is to select the media schedule that generates the most exposure value per GRP.
Step 1. Estimate the exposure utilities for OTS that a schedule produces.
Step 2. Estimate the frequency distribution of the various media schedules that are under consideration.
Step 3. Estimate the OTS value at each OTS level.
Step 4. Determine the total value across all OTS levels.
Step 5. Develop an index of exposure efficiency.
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22. Exposure Utilities for Different OTS Levels
Table 11.3
Exposure Utilities for Different OTS Levels
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23. Frequency Distributions and Valuations of Two Media Schedules
Table 11.4
Frequency Distributions and Valuations of Two Media Schedules
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24. Media Objective: Continuity
Involves how advertising is allocated during the course of an advertising campaign.
Addresses the fundamental issue of how the media budget be distributed:
Uniformly throughout the period of the advertising campaign
In a concentrated period to achieve maximum impact
Some other schedule between these two choices
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25. Allocating the Advertising Budget
Continuous Schedule
Pulsing Schedule
Flighting Schedule
Budgeting Alternatives
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26. Advertising Budgeting Alternatives
Continuous Advertising Schedule
An equal number of ad dollars are invested throughout the campaign
Pulsing
Some advertising is used during every period of the campaign, but the amount of advertising varies from period to period
Flighting
The advertiser varies expenditures throughout the campaign and allocates zero expenditures in some months
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27. Figure 11.2
Continuous, Pulsing, and Flighting Advertising Schedules for a Brand of Ice Cream
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28. Advertising Budgeting Alternatives
Recency Planning (a.k.a. The Shelf-Space Model) Principles
Consumers’ first exposure to an advertisement is the most powerful
Advertising’s primary role is to influence brand choice
Achieving a high level of weekly reach for a brand should be emphasized over acquiring heavy frequency
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29. Recency Planning: Continuous Presence
Advertising’s Role in Optimizing Weekly Reach
To influence brand selection by reminding, reinforcing, and evoking earlier messages
To reach consumers when they are ready to buy a brand—”rent the shelf”, not out of sight, out of mind
To reach consumers close to the time when they are making brand-selection decisions
Single exposure cost effectiveness is about three times the value of subsequent exposures
To reach as many consumers for as many weeks as possible rather than sporadically at select times
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30. Allocating the Advertising Budget
Toward Reconciliation: It Depends!
No single budgeting approach is equally effective for all brands—what works best depends on the particular circumstances of the brand
Strong Advertising Model
Advertising is important because it teaches consumers about brands and encourages trial purchases leading to the prospect of repeat buying
Weak Advertising Model
Most advertising messages are not important to consumers and that consumers do not learn much from advertising
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31. Cost Considerations Cost per Thousand (CPM) CPM-TM
The cost of reaching 1,000 people as a measure of media efficiency
CPM = Cost of ad ÷ Number of total contacts reached (expressed in thousands)
CPM-TM
The cost of reaching 1,000 members of the target audience, excluding those people who fall outside the target market
CPM-TM = Cost of ad ÷ Number of target market contacts reached (expressed in thousands)
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32. Cost Consideration Calculations
Advertising at a Football Game
Cost of message delivery = $500.00
Stadium capacity = 80,000 persons
Cost per Thousand (CPM) = $ ÷ 80 = $ 6.25
Advertising on Television
Total program viewership = 18,273,600 households
Cost of 30-second commercial = $780,000
CPM = $780,000 ÷ 18,273.6 = $42.68
Target market percentage = 60%
CPM-TM = $780,000 ÷ (60% × 18,273.6) = $71.14
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33. Use Media Cost Calculations With Caution!
The CPM and CPM-TM Statistics
Are useful for comparing the cost-efficiency of different advertising vehicles, not their effectiveness
Lack comparability across media that are unique and priced differently
Can be misused unless vehicles within a particular medium are compared on the same basis (e.g., usage and timing)
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34. The Necessity of Making Tradeoffs
Why Tradeoffs?
Media planners operate under the constraint of a fixed advertising budget
Optimizing one objective impacts other objectives
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35. Media-Scheduling Software
Computerized Media-Scheduling Models
Attempt to optimize an objective function (e.g., reach) subject to satisfying constraints (e.g., budgetary limits) in developing a specific media schedule
Steps in Using a Computerized Model
Develop a media database
Select the criterion for schedule optimization
Specify budget and frequency constraints for each vehicle
Seek out the optimum media schedule
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36. Media Database for the Esuvee-H
Table 11.5
Media Database for the Esuvee-H
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37. ADplus Magazine Schedule for the Esuvee-H
Table 11.6
ADplus Magazine Schedule for the Esuvee-H
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38. ADplus Magazine Schedule for the Esuvee-H (cont’d)
Table 11.6
ADplus Magazine Schedule for the Esuvee-H (cont’d)
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39. Review of Media Plans The Diet Dr. Pepper Campaign Target: Objectives:
Adults ages 18 to 49 who are present or prospective diet soft-drink consumers
Objectives:
To increase Diet Dr. Pepper sales by 4 percent and improve its growth rate to 1.5 times that of the diet soft-drink category.
To heighten consumers’ evaluations of the key product benefit and image factors that influence brand choice in this category.
To enhance brand-personality dimensions that differentiate Diet Dr Pepper from other diet drinks—particularly that Diet Dr Pepper is a unique, clever, fun, entertaining, and interesting brand to drink.
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40. Review of Media Plans (cont’d)
The Diet Dr. Pepper Campaign (cont’d)
Creative Strategy
To position the Diet Dr Pepper brand as “tasting more like regular Dr Pepper”—nearly 60 percent of initial trial users of Diet Dr Pepper are motivated by the desire to have a diet soft drink that tastes like regular Dr Pepper.
Media Strategy
Place advertisements during professional and college football games
Sponsor various special events
Continuously advertise during prime time, on late-night television, on syndicated programs, and on cable stations
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41. Media Plan for Diet Dr Pepper
Table 11.7
Media Plan for Diet Dr Pepper
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42. Media Plan for Diet Dr Pepper (cont’d)
Table 11.7
Media Plan for Diet Dr Pepper (cont’d)
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43. Review of Media Plans (cont’d)
Saab Model 9–5 Campaign
Target:
Upscale families and relatively affluent older consumers
Objectives:
Generate excitement for the new 9–5 model line
Increase overall awareness for the Saab name
Encourage consumers to visit dealers and test-drive the 9–5
Produce retail sales of 11,000 units of the 9–5 during the introductory year
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44. Review of Media Plans (cont’d)
Saab Model 9–5 Campaign (cont’d)
Creative Strategy
To position the 9–5 as a luxury automobile capable of delivering an ideal synthesis of performance and safety
Media Strategy
To generate high levels of reach and frequency among the target group of older and financially well-off consumers
Media Schedule:
Network and cable TV advertising before and following the 9–5’s introduction
Continuous magazine and newspaper advertising throughout the 9-5’s introduction year
Internet banner advertising the 9-5 model continuously throughout the introductory year
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45. Media Plan for the Saab 9-5
Table 11.8
Media Plan for the Saab 9-5
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46. Review of Media Plans (cont’d)
Olympus Camera Media Plan
Target:
Digital camera users
Objectives:
To introduce the Stylus Verve and the m:robe successfully
To shift marketplace perceptions that Olympus was a maker of designer electronics items and not merely cameras
Strategy
Place the Olympus message in media that people talk about, that generate buzz, that yield free media coverage, that have longevity, and that are influential.
To reach both men and women and suitable for Olympus’ fourth-quarter selling season (October through December)
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47. Review of Media Plans (cont’d)
Olympus Camera Media Plan (cont’d)
Media and Vehicles:
Sponsored sporting and fashion events
National network and cable TV programs with high viewership and buzz potential
Various magazines with different readership segments
Out of home (OOH) impact units in key Olympus markets
In-theater advertising in the top-25 markets
Online advertising through a non-branded interactive Web site
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48. Media Plan for Olympus’ Stylus Verve and m:robe Brands
Table 11.9
Media Plan for Olympus’ Stylus Verve and m:robe Brands
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