1. Media Planning and Analysis
Chapter Fifteen
Media Planning and Analysis

2. Chapter Fifteen Objectives
Describe the major factors used in segmenting target audiences for media strategy purposes
Explain the meaning of reach, frequency, gross rating points, target rating points, effective rating points, and other media concepts
Discuss the logic of the three-exposure hypothesis and its role in media and vehicle selection

3. Chapter Fifteen Objectives
Describe the use of the efficiency-index procedure for media selection
Distinguish the differences among three forms of advertising allocation: continuous, pulsed, and flighted schedules
Explain the principle of recency, or shelf-space model, and implications for allocating advertising expenditures over time

4. Chapter Fifteen Objectives
Perform cost-per-thousand calculations
Interpret the output from a computerized media model

5. Saab 9-5
In the late 1990s, Saab introduced a new luxury sedan: the Saab 9-5
Saab had done little to expand its brand image in U.S.
Historically it attracted younger customers, but needed the luxury sedan to appeal to families and older customers

6. Saab 9-5
A mass-market advertising campaign was undertaken with the following objectives:
Generate excitement for new 9-5 model line
Increase overall awareness for Saab name
Encourage customers to visit dealers and test-drive
Retail 11,000 units of 9-5 during introductory year

7. Saab 9-5
Television commercials were run on network TV and cable in May
A newspaper campaign began earlier in March with ads in USA Today and Wall Street Journal
Ads also ran yearlong in several automobile magazines
Internet banner ads were also run throughout the year

8. Saab 9-5 Media Plan
Tactical Plan

9. Saab 9-5 Magazine Ad
Magazine ad

10. Saab 9-5 Dealer Kit
Dealer Information Kit

11. Saab 9-5 Direct Mail uestionnaire
Direct mail questionnaire

12. Saab 9-5 Direct Mail Response to Questionnaire
Response to direct mail questionnaire

13. Saab 9-5 Dealer Leads
Dealer lead information card

14. Saab 9-5 Dealer Sales Literature
Dealer consumer sales literature

15. Saab 9-5 Consumer Test Drive Contest
Test-drive invitation and contest

16. Saab 9-5 Consumer Test Drive Contest
Contest entry card

17. 1-800-COLLECT Media Strategy
1-800-Collect media strategy guide

18. Media Overview
Advertisers are placing more emphasis than ever on media planning
Choosing media & vehicles is the most complicated of all marketing communications decisions
Aside from specific vehicles in media, the planner has to choose geographical locations and budget distribution over time

19. The Media-Planning Process
Involves the process of designing a
scheduling plan that shows how
advertising time and space will
contribute to the achievement of
marketing objectives

20. Overview for the Media Planning Process
Marketing Strategy
Advertising Strategy
Advertising
Objectives
Advertising
Budget
Message
Strategy
Media
Strategy
Media Strategy
Audience Selection
Objective Specification
Media and Vehicle
Media Buying

21. The Media-Planning Process
As shown in the figure, media planning involves coordination the coordination of three levels of strategy formulations:
Marketing Strategy
Advertising Strategy
Media Strategy

22. The Media-Planning Process
Marketing Strategy:
Provides impetus and direction for choice of both advertising and media strategies
Advertising Strategy:
Involves advertising budgets, objectives and message and media strategies
– extends from overall marketing strategy

23. The Media-Planning Process
1. Selecting the target audience
2. Specifying media objectives
3. Selecting media categories and vehicles
4. Buying media

24. Selecting the Target Audience
Four major factors
(1) Buyographics
(2) Geographic
(3) Demographic
(4) Lifestyle/psychographics

25. Specifying Media Objectives
What proportion of the population should be reached with advertising message during specified period (reach)
How frequently should audience be exposed to message during this period (frequency)
How much total advertising is needed to accomplish reach and frequency objectives (weight)

26. Specifying Media Objectives
How should the advertising budget be allocated over time (continuity)
How close to the time of purchase should the target audience be exposed to the advertising message (recency)
What is the most economically justifiable way to accomplish objectives (cost)

27. Reach Percentage of target audience that is
exposed to an advertisement, at least
once, during a certain time frame
(usually four weeks)

28. Reach
Reach represents the percentage of target customers who have an opportunity to see the advertisers message.
Other terms used by Media Planners to describe reach:
1+ (read “one-plus”)
net coverage
unduplicated audience
cumulative audience ( or “cume”)

29. Factors Determining the Reach
More people are reached when a media schedule uses multiple media
The number and diversity of media vehicles used
By diversifying the day parts

30. Frequency Average number of times an advertisement reaches
the target audience in a
four-week period

31. Market Factors/Frequency Levels
Market Factor Type Frequency
Brand History New High
Brand Share High Low
Brand Loyalty High Low
Purchase Cycle Short High
Usage Cycle Short High
Share of Voice High High

32. Message Creative Factors/Frequency Levels
Message/Creative Factor Type Frequency
Message Complexity Simple Low
Message Uniqueness Unique Low
Newness New High
Image Factors Image High
Message variation Little Low

33. Media Factors/Frequency Levels
Media Factor Type Frequency
Clutter Low High
Editorial Nature Consistent Low
Attentiveness High Low
Scheduling Continuous Low
Number of Media a Lot Low

34. Weight
How much advertising volume is required to accomplish advertising objectives
Three weight metrics:
Gross ratings
Target ratings
Effective ratings

35. Weight 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)

36. Determining GRPs in Practice
GRPs are the sum of all vehicle ratings in a media schedule
Rating: proportion of the target audience presumed to be exposed to a single occurrence of an advertising vehicle in which the advertiser’s brand is advertised

37. Determining GRPs in Practice
100 GRPs could mean:
100 % exposed once
50 % exposed twice
25% exposed four times
etc.

38. Weight Target Rating Points (TRPs)
Adjust a vehicle’s rating to reflect just those individuals who match the advertiser’s target audience

39. Weight Effective Rating Points (ERPs) Effective reach
Effective frequency

40. The Concept of ERPs
How often the target audience have an opportunity to be exposed?
Effective reach is based on the idea that an advertising schedule is effective only if it does not reach members of target audience too few or too many times

41. How Many Exposures are Needed?
Three-Exposure Hypothesis
The minimum number of exposures
needed for advertising to be effective
is three

42. How Many Exposures are Needed?
The Efficiency-Index Procedure
Media schedule that generates the
most exposure value per GRP

43. Efficiency Index Procedure
Exposure Value
Exposure Distribution
Total Exposure Value
Index of Exposure Efficiency

44. Effective Reach in Advertising Practice
3-10 exposures during a media-planning period (typically 4 weeks)
Using multiple media
Subjective factors must be considered

45. Continuity How advertising is allocated during
the course of an advertising
campaign : how should the media
budget be distributed?

46. Continuity
Continuous schedule
Pulsing
Flighting

47. Continuous, Pulsing, and Flighting Schedules
200
400
600 J F M A S O N D
Continuous
Pulsing
Flighting
Advertising Schedules
Ad $ (in thousands)
(months)

48. Recency Planning
Consumers’ first exposure to an advertisement is the most powerful
Advetising primary role is to influence brand choice
(2) Achieving a high level of weekly reach for a brand should be emphasized over acquiring heavy frequency

49. Optimizing Weekly Reach
Advertising teaches consumers
Influence brand selection
Messages are most effective when close to
purchase time
Cost-Effectiveness of first exposure is greater
than subsequent
Allocate budget to reach consumers often
Reach target audience continuously rather than sporadically

50. Toward Reconciliation
Illustration of
advertising’s
“Chance Encounter”
and the value of
achieving reach

51. Cost Considerations The cost of reaching 1,000 members of
the target audience, excluding those
people who fall outside the target market

52. 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)

53. Cost Considerations Measures of cost efficiency, not of effectiveness
Lack of comparability across media
Misused unless vehicles within a particular medium are compared on the same basis

54. Tradeoffs
Tradeoff must be made because media planners operate under the constraint of fixed advertising budget

55. Media Planning Software
ADplus
1. User develops a media database
2. User selects criterion for schedule optimization
3. User specifies constraints
4. ADplus seeks out the optimum media schedule

56. Diet Dr. Pepper Campaign
Market Situation
Sluggish category growth
Growth of new-age beverages
Price sensitive
Lack of bottler attention and focus
Inadequate distribution
Greater spending by major competitors

57. Media Strategy
Media plan for
Diet Dr. Pepper

58. Media Plan for Diet Dr. Pepper
(page 2)

59. Campaign Target and Objectives
Increase sales by 4% and improve growth rate to 1.5 times the diet soda category
Heighten consumer knowledge
Differentiate product

60. Results
Sales grew by 6.6%
Consumer brand ratings of Diet Dr. Pepper surpassed Diet Coke and Diet Pepsi in several key areas