1. 1 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 1 Media Planning Essentials 12 1 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2. 12 4 Very Important Changes in Media [1] 1. Agency Compensation o 15 percent commission is essentially gone o Most clients now pay on a fee-for-service basis o Ad creation and placement not at same agency 2. More Media o Traditional media lines are blurred o Firms push “news” stories into media o Movies/videos can be promotional vehicles o Social “media” offer brand information, but how to “price” it is a question 3. Going Public o Agencies are “leaner” now that they are public firms o Agencies are looking for ways to turn short-term profits 12 4

3. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 5 Very Important Changes in Media [2] 4. Globalization o Today media exist in a transnational space— CNN to Al Jazeera o Search engines do not recognize national boundaries (except Google in China!) o The BRIC countries offer huge opportunity o Lack of standardized measurement makes pricing complex o Globalization is a way of thinking another challenge in “new media” 12 5

4. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 6 Very Important Changes in Media [3] 5. Free Content o Internet information has consumers used to free content. o Why buy a magazine full of ads for $4.50? o Nontraditional media, which consumers enjoy, are attracting more dollars. o Consumers are creating “brand material” even ads on the Internet. 6. Consumer in Charge o E-commerce has revolutionized the way consumers consume. o Marketers not solely in charge of brand. o Consumer access to more info = more power in the channel. o Consumers have more power in the transaction due to deal-proneness and price/cost transparency. 12 6

5. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 7 Very Important Changes in Media [4] 7. Hyper-Clutter and Ad Avoidance o Worse than ever on TV and in magazines o Consumers choosing no-ad channels/satellite radio and DVR ad skipping o Satellite radio is growing popularity—despite cost o Ad blocker filters are improving on Web o People are more willing to pay to avoid ads 8. Multicultural Media o Ethnic media on rise with ethnic population growth o Hispanic/Latin/Latino market growing the fastest o Asian market next fastest growing 12 7

6. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 10 Media Planning Media Plan o Specifies media in which advertising message will be placed to reach a desired audience Media Class o Broad category of media, such as TV, radio, or newspapers Media Vehicle o Specific option within a class, i.e., Vogue magazine Media Mix o Blend of different media to reach target audience 12 10

7. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 11 The Overall Media Plan 12 11 Media Strategies Reach the target audienceReach the target audience Geographic scope of placementGeographic scope of placement Geo-targetingGeo-targeting More Media Strategies Reach and frequencyReach and frequency Message weightMessage weight Gross impressionsGross impressions Audience duplicationAudience duplication ContinuityContinuity Length/size of advertisement Length/size of advertisement Media contextMedia context Media Choice Media efficiency (CPM, CPRP)Media efficiency (CPM, CPRP) Target Audience

8. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 Media Planning: Strategies [1] Reach the target audience o Demographic, geographic, lifestyle/attitude define choices o Single-source tracking services help identify effect of placements Geographic scope of media placement o Geo-targeting of regions of high-purchase density o Reach and frequency decisions o Effective reach and effective frequency determination o Message weight o Gross impression calculation for impact o Between vehicle duplication o Within vehicle duplication 12

9. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 15 Media Planning: Media Efficiency 12 15 CPM = Cost of media buy Total audience X 1000 CPM-TM = Cost of media buy Targeted audience X 1000 CPRP = $$$ For a program placement Program Rating (cost per thousand) (cost per thousand-target market) (cost per rating point)

10. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 16 Media Planning: Internet Internet Media –Internet media are “Pull” media –Traditional media are “Push” media –Paid search is most potent tool Interactive Media –Overused and ill-defined term –Includes kiosks to blogs to podcasts to Internet shopping sites –RSS is basis for interactivity Multiway Communication –Consumers seek ads/brand contact 12 16

11. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 17 Media Planning: Social Media Social Networking –New paradigm Marketer (brand) to consumer then consumer to consumer –Marketers can use social media a fraction of cost of traditional media –And, 2/3 of consumers visit social network or blog site Social media are used to discuss brands –Social media used to create “buzz” or “viral” effect –Brand conversations are tracked with net promoter scores –Wikis mine and leverage brand communities 12 17

12. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 23 In Defense of Traditional Advertising There are just some things you can’t accomplish without traditional mass media ads. The Super Bowl or Olympics deliver a truly mass audience. Brand building still needs traditional ads... at least for a while longer. Throwing around “new media” planning buzz words accomplishes much. 12 23