Media Planning and Decisions Chapter 11 Media Planning and Decisions

Major Decisions in Advertising

The Traditional Media Landscape Satellite radio stations 2 Broadcast networks (TV and cable) 100 TV stations 3,510 Consumer magazines 5,340 Newspapers (daily and weekly) 8,100 Radio stations 13,898

Spending by Media (Billions of Dollars)

2014年台灣總廣告量統計

2014年台灣總廣告量統計

An Overview of Media Planning Some basic terms and concepts The media plan Problems in media planning

Some Basic Terms and Concepts Media planning: the series of decisions involved in delivering the promotional message to the prospective purchasers and/or users of the product or brand. Media objectives: goals to be attained by the media strategy and program. Media strategies: decisions on how the media objectives can be attained. Medium: the general category of available delivery systems, which includes broadcast media, print media, direct mail, outdoor advertising, and other support media.

Some Basic Terms and Concepts Media vehicle (載體): the specific carrier within a medium category. Reach: a measure of the number of different audience members exposed at least once to a media vehicle in a given period of time. (actual) Coverage: the potential audience that might receive the message through a vehicle. (potential) Frequency: the number of times the receiver is exposed to the media vehicle in a specific period.

The Media Plan Situation analysis Situation analysis Marketing strategy plan Marketing strategy plan Creative strategy plan Creative strategy plan Setting media objectives Setting media objectives Determining media strategy Determining media strategy Relation to text This slide relates to material on pp. 303-304 and Figure 10-3 of the text. Summary Overview The media plan determines the best way to get the advertiser’s message to the market. The basic goal is to find that combination of media that enables the marketer to communicate the message in the most effective manner to the largest number of potential customers at the lowest cost. The various steps and activities involved in developing the media plan are presented on this slide. Use of this slide This slide can be used to introduce and provide an overview of the activities involved in developing a media plan. More detailed discussion of these activities will follow. Selecting broad media classes Selecting broad media classes Selecting media within class Selecting media within class Media use decision — print — broadcast — other media

Problems in Media Planning Insufficient information The timing of measurement: sweeps periods – February, May, July, and November. Inconsistent terminologies Time pressures Difficulty measuring effectiveness

2013年台灣媒體代理商前10名 排名 公司名稱 年度承攬額 （新台幣／億） 1 凱絡媒體 Carat Media 70.46 2 貝立德 Media PALETTE 64.55 3 媒體庫 MEC 64.26 4 宏盟媒體 OMG 38.01 5 星傳媒體 Starcom MediaVest Group 37.97 6 傳立媒體 MindShare 37.95 7 宏將廣告 Media Drive 37.59 8 實力媒體 ZenithOptimedia 32.49 9 彥星傳播 Glory Star 24.36 10 偉視捷 Vizeum 20.14

Developing the Media Plan Market analysis Establishment of media objectives Media strategy development and implementation Evaluation and follow-up

Market Analysis and Target Market Identification To whom shall we advertise? What internal and external factors are operating? Where to promote?

To Whom Shall We Advertise? Secondary information Government, e.g. age, education. Market research companies, e.g. SMRB, MRI, 東方線上 – E-ICP & CMMS. Index number Figure 10-5 The high index may be a result of a low denominator. (Figure 10-6)

Example 18~24 25~34 35~44 45~ Population 15.1% 25.1% 20.5% 39.3% Product use 18% 25% 21% 36% Index 119 100 102 91

Internal and External Factors Internal factors: the size of media budget, managerial and administrative capability, the organization of the agency. External factors: the cost of media, changes in technology, competitors.

Where to promote? Buying power index Brand development index Based on population, effective buying income and retail sales. Brand development index Category development index

Brand Development Index (BDI) Percentage of brand to total U.S. sales in market Percentage of total U.S. population in market BDI = X 100 Percentage of brand sales to total sales in market Percentage of total population in market

Category Development Index (CDI) Percentage of product category total sales in market Percentage of total population in market X 100

Example 北 中 南 東 40% 27% 23% 10% 30% 35% 5% 20% 50% 15% 75 111 152 50 Population 40% 27% 23% 10% Brand 30% 35% 5% Product 20% 50% 15% BDI 75 111 152 50 CDI 185 65 150

Brand and Category Analysis High BDI Low BDI High market share Good market potential Low market share Good market potential High CDI High market share Monitor for sales decline Low market share Poor market potential Low CDI

Brand and Category Analysis The market usually represents good sales potential for both the product and the brand. The category isn’t selling well but the brand is; may be a good market in which to advertise but should be monitored for sales decline. The product category shows high potential but the brand isn’t doing well; the reason should be determined. High CDI Low CDI Both the product category and the brand are doing poorly; not likely to be a good place to advertise. High BDI Low BDI

Media Planning Criteria Considerations The media mix Target market coverage Geographic coverage Scheduling Reach versus frequency Creative aspects and mood Flexibility Budget considerations

Target Audience Coverage Population excluding target market Target market Media coverage Media overexposure Coverage Exceeding Market Partial Full Target Proportion

Three Scheduling Methods Continuity (連續型): a regular pattern of advertising. Flighting (間歇型): a less regular schedule with intermittent periods of advertising and nonadvertising. Pulsing (脈動型): a combination of the above two methods. Pros & Cons of the three methods

Three Scheduling Methods Continuity Pulsing Flighting Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Reach versus Frequency Awareness Trial Frequency The actual audience for a commercial and a program Figure 10-18

Unduplicated Reach of Both Duplicated Reach of Both Reach and Frequency Reach of Two Programs Reach of One Program Unduplicated Reach of Both Duplicated Reach of Both Total market audience reached Total reached with both shows Total reach less duplicate

GRPs Gross rating points (GRPs) = Reach × Frequency Target rating points (TRPs) The # of people in the primary target audience the media buy will reach – and the # of times. Unlike GRP, TRP does not include waste coverage. 100 TRPs = 32% × 3.125 = 37.2% × 2.688 = 44.5% × 2.247 Relationship between GRPs & awareness 2500 → 70% 1000~2500 → 33% <1000 → 0%

Example 家戶 第一次 第二次 第三次 第四次 收視次數 1 V 3 2 4 5 6 7 8 收視率/次 37.5% 50% 25% 7 8 收視率/次 37.5% 50% 25% 62.5%

Effects of Reach and Frequency One exposure of an ad to a target group within a purchase cycle has little or no effect in most circumstances. Since one exposure is usually ineffective, the central goal of productive media planning should be to enhance frequency rather than reach. The evidence suggests strongly that an exposure frequency of two within a purchase cycle is an effective level. Beyond three exposures within a brand purchase cycle or over a period of four or even eight weeks, increasing frequency continues to build advertising effectiveness at a decreasing rate but with no evidence of decline.

Effects of Reach and Frequency Although there are general principles with respect to frequency of exposure and its relationship to advertising effectiveness, differential effects by brand are equally important. Frequency response principles or generalizations do not vary by medium. The data strongly suggest that wearout is not a function of too much frequency. It is more of a creative or copy problem.

Graph of Effective Reach

Factors Important in Determining Frequency Levels Marketing Factors Brand history (－) Brand share (－) Brand loyalty (－) Purchase cycles (－) Usage cycle (－) Competitive share of voice (＋) Target group

Factors Important in Determining Frequency Levels Message or Creative Factors Message complexity (＋) Message uniqueness (－) New vs. continuing campaigns Image vs. product sell Message variation (＋) Wearout Advertising units (－)

Factors Important in Determining Frequency Levels Media Factors Clutter (＋) Editorial environment Attentiveness (－) Scheduling (continuous < flighting or pulsing) Number of media used (＋) Repeat Exposures (－)

Budget Considerations Absolute cost: the actual total cost required to place the message. Relative cost: the relationship between the price paid for advertising time or space and the size of the audience delivered. Cost per mille (CPM) → magazine Cost per rating point (CPRP) → broadcast media Daily inch rate → newspaper

Determining Relative Cost of Media Cost of ad space (absolute cost) Circulation CPM = X 1,000 Cost per mille (CPM)

Determining Relative Cost of Media CPRP = Cost of commercial time Program rating Cost per rating point (CPRP) 台灣目前所謂的保證CPRP價格大概是450 NT/sec

Example (Magazine) Cheers 親子天下 康健雜誌 Per-page Cost (封底) 280,000 260,000 Circulation 70,000 85,000 90,000 CPM 4,000 3,059 3,111

Example (Newspaper) 自由時報 爽報 Per-page Cost (頭版) 1,800,000 1,000,000 Circulation 628,295 333,800 CPM 2865 2996

閱報人口統計 人口分佈統計 閱報率

Limitations of CPM Overestimate Underestimate Readers per copy Pass-along rate: the number of people who read the magazine without buying it, e.g. 遠見, 新台灣. Underestimate Target CPM, e.g. 商業週刊, 哈佛商業評論. Quantitative (NOT qualitative)

Television Pros and Cons Advantages Disadvantages Mass coverage Mass coverage Low selectivity Low selectivity High reach High reach Short message life Short message life Impact of sight, sound and motion Impact of sight, sound and motion High absolute cost High absolute cost Relation to text This slide relates to material on pp. 327-328 and Figure 10-28 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using television as a medium. Some of the more noteworthy advantages are the fact that it is a mass medium with high reach and it is provides a combination of sight, sound, and motion. The major disadvantages of TV as an advertising medium are that it has a high absolute cost, potentially high production costs for commercials, and has become very cluttered. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using television as an advertising medium. Chapter 11 provides a more complete evaluation of television as a medium. High prestige High prestige High production cost High production cost Low cost per exposure Low cost per exposure Clutter Attention getting Attention getting Favorable image Favorable image

Radio Pros and Cons Advantages Disadvantages Local coverage Audio only Audio only Low cost Low cost Clutter Clutter High frequency High frequency Low attention getting Low attention getting Relation to text This slide relates to material on pp. 327-328 and Figure 10-28 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using radio as a medium. Some of the more noteworthy advantages are the fact that radio has local coverage, is low cost, and may result in high frequency of exposures. The major disadvantages of radio advertising is that it has high clutter, low attention getting ability, and provides only an audio message. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using radio as an advertising medium. Chapter 11 provides a more complete evaluation of broadcast media including radio. Flexible Flexible Fleeting message Low production cost Low production cost Well-segmented audience Well-segmented audience

Magazine Pros and Cons Advantages Disadvantages Segmentation potential Long lead time for ad placement Long lead time for ad placement Quality reproduction Quality reproduction Visual only Visual only High information content High information content Lack of flexibility Relation to text This slide relates to material on pp. 327-328 and Figure 10-28 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using magazines as an advertising medium. Some of the more noteworthy advantages of magazines as advertising media vehicles are the fact that they have good potential for segmentation, provide quality reproduction, and have longevity. The major disadvantages are it they have long lead times, provide only a visual message, and often lack flexibility. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using magazines. Chapter 12 provides a more complete evaluation of print media including magazines. Longevity Longevity Multiple readers Multiple readers

Newspaper Pros and Cons Advantages Disadvantages High coverage High coverage Short life Short life Low cost Low cost Clutter Clutter Short lead time for placing ads Short lead time for placing ads Low attention getting Low attention getting Relation to text This slide relates to material on pp. 327-328 and Figure 10-28 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using newspapers as a medium. Some of the more noteworthy advantages are the fact that they have good potential for high coverage, the cost is relatively low, and they have short lead times. The major disadvantages of newspapers are that they have a short reading life, high levels of advertising clutter, and may have low attention getting ability. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using newspapers as an advertising medium. Chapter 12 provides a more complete evaluation of newspapers. Ads can be placed in interest sections Ads can be placed in interest sections Poor reproduction quality Poor reproduction quality Timely (current ads) Timely (current ads) Selective reader exposure Reader controls exposure Reader controls exposure Can be used for coupons Can be used for coupons

Outdoor Pros and Cons Advantages Disadvantages Location specific Short exposure time Short exposure time High repetition High repetition Short ads Short ads Easily noticed Easily noticed Poor image Poor image Relation to text This slide relates to material on pp. 327-328 and Figure 10-28 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using outdoor as an advertising medium. Some of the more noteworthy advantages are the fact that outdoor ads are location specific, easily noticed, and allow for high repetition. The major disadvantages are that outdoor has a short exposure time, can accommodate only short messages, and may have a poor image. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using outdoor advertising. Chapter 13 provides a more complete evaluation of outdoor media. Local restrictions

Direct Mail Pros and Cons Advantages Disadvantages High selectivity High selectivity High cost per contact High cost per contact Reader controls exposure Reader controls exposure Poor image (junk mail) Poor image (junk mail) High information content High information content Clutter Relation to text This slide relates to material on pp. 327-328 and Figure 10-28 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using direct mail as a medium. Some of the more noteworthy advantages of direct mail are that it is highly selective, the reader controls the exposure, and a great deal of information can be provided. The major disadvantages of direct mail are high cost-per-exposure, clutter, and poor image. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using direct mail as an advertising medium. Chapter 14 provides a more complete evaluation of direct marketing. Repeat exposure opportunities Repeat exposure opportunities

Internet Pros and Cons Advantages Disadvantages User selects product information User selects product information Limited creative capabilities Limited creative capabilities User attention and involvement User attention and involvement Websnarl (crowded access) Websnarl (crowded access) Interactive relationship Interactive relationship Technology limitations Technology limitations Relation to text This slide relates to material on pp. 327-328 and Figure 10-28 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using the Internet as an advertising medium. Some of the advantages of the Internet are the fact the user selects the information, is usually attentive and involved, and the medium is interactive. The major disadvantages of the Internet are limited creative capabilities, web snarl, and a lack of valid measurement techniques. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using the Internet as an advertising medium. Chapter 15 provides a more complete evaluation of the Internet. Direct selling potential Direct selling potential Few valid measurement techniques Few valid measurement techniques Flexible message platform Flexible message platform Limited reach