Advertising and Media

Traditional Major Advertising Media Out-of-home advertising Newspaper Magazines Radio Television Advertisers attempt to select the media and vehicles whose characteristics are most compatible with the advertised brand in reaching its target audience and conveying its intended message

Which Media Do It Best? Consider: Advertiser’s objectives Creative needs Competitive challenge Budget availability

Buying Newspaper Space Standard Advertising Units (SAU) Six column widths 1 column=2 1/16 inches Depth from 1” to 21 Premium charges for preferred space Space rates apply to ROP (Run of Press)

Newspaper Audience in right mental frame Mass audience coverage Flexibility Ability to use detailed copy Timeliness Clutter Not highly selective Higher rates for occasional advertisers Mediocre reproduction quality National Buying complicated Changing composition of readers

Buying Magazine Space Selecting magazines that reach the target market Cost considerations Media Kits CPM (Cost-per-thousand) Mediamark Research, Inc. (MRI) Simmons Market Research Bureau (SMRB)

Magazine Can reach large audiences Selectivity Long life High reproduction quality Detailed information possible Convey information with authority High involvement potential Not intrusive Long lead times Clutter Limited geographic options Circulation patterns vary by market

The advertiser must weigh: The size of the potential audience that a vehicle might reach. The attractiveness of its coverage as revealed by the total product purchasers exposed to that vehicle and compared with other media. Its cost compared with other vehicles Its appropriateness for the advertised brand

Radio Can reach segmented audiences Intimacy Economy Short lead times Transfer of imagery from TV Use of local personalities Clutter No visuals Audience fractionalization Buying difficulties

Television Advertising Uniquely personal and demonstrative, yet expensive to produce and broadcast

Television Network Market product nationally Major networks Spot Expensive but can be a cost efficient means to reach mass audience Spot Syndicated Cable Local

Television Network Advertising is placed only in selected markets Regional-oriented marketing and geodemographic segmentation of consumer markets Spot Syndicated Cable Local

Television Network Syndicated programming occurs when an independent company markets a TV show to as many network-affiliated or cable TV stations as possible Spot Syndicated Cable Local

Television Network 80% of households with television sets Narrow areas of viewing interest Cable subscribers are more economically upscale and younger Spot Syndicated Cable Local

Television Network Local advertisers are turning to television Inexpensive during the fringe time Spot Syndicated Local Cable

Television Demonstration ability Intrusion value Ability to generate excitement One-on-one reach Ability to use humor Effective with sales force and trade Ability to achieve impact Escalating costs Erosion of audience Audience fractionalization Zipping and zapping Clutter

Infomercials Introduced in the early 1980s Long commercial (28 to 30 minutes) The production cost is expensive Especially effective promotional tool for moving merchandise

Brand Placements in TV Programs Reason: fear that TV advertising is no longer as effective as it used to be Brand managers pay to get prominent placement for their brands “Survivor” program is the poster child for this trend Advertisers who purchased commercial time in “Survivor” got prime brand placement in the program

Advertising and Media Planning

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. Each medium and vehicle has a unique set of characteristics and virtues.

Messages and Media: A Hand-In-Glove Reaction Advertisers are placing more emphasis than ever on media planning. The choice of media and vehicles can be the most complicated of marcom decisions.

The Media-Planning Process The design of a strategy that shows how investments in advertising time and space will contribute to the achievement of marketing objectives.

Model of the Media Planning Process Marketing Strategy Advertising Strategy Advertising Objectives Advertising Budget Message Strategy Media Strategy Media Strategy Target Audience Selection Objective Specification Media and Vehicle Media Buying

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

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)

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)

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

Frequency Average number of times, on average, during the media-planning period that members of the target audience are exposed to the media vehicles that carry a brand’s advertising message.

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

What Are Ratings? Ratings, in an advertising sense, simply mean the percentage of an audience that has an opportunity to see an advertisement placed in a particular vehicle.

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)

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

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

The Concept of Effective Reach How often does 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

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

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

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)

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