Media Buying

Lots of Questions Who am I trying to reach? How many can I afford to reach? How often do people need to encounter my message? In which vehicles should I pursue message space? When should I communicate (day, week, month, year)? What markets and regions should receive extra emphasis and which ones can be ignored? How can I take advantage of emerging media?

Media Selection Procedures Selection based on audience and costs What does your target consume? How much can you afford? Audience measures Gross impressions & Gross rating points (GRPs) Reach & Frequency - How many and how often Cost per thousand (CPM) and Cost per point (CPP) Coverage: Broadcasting Targeting: Narrowcasting Support: 1. Multii-channel visibility 2. Local directives What makes someone involved: 1. Expense 2. Infrequent purchase 3. Complicated decision 4. Complicated product 5. Negative consequences of bad decision 6. Importance of product to daily life 7. Connectiion to self-image

Gross Impressions In media, primarily concerned with accumulation of audience Each audience member exposed to the message is considered an “impression” Summed to equal “gross impressions” Audience size = gross impressions for single show For multiple programs, add audience sizes together for total gross impressions (GI)

Gross Rating Points Same logic applies to rating points Rating for individual programs are added together to calculate the total rating points accumulated across a schedule Gross Rating Points = GRPs Ex. Rating for Program 1 + Rating for Program 2 + Rating for Program 3 Gross Rating Points

GI and GRPs Gross impressions (GI) Gross rating points (GRPs) Total number of exposures - duplication counts Exposures (Ad 1) + Exposures (Ad 2) + Exposures (Ad 3)…. 2 ads in American Idol each generate 9.63 Million impressions + NCIS: Los Angeles generated 7.98 Million Impressions Total impressions = 27.24 Million or 27,240,000 GIs Gross rating points (GRPs) GRPs = GI / Total population (x 100 to convert to %) Can be over 100, and often is 2.78 rating + 2.78 rating + 1.44 rating = 7.00 GRPs Way of allocating media weight Coverage: Broadcasting Targeting: Narrowcasting Support: 1. Multii-channel visibility 2. Local directives What makes someone involved: 1. Expense 2. Infrequent purchase 3. Complicated decision 4. Complicated product 5. Negative consequences of bad decision 6. Importance of product to daily life 7. Connectiion to self-image

Media Schedules Rating Aud. Size # of Ads GRPs GI NCIS 21.3 22.5mm 3 63.9 67.5mm Am Idol 23.9 25.2mm 2 47.8 50.4mm Big Bang 10.6 11.2mm 4 42.2 44.8mm Olympics 5.8 6.1mm 1 5.8 6.1mm Total --- --- 10 159.7 168.8mm

Huh? Your schedule generates 168.8mm HH GI yet there are only 105.5mm TV HH How is this possible? Your schedule generates 159.7 GRPs, with each GRP equal to 1% of the audience How can you have more than 100%

Duplication of Impressions GRPs and GI allow for the duplication of impressions Someone might see more than one ad in your schedule Ex. NCIS and Am Idol Ex. multiple episodes of Am Idol Ex. multiple ads in a single show

Reach and Frequency Percent of audience exposed at least once Overall - Household reach Target - Reach of specific audience Average Number of times exposed Average frequency x Reach = GRP Coverage: Broadcasting Targeting: Narrowcasting Support: 1. Multii-channel visibility 2. Local directives What makes someone involved: 1. Expense 2. Infrequent purchase 3. Complicated decision 4. Complicated product 5. Negative consequences of bad decision 6. Importance of product to daily life 7. Connectiion to self-image

Reach and Frequency Viewers Average Number GRPs = Counted X of Times Once They View GRPs = Reach X Frequency Reach is net unduplicated audience Frequency is average number of exposures

Estimating Reach and Calculating Frequency Back to our 10 unit schedule of ads GRPs = 159.7 Reach = 60.0 Frequency = 2.66 or 2.7 Numbers comes from “reach curves” that contain reach estimates for various media vehicles and GRP levels Frequency is then calculated from reach

Frequency Distribution

Effective Frequency Combines reach and frequency Threshold: minimum effective frequency Usually 3+ Ideal exposure frequency Varies by message complexity Varies by strategic goals Coverage: Broadcasting Targeting: Narrowcasting Support: 1. Multii-channel visibility 2. Local directives What makes someone involved: 1. Expense 2. Infrequent purchase 3. Complicated decision 4. Complicated product 5. Negative consequences of bad decision 6. Importance of product to daily life 7. Connectiion to self-image

Cost Efficiency Cost in relation to target delivered Cost per thousand (CPM) Cost per rating point (CPP) CPP used to compare efficiency of advertising media to one another Coverage: Broadcasting Targeting: Narrowcasting Support: 1. Multii-channel visibility 2. Local directives What makes someone involved: 1. Expense 2. Infrequent purchase 3. Complicated decision 4. Complicated product 5. Negative consequences of bad decision 6. Importance of product to daily life 7. Connectiion to self-image

CPM CPM = Cost per thousand impressions CPM = Cost of ads / Total GIs in (000) Ex. CPM for NCIS CPM = $400,000 / 22,500(000) = $17.78 Ex. CPM for 10 unit schedule CPM = $2,450,000 / 168,800(000) = $14.51

CPP CPP = Cost per rating point CPP = Cost of ads / Total GRPs Ex. CPP for NCIS CPP = $400,000 / 21.3 = $18,779.34 Ex. CPP for 10 unit schedule CPP = $2,450,000 / 159.7 = $15,341.26

Media Vehicle Selection Note the size of the media budget. Determine which media vehicles to use – Choices + Primary Research Decide how to use media in line with segmentation, relationship marketing, database/interactive, and connections planning Decide “impact media” – newspapers, internet, outdoor, and specials Allocate impact media and subtract cost from available media budget Allocate percent of the remaining media budget to a medium ex. 5% on “evening drive time” radio or 20% on “prime time” network TV Divide amount allocated by Cost-Per-Point (CPP). Calculate your total Gross Rating Points (GRPs). Distribute the GRPs across the year, distinguishing national from spot Coverage: Broadcasting Targeting: Narrowcasting Support: 1. Multii-channel visibility 2. Local directives What makes someone involved: 1. Expense 2. Infrequent purchase 3. Complicated decision 4. Complicated product 5. Negative consequences of bad decision 6. Importance of product to daily life 7. Connectiion to self-image

Simple Example Total media budget is $54,836,200. Buy two ads on Academy Awards (2 X $39,610 X 25 = $1,980,500), six ads in College Bowl Games (6 X $35,674 X 25 = $5,351,100), two ads on the Super Bowl (2 X $59,376 X 50 = 5,937,600) and two months of outdoor in top 50 spot markets (2 X 1,600,000 = $3,200,000). Total Spending on impact media = $16,469,200. Amount remaining = $38,367,000 Decide to spend 35% of remaining budget on local primetime TV. .35 X 38,367,000 = 13,428,450 13,428,450/ 27,407 CPP = 490 rating points. Place 100 in March, place 70 in May (Summer Kickoff), place 70 in October (Fall Promotion), and 250 in December (Winter Sales Event). Repeat process for other media (Radio, Magazines, etc). Diagram media buys, both impact and standard media, in a flowchart.

Media Plan Presenting Your Media Plan Visually Creating Budget Allocation Creating Media Flowchart Creating Bar Graphs and Pie Charts

Using Excel to SHOW the allocation of your media budget to each media vehicle

Using pie charts to illustrate the allocation of the media budget across major media vehicles EXPENDITURE BY MEDIUM

Using a flow chart to document the allocation of GRPs for each media vehicle

Using bar graphs to illustrate the distribution of total GRPs for each month

Using bar graphs to illustrate the distribution of total GRPs for each month

Budget Allocation Spreadsheet – Key Elements GRP=$ALLOCATION / CPP

Flow Chart Spreadsheet – Key Elements