Media Planning Essentials 12 ©2012 Cengage Learning. All Rights Reserved.

The Transition to Part 4: Placing the Message in Conventional and “New” Media Starting to study the “placement” phase of advertising and IBP Focus is on using media and IBP tools that “reach” the target audience Even a great message will be ineffective if it does not reach the proper audience

Introduction: The Very Wide World of Brand Media Vehicles The 2010 Super Bowl attracted 2.5X as many viewers as the 1967 Super Bowl, but cost 10X as much. Agencies have become more diverse and offer digital and IBP services While “new’ media get a lot of attention, “old” media still attract a lot dollars. New media are merging with old.

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

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”

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.

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

Ethnic media are on the rise Latina.com 2002

The Fundamentals of Media Planning The “Big Pie”: wide range of promotional choices including media placement Above-the-line: traditional measured media –TV, radio, magazines, newspaper, outdoor, etc. Below-the-line: unmeasured media/IBP tools seen as more efficient –Internet search, shelf placement, coupons, events, in- store promotions, etc. Measured media on slow, steady decline Key distinction – IBP is not a “media” placement but is coordinated with media placements

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

The Overall Media Plan 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

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

Media Planning: Strategies [2] Continuity: o Continuous scheduling o Flighting o Pulsing o “Forgetting” function Media Context: o Editorial climate/ tone of media vehicle Length or Size of Ads: o Creative requirements o “Square root” law o Media budget o Competitive environment — may want to match size of budget and length of campaign of key competitors

Media Planning: Competitive Media Assessment Assessment of how competitors are spending in media “Share of Voice” is measure of one advertiser’s expenditures vs. others Important when competitors are all focused on one narrow segment (i.e. heavy user product categories)

Media Planning: Media Efficiency 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)

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

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

Media Choice and Integrated Brand Promotions Complicating factor: Firms using more IBP tools Madison and Vine Media o Merging of entertainment and advertising o Also referred to as branded entertainment o Three primary approaches o Product placement o Story line integration o Original content

What approach to branded entertainment does Geico use with the “cavemen”? © Chad Bushanan/Getty news Entertainment

Media Choice Issues Data Quality o GIGO problem o Cultural hang-up on numbers o “Media” exposure is not a good measure of ad impact o Firms are seeking alternatives to Nielsen data Ads to Advertisers o Media firms use ads to attract advertisers Media is more than a numbers industry o Personal relationships are still pursued

Media firms sell themselves to advertisers. Courtesy, Donner Advertising. Photos: Copyright Rausser/Getty Images; Photodisc/Getty Images

Contemporary Essentials in Media Computer Media-Planning Models o Major firms offer data bases o Nielson, Arbitron, MRI, SMRB o Data is not standardized across media o But, media software firms offer products to help analyze markets and audiences to develop multi-media plans o Allows for wide range of possible buys Making the buy o Securing electronic and print media space o Agency of Record purchases space o Each spring the “upfront” media buys occur when fall broadcast programming is announced o Some firms use a Media Buying Service

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.