Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Chapter 10 Media and contact strategy 10-1
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Learning objectives 1. To understand the principles of brand contact points in media strategy. 2.To understand the key terminology used in media planning. 3.To recognise and be able to set media objectives. 4.To know how a media plan is developed. 5.To know the process for developing and implementing media strategies. 6.To be familiar with sources of media information and characteristics of media. 10-2
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 10-3 Concepts Where to say it? Reach Frequency Continuity and flexibility Media landscape contact points How often to say it? Media plans and planning How much will it cost to say it? Budget
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media contacts 10-4 The typical consumer is exposed to messages daily from an increasingly diverse range of media
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Brand contact points 10-5
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Brand contact points (cont.) 10-6
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Traditional media landscape in Australia PlatformMediaNumber TelevisionCommercial networks4 Government & community2 Subscription TV120 RadioStations261 Print MagazinesConsumer magazines1100 NewspapersNational daily2 Metro daily10 Metro Sunday10 Regional132 Suburban (community)243 CinemaScreens
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Traditional media landscape in New Zealand Media platformNumber Television channels87 Radio stations300 Consumer magazines Locally published (650) 6000 Newspapers Metro and community150 Cinema screens Source: Nielsen Media, New Zealand
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 10-9 Concepts Where to say it? Reach Frequency Continuity and flexibility Media landscape contact points How often to say it? Media plans and planning How much will it cost to say it? Budget
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media terminology A series of decisions involving the delivery of messages to audiences Goals to be attained by the media strategy and program Decisions on how the media objectives can be attained The various categories of delivery systems, including broadcast and print media Media planning Media planning Media objectives Media objectives Media strategy Media strategy Media
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media terminology (cont.) The number of times the receiver is exposed to the media vehicle in a specific time period The potential audience that might receive the message through the vehicle Number of different audience members exposed at least once in a given time period The specific carrier within a medium category Media vehicle Reach Coverage Frequency
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media spend, Australia
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media spend, New Zealand Advertiser/ expenditure ($millions ) TVRadioNewsMagsCineOOHMailOn- line Total Foodstuffs NZ Progressive Enterprises The Warehouse Harvey Norman Telecom Corp Noel Leeming Group Reckitt-Benckiser Unilever Australasia NZ Lotteries Commission Mitre 10 NZ Source: Nielsen, AIS Data, 2009
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media planning difficulties Time pressures Time pressures Problems in media planning Problems in media planning Lack of information Measurement problems Measurement problems Inconsistent terminology Inconsistent terminology
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media research in Australia 10-15
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell The media plan and its relationship to marketing planning Selecting media within class Media use decision — print Media use decision — print Media use decision — broadcast Media use decision — broadcast Media use decision — other media Media use decision — other media Determining media strategy Selecting broad media classes Marketing strategy plan Creative strategy plan Situation analysis Setting media objectives
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Developing the media plan Evaluation and follow-up Media strategy development & implementation Establishment of media objectives Market analysis
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Market analysis: to whom shall we advertise? Sources of information Internal sources Situation analysis Prior research Databases Internal sources Situation analysis Prior research Databases External sources Syndicated research Commissioned research Secondary sources External sources Syndicated research Commissioned research Secondary sources
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Syndicated research 10-19
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Analysing syndicated research Percentage of users in a demographic segment Percentage of population in the same segment Index = x 100 Index number
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media research in Australia 10-21
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media strategy and objectives Factors influencing media strategy development Internal factors Size of budget Managerial capabilities Internal factors Size of budget Managerial capabilities External factors Economy (media costs) Technology (New media) Competitive activity External factors Economy (media costs) Technology (New media) Competitive activity
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Setting media objectives Frequency (exposing the target audience to the message a specific number of times) Frequency (exposing the target audience to the message a specific number of times) Reach (reaching the target audience) Reach (reaching the target audience) Continuity (over the life of the campaign) Continuity (over the life of the campaign) Media objectives should be limited to those that can be accomplished through media strategies.
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media objectives Examples of media objectives: Reach 60% of the target audience at least three times over the same six-month period. Use broadcast media to provide coverage of 80% of the target market over a six-month period. Concentrate heaviest advertising in winter and spring, with lighter emphasis in summer and autumn
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Presenting a media diary 10-25
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Presenting a media diary (cont.) 10-26
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Developing and implementing media strategies Media planCriteria to be considered The media mixReach vs frequency Target market coverageCreative aspects and mood Geographic coverageFlexibility SchedulingBudget considerations 10-27
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Target market coverage Population excluding target market Target market Media coverage Media overexposure Target market proportion Full market coverage Partial market coverage Coverage exceeding market
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Data used to develop media coverage strategy 10-29
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Three scheduling methods Continuity Pulsing JanFebMarAprMayJunJulAugSepOctNovDec Flighting
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Northern Territory Tourism media schedule Source: Extract from N.T. Tourism Media Schedule, 2005
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Characteristics of scheduling methods 10-32
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Reach and frequency planning How much reach is necessary? i.e. how many members of the target audience should be exposed to your message? How much reach is necessary? i.e. how many members of the target audience should be exposed to your message? What frequency level is needed? i.e. how many times should the average audience member be exposed to your message? What frequency level is needed? i.e. how many times should the average audience member be exposed to your message? Two key questions
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell What level of frequency? When brand awareness is a campaign objective, aim for high reach. Ads with high impact require lower levels of frequency. When products/ brands have short life cycles, aim for high reach quickly. General guidelines for setting frequency objectives
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Reach and frequency 10-35
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Reach and frequency (cont.) A. Reach of one program Total market audience reached B. Reach of two programs Total market audience reached C. Duplicated reach Total reached with both shows D. Unduplicated reach of both Total reach less duplicate
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Target audience ratings points Target audience ratings points (TARPs) TARP = Number of PPL in a target audience reached by a media buy Potential target audience for media buy x 100
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Gross ratings points GRP = Gross ratings points (GRP) Reach x Frequency
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Estimates of reach 10-39
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell What level of frequency? 10-40
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Effective reach 10-41
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Effective vs average frequency By comparing effective frequency with average frequency, planners are able to fine tune campaigns. Effective frequency Desired level of frequency (media objective) Effective frequency Desired level of frequency (media objective) Average frequency Observed frequency for an actual or planned campaign Average frequency Observed frequency for an actual or planned campaign vs
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Marketing factors determining frequency Target group Brand history Share of voice Purchase cycles Brand loyalty Brand share Usage cycle Marketing factors
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Message factors determining frequency (cont.) Message complexity Message uniqueness New vs. continuing campaigns Image vs. product sell Message variation Wearout Advertising units Message or creative factors Message or creative factors
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media factors determining frequency (cont.) C lutter Number of media used Repeat exposures Editorial environment Scheduling Attentiveness Media factors
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Creative aspects and mood Media environment Creative opportunities Budget Mood Flexibility Creative aspects and mood
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Creative impact 10-47
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Flexibility in media planning strategies Market opportunities Market threats Availability of media Changes in media or media vehicle Flexibility
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Determining relative cost of media—print CPM = Cost of ad space (absolute cost) Circulation Cost per thousand
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Determining relative cost of media—print (cont.)
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Determining relative cost of media—broadcast CPRP = Cost of commercial time Program rating Cost per rating point (CPRP)
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Determining relative cost of media—broadcast (cont.) 10-52
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Calculating CPM based on the target audience 10-53
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Top advertisers 10-54
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Television: advantages and disadvantages Short message life High production cost Low selectivity High absolute cost Clutter Mass coverage High reach Impact of sight, sound and motion High prestige Low cost per exposure Attention getting Favourable image Advantages Disadvantages
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Radio: advantages and disadvantages Clutter Fleeting message Audio only Low attention-getting Local coverage Low cost High frequency Flexible Low production cost Well-segmented audience Advantages Disadvantages
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Magazines: advantages and disadvantages Visual only Long lead time for ad placement Lack of flexibility Segmentation potential Quality reproduction High information content Longevity Multiple readers AdvantagesDisadvantages
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Newspapers: advantages and disadvantages Clutter Poor reproduction quality Short life Low attention-getting High coverage Low cost Short lead time for placing ads Ads can be placed in interest sections Timely (current ads) Reader controls exposure Can be used for coupons Selective reader exposure Advantages Disadvantages
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Outdoor: advantages and disadvantages Short ads Local restrictions Short exposure time Poor image Location specific High repetition Easily noticed Advantages Disadvantages
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Direct mail: advantages and disadvantages Poor image (junk mail) High cost per contact Clutter High selectivity Reader controls exposure High information content Repeat exposure opportunities AdvantagesDisadvantages
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Interactive media: advantages and disadvantages Websnarl (crowded access) Few valid measurement techniques Limited creative capabilities Technology limitations Limited reach User selects product information User attention and involvement Interactive relationship Direct selling potential Flexible message platform Advantages Disadvantages
Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Summary and conclusions Media planning is a process involving many layers of complex decisions. At its heart, media strategy attempts to find the best match of media, having regard to the target market and given budgetary constraints. Media planners attempt to balance reach and frequency objectives while also giving consideration to creativity and other relevant non- quantifiable factors. Media planning is both an art and a science