Advertising Principles and Practices Media Planning and Buying

Audi Reaches Elusive Audience Audi needed to launch its new luxury A3 hatchback on a comparatively reduced budget. They used a Web-based alternative reality game to reach the skeptical, affluent 24- to 30-year- old males. A variety of media drove traffic, created buzz, and engaged the audience. \ Prentice Hall, © 2009 11-2

Key Players Traditionally, advertising agencies develop media plans. Lately, media buying companies have assumed planning roles. Agencies have spun off media function as separate companies. Some media planning is done by companies in-house. Specialized “new media” agencies have emerged.

Media Research: Information Services Client Information About customers, past efforts, sales, budget Market Research About markets and product categories; supplied by companies MRI, Scarborough, Mendelsohn Competitive Advertising Share of voice is a percentage of total advertising spending by one brand in a product category. Media Usage Profiles The size and makeup of various media audiences Supplied by companies Nielsen, Arbitron, ABC, Simmons Media Coverage Area Designated marketing area (DMA) is used in TV media Consumer Information Used to locate target audiences within media markets

The Central Role of Media Research

The Media Plan Media Plan: a written document summarizing the objectives and strategies pertinent for placing a company’s brand messages. Goal: find the most efficient and effective ways to deliver messages to a targeted audience

Key Media Planning Decisions Target Audience and Media Use Match the advertiser’s target with a particular medium’s audience. The Aperture Concept Aperture: when consumers are most receptive to a brand message. The goal is to reach the right people at the right time with the right message. Principle: Advertising is most effective when it reaches the right people at the right time and place with the right message.

Measured Media Objectives Goal: arrive at the best media mix to maximize reach and frequency and generate the greatest impact for the money. Media objectives: what companies want to achieve in delivery of brand messages and impact on target audiences. Reach Frequency Effective frequency Media efficiency and waste

Calculating GRPs GRPs (Gross Rating Points) are found by multiplying each media vehicle’s rating by the number of insertions, then adding up the total of all the vehicles. Program HH Rating Insertions GRPs Survivor 6 8 48 Lost 7 8 56 American Idol 9 8 72 24 4 8 32 Total 208 Table 11.1.A Calculating GRPs – Plan A R=35; F=6.9 Program HH Rating Insertions GRPs Survivor 6 8 48 Desperate Housewives 7 8 56 Boston Legal 5 8 40 Monday Night Football 4 8 32 Total 176 Table 11.1.B Calculating GRPs – Plan B R=55; F=3.2

Calculating TRPs TRPs (Targeted Rating Points) adjusts the GRP calculation so it more accurately reflects the percentage of the target audience watching the program, thus reducing waste coverage Program HH Rating Targeted Rating Insertions GRPs Survivor 6 3 8 24 Lost 7 3 8 24 American Idol 9 1 8 8 24 4 3 8 24 Total 80 Table 11.2 Calculating Targeted GRPs – Plan A

Media Strategy Tools and Techniques The way media planners determine the most cost effective media mix to reach the target audience and satisfy the media objectives. Include decisions focusing on who (target audience), what (the media used), when (time frame), how long (duration), and how big (size).

Delivering on Objectives Plans may emphasize reach or frequency High reach strategy Used to deliver reminders for well-known products Used to launch a new, easy-to-understand product Low frequency strategy Used with well-known brands and simple messages High frequency strategy Used with more complex products that require repetition Used to build excitement about a new product or event Used to counter competition or build share of voice Principle: The tighter the focus on a target market, the easier it is to find appropriate media to deliver a relevant message.

Delivering on the Targeting Strategy Media Use The goal is to match consumer insights with media information Geographical Strategies Heavy up in DMAs where the product is available or projected sales are higher Category development index (CDI) Brand development index (BDI) Principle: The CDI tells you where the category is strong and weak, and the BDI tells you where your brand is strong and weak.

Delivering on the Media Mix Strategy Media Weighting How much to budget in each DMA or region and for each target group. Used with seasonality, geography, audience segments, or level of brand development by DMA. Size, Length, and Position Based on advertising objectives. A technical/informational ad may require more time or space while a reminder add will require less. Media Optimization Modeling A computer technique that enables marketers to determine the relative impact of a media mix on product sales and optimize efficiency.

Scheduling Strategies Timing strategies: When to advertise? Seasonality, holidays, days of the week, time of day Lead time: time between thinking about purchase and purchasing; also refers to production time to get an ad in a medium Duration: How long? Advertisers can’t afford to cover the entire year If the period is too short, the message may not have sufficient impact If the period is too long, the ads may suffer from wearout Continuity: How often? How advertising is spread out over the length of the campaign Continuous strategy spreads ads evenly over campaign period

Scheduling Strategies Flighting strategy Alternating periods of intense advertising activity (bursts) and no advertising (hiatus) Pulsing strategy Advertising is intensified (peaks) before an aperture and reduced to lower levels (valleys) until the aperture reopens; bursts of activity

Cost Efficiency: CPMs and CPPs Used to measure a target audience’s size against the cost of reaching that audience TCPM (Target CPM) and TCPP (Target CPM) can be figured using the percentage of viewers or readers in the target audience Gross Impressions Cost of message unit x 1,000 Cost per thousand (CPM) Program or issue rating Cost per point (CPP) Cost of message unit

The Media Budget The size of the budget greatly affects media decisions Local vs. national TV vs. radio At the end of the planning process, the media planner develops a pie chart showing media allocations

Major Sections of a Media Plan Objectives Strategic plan development: consumer insights Key media strategies

Functions of a Media Buyer

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