Media Planning and Strategy

Satellite radio stations 2 Satellite radio stations 2 The Traditional U.S. Media Landscape Broadcast networks (TV and cable) 100 Broadcast networks (TV and cable) 100 TV stations 3,510 TV stations 3,510 Consumer magazines 5,340 Consumer magazines 5,340 Newspapers (daily and weekly) 8,100 Newspapers (daily and weekly) 8,100 Radio stations 13,898

Publications such as newspapers, magazines, direct mail, outdoor, etc. The specific carrier within a medium category Number of different audience members exposed at least once in a given time period The potential audience that might receive the message through the vehicle The number of times the receiver is exposed to the ad/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 (i.e. Time Magazine, HGTV, etc.) Publications such as newspapers, magazines, direct mail, outdoor, etc. Media Terminology Print Media Print Media Media Vehicle Reach Coverage Frequency

Target Market Proportion Full Market Coverage Partial Market Coverage Exceeding Market Target Audience Coverage Population excluding target market Target market Media coverage Media overexposure

Further Defining Reach A. Reach of One Program Total market audience reached B. Reach of Two Programs Total market audience reached C. Duplicated Reach of Both Total reached with both shows D. Unduplicated Reach of Both Total reach less duplicate

Graph of Effective Reach

Target Group Brand History Share of Voice Purchase Cycles Brand Loyalty Brand Share Usage Cycle Purchase Cycles Share of Voice/ Competition Share of Voice/ Competition Brand History Usage Cycle Brand Share Brand Loyalty Marketing Factors Determining Frequency Marketing Factors

Message Complexity Message Uniqueness New Vs. Continuing Campaigns Image Versus Product Sell Message Variation Wearout Ad Size/Length Wearout Considerations Message Variation Image vs. “Straight” Sell New vs. Continuing Campaigns Message Uniqueness Message Complexity Message Factors Determining Frequency Message or Creative Factors Message or Creative Factors

Three Scheduling Methods Continuity Pulsing Flighting JanFebMarAprMayJunJulAugSepOctNovDec What are the pros and cons of each method?

Sample Flighting Schedule

Clutter Number of Media Used Repeat Exposures Editorial Environment Scheduling - continuous vs. pulse/flight/blast Attentiveness Number of Media Used Editorial Environment Repeat Exposures (consumer- generated) Clutter Media Factors Determining Frequency Media Factors

Market opportunities Market threats Availability of media Changes in media or media vehicle Availability of media Market threats Market opportunities Flexibility in Media Planning Strategies Flexibility

Determining Relative Cost of Media - CPM Cost to Advertise Circulation CPM =X 1,000 Cost per thousand (CPM)

Calculating CPM Based on the Target Audience

Ratings Ratings are a measure of Reach 110 million (MM) television households in the U.S., approximately equivalent to the total # of households in U.S. Neilsen captures ratings data through Peoplemeters, diaries, surveys, etc. and publishes this data 1 Rating Point = 1% of television households exposed to program = 110 MM x.01 = 1.10 million households exposed (roughly a million) Example: 10 million households watch “House”. House’s rating is 10 MM / 110 MM = 9 points Caveat: Rating % is always higher than % who viewed advertising

Nielsen’s People Meter

Determining Relative Cost of Media - CPP CPP = Cost of Advertising Program Rating Cost per rating point (CPP)

Gross Rating Points (GRPs) GRPs = Reach x Frequency Measure is specifically for television (and sometimes radio) media buys Example: Advertising 5 times during a 10-rated program yields a 5 x 10 = 50 GRP media buy. GRP as a summary number: does not provide distribution characteristics (i.e. is 100 GRPs = 50 rating x 2 exposures or = 25 rating x 4 exposures?) Foote, Cone & Belding study findings 2,500 GRP buy yields 70% probability of high awareness 1,000 – 2,500 GRP buy yields 33% probability of high awareness Less than 1,000 GRP buy yields virtually no awareness Effective Rating Points (ERPs): GRPs adjusted for % of target audience that actually sees or ignores the message (i.e. 30% of target audience may “zip” or “zap” the commercial, stop watching, be inattentive, etc.)

Problems with CPM/CPP What are the three main problems with Relative Cost of Media Measures like CPM and CPP? Purely focused on cost per exposure; no focus on results, ROI, engagement, media impact, etc. May not account for the effects of time and repetition Calculations may use duplicated or unduplicated reach numbers No adjustments made for continuity factors (continuity is beneficial!)

Problems with CPM/CPP SOLUTIONS TEMPORAL CPM/CPP T-CPM, T-CPP Weighted Impression CPM/CPP WI-CPM, WI-CPP Continuity Adjusted CPM/CPP CA-CPM, CA-CPP Formulas: T-CPM = [CPM/Ad Exposure Time] / [Sales Time Period] T-CPP = [CPP/Ad Exposure Time] / [Sales Time Period] WI-CPM = ([Ad Cost] / [Sum of Weighted Impressions]) x 1,000 CA-CPM = [Ad Cost x (1 + ασ)] / [Weighted Impressions] α = alpha coefficientσ = continuity index (st dev of time differences)