Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed McGraw-Hill/Irwin 10 Media Planning and Strategy

The Changing Media Landscape A few predictions Traditional media budgets will not change for years Traditional media will take on a different role, with reduced budget share How consumers use media will never be the same Synergism/integration is the new model 10-2

Factors Leading to Changes in Media Consumers are busy and time crunched Multitasking becoming more prevalent New media options/ media proliferation Changing lifestyles (cocooning) Technology developments/changes Media Fragmentation Consumer attitudes toward media 10-3

Media Terms and Concepts A series of decisions involving the delivery of messages to audiences Media Planning Media Planning Goals to be attained by the media strategy and program Media Objectives Media Objectives Decisions on how the media objectives can be attained Media Strategy Media Strategy General categories of delivery systems, including broadcast and print media Medium 10-4

Media Terms and Concepts Number of different audience members exposed at least once in a time period Reach The potential of audience that might receive the message through the vehicle Coverage Number of times the receiver is exposed to the media vehicle in a time period Frequency The specific carrier within a medium category Media Vehicle 10-5

Developing the Media Plan Selecting media within class Selecting broad media classes Determining media strategy 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 Setting media objectives Marketing strategy plan Situation analysis Creative strategy plan 10-6

Media Planning Difficulties Measurement Problems Measurement Problems Lack of Information Inconsistent Terminology Inconsistent Terminology Time Pressure Time Pressure Problems in Media Planning Problems in Media Planning 10-7

Developing a Media Plan Evaluate performance Analyze the market Establish media objectives Develop/implement media strategy 10-8

Using Index Numbers Percentage of users in a demographic segment Percentage of population in the same segment Index = X 100 Index Number 10-9

Using the Brand Development Index Percentage of brand to total U.S. sales in market Percentage of total U.S. population in market BDI =X 100 Brand Development Index 10-10

Using the Category Development Index Percentage of total product category sales in market Percentage of total U.S. population in market CDI =X 100 Category Development Index 10-11

Test Your Knowledge In calculating both the brand development index (BDI) and the category development index (CDI), a media planner obtains the following results: Low BDI and High CDI. What do these results imply? A) High market share; good market potential B) Low market share; good market potential C) High market share; monitor for sales decline D) Low market share; poor market potential 10-12

Using BDI and CDI 10-13

Developing Media Strategies Criteria to consider during plan development The media mix Target market coverage Geographic coverage Scheduling Reach and frequency Recency Creative aspects and mood Flexibility Budget 10-14

The Media Mix Selection considerations Objectives sought Product or service characteristics Budget Individual preferences 10-15

Target Audience Coverage Target Market Proportion Full Market Coverage Partial Market Coverage Exceeding Target Market Population excluding target market Target market Media coverage Media overexposure 10-16

Geographic Coverage 10-17

Scheduling Methods Continuity Pulsing Flighting JanFebMarAprMayJunJulAugSepOctNovDec 10-18

Reach and Frequency A. Reach of One ProgramB. Reach of Two Programs C. Duplicated Reach of BothD. Unduplicated Reach of Both Total market audience reached Total market reached with both shows Total reach less duplicated shows 10-19

Ratings Points Gross ratings points (GRPs) GRP = Reach X Frequency Target ratings points (TRPs) The number of people in the primary target audience the media buy will reach The number of times they will be reached 10-20

Effective Reach 10-21

Marketing Factors Determining Frequency Target Group Brand History Share of Voice Purchase Cycles Brand Loyalty Brand Share Usage Cycle Marketing Factors 10-22

Message Factors Determining Frequency Message Complexity Message Uniqueness New vs. Continuing Campaigns Image Versus Product Sell Message Variation Wearout Advertising Units Message or Creative Factors Message or Creative Factors 10-23

Media Factors Determining Frequency Clutter Number of Media Used Repeat Exposure Editorial Environment Scheduling Attentiveness Media Factors 10-24

Creative Aspects and Mood Creative aspects Media may drive strategy, or strategy may drive media Media and creative departments must work closely together Mood Media can drive mood Media and vehicle image can carry over to the message placed within them 10-25

Flexibility in Media Planning Strategies Market opportunities Market threats Availability of media Changes in media or media vehicle Flexibility 10-26

Test Your Knowledge Why should an effective media strategy be flexible? A) Due to the potential development of new advertising media B) Due to an alteration of a competitor's media schedule C) Due to the unavailability of the desired medium D) Due to a drop in the ratings of a show previously on the media schedule E) Due to all of the above 10-27

Determining Relative Cost of Print Media Cost of ad space (absolute cost) Circulation CPM =X 1,000 Cost per thousand (CPM) 10-28

Determining Relative Cost of Broadcast Media CPRP = Cost of commercial time Program rating Cost per rating point (CPRP) 10-29

Determining Newspaper Advertising Costs Cost of ad space x 1,000 Circulation Daily Inch Rate 10-30

Television Pros and Cons Mass coverage High reach Sight, sound, motion High prestige Low cost per exposure Attention getting Favorable imageAdvantages Short message life High production cost Low selectivity High absolute cost ClutterDisadvantages 10-31

Radio Pros and Cons Local coverage Low cost High frequency Flexible Low production cost Well-segmented audienceAdvantages Clutter Fleeting message Audio only Low attention gettingDisadvantages 10-32

Magazine Pros and Cons Segmentation potential Quality reproduction High information content Longevity Multiple readersAdvantages Visual only Long lead time for ad placement Lack of flexibilityDisadvantages 10-33

Newspaper Pros and Cons 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 couponsAdvantages Clutter Poor reproduction quality Short life Low attention getting Selective reader exposureDisadvantages 10-34

Outdoor Pros and Cons Location specific High repetition Easily noticedAdvantages Short ads Local restrictions Short exposure time Poor imageDisadvantages 10-35

Direct Mail Pros and Cons High selectivity Reader controls exposure High information content Repeat exposure opportunitiesAdvantages Poor image (junk mail) High cost per contact ClutterDisadvantages 10-36

Internet Pros and Cons User selects product information User attention and involvement Interactive relationship Direct selling potential Flexible message platformAdvantages Lack of controls Questionable measurement techniques Clutter Limited reachDisadvantages 10-37

Test Your Knowledge In terms of media vehicles, ______ would be most efficient medium for the “Got Milk” slogan. A) television B) interactive media C) radio D) outdoor E) newspapers 10-38

Evaluation and Follow-Up Use again, or analyze flaws How well did these strategies achieve the media objectives? How well did the media plan contribute to attaining the overall marketing and communications objectives? 10-39