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3.08 Manage media planning and placement to enhance return on marketing investment.

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Presentation on theme: "3.08 Manage media planning and placement to enhance return on marketing investment."— Presentation transcript:

1 3.08 Manage media planning and placement to enhance return on marketing investment

2 Determine ADVERTISING REACH and MEDIA COSTS

3 ADVERTISING REACH WHAT: Number of PEOPLE THAT ARE EXPOSED to your message: CALCULATION (%):Divide the target audience exposed to an ad by the total target audience There are 1,500,000 fans of Tar Heel Football. A recent advertisement was viewed by 375,000 of them. (375,000/1,500,000 = 25% ADVERTISING REACH) WHY: Determines if ad targeted the right audience effectively. HOW: RESOURCES Circulation numbers, subscriptions or rating points

4 Reach WITHOUT Frequency =
FREQUENCY and REACH FREQUENCY :Number of times you expose each person to your message Reach WITHOUT Frequency = Wasted Money

5 NEWSPAPER MEDIA COSTS Factors affecting COSTS (Lower than most media):
Position and color of ad Split-runs (print different ads for the same product) National ads cost more than local Types of RATES: PREFERRED POSITION: ads placed in location with best exposure for their target market (Ex: Sports ad in the Sports section instead of Garden section) Flat: one time only Sliding scale/ VOLUME DISCOUNTS: more published = cost less per ad Combination: ads and inserts

6 MAGAZINE MEDIA COSTS Factors affecting COSTS (Higher than Newspaper):
CIRCULATION: Number of people reached Preferred Position Spreads Split-runs Types of RATES: Size Frequency Combination

7 TELEVISION MEDIA COSTS
Factors affecting COST: RATINGS FOR CERTAIN SHOWS Determines which shows attract a high volume of viewers Time availability High demand for time during peak winter seasons Length of commercials Types of RATES: Set according to “GROSS RATING POINTS” (GRPs) GRPS = REACH X FREQUENCY RUN OF SCHEDULE (ROS) Ad is run at the station’s convenience for lower cost

8 RADIO MEDIA COSTS Factors affecting COST: Types of RATES: “DAYPART”
Morning drive time, Evening drive time, Daytime, Nighttime Length NUMBER OF LISTENERS Types of RATES: RUN-OF-SCHEDULE (ROS) TOTAL AUDIENCE PLANS (TAPs) PACKAGED PLANS offer reduced rates when purchase a series of commercials instead of just one

9 INTERNET MEDIA COSTS Factors affecting COST: Types of RATES:
Creative type (Text, image, sound, etc.) Size Placement Types of RATES: COST-PER-THOUSAND (aka) COST-PER-MILE (CPM) COST-PER-CLICK (CPC)

10 OTHER MEDIA COSTS DIRECT MAIL OUT OF HOME Factors affecting COST:
Size of the space Length of time Production costs Types of RATES: Determined by: Visibility Location Population Factors affecting COST: Production costs Mailing list costs Labor costs Types of RATES: Postage Shipping CAN TARGET A SPECIFIC MARKET

11 ABSOLUTES vs. RELATIVE MEDIA COSTS
ABSOLUTE COSTS RELATIVE COSTS TOTAL COST to run an ad = Cost of production + Cost for time/space purchased Determines which one media is most cost effective COST PER THOUSAND (CPM) Cost per GROSS RATING POINT (GRP)

12 “You Do”- FOLDABLES: How are Media Costs Determined?
Circulation (size of the audience) Circulation is the most significant factor affecting media costs. In most cases, the larger the media vehicle’s audience, the higher the cost of advertising space or time will be. RATE CARDS: Price lists showing rates for space or time Production costs High-quality television and magazine advertisements can cost a great deal to produce. On the other hand, local radio and newspaper advertisements are relatively inexpensive to produce. Preferred space positions Airing an advertisement at a specific time or running it on a particular page generally costs more. Available discounts Discounts are often offered on the basis of size, frequency, or dollar volume. Demographic makeup of the medium’s targeted audience You can typically expect to pay higher advertising rates in media vehicles that have narrowly defined audiences than in ones that are targeted at general audiences. Reproduction quality Magazines with excellent reproduction quality, such as The New Yorker, can command higher rates than publications with lower-quality reproduction. Gross Rate Point (GRP) = Reach x Frequency Cost Per Thousand (CPM) =(Cost of the ad × 1,000) ÷ Target audience

13 SELECT ADVERTISING MEDIA

14 IMPORTANCE OF SELECTING ADVERTISING MEDIA
Media cost is the largest cost of advertising Complex selection process Must select the most effective media to reach target market

15 SITUATIONAL FACTORS to CONSIDER
OBJECTIVES (Goals) of the advertisement TARGET MARKET Identify what media the target market uses to most Limit WASTE CIRCULATION (Number of people exposed to an advertising message who are not target market) COMPETITION Use the same advertising media to reach same target market BUDGET How much money can you spend? PRODUCT DISTRIBUTION

16 MEDIA FACTORS to CONSIDER
Cost Media Coverage EXTENSIVE COVERAGE: reaching a large audience (REACH) INTENSIVE COVERAGE: reaching a smaller audience more often (FREQUENCY) Geographic Coverage Lead Time Amount of time required to place an ad by the media Radio has shortest TV and Magazines have longest

17 QUANTITATIVE & QUALITATIVE FACTORS
Reach Frequency Cost-per-thousand (CPM) IMPACT Impression an ad will make Credibility EDITORIAL ENVIRONMENT Management and talents of staff

18 STEPS TO SELECTING ADVERTISING MEDIA
Identify SITUATIONAL FACTORS Identify MEDIA FACTORS SELECT the MEDIA OUTLET 4. Determine the TIMING STRATEGY CONTINUOUS (Steady, regular pattern) Frequently used/purchased products FLIGHTING (During peak sales periods ONLY) PULSING (Bursts of advertising)

19 “You Do”: PROJECT Each group will be assigned one of the following: Radio, Direct Marketing, Outdoor, Newspaper or Magazine Advertising. You will need to research and identify the following information: Pros of using your media for advertising Cons of using your media for advertising Types of Costs using your media advertising Organize information above in a POWERPOINT Presentation to be presented to the class. CREATE an advertisement for your media Radio- Needs to be a SCRIPT read to the class Identify which station it will be on and what time of day it will be played. WHY? (Hint- needs to reach your target audience) Magazine- Needs to be a full-page ad. Identify which magazine it will be in and what day/month subscription. WHY? (Hint- needs to reach your target audience) Direct Marketing- Who is on your mailing list and when will you be mailing it out? (Define the target market) (Hint- needs to reach your target audience) Outdoor- Which road/physical location will it be located and for how long and what time of year? (Hint- needs to reach your target audience) Newspaper- Needs to be a full-page ad. (You chose if it is color or not) Which newspaper will it be in and on what day? (Hint- needs to reach your target audience)


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