1. Media Buying

2. Lots of Questions Who am I trying to reach?
How many can I afford to reach?
How often do people need to encounter my message?
In which vehicles should I pursue message space?
When should I communicate (day, week, month, year)?
What markets and regions should receive extra emphasis and which ones can be ignored?
How can I take advantage of emerging media?

3. Media Selection Procedures
Selection based on audience and costs
What does your target consume?
How much can you afford?
Audience measures
Gross impressions & Gross rating points (GRPs)
Reach & Frequency - How many and how often
Cost per thousand (CPM) and Cost per point (CPP)
Coverage: Broadcasting
Targeting: Narrowcasting
Support:
1. Multii-channel visibility
2. Local directives
What makes someone involved:
1. Expense
2. Infrequent purchase
3. Complicated decision
4. Complicated product
5. Negative consequences of bad decision
6. Importance of product to daily life
7. Connectiion to self-image

4. Gross Impressions
In media, primarily concerned with accumulation of audience
Each audience member exposed to the message is considered an “impression”
Summed to equal “gross impressions”
Audience size = gross impressions for single show
For multiple programs, add audience sizes together for total gross impressions (GI)

5. Gross Rating Points Same logic applies to rating points
Rating for individual programs are added together to calculate the total rating points accumulated across a schedule
Gross Rating Points = GRPs
Ex. Rating for Program 1 +
Rating for Program 2 +
Rating for Program 3
Gross Rating Points

6. GI and GRPs Gross impressions (GI) Gross rating points (GRPs)
Total number of exposures - duplication counts
Exposures (Ad 1) + Exposures (Ad 2) + Exposures (Ad 3)….
2 ads in American Idol each generate 9.63 Million impressions + NCIS: Los Angeles generated 7.98 Million Impressions
Total impressions = Million or 27,240,000 GIs
Gross rating points (GRPs)
GRPs = GI / Total population (x 100 to convert to %)
Can be over 100, and often is
2.78 rating rating rating = 7.00 GRPs
Way of allocating media weight
Coverage: Broadcasting
Targeting: Narrowcasting
Support:
1. Multii-channel visibility
2. Local directives
What makes someone involved:
1. Expense
2. Infrequent purchase
3. Complicated decision
4. Complicated product
5. Negative consequences of bad decision
6. Importance of product to daily life
7. Connectiion to self-image

7. Media Schedules Rating Aud. Size # of Ads GRPs GI
NCIS mm mm
Am Idol mm mm
Big Bang mm mm
Olympics mm mm
Total mm

8. Huh?
Your schedule generates 168.8mm HH GI yet there are only 105.5mm TV HH
How is this possible?
Your schedule generates GRPs, with each GRP equal to 1% of the audience
How can you have more than 100%

9. Duplication of Impressions
GRPs and GI allow for the duplication of impressions
Someone might see more than one ad in your schedule
Ex. NCIS and Am Idol
Ex. multiple episodes of Am Idol
Ex. multiple ads in a single show

10. Reach and Frequency Percent of audience exposed at least once
Overall - Household reach
Target - Reach of specific audience
Average Number of times exposed
Average frequency x Reach = GRP
Coverage: Broadcasting
Targeting: Narrowcasting
Support:
1. Multii-channel visibility
2. Local directives
What makes someone involved:
1. Expense
2. Infrequent purchase
3. Complicated decision
4. Complicated product
5. Negative consequences of bad decision
6. Importance of product to daily life
7. Connectiion to self-image

11. Reach and Frequency
Viewers Average Number GRPs = Counted X of Times Once They View GRPs = Reach X Frequency Reach is net unduplicated audience Frequency is average number of exposures

12. Estimating Reach and Calculating Frequency
Back to our 10 unit schedule of ads
GRPs = 159.7
Reach = 60.0
Frequency = 2.66 or 2.7
Numbers comes from “reach curves” that contain reach estimates for various media vehicles and GRP levels
Frequency is then calculated from reach

13. Frequency Distribution

14. Effective Frequency Combines reach and frequency
Threshold: minimum effective frequency
Usually 3+
Ideal exposure frequency
Varies by message complexity
Varies by strategic goals
Coverage: Broadcasting
Targeting: Narrowcasting
Support:
1. Multii-channel visibility
2. Local directives
What makes someone involved:
1. Expense
2. Infrequent purchase
3. Complicated decision
4. Complicated product
5. Negative consequences of bad decision
6. Importance of product to daily life
7. Connectiion to self-image

15. Cost Efficiency Cost in relation to target delivered
Cost per thousand (CPM)
Cost per rating point (CPP)
CPP used to compare efficiency of advertising media to one another
Coverage: Broadcasting
Targeting: Narrowcasting
Support:
1. Multii-channel visibility
2. Local directives
What makes someone involved:
1. Expense
2. Infrequent purchase
3. Complicated decision
4. Complicated product
5. Negative consequences of bad decision
6. Importance of product to daily life
7. Connectiion to self-image

16. CPM CPM = Cost per thousand impressions
CPM = Cost of ads / Total GIs in (000)
Ex. CPM for NCIS
CPM = $400,000 / 22,500(000) = $17.78
Ex. CPM for 10 unit schedule
CPM = $2,450,000 / 168,800(000) = $14.51

17. CPP CPP = Cost per rating point CPP = Cost of ads / Total GRPs
Ex. CPP for NCIS
CPP = $400,000 / 21.3 = $18,779.34
Ex. CPP for 10 unit schedule
CPP = $2,450,000 / = $15,341.26

18. Media Vehicle Selection
Note the size of the media budget.
Determine which media vehicles to use – Choices + Primary Research
Decide how to use media in line with segmentation, relationship marketing, database/interactive, and connections planning
Decide “impact media” – newspapers, internet, outdoor, and specials
Allocate impact media and subtract cost from available media budget
Allocate percent of the remaining media budget to a medium
ex. 5% on “evening drive time” radio or 20% on “prime time” network TV
Divide amount allocated by Cost-Per-Point (CPP).
Calculate your total Gross Rating Points (GRPs).
Distribute the GRPs across the year, distinguishing national from spot
Coverage: Broadcasting
Targeting: Narrowcasting
Support:
1. Multii-channel visibility
2. Local directives
What makes someone involved:
1. Expense
2. Infrequent purchase
3. Complicated decision
4. Complicated product
5. Negative consequences of bad decision
6. Importance of product to daily life
7. Connectiion to self-image

19. Simple Example Total media budget is $54,836,200.
Buy two ads on Academy Awards (2 X $39,610 X 25 = $1,980,500), six ads in College Bowl Games (6 X $35,674 X 25 = $5,351,100), two ads on the Super Bowl (2 X $59,376 X 50 = 5,937,600) and two months of outdoor in top 50 spot markets (2 X 1,600,000 = $3,200,000).
Total Spending on impact media = $16,469,200.
Amount remaining = $38,367,000
Decide to spend 35% of remaining budget on local primetime TV.
.35 X 38,367,000 = 13,428,450
13,428,450/ 27,407 CPP = 490 rating points.
Place 100 in March, place 70 in May (Summer Kickoff), place 70 in October (Fall Promotion), and 250 in December (Winter Sales Event).
Repeat process for other media (Radio, Magazines, etc).
Diagram media buys, both impact and standard media, in a flowchart.

20. Media Plan Presenting Your Media Plan Visually
Creating Budget Allocation
Creating Media Flowchart
Creating Bar Graphs and Pie Charts

21. Using Excel to SHOW the allocation of your media budget to each media vehicle

22. Using pie charts to illustrate the allocation of the media budget across major media vehicles
EXPENDITURE BY MEDIUM

23. Using a flow chart to document the allocation of GRPs for each media vehicle

24. Using bar graphs to illustrate the distribution of total GRPs for each month

25. Using bar graphs to illustrate the distribution of total GRPs for each month

26. Budget Allocation Spreadsheet – Key Elements
GRP=$ALLOCATION / CPP

27. Flow Chart Spreadsheet – Key Elements