1. Media Planning and Buying
Advertising Principles
and Practices
Media Planning and Buying

2. Questions We’ll Answer
What is media aperture, and why is it important?
How do media planners calculate media objectives?
What are the key media strategy decisions?
What are the responsibilities of media buyers?

3. 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. \
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4. The Media Planning Side of Advertising
Advertising budgets are shifting away from traditional media (newspapers, TV, radio) to online and alternative media.
Media planning and buying have become more creative due to media fragmentation and the explosion of new media.
Media is used in advertising, public relations, sales promotion and integrated marketing communications (IMC).

5. 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.

6. 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

7. The Central Role of Media Research

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

9. 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.

10. Key Media Planning Decisions
Measured Media Objectives
Goal: to achieve the best media mix to maximize reach and frequency and generate the greatest impact for the money spent.
Reach: percent of different people exposed to the message.
Frequency: the number of times exposure is expected.
Effective frequency: combines reach and frequency; add frequency to reach until the level at which people respond.
Media efficiency and waste: excessive overlap or too much frequency.
Principle:
Reach is the first place to start in setting objectives for a media plan.

11. Key Media Planning Decisions
Media Mix Selection
Multiplying Media Strengths
Media chosen based on plan objectives and media strengths
GRPs and TRPs
Cross Media Integration
Various media work together to create coherent brand communication; synergy between different media messages
Image transfer—how radio reinforces TV messages

12. 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
Lost
American Idol
Total
Table 11.1.A Calculating GRPs – Plan A R=35; F=6.9
Program HH Rating Insertions GRPs
Survivor
Desperate Housewives
Boston Legal
Monday Night Football
Total
Table 11.1.B Calculating GRPs – Plan B R=55; F=3.2

13. 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
Lost
American Idol
Total
Table 11.2 Calculating Targeted GRPs – Plan A

14. 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.
Includes decisions focusing on who (target audience), what (the media used), when (time frame), how long (duration), and how big (size).

15. 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.

16. 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) determines rates of consumption for a product category.
Brand development index (BDI) is determines the strength of the brand in geographical areas.
Principle:
The CDI tells you where the category is strong and weak, and the BDI tells you where your brand is strong and weak.

17. 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.

18. 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

19. 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.

20. 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

21. 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

22. IMC Media and Contact Point Planning
IMC considers all important brand contact points, not just traditional mass media and advertising.
See for a list
Contact Point Planning
Identify a wide variety of contact points for achieving goals
Implement integrated communication programs that eliminate waste

23. Sample List of Contact Points
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24. Global Media Strategies
Global media do not currently exist.
Advertisers must deal with different networks and different vehicles in different countries.
Despite regional limitations, satellite television gives advertisers the opportunity to deliver unified messages across continents.
North American, European, Asian, and Latin American cable companies offer international networks.

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

28. Media Buying
A media plan is a set of recommendations a client must approve before further action.
Once approved, media buyers convert objectives and strategies into tactics.
Provide inside information to media planners
Select specific media vehicles
Negotiate and contract for time and space
Bargain for preferred positions
Secure extra support/value-added media services
Monitor media choices during and after the campaign
Handle billing and payment
Ensure make goods
Perform post-campaign evaluation

29. Functions of a Media Buyer

30. Media Planning Trends Unbundling Media Planning and Buying
Agencies media departments have become separate, independent profit centers and can work for the agencies’ competition, and compete with agencies for the planning function.
Online Media Buying
Goggle's Adwords and eBay’s Media Marketplace are selling Internet advertising online.
Zimmerman (advertising agency) sells advertising online for a number of media including print, radio, direct mail, in-store ads, and the Internet.
New Forms of Media Research
Online media research (hits and clicks) don’t measure impact.
Traditional media monitoring systems don’t address new ways media is used and systems like TiVo and interactive TV.
Most media research measures independent media, not the effectiveness of combined media.

31. Google AdWords
With Google AdWords, you create your own ads and choose keywords (words or phrases related to your business). When people search on Google using one of those keywords, your ad may appear next to the search results. People can then click your ad to make a purchase or learn more about you.
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32. eBay Media Marketplace
Called “A New Approach to Offline Advertising,” The eBay Media Marketplace offers advertisers a place to make planned buys in the national cable TV market and last-minute buys on radio in all 300 top U.S. radio markets.
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33. Discussion Questions

34. Discussion Question 1
You have just begun a new job as a media planner for a new automobile model from General Motors.
The planning sequence will begin in four months, and our media director asks you what data and information you need from the media research department.
What sources should you request?
How will you use each of these sources in the planning function?

35. Discussion Question 2
The marketing management of McDonald’s restaurants has asked you to analyze the aperture opportunity for its breakfast entrees.
What kind of analysis would you present to management?
What recommendations could you make that would expand the restaurant’s nontraditional, as well as traditional, media opportunities?

36. Discussion Question 3
Your client is a major distributor of movies. Its early media plan for magazines has been settled, and you are in negotiation when you learn that a top publishing company is about to launch a new magazine dedicated to movie fans and video collectors.
Although the editorial direction is perfect, there is no valid way to predict how the magazine will be accepted by the public. Worse, there won’t be solid research on readership for at least a year.
The sales representative offers a low charter page rate if the advertiser agrees to appear in each of the first year’s 12 issues. To use it you will have to remove one of the established magazines from your list.
Is the risk worthwhile? Should you bother the client with this information, considering that the plan is already set?
The new magazine will also be available online. Should you take advantage of this opportunity?
Make some recommendations to your client and explain your reasoning.

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Publishing as Prentice Hall