1. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Chapter 10 Media and contact strategy 10-1

2. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Learning objectives 1. To understand the principles of brand contact points in media strategy. 2.To understand the key terminology used in media planning. 3.To recognise and be able to set media objectives. 4.To know how a media plan is developed. 5.To know the process for developing and implementing media strategies. 6.To be familiar with sources of media information and characteristics of media. 10-2

3. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 10-3 Concepts Where to say it? Reach Frequency Continuity and flexibility Media landscape contact points How often to say it? Media plans and planning How much will it cost to say it? Budget

4. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media contacts 10-4 The typical consumer is exposed to 3000+ messages daily from an increasingly diverse range of media

5. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Brand contact points 10-5

6. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Brand contact points (cont.) 10-6

7. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Traditional media landscape in Australia PlatformMediaNumber TelevisionCommercial networks4 Government & community2 Subscription TV120 RadioStations261 Print MagazinesConsumer magazines1100 NewspapersNational daily2 Metro daily10 Metro Sunday10 Regional132 Suburban (community)243 CinemaScreens1907 10-7

8. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Traditional media landscape in New Zealand Media platformNumber Television channels87 Radio stations300 Consumer magazines Locally published (650) 6000 Newspapers Metro and community150 Cinema screens455 10-8 Source: Nielsen Media, New Zealand

9. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 10-9 Concepts Where to say it? Reach Frequency Continuity and flexibility Media landscape contact points How often to say it? Media plans and planning How much will it cost to say it? Budget

10. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media terminology 10-10 A series of decisions involving the delivery of messages to audiences Goals to be attained by the media strategy and program Decisions on how the media objectives can be attained The various categories of delivery systems, including broadcast and print media Media planning Media planning Media objectives Media objectives Media strategy Media strategy Media

11. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media terminology (cont.) 10-11 The number of times the receiver is exposed to the 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 Media vehicle Reach Coverage Frequency

12. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media spend, Australia 2009 10-12

13. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media spend, New Zealand 2009 10-13 Advertiser/ expenditure ($millions ) TVRadioNewsMagsCineOOHMailOn- line Total Foodstuffs NZ15.97.822.40.3 1.36.60.854.5 Progressive Enterprises 19.43.319.70.401.98.70.253. 5 The Warehouse20.54.515.52.400.58.00.251.5 Harvey Norman23.63.220.80.9002.851.1 Telecom Corp18.74.66.60.70.42.70.46.840.5 Noel Leeming Group 17.12.015.8003.3-38.2 Reckitt-Benckiser37.20-0.400.300.138.1 Unilever Australasia 32.50.10. 22.3-1.4-0.236.7 NZ Lotteries Commission 23.87.01.9-02.100.635.4 Mitre 10 NZ18.21.29.3-0-3.7-32.5 Source: Nielsen, AIS Data, 2009

14. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media planning difficulties 10-14 Time pressures Time pressures Problems in media planning Problems in media planning Lack of information Measurement problems Measurement problems Inconsistent terminology Inconsistent terminology

15. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media research in Australia 10-15

16. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell The media plan and its relationship to marketing planning 10-16 Selecting media within class 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 Determining media strategy Selecting broad media classes Marketing strategy plan Creative strategy plan Situation analysis Setting media objectives

17. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Developing the media plan 10-17 Evaluation and follow-up Media strategy development & implementation Establishment of media objectives Market analysis

18. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Market analysis: to whom shall we advertise? 10-18 Sources of information Internal sources  Situation analysis  Prior research  Databases Internal sources  Situation analysis  Prior research  Databases External sources  Syndicated research  Commissioned research  Secondary sources External sources  Syndicated research  Commissioned research  Secondary sources

19. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Syndicated research 10-19

20. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Analysing syndicated research 10-20 Percentage of users in a demographic segment Percentage of population in the same segment Index = x 100 Index number

21. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media research in Australia 10-21

22. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media strategy and objectives 10-22 Factors influencing media strategy development Internal factors  Size of budget  Managerial capabilities Internal factors  Size of budget  Managerial capabilities External factors  Economy (media costs)  Technology (New media)  Competitive activity External factors  Economy (media costs)  Technology (New media)  Competitive activity

23. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Setting media objectives 10-23 Frequency (exposing the target audience to the message a specific number of times) Frequency (exposing the target audience to the message a specific number of times) Reach (reaching the target audience) Reach (reaching the target audience) Continuity (over the life of the campaign) Continuity (over the life of the campaign) Media objectives should be limited to those that can be accomplished through media strategies.

24. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media objectives Examples of media objectives:  Reach 60% of the target audience at least three times over the same six-month period.  Use broadcast media to provide coverage of 80% of the target market over a six-month period.  Concentrate heaviest advertising in winter and spring, with lighter emphasis in summer and autumn. 10-24

25. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Presenting a media diary 10-25

26. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Presenting a media diary (cont.) 10-26

27. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Developing and implementing media strategies Media planCriteria to be considered The media mixReach vs frequency Target market coverageCreative aspects and mood Geographic coverageFlexibility SchedulingBudget considerations 10-27

28. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Target market coverage 10-28 Population excluding target market Target market Media coverage Media overexposure Target market proportion Full market coverage Partial market coverage Coverage exceeding market 21 3 4

29. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Data used to develop media coverage strategy 10-29

30. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Three scheduling methods 10-30 Continuity Pulsing JanFebMarAprMayJunJulAugSepOctNovDec Flighting

31. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Northern Territory Tourism media schedule 10-31 Source: Extract from N.T. Tourism Media Schedule, 2005

32. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Characteristics of scheduling methods 10-32

33. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Reach and frequency planning 10-33 How much reach is necessary? i.e. how many members of the target audience should be exposed to your message? How much reach is necessary? i.e. how many members of the target audience should be exposed to your message? What frequency level is needed? i.e. how many times should the average audience member be exposed to your message? What frequency level is needed? i.e. how many times should the average audience member be exposed to your message? Two key questions

34. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell What level of frequency? 10-34 When brand awareness is a campaign objective, aim for high reach. Ads with high impact require lower levels of frequency. When products/ brands have short life cycles, aim for high reach quickly. General guidelines for setting frequency objectives

35. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Reach and frequency 10-35

36. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Reach and frequency (cont.) 10-36 A. Reach of one program Total market audience reached B. Reach of two programs Total market audience reached C. Duplicated reach Total reached with both shows D. Unduplicated reach of both Total reach less duplicate

37. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Target audience ratings points 10-37 Target audience ratings points (TARPs) TARP = Number of PPL in a target audience reached by a media buy Potential target audience for media buy x 100

38. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Gross ratings points 10-38 GRP = Gross ratings points (GRP) Reach x Frequency

39. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Estimates of reach 10-39

40. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell What level of frequency? 10-40

41. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Effective reach 10-41

42. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Effective vs average frequency 10-42 By comparing effective frequency with average frequency, planners are able to fine tune campaigns. Effective frequency Desired level of frequency (media objective) Effective frequency Desired level of frequency (media objective) Average frequency Observed frequency for an actual or planned campaign Average frequency Observed frequency for an actual or planned campaign vs

43. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Marketing factors determining frequency 10-43 Target group Brand history Share of voice Purchase cycles Brand loyalty Brand share Usage cycle Marketing factors

44. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Message factors determining frequency (cont.) 10-44 Message complexity Message uniqueness New vs. continuing campaigns Image vs. product sell Message variation Wearout Advertising units Message or creative factors Message or creative factors

45. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Media factors determining frequency (cont.) 10-45 C lutter Number of media used Repeat exposures Editorial environment Scheduling Attentiveness Media factors

46. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Creative aspects and mood 10-46 Media environment Creative opportunities Budget Mood Flexibility Creative aspects and mood

47. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Creative impact 10-47

48. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Flexibility in media planning strategies 10-48 Market opportunities Market threats Availability of media Changes in media or media vehicle Flexibility

49. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Determining relative cost of media—print 10-49 CPM = Cost of ad space (absolute cost) Circulation Cost per thousand

50. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 10-50 Determining relative cost of media—print (cont.)

51. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Determining relative cost of media—broadcast 10-51 CPRP = Cost of commercial time Program rating Cost per rating point (CPRP)

52. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Determining relative cost of media—broadcast (cont.) 10-52

53. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Calculating CPM based on the target audience 10-53

54. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Top advertisers 10-54

55. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Television: advantages and disadvantages 10-55 Short message life High production cost Low selectivity High absolute cost Clutter Mass coverage High reach Impact of sight, sound and motion High prestige Low cost per exposure Attention getting Favourable image Advantages Disadvantages

56. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Radio: advantages and disadvantages 10-56 Clutter Fleeting message Audio only Low attention-getting Local coverage Low cost High frequency Flexible Low production cost Well-segmented audience Advantages Disadvantages

57. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Magazines: advantages and disadvantages 10-57 Visual only Long lead time for ad placement Lack of flexibility Segmentation potential Quality reproduction High information content Longevity Multiple readers AdvantagesDisadvantages

58. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Newspapers: advantages and disadvantages 10-58 Clutter Poor reproduction quality Short life Low attention-getting 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 coupons Selective reader exposure Advantages Disadvantages

59. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Outdoor: advantages and disadvantages 10-59 Short ads Local restrictions Short exposure time Poor image Location specific High repetition Easily noticed Advantages Disadvantages

60. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Direct mail: advantages and disadvantages 10-60 Poor image (junk mail) High cost per contact Clutter High selectivity Reader controls exposure High information content Repeat exposure opportunities AdvantagesDisadvantages

61. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Interactive media: advantages and disadvantages 10-61 Websnarl (crowded access) Few valid measurement techniques Limited creative capabilities Technology limitations Limited reach User selects product information User attention and involvement Interactive relationship Direct selling potential Flexible message platform Advantages Disadvantages

62. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Summary and conclusions  Media planning is a process involving many layers of complex decisions.  At its heart, media strategy attempts to find the best match of media, having regard to the target market and given budgetary constraints.  Media planners attempt to balance reach and frequency objectives while also giving consideration to creativity and other relevant non- quantifiable factors.  Media planning is both an art and a science. 10-62