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 2007 Thomson South-Western Planning for and Analyzing Advertising Media Chapter Thirteen.

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Presentation on theme: " 2007 Thomson South-Western Planning for and Analyzing Advertising Media Chapter Thirteen."— Presentation transcript:

1  2007 Thomson South-Western Planning for and Analyzing Advertising Media Chapter Thirteen

2 Chapter Thirteen Objectives Describe the major factors used in segmenting target audiences for media planning purposes. Explain the meaning of reach, frequency, gross rating points, target rating points, effective reach, and other media concepts. Discuss the logic of the three-exposure hypothesis and its role in media and vehicle selection.

3 Chapter Thirteen Objectives Describe the use of the efficiency-index procedure for media selection. Distinguish the differences among three forms of advertising allocation: continuous, pulsed, and flighted schedules. Explain the principle of recency, or shelf- space model, and implications for allocating advertising expenditures over time.

4 Chapter Thirteen Objectives Perform cost-per-thousand calculations. Interpret the output from computerized media models. Review actual media plans.

5 Media Versus Vehicles Media are the general communication methods that carry advertising messages—television, magazines, newspapers, and so on. Vehicles are the specific broadcast programs or print choices in which advertisements are placed. For example, television is the media, and American Idol is the vehicle. Each medium and vehicle has a unique set of characteristics and virtues.

6 Messages and Media: A Hand-In- Glove Reaction Advertisers are placing more emphasis than ever on media planning. The choice of media and vehicles can be the most complicated of marcom decisions.

7 The Media-Planning Process Media planning The design of a strategy that shows how investments in advertising time and space will contribute to the achievement of marketing objectives.

8 Model of the Media Planning Process Advertising Strategy Advertising Objectives Advertising Budget Message Strategy Media Strategy Media Strategy Target Audience Selection Objective Specification Media and Vehicle Media Buying Marketing Strategy

9 Selecting the Target Audience Four major factors (1) Buyographics (4) Lifestyle/psychographics (2) Geographic (3) Demographic

10 Specifying Media Objectives 1.What proportion of the population should be reached with advertising message during specified period (reach) 2.How frequently should audience be exposed to message during this period (frequency) 3.How much total advertising is needed to accomplish reach and frequency objectives (weight)

11 Specifying Media Objectives 4.How should the advertising budget be allocated over time (continuity) 5.How close to the time of purchase should the target audience be exposed to the advertising message (recency) 6.What is the most economically justifiable way to accomplish objectives (cost)

12 Reach Percentage of target audience that is exposed to an advertisement, at least once, during a certain time frame (usually four weeks)

13 Frequency Average number of times, on average, during the media- planning period that members of the target audience are exposed to the media vehicles that carry a brand’s advertising message.

14 Weight How much advertising volume is required to accomplish advertising objectives Three weight metrics: Gross ratings Target ratings Effective ratings

15 What Are Ratings? Ratings, in an advertising sense, simply mean the percentage of an audience that has an opportunity to see an advertisement placed in a particular vehicle.

16 Weight: Gross Rating Points Gross rating points, or GRPs, are an indicator of the amount of gross weight that a particular advertising schedule is capable of delivering GRPs=Reach(R) X Frequency(F)

17 Determining GRPs in Practice GRPs are the sum of all vehicle ratings in a media schedule Rating: proportion of the target audience presumed to be exposed to a single occurrence of an advertising vehicle in which the advertiser’s brand is advertised

18 Weight: Target Rating Points (TRPs) Adjust a vehicle’s rating to reflect just those individuals who match the advertiser’s target audience

19 The Concept of Effective Reach How often does the target audience have an opportunity to be exposed? Effective reach is based on the idea that an advertising schedule is effective only if it does not reach members of target audience too few or too many times

20 Effective Reach in Advertising Practice 3-10 exposures during a media- planning period (typically 4 weeks) Using multiple media Subjective factors must be considered

21 An Alternative: Frequency Value Planning The objective is to select the media schedule that generates the most exposure value per GRP.

22 Continuity How advertising is allocated during the course of an advertising campaign: how should the media budget be distributed? Continuous advertising schedule: an equal number of ad dollars are invested throughout the campaign Pulsing: some advertising is used during every period of the campaign, but the amount of advertising varies from period to period. Flighting: the advertiser varies expenditures throughout the campaign and allocates zero expenditures in some months.

23 Recency Planning (a.k.a. The Shelf-Space Model) (1)Consumers’ first exposure to an advertisement is the most powerful (2)Advertising’s primary role is to influence brand choice (2) Achieving a high level of weekly reach for a brand should be emphasized over acquiring heavy frequency

24 Optimizing Weekly Reach Advertising teaches consumers Influence brand selection Messages are most effective when close to purchase time Cost-effectiveness of first exposure is greater than subsequent Allocate budget to reach consumers often Reach target audience continuously rather than sporadically

25 Cost considerations Cost per Thousand (CPM) Target Market (TM) CPM= Cost of ad # of contacts (expressed in thousands) CPM-TM= Cost of ad # of TM contacts (expressed in thousands)

26 Tradeoffs Tradeoff must be made because media planners operate under the constraint of a fixed advertising budget

27 Media Planning Software 1. User develops a media database 2. User selects criterion for schedule optimization 3. User specifies constraints 4. User seeks out the optimum media schedule

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