1. Media Planning and Buying
Chapter 8
Media Planning and Buying

2. Learning Objectives
Learn about major decisions involved in media planning.
Understand fundamental terms of media planning.
Learn how to calculate media measures.
Learn to use secondary data frequently used in media planning.

3. Media Planning What is media planning? “I know half the money I spend
On advertising is wasted, but I
Can never find out which half.”
(JW)
What is media planning?
--The process of designing a course of action that shows how advertising time and space will be used to contribute to the achievement of marketing objectives.

4. Problems in Media Planning
Insufficient information
Inconsistent terminologies
Time pressures
Difficulty measuring effectiveness 2 2

5. Staging a Media Plan
A Media Plan is a Written Document that Summarizes the Recommended Objectives, Strategies, and Tactics Pertinent to the Placement of a Company’s Advertising Messages.
Background and
Situation Analysis
Discusses Media Options, Opportunities and Target Audience.
Media Objectives &
Aperture Opportunities
Goal or Task that Media Can Accomplish Based on Aperture Opportunities.
Strategy:
Selection of Media
Explains Why a Single Medium or Set of Media is Appropriate.
Flow Chart Scheduling
& Budgeting
Media Buyers Convert Objectives and Select, Negotiate, & Contract for Media Space.

6. Consumer Attitudes Toward Media (abbreviated)
Authoritative
Influential 3% 2% 3%
11% 9% 5%
20%
57%
81% 9%
Television
Newspapers
Don’t know
Radio
Magazines

7. Changes in Percentage of Network Commercial by Length

8. Setting Media Objectives
Whom to Advertise To
Which Geographic Areas to Cover
When to Advertise
Setting Media Objectives
What the Duration of the Campaign Should Be
The Basic Goals That Direct Media Strategy Typically Focus on:
What the Size or Length of the Ad Should Be

9. Specifying Media Objectives
1. What proportion of the target audience should be exposed to our message
“Reach”
2. How often should the target audience be exposed to our message?
“Frequency”
-- “Motivational frequency”
-- “Effective reach and frequency”

10. Advertising Response Curves
Frequency
a. S-shaped response curve
b. Convex response curve
Threshold

11. When high frequency is required
A new brand
A smaller, less known brand
A low level of brand loyalty
Relatively short purchase and use cycle
With less involved (motivated and capable) target audiences
With a great deal of clutter to break through (Joseph Ostrow at Y & R, JAR, 1984)

12. Specifying Media Objectives (cont’d)
3. How much total advertising is necessary to achieve the reach and frequency objective?
“Weight” (GRPs/TRPs, Gross Impressions)
- FCB research: no awareness with <1000 GRPs
4. How to schedule the advertising campaign?
“Scheduling” or “Continuity”
- Continuous scheduling
- Pulsing
- Fighting

13. Three Methods of Media Scheduling
Continuity
Flighting
Pulsing
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

14. Specifying Media Objectives (cont’d)
5. What is the least expensive way to accomplish media objectives?
“Cost”: Absolute and relative costs
- CPM or CPP: Measures cost efficiency
6. Other considerations
-- Geographic coverage
-- Qualitative media environment
-- Recall research
* Confusing terms

15. EXH 9-11

16. How to Use Reach and Coverage
To express a whole number or percentage of different people actually exposed only once to a media vehicle to combination of vehicles.
Example: Television program X reaches 9 million men aged within a four-week period.
Example: Magazine Y has a reach of 25 percent of men aged with an average issue.

17. How to Use Reach and Coverage
Use Coverage
To express the potential audience of a broadcast medium or the actual audience of a print medium exposed only once.
Example: A network television program may have a coverage of 95 percent of TV homes in the U.S.
Example: Magazine Y has 25 percent coverage of men aged (Means same as reach.)

18. Some Basic Terms Used in Media Planning
Gross impressions: the sum of the audience of all media vehicles used within a designated time period
Jeopardy: 3,270,000 x 4 messages =13,080,000
People: 8,620,000 x 2 messages = 17,240,000
Time: ,700,000 x 2 messages = 3,400,000
---> 33,720,000 gross impressions

19. Relative Cost: CPM = Cost of ad space X 1,000 /number of readers
Newsweek
Per-page cost: $144,000
Number of readers: 3.1 MM
CPM: $144,000X1,000/
3.1 MM
=$46.45
Time
Per-page cost: $156,000
Number of readers: 4.0 MM
CPM: $156,000X1,000/
4.0 MM
=$39.00

20. Relative Cost:CPRP = Cost of ad time/Program rating
Drew Carey
Cost per spot ad: $3,500
Rating: 11
CPRP: $3,500/11
=$318.18
Survivor
Cost per spot ad: $4,000
Rating: 15
CPRP: $4,000/15
=$266.64

21. Super Bowl Options Source: N. W. Ayer (1994)
Notes: Ratings points/reach comparisons are based on adults Reach is based on actual delivery of each schedule from the week of November 15, Nielsen’s cumulative audience data were used for this analysis. Costs were based on October Media Watch figures. A single Super Bowl commercial (30 seconds) cost $900,000 in 1994.

22. Some basic terms used in media planning (cont’d)
GRPs: the sum of the total exposure potential of a series of media vehicles as a % of the audience population
-- GRPs = Reach x Average frequency
TRPs: ….. As a % of the target audience population

23. U.S. Main Media Volume (in percentage), Analyzed by Media Groups
SOURCE: reprinted with permission from Advertising Age, various dates. Copyright Crain Communications Inc., 1998.

24. Using Electronic Media

25. Using Electronic Media
Rating/Share/HUTS
CDI and BDI

28. CDI and BDI
The Brand Development Index (BDI) helps marketers factor the rate of product usage by geographic area into the decision process.
The Category Development Index (CDI) is computed in the same manner as the BDI, except it uses information regarding the product category (as opposed to the brand) in the numerator.

29. Using CDI and BDI to determine market potential

30. Using BDI and CDI Indexesv
High BDI
Low BDI
High CDI
High market share
Good market potential
Low market share
Low CDI
Monitor for sales decline
Poor market potential
High BDI and high CDI This market usually represents good sales potential for both the product category and the brand.
High BDI and low CDI The category is not selling well, but the brand is; probably a good market to advertise in but should be monitored for declining sales.
Low BDI and high CDI The product category shows high potential but the brand is not doing well; the reasons should be determined.
Low BDI and low CDI Both the product category and the brand are doing poorly; not likely to be a good place for advertising.

31. Using Printing Media Newspaper rate
-- SAUs (Standard Advertising Unites) in 1984
-- Flat rate v. open rate
-- Run-of-paper v. preferred position rate
-- Combination rate: several nps as a group
-- National advertisers pay much more for newspaper space

32. Using Print Media Magazine circulation
Primary circulation (in-home readers):
Subscription + news stand (a single copy circul.)
A basis for rate structure
Secondary circulation (out-of-home readers)
Paid circulation v. controlled circulation
Guaranteed circulation v. verified circulation
ABC (Audit Bureau of Circulations)
Total audience=readers per copy x circulation of an average issue

33. SMRB/MRI Reading Base: Female Homemakers
Top Row: There are 86,474,000 female homemakers in the U.S.
Column A: 77,418,000 female homemakers use breakfast cereals.
Column B: All female homemakers using breakfast cereals is equal to 100% (i.e., base).
Column C: 89.5% of the total female homemakers use breakfast cereals .

34. Second Row: There are 3,925,000 female homemakers who read the magazine, Money.
Column A: 3,448,000 readers of Money use breakfast cereals.
Column B: 4.5% of all users of breakfast cereals read Money.
Column C: 87.8% of Money readers are users of breakfast cereals
Column D: Money readers are 2% less likely to use breakfast cereals than all U.S. female homemakers .

35. Review Learn about major decisions involved in media planning.
Understand fundamental terms of media planning.
Learn how to calculate media measures.
Learn to use secondary data frequently used in media planning.