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Media Planning and Strategy

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Presentation on theme: "Media Planning and Strategy"— Presentation transcript:

1 Media Planning and Strategy
10 Media Planning and Strategy

2 Media Terms and Concepts
The specific carrier within a medium category Media Vehicle Number of different audience members exposed at least once in a time period Reach Relation to Text This slide relates to pages of the text. Summary Overview This slide shows some of the various terms used in media planning and strategy. Use of this Slide This slide can be used to introduce and provide a brief overview of the basic terms and concepts of media planning and strategy. The potential of audience that might receive the message through the vehicle Coverage Number of times the receiver is exposed to the media vehicle in a time period Frequency 10-2

3 Developing the Media Plan
Situation analysis Marketing strategy plan Creative strategy plan Setting media objectives Determining media strategy Relation to Text This slide relates to page 331 of the text and Figure 10-2. Summary Overview The various steps and activities involved in developing a media plan are presented on this slide. Use of this Slide This slide can be used to introduce and provide an overview of the activities involved in developing a media plan. The plan determines the best way to get the advertiser’s message to the market. The basic goal being to find that particular combination of media that: Enables the marketer to communicate the message in the most effective manner To the largest number of potential customers At the lowest cost More detailed discussion of these activities follows. Selecting broad media classes Selecting media within class Media use decision — print — broadcast — other media 10-3

4 Media Planning Difficulties
Measurement Problems Lack of Information Problems in Media Planning Relation to Text This slide relates to pages of the text. Summary Overview This slide shows some of the problems that contribute to the difficulty of developing the media plan and thus may reduce its effectiveness. Use of this Slide This slide can be used to discuss some of the problems associated with media planning that can make planning difficult or diminish its effectiveness. Measurement problems occur frequently and only estimates are available Lack of information about markets and media; not measured or too costly Inconsistent terminology usually arises from confusion or lack of standard measurements Time pressures results in decisions being made without proper planning and analysis Time Pressure Inconsistent Terminology 10-4

5 Developing a Media Plan
Analyze the market Establish media objectives Relation to Text This slide relates to pages of the text and Figure 10-4. Summary Overview This slide shows the five steps of the media planning process. Use of this Slide This slide can be used to introduce and briefly explain the various steps involved in the media planning process. Analyze the market Establish the media objectives Develop and implement the media strategy Performance evaluation and follow-up Develop/implement media strategy Evaluate performance 10-5

6 The Traditional Media Landscape
Satellite radio stations 2 Broadcast networks (TV and cable) 100 TV stations 3,510 Satellite radio stations 2 Broadcast networks (TV and cable) 100 TV stations 3,510 Relation to text This slide relates to the material on pp and Figure 10-1 in the text. Summary Overview This slide shows the various forms of media and the number that exist in the United States as of May 16, There are also out-of-the-home media such as outdoor advertising, transit advertising, and electronic billboards. Use of this slide This slide can be used during a discussion of the many forms of media and media selection. Each form of media has advantages and disadvantages depending on the message that the advertiser is trying to convey. Newspapers (daily and weekly) 8,100 Radio stations 13,898 Consumer magazines 5,340 Newspapers (daily and weekly) 8,100 Consumer magazines 5,340 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

7 Analyzing Market Potential
Index Number Percentage of users in a demographic segment Relation to text This slide relates to the material on pp and Figures 10-5, 10-6 and 10-7 of the text. Summary Overview Key questions to be answered in the market analysis stage are to whom shall we advertise, where (geographically) and when should we advertise and should we focus our efforts? There are several indices available to marketers to assist in answering these questions. The index number, using the ratio of the following variables, is considered a good indicator of market potential: Percentage of users in a demographic segment Percentage of population in the same segment An index number over 100 means use of the product is proportionately greater in that segment than in one that is average (100) or less than 100. Use of this slide This slide can be used to the discuss the value of raw numbers provided by such firms as the Simmons Market Research Bureau and Mediamark Research Inc. versus percentage figures and index numbers. Index = X 100 Percentage of population in the same segment © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

8 Brand and Category Analysis
Brand Development Index Percentage of brand to total U.S. sales in market Percentage of total U.S. population in market BDI = X 100 Relation to text This slide relates to the material on pp and Figures and of the text. Summary Overview There are several indices available to marketers to assist in answering these questions. One of these is the Brand Development Index (BDI) which is shown on this slide. It assists marketers in answering the question as to where to allocate the media budget. The index uses the ratio of the following variables: Percentage of the brand to total U.S. sales in a given market Percentage of total U.S. population in the given market By performing the mathematical calculations on the slide the advertiser would be able to determine the sales potential for the brand in that market area. The higher the BDI number the greater the potential that exists in a particular market. Use of this slide This slide can be used to explain the Brand Development Index. This index helps marketers factor the rate of product usage by geographic area into the decision of where to allocate their media budget. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

9 Brand and Category Analysis
Category Development Index Percentage of total product category sales in market Percentage of total U.S. population in market CDI = X 100 Relation to text This slide relates to material on pp and Figure of the text Summary Overview This slide shows the Category Development Index (CDI) which is another index that can be useful to marketers in determining where to allocate the media budget. It is computed in a manner similar to the BDI index, except that it uses information regarding the overall product category rather than for specific brands. This index uses the ratio of the following variables: Percentage of the total product category sales in a given market Percentage of total U.S. population in the given market By performing the mathematical calculation shown on the slide, the advertiser is able to determine the potential for development of the total product category in a given area. Use of this slide This slide can be used to explain the Category Development Index. When this information is combined with the BDI, a much more insightful promotional strategy may be developed. Beginning with the CDI, the marketer can first look at how well the product category does in a specific market area. Then a brand analysis would follow to see how well the brand is doing relative to its competitors. Together this information provides a clearer picture of where to allocate the media budget. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

10 Brand and Category Analysis
High BDI Low BDI High market share Good market potential High market share Good market potential Low market share Good market potential Low market share Good market potential High CDI Relation to text This slide relates to material on pp and Figure of the text. Summary Overview This slide summarizes the use of the BDI and CDI indices as relates to market potential and market share. As the chart shows, high BDI and CDI means there is greater market share and greater market potential. The lower these two indices are, the lower the market potential. Knowing this information helps marketers decide where their ad dollars should be spent to achieve the desired outcome. Use of this slide This slide can be used to further explain the use of the BDI and CDI indices. The following slide provides more details regarding the implications of these indices. High market share Monitor for sales decline High market share Monitor for sales decline Low market share Poor market potential Low CDI © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

11 Brand and Category Analysis
High BDI Low BDI The market usually represents good sales potential for both the product and the brand. The market usually represents good sales potential for both the product and the brand. The product category shows high potential but the brand isn’t doing well; the reason should be determined. The product category shows high potential but the brand isn’t doing well; the reason should be determined. High CDI Relation to text This slide relates to material on pp and Figure of the text. Summary Overview This slide provides further insight into some of the inferences based on BDI and CDI data for a given geographic area. Some inferences regarding the market potential for the brand and the category are: High BDI/High CDI – good sales potential for brand and product category Low BDI/High CDI – category has high potential, but brand isn’t doing well; determine why High BDI/Low CDI – category is not doing well, but brand is; may be a good market in which to advertise Low BDI/Low CDI – both category and brand are not doing well, not a good market in which to advertise Use of slide This slide can be used to further explain the use of the BDI and CDI data. Knowing this information helps marketers decide where their advertising dollars should be spent to achieve the most impact. The category isn’t selling well but the brand is; may be a good market in which to advertise but should be monitored for sales decline. The category isn’t selling well but the brand is; may be a good market in which to advertise but should be monitored for sales decline. Both the product category and the brand are doing poorly; not likely to be a good place to advertise. Low CDI © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

12 Developing Media Strategies
Criteria to consider during plan development The media mix Target market coverage Geographic coverage Scheduling Reach and frequency Recency Creative aspects and mood Flexibility Budget Relation to Text This slide relates to material on page 341 of the text and Figure Summary Overview This slide lists a number of criteria that must be considered during the development of media plans. Use of this Slide Use this slide to review the criteria that must be considered during the development of media plans. That is, media planners must develop and implement media strategies, which evolve directly from the actions required to meet previously determined objectives. This involves consideration of the criteria shown on this slide. 10-12

13 Selection considerations
The Media Mix Relation to Text This slide relates to pages of the text. Summary Overview This slide lists a number of criteria that must be considered before making a media selection decision. Use of this Slide Use this slide to discuss how one chooses one medium and one medium vehicle from among the many that are available. While it is possible that only one medium and/or vehicle may be employed, it is much more likely that a mix will be the optimum choice. For example, consider a promotional situation in which a product requires a visual demonstration to be commercially effective. In this case, TV may be the most effective medium. However, if the promotional strategy calls for coupons to stimulate product trials, print media may be necessary. For in-depth information, an Internet website may be best. By combining media, marketers can increase coverage, reach and frequency levels while improving the likelihood of achieving overall communications and marketing goals. Selection considerations Objectives sought Product or service characteristics Budget Individual preferences 10-13

14 Target Audience Coverage
Market Proportion Full Coverage Partial Exceeding Target Market Relation to Text This slide relates to pages of the text and Figure Summary Overview The chart on this slide shows the market coverage possibilities. Use of this Slide This slide can be used to show the various target market coverage scenarios. Developing media strategies involves matching the coverage of the media vehicles to the target market. Chart 1 – shows the target market as a proportion of total population Chart 2 – full coverage of the target market; optimal goal Chart 3 – partial coverage, leaving some customers without exposure Chart 4 – media coverage exceeds target audience; some coverage may be wasted The goal of the media planner is to extend media coverage to as many members of the target audience as possible, while minimizing the amount of excess or wasted coverage. Population excluding target market Target market Media coverage Media overexposure 10-14

15 Geographic Coverage Relation to Text This slide relates to pages 343 of the text. Summary Overview This slide contains a photograph that represents a specific geographic area. Use of this Slide Use this slide to point out that weighting certain geographic area more than others may make sense, depending on the product or service being marketed and the goal of the advertising campaign. Snow skiing is more popular in some parts of the country than in others. It would not be wise to promote skis in areas of low interest, unless the goal is to increase interest. And while it may be possible to promote an interest in skiing in Texas, a notable increase in sales is not likely, given the market’s distance from snow. 10-15

16 Scheduling Methods Continuity Flighting Pulsing
Relation to Text This material relates to page 344 and Figure of the text. Summary Overview This slide illustrates the various scheduling options available to advertisers. Use of this Slide The primary objective of media scheduling is to time advertising efforts so that they will coincide with the highest potential buying periods. This slide shows the three scheduling methods available to the media planner: Continuity… continuous pattern of advertising; every day, every week, or every month Flighting… intermittent periods of advertising and no advertising Pulsing… combination of continuity and flighting; continuity is maintained but at certain periods advertising is increased. The optimal schedule can be affected by buying cycles. Continuity… appropriate with food products, household products and products consumed on an ongoing basis. Flighting… well suited to seasonal or other products that are consumed mostly during certain time periods. Pulsing… used for products with little sales variation from period to period, but might see some increase in certain times, such as cold beverages in the hot summer months. Pulsing Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 10-16

17 Gross ratings points (GRPs) Target ratings points (TRPs)
GRP = Reach X Frequency Target ratings points (TRPs) The number of people in the primary target audience the media buy will reach The number of times they will be reached Relation to Text This material relates to pages of the text. Summary Overview This slide defines GRPs and TRPs. Use of this Slide To determine how much advertising is necessary to accomplish the advertiser’s objectives, marketers rely on ratings (the number of people reached) and frequency (the average number of times exposed) figures. Gross ratings points (GRPs) are a summary measure that combines the program rating and the average number of times the home is reached during this period (frequency of exposure). GRPs are based on the total audience the media schedule may reach using a duplicated reach estimate. Target ratings points (TRPs) refer to the number of people in the target audience the media buy will reach—and the number of times. Unlike GRP, TRP does not include waste coverage. Given that GRPs do not measure actual reach, the advertiser must ask: How many GRPs are needed to attain a certain reach? How do these GRPs translate into effective reach? 10-17

18 Effective Reach Relation to Text This slide relates to pages of the text and Figure Summary Overview This slide shows a graph of effective reach, which represents the percentage of a vehicle’s audience reached at each effective frequency increment. Use of this Slide This slide can be used to explain the concept of effective reach and the fact that viewers may need to be exposed to a message more than once for successful communication to occur. Effective reach, as shown on the shaded area of this graph, is between 3 to 10 exposures. Fewer than 3 exposures is considered inefficient reach, while more than 10 is considered overexposure. The exposure level is no guarantee of effective communication, as different messages may require more or fewer exposures. This graph shows 3 exposures to be a minimum. However, recent literature suggests that, in the current environment where consumers are exposed to thousands of daily messages, effective reach may now require a minimum of 12 messages. Additionally, the complexity of the message, message length, and recency of the exposure can also have an impact on effective reach. 10-18

19 Message Factors Determining Frequency
or Creative Factors Message Complexity Message Uniqueness New vs. Continuing Campaigns Image Versus Product Sell Relation to Text This slide relates to Figure on page 351 of the text. Summary Overview This slide lists the message or creative factors that impact the determination of frequency levels. Use of this Slide This slide can be used to discuss the various message factors that affect the advertisers’ decisions regarding frequency levels needed to communicate effectively. Message complexity – the simpler the message, the less frequency required Message uniqueness – the more unique the message, the less frequency required New vs. continuing campaign – new campaigns require a higher frequency Image vs. product sell – creating an image requires a higher frequency Message variation – a single message requires less frequency Wearout – higher frequency leads to faster wearout Advertising units – larger units require less frequency Message Variation Wearout Advertising Units 10-19

20 Media Factors Determining Frequency
Clutter Scheduling Repeat Exposure Media Factors Relation to Text This slide relates to Figure on page 351 of the text. Summary Overview This slide lists the message or creative factors that impact the determination of frequency levels. Use of this Slide This slide can be used to discuss the various media factors that affect the advertisers’ decisions regarding frequency levels needed to communicate effectively. Clutter – more clutter requires higher frequency Repeat exposures – media that allow for more repeat exposures require less frequency Editorial environment – the more consistent the ad is with the editorial environment the less frequency required Number of media used – fewer media the lower the frequency required Attentiveness – the higher the level of attention achieved by the media, the less frequency required Scheduling – continuous scheduling requires less frequency Attentiveness Editorial Environment Number of Media Used 10-20

21 Creative Aspects and Mood
Media may drive strategy, or strategy may drive media Media and creative departments must work closely together Mood Media can drive mood Media and vehicle image can carry over to the message placed within them Relation to Text This slide relates to page 352 of the text. Summary Overview This slide introduces the topics of mood and creativity, and how they work with media. Use of this Slide Use this slide to introduce these basic ideas: A specific creative strategy may require a certain media The medium in which an ad is placed may affect viewers’ perceptions of the ad Consider the image that might be created if your product were to be advertised in the following media: The New York Times versus the National Enquirer A highly rated prime-time TV show versus an old rerun Television versus the Internet 10-21

22 Flexibility in Media Planning Strategies
Market opportunities Market threats Flexibility Relation to Text This slide relates to pages of the text. Summary Overview This slide shows some areas where flexibility in a media strategy may be needed to avoid lost opportunities and address new threats. Use of this Slide This slide can be used to discuss the importance of a flexible media strategy. Because of the rapidly changing market environment, strategies may need to be modified at any time. Market opportunities. Sometimes a market opportunity arises that the advertiser wishes to take advantage of. Market threats. Internal or external factors may pose a threat to the firm, and a change in media strategy is dictated. Availability of media. Sometimes a desired medium (or vehicle) is not available to the marketer. Changes in media or in media vehicles. A change in the medium or in a particular vehicle may require a change in the media strategy. Changes in media or media vehicle Availability of media 10-22

23 Determining Relative Cost of Print Media
Cost per thousand (CPM) Relation to Text This slide relates to pages of the text. Summary Overview This slide shows the Cost per thousand (CPM) formula. Use of this Slide Advertising and promotional costs can be categorized in two ways: Absolute cost… the actual total cost required to place the message Relative cost… the relationship between the price paid for advertising time or space and the size of the audience delivered. Use this slide to discuss how the relative cost of print media is calculated. In essence, it is the cost per thousand people reached and is calculated for print media such as magazines by dividing the cost of the ad space by the circulation and multiplying this amount by 1000. The cost per thousand may over- or under-estimate the actual cost effectiveness. A medium with a much higher CPM may be a wiser buy if it reaches more potential customers. Most media buyers rely on target CPM or TCPM, which calculates CPMs based on the target audience, not the overall audience. Cost of ad space (absolute cost) CPM = X 1,000 Circulation 10-23

24 Calculating CPM Based on the Target Audience
Relation to text This slide relates to material on pp of the text, which discusses the relative cost of media. Summary Overview The cost per thousand may overestimate or underestimate the actual cost effectiveness. Consider a situation where some waste coverage is inevitable. The circulation exceeds the target market. If the people reached by this message are not potential buyers of the product, then having to pay to reach them results in too low a cost per thousand, as shown in Scenario A. We must use the potential reach to the target market – the destination sought – rather than the overall circulation figure. Use of this slide This slide can be used to discuss that most media buyers rely on target CPM, or TCPM, which calculates CPMs based on the target audience, not the overall audience. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

25 Determining Relative Cost of Broadcast Media
Cost per rating point (CPRP) Relation to Text This slide relates to page 354 of the text. Summary Overview This slide shows the cost per rating point (CPRP) formula used to calculate the cost of broadcast media (often referred to as cost per point or CPP). Use of this Slide This slide can be used to demonstrate how the relative cost of broadcast media is calculated by using the cost per rating point formula. A rating point represents 1 percent of all households in a particular area who are tuned into a specific program. Cost of commercial time CPRP = Program rating 10-25

26 Determining Newspaper Advertising Costs
Daily Inch Rate Relation to Text This slide relates to page 354 of the text. Summary Overview This slide shows the daily inch rate formula used to calculate the cost of newspaper advertisements. Use of this Slide This slide can be used to demonstrate how one would calculate the cost of running an advertisement in a newspaper. Cost effectiveness is based on the daily inch rate, which is the cost per column inch of the paper. Like magazines, newspapers now use the cost-per-thousand formula to determine relative costs. Cost of ad space x 1,000 Circulation 10-26

27 Television Pros and Cons
Mass coverage High reach Sight, sound, motion High prestige Low cost per exposure Attention getting Favorable image Advantages Short message life High production cost Low selectivity High absolute cost Clutter Disadvantages Relation to Text This slide relates to page 356 of the text and Figure Summary Overview This slide summarizes the various advantages and disadvantages of using television as a medium. Use of this Slide This slide can be used to provide a brief overview of the advantages and disadvantages of using television as an advertising medium. Some of the more noteworthy advantages are the fact that TV is a mass medium with high reach and it provides a combination of sight, sound, and motion. TV also offers low cost per exposure, is attention getting, and has a favorable image. The major disadvantages of TV are that it has low selectivity, a short message life, high absolute cost, potentially high production costs, and is cluttered. 10-27

28 Well-segmented audience
Radio Pros and Cons Local coverage Low cost High frequency Flexible Low production cost Well-segmented audience Advantages Clutter Fleeting message Audio only Low attention getting Disadvantages Relation to Text This slide relates to page 356 of the text and Figure Summary Overview This slide summarizes the various advantages and disadvantages of using radio as a medium. Use of this Slide This slide can be used to provide a brief overview of the advantages and disadvantages of using radio as an advertising medium. Some of the more noteworthy advantages are the fact that radio has local coverage, is low cost, and may result in high frequency of exposures. The major disadvantages of radio advertising is that it has high clutter, low attention getting ability, and provides only an audio message. 10-28

29 Magazine Pros and Cons Advantages Disadvantages Segmentation potential
Quality reproduction High information content Longevity Multiple readers Advantages Relation to Text This slide relates to page 356 of the text and Figure Summary Overview This slide summarizes the various advantages and disadvantages of using magazines as an advertising medium. Use of this Slide This slide can be used to provide a brief overview of the advantages and disadvantages of using magazines. Some of the more noteworthy advantages of magazines as advertising media vehicles are the fact that they have good potential for segmentation, provide quality reproduction, and have longevity. The major disadvantages include having a long lead time, providing only a visual message, and inflexibility. Visual only Long lead time for ad placement Lack of flexibility Disadvantages 10-29

30 Newspaper Pros and Cons
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 Advantages Clutter Poor reproduction quality Short life Low attention getting Selective reader exposure Disadvantages Relation to Text This slide relates to page 356 of the text and Figure Summary Overview This slide summarizes the various advantages and disadvantages of using newspapers as a medium. Use of this Slide This slide can be used to provide a brief overview of the advantages and disadvantages of using newspapers as an advertising medium. Some of the more noteworthy advantages are the fact that they have good potential for high coverage, the cost is relatively low, and they have short lead times. The major disadvantages of newspapers are that they have a short reading life, high levels of advertising clutter, and may have low attention getting ability. 10-30

31 Outdoor Pros and Cons Disadvantages Advantages Short exposure time
Short ads Local restrictions Short exposure time Poor image Disadvantages Relation to Text This slide relates to page 356 of the text and Figure Summary Overview This slide summarizes the various advantages and disadvantages of using outdoor as an advertising medium. Use of this Slide This slide can be used to provide a brief overview of the advantages and disadvantages of using outdoor advertising. Some of the more noteworthy advantages are the fact that outdoor ads are location specific, easily noticed, and allow for high repetition. The major disadvantages are that an outdoor advertisement has a short exposure time, can accommodate only short messages, and may have a poor image. Location specific High repetition Easily noticed Advantages 10-31

32 Direct Mail Pros and Cons
High selectivity Reader controls exposure High information content Repeat exposure opportunities Advantages Relation to Text This slide relates to page 356 of the text and Figure Summary Overview This slide summarizes the various advantages and disadvantages of using direct mail as a medium. Use of this Slide This slide can be used to provide a brief overview of the advantages and disadvantages of using direct mail as an advertising medium. Some of the more noteworthy advantages of direct mail are that it is highly selective, the reader controls the exposure, and a great deal of information can be provided. The major disadvantages of direct mail are high cost-per-exposure, clutter, and poor image. Poor image (junk mail) High cost per contact Clutter Disadvantages 10-32

33 Internet Pros and Cons Advantages Disadvantages
User selects product information User attention and involvement Interactive relationship Direct selling potential Flexible message platform Advantages Lack of controls Questionable measurement techniques Clutter Limited reach Disadvantages Relation to Text This slide relates to page 356 of the text and Figure Summary Overview This slide summarizes the various advantages and disadvantages of using the Internet as an advertising medium. Use of this Slide This slide can be used to provide a brief overview of the advantages and disadvantages of using the Internet as an advertising medium. Some of the advantages of the Internet are the fact the user selects the information, is usually attentive and involved, and the medium is interactive. The major disadvantages of the Internet are limited creative capabilities, web snarl, and a lack of valid measurement techniques. 10-33


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