COURSE CONTENT 3.08 - PE - Manage media planning and placement to enhance return
on marketing investment
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PI - Determine advertising reach of sport/event media
PI – Calculate media costs
I.
Advertising Reach and Frequency
a. Reach and frequency are both quantitative measures of advertising – often used to determine
costs of media
i. Frequency is the # of times you wish to expose a targeted audience to your
advertisements
ii. Reach is the # of people in a targeted audience exposed to an ad or campaign at least one
time during a designated time period
iii. Reach Calculation % is found by dividing the target audience exposed to the ad by the
total target audience
iv. Reach % = TA ÷ TTA
1. Example: The total target audience for the Carolina Tar Heels Football team is
1,500,000 and those exposed during an ad campaign is 375,000
2. 375,000 ÷ 1,500,000 = 25%
3. So 25% of the total target audience saw the ad at least one time
v. Circulation numbers, subscriptions or rating points are best used to determine &
calculate reach data
vi. Broad reach – is effective for consumer convenience goods like toothpaste (simple
features)
vii. Effective reach - # or % of consumers in a targeted audience exposed to an ad a specific
minimum # of times (more appropriate for targeted SEM consumers) WHY?
II.
Media Costs – How to determine?
a. Circulation (size of the audience)
i. Is the most significant factor affecting media costs
ii. In most cases, the larger the media vehicle’s audience, the higher the cost of advertising
space or time will be.
b. RATE CARDS: Price lists showing rates for space or time
c. Production costs vary a lot across different media
i. High-quality TV and Magazine ads cost a great deal to produce
ii. While local radio and newspaper ads are relatively inexpensive to produce
d. Preferred location of ad
i. time of ad, (day, night, drive time)
ii. position of ads in print and broadcast media – what shows
e. Available discounts
i. size of ad – frequency of purchase - dollar volume
f. Demographic makeup
i. narrowly defined audiences demand higher rates
g. Editorial climate
i. credibility & prestige may influence consumers reaction to an ad
h. Reproduction quality
i. high quality = higher costs
III.
Media costs types – Absolute and Relative
a. Absolute cost
i. What is the total expenditure for an ad
1. Cost of production
2. Cost for time and space purchased
a. Check rate cards found in Standard Rate & Data Service (SRDS)
directories for time & space costs
b. Relative cost
i. To determine if one media type is more efficient or cost effective over another
ii. Use (CPM) - based on cost per thousand
1. Often used in print media and internet
iii. Use (CPRP) - based on cost per rating point
1. Often used in broadcast media and outdoor
iv. Use (GRP) – based on gross rating points across a media platform
IV.
Media costs – How to calculate?
a. Cost per thousand (CPM)
i. Multiply cost of the ad by 1000 then divide by the number of people receiving the
message (reach)
ii. CPM = (Cost of ad x 1000 ÷ by # of target audience)
b. Example:
i. Cost of ad is $50,000
ii. Total audience is 2,000,000
1. ($50,000 x 1000) = $50,000,000
2. ($50,000,000 ÷ 2,000,000) = $25.00
c. Cost per rating point (CPRP)
i. Calculated to determine 1% of audience
d. Cost per gross rating points (GRP)
i. (GRP) = (Reach (x) frequency) - to determine GRP and 240 GRP’s used as a standard of
measurement
ii. The cost per GRP is determined by dividing the total advertising expense by the # of
gross rating points
iii. (GRP) cost = (Expenses ÷ GRP)
e. Example:
i. Total advertising expense is $20,000
ii. The gross rating points for the show is 210
1. $20,000 ÷ 210 = $95.24
V.
Media costs for different mediums
a. Newspapers
i. Rates – how determined
1. circulation and target market are primary factors – great for locals
2. less for local ads vs. national advertisers
3. information given through use of rate cards
ii. Types of rates
1. Run of page – wherever newspaper places the ad
2. Flat rates – used for one time placement
3. Sliding scale rates – more ads will cost less per ad
4. Combination rates – ads and (FSI) will lower rate
5. Volume and consistency rates/discounts
iii. Costs
1. Tend to be lower than other print media
2. Position preferences
a. Example: SEM advertiser wants ad placement in sports section instead of
food or employment opportunity section
3. Color requirements or including (FSI) free standing inserts
b.
c.
d.
e.
4. Split-runs - 2 different ads produced at same time
Magazines
i. Rates – how determined
1. Circulation and target market are primary factors for rates that reach specific
readers for advertisers
ii. Types of rates
1. Size and frequency rates
2. Volume and consistency rates/discounts
3. Combination rates
iii. Costs
1. Tend to be higher than other print media
2. Position preferences – front and back cover, inside front
3. Color requirements
4. Full bleed pages
5. Gatefolds
6. Spreads
Television
i. Most effective way to promote a local event to the public
ii. Very long production lead time
iii. Rates – how determined
1. Larger/higher audience rating & time are the major factors, (Nielsen ratings) are
GRP for television – advertisers will ask for this data
2. SQAD (cost-per-point) x Nielsen ratings determine TV ad costs
3. Rates and schedules change based on local factors
iv. Types of rates
1. Run of schedule – prime time vs. other
2. National network, cable or local network
v. Costs
1. Are higher than any medium
2. Time availability - morning, afternoon, prime time, late night
3. Demand for time – peak winter season
4. Length of ad impact ad & production costs
Radio
i. Effective for local & regional markets – use local personalities
ii. Relatively short production lead time – quick turn around
iii. Very good to hit your demographic target market
iv. Rates, how determined
1. Audience size & composition are the major factors
2. Less than TV but can still be expensive
v. Type of rates
1. Offer the largest discounts of any medium
2. Run of schedule – (all 3 types lower costs)
3. Weekly package (TAPs) total audience plans
4. Volume and consistency rates/discounts
vi. Costs
1. Are lower than TV media
2. Time availability – morning/evening drive
3. Production costs & ad
4. http://www.bestradiocommercials.com/?gclid=CN64k8z73bICFQsFnQodMH8At
A
Internet
i. Very popular 3rd to television and newspaper
ii. Rates – how determined
1. Web-site popularity - browser
iii. Types of rates
1. CPM – cost per 1000 impressions
2. CPC – cost per click
iv. Cost
1. E-mail ads may be very cost effective
2. Creative type – text, image, multimedia
3. Size – banner, pop-up etc.
4. Placement in browsers
5. Delivery type
f. Out-of-home (outdoor and transit)
i. Rates – how determined
1. Audience size based on ad’s visibility, its location and population in area
ii. Types of rates
1. http://clearchanneloutdoor.com/rates/
iii. Costs
1. Size of space
2. Length of time
3. Illumination/movement/3D
iv. Production costs - varies
v. Types of out-of-home
1. Painted bulletins – Spectaculars (as seen here) - Transit advertisements like
subway, cabs, hot air balloons or busses
2. Moveable billboards – very good at promoting an event throughout a
metropolitan area – draws a lot of attention and is seen by a lot of consumers
g. Direct Mail
i. Rates – how determined
1. Vary based on what you wish to accomplish
ii. Types of rates
1. Allows advertisers to target a specific market with the most cost effective manner
but preparation time is longer than radio and newspaper ads
iii. Costs
1. Postage and delivery rates
2. Production costs
3. Mailing list costs
4. Labor costs
5. Total costs can vary and at time be very expensive
VI.
VII.
Selecting advertising media – Why
a. Selection of media is important because it is the largest expenditure of an ad budget
b. Choosing the most cost effective is essential to provide the most effective ad campaign
c. Must select the medium(s) that reaches the target market
Factors impacting your media selection
a. Objectives
i. Your overall goal of advertising
b. Target audience
i. Identify their media-usage habits
ii. You limit waste circulation
c. Competition
i. Most will use the same media so look for alternatives
d. Budget
i. Most companies will have constraints that impact your selection- you can’t do everything
you want
e. Product
i. Nature of product
1. Colorful or luxurious may need demonstrating resulting in media selection – TV
or magazines
2. Other products need different requirements
3. Provide examples for each media type
f. Distribution
i. Location, place or geography
ii. Coverage should be same as product availability
g. Lead time
i. Television and magazines require the longest
ii. Daily newspapers and radio require the least time
h. Quantitative media factors
i. Measured numerically
1. Different methods and types and believed the most important factor
ii. Measure cost efficiency
1. Total cost (varies by medium)
2. Cost per person (reaching potential prospects)
3. Advertisers use CPM, CPRP and GRP
i. Qualitative media factors
i. Not as easy to measure as quantitative
ii. Credibility
1. Medium’s believability to consumers – take seriously
iii. Editorial environment
1. Each type appeals to a specific group of consumers
2. The climate or mood of the media vehicle should compliment product
3. Level of clutter can impact your ad – less is more
4. The impact – impression an ad will make on the target market consumer
j. Media coverage
k. Extensive coverage
i. Reaching a large audience and exposing them at least once to your advertisement (reach)
1. Example: Advertising during The Super Bowl
l. Intensive coverage
i. Reaching a smaller audience more often to drive home the message (frequency)
1. Example: Multiple Renaissance Festival advertisements in newspaper, radio and
TV in the Charlotte market
VIII.
Buy advertising space/time
a. Research
i. Choose a medium/media type to reach your goals
ii. Contact advertising manager
b. Request information
i. Rate cards
ii. Circulation and/or rating numbers
c. Analysis & strategies
i. Determine all costs for your promotional strategy
ii. Make sure you can reach your target market
d. Planning
i. Advertising message
e.
f.
g.
h.
i.
j.
IX.
ii. Pre-production process
Negotiating
i. Go for the numbers (CPM)
ii. Adequate reach & frequency
iii. Review rating services
iv. Negotiate the best price
Scheduling
i. Time of day - placement
ii. Geographic location
iii. Reach & frequency
Placement of ads
Confirmation of ad run
Payment
Evaluation
i. Review for effectiveness
ii. Propose additional strategies
Choose appropriate media vehicles for sports/events
a. Determine the problem
i. Advertising goals
ii. Primary target audience
iii. Competition
b. Consider potential media options & total costs
i. List all media and analyze effectiveness and costs
c. Select the appropriate media and vehicles
i. Review quantitative and qualitative factors
ii. Select one that has right time, place & audience
d. Determine the timing and schedule strategies
i. Select degree of continuity desired
ii. Should be chosen based on advertiser’s needs and type of product
iii. Continuous strategy – ads on a regular basis
1. Good for everyday products like groceries
iv. Flighting strategy – intermittent scheduling
1. Great for seasonal promotions like events
2. Great for introducing new products or events
v. Pulsing strategy – combination, low then high
1. Good for reminding consumers about your product
2. Coca Cola uses this strategy