Media Planning Essentials
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©2012
©2012
Cengage
Cengage
Learning.
Learning.
All Rights
All Rights
Reserved.
Reserved.
MayMay
not not
be scanned,
be scanned,
copied
copied
or duplicated,
or duplicated,
or posted
or posted
to atopublicly
a publicly
accessible
accessible
website,
website,
in whole
in whole
or inorpart.
in part.
Very Important Changes
in Media [1]
1. Agency Compensation
o
o
o
15 percent commission is essentially gone
Most clients now pay on a fee-for-service basis
Ad creation and placement not at same agency
2. More Media
o
o
o
o
Traditional media lines are blurred
Firms push “news” stories into media
Movies/videos can be promotional vehicles
Social “media” offer brand information, but how to “price”
it is a question
3. Going Public
o
o
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Agencies are “leaner” now that they are public firms
Agencies are looking for ways to turn short-term profits
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Very Important Changes
in Media [2]
4. Globalization
o Today media exist in a transnational space—
CNN to Al Jazeera
o Search engines do not recognize national
boundaries (except Google in China!)
o The BRIC countries offer huge opportunity
o Lack of standardized measurement makes
pricing complex
o Globalization is a way of thinking another
challenge in “new media”
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Very Important Changes
in Media [3]
5. Free Content
o
o
o
o
Internet information has consumers used to free content.
Why buy a magazine full of ads for $4.50?
Nontraditional media, which consumers enjoy, are
attracting more dollars.
Consumers are creating “brand material” even ads
on the Internet.
6. Consumer in Charge
o
o
o
o
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E-commerce has revolutionized the way consumers
consume.
Marketers not solely in charge of brand.
Consumer access to more info = more power in the channel.
Consumers have more power in the transaction due to
deal-proneness and price/cost transparency.
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Very Important Changes
in Media [4]
7. Hyper-Clutter and Ad Avoidance
o Worse than ever on TV and in magazines
o Consumers choosing no-ad channels/satellite radio
and DVR ad skipping
o Satellite radio is growing popularity—despite cost
o Ad blocker filters are improving on Web
o People are more willing to pay to avoid ads
8. Multicultural Media
o Ethnic media on rise with ethnic population growth
o Hispanic/Latin/Latino market growing the fastest
o Asian market next fastest growing
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Media Planning
• Media Plan
o Specifies media in which advertising message will
be placed to reach a desired audience
• Media Class
o Broad category of media, such as TV, radio, or
newspapers
• Media Vehicle
o Specific option within a class, i.e., Vogue
magazine
Media Mix
o Blend of different media to reach target audience
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Overall Media Plan
Media Strategies
Media Choice
•Reach the target audience
•Geographic scope of placement
•Geo-targeting
•Media efficiency (CPM, CPRP)
More Media Strategies
•Reach and frequency
•Message weight
•Gross impressions
•Audience duplication
•Continuity
Length/size of advertisement
•Media context
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Target Audience
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Media Planning: Strategies [1]
• Reach the target audience
o
Demographic, geographic, lifestyle/attitude define
choices
o
Single-source tracking services help identify effect of
placements
• Geographic scope of media placement
o
Geo-targeting of regions of high-purchase density
o
Reach and frequency decisions
Effective reach and effective frequency determination
Message weight
Gross impression calculation for impact
Between vehicle duplication
Within vehicle duplication
o
o
o
o
o
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Media Planning:
Media Efficiency
CPM =
(cost per thousand)
CPM-TM =
(cost per thousand-target market)
CPRP =
(cost per rating point)
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Cost of media buy
Total audience
X 1000
Cost of media buy
Targeted audience
X 1000
$$$ For a program placement
Program Rating
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Media Planning: Internet
• Internet Media
– Internet media are “Pull” media
– Traditional media are “Push” media
– Paid search is most potent tool
• Interactive Media
– Overused and ill-defined term
– Includes kiosks to blogs to podcasts to Internet
shopping sites
– RSS is basis for interactivity
• Multiway Communication
– Consumers seek ads/brand contact
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Media Planning: Social Media
• Social Networking
– New paradigm
• Marketer (brand) to consumer then consumer to
consumer
– Marketers can use social media a fraction of cost of
traditional media
– And, 2/3 of consumers visit social network or blog site
• Social media are used to discuss brands
– Social media used to create “buzz” or “viral” effect
– Brand conversations are tracked with net promoter
scores
– Wikis mine and leverage brand communities
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
In Defense of Traditional Advertising
• There are just some things you can’t
accomplish without traditional mass media
ads.
• The Super Bowl or Olympics deliver a truly
mass audience.
• Brand building still needs traditional ads . . .
at least for a while longer.
• Throwing around “new media” planning
buzz words accomplishes much.
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.