Advertising Budgeting, Media,
and Media Planning
Mkt 340
Prof. Bill White
The Advertising Budget
Setting the Budget
Percentage of Sales
Payout Plan
Competitive Budgeting
The Task or Objective Method



What’s the objective?
What type and how much media needed?
Can we afford it?
Arbitrary
Administering and Protecting the Budget
Media Defined
The vehicles that carry the ads to the
target market.
Which is most important? Picking the
correct media or having great creative?
What are the types of media?
Examples of Nontraditional Media
ABC Inflight
ActMedia
Aislevision
Aladdin’s Castle
Beyond the Wall
Channel One
CineSpot
CNN Airport Network
Cover Concepts Book Covers
Go Cards
Instant Coupon Machine
Military MediaBoards
Miller Airship
Resort Sports Network
Roadmark Fleet Advertising
Screenvision
U
Airplanes
Supermarkets
Supermarkets
Malls
College posters
High schools
Cinemas
Airports
High schools
Health clubs, restaurants
Supermarkets
Military bases
Blimps
Resorts
Trucks
Cinemas
College newspapers
Sample of a Syndicated Media List
MAGAZINES
RADIO
NETWORK TV
CABLE NETWORKS
Allure
Adult Contemporary American Gladiators Arts & Entertainment
American Baby
All News
America’s Funniest.. American Movie Classics
American Health All Sports
America’s Most…
Black Entertainment TV
American Hunter AOR/Progressive Rock Baywatch
The Box
American Legion Black
Beverly Hills 90210 Bravo
*
*
*
*
*
*
*
*
Working Woman Religious/Gospel
Washington Week… TV Food Network
WWF Magazine Soft Contemporary Wild America
USA Network
Yachting
Spanish
Wings
VH-1
Yankee
Urban Contemporary WKRP in Cincinnati The Weather Channel
YM
Variety
The X-Files
WGN-TV
Source: Mediamark Research, Inc., Spring 1995.
Organization of the Media Function
Media planner
Media buyer
Media researcher
Important Trends in Media
Convergence
Interactivity
Creativity
Optimization
Key Media Terms
 Media plan: document that establishes how
media will be used to disseminate an advertiser’s
message, including objectives and strategy.
 Media objective: statement in media plan that
explains the goals of the plan; usually states how
many of the target will be exposed to advertising
messages in a given time period, and how often.
 Media strategy: statement in media plan that
outlines how objectives will be accomplished;
shows where and when advertising messages will
appear, and at what cost.
Media Planning
Media Planning = Selection + Scheduling
Factors Influencing Media Planning Decisions
Target Market Profile
Looking at Brand/Product Dynamics
The Creative Execution
Budget Considerations and Media Deals
The Competitive Situation
Availability and Timing Considerations
Cost Efficiency (CPM = Cost per thousand (CPM): cost
of reaching 1,000 members of target audience with media
vehicle(s) or plan.)
CPM Formula and Example
CPM =
Cost
X 1,000
Audience
Which is more cost efficient on a CPM basis?
A-- :30 TV Commercial in “Friends”
$250,000
X 1,000 = $12.50
CPM =
20,000,000
B-- :30 TV Commercial in “Monday Night Football”
$300,000
CPM =
X 1,000 = $10.00
30,000,000
Media Selection
Media are evaluated based on selectivity.
There are two types of selectivity:


Class Selectivity is the ability of a medium to reach
the target market without waste.
Geographic Selectivity is the ability of a medium to
cover a particular geographic area without spillover.
How would you rate the different major media
in terms of class and geographic selectivity?
Media Scheduling
Reach
(% of target audience with opportunity for exposure to
media vehicle(s) or media plan in a given time frame)
+
Frequency
(average number of times target is likely to be exposed to
the ad in a given time frame)
100%
The Difference between Reach
and Frequency
Media Scheduling
(continued)
Reach
+
Frequency
+
Continuity
(how long the campaign runs—
continuous vs. flighting vs. pulsation)
100%
Reach, Frequency, and Continuity Relationships with a
Fixed Budget
Media Scheduling
(continued)
Reach
+
Frequency
+
Continuity
+
Dominance/Impact
(the attention-getting ability of the media vehicle(s)
selected to run the ad)
100%
Evaluating the Media: Key Terms
 Rating point: the % of a given population group that uses a
specified media vehicle.
 Share: Households/persons using television (HUT, PUT): % of
homes or people watching TV at a given time.
 Gross rating point (GRP): total number of ratings for different
media vehicles.
 Gross impression: translation of GRPs into people; number of
audience exposures x number of times they will see or hear
vehicles.
 Cost per rating point (CPP): cost of buying one rating point in
a given media vehicle or type.
 Audience: number or % of homes or persons using a media
vehicle.
 Coverage: Same as reach – the % of homes or persons
receiving broadcast signal within specified area, or receiving
specific magazine or newspaper.
Evaluating the Media: Key Terms,
Continued
 Circulation: Total number of copies of a publication sold
through various forms of distribution.
 Readers per copy: average number of people who read
each issue of publication.
Types of Media Plans
Geographic
Local, spot, key market
 Regional
 National
 International

Selective
Combination
Sample Flowchart of a Media Plan
Evaluating the Media Plan
Follow up—getting make-goods, tearsheets.
Measuring the impact:



Test consumer awareness of campaign before,
during, and after.
Sales data.
Compare actual reach/frequency figures to
proposed estimates.
 Syndicated Media Research Services

Nielson, Arbitron, Simmons, Audit Bureau of
Circulation