ADVERTISING:
The Media Plan
July 17, 2016
Advertising
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Developing the Media Plan
1. Analyze the Market
2. Establish Media Objectives
3. Develop Media Strategy
4. Implement Media Strategy
5. Evaluate Performance
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Target Market Coverage
Population excluding target market
Target market
Media coverage
Media overexposure
Target
Market
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Full
Coverage
Partial
Coverage
Advertising
Coverage
Exceeding
Market
3
Media Terminology
• Reach - The number of audience members
reached at least once (per week).
• Frequency - The number of times a
receiver is exposed to the message per
time period (week).
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Reach
Reach of One Program
Reach of Two Program
Total market audience reached
Total market audience reached
Duplicated Reach of Both
Unduplicated Reach of Both
Total reached with both shows
Total reach less duplicate
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Frequency
1. Three exposures are best.
2. More exposures work, but at a decreasing rate.
3. These principles are consistent across media.
4. Wearout may depend on the message.
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Maximizing Effectiveness
25%
Ineffective
Reach
20%
Effective
Reach
15%
Reach
Ineffective
Reach
10%
5%
0% 0
5
10
15
Frequency
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Frequency: Creative Factors
• Message complexity
• Message uniqueness
• New vs. continuing campaigns
• Image versus product sell
• Message variation
• Wearout
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Frequency: Media Factors
• Clutter
• Editorial environment
• Attentiveness
• Scheduling
• Number of media used
• Repeat Exposures
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Managerial Approaches to Budget
Factors Influencing the Budget Decision
1. Market Size
2. Market Potential
3. Market Share Goals
4. Economies of Scale in Advertising
5. IMC Tools
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High
Low
Competitor’s
Share of Voice
Ad Spending and Share of Voice
Decrease–find a
Defensible Niche
Increase to Defend
Attack With Large
SOV Premium
Maintain Modest
Spending Premium
Low
High
Your Share of Market
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Scheduling Options
Continuity
Flighting
Pulsing
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Scheduling
What products should be scheduled:
1. Continuity?
2. Flighting?
3. Pulsing?
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Comparing the Cost of Media
Cost per rating point (CPM)
CPM =
July 17, 2016
Cost of commercial time
1000 viewers
Advertising
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Exercise: Comparing Costs #1
• Option #1: Wheel of Fortune
• Cost: $9,000
• Viewers: 134,000
• CPM?
• Option #2: Jeopardy
• Cost: $8,050
• Viewers: 111,000
• CPM?
• Which is the better buy?
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Exercise: Comparing Costs #2
• Option #1: Wheel of Fortune
• Cost: $5,000
• Viewers - Women 18+: 68,000
• CPM?
• Option #2: Jeopardy
• Cost: $4,050
• Rating - Women 18+: 91,000
• CPM?
• Which is cheaper way to reach women?
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Software
• Used to optimize media buying
• helps with scheduling
• minimizes cost, waste
• optimizes frequency
• e.g., “Media Flight Plan”
• “IMC Suite”
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New Trend
November 18, 2002 - Strategy Media
Media auditing comes to Canada
'Would you really just hand over $50 million
Patti Summerfield
Today's new emphasis on media buying
accountability is spawning a North American
interest in a practice that's been common in the
U.K. and Europe for decades - media auditing,
or third-party examination of media buys.
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Bottom line
The main GOAL of Media Planning
is to find the most EFFICIENT
means to reach the target audience
• Not always the lowest $!
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Quote of the day
The value of an ad is in inverse
ratio to the number of times it
has been used.
• Raymond Rubicam
(Rubicam and Young)
July 17, 2016
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