WHERE/WHEN/HOW
CDI/BDI/INDEX
CPM/CPP
REVIEW
 WHAT IS REACH?
-% OF PEOPLE EXPOSED TO A MESSAGE
 WHAT IS EXCLUSIVE REACH?
-% OF DIFFERENT PEOPLE EXPOSED TO A MESSAGE
 WHAT IS FREQUENCY?
AVERAGE # TIMES PEOPLE EXPOSED
WHAT IS COVERAGE?
POTENTIAL TO BE REACHED
DIFFERENCE-REACH IS ACTUAL
- COVERAGE IS POTENTIAL
REVIEW
(CONT)
HOW DO YOU CALCULATE GRP’S/IMPRESSIONS?
R X F=GRP’S R X F =GROSS IMPRESSIONS

HOW DO YOU CALCULATE FREQUENCY?
F=GRP’S/REACH OR IMPRESSIONS/REACH

HOW DO YOU CALCULATE REACH?
R= GRP’S/FREQUENCY OR IMPRESSIONS/FREQUENCY

OBJECTIVE
Student will learn new terms and apply them in class and out:
Terms: Index, CDI, BDI, CPM, CPP
Student will learn different broadcast dayparts and uses of dayparts.
INDEX
Index based on sales performance % population- a form of % that
relate numbers to a base of 100. Used to demonstrate:
-average
-above average
-below average
In this course we use 2 ways : CDI and BDI

CDI/BDI
 Category
Development Index (CDI)
-addresses category sales-defines pockets of strength and
weakness for a new category entering a market or to
compare CDI to BDI
 Brand
Development Index (BDI
-Generally displayed by region of country and shows how
each area is performing relative to the US performance
-Comparison of product category sales or brand sales with
potential for sales of category or brand based on population
-Allocation of advertising money across marketing regions
-Allocation of extra marketing/advertising dollars
CDI/BDI

CDI
=% of product category’s total U.S. sales in market A
X 100
% of total U.S. population in the same market

BDI
=% of brand’s total U.S. sales in market A____ X
% of total U.S. population in the same market
100
In Class Exercises
1.
2.
Index Number Analysis
BDI/CDI
Interpretation of CDI & BDI
High BDI
Low BDI
High
CDI
Both product and
Brand is doing poorly
brand are doing well: compared to category
“A promising market.” Room for brand to grow
Low
CDI
If the category shows No added investment of
continuous decline,
money
no need to put extra
money.
If the market is being
rejuvenated, then
worth putting in more
money
Weighting of CDI & BDI


Depends on marketing strategy
Examples
 Young brands with limited sales history -more on CDI
 Mature brands -more on BDI
 Safe way is to weight BDI & CDI 50% each
When to Advertise

Decisions about when to advertise depends on number of
important considerations
 When sales are greatest or least
 Budget constraints
 When competitors advertise
 Specific goals for the brand in question
 Availability of product
 Promotional requirement
One point underlies
 Advertise when people tend to buy the product
When-Analyze monthly sales
Snow blower in New York…October or June?
Ice Cream…May-Aug
Ice Cream Sales NE Region
MONTH
CATEGORY
BRAND
INDEX
January
8.2%
6.5%
83
February
7.7
6.5
85
March
8.5
8.2
96
April
8.2
7.5
91
May
8.5
8.9
105
June
8.2
8.9
109
July
8.5
9.4
110
August
8.5
10.3
121
September
8.2
8.2
100
October
8.5
8.8
103
November
8.2
7.6
93
December
8.5
9.5
112
When to Advertise
Theoretically
 Brand should advertise more heavily in months when sales have
been higher
 What if category sells well but brand does not?
 Should you advertise when category does best or when brand
does best?
Some considerations can require a change in your media strategy,
but generally advertise when THE CATEGORY DOES BEST

When to Advertise

Planners need to keep in mind the effect of certain seasons in
studying monthly sales records
 Back to School
 Christmas
 Easter

Certain kinds of products (seasons/months) have become
associated with “White Sale” months that sell linens, towels,
tablecloths…If a brand belongs to a category associated with a
season, pay special attention to monthly sales figures
Budget constraints


Often budget not large enough to permit year round sales
Allocate dollars to best selling months:
 Maintain Continuity (continuous advertising all year long
 Flight (periodic advertising followed by hiatus)
 Planners will never have all they money they would like to
have to do the “best plan”…This is one reason planners often
provide 3 options of plans for a client to select from…One that
shows what the ideal plan would be, one that shows minimal
levels of advertising and one that is midway between the two
(generally the one they think the client will go for)
Competitive activity


Important to consider when competitors advertise
If your timing pattern is different from the category
pattern you need to explain or justify why you are
doing this
 Is it an opportunity?
 Do you have a Grand Opening planned?
 Is there a special sale?
 If you can’t compete during the category season, is
there something you can do during another time of
year that will help your client increase their share
of business?
 Furnace company-spring check up at ½ price or
check up in November (when you have more
business than you can handle.)
Specific Goals for the Brand

React aggressively to competitive strategies
 Advertise heavily a month early to begin before the
competition starts in order to increase market share
 Outspend the competition in a particular month…withdraw
money from the year long effort for a concentrated attack
 New Product introduction
 Heavy initial weight
 Lighter weight later on
Product Availability


In certain situations demand outstrips ability to supply product
Example at Christmas the newest Elmo doll always has more
demand than the toy company can supply
In such case, timing of advertising has to be related to production
availability.
Promotional Requirements

If aggressive sales promotion campaign planned proceeding or
during and ad campaign, this will affect timing
 Example-A cents-off deal might require aggressive advertising
when the campaign to announce the promotion kicks off
How


Determining most efficient way to advertise is one way
Basic measurements
 CPM
 CPP
Cost efficiency of media vehicles

Cost efficiency-related to media cost
 How many does it reach?-size
 How much does it cost?-cost
Two Measures
 CPM: print media
 CPP: broadcast media
How/CPM






Cost efficiency of media vehicles based on
audience size and cost******
In order to determine most efficient…part of
how…need to sue the same yardstick to compare
vehicles -COST PER 1,000 prospects
Audience base: Circulation, # homes reached,
readers, # of audience of any kind of
demographic or product usage classification
CPM is the great equalizer of media in terms of
efficiency
CPM enables planners to compare media vehicles
with each other to find most efficient .
Basis of comparison is the CPM
HOW/CPM

Print CPM
Cost of 1 page (BW)
Circulation (# prospects reached)

X 1000
Broadcast CPM
Cost of 1 spot
# prospects in target
X 1000
CPM Formula

CPM ($) = Cost ($)
X 1,000
Gross Impressions*
*Gross Impressions
-Circulation
-# of actual readers
-# of homes
-# of audience members with specific demographic or
product usage classifications
CPM

Strictly talking about efficiency
 Does not take into account qualitative. most efficient might
not be most effective.
 When comparing different medias, planners will generally
weight media by importance (last week covered advantages &
disadvantages of each media) Planner might say, “Radio is
only sound. TV & Cable are sight & sound. My product needs
to be seen and heard in order to be understood, TV will be
rated 50% more important than radio and I will decrease the
CPM of TV accordingly when I compare the two medias.
CPP


Typically applied for TV and Radio
Cost per rating point…Cost to reach 1% of the target population
CPP ($) =
Total Cost ($)
Rating points*
*Rating = % of target tuned in during average minute of a program
Guided practice

Example 1
 Cost of 30-second commercial: $1,100
 # households delivered at 2:00 p.m.: 77,000
 CPM??? ($14.28 to reach 1000 households at 2:00 p.m.)

Example 2
 Cost of 30-second commercial: $1,100
 DMA rating at 2:00 p.m. 8 (%)
 CPP??? ($137.50…It costs 137.50 to reach 1% of the DMA at
2:00 p.m.)
Which one to use?


CPM:
The efficiency of individual vehicles or to compare
various media
CPP: Cost calculation for the entire broadcast plan
or to compare various broadcast medias or
dayparts to each other
Broadcast Dayparts

TV is a Reach media and is still the fastest way to get a message
out. TV consists of several dayparts which loosely are (in this
time zone):
 Early Morning (M-F/5-10 am) Early morning news, Today
Show, Efficient daypart. Audience getting ready for work but
fairly attentive. Element of soft news lends credibility to
advertisers
 Daytime (M-F 10a-3 pm) Day , Game
shows, Judge shows,
Soap Operas, Talk shows…Regis & Kelly, Jerry Springer, Ellen,
Dr. Phil. Low cost to advertise Generally an older less affluent
audience. Good daypart for advertising to alcoholics, those
out of work, retired, students
Broadcast Dayparts



Early Fringe (M-F 3-6:30 pm…or whenever News starts)
Syndicated comedies…Malcolm in the Middle, Friends,
Simpson's, some talk shows..Oprah) Generally low cost and
efficient area. Good area for restaurants, fast foods, pizza
delivery. Reaches Children, Teens, Ad 18-49.
Access (M-F 6:30-7 pm) Game shows, entertainment shows,
syndicated comedies …Entertainment Tonight, Extra, Seinfeld,
King of Hill. More expensive than Early Fringe, but less than
Prime. Great for restaurants, Pizza deliver, food categories,
generally high audience levels.
Early News M-F 4-6 time frame on some stations. High
demand area. Expensive daypart. Good reach area for more
affluent, better educated television viewers. Element of News
lends credibility to advertisers. Local News does better than
National News in any given market. Good area for food
advertisers, car advertisers, political advertisers.
Broadcast Dayparts




Prime Time (M-Sa 7-10PM, Su 6-10PM) Prime. Highest Reach
area. Expensive daypart. CSI, Grey’s Anatomy, Gilmore Girls.
Good area to reach Ad 18-34, Ad, 18-49, Ad 2554, Ad 35+.
Generally not used as a vehicle to reach teens due to
inefficiency against that demographic. Most expensive daypart
(except premium Sports)
Late News (M-Su 10-1030 pm) High demand area. Expansive
daypart. Comparable with Prime time cpp’s in many markets.
Good reach area for affluent, better educated television
viewers. Element of News lends credibility.
Late Fringe (M-Su 1030p-1am) Late night. Tonight Show,
Letterman, Conan O’Brien, Seinfeld, Friends, Talk shows,
comedies. Efficient daypart. Lower reach than most other
dayparts. Good area to reach males.
Overnight (M-Su 1a-5a) Various. Very low reach. Often nocharged to advertisers.