How do media work? Chapter 9 Media Planning & Buying in the 21st Century Leading Theories 1. 2. 3. 4. 5. 6. ARF Response Model Effective Reach Recency Share of Voice/Share of Market Purchase Funnel Engagement Media Planning & Buying in the 21st Century “If you don’t know where you are going, any road will get you there” -- Cheshire Cat Media Planning & Buying in the 21st Century 1. ARF Response Model • Progression of media effects (1961) • Media should only be compared on the same level of the model. • Revised in the 2000s to reflect the introduction of digital and new media. Media Planning & Buying in the 21st Century Vehicle Distribution Vehicle Exposure Vehicle Access Opportunity to see Advertising Exposure Eyes-on / Ears-on Advertising Attentiveness Ad Attentiveness Advertising Communication Advertising Persuasion Advertising Response Ad Processing Impact ARF Response Model 2002 & 2010 Advertising Response > Brand Access Sales Response Sales Response > Loyalty Response / LTV Media Planning & Buying in the 21st Century 2. Effective Reach • A target audience must be reached often enough to elicit a response, but not too often. • ANA guidelines: 3-10 times (advertising exposure, not vehicle exposure). Media Planning & Buying in the 21st Century Rationale for Effective Reach: memory decay; need for reinforcement Media Planning & Buying in the 21st Century Zielskie’s Research 60 13 exposures at fourweek intervals PERCENT RECALL 50 40 30 1 exposure per week for 13 weeks 20 10 0 0 4 8 12 16 20 24 28 32 36 WEEK OF THE YEAR Media Planning & Buying in the 21st Century 40 44 48 52 Adstock • Also known as “carryover” effect • Suggests that there is long term building of awareness and other measures of advertising effects • Each successive exposure builds incremental awareness Media Planning & Buying in the 21st Century A Plan Based on Effective Reach Actual vs. Hypothetical Schedule Theoretically Optimal TV Schedule 20 ACTUAL SCHEDULE 15 % Reach HYPOTHETICAL SCHEDULE 10 EFFECTIVE EXPOSURE 5 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 NUMBER OF EXPOSURES Media Planning & Buying in the 21st Century Luxury Car Effective Reach Plot Source: http://audiencewatch.nielsen.com/data/help/glossary/reacheff/index.htm Media Planning & Buying in the 21st Century 3. Recency • Challenges the foundations of Effective Reach • Belief that advertisements and promotions are most effective when they air immediately prior to the time of decision, – influence of ad exposure diminishes with time. • Examples: – Fast food – Movies Media Planning & Buying in the 21st Century 4. Share of Voice Share of Voice (SOV) Share of Mind Media Planning & Buying in the 21st Century Share of Market 5. Purchase Funnel Media Planning & Buying in the 21st Century 6. Engagement • Engagement measures the extent to which a consumer has a meaningful brand experience when exposed to commercial advertising or sponsorships. Media Planning & Buying in the 21st Century Media Planning & Buying in the 21st Century For next time Read Chapter 10: Target Audience