Media Planning Lecture
“The Eyeball Business”
• A different kind of consumption
• Time and Attention
• Media Receive Payment from…
• Advertisers
• Consumers
• Both
“The Eyeball Business”
• Advertiser Paid Media [100% Ad Revenues]
– Television
– Radio
– Out-of-Home
– Direct Marketing
• Advertiser + Consumer Paid Media [Ad Revenues + Subscriptions]
– Newspapers
– Magazines
– Cable TV
“The Eyeball Business”
• Consumer Paid Media [Tickets/Subscriptions]
– Some Cable (HBO, etc.)
– Movies
– CDs & Concerts
– Magazines
– Public Radio/TV
• “Sponsorships”
– Event Marketing
– +Product Placement in Movies/TV
Media Planning
•“the process that directs the advertising message to the right people at the right time for
the price”
•involves decisions such as:
–which media to use
–time of year to run advertising
–continuous or intermittent
–how much is enough? too much?
–geographic coverage
Media Speak
•
Media/Medium/Vehicle
–
–
Media = collective noun
Medium = one type of media
– Vehicle = single carrier
–
Information about each medium SRDS
•Standard Rate and Data Service
•Publications for each Medium
•Books are
–SRDS TV and Cable Advertising Source
–SRDS Radio Advertising Source
–SRDS Consumer Magazine Advertising Source
–SRDS Business Publication Advertising Source
–SRDS Out of Home Advertising Source
–SRDS Direct Response Advertising Source
–SDRS Newspaper Advertising Source
•Facts about the medium but NOT ratings or Audience Information
Extensive Media Choices
•Daily Newspapers----1575
•Weekly Newspapers-8631
•Magizines---11,000
•Television Stations-- 1407 (992 Commercial)
•US Homes receiving Cable 78%
•AM Radio ----------------- 4615
•FM Radio------------------- 5719 (4480 Commer)
•Broadcast Networks--•ABC CBS NBC FOX WB (PBS)
•Cable Networks ESPN, MTV, CNN, MSNBC
•Local Cable Stations, Channel 8
More Media
•Magazines
•Outdoor/Out of Home
•Direct Mail/Direct Response
•College Newspaper
New and Supplemental Media
•Computer Services
•Point of Purchase Promotion
•Movie Theater
•Movie Placement
•Scoreboards
•Banners
•Receptacles
•Zamboni Machines
http://www.advertising.com
http://www.adage.com/
Advertising Expenditure
7%
1%
9%
12%
Newsp
aper
TV
10%
13%
Mag
48%
Radio
Media Habits
•Americans are “media-holics”
•In a week the average American Adult spends:
–29 hours watching TV
–21 hours listening to radio
–5 hours reading the paper
–3 hours using the Internet (Nielsen Media Research)
–1 1/2 hours reading magazines
Media Speak
• Above-the-Line/Below-the-Line
–Above = paid advertising
–Below = sales promotion, PR, events
• Traditional/Non-Traditional
•Traditional = major mass media
–Non-Traditional = unique media opportunities and new media forms
Problems and Opportunities in Media Buying
•increasing “clutter”
•increasing number of media outlets
•increasing costs
•audience is fragmenting
•increasing complexity and importance of the media planning task
•Four Factors Changing Media
– Media Technology
• Digital Explosion
• Delivery Systems - Internet, video stores, etc.
•Media Competition
•From monopoly to hyper-competition
• Mature Market - huge need for “hits”
• Media Audiences
• Fragmenting, but more valuable
• Media Expenditures
• Going across platforms (i.e. ESPN)
Media Speak
•Clutter & Fragmentation
–Clutter - a result of
• More media channels
• More messages in each channel
– Fragmentation - a result of
• More media channels
• More audiences. Smaller audiences.
Building The Media Plan:
• The Media Plan is…
– a blueprint for future action… organizing a brand’s advertising into media
objectives and strategies that are:
• Goal-Oriented - increase sales/share
• Make sense - effective/efficient
• Manageable - can be executed, flexible, developed before the buy.
Building The Media Plan:
• Media Objectives
– WHAT your Media Plan hopes
to achieve
– HOW the Media Objective will
be implemented
• Media Strategies
Possible Goals or Objectives
•Maintain share in a mature category
•Increase share versus the competition
•Build volume by increasing usage frequency
•Launch new/improved product
Internet Marketing
http://www.crestco.net/adv.htm
Maintain Share
Increase Share
Increase usage
Launch New Product
Possible Strategies
•Share Maintenance--Direct Adv towards current users
•Share Growth--Direct ADV towards competitive Brand users
•Increase Usage Frequency--Current Users
•New Production--Direct ADV towards profile of users of similar products/category
Building The Media Plan:
• Planning Media Objectives
•Target Audience
• Seasonality
• Geography
• Reach & Frequency
Media Objectives
1. Characteristics of the target audience
–Consumer or Trade
–users Vs nonusers
–demographic characteristics
–psychographics
–behaviors
Media Speak
• Audience/Coverage/Composition
–Audience
• number or % exposed to a vehicle
–Audience Coverage
• number or % reached by a single insertion in a specified area
–Audience Composition
•statistical breakdown of a media vehicle’s total audience
Media Speak
• Reach & Ratings
– Broadcast Media use Rating Points
• % of Target Audience reached by a media vehicle
– Print Media use Circulation
• Number of copies sold or distributed
2. Reach and Frequency
Reach: the total number of different people (or households) exposed to the advertising
schedule during a specified time
Frequency: the number of times the same person (or household) is exposed to an
advertising during a specified time
Reach
–“the number of different people (or households) exposed to the advertising message
during a specified time”
–can be expressed as either a percentage or as a raw number
–example:
population of 200, 50 of whom are
exposed to our message—
what is the reach
in # of people?
50 people
as a percentage? 25 % (50/200)
Frequency
• “the number of times the same person (or household) is exposed to the advertising
message during a specified time”
•tells
you the number of times your target prospects are exposed to your message.
Example: Average Frequency
Average Frequency
= 14 / 7 = 2
3. Rating & Rating Points
•A medium's rating is its audience size expressed as a percent of the measured universe.
•One rating point equals one percent of the base. Sometimes ratings are called percent
coverage.
•If you use a medium just once, its rating and its reach are the same thing.
•But when you use multiple media vehicles in a schedule, there are opportunities for
audience duplication. Then, the total ratings for the schedule are called gross rating
points.
4. Gross Rating Points (GRPs)
Gross Rating Points
–“the sum of the ratings delivered by a given list of media vehicles on the advertising
schedule”
–Percent
of people exposed X Average # of exposures (reach as expressed by % )
(frequency)
–example:
Ad reaches 40% of target audience. We execute 4 ads. What’s the GRP?
GRP = 40 X 4 = 160
5. Gross Impressions
•sum of exposures to all the media placement in a media plan
–Number of people exposed X Average # of exposures
reach X frequency)
Reach, Frequency, GRP & GI
Reach/Frequency Inverse Relationship
6. Cost Efficiency: CPM
•Cost Per Thousand (CPM)
–Conveniently shows the relative cost of one medium to another, or one media schedule
to another.
–Most common yardstick in media buying
CPM Calculation
CPM
Cost Per Thousand = Cost Per Person X 1000
Cost ($) X1000 = CPM
# of Audience
Example:
Audience, Women 18+ = 10,000
Cost for one full page ad $ = 1,255
•CPM = (1255/10,000)1,000=
$1,255,000/10000
= $125.50
CPM Calculation
CPM
Cost Per Thousand = Cost Per Person X 1000
$ 1255 Cost for one page ad X1000
10,000 # of Audience
Example:
Audience, Women 18+ = 10,000
Cost for one full page ad $ = 1,255
Building The Media Plan:
• Planning Media Strategies
•Media Efficiencies - CPM
•CPM = Cost Per Thousand, the
universal form of comparing the efficiency
of different media.
•The following is a comparison of cost-efficiency for reaching Women 18-49
Building The Media Plan:
•
CPM - Women 18-49
Network Radio
:30
2.81
Day Network
:30
5.35
Cable TV
:30
Print
4-color page
7.67
AM Network
:30
11.14
Late Night
:30
12.22
Syndication
:30
13.29
Evening News
:30
17.80
6.05
Prime Network
:30
18.31
Advantages/Disadvantages of using CPM?
7. Mixed Media Approach
•Reach Audience Efficiently
 To reach people not reached with the first medium.
•Control Frequency, Increase exposure
 To provide additional repeat exposures in a less expensive
secondary medium after optimum reach is obtained in the first medium.
•Integrate Media
–Produce Synergy (e.g., Deliver Sales Promotions: coupons in print media + advertising
in TV)
•Reduce Expenses
8. Seasonal Use (Seasonality)
•Barbecue Sauce…
•Turkeys….
Summer
Thanksgiving
•Cold and Flu Medicine….
Winter
9. Geographic Use
•Nationally
•Regionally
•Local
•Market Development Indices (CDI, BDI)
Category Development and Brand Development Index
CDI
•The market size of our product category compared to the total market
% category sales in market
% us population
BDI
•The size of our brand’s market compared to the total market
% brand sales in market
% us population
CDI
• The market size of our product category compared to the total market
% category sales in market
% us population
BDI
• The size of our brand’s market compared to the total market
% brand sales in market
% us population
Market Insights from BDI and CDI
Low BDI
High CDI
Low market share
Good market potential
Good market potential
Low CDI
High BDI
High market share and
Low market share
And poor market potential
But
High market share
But monitor for sales
decline
10. Scheduling Media
Continuity: uninterrupted run of advertising
Flighting: intermittent pattern--periods of advertising with periods of no advertising
Pulsing: intermittent pattern--some advertising at all times, but periods of heavier or
lighter scheduling
Building The Media Plan:
• Planning Media Strategies
•Scheduling Strategies
•Four Types of Ad Schedules:
Building The Media Plan:
• The Media Buy (Implementation)
– Buying - a separate function
• Involves tough-minded negotiating
• Involves long-term relationships
– Media Buying Services
• Growing field - specialists
• Part of “unbundling”
Building The Media Plan:
•Post-Buy Analysis
– Measure actual performance
• Media makes “guarantees”
• Involves large amounts of $
– If below guarantee, media must provide a “make-good.”
– And, if you do a good job…
The END