Topic: Media Objectives Basic Components (see Media Workbook #26) 1. Reach, Frequency (and GRPs & GIs) & effective reach/frequency, if desired 2. Continuity (advertising timing pattern) 3. Specification of Targets (primary, secondary) 4. Special Geographic Emphasis (national vs. spot or national with regional/spot-heavy up) Also basic are: Restrictions/Implications from Budget, Creative Strategy, Sales promotion Topic: Media Objectives 1. Reach, Frequency, ER, EF (and GRPs, GIs) a. Specify reach and frequency, (and GRP) goals desired for each month or each flight or each quarter or overall campaign period on average e.g., January: R = 80%, F = 5 Quarter 1: R = 80% F = 7 Overall campaign R = 70%+, F = 6 Topic: Media Objectives 1. Reach, Frequency (and GRPs) b. Example of Reach and Frequency Goals 1. Achieve a minimum reach level of 80 with adults women aged 35-54 during the two introductory months 2. Maintain at least 50% reach in each advertising period and maximize when sales promotion runs (in February and October) 3. Maximize reach and frequency during sales peaks (September – November) Topic: Media Objectives Basic Components C. Definitions Reach and Frequency % of different targets or households exposed to a vehicle or schedule at least once over a specified (typically 4-week in broadcast) period = Reach average # of times the reached households or target are exposed to a schedule over a specified (typically 4-week in broadcast) period = Average Frequency Topic: Media Objectives Basic Components GRPs and GIs Both indicate gross delivery of (ad or vehicle) exposures Gross Impressions (Gis) are expressed as an absolute number e.g., 240 million GIs Gross Rating Points (GRPs) are expressed as a percent (of total population or) target population e.g., 2400 GRPs Topic: Media Objectives Basic Components C. Definitions Effective Reach and Frequency The number or a range of exposures required to produce a desired impact (e.g., sales, brand awareness, brand liking,..) -- 3+, 4+, 3-10, = Effective Frequency Number or % or targets exposed the required number of times = Effective Reach Topic: Media Objectives Basic Components Relationship among Reach, Frequency,GRPs,& GIs GIs: Reach (as number) X Average Frequency GRPs: Reach (as percent) X Average Frequency With reach and frequency goals set, you’d know how many GRPs should be bought. Topic: Media Objectives Basic Components Reach X Frequency = GRPs Example Period Q1 Reach 80 Frequency 6 GRPs 1440 = 80 X 6 X 3 Q2 60 7 1260 = 60 X 7 X 3 Q3 80 5 1200 = 80 X 5 X 3 Q4 50 8 1200 = 50 X 8 X 3 Topic: Media Objectives Basic Components 1. Reach, Frequency (and GRPs) d. How to Set Reach and Frequency Goals -- The desired levels will depend on various situational factors Reach Decided according to the awareness level (goal) set -- e.g., 2400 GRPs/80% reach 70% awareness? Set equal to or higher than the main competition Topic: Media Objectives Basic Components 1. Reach, Frequency (and GRPs) d. How to Set Reach and Frequency Goals -- The desired levels will depend on various situational factors Reach Emphasized When anything new is introduced - new distribution, new product features, new ad copy, new sale promo, new packaging, new marketing/advertising objectives Topic: Media Objectives Basic Components 1. Reach, Frequency (and GRPs) d. How to Set Reach and Frequency Goals -- The desired levels will depend on various situational factors Frequency Emphasized When the competition is intense The question is: how much frequency is necessary Topic 3-1A: Media Objectives B. Basic Components 1. Reach, Frequency (and GRPs) d. How to Set Reach and Frequency Goals Other Marketing Factors to Consider: Product Life Cycle, Breadth of Target, Purchasing Cycle, Budget Topic: Media Objectives Basic Components d. How to set reach & Frequency Goals Product Life Cycle (PLC) For products in the introductory stage of Reach tends to be product life cycle, __________ more important. e.g. Toyota Matrix, For established products in later life cycle stages such as maturity stage Frequency __________ tends to be more important. e.g. Tide, Pillsbury Cookie Dough, Coca Cola Topic: Media Objectives d. How to set reach & Frequency Goals Breadth of Target Market If target is broadly defined demographically or geographically, _________ Reach would be more important. target is narrowly defined, Frequency __________ would be more important. If Topic: Media Objectives d. How to set reach & Frequency Goals Purchasing Cycle (PC) For products with short PC (e.g., ), Frequency _________ may be more important; For products Reach with long PC (e.g., ), _________ may be more important. Topic: Media Objectives D. How to set reach & Frequency Goals R/F objectives must also give adequate consideration to: budget, promotional needs, stage of the campaign Topic 3-1A: Media Objectives 1. Reach, Frequency (and GRPs) e. How to Set Effective Reach/Frequency Goals Joseph Ostrow’s Model (pp. 249-252): Marketing Factors, Copy Factors, Media Factors May discard some of Ostrow’s categories and add your own categories (see GS #21) Topic: Media Objectives 2. Continuity a. Three Basic Continuity Strategies: Continuous: advertising effort remains relatively constant throughout Flighting: advertising effort varies over the campaign period, with some periods of time receiving no advertising ("HIATUS") Pulsing: advertising effort is notably varied with some advertising during every period Topic: Media Objectives 1. Continuity b. How to determine continuity strategy Factors to consider Seasonality of Sales Purchase Cycle Product Life Cycle Budget Others – Competition, Ad Goals, Topic: Media Objectives 2. Continuity When Is Each Continuity Strategy Useful? Continuous: Short PC, Mature PLC, Reminder Campaign Goals, Lack of Brand Loyalty , Media Discounts, Better Vehicle Choices & Ad Positions, Intense Competition, Flighting: Seasonal Products or with Limited Budget, Long PC, Ability to Build Frequency/Familiarity for a Short Time, Introductory PLC Pulsing: Best, safest approach for products sold year round, those with distinctive seasonality of sales, Intense Competition, Topic: Media Objectives 1. Continuity Other Consideration in Ad Scheduling When sales are greatest or lowest When competitors advertise Topic: Media Objectives 3. Putting the R/F components Together Budget Recap Table Topic : Media Objectives D. Budget Re-Cap (Example) Media Goals Time Period GRPs Budget ($10M) Reach Frequency No. % /period /month 1. Jan/Feb High(80%) Med(5) 800 19 $1.9M $0.95M 2. Mar/April Med(60%) Med(7) 840 20 2.0 1.0 0 0 0 0 3. May 4. June/July/Aug Med(50%) Low(3) 450 11 1.1 0.37 5. Sept/Oct/Nov High(80%) High(9) 2160 50 5.0 1.67 0 0 0 0 4250 100 $10.0M 6. Dec. 55/67 5/6 Topic: Media Objectives B. Basic Components Example: Time Period Media Goals 1. Jan / Feb Reach Frequency 80% (Hi) 5 (Med) 2. Mar / Apr 60% (Med) 7 (Med) 3. May -- -- 4. Jun / Jul / Aug 50% (Med) 3 (Lo) 450 50 X 3 X 3 mo. 5. Sep / Oct / Nov 80% (Hi) 9 (Hi) 2160 80 X 9 X 3 mo. 6. Dec -- -- Campaign Ave.= GRPs Cal.(R X F X Months.) 800 80 X 5 X 2 mo. 840 0 0 Total GRPs= 60 X 7 X 2 mo. -- -- Topic: Media Objectives B. Basic Components 3. Putting the Basic Components Together Do your decisions above reflect your planned objectives? What could be some of the reasons for the low reach/frequency goals in Period 4? How about “hiatus’ in May and December? How do you calculate campaign average? Topic 3-1A: Media Objectives Guidelines in Setting Goals -- Fundamental tradeoffs •Maximizing reach, frequency, and continuity is an unattainable goal. Because of budget constraints 1. How can tradeoffs be made between reach & frequency? 2. How can tradeoffs be made in determining continuity strategy Topic 3-1B: Media Objectives More Terms and Calculations: Frequency Distribution Effective Reach, Effective Frequency GRPs, GIs Relationship among Reach, Frequency,GRPs, and GIs Topic 3-1B: Analytical Terms & Decision Criteria Reach, Average Frequency, Freq.Distribution Frequency (or Exposure) Distribution 0 exposures 1 exposures 2 exposures 3 exposures ------------- total population 10 20 15 5 # persons or households reached? 50 % reached? 20 + 15 + 5 = 40 40 X 100 = 80 50 Topic 3-1B: Analytical Terms & Decision Criteria Reach, Average Frequency, Freq.Distribution Average Frequency 0 exposures 1 exposures 2 exposures 3 exposures ------------- total population 10 20 15 5 50 Average Frequency?= # of total exposures that occurred # reached (20X1)+ (15X2)+(5X3) = 40 20+30+15 65 = = 1.62 40 40 Topic 3-1B: Analytical Terms & Decision Criteria Reach, Average Frequency, Freq.Distribution How are reach and frequency used in media planning and buying? used in setting media objectives (e.g., 75% reach and 3 frequency in January) & in evaluating value of a schedule (Does this media schedule deliver the set reach and frequency goal within the budget?) Topic 3-1B: Analytical Terms & Decision Criteria Relationship among Reach, Frequency,GRPs,& GIs With a given level of GRPs, R/F are inversely related Example 1: If you buy 120 GRPs, and avg. frequency of exposures among target should be 6 in June, what will be your campaign’s reach in that month? GRPs = 120 AF = 6 R 20 = Example 2: Given the budget for a GRPs of 120, if you have to reach at least 40% of target, what frequency can you expect the schedule to deliver? GRPs = 120 R = 40 AF = 3 Topic 3-1B: Analytical Terms & Decision Criteria GIs and GRPs GIs = (GRP/100)X Pop. GRPs for a media schedule = sum of all ratings delivered in the schedule Example: Assuming the population base of 93.1 million TV homes, what GRPs and GIs will this schedule deliver? 40 + 60 + 50 + 50 = 200 GRPs; 37m+56m+47m+47m = 187m GIs Prog. Rating # Spots GRPs GIs A 20 2 20X2=40 0.4X93.1M=37.24M B 15 4 15X4=60 0.6X93.1M=55.86M C 25 2 25X2=50 0.5X93.1M=46.55M D 10 5 10X5=50 0.5X93.1M=46.55M Topic 3-1B: Analytical Terms & Decision Criteria Relationship among Reach, Frequency,GRPs,& GIs What happens if you raise GRP level? As GRPs are added, reach will builds at a decreasing rate while frequency will build at an increasing rate. Topic 3-1B: Analytical Terms & Decision Criteria Relationship among Reach, Frequency,GRPs,& GIs GRPs or GIs include duplication of audience: GIs: Reach (#) + Duplication (#) GRPs: Reach (%) + Duplication (%) Topic 3-1B: Analytical Terms & Decision Criteria Relationship among Reach, Frequency,GRPs,& GIs Audience duplication info is necessary to estimate reach Reach: GIs - Duplication (all in #) Reach: GRPs - Duplication (all in %) Topic 3-1B: Analytical Terms & Decision Criteria Effective Reach & Frequency Presentation Effective Frequency: Effective Reach: