Media Planning and
Decisions
Major Decisions in Advertising
The Traditional Media
Landscape
Satellite radio
stations
2
Broadcast
networks (TV
and cable)
100
TV stations
3,510
Consumer
magazines
5,340
Newspapers
(daily and
weekly)
8,100
Radio stations
13,898
Spending by Media (Billions of
Dollars)
An Overview of Media
Planning



Some basic terms and concepts
The media plan
Problems in media planning
Some Basic Terms and
Concepts




Media planning: the series of decisions involved in
delivering the promotional message to the
prospective purchasers and/or users of the product
or brand.
Media objectives: goals to be attained by the media
strategy and program.
Media strategies: decisions on how the media
objectives can be attained.
Medium: the general category of available delivery
systems, which includes broadcast media, print
media, direct mail, outdoor advertising, and other
support media.
Some Basic Terms and
Concepts




Media vehicle (載體): the specific carrier within a
medium category.
Reach: a measure of the number of different
audience members exposed at least once to a
media vehicle in a given period of time. (actual)
Coverage: the potential audience that might receive
the message through a vehicle. (potential)
Frequency: the number of times the receiver is
exposed to the media vehicle in a specific period.
The Media Plan
Situation
analysis
Marketing
strategy plan
Creative
strategy plan
Setting media objectives
Determining media strategy
Selecting broad media classes
Selecting media within class
Media use decision
— broadcast
Media use decision
— print
Media use decision
— other media
Problems in Media Planning

Insufficient information




The timing of measurement: sweeps periods –
February, May, July, and November.
Inconsistent terminologies
Time pressures
Difficulty measuring effectiveness
2007年度最佳媒體服務公司
1.
2.
3.
4.
5.
貝立德
凱絡
傳立
實力
星傳
Developing the Media Plan




Market analysis
Establishment of media objectives
Media strategy development and
implementation
Evaluation and follow-up
Market Analysis and Target
Market Identification



To whom shall we advertise?
What internal and external factors are
operating?
Where to promote?
To Whom Shall We Advertise?

Secondary information



Government, e.g. age, education.
Market research companies, e.g. SMRB, MRI, 東方線上 –
E-ICP & CMMS.
Index number



 Percentage of users



in
a
demographic
segment
  100
Index  
 Percentage of population 


in
the
same
segment


Figure 10-5
The high index may be a result of a low denominator.
(Figure 10-6)
Example
18~24
25~34
35~44
45~
Population
15.1%
25.1%
20.5%
39.3%
Product
use
18%
25%
21%
36%
Index
119
100
102
91
Internal and External Factors


Internal factors: the size of media budget,
managerial and administrative capability, the
organization of the agency.
External factors: the cost of media, changes
in technology, competitors.
Where to promote?

Buying power index



Based on population, effective buying income and
retail sales.
Brand development index
Category development index
Brand Development Index
(BDI)
Percentage
brandsales
to to
Percentage
ofofbrand
total
U.S.
sales
market
total
sales
in in
market
BDI =
X 100
Percentage
total
U.S.
Percentage
of of
total
population
population
in market
in market
Category Development Index
(CDI)
Percentage of product
category total sales in market
CDI =
Percentage of total
population in market
X 100
Example
北
中
南
東
Population
40%
27%
23%
10%
Brand
30%
30%
35%
5%
Product
20%
50%
15%
15%
BDI
75
111
152
50
CDI
50
185
65
150
Brand and Category Analysis
High CDI
Low BDI
High market share
Good market
potential
Low market share
Good market
potential
Low CDI
High BDI
High market share
Monitor for sales
decline
Low market share
Poor market
potential
Brand and Category Analysis
Low CDI
High CDI
High BDI
Low BDI
The market usually represents
The product category shows
good sales potential for both
high potential but the brand
the product and the brand.
isn’t doing well; the reason
should be determined.
The category isn’t selling well
Both the product category and
but the brand is; may be a
the brand are doing poorly;
good market in which to
not likely to be a good place
advertise but should be
to advertise.
monitored for sales decline.
Media Planning Criteria
Considerations








The media mix
Target market coverage
Geographic coverage
Scheduling
Reach versus frequency
Creative aspects and mood
Flexibility
Budget considerations
Target Audience Coverage
Population excluding target market
Target market
Target
Market
Proportion
Full
Market
Coverage
Media coverage
Media overexposure
Partial
Market
Coverage
Coverage
Exceeding
Market
Three Scheduling Methods




Continuity: a regular pattern of advertising.
Flighting: a less regular schedule with
intermittent periods of advertising and
nonadvertising.
Pulsing: a combination of the above two
methods.
Pros & Cons of the three methods
Three Scheduling Methods
Continuity
Flighting
Pulsing
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Reach versus Frequency

Reach



Awareness
Trial
Frequency


The actual audience for a commercial and a
program
Figure 10-18
Reach and Frequency
Reach of One Program
Reach of Two Programs
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
GRPs




Gross rating points (GRPs) = Reach × Frequency
Target rating points (TRPs)
100 TRPs = 32% × 3.125 = 37.2% × 2.688 = 44.5%
× 2.247
Relationship between GRPs & awareness



2500 → 70%
1000~2500 → 33%
<1000 → 0%
Effects of Reach and
Frequency




One exposure of an ad to a target group within a purchase
cycle has little or no effect in most circumstances.
Since one exposure is usually ineffective, the central goal
of productive media planning should be to enhance
frequency rather than reach.
The evidence suggests strongly that an exposure
frequency of two within a purchase cycle is an effective
level.
Beyond three exposures within a brand purchase cycle or
over a period of four or even eight weeks, increasing
frequency continues to build advertising effectiveness at a
decreasing rate but with no evidence of decline.
Effects of Reach and
Frequency



Although there are general principles with
respect to frequency of exposure and its
relationship to advertising effectiveness,
differential effects by brand are equally
important.
Frequency response principles or
generalizations do not vary by medium.
The data strongly suggest that wearout is not a
function of too much frequency. It is more of a
creative or copy problem.
Graph of Effective Reach
Factors Important in
Determining Frequency Levels

Marketing Factors

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
Brand history
Brand share
Brand loyalty
Purchase cycles
Usage cycle
Competitive share of voice
Target group
Factors Important in
Determining Frequency Levels

Message or Creative Factors
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Message complexity
Message uniqueness
New vs. continuing campaigns
Image versus product sell
Message variation
Wearout
Advertising units
Factors Important in
Determining Frequency Levels

Media Factors
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Clutter
Editorial environment
Attentiveness
Scheduling
Number of media used
Repeat Exposures
Budget Considerations


Absolute cost: the actual total cost required to place
the message.
Relative cost: the relationship between the price
paid for advertising time or space and the size of the
audience delivered.



Cost per thousand (CPM) → magazine
Cost per rating point (CPRP) → broadcast media
Daily inch rate → newspaper
Determining Relative Cost of
Media
Cost per thousand (CPM)
CPM =
Cost of ad space
(absolute cost)
Circulation
X 1,000
Determining Relative Cost of
Media
Cost per rating point (CPRP)
CPRP =
Cost of commercial time
Program rating
Example (Magazine)
商業周刊
哈佛商業評
論
康健雜誌
Per-page
Cost
(封底)
Circulation
460,000
300,000
260,000
144,318
25,000
65,000
CPM
3,187.4
12,000
4,000
Example (Newspaper)
蘋果日報
爽報
Per-page Cost
(中跨全頁)
1,450,000
240,000
Circulation
526,578
172,500
CPM
2,753.6
1,391.3
閱報人口統計

人口分佈統計

閱報率
Limitations of CPM

Overestimate



Underestimate


Readers per copy
Pass-along rate: the number of people who read
the magazine without buying it, e.g. 遠見, 新台灣.
Target CPM, e.g. 商業週刊, 哈佛商業評論.
Quantitative (NOT qualitative)
Television Pros and Cons
Advantages
Disadvantages
Mass coverage
Low selectivity
High reach
Short message life
Impact of sight, sound
and motion
High absolute cost
High prestige
High
High production
production cost
cost
Low cost per exposure
Clutter
Attention getting
Favorable image
Radio Pros and Cons
Advantages
Disadvantages
Local
Local coverage
coverage
Audio only
Low cost
Clutter
High frequency
Low attention getting
Flexible
Fleeting message
Low production cost
Well-segmented audience
Magazine Pros and Cons
Advantages
Segmentation potential
Disadvantages
Long
ad
lead time for
placement
Quality reproduction
Visual only
High information content
Lack of flexibility
Longevity
Multiple readers
Newspaper Pros and Cons
Advantages
Disadvantages
High coverage
Short life
Low cost
Clutter
Short lead time for
placing ads
Low attention getting
Ads can be placed in
interest sections
Poor reproduction quality
Timely (current ads)
Selective reader exposure
Reader controls exposure
Can be used for coupons
Outdoor Pros and Cons
Advantages
Disadvantages
Location specific
Short exposure time
High repetition
Short ads
Easily noticed
Poor image
Local restrictions
Direct Mail Pros and Cons
Advantages
Disadvantages
High selectivity
High cost per contact
Reader controls exposure
Poor image (junk mail)
High information content
Clutter
Repeat exposure
opportunities
Internet Pros and Cons
Advantages
Disadvantages
User selects product
information
Limited creative
capabilities
User attention and
involvement
Websnarl (crowded
Websnarl (crowded access)
access)
Interactive relationship
Technology limitations
Direct selling potential
Few valid measurement
techniques
Flexible message platform
Limited reach