10
Media Planning and Strategy
McGraw-Hill/Irwin
Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed
Media Terminology
Media
Planning
A series of decisions involving the delivery
of messages to audiences
Media
Objectives
WHAT are the goals to be attained by the
media strategy and program
Media
Strategy
Decisions on HOW the media objectives
can be attained
10-2
Media Terminology - continued
Medium
General categories of delivery systems,
such as TV, print, internet, radio
Media
Vehicle
The specific program within a medium
category such as “GQ” or “Glee”
Reach
Number of different audience members
exposed at least once in a time period
Frequency
Number of times the receiver is exposed to
the media vehicle in a time period
10-3
Test Your Knowledge
For EACH of the items listed below, determine which
is a medium and which is a media vehicle:
a) newspapers
b) television
c) American Idol
d) Cosmopolitan
e) magazines
f) internet
g) New York Times
h) outdoor advertising
i) Facebook
10-4
Media Plan
• Guides media selection
• Aims to find a combination of media to
communicate a message:
• In the most effective manner
• To the largest number of potential customers
• At the lowest cost
The Media Plan
Situation
analysis
Marketing
Plan
Creative
strategy plan
Setting media objectives
Determining media strategy
Selecting broad media classes
Selecting vehicles within class
Media use decision
— broadcast
Media use decision
— print
Media use decision
— other media
10-6
Media Planning Difficulties
Measurement
Problems
Lack of
Information
Idol vs. Dance
Sweeps Period
sets ad rates
Problems
in Media
Planning
CPM – Print
CPRP - TV
Actions
by competitor
Time
Pressure
Inconsistent
Terminology
10-7
Developing a Media Plan
Analyze the market
Establish media objectives
Develop/implement media strategy
Evaluate performance
10-8
Using Index Numbers
To determine to WHOM we should advertise
Index Number
Index =
Percentage of users
in a demographic segment
Percentage of population
in the same segment
X 100
The HIGHER the index, the more potential that target has
10-9
Application of Index
Refer to Page 345 – Figure 10-5 in Textbook for Full Chart
Snowboarding Last 12 months
TARGET
Age 35-44
Age 65+
INDEX
136
39
Occupation: Professional
143
Occupation: Management
133
HHI $75,000 - $149,999
132
HHI <$20,000
43
Region: West
159
Region: South
66
10-10
WHERE should we promote
To determine WHERE we should promote
geographically:
We look at TWO indices:
a) CDI (Category Development Index)
and
b) BDI (Brand Development Index)
10-11
Using the Category Development Index
Category Development Index
Percentage of total product
category sales in market
CDI =
X 100
Percentage of total U.S.
population in market
• Indicates how well the category is selling in that geographic area
• The higher the index, the better the potential in that market
10-12
Map of United States: Four Regions
10-13
Percent Population By Region
West
Population: 20%
Midwest
Population: 30%
Northeast
Population: 30%
South
Population: 20%
Total Population USA = 100%
10-14
Percent all Sunscreen Sold By Region
West
Sunscreen: 5%
Midwest
Sunscreen: 40%
Northeast
Sunscreen: 10%
South
Sunscreen: 45%
Total Sunscreen Sold= 100%
10-15
CDI for Sunscreen Category By Region
Midwest
40/30 x 100 =
133
Northeast
10/30 x 100 =
West
5/20 x 100 =
33
25
South
45/20 x 100 =
225
10-16
Using the Brand Development Index
Brand Development Index
BDI =
Percentage of brand to total
U.S. sales in market
Percentage of total U.S.
population in market
X 100
• Indicates how well the brand is selling in that geographic area
• The higher the index, the better the potential in that market
10-17
Percent Coppertone By Region
West
Coppertone: 25%
Midwest
Coppertone: 50%
Northeast
Coppertone: 10%
South
Coppertone: 15%
Total Coppertone Sold= 100%
10-18
BDI for Coppertone Brand By Region
Midwest
50/30 x 100 =
166
Northeast
10/30 x 100 =
West
25/20 x 100 =
33
125
South
15/20 x 100 =
75
10-19
CDI and BDI By Region
Midwest
High CDI
High BDI
Northeast
Low CDI
Low BDI
West
Low CDI
High BDI
South
High CDI
Low BDI
10-20
Test Your Knowledge
In calculating both the brand development index
(BDI) and the category development index (CDI), a
media planner obtains the following results: Low BDI
and High CDI. What do these results imply?
A) High market share; good market potential
B) Low market share; good market potential
C) High market share; monitor for sales decline
D) Low market share; poor market potential
10-21
Using BDI and CDI
10-22
Media Objectives
• Goals for the media program
• Some examples:
• Reach 60% of the target audience at least three times over
a 6 month period
• Create a positive brand image through mood and creativity
10-23
Developing Media Strategies
• Criteria to consider during plan development
•
•
•
•
•
•
•
•
The media mix
Target market coverage
Geographic coverage
Scheduling
Reach and frequency
Creative aspects and mood
Flexibility
Budget
10-24
The Media Mix
• Selection considerations
• Objectives sought
• Product characteristics
• Budget
• Examples:
• Visual demonstration --- use TV
• Coupon delivery --- use magazines or newspapers
10-25
Reaching Target Markets
Refer to Page 353 – Figure 10-14 in Textbook for Full Chart
Media Usage of Snowboarders
TITLE
Information
Websites: MTV.com
to match
Websites: IMDb.com
media to
target markets Websites: Hulu.com
INDEX
279
266
251
Websites: iTunes.com
206
TV Show Types: Soccer
204
Websites: Pandora.com
202
Websites: disney.com
188
Websites: Gmail.com
187
TV Show Types: Sunday News
Websites: Farmville.com
The higher the index, the more the potential
69
5
10-26
Geographic Coverage
• Spend more
media money in
areas with greater
potential
• Promote skis in
areas that have
snow!
10-27
Scheduling
• Timing promotional efforts such that
they coincide with the highest
potential buying times
• Methods
• Continuity: Regular pattern of
advertising without gaps or nonadvertising periods
• Flighting: Involves intermittent periods
of advertising and non-advertising
• Pulsing: Maintains continuity, but
promotional efforts are stepped up at
times
Scheduling Methods
Continuity
toilet paper
detergent
Flighting
snow skis
Pulsing
Jan
Feb Mar
Apr May Jun
beer
Jul
Aug Sep Oct Nov Dec
10-29
Duplicated / Unduplicated Reach
A. Reach of One Program
B. Reach of Two Programs
Total market
audience reached
Total market
audience reached
C. Duplicated Reach
D. Unduplicated Reach
Total market reached
with both shows
Total reach less
duplicated shows
10-30
Reach versus Frequency
• Budget constraints
• Need to trade off reach vs. frequency
• message to be seen by more people
• message to be seen by fewer people, but
more often
• Achieving awareness for new brands
requires a lot of reach
• Optimal frequency anywhere between
3 – 10 exposures
10-31
Rating Points
• Program rating
• % of US households watching the show
• Gross ratings points (GRPs)
• GRP = Reach X Frequency
• Need at least 2500 GRPs to be effective
10-32
Building a Media Plan
Vehicle
Reach Frequency GRPs
Cumulative
GRPs
American
Idol
40
8
320
320
Cosmopolitan
60
2
120
440
Glee
50
10
500
940
USA Today
25
40
1000
1940
CSI
70
8
560
2500
Keep adding vehicles, till effective GRP level reached
10-33
Marketing Factors Determining Frequency
Marketing
Factors
higher = less
daily=more
Brand
Loyalty
Brand
Share
Usage
Cycle
high=less
Brand
History
new = more
Competition
more=more
Purchase
Cycles
shorter=more
10-34
Message Factors Determining Frequency
Message
or Creative
Factors
Message Complexity
simple=less
Message Uniqueness
more=less
New vs. Continuing Campaigns
new=more
Image Versus Product Sell
Message Variation
image=more
single=less
Wear out if high frequency
Advertising Units
large=less
10-35
Media Factors Determining Frequency
Media Factors
•Clutter
•Editorial environment
•Attentiveness
•Scheduling
•Number of media used
•Repeat exposures
Creative Aspects and Mood
• Use the correct medium to support
your strategy
• Lancôme – print
• Hallmark – TV
• Certain media create the correct mood
for your brand
• Skiing magazine for snow skis
• Gourmet magazine for wines
10-37
Flexibility in Media Planning Strategies
Red wine beneficial
Competition
Market
opportunities
Market threats
Flexibility
Changes in
media or media
vehicle
Drop in ratings
Availability of
media
All media space sold
10-38
Budget Considerations
• Absolute Cost
• One page ad in full color in Newsweek
magazine costs $165,000
• Relative Cost
• Relationship between price paid and size
of audience (circulation)
• Used to determine which vehicle is the
more cost effective option
• Measured via CPM (cost per thousand)
10-39
Determining Relative Cost of Print Media
Cost per thousand (CPM)
Cost of ad space
(absolute cost)
CPM =
X 1,000
Circulation
CPM may underestimate circulation due to Pass Along Rate
(# of people who read magazine without buying it)
10-40
Example of CPM calculation
Time
The Week
Cost Per Page
$366,380
$72,800
Circulation
4.07 million
535,000
Calculation of
CPM
366,380 x 1,000 72,800 x 1,000
CPM
4,070,000
535,000
$91.44*
$136.08
The lower the CPM, the more cost efficient the media buy
*TIME is the most cost efficient
10-41
Television Pros and Cons
Advantages
Mass coverage
High reach
Disadvantages
Sight, sound, motion
High prestige
Low selectivity
Short message life
Low cost per exposure
High absolute cost
Attention getting
High production cost
Favorable image
Clutter
10-42
Radio Pros and Cons
Advantages
Local coverage
Low cost
High frequency
Flexible
Disadvantages
Audio only
Clutter
Low production cost
Low attention getting
Well-segmented audience
Fleeting message
10-43
Magazine Pros and Cons
Advantages
Segmentation potential
Quality reproduction
Disadvantages
High information content
Long lead time for
ad placement
Longevity
Visual only
Multiple readers
Lack of flexibility
10-44
Newspaper Pros and Cons
Advantages
High coverage
Low cost
Short lead time for
placing ads
Local markets
Disadvantages
Short life
Clutter
Timely (current ads)
Reader controls exposure
Can be used for coupons
Low attention getting
Poor reproduction quality
Selective reader exposure
10-45
Outdoor Pros and Cons
Disadvantages
Short exposure time
Short ads
Advantages
Location specific
Poor image
Local restrictions
High repetition
Easily noticed
10-46
Direct Mail Pros and Cons
Advantages
High selectivity
Reader controls exposure
Disadvantages
High information content
High cost per contact
Repeat exposure
opportunities
Poor image (junk mail)
Clutter
10-47
Internet Pros and Cons
Advantages
Disadvantages
User selects product
information
Lack of controls
User attention and
involvement
Clutter
Interactive relationship
Questionable
measurement techniques
Direct selling potential
Limited reach
Flexible message platform
10-48
Test Your Knowledge
In terms of media vehicles, ______ would be most
efficient medium if you wanted local coverage at a low
cost.
A) television
B) interactive media
C) direct mail
D) magazines
E) newspapers
10-49
Evaluation and Follow-Up
How well did these strategies achieve
the media objectives?
How well did the media plan contribute
to attaining the overall marketing and
communications objectives?
Use again, or analyze flaws
10-50