CHAPTER 11
Advertising Media:
Planning and Analysis
© 2010 South-Western, a part of Cengage Learning
All rights reserved.
PowerPoint Presentation by Charlie Cook
The University of West Alabama
Eighth Edition
Chapter Objectives
After reading this chapter you should be able to:
1. Describe the major factors used in segmenting target
audiences for media planning purposes.
2. Explain the meaning of reach, frequency, gross rating
points, target rating points, effective reach, and other
media concepts.
3. Discuss the logic of the three-exposure hypothesis
and its role in media and vehicle selection.
4. Describe the use of the efficiency index procedure for
media selection.
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
11–2
Chapter Objectives (cont’d)
After reading this chapter you should be able to:
5. Distinguish the differences among three forms of
advertising allocation: continuous, pulsed, and flighted
schedules.
6. Explain the principle of recency and its implications
for allocating advertising expenditures over time.
7. Perform cost-per-thousand calculations.
8. Review actual media plans.
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
11–3
Media versus Vehicles
• Media
 General communication methods that carry
advertising messages
 Examples: television, newspapers, and Internet
• Vehicles
 The specific broadcast programs or print choices in
which advertisements are placed
 Example: the American Idol program
• Each medium and vehicle has a unique set of
characteristics and virtues
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11–4
Messages and Media:
A Hand-In-Glove Reaction
• Advertising message and media considerations
are inextricably related—creatives and media
specialists must team up to design ads
• Choice of media and vehicles requires a variety
of decisions
 General media categories
 Specific vehicles
 Marcom budget allocations
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11–5
Selecting and Buying Media and Vehicles
• Choices:
 Traditional full-service ad agencies separately
providing creative, planning, and media buying
services for a client’s individual brands
 Single media buyer and planner agency providing
centralized media planning and buying services for all
of the client’s brands
• Takeaway:
 Creating effective messages is critical but it is just as
essential that the messages are placed in the right
media and vehicles.
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
11–6
The Media-Planning Process
• Media Planning
 Is the design of a strategy that will best allocate
investments in advertising time and space to
achieve the firm’s marketing objectives
 Involves coordinating three levels of strategy:
marketing, advertising, and media strategy
• Media Strategy Activities
1. Selecting the target audience
2. Specifying media objectives
3. Selecting media categories and vehicles
4. Buying media
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11–7
Figure 11.1
Model of the Media-Planning Process
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11–8
Selecting the Target Audience
Segmentation
Factors
Buyographics
Geographic
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Demographic
Lifestyle/
Psychographics
11–9
Specifying Media Objectives
Reach
Weight
Frequency
Issues in Setting
Media Objectives
Recency
Continuity
Cost
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11–10
Issues in Setting Media Objectives
Reach
What proportion of the population should be reached with
advertising message during specified period?
Frequency
How frequently should audience be exposed to message
during this period?
Weight
How much total advertising is needed to accomplish reach
and frequency objectives?
Continuity
How should the advertising budget be allocated over time?
Recency
How close to the time of purchase should the target
audience be exposed to the advertising message?
Cost
What is the most economically justifiable way to accomplish
objectives?
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11–11
Media Objective: Reach
• Reach
 Is the percentage of the target audience exposed, at
least once, during a specified time frame to the
vehicles in which the advertising message is inserted
 Also known as 1+, Net coverage, unduplicated
audience, and cumulative audience (cume)
 OTS = opportunity to see
• Determinants of Reach
 Use of multiple media
 Diversification of vehicles within each medium
 Varying dayparts for radio and TV advertising
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11–12
Media Objective: Frequency
• Frequency
 Is the average number of times during a media-
planning period that the target audience members are
exposed to media vehicles carrying a brand’s
advertising message.
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11–13
Table 11.1
Hypothetical Frequency Distribution for the Fortwo
Advertised in Cosmopolitan Magazine
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11–14
Media Objective: Weight
• Weight Defined
 The advertising volume required to accomplish
advertising objectives
• Ratings
 The percentage of an audience that has an
opportunity to see an advertisement placed in a
particular vehicle
• Weight Metrics:
 Gross rating points (GRPs)
 Target ratings
 Effective ratings
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11–15
Weight Metrics
• Gross Rating Points (GRPs)
 Represent the gross weight that a particular
advertising schedule is capable of delivering—the
sum of all vehicle ratings in a media schedule
 GRPs = Reach (R) × Frequency (F)
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11–16
Weight Metrics (cont’d)
• Target Rating Points (TRPs)
 Are adjusted vehicle’s ratings that reflect only those
individuals who match the advertiser’s target
audience
 Indicate a media schedule’s net (non-wasted) weight
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
11–17
Weight Metrics (cont’d)
• The Concept of Effective Reach
 Answers the question of how often does the target
audience have an opportunity to be exposed
 Is that an advertising schedule is effective only if it
does not reach members of target audience too few
or too many times
• Three-Exposure Hypothesis (Krugman)
 A minimum of three exposures to an advertising
message needed for effective advertising
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11–18
Weight Metrics (cont’d)
• Effective Reach Planning in Advertising Practice
 No fewer than three and no more than ten exposures
during a four-week media planning period
 Use of multiple media
 Subjective factors must be considered
• Effective Rating Points (ERPs)
 ERPs = effective reach (or exposures) × frequency
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11–19
Table 11.2
Alternative Media Plans Based on a $25 Million
Annual Budget and Four-Week Media Analysis
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11–20
Weight Metrics (cont’d)
• An Alternative Approach: Frequency Value
Planning
 The objective is to select the media schedule that
generates the most exposure value per GRP.

Step 1. Estimate the exposure utilities for OTS that a
schedule produces.

Step 2. Estimate the frequency distribution of the various
media schedules that are under consideration.

Step 3. Estimate the OTS value at each OTS level.

Step 4. Determine the total value across all OTS levels.

Step 5. Develop an index of exposure efficiency.
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11–21
Table 11.3
Exposure Utilities for Different OTS Levels
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11–22
Table 11.4
Frequency Distributions and Valuations
of Two Media Schedules
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11–23
Media Objective: Continuity
• Continuity
 Involves how advertising is allocated during the
course of an advertising campaign.
 Addresses the fundamental issue of how the media
budget be distributed:

Uniformly throughout the period of the advertising campaign

In a concentrated period to achieve maximum impact

Some other schedule between these two choices
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11–24
Allocating the Advertising Budget
Budgeting
Alternatives
Continuous
Schedule
Pulsing
Schedule
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Flighting
Schedule
11–25
Advertising Budgeting Alternatives
• Continuous Advertising Schedule
 An equal number of ad dollars are invested
throughout the campaign
• Pulsing
 Some advertising is used during every period of the
campaign, but the amount of advertising varies from
period to period
• Flighting
 The advertiser varies expenditures throughout the
campaign and allocates zero expenditures in some
months
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
11–26
Figure 11.2
Continuous,
Pulsing, and
Flighting
Advertising
Schedules
for a Brand
of Ice Cream
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
11–27
Advertising Budgeting Alternatives
• Recency Planning (a.k.a. The Shelf-Space
Model) Principles
1. Consumers’ first exposure to an advertisement is
the most powerful
2. Advertising’s primary role is to influence brand
choice
3. Achieving a high level of weekly reach for a brand
should be emphasized over acquiring heavy
frequency
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
11–28
Recency Planning: Continuous Presence
• Advertising’s Role in Optimizing Weekly Reach
 To influence brand selection by reminding,
reinforcing, and evoking earlier messages
 To reach consumers when they are ready to buy a
brand—”rent the shelf”, not out of sight, out of mind
 To reach consumers close to the time when they are
making brand-selection decisions
 Single exposure cost effectiveness is about three
times the value of subsequent exposures
 To reach as many consumers for as many weeks as
possible rather than sporadically at select times
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
11–29
Allocating the Advertising Budget
• Toward Reconciliation: It Depends!
 No single budgeting approach is equally effective for
all brands—what works best depends on the
particular circumstances of the brand
• Strong Advertising Model
 Advertising is important because it teaches
consumers about brands and encourages trial
purchases leading to the prospect of repeat buying
• Weak Advertising Model
 Most advertising messages are not important to
consumers and that consumers do not learn much
from advertising
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11–30
Cost Considerations
• Cost per Thousand (CPM)
 The cost of reaching 1,000 people as a measure of
media efficiency

CPM = Cost of ad ÷ Number of total contacts reached
(expressed in thousands)
• CPM-TM
 The cost of reaching 1,000 members of the target
audience, excluding those people who fall outside the
target market

CPM-TM = Cost of ad ÷ Number of target market contacts
reached (expressed in thousands)
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11–31
Cost Consideration Calculations
• Advertising at a Football Game
 Cost of message delivery = $500.00
 Stadium capacity = 80,000 persons
 Cost per Thousand (CPM) = $500.00 ÷ 80 = $ 6.25
• Advertising on Television
 Total program viewership = 18,273,600 households
 Cost of 30-second commercial = $780,000
 CPM = $780,000 ÷ 18,273.6 = $42.68
 Target market percentage = 60%
 CPM-TM = $780,000 ÷ (60% × 18,273.6) = $71.14
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11–32
Use Media Cost Calculations With Caution!
• The CPM and CPM-TM Statistics
 Are useful for comparing the cost-efficiency of
different advertising vehicles, not their effectiveness
 Lack comparability across media that are unique and
priced differently
 Can be misused unless vehicles within a particular
medium are compared on the same basis (e.g.,
usage and timing)
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11–33
The Necessity of Making Tradeoffs
• Why Tradeoffs?
 Media planners operate
under the constraint of a
fixed advertising budget
 Optimizing one objective
impacts other objectives
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11–34
Media-Scheduling Software
• Computerized Media-Scheduling Models
 Attempt to optimize an objective function (e.g., reach)
subject to satisfying constraints (e.g., budgetary
limits) in developing a specific media schedule
• Steps in Using a Computerized Model
1. Develop a media database
2. Select the criterion for schedule optimization
3. Specify budget and frequency constraints for each
vehicle
4. Seek out the optimum media schedule
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11–35
Table 11.5
Media Database for the Esuvee-H
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11–36
Table 11.6
ADplus Magazine Schedule for the Esuvee-H
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11–37
Table 11.6
ADplus Magazine Schedule for the Esuvee-H (cont’d)
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11–38
Review of Media Plans
• The Diet Dr. Pepper Campaign
 Target:

Adults ages 18 to 49 who are present or prospective diet
soft-drink consumers
 Objectives:



To increase Diet Dr. Pepper sales by 4 percent and improve
its growth rate to 1.5 times that of the diet soft-drink category.
To heighten consumers’ evaluations of the key product
benefit and image factors that influence brand choice in this
category.
To enhance brand-personality dimensions that differentiate
Diet Dr Pepper from other diet drinks—particularly that Diet
Dr Pepper is a unique, clever, fun, entertaining, and
interesting brand to drink.
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
11–39
Review of Media Plans (cont’d)
• The Diet Dr. Pepper Campaign (cont’d)
 Creative Strategy

To position the Diet Dr Pepper brand as “tasting more like
regular Dr Pepper”—nearly 60 percent of initial trial users of
Diet Dr Pepper are motivated by the desire to have a diet soft
drink that tastes like regular Dr Pepper.
 Media Strategy



Place advertisements during professional and college
football games
Sponsor various special events
Continuously advertise during prime time, on late-night
television, on syndicated programs, and on cable stations
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11–40
Table 11.7
Media Plan for
Diet Dr Pepper
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11–41
Table 11.7
Media Plan for
Diet Dr Pepper
(cont’d)
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11–42
Review of Media Plans (cont’d)
• Saab Model 9–5 Campaign
 Target:

Upscale families and relatively affluent older consumers
 Objectives:

Generate excitement for the new 9–5 model line

Increase overall awareness for the Saab name

Encourage consumers to visit dealers and test-drive the 9–5

Produce retail sales of 11,000 units of the 9–5 during the
introductory year
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11–43
Review of Media Plans (cont’d)
• Saab Model 9–5 Campaign (cont’d)
 Creative Strategy

To position the 9–5 as a luxury automobile capable of
delivering an ideal synthesis of performance and safety
 Media Strategy

To generate high levels of reach and frequency among the
target group of older and financially well-off consumers
 Media Schedule:



Network and cable TV advertising before and following the
9–5’s introduction
Continuous magazine and newspaper advertising throughout
the 9-5’s introduction year
Internet banner advertising the 9-5 model continuously
throughout the introductory year
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11–44
Table 11.8
Media Plan for the Saab 9-5
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11–45
Review of Media Plans (cont’d)
• Olympus Camera Media Plan
 Target:

Digital camera users
 Objectives:


To introduce the Stylus Verve and the m:robe successfully
To shift marketplace perceptions that Olympus was a maker
of designer electronics items and not merely cameras
 Strategy


Place the Olympus message in media that people talk about,
that generate buzz, that yield free media coverage, that have
longevity, and that are influential.
To reach both men and women and suitable for Olympus’
fourth-quarter selling season (October through December)
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11–46
Review of Media Plans (cont’d)
• Olympus Camera Media Plan (cont’d)
 Media and Vehicles:

Sponsored sporting and fashion events

National network and cable TV programs with high
viewership and buzz potential

Various magazines with different readership segments

Out of home (OOH) impact units in key Olympus markets

In-theater advertising in the top-25 markets

Online advertising through a non-branded interactive Web
site
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11–47
Table 11.9
Media Plan for Olympus’ Stylus Verve and m:robe Brands
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11–48