Chapter 5
Advertising: Media
Planning
1
Media Planning
“A plan of action to communicate a message to a
target market a the right time, and right frequency.”
The goal of a media plan is to be efficient: to gain
maximum exposure at minimum cost.
2
Media Planning
IMC
Plan
Advertising Plan
Media Plan
Objectives
Strategies
Execution
Creative
Plan
3
Media Brief
Media planners require essential information from the
client.
1. Market Profile
2. Competitor Media Strategy
3. Target Market Profile
4. Media Objectives
5. Budget
4
Media Plan
“A document outlining how a client’s budget will be
spent.”
Media Objectives
Media Strategies
Media Execution
5
Media Objectives
Who
is the target market?
What
is the message?
Where
are the priority markets?
When
is the best time to
advertise?
many, often, long?
How
6
Media Strategy
Numerous factors are evaluated and they are usually
ranked based on priority.
• Target market and media matching strategy
• Creative strategy influences media choices
• Coverage decisions are based on the budget
• Timing decisions are crucial for scheduling
• Reach, frequency, and continuity priorities
• Budget
7
Target Market Matching
Strategies
Knowledge of a target’s media consumption habits
helps define the media strategy.
Shotgun
Profile Match
Rifle
8
Market Coverage
The budget available often dictates the extent of
market coverage.
National
West
Key Markets
Central
East
Category and brand development
indexes are used to set market
priorities
9
Media Scheduling
Even
Skip
Pulse
Seasonal
Blitz
Build-Up
10
Reach / Frequency / Continuity
Reach
Total audience exposed to a message
one or more times in a period, usually
a week.
Frequency
The average number of times a
message has been exposed to an
audience over a period of time.
Continuity
The length of time required to
generate impact on a target.
11
Media Execution
Selecting the right media is usually a three stage decision
process.
1. Type of Media
Magazine
Television
2. Class of Media
Sports
Network
3. Specific Medium
Sports Illustrated
CTV
When selecting a specific medium, CPM is a determining
factor.
12
Comparing Media Alternatives
CPM
The cost of the ad divided by
the circulation (in thousands).
Formula: (Cost of the ad/circulation) x
1000
Cost
Circulation
ROB
$18,800
363,700
National Post
Business
$15,010
311,300
Canadian Business
$14,000
80,500
Magazine
CPM
ROB and National Post Business have a circulation advantage
since they are distributed by newspapers that own the magazines.
13
Comparing Media Alternatives
The cost of the ad divided by
the circulation (in thousands).
CPM
Formula: (Cost of the ad/circulation) x 1000
Magazine
Cost
Circ
CPM
ROB
$18,800
363,700
$51.69
National Post
Business
$15,010
311,300
$48.22
Canadian Business
$14,000
80,500
$173.91
ROB and National Post Business have a circulation advantage
since they are distributed by newspapers that own the magazines.
14
Scheduling and Budget Summary
1. A blocking chart summarizes in a few pages all of the
media execution details: media usage, market coverage,
weight levels, reach and frequency, and timing of the
campaign.
2. The budget summary classifies spending by medium,
region, and time of year.
15
16
Assessing Media Alternatives
The strengths and weaknesses of all media options
are evaluated.
Medium
Pro
Con
Television
Radio
Magazines
Newspapers
17
Assessing Media Alternatives
The strengths and weaknesses of all media options
are evaluated.
Medium
Television
Radio
Pro
Con
Impact
High Cost
Reach
Clutter
Targeting
Fragmentation
Frequency
Message (Sound only)
18
Assessing Media Alternatives
Medium
Pro
Newspaper Local Reach
Magazine
Con
Short Life
Key Market Coverage
Clutter
Targeting
Clutter
Message Quality
Low Frequency
19
Calculating the Cost of
Media
25
Newspaper Cost Calculation
Newspaper rates are based on a per line rate
There are two ways to calculate lines – MAL and
Agate
Some newspapers use one way, some use another
Usually, the line rate goes down as you advertise
more = Volume discounts
26
Calculating Newspaper Costs
The Globe and Mail
Assuming you spend only $25,000 per
year
Find the cost of:
320 line ad in the National Paper on
Saturday for four Saturdays
27
Calculating Newspaper Costs
The Globe and Mail
Assuming you spend only $25,000 per
year
Find the cost of:
320 line ad in the National Paper on
Saturday for four Saturdays
Answer:
320 X $23.39 x4 = $29,939.20
28
Calculating Newspaper Costs
The Toronto Star
A 3000 line ad in the Saturday edition for 2
Saturdays
29
Calculating Newspaper Costs
The Toronto Star
A 3000 line ad in the Saturday edition for 2
Saturdays
Answer:
3000 x $20.78 x 2 = $124,680
30
Factors Influencing Newspaper
Rates
Position
Charge
A request for a specific page
or section increases the cost.
Colour
Colour increases cost but it
also increases awareness.
Inserts
Rates are quoted on a CPM
basis and are influenced by
number of pages.
31
Comparing Newspapers for
Efficiency
Specs.
Star
Sun
Globe
1000 lines
1000 lines
1000 lines
Line Rate
$15.90
$6.89
$27.43
Total Cost
$15,900
$6,890
$27,430
Circulation
454,831
230,644
354,574
CPM
$34.96
$29.88
$77.35
Size
Formula: (Cost of the ad/circulation) x 1000
32
Buying Magazine Space
The cost of the ad is determined by multiplying the
page rate (by size) by the frequency.
If a 1P, 4C ad costs $20,000 and it runs in 6
consecutive issues of a monthly magazine, the total
cost would be:
$20,000 x 6 = $120,000.
33
Magazine Cost Calculation
Plan
Canadian Geographic
1 Page
4 Colour
4 insertions
The base rate would be
the 3-5 times rate on
the rate card.
Cost Calculation:
$10,755 x 4 = $43,020
34
Magazine Cost Calculation
Find the cost of the following ad in
Canadian Living
1 page, 4 times in the National edition
What is the cost of the ad?
What is the CPM?
35
Magazine Cost Calculation
Find the cost of the following ad in Canadian
Living
1 page, 4 times in the National edition
Answer:
$28,575 x 4 = $114,300
What is the CPM
($114,300/555,884) X 1000 = $205.62
36
Magazine Discounts
Frequency
The number of times the
ad is run.
Continuity
The length of time during
one year period.
Corporate
Total pages bought by all
company brands during
one year period.
37
Colour and Position Charges
Colour advertising is the norm in magazines so rates are
usually quoted as 4-colour rates. Higher rates are
charged for cover positions and specific page requests.
Covers
Position
Charge
Inside Front (IFC), inside back
(IBC), and outside back (OBC).
About 20% more.
A specific page request
increases the cost per page by
15 – 20%.
38
Comparing Magazines for
Efficiency
Specifications
Canadian Living
Flare
1P, 4C
Circulation
CPM
Both magazines have different rates and
circulations but the CPM is almost identical.
39
Comparing Magazines for
Efficiency
Specifications
Canadian Living
Flare
1P, 4C
$29,160
$15,600
Circulation
555,884
172,362
CPM
$52.84
$90.51
Both magazines have different rates and
circulations but the CPM is almost identical.
40
Television Advertising Rates
TV rates are not published; they are subject to negotiations
between advertising agencies and the networks and stations.
Rates are influenced by:
• Supply and Demand
• Type of Program
• Time of Day
• Length of Commercial
• Gross Rating Points
41
GRPs and Television
GRPs consider the size of the audience (reach) and
frequency.
Audience
Rating
# of Spots
GRPs
18 – 49
30
2
60
18 – 40
25
2
50
18 – 40
20
2
40
Total
150
If 6 spots were scheduled in one week the
weight level would be 150 GRPs.
42
Television Discounts
Frequency
For a minimum number of
spots in a specified period.
Volume
For a $ volume commitment
in a one-year period.
Continuity
For a minimum number of
spots over an extended
period (one-year).
43
Buying Radio Time
Advertisers can request specific times or opt for a
reach plan.
Reach
Plan
Commercials are rotated
through the various dayparts
and days of the week based
on predetermined frequency.
Vertical rotation refers to time of day; horizontal
rotation refers to day of week.
44
Radio Grid Rates
Radio stations establish grid rates which are different
rates based on the frequency and volume of advertising
an advertiser purchases.
As an advertiser purchases more spots or extends the
schedule over a longer period, they will move to
another grid—a grid with lower rates. The more you
buy, the less you pay per spot!
45
Radio Discounts
Frequency
Volume
Continuity
For a minimum number of
spots in one week.
For buying a large number of
spots in a specified period.
Scheduling ads over an
extended period (26, 39, 52
weeks).
46
Buying Radio Time
Reach Plan
16 spots per week
16 week
Drive to work time
A reach plan saves an
advertiser money!
16 spots / week x 16 weeks x $250 = $64,000.
47
Buying Radio Time
Specific Request
Plan
680 News – 30 sec spots
8 Breakfast
8 Drive
Each Week for 16 weeks
The total number of spots in the
buy are calculated first.
Breakfast: 8 x 16 = 128
Drive: 8 x 16 = 128
Total spots: 256
Breakfast: $150 x 128 = $19,200
Drive: $85 x 128 =
$10,880
Total Cost =
$69,760
48