© 2006 Pearson Education Canada Inc. 7.1

Canadian Advertising in Action

Chapter 7

Media Planning Essentials

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Learning Objectives

Assess roles & responsibilities of client and agency in media planning

Differentiate among objectives, strategies and execution

Utilize media terminology Describe media selection process Identify advertising budget factors Describe advertising budget methods

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Media Planning

Client provides relevant information to agency in the form of a media brief.

1. Market Profile

2. Product Media Profile

3. Competitor Media Usage

4. Target Market Profile

5. Media Objectives

6. Media Budget

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Media Planning Process

Media ExecutionMedia Execution

Marketing PlanMarketing Plan

Media ObjectivesMedia Objectives

Media StrategiesMedia Strategies

Creative PlanCreative Plan

Advertising PlanAdvertising Plan

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Media Objectives

WhoWho is the target market?

WhatWhat is the message?

WhereWhere are the priority markets?

WhenWhen is the best time to advertise?

HowHow many, often, long?

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Media Strategies

• Target Market

• Nature of Message

• Reach/Frequency/ Continuity/ Flexibility

• Market Coverage

Numerous factors are considered for achieving objectives:

• Timing of delivery

• Competitor media usage

• Media alternatives

• Budget

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Target Market Media Strategies

Profile- match

Profile- match

RifleRifle

Road-block

Road-block

ShotgunShotgun

Explain why roadblocking is not useful in rifleor profile-matching strategies.

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Balancing Strategic Variables

Reach How many?

Frequency How often?

Continuity How long?

How flexible is the plan? Can it be altered?

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Reach

The total unduplicated audience [individuals or households] exposed to a message one or more times in a period (week).

Reach Formula = # households tuned in # households in area

= 50 000 or 1 250 000 5

= 20%

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Frequency

The average number of times an audience is exposed to a message over a period of time (week).

Frequency = Total ExposuresFormula Reach

= 250 000 50 000

= 5.0

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Continuity: The length of time required to generate impact on a target audience.

Continuity / Flexibility

Flexibility: ability to modify media spending plans throughout the scheduled advertising period.

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Gross Rating Points

GRPs refer to the weight of a media schedule against a pre-determined target audience.

GRP = Reach (%) x Frequency

= 50 x 3.5

= 175

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Impressions

Impressions, or total exposures, are the total number of commercial occasions multiplied by the total target audience potentially exposed to each occasion.

Impressions = Reach x Frequency

= 500 000 x 4

= 2 000 000

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Media Coverage

National

Regional

Key Market

Selective

Identifying the number of markets where advertising will occur.

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Advertising Flights

8.10

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Scheduling Options

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Media Alternatives

TelevisionRadio

NewspaperMagazines

Out-of-HomeDirect Response

Internet

TelevisionRadio

NewspaperMagazines

Out-of-HomeDirect Response

Internet

1. Assess pros and cons of each

2. Identify primary and secondary media

3. Budget is key influence

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Budget Influence on Media Strategy

Media Mix:Primary &Secondary

Media

SelectiveMedia Usage

SmallBudget

LargeBudget

ReachFrequencyContinuityCoverageTiming

CompetitionMedia Type

Limitedstrategy Flexible

strategy

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Media Selection Process

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Media Execution

• Media Scheduling and Budgeting (Blocking Chart)

• Media Buying (Negotiation)

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Agency Role in Media Planning

A media director oversees staff responsible for developing the plan and selecting, scheduling, and buying time and space. Computers play a key role in media planning.

Pre-buyAnalysisPre-buyAnalysis

Estimated audience deliveries in a schedule

Post-buyAnalysisPost-buyAnalysis

Actual audience deliveries

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Factors Influencing Budgets

1. Customer Characteristics

2. Degree of Competition

3. Product Life Cycle

4. Management Attitude

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5 Budgeting Methods

1. Percentage of Sales

2. Fixed Sum per Unit Sold

3. Industry Average

4. Task

5. Share of Advertising / Share of Market