where/when/how cdi/bdi/indexcpm/cpp. review what is reach? -% of people exposed to a message what...
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WHERE/WHEN/HOW
CDI/BDI/INDEX CPM/CPP
REVIEW WHAT IS REACH?-% OF PEOPLE EXPOSED TO A MESSAGE
WHAT IS EXCLUSIVE REACH?-% OF DIFFERENT PEOPLE EXPOSED TO A MESSAGE
WHAT IS FREQUENCY?AVERAGE # TIMES PEOPLE EXPOSED
WHAT IS COVERAGE?POTENTIAL TO BE REACHED
DIFFERENCE-REACH IS ACTUAL - COVERAGE IS POTENTIAL
REVIEW (CONT) HOW DO YOU CALCULATE GRP’S/IMPRESSIONS?R X F=GRP’S R X F =GROSS IMPRESSIONS
HOW DO YOU CALCULATE FREQUENCY?F=GRP’S/REACH OR IMPRESSIONS/REACH
HOW DO YOU CALCULATE REACH?R= GRP’S/FREQUENCY OR IMPRESSIONS/FREQUENCY
OBJECTIVEStudent will learn new terms and apply them in class and out:
Terms: Index, CDI, BDI, CPM, CPPStudent will learn different broadcast dayparts and uses of dayparts.
INDEX Index based on sales performance % population- a form of % that
relate numbers to a base of 100. Used to demonstrate:-average
-above average-below average
In this course we use 2 ways : CDI and BDI
CDI/BDI
Category Development Index (CDI)-addresses category sales-defines pockets of strength and weakness for a new category entering a market or to compare CDI to BDI
Brand Development Index (BDI-Generally displayed by region of country and shows how each area is performing relative to the US performance-Comparison of product category sales or brand sales with potential for sales of category or brand based on population-Allocation of advertising money across marketing regions-Allocation of extra marketing/advertising dollars
CDI/BDI
CDI=% of product category’s total U.S. sales in market A X 100
% of total U.S. population in the same market
BDI=% of brand’s total U.S. sales in market A____ X 100 % of total U.S. population in the same market
In Class Exercises
1. Index Number Analysis2. BDI/CDI
Interpretation of CDI & BDI
High BDI Low BDI
High CDI
Both product and brand are doing well: “A promising market.”
Brand is doing poorly compared to categoryRoom for brand to grow
Low CDI
If the category shows continuous decline, no need to put extra money. If the market is being rejuvenated, then worth putting in more money
No added investment of money
Weighting of CDI & BDI Depends on marketing strategy Examples
Young brands with limited sales history -more on CDI Mature brands -more on BDI Safe way is to weight BDI & CDI 50% each
When to Advertise Decisions about when to advertise depends on number of
important considerations When sales are greatest or least Budget constraints When competitors advertise Specific goals for the brand in question Availability of product Promotional requirementOne point underlies Advertise when people tend to buy the product
When-Analyze monthly sales Snow blower in New York…October or June?
Ice Cream…May-Aug
Ice Cream Sales NE RegionMONTH CATEGORY BRAND INDEX
January 8.2% 6.5% 83
February 7.7 6.5 85
March 8.5 8.2 96
April 8.2 7.5 91
May 8.5 8.9 105
June 8.2 8.9 109
July 8.5 9.4 110
August 8.5 10.3 121
September 8.2 8.2 100
October 8.5 8.8 103
November 8.2 7.6 93
December 8.5 9.5 112
When to Advertise Theoretically Brand should advertise more heavily in months when sales have
been higher What if category sells well but brand does not? Should you advertise when category does best or when brand
does best?Some considerations can require a change in your media strategy,
but generally advertise when THE CATEGORY DOES BEST
When to Advertise Planners need to keep in mind the effect of certain seasons in
studying monthly sales records Back to School Christmas Easter
Certain kinds of products (seasons/months) have become associated with “White Sale” months that sell linens, towels, tablecloths…If a brand belongs to a category associated with a season, pay special attention to monthly sales figures
Budget constraints Often budget not large enough to permit year round sales Allocate dollars to best selling months:
Maintain Continuity (continuous advertising all year long Flight (periodic advertising followed by hiatus) Planners will never have all they money they would like to
have to do the “best plan”…This is one reason planners often provide 3 options of plans for a client to select from…One that shows what the ideal plan would be, one that shows minimal levels of advertising and one that is midway between the two (generally the one they think the client will go for)
Competitive activity Important to consider when competitors advertise If your timing pattern is different from the category
pattern you need to explain or justify why you are doing this Is it an opportunity? Do you have a Grand Opening planned? Is there a special sale? If you can’t compete during the category season, is
there something you can do during another time of year that will help your client increase their share of business?
Furnace company-spring check up at ½ price or check up in November (when you have more business than you can handle.)
Specific Goals for the Brand React aggressively to competitive strategies
Advertise heavily a month early to begin before the competition starts in order to increase market share
Outspend the competition in a particular month…withdraw money from the year long effort for a concentrated attack
New Product introduction Heavy initial weight Lighter weight later on
Product Availability In certain situations demand outstrips ability to supply product
Example at Christmas the newest Elmo doll always has more demand than the toy company can supply
In such case, timing of advertising has to be related to production availability.
Promotional Requirements If aggressive sales promotion campaign planned proceeding or
during and ad campaign, this will affect timing Example-A cents-off deal might require aggressive advertising
when the campaign to announce the promotion kicks off
How Determining most efficient way to advertise is one way Basic measurements
CPM CPP
Cost efficiency of media vehicles Cost efficiency-related to media cost
How many does it reach?-size How much does it cost?-cost
Two Measures CPM: print media CPP: broadcast media
How/CPM Cost efficiency of media vehicles based on
audience size and cost****** In order to determine most efficient…part of
how…need to sue the same yardstick to compare vehicles -COST PER 1,000 prospects
Audience base: Circulation, # homes reached, readers, # of audience of any kind of demographic or product usage classification
CPM is the great equalizer of media in terms of efficiency
CPM enables planners to compare media vehicles with each other to find most efficient .
Basis of comparison is the CPM
HOW/CPM
Print CPM
Cost of 1 page (BW) X 1000Circulation (# prospects reached)
Broadcast CPM
Cost of 1 spot X 1000# prospects in target
CPM Formula CPM ($) = Cost ($) X 1,000
Gross Impressions*
*Gross Impressions-Circulation
-# of actual readers-# of homes-# of audience members with specific demographic or
product usage classifications
CPM Strictly talking about efficiency
Does not take into account qualitative. most efficient might not be most effective.
When comparing different medias, planners will generally weight media by importance (last week covered advantages & disadvantages of each media) Planner might say, “Radio is only sound. TV & Cable are sight & sound. My product needs to be seen and heard in order to be understood, TV will be rated 50% more important than radio and I will decrease the CPM of TV accordingly when I compare the two medias.
CPP Typically applied for TV and Radio Cost per rating point…Cost to reach 1% of the target population
CPP ($) = Total Cost ($)Rating points*
*Rating = % of target tuned in during average minute of a program
Guided practice Example 1
Cost of 30-second commercial: $1,100 # households delivered at 2:00 p.m.: 77,000 CPM??? ($14.28 to reach 1000 households at 2:00 p.m.)
Example 2 Cost of 30-second commercial: $1,100 DMA rating at 2:00 p.m. 8 (%) CPP??? ($137.50…It costs 137.50 to reach 1% of the DMA at
2:00 p.m.)
Which one to use? CPM: The efficiency of individual vehicles or to compare
various media CPP: Cost calculation for the entire broadcast plan
or to compare various broadcast medias or dayparts to each other
Broadcast Dayparts TV is a Reach media and is still the fastest way to get a message
out. TV consists of several dayparts which loosely are (in this time zone): Early Morning (M-F/5-10 am) Early morning news, Today
Show, Efficient daypart. Audience getting ready for work but fairly attentive. Element of soft news lends credibility to advertisers
Daytime (M-F 10a-3 pm) Day , Game shows, Judge shows, Soap Operas, Talk shows…Regis & Kelly, Jerry Springer, Ellen, Dr. Phil. Low cost to advertise Generally an older less affluent audience. Good daypart for advertising to alcoholics, those out of work, retired, students
Broadcast Dayparts
Early Fringe (M-F 3-6:30 pm…or whenever News starts) Syndicated comedies…Malcolm in the Middle, Friends, Simpson's, some talk shows..Oprah) Generally low cost and efficient area. Good area for restaurants, fast foods, pizza delivery. Reaches Children, Teens, Ad 18-49.
Access (M-F 6:30-7 pm) Game shows, entertainment shows, syndicated comedies …Entertainment Tonight, Extra, Seinfeld, King of Hill. More expensive than Early Fringe, but less than Prime. Great for restaurants, Pizza deliver, food categories, generally high audience levels.
Early News M-F 4-6 time frame on some stations. High demand area. Expensive daypart. Good reach area for more affluent, better educated television viewers. Element of News lends credibility to advertisers. Local News does better than National News in any given market. Good area for food advertisers, car advertisers, political advertisers.
Broadcast Dayparts
Prime Time (M-Sa 7-10PM, Su 6-10PM) Prime. Highest Reach area. Expensive daypart. CSI, Grey’s Anatomy, Gilmore Girls. Good area to reach Ad 18-34, Ad, 18-49, Ad 2554, Ad 35+. Generally not used as a vehicle to reach teens due to inefficiency against that demographic. Most expensive daypart (except premium Sports)
Late News (M-Su 10-1030 pm) High demand area. Expansive daypart. Comparable with Prime time cpp’s in many markets. Good reach area for affluent, better educated television viewers. Element of News lends credibility.
Late Fringe (M-Su 1030p-1am) Late night. Tonight Show, Letterman, Conan O’Brien, Seinfeld, Friends, Talk shows, comedies. Efficient daypart. Lower reach than most other dayparts. Good area to reach males.
Overnight (M-Su 1a-5a) Various. Very low reach. Often no- charged to advertisers.
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