media planning establishing frequency goals for an advertising campaign is a mix of art and science...

Media Use Decision— Print

Media Use Decision— Broadcast

Media Use Decision— Other Media

Creative Strategy Plan

Developing the Media PlanDeveloping the Media Plan

Setting Media Objectives

Selecting Media Within Class

Selecting Broad Media Classes

Determining Media Strategy

Marketing Strategy PlanSituation Analysis

Goals to be attained Goals to be attained by the media by the media strategy and strategy and

programprogram

Decisions on how Decisions on how the media the media

objectives can be objectives can be attainedattained

Media Planning - A series of decisions involving the delivery of messages to audiences.Media Planning - A series of decisions involving the delivery of messages to audiences.

Media Planning TermsMedia Planning TermsMedia Planning TermsMedia Planning Terms

Medium - the general category of delivery system.Medium - the general category of delivery system.

Media vehicle - the specific carrier within a mediumMedia vehicle - the specific carrier within a medium

Reach - the percentage of audience members Reach - the percentage of audience members exposed at least once to a message or media vehicle.exposed at least once to a message or media vehicle.

Coverage - the Coverage - the potentialpotential audience that audience that mightmight receive receive the message through a media vehicle.the message through a media vehicle.

Frequency - the number of times the receiver is Frequency - the number of times the receiver is exposed to the message in a given period of time.exposed to the message in a given period of time.

Medium - the general category of delivery system.Medium - the general category of delivery system.

Media vehicle - the specific carrier within a mediumMedia vehicle - the specific carrier within a medium

Reach - the percentage of audience members Reach - the percentage of audience members exposed at least once to a message or media vehicle.exposed at least once to a message or media vehicle.

Coverage - the Coverage - the potentialpotential audience that audience that mightmight receive receive the message through a media vehicle.the message through a media vehicle.

Frequency - the number of times the receiver is Frequency - the number of times the receiver is exposed to the message in a given period of time.exposed to the message in a given period of time.

Media Planning DifficultiesMedia Planning Difficulties

Lack of informationLack of information

Inconsistent termsInconsistent terms

Serious time pressureSerious time pressure

Measurement problemsMeasurement problems

Media Planning Criteria Media Planning Criteria ConsiderationsConsiderations

The media mixThe media mix

Target market coverage (Who?)Target market coverage (Who?)

Geographic coverage (Where?)Geographic coverage (Where?)

SchedulingScheduling

Reach versus frequencyReach versus frequency

Creative aspects and moodCreative aspects and mood

FlexibilityFlexibility

Budget considerationsBudget considerations

To Whom Shall We Promote?To Whom Shall We Promote?To Whom Shall We Promote?To Whom Shall We Promote?

Market Potential IndexMarket Potential IndexMarket Potential IndexMarket Potential Index

Percentage of users in a segment

Percentage of population in segment

Percentage of users in a segment

Percentage of population in segmentx 100x 100

Percentage of males that drink cola

Percentage of males in the population

Percentage of males that drink cola

Percentage of males in the populationx 100x 100

53.1

(87118 / 182456)

53.1

(87118 / 182456)x 100 = 111x 100 = 111

Product: ColaSegment: Adult males in the USProduct: ColaSegment: Adult males in the US

To Whom Shall We Promote?To Whom Shall We Promote?To Whom Shall We Promote?To Whom Shall We Promote?

Misuse of the IndexMisuse of the IndexMisuse of the IndexMisuse of the Index

AgeSegment

Populationin Segment

Productuse in

Segment

Index

18-24 15.1 18.0 119

25-34 25.1 25.0 100

35-44 20.6 21.0 102

45+ 39.3 36.0 91

Where to Promote?Where to Promote?Where to Promote?Where to Promote?Buying Power IndexBuying Power Index

Sales & Marketing ManagementSales & Marketing Management Gives relative value of a market.Gives relative value of a market.

Buying Power IndexBuying Power Index Sales & Marketing ManagementSales & Marketing Management Gives relative value of a market.Gives relative value of a market.

Where to Promote?Where to Promote?Where to Promote?Where to Promote?

Brand Development Index (BDI)Brand Development Index (BDI)Brand Development Index (BDI)Brand Development Index (BDI)

Percentage of brand sales in a market to total US sales

Percentage of total US population in the market

Percentage of brand sales in a market to total US sales

Percentage of total US population in the marketx 100x 100

50%

16%

50%

16%x 100 = 312x 100 = 312

Percentage of brand sales in South Atlantic region

Percentage of US population South Atlantic region

Percentage of brand sales in South Atlantic region

Percentage of US population South Atlantic regionx 100x 100


Category Development Index (CDI)Category Development Index (CDI)Category Development Index (CDI)Category Development Index (CDI)

Percentage of product category total sales in market

Percentage of total US population in the market

Percentage of product category total sales in market

Percentage of total US population in the marketx 100x 100

25%

16%

25%

16%x 100 = 156x 100 = 156

Percentage of product category sales in South Atlantic

Percentage of US population South Atlantic region

Percentage of product category sales in South Atlantic

Percentage of US population South Atlantic regionx 100x 100


Using CDI and BDIUsing CDI and BDIUsing CDI and BDIUsing CDI and BDI

High BDI Low BDI

High CDIHigh market share

Good market potential

Low market share


Low CDIHigh market share

Poor market potential

Low market share


High BDI Low BDI



Low market share




Low market share




High BDI Low BDI



Low market share




Low market share


High BDI Low BDI



Low market share




Low market share


This market usually represents good sales potential.Excellent advertising market.This market usually represents good sales potential.Excellent advertising market.



High BDI Low BDI



Low market share




Low market share


High BDI Low BDI



Low market share




Low market share


Category is not selling well but the brand is.Probably a good market, but monitor for declining sales.Category is not selling well but the brand is.Probably a good market, but monitor for declining sales.



High BDI Low BDI



Low market share




Low market share


High BDI Low BDI



Low market share




Low market share


Category shows high potential but the brand is not doing well. Reason must be determined.Category shows high potential but the brand is not doing well. Reason must be determined.



High BDI Low BDI



Low market share




Low market share


High BDI Low BDI



Low market share




Low market share


Both the category and the brand are doing poorly.Not likely to be a good place for advertising.Both the category and the brand are doing poorly.Not likely to be a good place for advertising.

Timing StrategiesTiming StrategiesTiming StrategiesTiming Strategies

0

20

40

60

80

100

$ Spent

Campaign Time

Continuity Stragegy

0

20

40

60

80

100

$ Spent

Campaign Time

Continuity Stragegy


ContinuityContinuity AdvantagesAdvantages

Constant reminderConstant reminder

Covers the entire buying cycleCovers the entire buying cycle

Allows for media priorities (discounts, scheduling)Allows for media priorities (discounts, scheduling) DisadvantagesDisadvantages

Higher costsHigher costs

Potential for overexposurePotential for overexposure Typical useTypical use

Food productsFood products

Laundry detergentLaundry detergent

Products consumed on an ongoing basisProducts consumed on an ongoing basis

ContinuityContinuity AdvantagesAdvantages

Constant reminderConstant reminder

Covers the entire buying cycleCovers the entire buying cycle

Allows for media priorities (discounts, scheduling)Allows for media priorities (discounts, scheduling) DisadvantagesDisadvantages



Food productsFood products

Laundry detergentLaundry detergent

Products consumed on an ongoing basisProducts consumed on an ongoing basis


0

20

40

60

80

100

$ Spent

Campaign Time

Flighting Stragegy

0

20

40

60

80

100

$ Spent

Campaign Time

Flighting Stragegy

Takes advantage of a carryover effect in consumerawareness levels.Takes advantage of a carryover effect in consumerawareness levels.

0

20

40

60

80

100

$ Spent

Campaign Time

Flighting Stragegy

0

20

40

60

80

100

$ Spent

Campaign Time

Flighting Stragegy


Takes advantage of a carryover effect in consumerawareness levels.Takes advantage of a carryover effect in consumerawareness levels.

ConsumerAwarenessConsumerAwareness


FlightingFlighting AdvantagesAdvantages

Cost efficiencyCost efficiency

May allow multiple media or vehicles with limited budgetMay allow multiple media or vehicles with limited budget

Weighting may offer more exposure and competitive advantage during Weighting may offer more exposure and competitive advantage during scheduled timesscheduled times

DisadvantagesDisadvantagesLack of awareness/interest/retention during unscheduled timesLack of awareness/interest/retention during unscheduled times

Vulnerable to competitive efforts during unscheduled timesVulnerable to competitive efforts during unscheduled times Typical useTypical use

Products with limited budgets Products with limited budgets

Products for which highest potential buying times can be identified Products for which highest potential buying times can be identified

Seasonal productsSeasonal products

FlightingFlighting AdvantagesAdvantages

Cost efficiencyCost efficiency

May allow multiple media or vehicles with limited budgetMay allow multiple media or vehicles with limited budget

Weighting may offer more exposure and competitive advantage during Weighting may offer more exposure and competitive advantage during scheduled timesscheduled times

DisadvantagesDisadvantagesLack of awareness/interest/retention during unscheduled timesLack of awareness/interest/retention during unscheduled times

Vulnerable to competitive efforts during unscheduled timesVulnerable to competitive efforts during unscheduled times Typical useTypical use

Products with limited budgets Products with limited budgets

Products for which highest potential buying times can be identified Products for which highest potential buying times can be identified

Seasonal productsSeasonal products


0

20

40

60

80

100

$ Spent

Campaign Time

Pulsing Stragegy

0

20

40

60

80

100

$ Spent

Campaign Time

Pulsing Stragegy

Combination of Continuity and Flighting. Advertising is increased during an open aperture.Combination of Continuity and Flighting. Advertising is increased during an open aperture.


PulsingPulsing AdvantagesAdvantages

Previous two methods combinedPrevious two methods combined DisadvantagesDisadvantages



Automobiles April/September/DecemberAutomobiles April/September/December

Products with large budgets + peak sales periodsProducts with large budgets + peak sales periods

PulsingPulsing AdvantagesAdvantages

Previous two methods combinedPrevious two methods combined DisadvantagesDisadvantages



Automobiles April/September/DecemberAutomobiles April/September/December

Products with large budgets + peak sales periodsProducts with large budgets + peak sales periods

Reach & FrequencyReach & FrequencyReach & FrequencyReach & Frequency

Duplicated ReachDuplicated ReachDuplicated ReachDuplicated Reach


Gross Ratings Points = Reach x FrequencyGross Ratings Points = Reach x Frequency 100 GRPs100 GRPs

100% exposed 1 time100% exposed 1 time

50% exposed 2 times50% exposed 2 times



Target Ratings Points = Target Audience Reach x FrequencyTarget Ratings Points = Target Audience Reach x Frequency

Gross Ratings Points = Reach x FrequencyGross Ratings Points = Reach x Frequency 100 GRPs100 GRPs

100% exposed 1 time100% exposed 1 time




Target Ratings Points = Target Audience Reach x FrequencyTarget Ratings Points = Target Audience Reach x Frequency


Magazine Readers/Issue

Rating UnduplicatedReaders

Today's Happiness

50,000 50.0 30,000

News Round-up

40,000 40.0 15,000

Fast Life 18,000 18.0 11,000

Totals 108,000 108.0 56,000

Magazine Readers/Issue

Rating UnduplicatedReaders

Today's Happiness

50,000 50.0 30,000

News Round-up

40,000 40.0 15,000

Fast Life 18,000 18.0 11,000

Totals 108,000 108.0 56,000

Target population:Target population: 100,000100,000Total gross impressions:Total gross impressions: 108,000108,000Gross rating points:Gross rating points: 108108Reach:Reach: 56 (56,000/100,000)56 (56,000/100,000)Average frequency:Average frequency: 1.9 issues (108,000/56,000)

or (108 GRP/56 Reach)1.9 issues (108,000/56,000)or (108 GRP/56 Reach)

Effects of Reach and FrequencyEffects of Reach and Frequency1.1. One exposure of an ad to a target group within a purchase One exposure of an ad to a target group within a purchase

cycle has little or no effect in I most circumstances.cycle has little or no effect in I most circumstances.2.2. Since one exposure is usually ineffective, the central goal of Since one exposure is usually ineffective, the central goal of

productive media planning I should be to enhance frequency productive media planning I should be to enhance frequency rather than reach.rather than reach.

3.3. The evidence suggests strongly that an exposure frequency The evidence suggests strongly that an exposure frequency of two within a purchase cycle is an effective level.of two within a purchase cycle is an effective level.

4.4. Beyond three exposures within a brand purchase cycle or Beyond three exposures within a brand purchase cycle or over a period of four or even eight weeks, increasing over a period of four or even eight weeks, increasing frequency continues to build advertising effectiveness at a frequency continues to build advertising effectiveness at a decreasing rate but with no evidence of decline.decreasing rate but with no evidence of decline.

5.5. Although there are general principles with respect to Although there are general principles with respect to frequency of exposure and its relationship to advertising frequency of exposure and its relationship to advertising effectiveness, differential effects by brand are equally effectiveness, differential effects by brand are equally importantimportant

6.6. Nothing we have seen suggests that frequency response Nothing we have seen suggests that frequency response principles or generalizations vary by medium.principles or generalizations vary by medium.

7.7. The data strongly suggest that wearout is not a function of The data strongly suggest that wearout is not a function of too much frequency; it is more of a creative or copy problem.too much frequency; it is more of a creative or copy problem.

Determining Frequency LevelsDetermining Frequency LevelsDetermining Frequency LevelsDetermining Frequency Levels

Marketing FactorsMarketing Factors Brand history: new brands = higher frequenciesBrand history: new brands = higher frequencies Brand share: higher share = lower frequenciesBrand share: higher share = lower frequencies Brand loyalty: higher loyalty = lower frequenciesBrand loyalty: higher loyalty = lower frequencies Purchase/use cycles: short purchase cycle = higher frequenciesPurchase/use cycles: short purchase cycle = higher frequencies Share of voice: More noise = higher frequenciesShare of voice: More noise = higher frequencies

Marketing FactorsMarketing Factors Brand history: new brands = higher frequenciesBrand history: new brands = higher frequencies Brand share: higher share = lower frequenciesBrand share: higher share = lower frequencies Brand loyalty: higher loyalty = lower frequenciesBrand loyalty: higher loyalty = lower frequencies Purchase/use cycles: short purchase cycle = higher frequenciesPurchase/use cycles: short purchase cycle = higher frequencies Share of voice: More noise = higher frequenciesShare of voice: More noise = higher frequencies


Message FactorsMessage Factors Message complexity: complex message = higher frequenciesMessage complexity: complex message = higher frequencies Message uniqueness: unique message = lower frequenciesMessage uniqueness: unique message = lower frequencies Campaign newness: new campaigns = higher frequenciesCampaign newness: new campaigns = higher frequencies Image vs product sell: image sell = higher frequenciesImage vs product sell: image sell = higher frequencies Message variation: single message = lower frequenciesMessage variation: single message = lower frequencies

Message FactorsMessage Factors Message complexity: complex message = higher frequenciesMessage complexity: complex message = higher frequencies Message uniqueness: unique message = lower frequenciesMessage uniqueness: unique message = lower frequencies Campaign newness: new campaigns = higher frequenciesCampaign newness: new campaigns = higher frequencies Image vs product sell: image sell = higher frequenciesImage vs product sell: image sell = higher frequencies Message variation: single message = lower frequenciesMessage variation: single message = lower frequencies

How does this relate to the RMH?


Media FactorsMedia Factors Clutter: more clutter = higher frequenciesClutter: more clutter = higher frequencies Attentiveness: more attentiveness = lower frequenciesAttentiveness: more attentiveness = lower frequencies Scheduling: continuous scheduling = lower frequenciesScheduling: continuous scheduling = lower frequencies

Media FactorsMedia Factors Clutter: more clutter = higher frequenciesClutter: more clutter = higher frequencies Attentiveness: more attentiveness = lower frequenciesAttentiveness: more attentiveness = lower frequencies Scheduling: continuous scheduling = lower frequenciesScheduling: continuous scheduling = lower frequencies

Determining Relative Media Determining Relative Media CostsCosts


Print: Cost per thousand (CPM)Print: Cost per thousand (CPM)Print: Cost per thousand (CPM)Print: Cost per thousand (CPM)

Cost of ad space

Circulation

Cost of ad space

Circulationx 1,000x 1,000

Time Newsweek

Per-page cost $156,000 $144,000

Circulation 4.0 million 3.1 million

Calculation of CPM156,000 x 1,000

4,000,000144,000 x 1,000

3,100,000

CPM $39.00 $46.45



Broadcast: Cost per rating point (CPRP)Broadcast: Cost per rating point (CPRP)Broadcast: Cost per rating point (CPRP)Broadcast: Cost per rating point (CPRP)

Cost of 1 unit of time

Program rating

Cost of 1 unit of time

Program rating

King of Queens Friends

Cost per spot ad

$3,500

$4,000

Rating

11

15

Calculation

$3,500 11

$4,000 15

CPRP

$318.18

$266.67

CautionsCautionsCautionsCautions

Scenario A: Overestimation of EfficiencyScenario A: Overestimation of EfficiencyScenario A: Overestimation of EfficiencyScenario A: Overestimation of Efficiency

Time Newsweek

Per-page cost $156,000 $144,000

Circulation to Target Market

4.0 million2.6 million (65%)

3.1 million2.48 million (80%)

Calculation of CPM156,000 x 1,000

2,600,000144,000 x 1,000

2,480,000

CPM $60.00 $58.06

CautionsCautionsCautionsCautions

Scenario B: Underestimation of EfficiencyScenario B: Underestimation of EfficiencyScenario B: Underestimation of EfficiencyScenario B: Underestimation of Efficiency

Time

Per-page cost

$156,000

Circulation Pass-along rate

4.0 million 3 @ 33%

Calculation of CPM

156,000 x 1,000 4,000,000+3(1,320,000)

CPM

$19.60

media planning establishing frequency goals for an advertising campaign is a mix of art and science...

Documents

media vehicle

media objectives

media planning terms

population percentage

broad media classes

media creative strategy

cola percentage of males

market x