adman lecture 10

Advertising ManagementLecture 10: Media Planning Strategy

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Outline

Developing the Media Plan Market Analysis Establishing media objectives Media Strategy Development and

Implementation Evaluation and follow-up

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Some Basic Concepts

Media Planning the series of decisions involved in delivering the

promotional message to the prospective purchasers and/or users of the product or brand.

requires development of specific media objectives and specific media strategies (plans of action) designed to attain these objectives.

Medium the general category of available delivery systems,

which includes broadcast media (like TV and radio), print media (like newspapers and magazines), direct mail, outdoor advertising, and other support media.

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Some Basic Concepts

Media Vehicle The specific carrier within a medium

category. Reach

a measure of the number of different audience members exposed at least once to a media vehicle in a given period of time.

Coverage refers to the potential audience that might

receive the message through a vehicle. Frequency

the number of times the receiver is exposed to the media vehicle in a specified period.

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Problems in Media Planning

Insufficient information Inconsistent terminologies Times pressures Difficulty measuring effectiveness

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Developing the Media Plan

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Developing the Media Plan

Market Analysis and Target Market Identification To whom shall we advertise?

Market research data Index number:

An index number over 100 means use of the product is proportionately greater in that segment than in one that is average (100) or less than 100.

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Developing the Media Plan

Market Analysis and Target Market Identification What internal and external factors are

operating? Internal factors may involve the size of the media

budget, managerial and administrative capabilities, or the organization of the agency.

External factors may include the economy (the rising costs of media), changes in technology (the availability of new media), competitive factors, and the like.

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Organizing the media buying department

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Developing the Media Plan

Market Analysis and Target Market Identification Where to promote?

Using indexes to determine where to promote Survey of Buying Power Index from market

research Brand Development Index

Category Development Index (CDI)

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Calculating BDI

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Using CDI and BDI to determine market potential

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Using BDI and CDI Indexes

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Developing the Media Plan

Establishing Media Objectives Developing and Implementing Media

Strategies The Media Mix Target Market coverage

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Developing the Media Plan

Establishing Media Objectives Developing and Implementing Media

Strategies Geographic Coverage Scheduling

Continuity: refers to a continuous pattern of advertising, which may mean every day, every week, or every month. The key is that a regular (continuous) pattern is developed without gaps or nonadvertising periods. Such strategies might be used for advertising for food products, laundry detergents, or other products consumed on an ongoing basis without regard for seasonality.

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Developing the Media Plan

Developing and Implementing Media Strategies Scheduling

Flighting: employs a less regular schedule, with intermittent periods of advertising and non-advertising.

Pulsing: actually a combination of the first two methods. Continuity is maintained, but at certain times promotional efforts are stepped up.

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Promotional Scheduling

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Figure 13-8: An Example of a Media Schedule

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Developing the Media Plan

Developing and Implementing Media Strategies Reach vs. Frequency

Establishing reach and frequency objectives

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Developing the Media Plan

Developing and Implementing Media Strategies Reach vs. Frequency

Using Gross Rating Points (GRPs): A summary measure that combines the program rating and the average number of times the home is reached during this period (frequency of exposure) GRP = Reach x Frequency

Target Rating Points (TRPs): refer to the number of people in the primary target audience the media buy will reach—and the number of times. Unlike GRP, TRP does not include waste coverage

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Developing the Media Plan

Developing and Implementing Media Strategies Reach vs. Frequency

Determining Effective Reach: represents the percentage of a vehicle’s audience reached at each effective frequency increment. This concept is based on the assumption that one exposure to an ad may not be enough to convey the desired message. Average frequency: the average number of

times the target audience reached by a media schedule is exposed to the vehicle over a specified period.

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Factors important in determining frequency levels

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Factors important in determining frequency levels

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Factors important in determining frequency levels

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Developing the Media Plan

Developing and Implementing Media Strategies Creative Aspects and Mood Flexibility

1. Market opportunities2. Market threats3. Availability of media4. Changes in media or media vehicles

Budget considerations Absolute costs of the medium or vehicle is the

actual total cost required to place the message. Relative costs refers to the relationship between the

price paid for advertising time or space and the size of the audience delivered; it is used to compare media vehicles.

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Developing the Media Plan

Developing and Implementing Media Strategies Budget considerations

Determining the relative costs of media Cost per thousand (CPM)

Cost per ratings point (CPRP)

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Developing the Media Plan

Developing and Implementing Media Strategies Budget considerations

Determining the relative costs of media Daily Inch Rate: For newspapers, cost

effectiveness is based on the daily inch rate, which is the cost per column inch of the paper.

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Comparing various media

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Sample Computation (CPM)

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Sample Computation (CPRP)

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Sample Computation (Daily Inch Rate)

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Developing the Media Plan

Evaluation and follow-up

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Media Characteristics

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Media Characteristics

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Print Media

Newspapers Formats and Features:

Broadsheets Tabloids Content divided by topic Ad space is sold per column inch (a space that is one

column wide and one inch tall) (Ex. If column is 4 columns wide and 10 inches tall-40 column inches).

Coverage & audience measurement: circulation and readers per copy (RPC)

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Print Media…Cont’d

Newspapers Classified ads: small-space, words-only ads presented in a

clearly labeled section with no surrounding editorial content. (Classified display ads: includes graphics and larger sizes of type)

Display ads: ads that generally contain more graphics and white space that copy and appear next to editorial content.

Supplement inserts: inserts that are preprinted by an advertiser and enclosed with the newspaper

Free-standing inserts: supplements that contain ads, most with coupons, for a variety of national brands.

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Print Media…Cont’d

Magazines Classification:

Frequency of distribution (weekly, monthly, quarterly) Type of audience (consumer, business, trade and

professional) Type of distribution:

Paid-circulation publications-magazines that sell subscriptions

Controlled-circulation publications-trade, industrial, and organizational magazines that are distributed free to those working in a given subject area or affiliated with a given organization

Higher pass-along rate or RPC

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Print Media…Cont’d

Magazines Gatefolds: two or more oversize pages that fold-out

from the magazine Tip-ins: Pre-printed ads that are bound or glued into

the magazine but are printed on heavier paper than the rest of the magazine.

Business Reply Cards (BRCs): postcard-sized ads that are (a) slipped between the pages (so they easily fall out when the magazine is read), (b) tipped into the binding so they are easily seen but held in place, or (c) stuck onto an ad.

Pop-up ads: three-dimensional ads that stand up when the magazine is opened to the page on which they appear.

Scent strips: patches that readers can scratch or pull off to elicit a smell (used for perfumes, air fresheners, and foods).

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Print Media…Cont’d

Magazines Ad space sold in portions of a page-

quarter-, half-, and full-age ads, as well as double-page spreads (which are ads printed across two facing pages).

Bleed ads: ads with graphics that go to the edge of the page.

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Broadcast Media…Cont’d

Radio Image transfer: a process by which members of a

target audience exposed to the sights and sounds of a brand’s TV message when they are exposed to a similar soundtrack on radio.

Daypart: block of time identified by a station for the purpose of setting ad rates (6-10AM, 10AM-3PM, 3-7PM, 7PM-Midnight, Midnight-6AM)

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Broadcast Media…Cont’d

TV Infomercials: 30-minute commercial “program” that

demonstrates a product, presents testimonials from satisfued users, and offers viewers one or more ways to buy the product direct (toll-free number, website address, mailing address).

Interactive TV: the convergence of computers, television, and the internet

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TV Network and Syndication Distribution

Advertiser

a. Network

CommercialsNetworkProducer Localstation

Advertiser

b. Syndication

CommercialsProducer Localstation

Programming

Programming

Programming

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Out-of-Home Media

Out-of-home Billboards or outdoor boards Theater and video ads Product placement in movies Aerial advertising Electronic kiosks Ads in elevators or bathroom stalls Banner displays on ATM Chalk and stencil sidewalk messages Placards on shopping carts

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Out-of-Home Media…Cont’d

Out-of-home Bulletins: 14x48 ft; either painted or printed panels;

usually create for a local marketer in the outdoor company’s shop and then assembled on the billboard structure.

30-sheet posters: 12x25 ft; printed on large sheets in multiple copies and then distributed to a local outdoor companies, which mount the sheets on the outdoor board.

8-shweet panels (also called junior panels): 5x11 ft; good with pedestrian traffic; often used by food-product manufacturers as a reminder near a grocery store.

Spectaculars: nonstandard; used in busy metro areas such as New York, Hong Kong, etc.; electronic signs with movement, color, and flashing lights designed to grab attention in high-traffic areas.

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Out-of-Home Media…Cont’d

Cinema and Video Promotional video networks: companies

that use videos or satellite transmission to a distribute programs and commercial messages.

Nontraditional Media Guerilla marketing: a marketing

approach that reaches people in unconventional ways-in the streets or in other unexpected places.

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Out-of-Home Media…Cont’d

Product Placement Paid verbal or visual brand exposure in

entertainment programming

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Transit Advertising

Truck Ads Bus Wraps

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Internet Advertising

Banner Ads Content Sponsorships Email Ads Websites

The End