Media Planningand StrategyMedia Planningand Strategy

Satellite radio stations

2

Satellite radio stations

2

The Traditional U.S. Media Landscape

Broadcast networks (TV

and cable)100

Broadcast networks (TV

and cable)100

TV stations3,510

TV stations3,510

Consumer magazines

5,340

Consumer magazines

5,340

Newspapers (daily and weekly)8,100

Newspapers (daily and weekly)8,100

Radio stations13,898

Publications such as newspapers, magazines, direct mail, outdoor, etc.Publications such as newspapers, magazines, direct mail, outdoor, etc.

The specific carrier within a medium categoryThe specific carrier within a medium category

Number of different audience members exposed at least once in a given time periodNumber of different audience members exposed at least once in a given time period

The potential audience that might receive the message through the vehicleThe potential audience that might receive the message through the vehicle

The number of times the receiver is exposed to the ad/media vehicle in a specific time period

The number of times the receiver is exposed to the ad/media vehicle in a specific time period

The potential audience that might receive the message through the vehicleThe potential audience that might receive the message through the vehicle

Number of different audience members exposed at least once in a given time periodNumber of different audience members exposed at least once in a given time period

The specific carrier within a medium category (i.e. Time Magazine, HGTV, etc.)The specific carrier within a medium category (i.e. Time Magazine, HGTV, etc.)

Publications such as newspapers, magazines, direct mail, outdoor, etc.Publications such as newspapers, magazines, direct mail, outdoor, etc.

Media Terminology

PrintMediaPrintMedia

Media VehicleMedia

Vehicle

ReachReach

CoverageCoverage

FrequencyFrequency

TargetMarket

Proportion

FullMarket

Coverage

PartialMarket

Coverage

CoverageExceeding

Market

Target Audience Coverage

Population excluding target marketTarget marketMedia coverageMedia overexposure

Further Defining Reach

A. Reach of One Program

Total market audience reached

B. Reach of Two Programs

Total market audience reached

C. Duplicated Reach of Both

Total reached with both shows

D. Unduplicated Reach of Both

Total reach less duplicate

Graph of Effective Reach

Target GroupTarget Group

Brand HistoryBrand History

Share of Voice

Share of Voice

Purchase Cycles

Purchase Cycles

Brand LoyaltyBrand

LoyaltyBrand ShareBrand Share

Usage Cycle

Usage Cycle

Purchase Cycles

Purchase Cycles

Share of Voice/Competition

Share of Voice/Competition

Brand HistoryBrand History

Usage Cycle

Usage Cycle

Brand ShareBrand Share

Brand LoyaltyBrand

Loyalty

Marketing Factors Determining Frequency

Marketing Factors

Marketing Factors

Message ComplexityMessage Complexity

Message UniquenessMessage Uniqueness

New Vs. Continuing CampaignsNew Vs. Continuing Campaigns

Image Versus Product SellImage Versus Product Sell

Message VariationMessage Variation

WearoutWearout

Ad Size/LengthAd Size/Length

Wearout ConsiderationsWearout Considerations

Message VariationMessage Variation

Image vs. “Straight” SellImage vs. “Straight” Sell

New vs. Continuing CampaignsNew vs. Continuing Campaigns

Message UniquenessMessage Uniqueness

Message ComplexityMessage Complexity

Message Factors Determining Frequency

Messageor Creative

Factors

Messageor Creative

Factors

Three Scheduling Methods

Continuity

Pulsing

Flighting

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

What are the pros and cons of each method?

Sample Flighting Schedule

ClutterClutter

Number of Media UsedNumber of Media Used

Repeat ExposuresRepeat

Exposures

Editorial Environment

Editorial Environment

Scheduling -continuous vs.

pulse/flight/blast

Scheduling -continuous vs.

pulse/flight/blast

AttentivenessAttentivenessAttentivenessAttentiveness

Number of Media UsedNumber of Media Used

Editorial Environment

Editorial Environment

Repeat Exposures (consumer- generated)

Repeat Exposures (consumer- generated)

ClutterClutter

Media Factors Determining Frequency

Media FactorsMedia

Factors

Market opportunities

Market opportunities Market threatsMarket threats

Availability of media

Availability of media

Changes in media or media

vehicle

Changes in media or media

vehicle

Availability of media

Availability of media

Market threatsMarket threatsMarket opportunities

Market opportunities

Flexibility in Media Planning Strategies

FlexibilityFlexibility

Determining Relative Cost of Media - CPM

Cost to Advertise

CirculationCPM = X 1,000

Cost per thousand (CPM)

Calculating CPM Based on the Target Audience

Ratings

 

Ratings are a measure of Reach

• 110 million (MM) television households in the U.S., approximately equivalent to the total # of households in U.S.

•Neilsen captures ratings data through Peoplemeters, diaries, surveys, etc. and publishes this data • 1 Rating Point = 1% of television households exposed to program = 110 MM x .01 = 1.10 million households exposed (roughly a million)

• Example: 10 million households watch “House”. House’s rating is 10 MM / 110 MM = 9 points

• Caveat: Rating % is always higher than % who viewed advertising

Nielsen’s People Meter

Determining Relative Cost of Media - CPP

CPP =Cost of Advertising

Program Rating

Cost per rating point (CPP)

Gross Rating Points (GRPs)

 

GRPs = Reach x Frequency

• Measure is specifically for television (and sometimes radio) media buys

• Example: Advertising 5 times during a 10-rated program yields a 5 x 10 = 50 GRP media buy.

• GRP as a summary number: does not provide distribution characteristics (i.e. is 100 GRPs = 50 rating x 2 exposures or = 25 rating x 4 exposures?)

• Foote, Cone & Belding study findings• 2,500 GRP buy yields 70% probability of high awareness• 1,000 – 2,500 GRP buy yields 33% probability of high awareness• Less than 1,000 GRP buy yields virtually no awareness

• Effective Rating Points (ERPs): GRPs adjusted for % of target audience that actually sees or ignores the message (i.e. 30% of target audience may “zip” or “zap” the commercial, stop watching, be inattentive, etc.)

Problems with CPM/CPP

What are the three main problems with Relative Cost of Media Measures like CPM and CPP?

•Purely focused on cost per exposure; no focus on results, ROI, engagement, media impact, etc.

•May not account for the effects of time and repetition

•Calculations may use duplicated or unduplicated reach numbers

•No adjustments made for continuity factors (continuity is beneficial!)

Problems with CPM/CPP

SOLUTIONS

•TEMPORAL CPM/CPP T-CPM, T-CPP

•Weighted Impression CPM/CPP WI-CPM, WI-CPP

•Continuity Adjusted CPM/CPP CA-CPM, CA-CPP

Formulas:

T-CPM = [CPM/Ad Exposure Time] / [Sales Time Period]

T-CPP = [CPP/Ad Exposure Time] / [Sales Time Period]

WI-CPM = ([Ad Cost] / [Sum of Weighted Impressions]) x 1,000

CA-CPM = [Ad Cost x (1 + ασ)] / [Weighted Impressions]α = alpha coefficient σ = continuity index (st dev of time differences)