morgan & co media planning mix

© 2013 morgan & co | confidential

The Right Media Mix

And Risks of Getting It Wrong

June 27, 2013


Half the money I spend on advertising is wasted; the trouble is I don’t know which half.

- John Wanamaker


Media Landscape


What is “media”?


$297,981,778Louisiana Television Spending in 2011

U.S. Major Media Ad Spending, by Media, 2009-2015billions

2009 2010 2011 2012 2013 2014 2015TV $53.8 $59.0 $60.5 $65.0 $65.0 $67.0 $68.0 Internet $22.7 $25.8 $28.5 $32.6 $36.0 $40.5 $44.5 Newspapers $24.8 $22.8 $21.4 $20.7 $20.2 $20.0 $19.8 Radio $14.3 $15.3 $15.7 $16.4 $16.7 $17.1 $17.2 Directories $10.3 $9.3 $8.2 $7.3 $6.5 $5.7 $5.0 Magazines $15.5 $14.7 $13.9 $13.2 $12.6 $12.1 $11.6 Outdoor $5.9 $6.1 $6.4 $6.8 $7.1 $7.4 $7.6 Total $147.3 $153.0 $154.6 $162.0 $164.1 $169.8 $173.7


Media Landscape Establishing Goals


Types Of Goals

Establish DifferentiationPromote Services, Location(s)Communicate Values, Awards Awareness, Belief, OpinionLead Generation – Phone Call, Email, FormsLocation TrafficSalesShare Of Voice


Quantifying Goals

Media is about communicating with audiences.To achieve success for any campaign the correct amount of people must act appropriately.

How many people will it take to embrace your organization’s services?


Hospital Client Goal: Fill 100 Beds

Quantify the goal:

Average hospital stay is 3 days

365 days / 3 = 121.66 patients per bed

121 patients x 100 beds = 12,166 people annually

Parish population of 228,000

5.3% of parish must get admitted annually


Client Goal: Fill 500 Seats

Quantify the goal:

500 people are need to attend a VIP event

Direct mail is the preferred tactic

Previous campaigns have netted a 2.5%

response rate

20,000 direct mail pieces should be dropped

(20,000 pieces x 2.5% return = 500 Attendees)


Media Landscape Establishing GoalsUnderstanding Audiences


© 2009 morgan + company | confidential

Not a one size fits all, must break down by life stage – 18-24

Women needing regular checkups– 25-40

Primary segment for pregnancy and family services– 40-50– 50+

Rotate creative based on:Campaign (Maternal Fetal Health, OB/GYN, breast cancer) Seasonality (Breast Cancer Awareness Month, Mommy to Be Expo)Site (BabyCenter for Pre-Natal/Family Service/Pediatrician)

Women’s Services

http://www.facebook.com/album.php?profile=1&id=2318620



By using research tools to identify demographic segments for targeting services, we can see that the audience for digestive disorders has a slight female skew but primarily affects adults over the age of 45 years.

Next step would be to overlay demographic segment with lifestyle statements.

Identifying Demographic Segment

Source: Simmons, Fall 2008, full year

Consulted Gastroenterologist in last 12 months

Ailments: Digestive Disorders

Total Sample 100 100GENDER: MALE 84 75GENDER: FEMALE 115 123AGE: 18 - 24 29 56AGE: 25 - 34 52 84AGE: 45 - 54 123 108AGE: 55 - 64 145 111AGE: 65+ 155 138M18 - 24 12 37F18 - 24 47 76Male 25 - 34 26 51Female 25 - 34 75 114Male 35 - 44 81 83Female 35 - 44 63 90Male 45 - 54 104 87Female 45 - 54 142 130Male 55 - 64 142 81Female 55 - 64 147 141Male 65+ 115 97Female 65+ 187 171


Media Landscape Establishing GoalsUnderstanding AudiencesMedia Mix


Consumers use media channels at varying degrees of intensity and for various reasons.

Its critical to understand the role that each media channel plays within a consumer’s life and life stage.

Daily Time Spent with Media According to U.S.Consumers, 2010-2012hrs:mins 2010 2011 2012TV 5:27 5:06 5:05Internet 2:34 2:56 3:07Radio 1:52 2:00 1:50Video games 0:26 0:39 0:48Newspapers 0:20 0:19 0:18Magazines 0:15 0:14 0:14


Mass reach, product launch, efficiency, visual, influence

Traffic builder, targeted, frequency, promotional

Informational, targeted, graphic impact, influence

Local traffic builder, targeted, promotional, immediacy

Saturation coverage, impact, geographical

Immediacy, targeting, tracking, optimization, flexible, two-way mass medium

Promotional, impact, WOM, sampling

Conversational, engaging, WOM


Broadcast TV Cable TV RadioNational Local National Local National Local

Audience Selectivity Good Good Good Good Good Good

Reach Potential High High Low Low Average Average

Speed Of Audience

AccumulationFast Fast Fast Fast Fast Fast

Geographic Flexibility Poor Good Poor Best Poor Best

Lead Time Needed To Buy Long Shorter Long Shorter Long Shorter

Advertising Exposure Control

Mostly yes Mostly yes Mostly yes Mostly yes Yes Yes

Location At Time Of

Exposure

Mostly at home

Mostly at home

Mostly at home

Mostly at home

Mostly out of home

Mostly out of home


Magazine Newspaper Outdoor Transit Interactive

Audience Selectivity Better Good Poor Poor Good

Reach Potential Average Low High High Average

Speed Of Audience

AccumulationSlow Fast Slow Slow Good

Geographic Flexibility Good Good Best Best Good

Lead Time Needed To Buy Long Short Long Long Shorter

Advertising Exposure Control No No No No Yes

Location At Time Of Exposure

Primarily in home; heavy out of home

In home and out of home

Out of home

Out of home

In home and out of home


Reach and Frequency

REACH: The percent of different people or households exposed to a specific media schedule within a given period of time, expressed as a percentage

An unduplicated or net audience

Can be used to refer to a single media property or a media schedule

FREQUENCY: The average number of times a target audience or household is reached by a media schedule

Industry average for planning is a minimum of 3x average frequency


It gives you a sense of how much media delivery will be generated

If your brand has something new today or is using a media class for the first time, reach should be emphasized

Emphasize frequency if your product competes in a highly competitive market or is purchased frequently

Reach & Frequency can be used to compare alternatives within a media mix and judge different combinations of media forms

Underlying assumptions:

The more often people are exposed, the more likely they are to learn and retain information

Too many exposures can bore, annoy or have no incremental increase in learning

The more time between exposures, the more likely they are to forget what they learned

Reach and Frequency


Share of Voice: the amount of spending in a market in a categoryCan be defined by brand, product set, etc.

When planning for a campaign in a highly competitive arena, you need to analyze what the competition is doing.

If you have sales figures among the competitive set, you can analyze SOV (Share of Voice) versus SOM (Share of Market)

Start with requesting competitive spending reportsGauge if you are running sufficient levels, what your share of voice is in the market and what is needed to be to “shout louder” You might be able to request competitive spending by products, by month, by quarter, by tactic, by market, etc.

Share of Voice – Competitive Analysis


Continuity:- Relatively low media weight - Continuous (or near continuous)

on-air presence- Typical for recency approach

Flighting:- High media weights- Short bursts- Typical for frequency optimization

Pulsing:- Combines the advantages of

flighting and continuity

Other strategies:- Others are possible, choice

depends on objectives and given situation

Scheduling Strategies


Media Landscape Establishing GoalsUnderstanding AudiencesMedia MixTracking and Measuring


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Media Landscape Establishing GoalsUnderstanding AudiencesMedia MixTracking and MeasuringRisks of Getting It Wrong


Potential shakeup in healthcare category ad spending and noise due to Obama Care

4,996,074LA’s population in 2020

(+9.95%)

Healthcare is one of the fastest growing verticals for online

advertising


The rise in “neighborhood medical centers” will increase pressure on the current hospital business models and impact consumer perceptions and behavior.

A growing Louisiana will continue to need healthcare solutions, and will turn to someone.

The saturation of information, opinions and referral options on the internet (I.E.: WebMD, Social Media, Blogs) will continue to shape consumer’s decision making process.


Will they be turning to your organization for that solution?

A misaligned media mix is more than wasted money.

It’s a missed opportunity to capture a new customer. Or continue to build experiences with an existing customers.

Getting the media mix wrong is lost business that you may never get back.


Media Landscape Establishing GoalsUnderstanding AudiencesMedia MixTracking and MeasuringRisks of Getting It WrongParting Words


Establish quantifiable goalsFind your audience

Understand their communication habits

Own a media channel

Utilize unique tactics

Track and measure

Optimize against goals


Thank you

www.morganandco.comwww.facebook.com/MorganAndCoMedia

http://www.morganandco.com/

morgan & co media planning mix

Business

media landscape

media channels

home heavy

quantifying goals media

audiences media mix

right media mix

specific media schedule

media channel plays