Media Planning & Buying in the 21st Century

CHAPTER 11

Geographic Considerations

Media Planning & Buying in the 21st Century

GEOGRAPHIC MARKETING PHILOSOPHIESGEOGRAPHIC MARKET DEFINITIONS

MARKET ANALYSISNATIONAL VS. LOCAL MEDIA

Agenda

Media Planning & Buying in the 21st Century

Is the U.S. one homogeneous marketor many markets?

How Local Markets Differ from Each Other

Category SalesBrand SalesConsumersTrade SituationMedia Effi-cienciesSize of MarketGrowth RateDemographicsLifestyleCompetition

Media Planning & Buying in the 21st Century

Geographic Marketing Philosophies

Global Desire to have the same brand identity everywhere Same strategy is executed in every market

Market by Market Brand definition should reflect differences in markets Different strategies are executed in every market

Think Global, Act Local A blending of philosophies Have overall strategy Make adjustments in strategy and execution as market

dictates

Geographic Emphasis of Media Plans

Geographic Coverage Area - Before a media plan can be developed, the geography of the plan must be defined in accordance with the brand’s marketing situation, budget realities, and media coverage patterns.May be any mix of any of the following:

- National- Regional- Local markets (Designated Market Areas – DMAs)- MSAs/Metropolitan Areas- Counties- Zip codes

Geographic Market Definitions

Media Planning & Buying in the 21st Century

National = Total U.S.

Regional – Based on Census or Sales

Designated Market Area (DMA) – 210 TV viewing areas in US

Metro Survey Area (MSA) – Metro area within DMA

Retail Trading Area - Area within MSA containing majority of retailers’ customers

Media Planning & Buying in the 21st Century

Designated Market Area

What is a DMA? A geographic area consisting of counties who do the majority

of their viewing to home market TV stations, e.g.,

Oakland County Michigan resides in the Detroit DMA Maricopa County is in the Phoenix DMA

Every county in the US is assigned to a DMA (210 total DMAs)

DMAs typically contain 1-2 metropolitan areas

All viewing to home market stations by people within the DMA and in adjacent DMAs counts as part of station’s total audience

Consumer products companies usually tabulate their business data by DMA

Media Planning & Buying in the 21st Century

Total Survey Area (TSA)

Total Survey Area (TSA) Includes counties outside of a DMA which still watch

some television from the first DMA’s stations

For example, while Flint, MI is a DMA, some of their television viewing is to Detroit television stations

TSAs are important to advertisers interested in total audience within and outside the DMA

TSAs represent wasted audience to adverters only interested in audience within the

The buyer has to decide whether to count audience only from the DMA or total viewing from the TSA

Media Planning & Buying in the 21st Century

Phoenix DMA

DMAMETRO

TSA

Media Planning & Buying in the 21st Century

Retail Trading Area (RTA)

Typical Trading Area

50-80 % Sales

15-20% Sales

Balance

Media Planning & Buying in the 21st Century

Market Analysis

Size of marketBrand sales & shareCompetitor sales & sharesConsumer profile of marketCompetitive activityCategory Development

IndexBrand Development indexMedia EfficiencyDistributionTrade relationships

Setting Geographic Priorities

What’s the basic marketing strategy?

“Fish where the fish are”

(Support current

business)

“Fish where the fish aren’t”

(Market Development

)

Media Planning & Buying in the 21st Century

Brand Development Index

% Brand Sales in Market

% Total U.S. Population in Market x 100

BDI =

Media Planning & Buying in the 21st Century

Category Development Index

% U.S. Product Category Sales in Market

% Total U.S. Population in Marketx 100

CDI =

Media Planning & Buying in the 21st Century

CDI/BDI Calculation

Market % US HH % Category CDI % Brand BDI

A 5.0 10.0 200 2.5 50

B 1.0 1.0 100 1.5 150 C .5 .3 60 .6 120

Media Planning & Buying in the 21st Century

Comparison of Cost Efficiencies

Network Television

Spot Television

Network Radio

Spot Radio

$22,500

$27,000

$9,000

$22,000

Note: spot estimates based on covering 100% of U.S.

CPP