the media mix workshop

The Why’s and How’s of Media Mix

THE WHY'S AND HOW'S OF MEDIA MIX• The OTS problem: Developing comparable crossmedia

measures of ad exposure. The CPM target model.The value of APX in print planning.

• The media-weighting problem. Using attentiveness,involvement and message receptivity as media-specific

values.• Media-mix and campaign effectiveness: What ROI (return on investment)

modeling tells us about mixing-media.• Using modeling to find the price-elasticity crossover points of media effects.

• Cross-Platform and media synergies. Is the sum worth more than theparts?

The Media Planning Process

Media Planning Media

Planning

Marketing SolutionsMarketing Solutions

Media Planning SolutionsMedia Planning Solutions

ObjectivesObjectives StrategiesStrategies

ObjectivesObjectives StrategiesStrategies TacticsTactics

Implementing the Media PlanImplementing the Media PlanBuyingBuying Post Buy AnalysisPost Buy Analysis

Marketing SituationMarketing Situation

NegotiationsNegotiations

VehiclesVehiclesAd PlacementAd Placement

1

2

3

4

Media Strategy

• Essential Parameters of the Plan– Reach– Frequency– Number of Advertising Cycles for the Year– Media categories to use

Trade-Offs Between Basic Parameters of the Media Plan

REACH# of target audience

individuals exposed to theadvertising in an advertising

cycle

BUDGETFrequency

# of exposures per individual target

audience member in an advertising cycle

# of Advertising Cycles

Over the entireplanning period

It is better to sell some people completely than many people not at all.(Rossiter and Percy, 1987,1997)

Media Selection

• Three stages of the media plan implementation

– Media Selection

– Media Vehicle Selection

– Development of the Schedule of Advertising

Insertions in the Vehicles

Media’s Natural Laws

• Recency, Optimizers, and Marketing Mix

Modeling all give same advice

– Adding too much of anything in media brings

lessened response

– This phenomenon is called “diminishing marginal

utility” and affects everything that is done in planning

Diminished Marginal Utility

• Regardless of the strength of a medium, adding dollars will usually

produce a lessened consumer response – diminishing marginal

utility

• The sales effectiveness of a medium relates almost inversely to its

share of the ad budget *

• The more dollars spent, the less response per dollar

• This is why any single medium alone cannot produce the most cost-

effective media plan, and it’s why Media Mix is at the top of every

media planners list

*John Philip Jones. The Ultimate Secrets of Advertising

28.4

48.1

68.079.1

88.5100.0

16.7 33.3 50.0 66.7 83.3 100.0

Extra Reach Is Expensive

% of Schedule’s Total GRPs

% o

f S

ched

ule’

s P

oten

tial R

each

+69%

+41%

+16%+12%

+13%

Media Response Curve

• As dollars increase, the curve starts to flatten

– Until the last dollar produce very little added response

• As reach increases, dollars buy less reach and more frequency

The Media Mix

• Mixing media is a simple way to improve response

• As response starts to weaken, the media planner shifts to the next medium

Media Dollars

Res

pons

e

Television

Online

Newspapers

Build Reach More Cost-Effectively Minimizing Duplication

• In the media mix, television starts building reach cost-effectively

• Adding a second medium will build more reach for less money

• It will duplicate television less than television will duplicate itself

CPM vs. Cost Per Incremental Reach Point

$ Investment

Rea

ch %

Television

Online

Newspapers

1. After a certain reach point, each additional media dollar achieves less consumer response and build reach at a much slower, and costlier rate

2. When the reach of one medium starts to flatten in relation to the dollar investment, an effective campaign incorporates another medium, building reach in a cost efficient manner

Media Mix Decisions

• Which media should the advertiser use?

– Media mix recommendations are developed by considering a

budget-conscious intersection between media objectives and the

properties of the various potential media vehicles

• Planners must analyze how each media vehicle provides a cost-

effective contribution to attaining the objectives, and then they select

the combination of vehicles that best attain all of the objectives.

Media Mix Decisions

• When making media mix decisions, comprehensive analysis to the whole spectrum of media is considered; not just to traditional media vehicles such as TV, radio, and print

– Review all the opportunities that consumers have for contact with the brand

• Non-traditional brand contact opportunities such as online advertising, sweepstakes, sponsorships, product placements, direct mail, mobile phones, blogs, and podcasts

• The scale and situations of media use are especially important when evaluating suitable brand contact opportunities

Mix Strategy: Media Concentration vs. Media

DispersionFirst Media Mix Decision

Media DispersionMedia Concentration vs.

Mix Strategy: Media Concentration

Media Concentration

• Fewer media categories and

greater spending per category

2. Higher frequency and repetition

within that media category

3. Used when there is a concern

to share space with competing

brands, leading to confusion

among consumers

4. High SOI/SOV.

Dominant advertiser

A concentrated strategy is also an

"all-eggs-in-one-basket" strategy. If the

particular ad is not well received or the

particular media category only reaches

a fraction of the intended target

audience, then it will perform poorly

Mix Strategy: Media Dispersion

Media Dispersion

1. Multiple media categories: TV,

Radio, Print, Internet, OOH

2. There is knowledge that no

single media outlet will reach

sufficient percentage of the

target audience

3. Brings reinforcement: consumers

who see multiple ads in multiple

media for a given brand may be

more likely to buy

A concentrated approach using only ads on the Internet might reach only30% of the target consumers becausesome consumers don't use the Internet. Similarly, a concentrated approach using magazines might reach only 30% of the target audience, because notevery target customer reads selectedmagazines. But a dispersed approachthat advertises in magazines as well as on web sites might reach 50% of the target audience

Mix Strategy: Media Concentration vs. Media

DispersionHypothetical Media Mix and Share of Investment for 3 Competing Brands

Competing Brand Television Magazine Direct Mail Internet Total Spend

A $400,000 $250,000 $200,000 $300,000 $1,150,000

B $600,000 $250,000 $0 $0 $850,000

C $0 $0 $0 $600,000 $600, 000

Total Spend $1,000,000 $500,000 $200,000 $900,000 $2,600,000

Brands' SOI in Each Media Category

A 40% 50% 100% 33% 44%

B 60% 50% 0% 0% 33%

C 0% 0% 0% 67% 23%

Total % 100% 100% 100% 100% 100%

The media concentration approach is often preferable for brands that have a small or moderate media budget but intend to make a great impact.

Selection of Media Vehicles

• Suggested methodology to facilitate the selection of media vehicles

– List the potential vehicle candidates under consideration

– Select several quantitative and qualitative characteristics that are relevant to reach and frequency considerations

• CPM, GRP, Reputation, Added Value, etc...

– Develop a table that lists the vehicle candidates in rows and the characteristics in columns

– Rate each of the characteristics of each vehicle on a scale of 1 to 3 and obtain an average index. The best media vehicles to choose are those with the highest index numbers

Selection of Media Vehicle Based on Quantitative and Qualitative Characteristics

Qn1 Qn2 Qn3 Ql1 Ql2 Ql3 IndexV1 3 2 1 3 1 1 1.8V2 1 2 2 2 2 3 2.0V3 1 3 3 1 1 3 2.0V4 1 1 2 1 2 1 1.3

Media Category Selection

• Whether media concentration or media dispersion is

selected, the media category(ies) are yet to be chosen for

the media plan

– Different media categories suit different media objectives

• Most media options can be classified into three broad

categories:

– Mass Media

– Direct response Media

– Point-of-Purchase Media


• Choice will depend on the media objectives

– To create broad awareness or to remind the largest possible

number of consumers about a brand

• mass media such as television, radio, newspaper and magazine

– To build a relationship with a customer or encourage an

immediate sales response, then:

• direct response media such as direct mail, the Internet and mobile

phone are good choices


• Choice will depend on the media objectives

– Online ads for car insurance such as link directly to the application process to capture the customers right at the time they are interested in the service

– If the strategy is looking to convert shoppers into buyers, then use of point-of-purchase media such as sampling, coupons and price-off promotions is recommended

• All three categories of media (mass, direct response, and point-of-purchase) serve a different role in moving the customer from brand awareness to brand interest to purchase intent to actual purchase and then to re-purchase

– An integrated campaign, can combine different categories such as TV ads to introduce the product, Internet media to provide one-to-one information, and in-store displays to drive sales


• The creative requirements of a media category also affect media mix decisions. Each media category has unique characteristics. For example: – Television offers visual impact that interweaves sight and sound, often within a

narrative storyline.

– Magazines offer high reproduction quality but must grab the consumer with a single static image.

– Direct mail can carry free samples but can require compelling ad copy in the letter and back-end infrastructure for some form of consumer response by return mail, telephone or Internet.

– Rich media ads on the Internet can combine the best of TV-style ads with interactive response via a click through to the brand's own website.

Media planners need to consider which media categories provide the most impact for their particular brand. The costs of developing creative materials specific to each media category can also limit media planners' use of the media dispersion approach

Mainstream Advertising Medium

Brand Recognition

Brand Recall

Low Involvement /Informational

Low Involvement/ Transformational

High Involvement/ Informational

High Involvement/

TransformationalTelevision YES YES YES YES NO YESCable TV YES YES YES YES NO YESRadio NO YES YES Lim (vis) NO Lim (vis)Newspapers Lim (c) YES YES Lim ( c ) YES Lim ( c )Magazines YES Lim(f) YES Lim (f) YES YESOutdoors (Stationary) YES Lim (tf) YES Lim (tf) Lim (tf) YESOutdoors (Mobile) YES Lim (tf) YES Lim (tf) Lim(pt) YESInternet - On Line YES YES YES YES YES YES

YES = the medium is appropriate for the given objective or strategyNO = the medium is not appropriateLim = the medium may be appropriate but entails certain limitations

c = color limitationf = frequency limitationspt = processing time limitationstf = travel frequency limitationsvis = visual limitationsrp = requires previous exposuredm = direct-marketed products onlypc = purchase cycle limitation

Other Communications Objectives:Category need: more space is usually required to present category benefits, so print media are usually required, or TV InfomercialsBrand Purchase intention: hard sell, especially in the form of promotion offer, print or longer commercials are usually required

Brand Awareness Brand Attitude

Advertising Media Selection Based on Brand Awareness and Brand Attitude(Mass Media Advertising or Mainstream Advertising)




High Involvement/ Transformational

Television Television Cable TV TelevisionCable TV Cable TV Newspapers Cable TVNewspapers Newspapers Magazines NewspapersMagazines Sponsorship Direct Response MagazinesStationary Outdoor (Mail, TV, Newspaper, Stationary OutdoorMobile Outdoor and Interactive TV Mobile OutdoorSponsorship or PC Adverting, but Sponsorship

rarely Radio) Direct Response(Mail, TV, Newspaper,and Interactive TV or PC Adverting, butrarely Radio)





Television Television Cable TV TelevisionCable TV Cable TV Newspapers Cable TV

Newspapers Radio RadioSponsorship Newspapers Newspapers

Sponsorship Sponsorship

Primary Media for Achieving Combined Brand Awareness and Brand Attitude Communication Objectives

Brand Recall and the Following Brand Attitude Strategy

Brand Recognition and the Following Brand Attitude Strategy

Prepurchase IMC MediumBrand

RecognitionBrand Recall





PR Lim (f) Lim (f) YES YES YES YESDistribution Outlet (External) Lim(rp) Lim (f) YES YES NO YESSponsorship YES YES YES YES Lim (pt) YESEvent Marketing Lim (rp) Lim (f) YES YES Lim (pt) YESPublicity Lim (vis) Lim (f) YES Lim (vis) YES Lim (vis)Sampling Lim (rp) Lim (f) YES YES YES YESNote: These are delivery media for corporate advertising communications, manufacturer's promotions, and direct marketing promotions

Point-of-Decision IMC Medium

Brand Recognition

Brand Recall





Place-based (internal Lim (rp) NO YES YES Lim (pt) YESFSIs Lim (rp) Lim (f) YES YES YES YESPOP Promotions Lim (rp) NO YES YES Lim(pt) YESTelemarketing NO NO YES Lim (vis) YES Lim (vis)Direct mail Lim (dm) Lim (f) YES YES YES YESDR Television Lim (dm) Lim (f) YES YES YES YESDR Newspaper Lim (dm) Lim (f) YES Lim ( c ) YES Lim( c )DR Magazine Lim (dm) Lim (f) YES YES YES YESDR Radio NO Lim (f) YES Lim (vis) YES Lim (vis)Interactive TV or PC Advertising Lim (dm) Lim (f) YES YES YES YESPostpackaging Lim (pc) Lim (pc) YES YES Lim(pt) YES

YES = the medium is appropriate for the given objective or strategyNO = the medium is not appropriateLim = the medium may be appropriate but entails certain limitations

c = color limitationf = frequency limitationspt = processing time limitationstf = travel frequency limitationsvis = visual limitationsrp = requires previous exposuredm = direct-marketed products onlypc = purchase cycle limitation

Other Communications Objectives:Category need: more space is usually required to present category benefits, so print media are usually required, or TV InfomercialsBrand Purchase intention: hard sell, especially in the form of promotion offer, print or longer commercials are usually required

Prepurchase IMC Media Selection Based on Brand Awareness and Brand Attitude(Media for Adlike Communications and for Promotions)

Point-of-Decision IMC Media Selection Based on Brand Awareness and Brand Attitude

IMC Media Selection

Media Selection Considerations

Secondary media are used for 3 reasons:

1. There might be some significant proportion of the target audience that

the primary medium does not reach or cannot reach at the effective

frequency level

2. There might be one or two communication objectives that can be

attained equally effectively, but at al lower cost. May be used in the

role of boosting particular communication objectives such as

increased brand awareness, maintained brand attitude, or reminded

purchase intentions

3. There may be a timing advantage near or at the point of purchase or

usage, that is, close to the target audience's decision, offered by a

secondary medium

Brand Awareness Recommended Secondary MediaBrand Recognition Newspapers

MagazinesOutdoorFSI (freestanding insert)POP

Brand Recall RadioNewspapers

Brand Attitude Recommended Secondary MediaLow Involvement/Informational Radio

NewspapersMagazinesOutdoorFSI (freestanding insert)POP

Low Involvement/Tranformational Radio with image transferNewspapersMagazinesOutdoorFSI (freestanding insert)Event MarketingPOP

High Involvement/Informational Cable TVNewspapersMagazinesStationary OutdoorFSI (freestanding insert)TelemarketingDirect Response (all DR media)Interactive TV or PC advertising

High Involvement/Transformational Cable TVNewspapersMagazinesOutdoorSponsorshipEvent MarketingFSI (freestanding insert)POPDirect Response (all DR media)Interactive TV or PC advertisingPostpackaging

Communication Effect to be Boosted

Secondary Media to Boost Single Communication Effects for Consumer Advertising(Primary medium is TV)Consumer Advertising

Media Selection for Direct Response Advertising

Nature of Product and target audience Recommended MediaAny product or service sold to a broad or narrow target audience Direct mailProduct or service that is well known and doesn't have to be seen TelephoneProducts or services with broad target audience (no mailing list available) Newspaper

TelevisionProducts or services whose target audience is well defined by an Magazineoccupational or other demographic or psychographic readership or Radiolisternership group Interactive TV or PC advertising (Upper Income)

Popular Inc. Media Mix

MediumNegotiated Media

Mix $ SOI

Planned Media Mix $ SOI

Radio AM 25,365.00$ 0% $23,375.00 0%

Internet 48,950.00$ 0% $48,950.00 0%

Magazines 81,554.00$ 1% $115,356.00 1%

Outdoor 200,202.00$ 1% $277,785.00 2%

Cinema 481,296.72$ 3% $388,753.80 3%

Cable TV 1,042,370.00$ 7% $754,370.00 6%

Radio FM 1,578,317.00$ 11% $1,299,296.40 10%

Local TV 4,231,657.43$ 30% $3,828,094.33 31%

Press 6,345,716.34$ 45% $5,754,218.60 46%

Total 14,035,428.49$ 100% $12,490,199.13 100%

Popular Inc. Detailed Media Mix

Available Flowcharts Newspapers Radio Magazines Outdoors TV CTV Cinema InternetTotal Flowchart

InvestmentsBudgeted Media

InvestmentDifference to Reach Budget

Acceso ETA $27,812.00 $27,812.00 $36,933.64 $9,121.64 % MM 100%

Ahorro Directo $103,277.00 $82,382.00 $96,000.00 $36,000.00 $37,022.00 $354,681.00 $582,769.83 $228,088.83 % MM 29% 23% 27% 10% 10%

Amex Black $128,951.00 $69,080.00 $128,951.00 $165,985.92 $37,034.92 % MM 100%

Commercial $251,520.88 $84,000.00 $57,822.00 $393,342.88 $421,000.00 $27,657.12 % MM 64% 21% 15%

Compromiso Popular $53,700.96 $69,000.00 $122,700.96 $110,000.00 -$12,700.96 % MM 44% 56%

Depósito Directo $59,646.00 $14,750.00 $11,000.00 $85,396.00 $28,103.00 -$57,293.00 % MM 70% 17% 13%

Especial Rafael Hernández $9,391.00 $9,391.00 $9,000.00 -$391.00

% MM 100% Gofree $144,503.00 $30,000.00 $174,503.00 $178,301.12 $3,798.12

% MM 83% 17% Institutional $180,936.50 $50,011.40 $20,925.00 $1,349,226.00 $647,370.00 $351,731.80 $2,600,200.70 $2,930,618.30 $330,417.60

% MM 7% 2% 1% 52% 25% 14%Internet $85,670.00 $5,000.00 $90,670.00 $482,000.00 $391,330.00

% MM 94% 6% IRA $204,242.00 $72,000.00 $20,730.00 $67,000.00 $71,000.00 $434,972.00 $748,775.88 $313,803.88

% MM 47% 17% 5% 15% 16% Multicuenta $256,207.00 $108,000.00 $364,207.00 $240,000.00 -$124,207.00

% MM 70% 30% Popular Auto $254,959.92 $104,503.00 $2,044.00 $66,666.65 $361,506.92 $625,275.73 $263,768.81

% MM 71% 29% 1%Popular Finance $248,960.40 $551,723.50 $800,683.90 $829,613.07 $28,929.17

% MM 31% 69%Popular Mortgage $2,395,169.94 $627,775.00 $3,045.00 $16,830.00 $1,764,144.83 $48,950.00 $4,855,914.77 $5,000,000.00 $144,085.23

% MM 49% 13% 0% 0% 36% 1% Popular Securities $176,236.00 $22,975.00 $199,211.00 $287,156.51 $87,945.51

% MM 88% 12%PREMIA $53,948.00 $7,220.00 $61,168.00 $320,000.00 $258,832.00

% MM 88% 12%Retail Lending $733,895.00 $90,000.00 $7,500.00 $77,800.00 $909,195.00 $979,307.48 $70,112.48

% MM 81% 10% 1% 9%Tarjetas $385,192.00 $130,500.00 $515,692.00 $525,000.00 $9,308.00

% MM 75% 25%Total $5,754,230.77 $1,322,673.63 $115,356.57 $277,785.27 $3,828,096.33 $754,370.51 $388,754.04 $48,950.01 $12,490,199.13 $14,499,840.48 $2,009,641.35

the media mix workshop

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