Media Planning and Media Planning and AnalysisAnalysis

Chapter Fourteen

Chapter Fourteen ObjectivesChapter Fourteen Objectives

• Describe the major factors used in segmenting target audiences for media strategy purposes

• Explain the meaning of reach, frequency, gross rating points, target rating points, effective rating points, and other media concepts

• Discuss the logic of the three-exposure hypothesis and its role in media and vehicle selection

Chapter Fourteen ObjectivesChapter Fourteen Objectives

• Describe the use of the efficiency-index procedure for media selection

• Distinguish the differences among three forms of advertising allocation: continuous, pulsed, and flighted schedules

• Explain the principle of recency, or shelf-space model, and implications for allocating advertising expenditures over time

Chapter Fourteen ObjectivesChapter Fourteen Objectives

• Perform cost-per-thousand calculations

• Interpret the output from a computerized media model

Saab 9-5Saab 9-5

• In the late 1990s, Saab introduced a new luxury sedan: the Saab 9-5

• Saab had done little to expand its brand image in U.S.

• Historically it attracted younger customers, but needed the luxury sedan to appeal to families and older customers

Saab 9-5Saab 9-5

A mass-market advertising campaign was undertaken with the following objectives:

1. Generate excitement for new 9-5 model line

2. Increase overall awareness for Saab name

3. Encourage customers to visit dealers and test-drive

4. Retail 11,000 units of 9-5 during introductory year

Saab 9-5Saab 9-5

• Television commercials were run on network TV and cable in May

• A newspaper campaign began earlier in March with ads in USA Today and Wall Street Journal

• Ads also ran yearlong in several automobile magazines

• Internet banner ads were also run throughout the year

Saab 9-5 Media PlanSaab 9-5 Media Plan

• Tactical Plan

Saab 9-5 Magazine AdSaab 9-5 Magazine Ad

• Magazine ad

Saab 9-5 Dealer KitSaab 9-5 Dealer Kit

• Dealer Information Kit

Saab 9-5 Direct Mail uestionnaireSaab 9-5 Direct Mail uestionnaire

• Direct mail questionnaire

Saab 9-5 Direct Mail ResponseSaab 9-5 Direct Mail Response to Questionnaire to Questionnaire

• Response to direct mail questionnaire

Saab 9-5 Dealer LeadsSaab 9-5 Dealer Leads

• Dealer lead information card

Saab 9-5 Dealer Sales LiteratureSaab 9-5 Dealer Sales Literature

• Dealer consumer sales literature

Saab 9-5 Consumer Test Drive Saab 9-5 Consumer Test Drive ContestContest

• Test-drive invitation and contest

Saab 9-5 Consumer Test Drive Saab 9-5 Consumer Test Drive ContestContest

• Contest entry card

1-800-COLLECT Media Strategy1-800-COLLECT Media Strategy

• 1-800-Collect media strategy guide

Media OverviewMedia Overview

• Advertisers are placing more emphasis than ever on media planning

• Choosing media & vehicles is the most complicated of all marketing communications decisions

• Aside from specific vehicles in media, the planner has to choose geographical locations and budget distribution over time

The Media-Planning ProcessThe Media-Planning Process

Media planning

Involves the process of designing a

scheduling plan that shows how

advertising time and space will

contribute to the achievement of

marketing objectives

Overview for the Media Planning Overview for the Media Planning ProcessProcess

Advertising Strategy

Advertising

Objectives

AdvertisingBudget

MessageStrategy

MediaStrategy

Media Strategy

• Audience Selection• Objective Specification• Media and Vehicle• Media Buying

Marketing Strategy

The Media-Planning ProcessThe Media-Planning Process

As shown in the figure, media planning involves coordination the coordination of three levels of strategy formulations:

• Marketing Strategy

• Advertising Strategy

• Media Strategy

The Media-Planning ProcessThe Media-Planning Process

Marketing Strategy:

Provides impetus and direction for choice of both advertising and media strategies

Advertising Strategy:

Involves advertising budgets, objectives and message and media strategies

– extends from overall marketing strategy

4. Buying media

The Media-Planning ProcessThe Media-Planning Process

1. Selecting the target audience

2. Specifying media objectives

3. Selecting media categories and

vehicles

Selecting the Target AudienceSelecting the Target Audience

Four major factors

(1) Buyographics

(4) Lifestyle/psychographics

(2) Geographic

(3) Demographic

Specifying Media ObjectivesSpecifying Media Objectives

1. What proportion of the population should be reached with advertising message during specified period (reach)

2. How frequently should audience be exposed to message during this period (frequency)

3. How much total advertising is needed to accomplish reach and frequency objectives (weight)

Specifying Media ObjectivesSpecifying Media Objectives

4. How should the advertising budget be allocated over time (continuity)

5. How close to the time of purchase should the target audience be exposed to the advertising message (recency)

6. What is the most economically justifiable way to accomplish objectives (cost)

ReachReach

Percentage of target audience that is

exposed to an advertisement, at least

once, during a certain time frame

(usually four weeks)

ReachReach

• Reach represents the percentage of target customers who have an opportunity to see the advertisers message.

• Other terms used by Media Planners to describe reach:

• 1+ (read “one-plus”)• net coverage• unduplicated audience• cumulative audience ( or “cume”)

Factors Determining the ReachFactors Determining the Reach

• More people are reached when a media schedule uses multiple media

• The number and diversity of media vehicles used

• By diversifying the day parts

FrequencyFrequency

Average number of times

an advertisement reaches

the target audience in a

four-week period

Market Factors/Frequency LevelsMarket Factors/Frequency Levels

• Brand HistoryBrand History NewNew High High• Brand ShareBrand Share HighHigh Low Low• Brand LoyaltyBrand Loyalty HighHigh Low Low• Purchase CyclePurchase Cycle Short Short High High• Usage CycleUsage Cycle ShortShort High High• Share of VoiceShare of Voice HighHigh High High

Market Factor TypeMarket Factor Type Frequency Frequency

Message Creative Message Creative Factors/Frequency LevelsFactors/Frequency Levels

• Message ComplexityMessage Complexity SimpleSimple LowLow• Message UniquenessMessage Uniqueness UniqueUnique LowLow• NewnessNewness NewNew HighHigh• Image FactorsImage Factors ImageImage HighHigh• Message variationMessage variation LittleLittle LowLow

Message/Creative Factor TypeMessage/Creative Factor Type Frequency Frequency

Media Factors/Frequency LevelsMedia Factors/Frequency Levels

• ClutterClutter highhigh HighHigh• Editorial NatureEditorial Nature ConsistentConsistent LowLow• AttentivenessAttentiveness HighHigh LowLow• SchedulingScheduling ContinuousContinuous LowLow• Number of MediaNumber of Media a Lota Lot LowLow

Media Factor Type FrequencyMedia Factor Type Frequency

WeightWeight

How much advertising volume is required to accomplish advertising objectives

Three weight metrics:

• Gross ratings

• Target ratings

• Effective ratings

WeightWeight

Gross rating points, or GRPs, are

an indicator of the amount of gross

weight that a particular advertising

schedule is capable of delivering

GRPs=Reach(R) X Frequency(F)

Determining GRPs in PracticeDetermining GRPs in Practice

• GRPs are the sum of all vehicle ratings in a media schedule

• Rating: proportion of the target audience presumed to be exposed to a single occurrence of an advertising vehicle in which the advertiser’s brand is advertised

Determining GRPs in PracticeDetermining GRPs in Practice

• 100 GRPs could mean:100 GRPs could mean:

100 % exposed once100 % exposed once

50 % exposed twice50 % exposed twice

25% exposed four times25% exposed four times

etc.etc.

WeightWeight

Target Rating Points (TRPs)

Adjust a vehicle’s rating to reflect just those individuals who match the advertiser’s target audience

WeightWeight

Effective Rating Points (ERPs)

• Effective reach

• Effective frequency

The Concept of ERPsThe Concept of ERPs

• How often the target audience have an opportunity to be exposed?

• Effective reach is based on the idea that an advertising schedule is effective only if it does not reach members of target audience too few or too many times

How Many Exposures are Needed?How Many Exposures are Needed?

Three-Exposure Hypothesis

The minimum number of exposures

needed for advertising to be effective

is three

How Many Exposures are Needed?How Many Exposures are Needed?

The Efficiency-Index Procedure

Media schedule that generates the

most exposure value per GRP

Efficiency Index ProcedureEfficiency Index Procedure

Exposure Value

Exposure Distribution

Total Exposure Value

Index of Exposure Efficiency

Effective Reach in Advertising PracticeEffective Reach in Advertising Practice

• 3-10 exposures during a media-planning period (typically 4 weeks)

• Using multiple media

• Subjective factors must be considered

ContinuityContinuity

How advertising is allocated during

the course of an advertising

campaign : how should the media

budget be distributed?

ContinuityContinuity

• Continuous schedule

• Pulsing

• Flighting

Continuous, Pulsing, and Flighting Continuous, Pulsing, and Flighting SchedulesSchedules

0

200

400

600

J F M A M J J A S O N D

Continuous Pulsing Flighting

Advertising Schedules

Ad

$ (

in t

ho

usa

nd

s)

(months)

Recency PlanningRecency Planning

(1)Consumers’ first exposure to an advertisement is the most powerful

(2)Advertising primary role is to influence brand choice

(2) Achieving a high level of weekly reach for a brand should be emphasized over acquiring heavy frequency

Optimizing Weekly ReachOptimizing Weekly Reach

• Advertising teaches consumers

• Influence brand selection

• Messages are most effective when close to

purchase time

• Cost-Effectiveness of first exposure is greater

than subsequent

• Allocate budget to reach consumers often

• Reach target audience continuously rather than sporadically

Toward ReconciliationToward Reconciliation

Illustration of

advertising’s

“Chance Encounter”

and the value of

achieving reach

Cost ConsiderationsCost Considerations

The cost of reaching 1,000 members of

the target audience, excluding those

people who fall outside the target market

Cost considerationsCost considerations

Cost per Thousand (CPM)

Target Market (TM)

CPM= Cost of ad # of contacts (expressed in thousands)

CPM-TM= Cost of ad # of TM contacts

(expressed in thousands)

Cost ConsiderationsCost Considerations

• Measures of cost efficiency, not of effectiveness

• Lack of comparability across media

• Misused unless vehicles within a particular medium are compared on the same basis

TradeoffsTradeoffs

• Tradeoff must be made because media planners operate under the constraint of fixed advertising budget

Media Planning SoftwareMedia Planning Software

ADplus

1. User develops a media database

2. User selects criterion for schedule optimization

3. User specifies constraints

4. ADplus seeks out the optimum media schedule

Diet Dr. Pepper CampaignDiet Dr. Pepper Campaign

Market Situation

• Sluggish category growth

• Growth of new-age beverages

• Price sensitive

• Lack of bottler attention and focus

• Inadequate distribution

• Greater spending by major competitors

Media StrategyMedia Strategy

Media plan for

Diet Dr. Pepper

Media Plan for Diet Dr. PepperMedia Plan for Diet Dr. Pepper

Media plan for Diet Dr. Pepper

(page 2)

Campaign Target and ObjectivesCampaign Target and Objectives

• Increase sales by 4% and improve growth rate to 1.5 times the diet soda category

• Heighten consumer knowledge

• Differentiate product

ResultsResults

• Sales grew by 6.6%

• Consumer brand ratings of Diet Dr. Pepper surpassed Diet Coke and Diet Pepsi in several key areas