RUNNING HEAD: CLASSPASS IMC AND MEDIA PLAN 1

Integrated Marketing Communications & Media Plan

December 16, 2020

Group C / 2

Prepared By: Shelby Klick, Olivia Snyder, Tristen Thomas

Eastern Michigan University

IMC 605 & IMC 606: Creative Message Strategy / Multi Channel Media

Professor Radding & Professor Koschmann

CLASSPASS IMC AND MEDIA PLAN 2

Table of Contents

Executive Summary 2 ClassPass Background 4

Creative Strategy 5 Campaign Overview 5 Target Audience & Psychographics 6 Campaign Strategy 7 Marketing Tactics 9 Measurement 9 Budget 10

Media Plan 10 Plan Introduction 10 Media Objectives 10 Media Plan Strategy & Vehicles 10 Media Timeline, Schedule & Geographic Considerations 17 Budget Allocations & Media Scenarios 17 Media Flight Plan 21 Media Plan Justification & Outcomes 21

References 23

Appendices 26 Appendix A 26 Appendix B 27

Executive Summary

ClassPass, a fitness streaming service connecting users to thousands of boutique fitness studios through a single membership is striving to reach its target audience more

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effectively. The following integrated marketing communications and media plan has been created to outline the strategies, tactics, and mediums put in place to help accomplish our specific objectives. Furthermore, ClassPass will be better positioned to increase brand awareness, brand engagement and overall membership subscriptions. The COVID-19 pandemic has taken a toll on the fitness industry as a whole. It is imperative that ClassPass is equipped with the necessary tools to succeed in these challenging times. This plan will prove to have a long-term positive impact on current and future business.

ClassPass competes in a highly fragmented and competitive fitness market. The brand establishes itself by providing the consumer pure autonomy of when, where and how they choose to workout. By effectively combining connection and control, ClassPass sets itself apart from the competition. An optimistic and upbeat demeanor will help set the tone for a team centered approach with a strong focus on relationship building and connection. By establishing an all encompassing marketing mix consisting of traditional and non traditional media, ClassPass has the ability to effectively meet their target market of suburban women, primarily in the 25-44 year old age bracket.

Given the specific media budget allocations and advertising timeline, this outlined plan is designed to target current and potential ClassPass customers during key times throughout the year. Advertising will remain constant throughout all 12 months, however, concentrated efforts will be placed during prime advertising months for the fitness industry (in the New Year and during the summer months). Pursuing this media schedule will allow for an emphasis on those looking to get in shape, as well as ample opportunity for flexible workout options that users are actively searching for during this unprecedented time.

Overview ClassPass is a mobile app that allows users the ability to take classes at multiple health clubs without being a member of each, by paying a monthly subscription fee to ClassPass. The company has also recently rolled out a streaming service that provides access (via paid subscription) to livestream workout classes from a variety of top fitness centers around the world and access to free on-demand ClassPass-exclusive workout Videos (“Work Out,” n.d.).

ClassPass was originally created as an app to navigate the hardships of booking fitness classes in bustling cities (“Work Out,” n.d.). It has now evolved into a service that is still rooted in physical fitness but has become extremely multifaceted. Whether it's bringing together a community of enthusiasts, helping people find the activities that make their true selves come alive, or supporting small businesses and studios across the globe, ClassPass has created an opportunity to provide any consumer’s version of the perfect workout to them. ClassPass users purchase credits through the ClassPass app that can be used for classes at boutique fitness studios in their local area, or live-streamed classes from the world’s top gyms. This system allows users to take classes at several gyms without having to purchase a membership at each gym. Even better, just by signing up for a free ClassPass account, users have access to free

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ClassPass-exclusive on-demand workout videos without having to purchase any subscription whatsoever (“Work Out,” n.d.). ClassPass users are both the end-customer and consumer.

ClassPass Background The story of ClassPass begins with an ambitious young woman in the congested city of New York struggling to book a dance class. The Big Apple is always two things -- busy and booked. That statement certainly applied to the boutique fitness studios around the city. They were all first come, first serve, making it inconvenient and downright difficult to book classes in advance. These struggles were the driving force in the creation of ClassPass when Payal Kadakia and Mary Biggins started the company in 2012. Ultimately, what Payal and Biggins created was an app that could assist users in booking classes in multiple fitness studios at discounted prices.

The timing to embark on such a business was perfect because in 2015, one third of the $25.3 billion dollar fitness industry came from specialty boutique fitness studios (Rahmouni, 2017) Users have a vast number of classes at their fingertips through the ClassPass app. Most importantly, their access to these classes travels along with them. ClassPass has become a force in the fitness industry by offering consumers variety and control. The brand continues to rapidly grow. In early 2020, ClassPass completed a round of Series E funding that catapulted the 7-year-old company to a $1 billion valuation (DiTrolio, 2020).

Company Situation Due to the COVID-19 global pandemic, the fitness industry has been forced to endure quite a bit of change. ClassPass has taken significant losses while battling the devastating effects of the pandemic. “In the middle of March 2020, COVID-19-related shutdowns plus stay-at-home orders forced gyms and studios to pivot to an online service delivery model literally overnight” writes Prill (Prill, 2020). “A staggering 95% of ClassPass, Inc.’s revenue evaporated in April, which led the company to reduce its workforce by 50%” (Prill, 2020). ClassPass has remained diligent in finding new, flexible workout options to stay afloat. ClassPass users can now live-stream classes from their favorite fitness studios or choose from a library of free, on-demand workouts. Although faced with significant challenges this year, ClassPass has proven to be a dynamic brand by shifting its business model to reflect this hardship.

Brand Promise ClassPass has made their “why” well-known to users from its inception. ClassPass understands the difficulty of maintaining a healthy lifestyle in today’s fast-paced world. With this being said, ClassPass aims to challenge fitness industry norms in all they do so that users can maintain their wellness without a strong strain on their wallets or schedules. ClassPass allows for full control over your workout regimen. It’s service is user-friendly, customizable, and affordable. This is what users can expect from ClassPass when they sign up, because this is what ClassPass promises.

Brand Essence

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“A brand’s essence is the brand’s promise expressed in the simplest, most focused terms” (Landa, 2016). Understanding a brand’s essence is a crucial piece of the marketing puzzle because it represents the fundamental customer need. “For example, Nike = can-do attitude and Disney = family fun” (Landa, 2016).

Understanding ClassPass’ brand essence is quite simple because a consistent message is communicated across nearly all of its marketing communications: ClassPass users have full control over their health and wellness routine. ClassPass users control where they work out, when they workout, who they workout with, and how much they pay to workout. With the ability to choose from over 30,000 studios worldwide, through both in-person and virtual classes, ClassPass puts the user in control of where they work out. Lastly, ClassPass runs on a credit- based system where users can select the number of credits they want to purchase each month. Classes vary in number of credits and users can select to only attend classes within their credit price range, giving them control over how much they pay to workout. Based on these factors, ClassPass’ brand essence clearly represents the user’s ability to have full control over fitness .

Creative Strategy

Campaign Overview The inspiration for this campaign came from the devastating impact that COVID-19 had on human togetherness and connection. Due to social distancing, many gyms were forced to shut their doors at one point or another throughout the pandemic. Because of this, gym goers lost the sense of connection that once fueled their workouts. Gym buddies have become a thing of the past, and ClassPass is here to change that.

Campaign Theme 2020 has been a tough year. We have proven to be stronger and more resilient than we ever imagined possible. We have adapted our lifestyles, relationships, and habits. Although most of the time we are not enjoying each other’s company in-person, our connections with one another are more meaningful now than ever before. ClassPass is a tool to help you grow these connections in a time when it is easy to feel disconnected.

Campaign Promise ClassPass offers an abundance of fitness options to its users, but also uses exercise to encourage social interaction amongst one another.

Creative Elements and Support ● Feature social media advertisements highlighting streamable workouts

and outdoor fitness classes ● Display testimonials from real life satisfied ClassPass users

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● Utilize brand elements such as the company slogan “ ClassPass. Sweat, connect….together,” the brand logo, URL, and all ClassPass imagery that relates to the campaign.

Tone and Manner The campaign will take a very optimistic, team oriented approach. It will be meant to engage consumers that think the pandemic has ruined their opportunities to enjoy ClassPass. It will also empower people that have lost their will to stay active after the various stay at home orders. ClassPass will be identified as the solution to staying active, and staying connected to loved ones while social distancing.

Target Audience & Psychographics Females 25-45 years old, living in large metropolitan or wealthy suburban metropolitan areas with populations in the millions or hundreds of thousands make up the target audience (Ramouni, 2017). This group of people have the means to spend slightly more than average on their fitness desires. Demanding work hours create an appetite for flexibility and variety when it comes to fitness for this market.

Psychographics: ClassPass’ target audience includes primarily millennials. ClassPass understands its target audience’s values, communication preferences, and lifestyles. This includes feelings such as:

● Millennials value mobility ● They are most likely to complete workouts early in the mornings before work, on

their lunch hours, or in the early evenings after work ● Consume media mainly through their smartphones via apps and mobile websites ● Value quick and easy communication and connection ● This group is trendy and modern -- they make it a priority to stay up-to-date with

the latest fads in fitness and technology ● Dictate what the new craze will be. Influence every other age group

Demographics:

● Gender: Female ● Region: City Roots ● Status: Married ● Age: 25-44 ● Income: $100,000 ● Homeowners ● Lifestage Group: Cautious Couples ● Social Group: Urban Cores

Lifestyle & Media Traits:

● Owns a Volkswagen ● Eats at Boston Market ● Shops at Saks Fifth Avenue ● Attends Minor league baseball games ● Visits New York City

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● Watches Univision ● Listens to Spanish Contemporary

Competitive Analysis ClassPass is in competition with the likes of the Peloton App, Gym Pass, Equinox, and Daily Burn. The premium pass for ClassPass is approximately $135/month, which makes it priced highly among its competitors. It grants one the opportunity to attend 8-12 classes per month (Crook, 2018). All the competitors have the ability to function remotely, but ClassPass excels with its solid brand equity, and its sheer strength in numbers (over 30,000 fitness studios to choose from). None of the competitors come close to topping ClassPass’s partnerships. Users can use their membership to sign up for a class in 28 countries.

See Appendix A. Figure 1 for competitor cost comparison chart

The biggest threat to ClassPass continuing its success is not its competition. As the brand has flourished the relationships with collaborators have given cause for concern. ClassPass has depended on fitness studios like The Pad and Yoga Vida, which accepted ClassPass students into their classes a few times a month at rates far below what they asked of their direct customers. The studios received free marketing, a few extra customers, and the hope that the ClassPass students might eventually convert to full-paying direct members. In 2016, ClassPass collected $122 million dollars in revenue. They made 300,000 reservations for users, and spent $187 million dollars paying for classes to fitness studios. Strachan writes, “ClassPass made it clear that part of improving the company’s financial forecast would involve reducing the amount it spent on classes while placating studios’ concerns. The way to do so was to lower studio rates” (Strachan, 2020).

Lowering studio rates, decreases the amount of revenue these independent studios generate -- revenue that is needed to support their growing clientele. Fitness studios have been put in situations where they feel as though they will miss out on the marketing ClassPass provides for their businesses. However, they are finding it difficult to finance their operations due to ClassPass “strongly suggesting” they drop their rates. There are a number of fitness studios that are disgruntled with their working relationship with ClassPass (Strachan, 2020). ClassPass is a brand that doesn’t work without these collaborations. Improving these relationships are paramount to ClassPass’s continued success.

Campaign Strategy

Campaign Objectives ● Increase Brand Awareness : A large portion of our media strategy utilizes online

advertising tactics, so a proper way to track brand awareness for us is through tracking the number of social media followers. With this campaign, we will focus on increasing the number of Instagram and Facebook followers by 15% . Facebook currently boasts the most followers among all of ClassPass’ social media accounts, at 426,442 followers, but the ClassPass Instagram account also has a healthy following of 252,000 users. Average growth rate for an Instagram

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account of ClassPass’ size (over a 6 month period) is 16%, making this a reasonable objective (Clement, 2020).

● Increase Brand Engagement : This will be measurable by tracking the number of Instagram photo likes. It is our objective to increase Facebook and Instagram engagement by 3% . Facebook and Instagram are the brand’s most popular social platforms. For example, there was an average of 1,059 likes per photo on the ClassPass Instagram account, which is only .004% of all followers. On Instagram, an average engagement level is 2.4% (Fraser, 2020). On Facebook, engagement is surprisingly very low -- the last 7 posts had an average of 6 likes per post, which is .00001% of all followers. 3.6% is the average Facebook engagement rate for posts (Newberry, 2020).

Creative Approach - “ClassPass = Connection”

● ClassPass has generally ushered its users into booking fitness studio courses. Due to the socioeconomic status of the world outdoor classes, streamable classes, and group interactions will be the highest priority in advertisements. The creative approach will motivate millennial men and women to get active, and reconnect with their circle of friends.

Proposed Slogan

● “ClassPass. Sweat, connect….together” ● The campaign slogan will be a play on the company slogan, and the idea of

community that ClassPass is associated with. Millennials are concerned with what they do with their free time, and their social lives. The campaign slogan will resonate with them.

Creative Example

● Presented as a 30 second radio ad on radio streaming services such as Spotify and Pandora

● Ad will target young females ages 25-45, living in suburban and urban areas ● The sound clip begins with the ringing of an incoming FaceTime call. Two women

discuss how they miss one another and cannot wait to work out with each other again one day in the future. One of the women will mention that they should try a new app she heard of called ClassPass, so they can take fitness classes together. The friends agree to take a yoga class together next week.

● The ad ends with the sound that iPhones make at the conclusion of a FaceTime call.

● The commercial will conclude with a voiceover announcing a special offer code that can be found on the ClassPass Instagram and Facebook pages, thus directing traffic to these accounts in order to meet campaign objectives.

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Marketing Tactics

Online: ● Online advertising will account for 75% of the target budget. ● This will include influencer marketing and paid social (Facebook and Instagram) ● Paid search engine advertisements (Google)

Out of Home: ● Backlit Dioramas displaying engageable ClassPass advertisements. At these ads

users can sample workouts (via touchscreen). ● Large bulletin boards above heavily populated cities for public viewing ● Bus stop shelter advertisements to engage the idle, on-the-go consumer

Radio: ● 30 second audio advertisements on music streaming sites Pandora and Spotify ● Special promotional offers directing listeners to the ClassPass social media

pages and website will be advertised ● Advertisements will incorporate and support service attributes

Measurement The success or demise of the current media proposition can be evaluated by implementing a worst case scenario, an average scenario, and a best case scenario. Below is an explanation of each:

● Worst Case Scenario ○ All forms of media fail to resonate with the target audience ○ As a general trend, the ClassPass brand presence does not see

noticeable improvement in social media metrics ○ Gain of less than 5% of followers on Facebook and Instagram, or a lack of

growth whatsoever ○ ClassPass’ brand engagement does not improve at all on social media, or

an engagement improvement of less than 1% ● Average Scenario

○ Media tactics help increase social media followers marginally by 5-8% ○ ClassPass increases its brand engagement on social media marginally by

1-3% ● Best Case Scenario

○ Media tactics increase ClassPass membership by 10% ○ Downloads of the ClassPass app increase by 10% ○ Social media followers increase by 15%+ ○ Brand engagement will increase on social media by 3%+

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Budget The budget that has been designated for all required campaign components and is set at $1,500,000. This budget will cover:

● Development of large bulletin board material ● Filming/creation of ads that will air on radio apps and social media ● Social media management ● Content and imagery of search engine advertisements ● Production of content and location rates for Backlit Dioramas ● Creation of content and location rates for bus stop shelter ads ● Ad spot costs for Pandora ● Ad spot costs for Spotify ● Agency fees ● Facebook and Instagram ads (CPC) ● Google Ads (CPC)

Media Plan

Plan Introduction ClassPass will be introducing a media plan that utilizes a mix of advertising mediums. The brand hopes to find success in strengthening brand awareness and brand engagement with urban upper middle class women ages 25-45. The campaign includes online, out of home, and radio advertisements.

Media Objectives 1. Increase Brand Awareness : Increase the number of Instagram and Facebook

followers by 15% . Facebook currently boasts the most followers among all of ClassPass’ social media accounts, at 426,442 followers, but the ClassPass Instagram account also has a healthy following of 252,000 users. Average growth rate for an Instagram account of ClassPass’ size (over a 6 month period) is 16%, making this a reasonable objective (Clement, 2020).

2. Increase Brand Engagement : Increase Facebook and Instagram engagement by 3% . There is an average of 1,059 likes per photo on the ClassPass Instagram account, which accounts for only .004% of all followers. On Instagram, an average engagement level is 2.4% (Fraser, 2020). On Facebook, engagement is surprisingly very low -- the last 7 posts had an average of 6 likes per post, which is .00001% of all followers. 3.6% is the average Facebook engagement rate for posts (Newberry, 2020).

Media Plan Strategy & Vehicles ● Online advertising will be the prime component of the media plan, accounting for

75% of the total media plan budget. ○ Will include media types such as influencer marketing, paid social media

advertising (Facebook and Instagram), and paid search advertising (Google).

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● In each of the three budget scenarios, paid social media advertising will account for 50% of the online budget (Facebook and Instagram), with 25% of the online budget going toward paid search, and 25% of the online budget going toward influencer marketing.

● Communication will need to reach the ClassPass target audience outside of the home (this target audience is notorious for spending their days at or near their places of work). Out of home advertising accounts for 15% of the overall budget.

○ Out of home advertisements will need to be positioned in a prime viewing spot

● Radio advertising will account for 10% of the marketing budget. Streaming services such as Spotify and Pandora will be used. Ads such as these have the ability to connect to listeners on a personal level, therefore increasing relevancy. “Music streaming revenue in the United States surpassed 8.8 billion U.S. dollars in 2019, more than double the figure recorded three years earlier” which speaks to its relevance in the marketing mix (Watson, 2020).

Online Advertising In order to best reach our target audience,influencer marketing, paid search, and paid social methods will be used. Although there will be variations in the number of ads and exposure to the target audience over the three different proposed budgets, the overall use of our chosen online advertising outlets will be most effective in reaching our target audience.

Influencer Marketing ● Media Details :

○ Overview: Influencer marketing is “a type of social media marketing that uses endorsements and product mentions from influencers–individuals who have a dedicated social following and are viewed as experts within their niche” (Chen, 2020). Typically, influencers are so successful because of the trust that they have built with their followers. As a trusted resource, influencers recommend products and services to their followers and in return are paid by brands for doing so.

○ Metrics: The success of an influencer marketing campaign is determined based on several metrics including engagement rates and product/service sales. It has been found that larger the influencer, the lower the ROI (Carbone, 2019). It’s reported that influencers with 50K to 250K followers deliver a 30% better ROI per dollar spent than macro-influencers, and 20% better than influencers with 1+ million followers (Carbone, 2019). For this reason, the use of micro and macro influencers will be diversified across the three budgeting scenarios.

○ Cost: Influencer marketing can be far more lucrative than paid media. According to Mediakix, an influencer marketing agency, brands earn approximately $2 for every $1 spent on AdWords, compared to $11.69 earned media value per $1 spent on influencer marketing (Chen, 2020). This makes the cost of influencer marketing quite worth the results. As a starting point, many influencers adhere to the $100 per 10,000 followers

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rule with variances for engagement rates, campaign budgets, and campaign length (Carbone, 2019). While a current standardization of rates does not exist yet in the influencer industry, the following is an example rate breakdown for a micro with 30K followers and a 7.3% engagement rate.

● Dedicated Instagram Post: $325 ● IG Giveaway: $350 ● Brand IG Takeover (min 2 photos + Stories): $250 per day ● IG Caption Mention (No visible product): $75 ● Series of 5 IG Stories: $85 ● Series of 3 Dedicated Posts: $825 ● Series of 5 Dedicated Posts: $1400

See Appendix A. Figure 2 for Macro Influencer rate sheet

● Rationale: ○ Target audience: In a 2019 survey of global customers conducted by

Rakuten Marketing, 60% of females indicated that they engage with an influencer at least once a day (Rakuten Marketing, 2019). Being that ClassPass’ target audience is female, this is a good indication that the target audience will respond positively to the influencer marketing efforts.

○ Platforms chosen: “Media-driven social platforms are the most common for consumers to follow influencers. Instagram is the most popular social platform, with 65% of consumers saying they follow their favorite influencer on the image (and video) driven social media channel. Facebook and YouTube were tied for the second most common at 62% each” (Rakuten Marketing, 2019). Of those surveyed, 70% of women prefer to follow influencers on Instagram as opposed to other platforms (Rakuten Marketing, 2019). By focusing our efforts on influencers on Instagram and Facebook, we will be reaching the target audience where they already commonly interact with influencers.

○ Likelihood of success: 87% of surveyed consumers said that they were inspired to make a purchase based on what they saw from an influencer (Rakuten Marketing, 2019).

Paid Search - Google ● Media Details:

○ Overview: Paid search is “ Paid search is a form of digital marketing where search engines such as Google and Bing allow advertisers to show ads on their search engine results pages (SERPs)” (Fountain Partnership, 2018). Ads can be highly targeted to a specific location and search keywords can be chosen to best meet the needs of the organization.

○ Metrics: Google Ads allows brands to track metrics such as impressions, click-through-rates (CTR), and cost-per-click (CPC). By closely tracking these, campaigns can be updated in real time so that marketers can perfect what works, and terminate what is not working. The average cost-per-click for the fitness industry in Google Ads is $2.15 (Fu, 2020).

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○ Cost: Google paid search advertising (Google Ads) uses a pay-per-click model to determine cost. Virtually any business can benefit from Google Ads because it is adaptable to any budget. You can set daily budgets and maximum bids to keep budgets under control. The average CPM with Google is $2.80 (Faris, 2019).

● Rationale: ○ Likelihood for Success: Online ads increase brand awareness by 80%

(Weller, 2020). ClassPass can direct ad clicks to the company website or the ClassPass official social media accounts, therefore increasing traffic and bringing the brand closer to meeting its media objectives.

○ Google: Google is the most visited website and processes over 2.5 billion searches every day (Weller, 2020). Being the most popular search engine, ClassPass is likely to get the most traction on its campaign using its paid search capabilities over another search engine.

Paid Social - Facebook and Instagram

● Media Details: ○ Overview: Facebook and Instagram sell ad space within their platforms

so that brands can connect with their networks of millions of followers. Ads function similarly on the two platforms (which is expected, as they are under the same parent company) in the sense that they are customizable by the brand and allow for the use of characteristics about their specific users in order to highly target ads to consumers of a brand’s choosing. There are several different ad spaces within both apps including stories, video ads, carousel ads, and photo ads (Newberry, 2020). Both platforms also work to place their ads very intentionally based on the objectives of the brand. Some possible objectives include brand awareness, engagements, and lead generation.

○ Metrics: Facebook and Instagram advertisements are key marketing platforms nowadays because of their ability to provide highly accurate, measurable data regarding a campaign’s success. Below is an example of what the Facebook Ads manager looks like for a campaign reaching both males and females aged 18-29 across the state of California. As shown below, reach, audience size, and page likes are just a few of the metrics that are reported on. The best part about advertising on Facebook/Instagram is that based on the demographic information the platforms have about their users, ads are far more likely to end up being seen by the target audience than most other forms of advertising.

See Appendix B. Figure 1 for an overview of Facebook Ads metrics

○ Cost: Paid social media advertising can work for budgets of all sizes. The model used for determining the cost of campaigns is similar on both platforms in which brands set bids and pay based on impressions/likes. On Instagram, the average cost per click for most ad placements is $1.20 (Newberry, 2020). Facebook advertising generally costs around $7.19 per

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1,000 impressions (CPM) (WebFX, 2020). Instagram has an average CPM of $6.70 (Faris, 2019). More specifically to the fitness industry, the average cost-per-click (CPC) on Facebook is $1.90 (WebFX, 2020).

● Rationale: As of Q3 2020, YouTube, Facebook and Instagram have the highest percentage of female internet users in the United States out of all social media platforms (Clement, 2020). Facebook and Instagram are ClassPass’ most popular social media platforms in terms of number of followers and level of follower engagement. This means that advertising within each of these two platforms and directing clicks to ClassPass’ account will result in meeting our two media objectives of increasing Instagram and Facebook followers by 15% and increasing levels of engagement on Facebook and Instagram by 3%.

○ Facebook: Purchasing ad space within Facebook will be crucial to meeting our media objectives. 72% of female internet users in the United States access Facebook, as of Q3 2020 (Clement, 2020). Also, by advertising on Facebook ClassPass has access to reach 1.8 billion users worldwide – by far the largest audience of any social network” (Wishpond, 2017).

○ Instagram: Purchasing Instagram ad space is also a key part of the media plan because 56% of female internet users in the United States access Instagram, as of Q3 2020 (shown in the chart below) (Clement, 2020).

See Appendix B. Figure 2 for macro influencer rate sheet (Q3, 2020)

Out of Home Advertising

● Out of home advertisements will make up 15% of the target budget. ● Advertisements will be located in urban and suburban areas where our on-the-go

target market spends the majority of their time. ● ClassPass’ target audience live in upscale urban areas of large cities. Out of

home advertisements will reach the target audience when they are out for work, to eat, or and to shop.

Large Bulletin Boards

● Media Details: ○ Overview: Billboard advertising is in theory a large-scale print

advertisement that is used to market a company, brand, product, or campaign. Placing them at high altitudes in areas of high traffic like highways make them most effective. Putting them in areas with a dense population usually gives the highest number of views and impressions when compared to other out of home advertisements.

○ Metrics: Non-profit organizations like Geopath can use technology and media statistics to estimate the weekly impressions of just about every billboard in the country.

○ Cost: Billboard costs may vary depending on the following factors: location, how many people are estimated to see the ad, and the total

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traffic in the area. Bulletin boards in populated urban areas will cost more than billboards in the countryside where it will be viewed less frequently

● Rationale: The idea to use a large bulletin board is supported by the driving patterns of our target audience. Quoting an excerpt from the AAA American driving survey Srivastava writes “The usual age group that prefers going out falls anywhere between the ages of 30 and 49, with an annual driving average of around 13,506 miles” (Srivastiva, 2020). Most of our target audience falls within this age range. re that our target audience will be among the viewers of the advertisement.

Digital Signage ● Media Details:

○ Overview: Digital signage is an advertising format that delivers digital content through an electric device. Devices may include tv touch panels, screens, totems, or projectors. These items are generally point of sale items in public places.

○ Metrics: Digital Signage can be measured in sessions, the same way websites can be using website analytics. Sessions are the recorded set of actions performed by specific visitors. Each visitor can be counted as a different session depending on what they do.

○ Cost: It states in TelemetryTV magazine, “Depending on the brand, size, resolution, commercial vs. consumer, and a host of other factors, a TV display for digital signage could cost anywhere from a few hundred dollars to a few thousand” (How Much, 2020). Media planners can spend $200 dollars on the tv but then need another $250 dollars to buy the streaming box. The content that streams on the device will also have to be filmed and produced so depending on how it is planned digital signage could cost anywhere from $400-$1,200.

○ Rationale: Digital signage is a very effective media method. It is aesthetically pleasing, and versatile in terms of where it's placed. Khan states, “70 percent of Americans who recall seeing a digital video display in the past month, 47 percent specifically recall seeing an ad. That’s nearly half! And of those travelers who remember spotting a digital billboard, 82 percent recall that it was displaying an ad” (Khan, 2016).

Transit Shelter Ads ● Media Details :

○ Overview: Transit shelter ads are placed in well-traveled streets with plenty of potential viewers. In many areas the frequency of bus stops allows advertisers to place the same message repeatedly along densely populated roadways.

○ Metrics: Again the OOH can also help create metrics to record the performance of bus top shelters. OOH can issue a positive or negative rating based on metrics like: recording if riders were part of the traffic on a company’s website, deeming if the shelter is in a high visitation area, and providing audited audience counts for these advertisements as well.

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○ Cost: The cost of advertising on transit shelter ads is very competitive when comparing it to other out of home ads. Cities where public transit is used more frequently cost more to place advertisements. Prices can go from as cheap as $150 per 4 week period to as expensive as $1,500 per 4 week period.

○ Rationale: ClassPass focuses on consumers in busy urban areas, most of which rely heavily on public transit to transport its population. Making the decision to advertise ClassPass on bus stop shelters was an easy one. Giles writes, “ Bus stop advertising catches people in a rare moment of stasis whilst in transit. They are looking for distractions at this point, making the humble bus stop advertisement a very powerful messaging medium” (Giles, 2018).

Radio (Music Streaming) Advertising ● Media Details :

○ Overview : Radio advertisements generate opportunities that other forms of advertisements simply do not offer such as superior reach and greater impact. For example, listeners have the ability to stream radio through a variety of mediums including their personal computers, mobile phones, television and vehicles. These streaming opportunities will provide increased awareness and engagement with the ClassPass brand. *services/ people/demographic how to target them on service.

○ Metrics : “On a daily basis Spotify music streaming service reaches 104 million listeners and Pandora reaches 63.5 million users in the United States” (Milenkovic, 2020). Females account for 44% of Spotify users and 59% of Pandora users (as shown in the figure below). We can estimate the total target market we are reaching by multiplying the amount of female users by the percentage of the female population. It is estimated that 12.7 million females ages 25-45 utilize Spotify daily. According to streaming data and sales, “Nielsen Music, the industry-standard information and sales tracking sector, released a mid-year report highlighting 2020’s current most popular genre. Stats reveal hip-hop as America’s favorite and most influential genre, so far” (Zhang, 2020). Reporting metrics include number of impressions and number of clicks.

○ Cost: “Spotify ads, like their Facebook and Google counterparts, involve behind-the-scenes bidding, and ads will vary in price each time, depending on the competition for your audience” (Zaman, 2019). The average cost for a Spotify ad averages $0.015-$0.025 per ad served. Pandora charges $1,500 per month and their cost per thousand runs at $8-$12 per audio ad (Zaman, 2019)

● Rationale: “During the first quarter of 2020, 91% of adults listened to a streaming radio service each week, more than any other medium” (Adgate, 2020). Because one in-stream ad is played at a time, marketers have the complete attention of their audience. “In 2020, around 52% of Spotify listening time has come from smartphones and tablets” (Milenkovic, 2020). Additionally, streaming services frequently advertise on social media platforms which will in turn help to achieve

CLASSPASS IMC AND MEDIA PLAN 17

our two overarching goals of increasing the number of Instagram and Facebook followers by 15% and increasing Facebook and Instagram engagement by 3%.

Media Timeline, Schedule & Geographic Considerations

The campaign will run from January through December (12 months). For most gyms in North America, the busy periods run from January through March (GymMaster, 2020). To remain consistent with this trend, ClassPass will increase it’s advertising spending during the months of January and February. Following this period, ClassPass will keep a low, consistent amount of media spending through March, April, and the first half of May before the next wave of new gym signups hits. “while new gym members typically drop off at all health clubs after the first months of the year, we see a resurgence in clients by early summer” (Nittle, 2019). ClassPass will “pulse” its advertising spending again during the second half of May, through the first half of July. Another low, but consistent period of advertising will follow this.To wrap up 2021, as the new year once again approaches in December, ClassPass will heighten its media buys to remain at the top of gym goers’ minds as 2022 approaches.

Budget Allocations & Media Scenarios

Budget Allocation Recommendations ● Online: Online advertising will account for 75% of the target budget. This

includes influencer marketing, paid social (Facebook and Instagram), and paid search (Google).

● Out of Home: Out of home advertisements will make up 15% of the target budget. Advertisements will be located in urban and suburban areas where our on-the-go target market spends the majority of their time.

● Radio: Radio advertisements will account for 10% of the target budget. Radio streaming services such as Pandora and Spotify will be heavily relied upon in this campaign due to their reach with our target market.

See Appendix B Figure 3 . for media budget allocation recommendations

Media Budget ClassPass is not a publicly traded company, and does not disclose their advertising spending or even their revenue. ClassPass is venture capital funded, primarily by Temasek, L Catterton and Apax Digital (Crook, 2020). Estimates have put ClassPass’ annual revenue around $150 million prior to the COVID-19 pandemic (Owler, 2020). In fact, as reported in January 2020, their most recent fundraising valuation was over the $1 billion dollar mark (O’Brien, 2020). Unfortunately, due to COVID-19 related hardships, ClassPass announced a 95% drop in revenue and as a result, laid off or furloughed more than 50% of their workforce in late May/early April (Feiner, 2020). Peloton, a publicly traded company, is a primary competitor to ClassPass, so we can look to them for guidance in advertising spending. In the 2020 fiscal year, Peloton

CLASSPASS IMC AND MEDIA PLAN 18

reported $1.8259 billion dollars in revenue. In this same year, Peloton’s sales and marketing expenses came in at $477 million dollars, or 26% of their annual revenue (Peloton Interactive, 2020). Different than ClassPass, Peloton has been wildly successful amidst the 2020 COVID-19 pandemic and their revenue has increased 66% year-over-year (Adams, 2020). Despite this, the company is finding that its strongest marketing tool may be word-of-mouth referrals and actually turned off all media spending for quarter three in fiscal year 2020 (Adams, 2020). With guidance from Peloton’s spending decisions and what are known to be standard advertising practices, we can safely assume that an advertising budget equivalent to approximately 20% of ClassPass’ revenue is an acceptable target budget. With the recent 95% drop in revenue, we can assume that their yearly revenue will be reported around $7.5 million.

Using the 20% benchmark, ClassPass’ target advertising budget will be $1.5 million dollars .

Online Budget Out-of-Home Budget

Radio Budget Overall Budget

Best Case $1,237,500 $220,500 $165,000 $1.65 Million

Likely Case $1,125,000 $221,367 $150,000 $1.5 Million

Worst Case $1,012,500 $ 269,250 $135,000 $1.35 Milion

Online Out-of-Home Radio

Best Case Scenario Budget:

$1.65

Million

Influencer : Ads: ● Utilize both micro and

macro influencers ● Variety of placements

such as story shares, photo posts, shop page features, blog posts, IG takeovers, and story takeovers

Cost: $309,375 CPM: $6.50

Paid Search: Ads: ● Google Ads

Large Bulletin Boards :

● 7.5 million impressions

● How many of each ad: 16 Backlit Dioramas

● % of target audience seeing this ad

● 13 Large Bulletin Boards for 5 months

● Cost: $97,500/yr

Spotify : Ads :

● Leverage a 30 second audio advertisement that can be tagged with special ClassPass promotional offers. Advertisement will integrate and support service attributes.

Impressions : (number of views)

● 2.2 million % of target audience:

● 100% Cost : $110,000

CLASSPASS IMC AND MEDIA PLAN 19

● Direct clicks to ClassPass website, Facebook, and Instagram pages

Cost: $309,375 CPM: $2.80

Paid Social: Ads: ● Clicks directing users

to official social pages

● Variety of photo posts, video posts, and story posts.

Cost: $618,750 Facebook CPM: $7.19 Instagram CPM: $6.70

Total cost: $1,237,500

● Cost of each ad = $1,500

● CPM = $5

Digital Signage : ● Impressions:19.

5 million ● How many of

each ad: 65 Backlit Dioramas

● Cost: $78,000 ● Cost of each

ad: $400 ● CPM: $4

Transit Shelter Ads ● Impressions:15

3,000,000 ● How many of

each ad: 25 Transit Shelter Ads

● Cost: $45,000 ● Cost of each

ad: $150 ● CPM: $.29

Total cost: $220,500

● CPM (Avg): $ 5.00 ● Delivery: 1-4 ads

played per hour of listening time

Pandora: Ads :

● Leverage a 30 second audio advertisement that can be tagged with special ClassPass promotional offers. Advertisement will integrate and support service attributes.

Impressions: (number of views)

● 7.9 million % of target audience

● 100% Cost : $55,000

● CPM (Avg): $7.00 ● Delivery: 6-12 ads

played per hour

Total cost: $165,000

Likely Scenario Budget:

$1.5

Million

Influencer : Ads: ● Utilize both micro and

macro influencers ● Variety placements

such as story shares, photo posts, shop page features, blog posts, IG takeovers, and story takeovers

Cost: $281,250 CPM: $6.50

Paid Search: Ads: ● Google Ads

Large Bulletin Boards

● Impressions: 25,000

● How many of each ad: 1.4 large bulletin boards for 5 months

● Cost = 99,750/yr

● Cost of each ad = $14,250

● CPM = $15.8

Digital Signage

Spotify Ads :

● Leverage a 30 second audio advertisement that can be tagged with special ClassPass promotional offers. Advertisement will integrate and support service attributes.

Impressions : (number of views)

● 18 million % of target audience

100% Cost : $90,000

CLASSPASS IMC AND MEDIA PLAN 20

● Direct clicks to ClassPass website, Facebook, and Instagram pages

Cost: $281,250 CPM: $2.80

Paid Social: Ads: ● Clicks directing users

to official social pages

● Variety of photo posts, video posts, and story posts.

Cost: $562,500 (broken down, 50% Facebook & 50% Instagram) Facebook CPM: $7.19 Instagram CPM: $6.70

Total cost: $1,125,000

● 10,395,000 Impressions

● % of target audience seeing this ad

● How many of each ad: 33 Backlit Dioramas

● Cost = $76,725 ● Cost of each ad

= $775 ● CPM = $7.4

Transit Shelter Ads

● Impressions: 2,476,800

● How many of each ad: 1.72 Transit Shelter Ads

● Cost = $44,892 ● Cost of each ad

= $2,175 ● CPM = $18

Total cost: $221,367

● CPM (Avg): $ 5.00 ● Delivery: 1-4 ads

played per hour

Pandora: Ads :

● Leverage a 30 second audio advertisement that can be tagged with special ClassPass promotional offers. Advertisement will integrate and support service attributes.

Impressions: (number of views)

● 8.6 million % of target audience

● 100% Cost : $60,000

● CPM (Avg): $7.00 ● Delivery: 6-12 ads

played per hour

Total cost: $150,000

Worst Case

Scenario Budget:

$1.35

Million

Influencer : Ads: ● Utilize micro

influencers because to take advantage of their higher engagement levels with the limited budget

● Variety of placements such as story shares, photo posts, shop page features, blog posts, IG takeovers, and story takeovers

Cost: $253,125 CPM: $6.50

Large Bulletin Boards

● Impressions: 600,000

● How many of each ad: 1 large bulletin boards

● Cost: $150,000 ● Cost of each

ad: $30,000 ● CPM: $250

Digital Signage : ● Impressions:

3,510,000 ● How many of

each ad :13 Backlit

Spotify Ads :

● Leverage a 30 second audio advertisement that can be tagged with special ClassPass promotional offers. Advertisement will integrate and support service attributes.

Impressions : (number of views)- 17 million % of target audience - 100% Cost : $85,000

● CPM (Avg): $ 5.00 ● Delivery: 1-4 ads

played per hour

CLASSPASS IMC AND MEDIA PLAN 21

Media Flight Plan The following Media Flight Plan has been assembled in accordance with the likely budgeting scenario. This plan showcases the cost of advertisements, number of spots that will be purchased, and additional metrics portraying the potential outcomes of this plan.

See Appendix B. Figure 4 for Media Flight Plan

Media Plan Justification & Outcomes The ClassPass media plan follows a pulsing advertising schedule. Pulsing scheduling combines the principles of both continuity and flighting scheduling times, making it a “best of both worlds” scenario (Geskey, 2017). The schedule follows heavy periods of advertising during seasonally significant times of the year for the brand to “break through the clutter,” while maintaining constant advertising throughout the year using various media channels (Geskey, 2017). This type of advertising scheduling works well for ClassPass due to the seasonal fluctuation that gyms and boutique fitness centers face in membership.

For most gyms in North America, the busy periods run from January through March (GymMaster, 2020). To remain consistent with this trend, ClassPass will increase it’s

Paid Search : Ads: ● Google Ads ● Direct clicks to

ClassPass website, Facebook, and Instagram pages

Cost: $253,125 CPM: $2.80

Paid Social : Ads: ● Clicks directing users

to official social pages

● Variety of photo posts, video posts, and story posts.

Cost: $506,250 Facebook CPM: $7.19 Instagram CPM: $6.70

Total cost: $1,012,500

Dioramas ● Cost: 76,050 ● Cost of each

ad: $1,950 ● CPM: $21.67

Transit Shelter Ads ● Impressions:

19,440,000 ● How many of

each ad: 6 Transit Shelter Ads

● Cost = $43,200 ● Cost of each ad

= $600 ● CPM = $22.22

Total Cost:$269,250

Pandora: Ads :

● Leverage a 30 second audio advertisement that can be tagged with special ClassPass promotional offers. Advertisement will integrate and support service attributes.

Impressions: (number of views)

● 7.1 million % of target audience

● 100% Cost : $50,000

● CPM (Avg): $7.00 ● Delivery: 6-12 ads

played per hour

Total cost: $135,000

CLASSPASS IMC AND MEDIA PLAN 22

advertising spending during the months of January and February. Following this period, ClassPass will keep a low, consistent amount of media spending through March, April, and the first half of May before the next wave of new gym signups hits. Adam Toma is the manager of Crunch Fitness in Burbank, California and notes “while new gym members typically drop off at all health clubs after the first months of the year, we see a resurgence in clients by early summer” (Nittle, 2019). To reflect this, ClassPass will “pulse” its advertising spending again during the second half of May, through the first half of July. Another low, but consistent period of advertising will follow this. To wrap up 2021, as the new year once again approaches in December, ClassPass will heighten its media buys to remain at the top of gym goers’ minds as 2022 approaches.

ClassPass recognizes the concept of “New Year, New You” as one of its core Big Ideas. The advertising scheduling plan not only follows the seasonality of the fitness industry, but reflects this Big Idea as well. ClassPass truly cares about helping its members achieve their fitness goals, and by ramping up advertising around key times of the year, this idea will be well-known to consumers too. Furthermore, with stay at home orders increasing, and the ability to work-out at traditional fitness centers rapidly reducing, consumers are seeking alternate ways to get in shape this new year.

Conclusion The ClassPass brand has grown exponentially since their onset in 2013. Despite much success, the fitness industry has been ravaged by COVID-19 and therefore has been challenged to think creatively when it comes to business. To enhance overall brand performance, ClassPass can incorporate specific integrated marketing communications strategies that are designed to increase customer engagement, heighten brand awareness, and build and maintain relationships among ClassPass users. By utilizing a comprehensive mix of traditional and non-traditional media vehicles including online, out of home, and radio advertisements, ClassPass can effectively reach their millennial target market. Consequently, ClassPass has the opportunity to harmonize all aspects of marketing and therefore develop one cohesive creative message.

The creative message of this campaign is designed to call attention to the innate desire for human connection in light of the global pandemic. Furthermore, ClassPassers have complete control over their workout routine, which happens to be a unique concept given the nature of our world at the moment. Although users cannot connect with their workout buddies as they traditionally would, ClassPass has the ability to generate opportunities for engagement and excitement toward the brand. These actions will build awareness and overall enthusiasm toward the ClassPass brand. Comprehensively, users have the ability to live up to ClassPass’s brand essence, and have full control over their fitness

CLASSPASS IMC AND MEDIA PLAN 23

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start with why. Retrieved November 18, 2020, from https://www.smartinsights.com/digital-marketing-strategy/online-value-proposition /start-with-why-creating-a-value-proposition-with-the-golden-circle-model/

Chen, J. (2020, October 05). The most important social media metrics to track.

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Clement, J. (2020, September 16). Global follower growth on Instagram by profile

size 2019. Retrieved November 11, 2020, from https://www.statista.com/statistics/307026/growth-of-instagram-usage-worldwide/

DiTrolio, M. (2020, March 05). Payal Kadakia Turned ClassPass Into a $1Billion Company While Pregnant. Retrieved December 16, 2020, from https://www.marieclaire.com/career-advice/a31138885/payal-kadakia-classpass- billion-dollar-company/

Feiner, L. (2020, April 02). ClassPass reduces staff by more than half as social

distancing drives fitness home. Retrieved November 11, 2020, from https://www.cnbc.com/2020/04/02/classpass-reduces-staff-by-half-as-coronavirus -drives-fitness-home.html

Fraser, H. (2020, June 29). 7 Tricks for Instagram Accounts with Low Engagement

Rates. Retrieved November 11, 2020, from https://www.pixlee.com/blog/7-tricks-for-instagram-accounts-with-low-engagemen t-rates/

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GymMaster. (2020, May 07). When do members sign up to your gym? Retrieved December 08, 2020, from https://www.gymmaster.com/when-do-members-sign-up/

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Hou, K. (2016, April 27). 11 Affordable ClassPass Alternatives. Retrieved November 03, 2020, from https://www.thecut.com/2016/04/11-affordable-classpass-alternatives.html

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across media (Third ed.). Hoboken, N.J.: Wiley.

Mutton, S. (2020, March 02). Payal Kadakia is the first unicorn of this decade. Retrieved November 17, 2020, from https://businesschicks.com/payal-kadakia-classpass/

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Strachan, M. (2020, February 06). ‘ClassPass is squeezing studios to the point of death.’ Retrieved November 17, 2020, from https://www.vice.com/en/article/xgqgaw/classpass-is-squeezing-studios-to-the-po int-of-death

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Appendices

Appendix A

Figure 1. Membership Prices Per Month of ClassPass Competitors (Hou, 2016)

The above figure shows a typical influencer rate sheet for an influencer with 118K followers and a 2.5% engagement rate. ClassPass campaign budgets will be based on micro and macro influencer figures.

Figure 2. Macro Influencer rate sheet (Carbone, 2019)

CLASSPASS IMC AND MEDIA PLAN 27

Appendix B

Figure 1. Facebook metrics shown in the platform’s Ads manager

Figure 2. Percentage of female internet users in the United States who access selected social networks as of third quarter 2020 (Clement, 2020).

CLASSPASS IMC AND MEDIA PLAN 28

Figure 3. Budget Allocation Recommendations

Figure 4. Media Flight Plan (following the page break below)

Key Media Schedule & Flow ChartOnline 2021 ClassPass Proposed Media PlanOut of HomeRadio

January February March April May June July August September October November DecemberWeek 1 2 3 4 1 2 3 4 1 2 3 4 5 1 2 3 4 1 2 3 4 1 2 3 4 5 1 2 3 4 1 2 3 4 1 2 3 4 5 1 2 3 4 1 2 3 4 1 2 3 4 5 Spots Budget Audience CPM ImpressionsOnline $1,125,000Influencers - Instagram 1 1 0.5 1 0.5 1 5 $281,250 8,653,846 $6.50 43,269,231Paid Search - Google 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 52 $281,250 1,931,662 $2.80 100,446,429Paid Social - Facebook 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 52 $281,250 752,247 $7.19 39,116,829Paid Social - Instagram 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 52 $281,250 807,261 $6.70 41,977,612Out of Home *sold as monthly packages* $225,000Large Bulletin Boards 1 1 1 1 1 5 $78,750 750,000 $21 3,750,000Digital Signage 35 34 34 103 $101,300 150,000 $6.50 15,450,000Transit Shelter Ads 13 12 11 12 13 13 13 13 11 11 13 15 150 $45,000 255,000 $1.18 38,250,000Radio $150,000Spotify 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 52 $90,000 98,901 $17.50 5,142,857Pandora 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 22 $60,000 272,727 $10.00 6,000,000

$1,500,000 13,671,644 $5.11 293,402,958January February March April May June July August September October November December

Impressions 33,420,038 27,915,038 20,755,355 17,420,284 25,472,661 34,395,336 22,735,161 17,675,284 20,755,355 17,165,284 17,675,284 37,642,836TRP 77 64 47 40 58 79 52 40 47 39 40 86GRP 99.33 99.84 101.38 100.35 100.95 99.86 99.54 101.83 101.83 98.88 101.83 100.6Reach % 77.00% 64.32% 47.82% 40.14% 58.69% 79.25% 52.39% 40.73% 47.82% 39.55% 40.73% 86.73%Frequency 1.29 1.56 2.12 2.5 1.72 1.26 1.9 2.5 2.12 2.5 2.5 1.16

Target Audience 43.4 million