1 Media Planning and Analysis 2013 Cengage Learning

1 Media Planning and Analysis © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter Objectives After reading this chapter you should be able to: 1. Describe the major factors used in segmenting target audiences for media planning purposes. 2. Explain the meaning of reach, frequency, gross rating points, target rating points, effective reach, and other media concepts. 3. Discuss the logic of the three exposure hypothesis and its role in media and vehicle selection. 4. Describe the use of the efficiency index procedure for media selection. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2

Chapter Objectives (cont’d) 5. Distinguish the differences among three forms of advertising allocation: continuous, pulsed, and flighted schedules. 6. Explain the principle of recency and its implications for allocating adverting expenditures over time. 7. Perform cost-per-thousand calculations. 8. Review the application of media planning software and actual media plans. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3

Is Super Bowl Advertising Worth the Expense? Clint Eastwood and “Halftime in America” © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4

Media versus Vehicles • Media are the general communication methods that carry advertising messages—television, magazines, newspapers, and so on. • Vehicles are the specific broadcast programs or print choices in which advertisements are placed. • For example, television is the media, and American Idol is the vehicle. • International media vehicle options: www. kidon. com/media-link • Several years ago, GM tried consolidating its media planning and buying into one organization (GM Planworks) and others have tried this strategy. • Creating effective messages is critical, but it is just as essential that the messages are placed in the right media and vehicles. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5

Figure 16. 1: Model of the Media-Planning Process © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6

The Media-Planning Process 1. Selecting the target audience 2. Specifying media objectives 3. Selecting media categories and vehicles 4. Buying media © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7

Selecting the Target Audience • The target audience should be pinpointed, otherwise exposures may be wasted, and prime candidates missed. • Four major types of information are used in segmenting target audiences: • • Behavioral data Geographic data Demographics Lifestyle/Psychographics © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8

Specifying Media Objectives 1. What proportion of the population should be reached with vehicles containing the advertising message during specified period (reach) 2. How frequently should audience be exposed to the vehicles with the message during this period (frequency) 3. How much total advertising is needed to accomplish reach and frequency objectives (weight) © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9

Specifying Media Objectives (cont’d) 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 vehicles with the advertising message (recency) 6. What is the most economically justifiable way to accomplish objectives (cost) © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10

Gross Impressions (“total exposures” or “duplicated audience”) • Gross Impressions: Total audience (homes) exposed during the specified time period to any of the media vehicles containing the ad messages on any occasion. • Average freq. = gross impressions / net coverage • e. g. , 2. 22 = 20 / 9 © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11

Reach (%) • Reach: The percentage of a target audience (e. g. , homes) that is exposed at least once (e. g. , 1, 2, 3, . . . ) during a specified time frame to the media vehicles containing the ad message. • e. g. , 90% (9 of 10 homes) 90 = reach or “ 1+ exposures” 9 = “net coverage” or “unduplicated audience” © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12

Determinants of Reach • More people are reached when a media schedule… • Uses multiple media • Diversifies vehicles within each medium • Varies the dayparts © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13

Average Frequency • Frequency: The average number of times during the specified time period that members (homes) in the target audience are exposed to the media vehicles containing advertiser's message • e. g. , 2. 22 times © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14

Hypothetical Frequency Distribution for the Smart Car Advertised in Cosmopolitan Magazine © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15

The Concept of Frequency Distribution • In the hypothetical situation, 90% of the Fortwo’s target audience is reached by the advertising schedule and they are exposed an average of 2. 2 times during the four-week advertising schedule in Cosmopolitan. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16

Weight • Weight: Represents how much advertising volume is required to accomplish advertising objectives. • A rating (in general) is the percentage of an audience that has an opportunity to see an ad placed in a vehicle. • Three weight metrics: • Gross ratings • Target ratings • Effective ratings © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17

Weight: Gross Rating Points • 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) • e. g. , 200 = 90 x 2. 22 © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18

Determining GRPs in Practice • Rating: The proportion of the target audience exposed to a single issue of an advertising vehicle • GRPs are the sum of all vehicle ratings in a media schedule • The rating is a proxy for reach, while the sum (of the ratings) is a proxy for frequency © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19

Determining GRPs in Practice • The Gross Ratings generated by a particular media schedule simply equal the sum of the individual ratings that can be obtained across all vehicles included in that schedule. (GRPs below = 91. 0) © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20

Does a Greater GRP Score Indicate a Better Campaign? • Plan X: 90% reach x 2 frequency = 180 GRPs • Plan Z: 52% reach x 3. 08 frequency = 160 GRPs © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21

Weight: Target Rating Points (TRPs) • Adjust a vehicle’s rating to reflect just those individuals who match the advertiser’s target audience (e. g. , for “Smart Car” campaign -- 18 -49 years; $50, 000+; urban) • e. g. , 91. 0 GRPs x. 30 = 27. 3 TRPs © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22

The Concept of Effective Reach • How often does the target audience have an opportunity to be exposed? • Effective reach (ER) is based on the idea that an advertising schedule is effective only if it has a minimum of three “exposures” (i. e. , 3+ exposures) • Effective rating points = ER x freq. • 67 = 30 x 2. 22 © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 23

Effective Reach in Advertising Practice • 3 -10 exposures during a media-planning period (typically 4 weeks) • Using multiple media • Subjective factors must be considered • • • Consumer awareness Competitive position Degree of loyalty Message creativity Objectives – e. g. , awareness versus sales © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24

Reach versus Frequency Strategy? • • Reach: New products Undefined markets Brands with large shares, loyal customers Infrequently purchased products • • • Frequency: Strong competition Complex message Weak brand loyalty Target market that is well defined Frequently purchased products © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 25

Alternative Media Plans © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 26

Frequency Value Planning • The object of frequency value planning is to select that media schedule that generates the most exposure value per GRP. • Frequency value planning can be broken down into 5 steps: • • • Estimate the exposure utility Estimate the frequency distribution Estimate the OTS value at each OTS level Determine the total value across all OTS levels Develop an index of exposure efficiency © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 27

Frequency Distributions and Valuations of Two Media Schedules © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 28

Figure 16. 2: Continuous Schedule 1. Continuous advertising schedule: an equal number of ad dollars are invested throughout the campaign. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 29

Figure 16. 2: Pulsing Schedule 2. Pulsing: some advertising is used during every period of the campaign, but the amount of advertising varies from period to period. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 30

Figure 16. 2: Flighting Schedule 3. Flighting: the advertiser varies expenditures throughout the campaign and allocates zero expenditures in some months. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 31

Recency Planning (a. k. a. The Shelf-Space Model) The recency principle is built on three interrelated ideas: 1. Consumers’ first exposure to an advertisement for a brand is the most powerful 2. Advertising’s primary role is to influence brand choice, and advertising does influence choice for a subset of consumers who are in the market of the product category at the time a brand in that category advertises 3. Achieving a high level of weekly reach for a brand should be emphasized over acquiring heavy frequency © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 32

Cost 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) © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 33

Use CPM With Caution! • Measures of cost efficiency, not of effectiveness • Lack of comparability across different audiences, different media, and different dayparts • Misused unless vehicles within a particular medium are compared on the same basis • Audience measurement can be challenging (pass along readership, duplication, circulation estimates) © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 34

Media-Scheduling Software 1. User develops a media database 2. User selects criterion for schedule optimization (e. g. , reach, effective reach, frequency, GRPs, . . . ) 3. User specifies budget constraints (max. , min. ) and max. /min. number of insertions per vehicle 4. User seeks out the optimum media schedule © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 35

Esuvee Safety Campaign © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 36

Media Database for the Esuvee Safety Campaign © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 37

ADPlus Magazine Schedule for the Esuvee Safety Campaign (cont’d) © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 38

Table 16. 6: ADPlus Magazine Schedule for the Esuvee Safety Campaign © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 39

The Diet Dr Pepper Plan • Campaign Target: • Adults ages 18 to 49 who were present or prospective diet soft-drink consumers • Campaign Objectives: 1. Increase Diet Dr Pepper sales by 4% and improve its growth rate to at least 1. 5 times that of the diet soft-drink category 2. Heighten consumers’ evaluations of the key product benefit and image factors that influence brand choice in this category 3. Enhance those key brand-personality dimensions that differentiate Diet Dr Pepper from other diet drinks © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 40

Table 16. 7: Media Plan for Diet Dr Pepper © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 41

Saab 9 -5’s Media Plan • 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 testdrive 4. Retail 11, 000 units of 9 -5 during introductory year © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 42

Table 16. 8: Media Plan for the Saab 9 -5 © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 43