3 08 Manage media planning and placement to
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3. 08 Manage media planning and placement to enhance return on marketing investment
Determine ADVERTISING REACH and MEDIA COSTS
ADVERTISING REACH • WHAT: Number of PEOPLE THAT ARE EXPOSED to your message: – CALCULATION (%): Divide the target audience exposed to an ad by the total target audience • There are 1, 500, 000 fans of Tar Heel Football. A recent advertisement was viewed by 375, 000 of them. (375, 000/1, 500, 000 = 25% ADVERTISING REACH) • WHY: Determines if ad targeted the right audience effectively. • HOW: RESOURCES – Circulation numbers, subscriptions or rating points
FREQUENCY and REACH • FREQUENCY : Number of times you expose each person to your message Reach WITHOUT Frequency = Wasted Money
NEWSPAPER MEDIA COSTS – Factors affecting COSTS (Lower than most media): • Position and color of ad • Split-runs (print different ads for the same product) • National ads cost more than local – Types of RATES: • PREFERRED POSITION: ads placed in location with best exposure for their target market (Ex: Sports ad in the Sports section instead of Garden section) • Flat: one time only • Sliding scale/ VOLUME DISCOUNTS: more published = cost less per ad • Combination: ads and inserts
MAGAZINE MEDIA COSTS – Factors affecting COSTS (Higher than Newspaper): • • CIRCULATION: Number of people reached Preferred Position Spreads Split-runs – Types of RATES: • Size • Frequency • Combination
TELEVISION MEDIA COSTS – Factors affecting COST: • RATINGS FOR CERTAIN SHOWS – Determines which shows attract a high volume of viewers • Time availability – High demand for time during peak winter seasons • Length of commercials – Types of RATES: • Set according to “GROSS RATING POINTS” (GRPs) – GRPS = REACH X FREQUENCY • RUN OF SCHEDULE (ROS) – Ad is run at the station’s convenience for lower cost
RADIO MEDIA COSTS – Factors affecting COST: • “DAYPART” – Morning drive time, Evening drive time, Daytime, Nighttime • Length • NUMBER OF LISTENERS – Types of RATES: • RUN-OF-SCHEDULE (ROS) • TOTAL AUDIENCE PLANS (TAPs) – PACKAGED PLANS offer reduced rates when purchase a series of commercials instead of just one
INTERNET MEDIA COSTS – Factors affecting COST: • Creative type (Text, image, sound, etc. ) • Size • Placement – Types of RATES: • COST-PER-THOUSAND (aka) COST-PER-MILE (CPM) • COST-PER-CLICK (CPC)
OTHER MEDIA COSTS OUT OF HOME – Factors affecting COST: • Size of the space • Length of time • Production costs – Types of RATES: • Determined by: – Visibility – Location – Population DIRECT MAIL – Factors affecting COST: • Production costs • Mailing list costs • Labor costs – Types of RATES: • Postage • Shipping CAN TARGET A SPECIFIC MARKET
ABSOLUTES vs. RELATIVE MEDIA COSTS ABSOLUTE COSTS RELATIVE COSTS TOTAL COST to run an ad Determines which one media is most cost effective = Cost of production + Cost for time/space purchased • COST PER THOUSAND (CPM) • Cost per GROSS RATING POINT (GRP)
“You Do”- FOLDABLES: How are Media Costs Determined? • • • Circulation (size of the audience) – Circulation is the most significant factor affecting media costs. – In most cases, the larger the media vehicle’s audience, the higher the cost of advertising space or time will be. RATE CARDS: Price lists showing rates for space or time Production costs – High-quality television and magazine advertisements can cost a great deal to produce. – On the other hand, local radio and newspaper advertisements are relatively inexpensive to produce. Preferred space positions – Airing an advertisement at a specific time or running it on a particular page generally costs more. Available discounts – Discounts are often offered on the basis of size, frequency, or dollar volume. Demographic makeup of the medium’s targeted audience – You can typically expect to pay higher advertising rates in media vehicles that have narrowly defined audiences than in ones that are targeted at general audiences. Reproduction quality – Magazines with excellent reproduction quality, such as The New Yorker, can command higher rates than publications with lower-quality reproduction. Gross Rate Point (GRP) = Reach x Frequency Cost Per Thousand (CPM) =(Cost of the ad × 1, 000) ÷ Target audience
SELECT ADVERTISING MEDIA
IMPORTANCE OF SELECTING ADVERTISING MEDIA • Media cost is the largest cost of advertising • Complex selection process • Must select the most effective media to reach target market
SITUATIONAL FACTORS to CONSIDER • OBJECTIVES (Goals) of the advertisement • TARGET MARKET – Identify what media the target market uses to most • Limit WASTE CIRCULATION (Number of people exposed to an advertising message who are not target market) • COMPETITION – Use the same advertising media to reach same target market • BUDGET – How much money can you spend? • PRODUCT • DISTRIBUTION
MEDIA FACTORS to CONSIDER • Cost • Media Coverage – EXTENSIVE COVERAGE: reaching a large audience (REACH) – INTENSIVE COVERAGE: reaching a smaller audience more often (FREQUENCY) • Geographic Coverage • Lead Time – Amount of time required to place an ad by the media • Radio has shortest • TV and Magazines have longest
QUANTITATIVE & QUALITATIVE FACTORS Quantitative • Reach • Frequency • Cost-per-thousand (CPM) Qualitative • IMPACT • Impression an ad will make • Credibility • EDITORIAL ENVIRONMENT • Management and talents of staff
STEPS TO SELECTING ADVERTISING MEDIA 1. Identify SITUATIONAL FACTORS 2. Identify MEDIA FACTORS 3. SELECT the MEDIA OUTLET 4. Determine the TIMING STRATEGY – CONTINUOUS (Steady, regular pattern) • Frequently used/purchased products – FLIGHTING (During peak sales periods ONLY) – PULSING (Bursts of advertising)
“You Do”: PROJECT 1. 2. 3. 4. Each group will be assigned one of the following: Radio, Direct Marketing, Outdoor, Newspaper or Magazine Advertising. You will need to research and identify the following information: – – – Pros of using your media for advertising Cons of using your media for advertising Types of Costs using your media advertising Organize information above in a POWERPOINT Presentation to be presented to the class. CREATE an advertisement for your media – – – Radio- Needs to be a SCRIPT read to the class Identify which station it will be on and what time of day it will be played. WHY? (Hint- needs to reach your target audience) Magazine- Needs to be a full-page ad. Identify which magazine it will be in and what day/month subscription. WHY? (Hint- needs to reach your target audience) Direct Marketing- Who is on your mailing list and when will you be mailing it out? (Define the target market) (Hint- needs to reach your target audience) Outdoor- Which road/physical location will it be located and for how long and what time of year? (Hint- needs to reach your target audience) Newspaper- Needs to be a full-page ad. (You chose if it is color or not) Which newspaper will it be in and on what day? (Hint- needs to reach your target audience)
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