Advertising Principles and Practices Media Planning and Buying

Advertising Principles and Practices Media Planning and Buying 1

Questions We’ll Answer • What is media aperture, and why is it important? • How do media planners calculate media objectives? • What are the key media strategy decisions? • What are the responsibilities of media buyers? Prentice Hall, © 2009 2

Audi Reaches Elusive Audience • Audi needed to launch its new luxury A 3 hatchback on a comparatively reduced budget. a Web-based • They used alternative reality game to reach the skeptical, affluent 24 Visit the - to 30 -year- old males. Site • A variety of media drove traffic, created buzz, and engaged the audience. Prentice Hall, © 2009 11 -33

The Media Planning Side of Advertising • Advertising budgets are shifting away from traditional media (newspapers, TV, radio) to online and alternative media. • Media planning and buying have become more creative due to media fragmentation and the explosion of new media. • Media is used in advertising, public relations, sales promotion and integrated marketing communications (IMC). Prentice Hall, © 2009 4

Key Players • Traditionally, advertising agencies develop media plans. • Lately, media buying companies have assumed planning roles. • Agencies have spun off media function as separate companies. • Some media planning is done by companies in-house. • Specialized “new media” agencies have emerged. Prentice Hall, © 2009 5

Media Research: Information Services • Client Information – About customers, past efforts, sales, budget • Market Research – About markets and product categories; supplied by companies MRI, Scarborough, Mendelsohn • Competitive Advertising – Share of voice is a percentage of total advertising spending by one brand in a product category. • Media Usage Profiles – The size and makeup of various media audiences – Supplied by companies Nielsen, Arbitron, ABC, Simmons • Media Coverage Area – Designated marketing area (DMA) is used in TV media • Consumer Information – Used to locate target audiences within media markets Prentice Hall, © 2009 6

The Central Role of Media Research Prentice Hall, © 2009 7

The Media Plan • Media Plan: a written document summarizing the objectives and strategies pertinent for placing a company’s brand messages. • Goal: finding the most efficient and effective ways to deliver messages to a targeted audience. Prentice Hall, © 2009 Replace 8

Key Media Planning Decisions • Target Audience and Media Use – Match the advertiser’s target with a particular medium’s audience. • The Aperture Concept – Aperture: when consumers are most receptive to a brand message. – The goal is to reach the right people at the right time with the right message. Principle: Advertising is most effective when it reaches the right people at the right time and place with the right message. Prentice Hall, © 2009 9

Key Media Planning Decisions • Measured Media Objectives – Goal: to achieve the best media mix to maximize reach and frequency and generate the greatest impact for the money spent. – Reach: percent of different people exposed to the message. – Frequency: the number of times exposure is expected. – Effective frequency: combines reach and frequency; add frequency to reach until the level at which people respond. – Media efficiency and waste: excessive overlap or too much frequency. Principle: Reach is the first place to start in setting objectives for a media plan. Prentice Hall, © 2009 10

Key Media Planning Decisions • Media Mix Selection – Multiplying Media Strengths • Media chosen based on plan objectives and media strengths – GRPs and TRPs – Cross Media Integration • Various media work together to create coherent brand communication; synergy between different media messages • Image transfer—how radio reinforces TV messages Prentice Hall, © 2009 11

Calculating GRPs • GRPs (Gross Rating Points) are found by multiplying each media vehicle’s rating by the number of insertions, then adding up the total of all the vehicles. Table 11. 1. A Calculating GRPs – Plan A R=35; F=6. 9 Program HH Rating Insertions GRPs 6 7 9 4 8 8 Total 48 56 72 32 208 Survivor Lost American Idol 24 Table 11. 1. B Calculating GRPs – Plan B R=55; F=3. 2 Program HH Rating Insertions GRPs 6 7 5 4 8 8 Total 48 56 40 3 176 Survivor Desperate Housewives Boston Legal Monday Night Football Prentice Hall, © 2009 12

Calculating TRPs • TRPs (Targeted Rating Points) adjusts the GRP calculation so it more accurately reflects the percentage of the target audience watching the program, thus reducing waste coverage. Table 11. 2 Program Survivor Lost American Idol 24 Calculating Targeted GRPs – Plan A HH Rating 6 7 9 4 Targeted Rating 3 3 1 3 Prentice Hall, © 2009 Insertions GRPs 8 8 Total 24 24 80 13

Media Strategy Tools and Techniques • Media Strategy – The way media planners determine the most cost effective media mix to reach the target audience and satisfy the media objectives. – Includes decisions focusing on who (target audience), what (the media used), when (time frame), how long (duration), and how big (size). Prentice Hall, © 2009 14

Delivering on Objectives • Plans may emphasize reach or frequency • High reach strategy – Used to deliver reminders for well-known products – Used to launch a new, easy-to-understand product • Low frequency strategy – Used with well-known brands and simple messages • High frequency strategy – Used with more complex products that require repetition – Used to build excitement about a new product or event – Used to counter competition or build share of voice Principle: The tighter the focus on a target market, the easier it is to find appropriate media to deliver a relevant message. Prentice Hall, © 2009 15

Delivering on the Targeting Strategy • Media Use – The goal is to match consumer insights with media information. • Geographical Strategies – Heavy up in DMAs where the product is available or projected sales are higher. – Category development index (CDI) determines rates of consumption for a product category. – Brand development index (BDI) is determines the strength of the brand in geographical areas. Principle: The CDI tells you where the category is strong and weak, and the BDI tells you where your brand is strong and weak. Prentice Hall, © 2009 16

Delivering on the Media Mix Strategy • Media Weighting – How much to budget in each DMA or region and for each target group. – Used with seasonality, geography, audience segments, or level of brand development by DMA. • Size, Length, and Position – Based on advertising objectives. – A technical/informational ad may require more time or space while a reminder add will require less. • Media Optimization Modeling – A computer technique that enables marketers to determine the relative impact of a media mix on product sales and optimize efficiency. Prentice Hall, © 2009 17

Scheduling Strategies • Timing strategies: When to advertise? – Seasonality, holidays, days of the week, time of day – Lead time: time between thinking about purchase and purchasing; also refers to production time to get an ad in a medium • Duration: How long? – Advertisers can’t afford to cover the entire year – If the period is too short, the message may not have sufficient impact – If the period is too long, the ads may suffer from wearout • Continuity: How often? – How advertising is spread out over the length of the campaign – Continuous strategy spreads evenly over campaign period Prentice Hall, © 2009 18

Scheduling Strategies • Flighting strategy – Alternating periods of intense advertising activity (bursts) and no advertising (hiatus). • Pulsing strategy – Advertising is intensified (peaks) before an aperture and reduced to lower levels (valleys) until the aperture reopens; bursts of activity. Prentice Hall, © 2009 19

Cost Efficiency: CPMs and CPPs • Used to measure a target audience’s size against the cost of reaching that audience • TCPM (Target CPM) and TCPP (Target CPM) can be figured using the percentage of viewers or readers in the target audience Cost per thousand (CPM) Cost of message unit x 1, 000 Gross Impressions Cost per point (CPP) Cost of message unit Program or issue rating Prentice Hall, © 2009 20

The Media Budget • The size of the budget greatly affects media decisions – Local vs. national – TV vs. radio • At the end of the planning process, the media planner develops a pie chart showing media allocations Prentice Hall, © 2009 21

IMC Media and Contact Point Planning • IMC considers all important brand contact points, not just traditional mass media and advertising. – See www. prenhall. com/moriarty for a list • Contact Point Planning – Identify a wide variety of contact points for achieving goals – Implement integrated communication programs that eliminate waste Prentice Hall, © 2009 22

Sample List of Contact Points Visit the Site Prentice Hall, © 2009 11 -23

Global Media Strategies • Global media do not currently exist. • Advertisers must deal with different networks and different vehicles in different countries. • Despite regional limitations, satellite television gives advertisers the opportunity to deliver unified messages across continents. • North American, European, Asian, and Latin American cable companies offer international networks. Prentice Hall, © 2009 24

Major Sections of a Media Plan • Objectives • Strategic plan development: consumer insights

Media Buying • A media plan is a set of recommendations a client must approve before further action. • Once approved, media buyers convert objectives and strategies into tactics. – – – – – Provide inside information to media planners Select specific media vehicles Negotiate and contract for time and space Bargain for preferred positions Secure extra support/value-added media services Monitor media choices during and after the campaign Handle billing and payment Ensure make goods Perform post-campaign evaluation Prentice Hall, © 2009 28

Functions of a Media Buyer Prentice Hall, © 2009 29

Media Planning Trends • Unbundling Media Planning and Buying – Agencies media departments have become separate, independent profit centers and can work for the agencies’ competition, and compete with agencies for the planning function. • Online Media Buying – Goggle's Adwords and e. Bay’s Media Marketplace are selling Internet advertising online. – Zimmerman (advertising agency) sells advertising online for a number of media including print, radio, direct mail, in-store ads, and the Internet. • New Forms of Media Research – Online media research (hits and clicks) don’t measure impact. – Traditional media monitoring systems don’t address new ways media is used and systems like Ti. Vo and interactive TV. – Most media research measures independent media, not the effectiveness of combined media. Prentice Hall, © 2009 30

Google Ad. Words • With Google Ad. Words, you create your own ads and choose keywords (words or phrases related to your business). When people search on Google using one of those keywords, your ad may appear next to the search results. People can then click your ad to make a purchase or learn more about you. Visit the Site Prentice Hall, © 2009 31

e. Bay Media Marketplace • Called “A New Approach to Offline Advertising, ” The e. Bay Media Marketplace offers advertisers a place to make planned buys in the national cable TV market and last-minute buys on radio in all 300 top U. S. radio markets. Visit the Site Prentice Hall, © 2009 32

Discussion Questions 33

Discussion Question 1 • You have just begun a new job as a media planner for a new automobile model from General Motors. • The planning sequence will begin in four months, and our media director asks you what data and information you need from the media research department. • What sources should you request? • How will you use each of these sources in the planning function? Prentice Hall, © 2009 34

Discussion Question 2 • The marketing management of Mc. Donald’s restaurants has asked you to analyze the aperture opportunity for its breakfast entrees. • What kind of analysis would you present to management? • What recommendations could you make that would expand the restaurant’s nontraditional, as well as traditional, media opportunities? Prentice Hall, © 2009 35

Discussion Question 3 • Your client is a major distributor of movies. Its early media plan for magazines has been settled, and you are in negotiation when you learn that a top publishing company is about to launch a new magazine dedicated to movie fans and video collectors. • Although the editorial direction is perfect, there is no valid way to predict how the magazine will be accepted by the public. Worse, there won’t be solid research on readership for at least a year. • The sales representative offers a low charter page rate if the advertiser agrees to appear in each of the first year’s 12 issues. To use it you will have to remove one of the established magazines from your list. • Is the risk worthwhile? Should you bother the client with this information, considering that the plan is already set? • The new magazine will also be available online. Should you take advantage of this opportunity? • Make some recommendations to your client and explain your reasoning. Prentice Hall, © 2009 36

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