Media Planning and Decisions Major Decisions in Advertising

  • Slides: 48
Download presentation
Media Planning and Decisions

Media Planning and Decisions

Major Decisions in Advertising

Major Decisions in Advertising

The Traditional Media Landscape Satellite radio stations 2 Broadcast networks (TV and cable) 100

The Traditional Media Landscape Satellite radio stations 2 Broadcast networks (TV and cable) 100 TV stations 3, 510 Consumer magazines 5, 340 Newspapers (daily and weekly) 8, 100 Radio stations 13, 898

Spending by Media (Billions of Dollars)

Spending by Media (Billions of Dollars)

An Overview of Media Planning l l l Some basic terms and concepts The

An Overview of Media Planning l l l Some basic terms and concepts The media plan Problems in media planning

Some Basic Terms and Concepts l l Media planning: the series of decisions involved

Some Basic Terms and Concepts l l Media planning: the series of decisions involved in delivering the promotional message to the prospective purchasers and/or users of the product or brand. Media objectives: goals to be attained by the media strategy and program. Media strategies: decisions on how the media objectives can be attained. Medium: the general category of available delivery systems, which includes broadcast media, print media, direct mail, outdoor advertising, and other support media.

Some Basic Terms and Concepts l l Media vehicle (載體): the specific carrier within

Some Basic Terms and Concepts l l Media vehicle (載體): the specific carrier within a medium category. Reach: a measure of the number of different audience members exposed at least once to a media vehicle in a given period of time. (actual) Coverage: the potential audience that might receive the message through a vehicle. (potential) Frequency: the number of times the receiver is exposed to the media vehicle in a specific period.

The Media Plan Situation analysis Marketing strategy plan Creative strategy plan Setting media objectives

The Media Plan Situation analysis Marketing strategy plan Creative strategy plan Setting media objectives Determining media strategy Selecting broad media classes Selecting media within class Media use decision — broadcast Media use decision — print Media use decision — other media

Problems in Media Planning l Insufficient information l l The timing of measurement: sweeps

Problems in Media Planning l Insufficient information l l The timing of measurement: sweeps periods – February, May, July, and November. Inconsistent terminologies Time pressures Difficulty measuring effectiveness

Developing the Media Plan l l Market analysis Establishment of media objectives Media strategy

Developing the Media Plan l l Market analysis Establishment of media objectives Media strategy development and implementation Evaluation and follow-up

Market Analysis and Target Market Identification l l l To whom shall we advertise?

Market Analysis and Target Market Identification l l l To whom shall we advertise? What internal and external factors are operating? Where to promote?

To Whom Shall We Advertise? l Secondary information l l l Government, e. g.

To Whom Shall We Advertise? l Secondary information l l l Government, e. g. age, education. Market research companies, e. g. SMRB, MRI, 東方線上 – E-ICP & CMMS. Index number l l l Figure 10 -5 The high index may be a result of a low denominator. (Figure 10 -6)

Example 18~24 25~34 35~44 45~ Population 15. 1% 20. 5% 39. 3% Product use

Example 18~24 25~34 35~44 45~ Population 15. 1% 20. 5% 39. 3% Product use 18% 25% 21% 36% Index 119 100 102 91

Internal and External Factors l l Internal factors: the size of media budget, managerial

Internal and External Factors l l Internal factors: the size of media budget, managerial and administrative capability, the organization of the agency. External factors: the cost of media, changes in technology, competitors.

Where to promote? l Buying power index l l l Based on population, effective

Where to promote? l Buying power index l l l Based on population, effective buying income and retail sales. Brand development index Category development index

Brand Development Index (BDI) Percentage brandsales to to Percentage ofofbrand total U. S. sales

Brand Development Index (BDI) Percentage brandsales to to Percentage ofofbrand total U. S. sales market total sales in in market BDI = X 100 Percentage total U. S. Percentage of of total population in market

Category Development Index (CDI) Percentage of product category total sales in market CDI =

Category Development Index (CDI) Percentage of product category total sales in market CDI = Percentage of total population in market X 100

Example 北 中 南 東 Population 40% 27% 23% 10% Brand 30% 35% 5%

Example 北 中 南 東 Population 40% 27% 23% 10% Brand 30% 35% 5% Product 20% 50% 15% BDI 75 111 152 50 CDI 50 185 65 150

Brand Category Analysis High CDI Low BDI High market share Good market potential Low

Brand Category Analysis High CDI Low BDI High market share Good market potential Low CDI High BDI High market share Monitor for sales decline Low market share Poor market potential

Brand Category Analysis Low CDI High BDI Low BDI The market usually represents The

Brand Category Analysis Low CDI High BDI Low BDI The market usually represents The product category shows good sales potential for both high potential but the brand the product and the brand. isn’t doing well; the reason should be determined. The category isn’t selling well Both the product category and but the brand is; may be a the brand are doing poorly; good market in which to not likely to be a good place to advertise but should be advertise. monitored for sales decline.

Media Planning Criteria Considerations l l l l The media mix Target market coverage

Media Planning Criteria Considerations l l l l The media mix Target market coverage Geographic coverage Scheduling Reach versus frequency Creative aspects and mood Flexibility Budget considerations

Target Audience Coverage Population excluding target market Target Market Proportion Full Market Coverage Media

Target Audience Coverage Population excluding target market Target Market Proportion Full Market Coverage Media coverage Media overexposure Partial Market Coverage Exceeding Market

Three Scheduling Methods l l Continuity: a regular pattern of advertising. Flighting: a less

Three Scheduling Methods l l Continuity: a regular pattern of advertising. Flighting: a less regular schedule with intermittent periods of advertising and nonadvertising. Pulsing: a combination of the above two methods. Pros & Cons of the three methods

Three Scheduling Methods Continuity Flighting Pulsing Jan Feb Mar Apr May Jun Jul Aug

Three Scheduling Methods Continuity Flighting Pulsing Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Reach versus Frequency l Reach l l l Awareness Trial Frequency l l The

Reach versus Frequency l Reach l l l Awareness Trial Frequency l l The actual audience for a commercial and a program Figure 10 -18

Reach and Frequency Reach of One Program Reach of Two Programs Total market audience

Reach and Frequency Reach of One Program Reach of Two Programs Total market audience reached Duplicated Reach of Both Unduplicated Reach of Both Total reached with both shows Total reach less duplicate

GRPs l l Gross rating points (GRPs) = Reach × Frequency Target rating points

GRPs l l Gross rating points (GRPs) = Reach × Frequency Target rating points (TRPs) 100 TRPs = 32% × 3. 125 = 37. 2% × 2. 688 = 44. 5% × 2. 247 Relationship between GRPs & awareness l l l 2500 → 70% 1000~2500 → 33% <1000 → 0%

Effects of Reach and Frequency l l One exposure of an ad to a

Effects of Reach and Frequency l l One exposure of an ad to a target group within a purchase cycle has little or no effect in most circumstances. Since one exposure is usually ineffective, the central goal of productive media planning should be to enhance frequency rather than reach. The evidence suggests strongly that an exposure frequency of two within a purchase cycle is an effective level. Beyond three exposures within a brand purchase cycle or over a period of four or even eight weeks, increasing frequency continues to build advertising effectiveness at a decreasing rate but with no evidence of decline.

Effects of Reach and Frequency l l l Although there are general principles with

Effects of Reach and Frequency l l l Although there are general principles with respect to frequency of exposure and its relationship to advertising effectiveness, differential effects by brand are equally important. Frequency response principles or generalizations do not vary by medium. The data strongly suggest that wearout is not a function of too much frequency. It is more of a creative or copy problem.

Graph of Effective Reach

Graph of Effective Reach

Factors Important in Determining Frequency Levels l Marketing Factors l l l l Brand

Factors Important in Determining Frequency Levels l Marketing Factors l l l l Brand history Brand share Brand loyalty Purchase cycles Usage cycle Competitive share of voice Target group

Factors Important in Determining Frequency Levels l Message or Creative Factors l l l

Factors Important in Determining Frequency Levels l Message or Creative Factors l l l l Message complexity Message uniqueness New vs. continuing campaigns Image versus product sell Message variation Wearout Advertising units

Factors Important in Determining Frequency Levels l Media Factors l l l Clutter Editorial

Factors Important in Determining Frequency Levels l Media Factors l l l Clutter Editorial environment Attentiveness Scheduling Number of media used Repeat Exposures

Budget Considerations l l Absolute cost: the actual total cost required to place the

Budget Considerations l l Absolute cost: the actual total cost required to place the message. Relative cost: the relationship between the price paid for advertising time or space and the size of the audience delivered. l l l Cost per thousand (CPM) → magazine Cost per rating point (CPRP) → broadcast media Daily inch rate → newspaper

Determining Relative Cost of Media Cost per thousand (CPM) CPM = Cost of ad

Determining Relative Cost of Media Cost per thousand (CPM) CPM = Cost of ad space (absolute cost) Circulation X 1, 000

Determining Relative Cost of Media Cost per rating point (CPRP) CPRP = Cost of

Determining Relative Cost of Media Cost per rating point (CPRP) CPRP = Cost of commercial time Program rating

Example (Magazine) 商業周刊 哈佛商業評 論 康健雜誌 Per-page Cost (封底) Circulation 460, 000 300, 000

Example (Magazine) 商業周刊 哈佛商業評 論 康健雜誌 Per-page Cost (封底) Circulation 460, 000 300, 000 260, 000 144, 318 25, 000 65, 000 CPM 3, 187. 4 12, 000 4, 000

Example (Newspaper) 蘋果日報 爽報 Per-page Cost (中跨全頁) 1, 450, 000 240, 000 Circulation 526,

Example (Newspaper) 蘋果日報 爽報 Per-page Cost (中跨全頁) 1, 450, 000 240, 000 Circulation 526, 578 172, 500 CPM 2, 753. 6 1, 391. 3

Limitations of CPM l Overestimate l l l Underestimate l l Readers per copy

Limitations of CPM l Overestimate l l l Underestimate l l Readers per copy Pass-along rate: the number of people who read the magazine without buying it, e. g. 遠見, 新台灣. Target CPM, e. g. 商業週刊, 哈佛商業評論. Quantitative (NOT qualitative)

Television Pros and Cons Advantages Disadvantages Mass coverage Low selectivity High reach Short message

Television Pros and Cons Advantages Disadvantages Mass coverage Low selectivity High reach Short message life Impact of sight, sound and motion High absolute cost High prestige High production cost Low cost per exposure Clutter Attention getting Favorable image

Radio Pros and Cons Advantages Disadvantages Local coverage Audio only Low cost Clutter High

Radio Pros and Cons Advantages Disadvantages Local coverage Audio only Low cost Clutter High frequency Low attention getting Flexible Fleeting message Low production cost Well-segmented audience

Magazine Pros and Cons Advantages Disadvantages Segmentation potential Long lead time for ad placement

Magazine Pros and Cons Advantages Disadvantages Segmentation potential Long lead time for ad placement Quality reproduction Visual only High information content Lack of flexibility Longevity Multiple readers

Newspaper Pros and Cons Advantages Disadvantages High coverage Short life Low cost Clutter Short

Newspaper Pros and Cons Advantages Disadvantages High coverage Short life Low cost Clutter Short lead time for placing ads Low attention getting Ads can be placed in interest sections Poor reproduction quality Timely (current ads) Selective reader exposure Reader controls exposure Can be used for coupons

Outdoor Pros and Cons Advantages Disadvantages Location specific Short exposure time High repetition Short

Outdoor Pros and Cons Advantages Disadvantages Location specific Short exposure time High repetition Short ads Easily noticed Poor image Local restrictions

Direct Mail Pros and Cons Advantages Disadvantages High selectivity High cost per contact Reader

Direct Mail Pros and Cons Advantages Disadvantages High selectivity High cost per contact Reader controls exposure Poor image (junk mail) High information content Clutter Repeat exposure opportunities

Internet Pros and Cons Advantages Disadvantages User selects product information Limited creative capabilities User

Internet Pros and Cons Advantages Disadvantages User selects product information Limited creative capabilities User attention and involvement Websnarl (crowded access) Interactive relationship Technology limitations Direct selling potential Few valid measurement techniques Flexible message platform Limited reach