1 chapter 5 advertising: media planning. 2 media planning “a plan of action to communicate a...

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Chapter 5Advertising: Media Planning

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Media Planning

“A plan of action to communicate a message to a target market a the right time, and right frequency.”

The goal of a media plan is to be efficient: to gain maximum exposure at minimum cost.

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Media Planning

Advertising PlanAdvertising PlanIMCPlanIMCPlan

Media PlanObjectivesStrategiesExecution

Media PlanObjectivesStrategiesExecution

CreativePlan

CreativePlan

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Media Brief

Media planners require essential information from the client.

1. Market Profile

2. Competitor Media Strategy

3. Target Market Profile

4. Media Objectives

5. Budget

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Media Plan

“A document outlining how a client’s budget will be spent.”

Media ObjectivesMedia Objectives

Media StrategiesMedia Strategies

Media ExecutionMedia Execution

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Media Objectives

Who is the target market?

What is the message?

Where are the priority markets?

When is the best time to advertise?

How many, often, long?

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Media Strategy

Numerous factors are evaluated and they are usually ranked based on priority.

• Target market and media matching strategy

• Creative strategy influences media choices

• Coverage decisions are based on the budget

• Timing decisions are crucial for scheduling

• Reach, frequency, and continuity priorities

• Budget

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Target Market Matching Strategies

Knowledge of a target’s media consumption habits helps define the media strategy.

ShotgunShotgun

Profile MatchProfile Match

RifleRifle

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Market Coverage

The budget available often dictates the extent of market coverage.

NationalNational

WestWest CentralCentral EastEast

Key MarketsKey MarketsCategory and brand development indexes are used to set market priorities

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Media Scheduling

Even Skip

Pulse Seasonal

Blitz Build-Up

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Reach / Frequency / Continuity

ReachReach

FrequencyFrequency

ContinuityContinuity

Total audience exposed to a message one or more times in a period, usually a week.

The average number of times a message has been exposed to an audience over a period of time.

The length of time required to generate impact on a target.

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Media Execution

Selecting the right media is usually a three stage decision process.

1. Type of Media MagazineTelevision

2. Class of Media SportsNetwork

3. Specific Medium Sports Illustrated CTVWhen selecting a specific medium, CPM is a determining factor.

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Comparing Media Alternatives

CPMCPM The cost of the ad divided by the circulation (in thousands).

Magazine Cost Circulation CPM

ROB $18,800 363,700

National Post Business

$15,010 311,300

Canadian Business $14,000 80,500

ROB and National Post Business have a circulation advantage since they are distributed by newspapers that own the magazines.

Formula: (Cost of the ad/circulation) x 1000

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Comparing Media Alternatives

CPMCPM The cost of the ad divided by the circulation (in thousands).

Magazine Cost Circ CPM

ROB $18,800 363,700 $51.69

National Post Business

$15,010 311,300 $48.22

Canadian Business $14,000 80,500 $173.91

ROB and National Post Business have a circulation advantage since they are distributed by newspapers that own the magazines.


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Scheduling and Budget Summary

1. A blocking chart summarizes in a few pages all of the media execution details: media usage, market coverage, weight levels, reach and frequency, and timing of the campaign.

2. The budget summary classifies spending by medium, region, and time of year.

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Assessing Media Alternatives

Medium Pro Con

Television

Radio

Magazines

Newspapers

The strengths and weaknesses of all media options are evaluated.

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Medium Pro Con

Television Impact High Cost

Reach Clutter

Radio Targeting Fragmentation

Frequency Message (Sound only)

The strengths and weaknesses of all media options are evaluated.

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Medium Pro Con

Newspaper Local Reach Short Life

Key Market Coverage Clutter

Magazine Targeting Clutter

Message Quality Low Frequency

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Calculating the Cost of Media

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Newspaper Cost Calculation

Newspaper rates are based on a per line rate

There are two ways to calculate lines – MAL and Agate

Some newspapers use one way, some use another

Usually, the line rate goes down as you advertise more = Volume discounts

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Calculating Newspaper Costs

The Globe and Mail

Assuming you spend only $25,000 per year

Find the cost of:

320 line ad in the National Paper on Saturday for four Saturdays

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The Globe and MailAssuming you spend only $25,000 per

yearFind the cost of: 320 line ad in the National Paper on

Saturday for four SaturdaysAnswer:320 X $23.39 x4 = $29,939.20

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The Toronto Star

A 3000 line ad in the Saturday edition for 2 Saturdays

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The Toronto Star

A 3000 line ad in the Saturday edition for 2 Saturdays

Answer:

3000 x $20.78 x 2 = $124,680

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Factors Influencing Newspaper Rates

PositionChargePositionCharge

ColourColour

InsertsInserts

A request for a specific page or section increases the cost.

Colour increases cost but it also increases awareness.

Rates are quoted on a CPM basis and are influenced by number of pages.

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Comparing Newspapers for Efficiency

Specs. Star Sun Globe

Size 1000 lines 1000 lines 1000 lines

Line Rate $15.90 $6.89 $27.43

Total Cost $15,900 $6,890 $27,430

Circulation 454,831 230,644 354,574

CPM $34.96 $29.88 $77.35


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Buying Magazine Space

The cost of the ad is determined by multiplying the page rate (by size) by the frequency.

If a 1P, 4C ad costs $20,000 and it runs in 6 consecutive issues of a monthly magazine, the total cost would be:

$20,000 x 6 = $120,000.

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Magazine Cost Calculation

PlanCanadian Geographic

1 Page 4 Colour

4 insertions

PlanCanadian Geographic

1 Page 4 Colour

4 insertions

The base rate would be the 3-5 times rate on the rate card.

Cost Calculation:

$10,755 x 4 = $43,020

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Find the cost of the following ad in Canadian Living

1 page, 4 times in the National edition

What is the cost of the ad?

What is the CPM?

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Find the cost of the following ad in Canadian Living

1 page, 4 times in the National edition

Answer:

$28,575 x 4 = $114,300

What is the CPM

($114,300/555,884) X 1000 = $205.62

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Magazine Discounts

FrequencyFrequency


CorporateCorporate

The number of times the ad is run.

The length of time during one year period.

Total pages bought by all company brands during one year period.

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Colour and Position Charges

Colour advertising is the norm in magazines so rates are usually quoted as 4-colour rates. Higher rates are charged for cover positions and specific page requests.

CoversCoversInside Front (IFC), inside back (IBC), and outside back (OBC). About 20% more.

Position ChargePosition Charge

A specific page request increases the cost per page by 15 – 20%.

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Comparing Magazines for Efficiency

Specifications Canadian Living Flare

1P, 4C

Circulation

CPM

Both magazines have different rates and circulations but the CPM is almost identical.

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Comparing Magazines for Efficiency

Specifications Canadian Living Flare

1P, 4C $29,160 $15,600

Circulation 555,884 172,362

CPM $52.84 $90.51

Both magazines have different rates and circulations but the CPM is almost identical.

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Television Advertising Rates

TV rates are not published; they are subject to negotiations between advertising agencies and the networks and stations. Rates are influenced by:

• Supply and Demand

• Type of Program

• Time of Day

• Length of Commercial

• Gross Rating Points

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GRPs and Television

GRPs consider the size of the audience (reach) and frequency.

Audience Rating # of Spots GRPs

18 – 49 30 2 60

18 – 40 25 2 50

18 – 40 20 2 40

Total 150

If 6 spots were scheduled in one week the weight level would be 150 GRPs.

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Television Discounts

FrequencyFrequency

VolumeVolume


For a minimum number of spots in a specified period.

For a $ volume commitment in a one-year period.

For a minimum number of spots over an extended period (one-year).

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Buying Radio Time

Advertisers can request specific times or opt for a reach plan.

ReachPlanReachPlan

Commercials are rotated through the various dayparts and days of the week based on predetermined frequency.

Vertical rotation refers to time of day; horizontal rotation refers to day of week.

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Radio Grid Rates

Radio stations establish grid rates which are different rates based on the frequency and volume of advertising an advertiser purchases.

As an advertiser purchases more spots or extends the schedule over a longer period, they will move to another grid—a grid with lower rates. The more you buy, the less you pay per spot!

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Radio Discounts

FrequencyFrequency

VolumeVolume


For a minimum number of spots in one week.

For buying a large number of spots in a specified period.

Scheduling ads over an extended period (26, 39, 52 weeks).

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Buying Radio Time

Reach Plan16 spots per week

16 weekDrive to work time

Reach Plan16 spots per week

16 weekDrive to work time

A reach plan saves an advertiser money!

16 spots / week x 16 weeks x $250 = $64,000.

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Buying Radio Time

Specific RequestPlan

680 News – 30 sec spots8 Breakfast

8 DriveEach Week for 16 weeks

Specific RequestPlan

680 News – 30 sec spots8 Breakfast

8 DriveEach Week for 16 weeks

The total number of spots in the buy are calculated first.

Breakfast: 8 x 16 = 128

Drive: 8 x 16 = 128

Total spots: 256

Breakfast: $150 x 128 = $19,200

Drive: $85 x 128 = $10,880

Total Cost = $69,760

1 chapter 5 advertising: media planning. 2 media planning “a plan of action to communicate a...

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