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The Media Business

The word media comes from the Latin word “middle.”

Media carry messages to or from a targeted audience and can add meaning to these messages.

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Media Terminology Media Planning - A series of decisions

involving the delivery of messages to audiences.

Media Objectives - Goals to be attained by the media strategy and program.

Media Strategy - Decisions on how the media objectives can be attained.

Media - The various categories of delivery systems, including broadcast and print media.

Broadcast Media - Either radio or television network or local station broadcasts.

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Media Terminology Print Media - Publications such as newspapers,

magazines, direct mail, outdoor, and the like.

Media Vehicle - The specific message carrier, such as the Washington Post or Tonight Show.

Coverage - The potential audience that might receive the message through the the vehicle.

Reach - The actual number of individual audience members reached at least once by the vehicle.

Frequency - The number of times the receiver is exposed to vehicle in a specific time period.

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Differences Between Levels of Message Involvement and Number

of Responses

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Media Classifications

Most mass media guarantee only the opportunity for a large audience to be exposed to a brand.

Communication vehicles are specific publications, networks, channels, stations, and programs that make up a medium.

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Media Classification Levels

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Media Intrusiveness

Media vary in their degree of intrusiveness.

Ways to reduce intrusiveness include: Chose media in which the target

audience is interested in the product. Ask customers what type of information

they would like to receive, in what way, and when.

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Relative Degrees ofMedia Intrusiveness

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Print MediaPrint media include: Newspapers Magazines Directories Mail brochures Mail Packaging All other forms, which are produced by

printing and are relatively permanent

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Newspapers CharacteristicsAdvantages

High coverage Low cost Short lead time

for placing ads Ads can placed in

interest sections Timely (current

ads) Reader controls

exposure Can be used for

coupons

Disadvantages

Short life Clutter Low attention-

getting capabilities

Poor reproduction quality

Selective reader exposure

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Magazines CharacteristicsAdvantages

Segmentation potential

Quality reproduction

High information content

Longevity Multiple readers

Disadvantages

Long lead time for ad placement

Visual only Lack of flexibility

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Directories

A directory is both a reference and an advertising medium.

The most widely known is the Yellow Pages.

Yellow Pages advertising is often the primary or only form of advertising used by many small, local retailers.

A weakness of the Yellow Pages is that they are printed only once a year.

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Broadcast Media

Broadcast media include radio and television.

Broadcast media differs from print in that people often do other things while listening or viewing, so messages are fleeting.

Broadcast commercials are more intrusive than print ads.

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BMG

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Radio’s Daily Reach byDaypart for Adults 18+

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Radio Characteristics

Advantages Local coverage Low cost High frequency Flexible Low production

costs Well-segmented

audiences

Disadvantages

Audio only Clutter Low attention

getting Fleeting

message

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Television CharacteristicsAdvantages

Mass coverage High reach Impact of sight, sound,

and motion High prestige Low cost per exposure Attention getting Favorable mage

Disadvantages

Low selectivity Short message

life High absolute

cost High production

costs Clutter

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Outdoor CharacteristicsAdvantages

Location specific High resolution Easily noticed

Disadvantages

Short exposure time requires short ad

Poor image Local restrictions

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INTERACTIVE A VARIETY OF MEDIA THAT ALLOWS THE

CONSUMER TO INTERACT WITH THE SOURCE OF THE MESSAGE, ACTIVELY RECEIVING INFORMATION AND ALTERING IMAGES, RESPONDING TO QUESTIONS, AND SO ON.

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INTERACTIVE MEDIA AUDIOTEX

AUTOMATED TELEPHONE INFORMATION SERVICES CD-ROM FAX ON DEMAND INTERACTIVE TV INTERNET KIOSKS

AVAILABLE IN HOTELS, SHOPPING MALLS ONLINE SERVICES

AMERICAN ONLINE, PRODIGY SCREEN TELEPHONY

TELEPHONES EQUIPPED WITH KEYBOARD TO ENTER AND ACCESS DATA

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Internet / Interactive Media CharacteristicsAdvantages

User selects product information

User attention and involvement

Interactive relationship

Direct selling potential

Flexible message platform

Disadvantages

Limited creative capabilities

Web snarl (crowded access)

Technology limitations

Few valid measurement techniques

Limited reach

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Direct Mail CharacteristicsAdvantages

High selectivity Reader controls

exposure High information

content Opportunities for

repeat exposures

Disadvantages

High cost/contact Poor image (junk

mail) Clutter

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Media Use Decision— Print

Media Use Decision— Broadcast

Media Use Decision— Other Media

Creative Strategy Plan

Developing the Media Plan

Setting Media Objectives

Selecting Media Within Class

Selecting Broad Media Classes

Determining Media Strategy

Marketing Strategy PlanSituation Analysis

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MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION

ADVERTISING TARGET SIMMONS MARKET RESEARCH BUREAU--AUDIENCE SIZE

AND COMPOSITION--100 PUBLICATIONS, >800 CONSUMER PRODUCTS AND SERVICES

MEDAIMARK RESEARCH, INC--DEMOGRAPHIC & PRODUCT USAGE, PROVIDES LIFESTYLE INFORMATION & MEDIA USAGE CHARACTERISTICS OF THE POPULATION

WHERE TO PROMOTE BUYING POWER INDEX--SALES & MARKETING MGT

MAGAZINE BRAND DEVELOPMENT INDEX CATEGORY DEVELOPMENT INDEX

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ESTABLISHING MEDIA OBJECTIVES

GOALS FOR THE MEDIA PROGRAM LIMITED TO THOSE THAT CAN BE

ACCOMPLISHED THROUGH MEDIA EXAMPLES

USE BROADCAST MEDIA TO PROVIDE COVERAGE OF 80 % OF THE TARGET MARKET OVER A SIX MONTH PERIOD

REACH 60% OF THE TARGET AUDIENCE AT LEAST THREE TIMES OVER THE SAME SIX-MONTH PERIOD

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MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION--continued

INTERNAL FACTORS--SIZE OF MEDIA BUDGET, MGT & ADMIN CAPABILITIES, ORGANIZATION OF THE AGENCY

EXTERNAL FACTORS--ECONOMY, RAISING COST OF MEDIA, TECHNOLOGY

SURVEY OF BUYING POWER INDEX--POTENTIAL OF A METRO AREA

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MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION--continued

BRAND DEVELOPMENT INDEX--COMPARES % OF THE BRAND’S TOTAL U.S. SALES IN A GIVEN MARKET AREA WITH THE % OF TOTAL POPULATION IN THE MARKET TO DETERMINE SALES POTENTIAL

CATEGORY DEVELOPMENT INDEX--POTENTIAL FOR DEVELOPING THE TOTAL PRODUCT CATEGORY

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EVALUATION AND FOLLOW-UP

HOW WELL DID THESE STRATEGIES ACHIEVE THE MEDIA OBJECTIVES?

HOW WELL DID THIS MEDIA PLAN CONTRIBUTE TO ATTAINING THE OVERALL MARKETING AND COMMUNICATIONS OBJECTIVES

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Media Planning Difficulties

Lack of information Inconsistent terms Serious time pressure Measurement problems

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Media Planning Criteria Considerations

The media mix Target market coverage Geographic coverage Scheduling Reach versus frequency Creative aspects and mood Flexibility Budget considerations

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Brand and Category Analysis

Percentage of brand to total U.S. sales in market

Percentage of total U.S. population in market

BDI = X 100

Brand Development Index

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BRAND DEVELOPMENT INDEX

A BDI IS CALCULATED BY DIVIDING THE PERCENT OF SALES A MARKET ACCOUNTS FOR, BY THE MARKET’S PERCENTAGE OF POPULATION OF THE U.S. AN INDEX OF 100 WOULD INDICATE A FLAT MARKET--SALES AND POPULATION ARE EQUAL. AN INDEX OF LESS THAN 100 WOULD INDICATE A POOR SALES MARKET--SALES ARE LESS THAN THE POPULATION, AND AN INDEX OVER 100 INDICATES A STRONG SALES MARKET

% POPULATION % SALES BDI COMMENTS 6.28 6.28 100 FLAT SAL MKT 6.84 10.71 157 STRONG SAL MKT 10.06 8.34 83 WEAK SAL MKT

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Brand and Category Analysis

Percentage of product category total sales in market

Percentage of total U.S. population in market

CDI = X 100

Brand Development Index

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Brand and Category Analysis

High market shareGood market potential

High market shareGood market potential

High market shareMonitor for sales decline

High market shareMonitor for sales decline

Low market shareGood market potential

Low market shareGood market potentialH

igh

CD

IL

ow

CD

I

Low market sharePoor market potential

Low market sharePoor market potential

High BDI Low BDI

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Brand and Category Analysis

The market usually represents

good sales potential for both

the product and the brand.

The market usually represents

good sales potential for both

the product and the brand.

The category isn’t selling well

but the brand is; may be a

good market in which to

advertise but should be

monitored for sales decline.

The category isn’t selling well

but the brand is; may be a

good market in which to

advertise but should be

monitored for sales decline.

The product category shows

high potential but the brand

isn’t doing well; the reason

should be determined.

The product category shows

high potential but the brand

isn’t doing well; the reason

should be determined.Hig

h C

DI

Lo

w C

DI Both the product category

and the brand are doing

poorly; not likely to be a good

place to advertise.

Both the product category

and the brand are doing

poorly; not likely to be a good

place to advertise.

High BDI Low BDI

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Target Audience CoveragePopulation excluding target market

Target marketMedia coverageMedia overexposure

CoverageExceeding

Market

PartialMarket

Coverage

FullMarket

Coverage

TargetMarket

Proportion

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Three Scheduling Methods

Continuity

Pulsing

Flighting

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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Reach and FrequencyReach of Two ProgramReach of One Program

Unduplicated Reach of BothDuplicated Reach of Both

Total market audience reached Total market audience reached

Total reached with both shows Total reach less duplicate

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Graph of Effective Reach

Exposures

Per

cen

tag

e R

each

0 5 10 15

25%

20%

15%

10%

5%

0%

IneffectiveReach

EffectiveReach

IneffectiveReach

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Marketing Factors Important toDetermining Frequency

Brand history Brand share Brand loyalty Purchase cycles Usage cycle Competitive share of voice Target group

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Message or CreativeFactors Important toDetermining Frequency

Message complexity Message uniqueness New vs. continuing campaigns Image versus product sell Message variation Wearout Advertising units

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Media Factors Important toDetermining Frequency

Clutter

Editorial environment

Attentiveness

Scheduling

Number of media used

Repeat Exposures

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Determining RelativeCost of Media

Cost of ad space(absolute cost)Circulation

CPM = X 1,000

Cost per thousand (CPM)

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Determining RelativeCost of Media

CPRP =Cost of commercial timeProgram rating

Cost per rating point (CPRP)

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COST OF MEDIAMAGAZINE

PER-PAGE COST $156,000 CIRCULATION 4.0MM CALCULATION OF CPM 156,000 X 1,000

4,000,000 CPM $39.00

BROADCAST COST PER-PER SPOT AD $3,500 RATING 11 REACH (HOUSEHOLDS) 109,000 CALCULATION $3,500/11 CPRP $318.18

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COST OF MEDIA--CONTINUED

NEWSPAPER COST PER PAGE $32,205 COST PER INCH $268.60 CIRCULATION 499,000 CALCULATION

CPM PAGE COST X 1,000

CIRCULATION CPM $32,205 X 1,000

499,000 $64.54

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CHARACTERISTICS OF MEDIA

MATCHING OF MEDIA TO MARKETS

EACH MEDIA HAS ITS OWN CHARACTERISTICS THAT MAKES IT BETTER OR WORST FOR ATTAINING SPECIFIC OBJECTIVES