ad budget_media planning_media research

7/29/2019 Ad Budget_media Planning_media Research

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Advertising BudgetMedia Planning

and Media Research


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Advertising Budget


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Advertising Budget Process

Identifying MarketingCommunication Objectives

Increase Sales/Improve BrandImage/Create Brand Awareness/Influence Buyer attitudes

Fix Budgets and allocate

Implement the Plan

Control the budget


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Advertising Budgets

2 broad categories

Judgmental

Easy to implement, Not as effective

Arbitrary, Management Intutions

Data oriented

Better results, need more time &resources

Quantitative approach


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Advertising Budgets

Judgmental

Percentage of Sales Method

Arbitrary Method

Affordable Method


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Advertising Budgets

Percentage of Sales Method

What Sales?

Previous year sales

Expected sales

What Percentage?

Past spending Industry average


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Advertising Budgets

Percentage of Sales Method (+)

Easy to implement

Ad budget is in control

Budget can be increased/decreasedbased on sales

Suitable for companies showingsteady growth rate


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Advertising Budgets

Percentage of Sales Method (-)

Assumes advertising is the only

variable for sales (-)Conflicts with Sales promotion (-)

New products cannot be allocated

budgets as ther is no historyDoes not address special situations

like changes in competitors strategy


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Advertising Budgets

Arbitrary Method

Experience and judgment of market

and competitors moveNo pre defined guidelines

Suitable to SMEs


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Advertising Budgets

Affordable Method

Based on financial ability

Ad budget is decided afterconsidering all other costs.

Followed by small scale enterprises.

Unpredictable results and notsustainable.


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Advertising Budgets

Data oriented

Competitive Parity method

Object to task method

Payout planning method


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Advertising Budgets

Competitive Parity methodCommunication budget is matched

with that of competitorReduces risk of overspending

Assumptions Competitor spending is optimal

Competitor SWOT is same the firm

Focuses on amount to be spent andnot on effectiveness


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Advertising Budgets

Objective and task method

Identification of communication objective

Designing the communication program Ascertaining the cost involved in each tasks

Production cost, media expenditure, ancillarycost, integration cost

Monitoring the program and control


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Advertising Budgets

Payout Planning

Ad spending is an investment rather

than expenseFixes budget based on future

revenues.

Aligns advertising spending withProduct life cycle.


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Media Planning


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A series of decisions involving the delivery ofmessages to audiences

Goals to be attained by the media strategyand program

Decisions on how the media objectives canbe attained

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

Either radio or television network or localstation broadcasts

A series of decisions involving the delivery ofmessages to audiences

Goals to be attained by the media strategyand program

Decisions on how the media objectives canbe attained

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

Media Terminology

MediaPlanning

MediaObjectives

MediaStrategy

Media

BroadcastMedia


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Publications such as newspapers,magazines, direct mail, outdoor, etc.

The specific carrier within a mediumcategory

Number of different audience membersexposed at least once in a given time period

The potential audience that might receivethe message through the vehicle

The number of times the receiver is exposedto the media vehicle in a specific time period

The potential audience that might receivethe message through the vehicle

Number of different audience membersexposed at least once in a given time period

The specific carrier within a mediumcategory

Publications such as newspapers,magazines, direct mail, outdoor, etc.

Media Terminology

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

PrintMedia

MediaVehicle

Reach

Coverage

Frequency


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Selecting Media Vehicle

Selecting Broad Media Classes

Determining Media Strategy

Media Use Decision Print

Media Use Decision Broadcast

Media Use Decision Other Media


Determining Media Strategy

Selecting Broad Media Classes

Developing the Media Plan


Setting Media ObjectivesSetting Media Objectives

Marketing

Strategy Plan

Creative

Strategy Plan

Marketing

Strategy Plan

Situation

Analysis

Creative

Strategy Plan

Situation

Analysis


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Media Objectives

Key media objectives

Reach

Frequency

Continuity

Costs


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Media Objectives

Reach

% of target audience withopportunity for exposure tomedia vehicle(s) or media plan

in a given time frame


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Media Objectives

Frequency

average number of times targetis likely to be exposed to the adin a given time frame


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The Difference between Reach andFrequency


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TargetGroup

BrandHistory

Share ofVoice

PurchaseCycles

BrandLoyalty

BrandShare

UsageCycle

PurchaseCycles

Share ofVoice

BrandHistory

UsageCycle

BrandShare

BrandLoyalty

Marketing Factors Determining Frequency


MarketingFactors


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Message Complexity

Message Uniqueness

New Vs. Continuing Campaigns

Image Versus Product Sell

Message Variation

WearoutWearout

Message Variation

Image

New Vs. Continuing Campaigns

Message Uniqueness

Message Complexity

Message Factors Determining Frequency


Messageor Creative

Factors


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Clutter

Number ofMedia Used

RepeatExposures

Editorial

Environment

Scheduling

AttentivenessAttentiveness

Number ofMedia Used

Editorial

Environment

RepeatExposures

Clutter

Media Factors Determining Frequency

MediaFactors


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Reach and Frequency

A. Reach of One Program

Total market audience reached

B. Reach of Two Programs

Total market audience reached

C. Duplicated Reach of Both

Total reached with both shows

D. Unduplicated Reach of Both

Total reach less duplicate


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Media Objectives

Continuityhow long the campaign runs

continuous vs. flighting vs. pulsation


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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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Media Objectives


Cost of ad space(absolute cost)

Circulation

CPM = X 1,000

Cost per thousand (CPM)

Cost :

Determining Relative Cost of Media-Print

d b


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Media objectives


CPRP =Cost of commercial time

Program rating

Cost per rating point (CPRP)

Cost :

Determining Relative Cost of Media-Broadcast


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Media Strategy

Target Audience Decision

Media Budgeting


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TargetMarket

Proportion

FullMarket

Coverage

PartialMarket

Coverage

CoverageExceeding

Market

Media Strategy: Target Audience Coverage

Population excluding target market

Target market

Media coverage

Media overexposure


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Media Strategy

Media Budgeting

Not same as MC budget

Allocation of funds to each mediumfor buying space in specified mediavehicles


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Selecting Media Class

Newspapers, Radio, TV,Magazines, Billboards, Internet,

etc Factors affecting choice:

Reach of the media

Audience size

Competitor strategy

Amount of info to be conveyed


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Product fit

Target audience

Geographical flexibility


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Media Use decision

Timing

Continuity

M di Pl i Diffi lti


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MeasurementProblems

Lack ofInformation

InconsistentTerms

TimePressure

InconsistentTerms

Lack ofInformation

MeasurementProblems

Media Planning Difficulties

Problemsin MediaPlanning


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The Marketing

of Messages

Chapter 10

Media


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&Media Media Speak

Media Building BlocksStrengths &Weaknesses

Building The Media Plan

The Media Planning Revolution

Today well cover

The Marketing of Messages


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Media Speak Media/Medium/Vehicle

Media = collective noun

Medium = one type of media

Vehicle = single carrier


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Media Speak Audience/Coverage/Composition

Audience number or % exposed to a vehicle

Audience Coverage

number or % reached by a single insertionin a specified area

Audience Composition statistical breakdown of a media vehicles

total audience


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Media Speak Reach & Ratings

Broadcast Media use Rating Points

% of Target Audience reached by a mediavehicle

Print Media use Circulation

Number of copies sold or distributed


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Media Speak Above-the-Line/Below-the-Line

Above = paid advertising

Below = sales promotion, PR, events Traditional/Non-Traditional

Traditional = major mass media

Non-Traditional = unique mediaopportunities and new media forms


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Media Speak Brand Contact Points & More

Brand Contact Points (Chapter 2) Personal Media Network (Chapter 2) Aperture (Chapter 2)

Clutter & FragmentationClutter - a result of

More media channels More messages in each channel

Fragmentation - a result of More media channels More audiences. Smaller audiences.


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Media Building Blocks

First, well examine the Strengths

& Weaknesses of each Medium

Strengths &Weaknesses:

Then, well take you through the stepsofBuilding a Media Plan.


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Print

Portable Time independent Not a fleeting medium - it lasts Accommodates complex copy Good picture quality Easier to feature more than one product Versatility

Can be preserved and reread Journalistic content = credibility & prestige Can deliver coupons

Strengths &Weaknesses:


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Prestigious

Readers upscale Readers use ads

Less lead time

Strong localemphasis

Sense ofimmediacy

Cataloging Value

Reproduction varies

Not much passalong Can be expensive

Cluttered

Not read thoroughly

Poor demographicselectivity

May have adverse

editorial

NewspaperStrengths &Weaknesses:


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Special audience

opportunities Can be long-lasting

Repeat exposure

High passalong

Creative flexibility

Building audience

takes time Can be cluttered

Early closing

dates

MagazineStrengths &Weaknesses:


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Poor demographicselectivity

Limited time.Limited copy.

Complicated

logistics

Can be expensive

Restrictions

Frequency andrepetition

Large audiences.Low cost.

Visual impact

Blanket

coverage

Versatility

Out-of-HomeStrengths &Weaknesses:


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Various formats.Special audiences.

Inexpensive Affordable frequency Affordable production

Reaches mobilemarket

Scheduling &creative

flexibility

Radio iscluttered

RadioStrengths &Weaknesses:

Radio spots arefleeting


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Impact

Market coverage Intrusive

Flexible

Cost-efficient(CPM)

Prestigious

Fleeting

Expensive Big shows.

BigBucks.

Production canbe expensive

Best showshave limitedavailabilit

TelevisionStrengths &Weaknesses:


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Geographic flexibility

Inexpensive Varied programming.

Specialized audiences.

Upscale audiences Wide variety of ad formats

Low ratings

Reporting isinadequate

Cable TVStrengths &Weaknesses:


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BuildingMedia Plan:The


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Building The Media Plan:

Successful media planningis the task of selecting

and scheduling mediathat will reach as many

of the target audienceas frequently aspossible for the least

amount of cost.


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The Media Planisa blueprint for future actionorganizing a brands advertising

into media objectives andstrategies that are:

Goal-Oriented - increase sales/share

Make sense - effective/efficient Manageable - can be executed,flexible, developed before the buy.


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Media Objectives WHAT your Media Planhopes to achieve

Media Strategies

HOW the Media Objectivewill be implemented


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Evaluation & Analysis

Planning Media

Objectives Media Strategies

The Media Buy Post-Buy Analysis


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Evaluation & AnalysisSeasonality Brand History Budget Purchase Cycle

Prime Prospect Geography Competition

Promotional Activity


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Evaluation & Analysis + Problems & Opportunities

Similar to Situation Analysisin Chapter 8

Becomes foundation forThe Media Plan


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Planning MediaObjectives Target Audience

Seasonality Geography

Reach & Frequency


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Planning MediaObjectives Target Audience Profile

Demographics Product Usage (Heavy/Med/Light)

Media Usage

PMN - Personal Media NetworkMedia Consumption Core Audience

Aperture (Time/Place/Circumstance)


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Planning MediaObjectives Seasonality

Seasonal sales

Media Efficiency

Competitive media presence Promotions Scheduled


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Planning MediaObjectives Geographic Considerations

DistributionNational/Regional/Local Budget

National/Regional/Local

CompetitionOffensive or Defensive Strategy?

Sales by Market


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Planning MediaObjectives Reach and Frequency

Consumer Motivation Purchase Cycle Purchase Decision Message Complexity

Ad Effectiveness/Memorability Commercial Length Time of Day/Attention

Competition


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Planning MediaStrategies Nature of Media/Message

Media Strength/Weakness

Media Efficiencies - CPMEliminate Media that dont fit Brand Consider Selling Environments

National vs. Local Spending Scheduling Strategies

Synergy between Media/Ad


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Planning MediaStrategies Media Efficiencies - CPM

CPM = Cost Per Thousand, theuniversal form of comparing theefficiency of different media.

The following is a comparison of cost-efficiency for reaching Women 18-49


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CPM - Women 18-49Network Radio :30 2.81Day Network :30 5.35

Cable TV :30 6.05Print 4-color page 7.67AM Network :30 11.14Late Night :30 12.22Syndication :30 13.29Evening News :30 17.80Prime Network :30 18.31


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Planning MediaStrategies Scheduling Strategies

Four Types of Ad Schedules:


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The Media Buy(Implementation)

Buying - a separate function Involves tough-mindednegotiating

Involves long-termrelationships

Media Buying Services -


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Post-Buy Analysis Measure actual performance

Media makes guarantees Involves large amounts of $

If below guarantee, media

must provide a make-good.

And, if you do a good job


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You Get to

Do It

Again Next

Year!


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Media Planning:

New importance of the media function Unbundling = New Media Agencies

New Global Relationships Mega-brands and mega-agencies

Growing # of media choices means

growing need for media planning Development of account planning

style media planning

A New Revolution


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Media Planning:

It will be more challenging to workin advertising in new mediaits a skys the limit type of thing.And advertisers have to knowall the possibilities.

Jayne Spitler, LeoBurnett/StarCom

A New Revolution


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Media Planning:

The creative people and the mediapeople must intertwine their workas much as possible. They have tounderstand the overall project ispart of a targeting process.

David Martin, CEO/Penta-Com

A New Revolution


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Media Planning:

In a rapidly changing media world,an understanding of the consumer/

media relationship is offundamental importance to theprocess.

Andy Tilley. Zenith Media

A New Revolution


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Media Planning:

Todays toughest question is howto find your customers at the moststrategic time thats why mediais the new creative frontier.

Keith Reinhard, Chmn DDB

A New Revolution


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The Marketing

of Messages

Chapter 10

Media

&


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&QuestionsDiscussion:


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Media ResearchRefer Advertising & Promotions: An

IMC PerspectiveKruti ShahAlan DSouza

Page 807 - 811

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