ch08- media planning & buying

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Chapter 8

Media Planning and Buying



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Learning Objectives

Learn about major decisions involved inmedia planning.

Understand fundamental terms of mediaplanning.

Learn how to calculate media

measures.Learn to use secondary data frequentlyused in media planning.



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Media Planning

“I know half the money I spend On advertising is wasted, but ICan never find out which half.”

(JW)

What is media planning?--The process of designing a course of action thatshows how advertising time and space will be used tocontribute to the achievement of marketing objectives.



Problems in Media Planning

Insufficient information

Inconsistent terminologies

Time pressures

Difficulty measuring effectiveness



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Background andSituation Analysis

Discusses Media Options, Opportunitiesand Target Audience.

Staging a Media PlanA Media Plan is a Written Document that Summarizes the

Recommended Objectives, Strategies, and Tactics Pertinent to thePlacement of a Company’s Advertising Messages.

Strategy:Selection of Media Explains Why a Single Medium or Set ofMedia is Appropriate.

Flow Chart Scheduling& Budgeting

Media Buyers Convert Objectives andSelect, Negotiate, & Contract for Media

Space.

Media Objectives &Aperture Opportunities

Goal or Task that Media Can AccomplishBased on Aperture Opportunities.



Consumer Attitudes Toward Media

(abbreviated)

57%

9%

20%

11%

3%

Television

Radio

Newspapers

Magazines

Don’t know

81%

5%9%

2%

3%

Authoritative Influential



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Changes in Percentage of

Network Commercial by Length

0%

20%

40%

60%

80%

100%

1965 1975 1985 1987 1988 1990 1992

Other

60

30

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Whom to Advertise To

Which Geographic Areas to Cover

When to Advertise

What the Duration of the Campaign Should Be

What the Size or Length of the Ad Should Be

Setting Media ObjectivesThe Basic Goals That Direct Media Strategy Typically Focus on:



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Specifying Media Objectives

1. What proportion of the target audienceshould be exposed to our message

“Reach” 2. How often should the target audience beexposed to our message?

“Frequency”

-- “Motivational frequency”

-- “Effective reach and frequency”



Advertising Response Curves

R e s

p o n s e

Frequency Frequency

R e s

p o n s e

a. S-shaped response curve b. Convex response curve

Threshold



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When high frequency is required

A new brand

A smaller, less known brand

A low level of brand loyaltyRelatively short purchase and use cycle

With less involved (motivated and

capable) target audiences

With a great deal of clutter to breakthrough (Joseph Ostrow at Y & R, JAR,

1984)



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(cont’d) 3. How much total advertising is necessary toachieve the reach and frequency objective?

“Weight” (GRPs/TRPs, Gross Impressions) - FCB research: no awareness with <1000 GRPs

4. How to schedule the advertisingcampaign?

“Scheduling” or “Continuity” - Continuous scheduling

- Pulsing

- Fighting



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Three Methods of Media Scheduling

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

Pulsing

Flighting

Continuity



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(cont’d) 5. What is the least expensive way toaccomplish media objectives?

“Cost”: Absolute and relative costs - CPM or CPP: Measures cost efficiency

6. Other considerations

-- Geographic coverage-- Qualitative media environment

-- Recall research

* Confusing terms



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EXH 9-11



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How to Use Reach and Coverage

Use Reach

To express a whole number or percentage of

different people actually exposed only once to

a media vehicle to combination of vehicles.

Example: Television program X reaches 9 million

men aged 18-34 within a four-week period.

Example: Magazine Y has a reach of 25 percent

of men aged 18-34 with an average issue.



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How to Use Reach and Coverage

Use Coverage

To express the potential audience of abroadcast medium or the actual audience of a

print medium exposed only once.

Example: A network television program may have

a coverage of 95 percent of TV homes in the U.S.

Example: Magazine Y has 25 percent coverage of

men aged 18-34. (Means same as reach.)



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Some Basic Terms Used in

Media Planning •Gross impressions: the sum of theaudience of all media vehicles usedwithin a designated time period

– Jeopardy: 3,270,000 x 4 messages =13,080,000

–

People: 8,620,000 x 2 messages = 17,240,000 – Time: 1,700,000 x 2 messages = 3,400,000

– ---> 33,720,000 gross impressions



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Relative Cost: CPM= Cost of ad space X 1,000 /number of readers

Time

Per-page cost: $156,000Number of readers: 4.0 MM

CPM: $156,000X1,000/

4.0 MM

=$39.00

Newsweek

Per-page cost: $144,000Number of readers: 3.1 MM

CPM: $144,000X1,000/

3.1 MM

=$46.45



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Relative Cost:CPRP

= Cost of ad time/Program rating

Drew Carey

Cost per spot ad:$3,500

Rating: 11

CPRP: $3,500/11

=$318.18

Survivor

Cost per spot ad:$4,000

Rating: 15

CPRP: $4,000/15

=$266.64



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Super Bowl Options

Scenario 1 ($891,000;one 30-second spot on one prime-time show each night of the week)

Scenario 2 ($895,000;a 30-second prime-time“roadblock” on Sunday and Monday nights)

Monday: Murphy Brown (CBS)

Tuesday: Coach (ABC)Wednesday: 48 Hours (CBS)

Thursday: Wings (NBC)

Friday: Picker Fences (CBS)

Saturday: The Commish (ABC)

Sunday: CBS Sunday Night Movie

Sunday: ABC Sunday Night Movie

CBS Sunday Night MovieNBC Sunday Night MovieMarried …With Children (Fox)

Monday: Day One (ABC)Dave’s World (CBS)

Blossom (NBC)

Fox Movie

Comparison with Super Bowl XXVШ

Ratings points: +48%Reach: +6%

Comparison with Super Bowl XXVШ

Rating point: +64%Reach: +25%

Source: N. W. Ayer (1994)

Notes: Ratings points/reach comparisons are based on adults 18-49. Reach is based on actual delivery of eachschedule from the week of November 15, 1993. Nielsen’s cumulative audience data were used for this analysis.

Costs were based on October Media Watch figures. A single Super Bowl commercial (30 seconds) cost $900,000

in 1994.



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Some basic terms used in media

planning (cont’d)

GRPs: the sum of the total exposure

potential of a series of media vehiclesas a % of the audience population

-- GRPs = Reach x Average frequency

TRPs: ….. As a % of the targetaudience population



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1978 1997

Total 100.0 100.0

Newspaper 43.5 37.6

Magazine 14.0 8.9Television 30.8 40.1

Radio 10.1 12.1

Outdoor 1.6 1.3

U.S. Main Media Volume (in percentage), Analyzed by

Media Groups

SOURCE: reprinted with permission from Advertising Age, various dates. Copyright Crain Communications Inc.,

1998.



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Using Electronic Media

Network Advertising-Sponsorship-Paticipation

Spot Advertising-National and Local

Syndication- Off-network syndication v.

first-run syndication-Straight cash v. barter system

Types of TelevisionAdvertising



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Using Electronic Media

Rating/Share/HUTS

CDI and BDI



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100homeatsetTVwithHHsTotal

programatotunedHHsTotal Rating

100onsetTVwithHHsTotal

programatotunedHHsTotalShare



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100×=homeatsetTVwithHHsTotal

onsetTVwithHHsTotalHUT

HUT ShareRating ×=



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CDI and BDI

The Brand Development Index (BDI) helpsmarketers factor the rate of product usage bygeographic area into the decision process.

The Category Development Index (CDI)is computed in the same manner as the BDI, except ituses information regarding the product category (as

opposed to the brand) in the numerator.

100×=marketinpopulationU.S.totalof Percentage

marketinsalestotalcategoryproductof PercentageCDI

100×=marketinpopulationU.S.totalof Percentage

markettheinsalesU.S.totaltobrandof percentage

BDI



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Using CDI and BDI to determine

market potential100×=

Utah/IdahoinpopulationU.S.totalof Percentage

Utah/Idahoinsalescategoryproductof PercentageCDI

100%1

%2

200

100×=Utah/IdahoinpopulationU.S.totalof Percentage

Utah/Idahoinsalesbrandtotalof percentageBDI

100%1

%2.1

120



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Using BDI and CDI Indexes

vHigh BDI Low BDI

High CDI High market share

Good market potential

Low market share

Good market potential

Low CDI High market share

Monitor for sales decline

Low market share

Poor market potential

High BDI and high CDI This market usually represents good salespotential for both the product category and the brand.

High BDI and low CDI The category is not selling well, but the brand is;probably a good market to advertise in but should be

monitored for declining sales.Low BDI and high CDI The product category shows high potential but the

brand is not doing well; the reasons should bedetermined.

Low BDI and low CDI Both the product category and the brand are doing

poorly; not likely to be a good place for advertising.



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Using Printing Media

Newspaper rate

-- SAUs (Standard Advertising Unites) in 1984

-- Flat rate v. open rate

-- Run-of-paper v. preferred position rate

-- Combination rate: several nps as a group

-- National advertisers pay much more fornewspaper space



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Using Print Media

Magazine circulation Primary circulation (in-home readers):

Subscription + news stand (a single copy circul.)

A basis for rate structure

Secondary circulation (out-of-home readers) Paid circulation v. controlled circulation

Guaranteed circulation v. verified circulation

ABC (Audit Bureau of Circulations)

Total audience=readers per copy x circulation ofan average issue



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SMRB/MRI Reading

Base: Female HomemakersTop Row: There are 86,474,000 femalehomemakers in the U.S.

Column A: 77,418,000 female homemakersuse breakfast cereals.

Column B: All female homemakers usingbreakfast cereals is equal to 100% (i.e., base).

Column C: 89.5% of the total femalehomemakers use breakfast cereals .

%5.89100

000,474,86

000,418,77



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Second Row: There are 3,925,000 female homemakerswho read the magazine, Money .

Column A: 3,448,000 readers of Money use breakfastcereals.

Column B: 4.5% of all users of breakfast cereals readMoney .

Column C: 87.8% of Money readers are users of breakfastcereals

Column D: Money readers are 2% less likely to use

breakfast cereals than all U.S. female homemakers.

%5.4100000,418,77

000,448,3

%8.87100000,925,3

000,448,3

981005.89

8.87



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Review

Learn about major decisions involved inmedia planning.

Understand fundamental terms of mediaplanning.

Learn how to calculate mediameasures.

Learn to use secondary data frequentlyused in media planning.

ch08- media planning & buying

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