media planning and buying advertising principles and practices

Media Planning and Buying

Advertising Principles and Practices

11-2Prentice Hall, © 2009

Questions We’ll AnswerQuestions We’ll Answer

• What is media aperture, and why is it important?

• How do media planners calculate media objectives?

• What are the key media strategy decisions?

• What are the responsibilities of media buyers?

Audi Reaches Elusive AudienceAudi Reaches Elusive Audience

\

• Audi needed to launch its new luxury A3 hatchback on a comparatively reduced budget.

• They used a Web-based alternative reality game to reach the skeptical, affluent 24- to 30-year- old males.

• A variety of media drove traffic, created buzz, and engaged the audience.

11-3

Visit the Site

Prentice Hall, © 2009

http://www.mckinney.com/A3_H3ist/


The Media Planning Side The Media Planning Side of Advertisingof Advertising

• Advertising budgets are shifting away from traditional media (newspapers, TV, radio) to online and alternative media.

• Media planning and buying have become more creative due to media fragmentation and the explosion of new media.

• Media is used in advertising, public relations, sales promotion and integrated marketing communications (IMC).


Key PlayersKey Players

• Traditionally, advertising agencies develop media plans.

• Lately, media buying companies have assumed planning roles.

• Agencies have spun off media function as separate companies.

• Some media planning is done by companies in-house.

• Specialized “new media” agencies have emerged.


Media Research:Media Research:Information ServicesInformation Services

• Client Information– About customers, past efforts, sales, budget

• Market Research– About markets and product categories; supplied by companies

MRI, Scarborough, Mendelsohn

• Competitive Advertising – Share of voice is a percentage of total advertising spending by

one brand in a product category.• Media Usage Profiles

– The size and makeup of various media audiences – Supplied by companies Nielsen, Arbitron, ABC, Simmons

• Media Coverage Area– Designated marketing area (DMA) is used in TV media

• Consumer Information– Used to locate target audiences within media markets

http://www.scarborough.com/


The Central Role of Media The Central Role of Media ResearchResearch


• Media Plan: a written document summarizing the objectives and strategies pertinent for placing a company’s brand messages.

• Goal: finding the most efficient and effective ways to deliver messages to a targeted audience.

Replace

The Media PlanThe Media Plan


• Target Audience and Media Use– Match the advertiser’s target with

a particular medium’s audience.

• The Aperture Concept– Aperture: when consumers are

most receptive to a brand message.

– The goal is to reach the right people at the right time with the right message.

Principle: Advertising is most effective when it reaches the right people

at the right time and place with the right message.

Key Media Planning DecisionsKey Media Planning Decisions


• Measured Media Objectives– Goal: to achieve the best media mix to maximize reach

and frequency and generate the greatest impact for the money spent.

– Reach: percent of different people exposed to the message.

– Frequency: the number of times exposure is expected.– Effective frequency: combines reach and frequency; add

frequency to reach until the level at which people respond.

– Media efficiency and waste: excessive overlap or too much frequency.

Principle: Reach is the first place to start in setting objectives for a

media plan.



• Media Mix Selection– Multiplying Media Strengths

• Media chosen based on plan objectives and media strengths

– GRPs and TRPs

– Cross Media Integration• Various media work together

to create coherent brand communication; synergy between different media messages

• Image transfer—how radio reinforces TV messages



Calculating GRPsCalculating GRPs

Program HH Rating Insertions GRPs

Survivor 6 8 48

Lost 7 8 56

American Idol 9 8 72

24 4 8 32

Total 208

Table 11.1.A Calculating GRPs – Plan A R=35; F=6.9

Program HH Rating Insertions GRPs

Survivor 6 8 48

Desperate Housewives 7 8 56

Boston Legal 5 8 40

Monday Night Football 4 8 3

Total 176

Table 11.1.B Calculating GRPs – Plan B R=55; F=3.2

• GRPs (Gross Rating Points) are found by multiplying each media vehicle’s rating by the number of insertions, then adding up the total of all the vehicles.


Calculating TRPsCalculating TRPs

Program HH Rating Targeted Rating Insertions GRPs

Survivor 6 3 8 24

Lost 7 3 8 24

American Idol 9 1 8 8

24 4 3 8 24

Total 80

Table 11.2 Calculating Targeted GRPs – Plan A

• TRPs (Targeted Rating Points) adjusts the GRP calculation so it more accurately reflects the percentage of the target audience watching the program, thus reducing waste coverage.


• Media Strategy– The way media planners determine the most cost effective

media mix to reach the target audience and satisfy the media objectives.

– Includes decisions focusing on who (target audience), what (the media used), when (time frame), how long (duration), and how big (size).

Media Strategy Tools Media Strategy Tools and Techniquesand Techniques


• Plans may emphasize reach or frequency• High reach strategy

– Used to deliver reminders for well-known products – Used to launch a new, easy-to-understand product

• Low frequency strategy– Used with well-known brands and simple messages

• High frequency strategy– Used with more complex products that require repetition– Used to build excitement about a new product or event– Used to counter competition or build share of voice

Delivering on ObjectivesDelivering on Objectives

Principle: The tighter the focus on a target market, the easier it is to

find appropriate media to deliver a relevant message.


• Media Use– The goal is to match consumer

insights with media information.• Geographical Strategies

– Heavy up in DMAs where the product is available or projected sales are higher.

– Category development index (CDI) determines rates of consumption for a product category.

– Brand development index (BDI) is determines the strength of the brand in geographical areas.

Delivering on the Delivering on the Targeting StrategyTargeting Strategy

Principle: The CDI tells you where the category is strong and weak, and the

BDI tells you where your brand is strong and weak.


• Media Weighting– How much to budget in each DMA or

region and for each target group.– Used with seasonality, geography,

audience segments, or level of brand development by DMA.

• Size, Length, and Position– Based on advertising objectives.– A technical/informational ad may

require more time or space while a reminder add will require less.

• Media Optimization Modeling– A computer technique that enables

marketers to determine the relative impact of a media mix on product sales and optimize efficiency.

Delivering on the Media Delivering on the Media Mix StrategyMix Strategy


• Timing strategies: When to advertise? – Seasonality, holidays, days of the week, time of day– Lead time: time between thinking about purchase and

purchasing; also refers to production time to get an ad in a medium

• Duration: How long? – Advertisers can’t afford to cover the entire year– If the period is too short, the message may not have

sufficient impact– If the period is too long, the ads may suffer from wearout

• Continuity: How often?– How advertising is spread out over the length of the

campaign– Continuous strategy spreads ads evenly over campaign

period

Scheduling StrategiesScheduling Strategies


Scheduling StrategiesScheduling Strategies• Flighting strategy

– Alternating periods of intense advertising activity (bursts) and no advertising (hiatus).

• Pulsing strategy– Advertising is intensified (peaks) before an aperture and

reduced to lower levels (valleys) until the aperture reopens; bursts of activity.


Cost Efficiency: CPMs and CPPsCost Efficiency: CPMs and CPPs

Gross ImpressionsCost of message unit

x 1,000

Cost per thousand (CPM)

Program or issue rating

Cost per point (CPP)

Cost of message unit

• Used to measure a target audience’s size against the cost of reaching that audience

• TCPM (Target CPM) and TCPP (Target CPM) can be figured using the percentage of viewers or readers in the target audience


• The size of the budget greatly affects media decisions– Local vs. national– TV vs. radio

• At the end of the planning process, the media planner develops a pie chart showing media allocations

The Media BudgetThe Media Budget


IMC Media and IMC Media and Contact Point PlanningContact Point Planning

• IMC considers all important brand contact points, not just traditional mass media and advertising.– See www.prenhall.com/moriarty for a list

• Contact Point Planning– Identify a wide variety of contact points for

achieving goals– Implement integrated communication programs

that eliminate waste

Sample List of Contact PointsSample List of Contact Points

11-23

Visit the Site

Prentice Hall, © 2009

http://www.prenhall.com/moriarty/


• Global media do not currently exist.• Advertisers must deal with different networks and

different vehicles in different countries.• Despite regional limitations, satellite television gives

advertisers the opportunity to deliver unified messages across continents.

• North American, European, Asian, and Latin American cable companies offer international networks.

Global Media StrategiesGlobal Media Strategies


Major Major Sections of Sections of

a Media a Media PlanPlan

• Objectives• Strategic plan

development: consumer insights

• Key media strategies


• A media plan is a set of recommendations a client must approve before further action.

• Once approved, media buyers convert objectives and strategies into tactics.– Provide inside information to media planners– Select specific media vehicles– Negotiate and contract for time and space– Bargain for preferred positions– Secure extra support/value-added media services– Monitor media choices during and after the campaign– Handle billing and payment– Ensure make goods– Perform post-campaign evaluation

Media BuyingMedia Buying


Functions of a Media BuyerFunctions of a Media Buyer


• Unbundling Media Planning and Buying– Agencies media departments have become separate, independent

profit centers and can work for the agencies’ competition, and compete with agencies for the planning function.

• Online Media Buying– Goggle's Adwords and eBay’s Media Marketplace are selling

Internet advertising online.– Zimmerman (advertising agency) sells advertising online for a

number of media including print, radio, direct mail, in-store ads, and the Internet.

• New Forms of Media Research– Online media research (hits and clicks) don’t measure impact.– Traditional media monitoring systems don’t address new ways

media is used and systems like TiVo and interactive TV.– Most media research measures independent media, not the

effectiveness of combined media.

Media Planning TrendsMedia Planning Trends


Google AdWordsGoogle AdWords

Visit the Site

• With Google AdWords, you create your own ads and choose keywords (words or phrases related to your business). When people search on Google using one of those keywords, your ad may appear next to the search results. People can then click your ad to make a purchase or learn more about you.


eBay Media MarketplaceeBay Media Marketplace

Visit the Site

• Called “A New Approach to Offline Advertising,” The eBay Media Marketplace offers advertisers a place to make planned buys in the national cable TV market and last-minute buys on radio in all 300 top U.S. radio markets.

Discussion Questions


Discussion Question 1Discussion Question 1

• You have just begun a new job as a media planner for a new automobile model from General Motors.

• The planning sequence will begin in four months, and our media director asks you what data and information you need from the media research department.

• What sources should you request? • How will you use each of these sources in the

planning function?


Discussion Question 2Discussion Question 2

• The marketing management of McDonald’s restaurants has asked you to analyze the aperture opportunity for its breakfast entrees.

• What kind of analysis would you present to management?

• What recommendations could you make that would expand the restaurant’s nontraditional, as well as traditional, media opportunities?


Discussion Question 3Discussion Question 3• Your client is a major distributor of movies. Its early media plan

for magazines has been settled, and you are in negotiation when you learn that a top publishing company is about to launch a new magazine dedicated to movie fans and video collectors.

• Although the editorial direction is perfect, there is no valid way to predict how the magazine will be accepted by the public. Worse, there won’t be solid research on readership for at least a year.

• The sales representative offers a low charter page rate if the advertiser agrees to appear in each of the first year’s 12 issues. To use it you will have to remove one of the established magazines from your list.

• Is the risk worthwhile? Should you bother the client with this information, considering that the plan is already set?

• The new magazine will also be available online. Should you take advantage of this opportunity?

• Make some recommendations to your client and explain your reasoning.


All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall