Media Planning and Decisions

Major Decisions in Advertising

The Traditional Media Landscape

Satellite radio stations

2

Satellite radio stations

2

Broadcast networks (TV

and cable)100

Broadcast networks (TV

and cable)100

TV stations3,510

TV stations3,510

Consumer magazines5,340

Consumer magazines5,340

Newspapers (daily and weekly)8,100

Newspapers (daily and weekly)8,100

Radio stations13,898

Spending by Media (Billions of Dollars)

An Overview of Media Planning

Some basic terms and concepts The media plan Problems in media planning

Some Basic Terms and Concepts Media planning: the series of decisions involved in

delivering the promotional message to the prospective purchasers and/or users of the product or brand.

Media objectives: goals to be attained by the media strategy and program.

Media strategies: decisions on how the media objectives can be attained.

Medium: the general category of available delivery systems, which includes broadcast media, print media, direct mail, outdoor advertising, and other support media.

Some Basic Terms and Concepts

Media vehicle (載體 ): the specific carrier within a medium category.

Reach: a measure of the number of different audience members exposed at least once to a media vehicle in a given period of time. (actual)

Coverage: the potential audience that might receive the message through a vehicle. (potential)

Frequency: the number of times the receiver is exposed to the media vehicle in a specific period.

Selecting media within classSelecting media within class

Selecting broad media classesSelecting broad media classes

Determining media strategyDetermining media strategy

Media use decision— print

Media use decision— print

Media use decision— broadcast

Media use decision— broadcast

Media use decision— other media

Media use decision— other media

Selecting media within classSelecting media within class

Determining media strategyDetermining media strategy

Selecting broad media classesSelecting broad media classes

The Media Plan

Setting media objectivesSetting media objectivesSetting media objectivesSetting media objectives

Marketing strategy planMarketing

strategy planCreative

strategy planCreative

strategy planMarketing

strategy planMarketing

strategy planSituation analysis

Situation analysis

Creative strategy plan

Creative strategy plan

Situation analysis

Situation analysis

Problems in Media Planning

Insufficient information The timing of measurement: sweeps periods –

February, May, July, and November. Inconsistent terminologies Time pressures Difficulty measuring effectiveness

2007年度最佳媒體服務公司1. 貝立德2. 凱絡3. 傳立4. 實力5. 星傳

Developing the Media Plan

Market analysis Establishment of media objectives Media strategy development and

implementation Evaluation and follow-up

Market Analysis and Target Market Identification

To whom shall we advertise? What internal and external factors are

operating? Where to promote?

To Whom Shall We Advertise?

Secondary information Government, e.g. age, education. Market research companies, e.g. SMRB, MRI, 東方線上 –

E-ICP & CMMS. Index number

Figure 10-5 The high index may be a result of a low denominator.

(Figure 10-6)

Percentage of users

in a demographic segmentIndex 100

Percentage of population

in the same segment

Example

18~24 25~34 35~44 45~

Population 15.1% 25.1% 20.5% 39.3%

Product use

18% 25% 21% 36%

Index 119 100 102 91

Internal and External Factors

Internal factors: the size of media budget, managerial and administrative capability, the organization of the agency.

External factors: the cost of media, changes in technology, competitors.

Where to promote?

Buying power index Based on population, effective buying income

and retail sales. Brand development index Category development index

Brand Development Index (BDI)

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

Percentage of total U.S. population in market

BDI = X 100

Percentage of brand sales to total sales in market

Percentage of total population in market

Category Development Index (CDI)

CDI =

Percentage of product category total sales in market

Percentage of total population in market

X 100

Example

北 中 南 東

Population 40% 27% 23% 10%

Brand 30% 30% 35% 5%

Product 20% 50% 15% 15%

BDI 75 111 152 50

CDI 50 185 65 150

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

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

Media Planning Criteria Considerations

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

Target Audience Coverage

CoverageExceeding

Market

PartialMarket

Coverage

FullMarket

Coverage

TargetMarket

Proportion

Population excluding target marketTarget market

Media coverageMedia overexposure

Three Scheduling Methods

Continuity: a regular pattern of advertising. Flighting: a less regular schedule with

intermittent periods of advertising and nonadvertising.

Pulsing: a combination of the above two methods.

Pros & Cons of the three methods

Three Scheduling Methods

Continuity

Pulsing

Flighting

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

Reach versus Frequency

Reach Awareness Trial

Frequency The actual audience for a commercial and a

program Figure 10-18

Reach and FrequencyReach of Two ProgramsReach 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

GRPs

Gross rating points (GRPs) = Reach × Frequency Target rating points (TRPs) 100 TRPs = 32% × 3.125 = 37.2% × 2.688 = 44.5%

× 2.247 Relationship between GRPs & awareness

2500 → 70% 1000~2500 → 33% <1000 → 0%

Effects of Reach and Frequency One exposure of an ad to a target group within a purchase

cycle has little or no effect in most circumstances. Since one exposure is usually ineffective, the central goal

of productive media planning should be to enhance frequency rather than reach.

The evidence suggests strongly that an exposure frequency of two within a purchase cycle is an effective level.

Beyond three exposures within a brand purchase cycle or over a period of four or even eight weeks, increasing frequency continues to build advertising effectiveness at a decreasing rate but with no evidence of decline.

Effects of Reach and Frequency

Although there are general principles with respect to frequency of exposure and its relationship to advertising effectiveness, differential effects by brand are equally important.

Frequency response principles or generalizations do not vary by medium.

The data strongly suggest that wearout is not a function of too much frequency. It is more of a creative or copy problem.

Graph of Effective Reach

Factors Important in Determining Frequency Levels

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

Factors Important in Determining Frequency Levels

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

Factors Important in Determining Frequency Levels

Media Factors Clutter Editorial environment Attentiveness Scheduling Number of media used Repeat Exposures

Budget Considerations

Absolute cost: the actual total cost required to place the message.

Relative cost: the relationship between the price paid for advertising time or space and the size of the audience delivered. Cost per thousand (CPM) → magazine Cost per rating point (CPRP) → broadcast media Daily inch rate → newspaper

Determining Relative Cost of Media

Cost of ad space(absolute cost)Circulation

CPM = X 1,000

Cost per thousand (CPM)

Determining Relative Cost of Media

CPRP =Cost of commercial timeProgram rating

Cost per rating point (CPRP)

Example (Magazine)

商業周刊 哈佛商業評論

康健雜誌

Per-page Cost

(封底 )

460,000 300,000 260,000

Circulation 144,318 25,000 65,000

CPM 3,187.4 12,000 4,000

Example (Newspaper)

蘋果日報 爽報

Per-page Cost

(中跨全頁 )

1,450,000 240,000

Circulation 526,578 172,500

CPM 2,753.6 1,391.3

閱報人口統計 人口分佈統計

閱報率

Limitations of CPM

Overestimate Readers per copy Pass-along rate: the number of people who read

the magazine without buying it, e.g. 遠見, 新台灣.

Underestimate Target CPM, e.g. 商業週刊, 哈佛商業評論.

Quantitative (NOT qualitative)

Short message lifeShort message life

High production costHigh production cost

Low selectivityLow selectivity

High absolute costHigh absolute cost

ClutterClutter

Mass coverageMass coverage

High reachHigh reach

Impact of sight, sound and motion

Impact of sight, sound and motion

High prestigeHigh prestige

Low cost per exposureLow cost per exposure

Attention gettingAttention getting

Favorable imageFavorable image

High production costHigh production cost

High absolute costHigh absolute cost

Short message lifeShort message life

Low selectivityLow selectivity

Favorable imageFavorable image

Attention gettingAttention getting

Low cost per exposureLow cost per exposure

High prestigeHigh prestige

Impact of sight, sound and motion

Impact of sight, sound and motion

High reachHigh reach

Mass coverageMass coverage

Television Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages

ClutterClutter

Fleeting messageFleeting message

Audio onlyAudio only

Low attention gettingLow attention getting

Local coverageLocal coverage

Low costLow cost

High frequencyHigh frequency

FlexibleFlexible

Low production costLow production cost

Well-segmented audienceWell-segmented audience

Low attention gettingLow attention getting

ClutterClutter

Audio onlyAudio only

Well-segmented audienceWell-segmented audience

Low production costLow production cost

FlexibleFlexible

High frequencyHigh frequency

Low costLow cost

Local coverageLocal coverage

Radio Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages

Visual onlyVisual only

Long lead time for ad placement

Long lead time for ad placement

Lack of flexibilityLack of flexibility

Segmentation potentialSegmentation potential

Quality reproductionQuality reproduction

High information contentHigh information content

LongevityLongevity

Multiple readersMultiple readers

Visual onlyVisual only

Long lead time for ad placement

Long lead time for ad placement

Multiple readersMultiple readers

LongevityLongevity

High information contentHigh information content

Quality reproductionQuality reproduction

Segmentation potentialSegmentation potential

Magazine Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages

ClutterClutter

Poor reproduction qualityPoor reproduction quality

Short lifeShort life

Low attention gettingLow attention getting

High coverageHigh coverage

Low costLow cost

Short lead time for placing ads

Short lead time for placing ads

Ads can be placed in interest sections

Ads can be placed in interest sections

Timely (current ads)Timely (current ads)

Reader controls exposureReader controls exposure

Can be used for couponsCan be used for coupons

Selective reader exposureSelective reader exposure

Poor reproduction qualityPoor reproduction quality

Low attention gettingLow attention getting

ClutterClutter

Short lifeShort life

Can be used for couponsCan be used for coupons

Reader controls exposureReader controls exposure

Timely (current ads)Timely (current ads)

Ads can be placed in interest sections

Ads can be placed in interest sections

Short lead time for placing ads

Short lead time for placing ads

Low costLow cost

High coverageHigh coverage

Newspaper Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages

Short adsShort ads

Local restrictionsLocal restrictions

Short exposure timeShort exposure time

Poor imagePoor image

Location specificLocation specific

High repetitionHigh repetition

Easily noticedEasily noticed Poor imagePoor image

Short adsShort ads

Short exposure timeShort exposure time

Easily noticedEasily noticed

High repetitionHigh repetition

Location specificLocation specific

Outdoor Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages

Poor image (junk mail)Poor image (junk mail)

High cost per contactHigh cost per contact

ClutterClutter

High selectivityHigh selectivity

Reader controls exposureReader controls exposure

High information contentHigh information content

Repeat exposure opportunities

Repeat exposure opportunities

Poor image (junk mail)Poor image (junk mail)

High cost per contactHigh cost per contact

Repeat exposure opportunities

Repeat exposure opportunities

High information contentHigh information content

Reader controls exposureReader controls exposure

High selectivityHigh selectivity

Direct Mail Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages

Websnarl (crowded access)

Websnarl (crowded access)

Few valid measurement techniques

Few valid measurement techniques

Limited creative capabilities

Limited creative capabilities

Technology limitationsTechnology limitations

Limited reachLimited reach

User selects product information

User selects product information

User attention and involvement

User attention and involvement

Interactive relationshipInteractive relationship

Direct selling potentialDirect selling potential

Flexible message platformFlexible message platform

Few valid measurement techniques

Few valid measurement techniques

Technology limitationsTechnology limitations

Websnarl (crowded access)

Websnarl (crowded access)

Limited creative capabilities

Limited creative capabilities

Flexible message platformFlexible message platform

Direct selling potentialDirect selling potential

Interactive relationshipInteractive relationship

User attention and involvement

User attention and involvement

User selects product information

User selects product information

Internet Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages