Planning for and Analyzing Advertising

Media

Chapter Thirteen

Chapter Thirteen Objectives

• Describe the major factors used in segmenting target audiences for media planning purposes.

• Explain the meaning of reach, frequency, gross rating points, target rating points, effective reach, and other media concepts.

• Discuss the logic of the three-exposure hypothesis and its role in media and vehicle selection.

Chapter Thirteen Objectives

• Describe the use of the efficiency-index procedure for media selection.

• Distinguish the differences among three forms of advertising allocation: continuous, pulsed, and flighted schedules.

• Explain the principle of recency, or shelf-space model, and implications for allocating advertising expenditures over time.

Chapter Thirteen Objectives

• Perform cost-per-thousand calculations.• Interpret the output from computerized

media models.• Review actual media plans.

Media Versus Vehicles • Media are the general communication methods

that carry advertising messages—television, magazines, newspapers, and so on.

• Vehicles are the specific broadcast programs or print choices in which advertisements are placed.

• For example, television is the media, and

American Idol is the vehicle.

• Each medium and vehicle has a unique set of characteristics and virtues.

Messages and Media: A Hand-In-Glove Reaction

• Advertisers are placing more emphasis than ever on media planning.

• The choice of media and vehicles can be the most complicated of marcom decisions.

Selecting and Buying Media and Vehicles

• GM started a trend of consolidating its media planning and buying into one organization and others have followed the example.

• Creating effective messages is critical but it is just as essential that the messages are placed in the right media and vehicles.

The Media-Planning Process

Media planning

The design of a strategy that shows how

investments in advertising time and space will contribute to the achievement of

marketing objectives.

Model of the Media Planning Process

Advertising Strategy

Advertising

Objectives

AdvertisingBudget

MessageStrategy

MediaStrategy

Media Strategy

• Target Audience Selection

• Objective Specification• Media and Vehicle• Media Buying

Marketing Strategy

4. Buying media

The Media-Planning Process

1. Selecting the target audience

2. Specifying media objectives

3. Selecting media categories and

vehicles

Selecting the Target Audience

Four major factors

(1) Buyographics

(4) Lifestyle/psychographics

(2) Geographic

(3) Demographic

Specifying Media Objectives

1. What proportion of the population should be reached with advertising message during specified period (reach)

2. How frequently should audience be exposed to message during this period (frequency)

3. How much total advertising is needed to accomplish reach and frequency objectives (weight)

Specifying Media Objectives

4. How should the advertising budget be allocated over time (continuity)

5. How close to the time of purchase should the target audience be exposed to the advertising message (recency)

6. What is the most economically justifiable way to accomplish objectives (cost)

Reach

Percentage of target audience that is

exposed to an advertisement, at least

once, during a certain time frame

(usually four weeks)

Reach• Reach represents the percentage of target

customers who have an opportunity to see the advertiser’s message.

• Other terms used by media planners to describe reach:

• 1+ (read “one-plus”)• net coverage• unduplicated audience• cumulative audience ( or “cume”)

Determinants of Reach

• More people are reached when a media schedule uses multiple media

• The number and diversity of media vehicles used

• By diversifying the day parts

Frequency

Average number of times, on average, during the media-

planning period that members of the target audience are exposed to the media vehicles that carry a

brand’s advertising message.

Hypothetical Frequency Distribution for the Esuvee Advertised in Sports Illustrated

The Concept of Frequency Distribution

In the hypothetical situation, 90% of the Esuvee’s target audience is

reached by the advertising schedule and they are exposed an average of

2.2 times during the four-week advertising schedule in Sports

Illustrated.

Weight

How much advertising volume is required to accomplish advertising objectives

Three weight metrics:

• Gross ratings

• Target ratings

• Effective ratings

What Are Ratings?

Ratings, in an advertising sense, simply mean the percentage of an audience that has an opportunity to see an advertisement placed in a particular vehicle.

Weight: Gross Rating Points

Gross rating points, or GRPs, are

an indicator of the amount of gross

weight that a particular advertising

schedule is capable of delivering

GRPs=Reach(R) X Frequency(F)

Determining GRPs in Practice

• GRPs are the sum of all vehicle ratings in a media schedule

• Rating: proportion of the target audience presumed to be exposed to a single occurrence of an advertising vehicle in which the advertiser’s brand is advertised

Determining GRPs in Practice The Gross Ratings generated by a particular media schedule simply equal the sum of the individual ratings obtained across all vehicles included in that schedule.

Weight: Target Rating Points (TRPs)

Adjust a vehicle’s rating to reflect just those individuals who match the advertiser’s target audience

The Concept of Effective Reach

• How often does the target audience have an opportunity to be exposed?

• Effective reach is based on the idea that an advertising schedule is effective only if it does not reach members of target audience too few or too many times

How Many Exposures are Needed?

Three-Exposure Hypothesis

The minimum number of exposures

needed for advertising to be effective

is three.

Effective Reach in Advertising Practice

• 3-10 exposures during a media-planning period (typically 4 weeks)

• Using multiple media

• Subjective factors must be considered

Alternative Media Plans Based on a $12 million Annual Budget and

Four-week Media Analysis

An Alternative: Frequency Value Planning

• The objective is to select the media schedule that generates the most exposure value per GRP.

An Alternative: Frequency Value Planning

1. Estimate the exposure utility for each level of vehicle exposure that a schedule produces.

Frequency Value Planning (cont.)

2. Estimate the frequency distribution of the various media schedules that are under consideration.

3. Estimate the OTS value at each OTS level.

4. Determine the total value across all OTS levels.

5. Develop an index of exposure efficiency. Divide each schedule’s total value by the number of GRPs produced by that schedule.

Frequency Distributions and Valuations of Two Media

Schedules

Continuity

How advertising is allocated during

the course of an advertising

campaign: how should the media

budget be distributed?

Continuity• Continuous advertising schedule: an

equal number of ad dollars are invested throughout the campaign

• Pulsing: some advertising is used during every period of the campaign, but the amount of advertising varies from period to period.

• Flighting: the advertiser varies expenditures throughout the campaign and allocates zero expenditures in some months.

Recency Planning (a.k.a. The Shelf-Space Model)

(1)Consumers’ first exposure to an advertisement is the most powerful

(2)Advertising’s primary role is to influence brand choice

(2) Achieving a high level of weekly reach for a brand should be emphasized over acquiring heavy frequency

Optimizing Weekly Reach

• Advertising teaches consumers

• Influence brand selection

• Messages are most effective when close to

purchase time

• Cost-effectiveness of first exposure is greater

than subsequent

• Allocate budget to reach consumers often

• Reach target audience continuously rather than sporadically

Toward Reconciliation: It Depends!

• It can be said that advertising achieves its objectives through chance encounters with ready consumers.

• What works best depends on the particular circumstances of the brand.

Cost Considerations

The cost of reaching 1,000 members of

the target audience, excluding those

people who fall outside the target market

Cost considerations

Cost per Thousand (CPM)

Target Market (TM)

CPM= Cost of ad # of contacts (expressed in thousands)

CPM-TM= Cost of ad # of TM contacts

(expressed in thousands)

Use With Caution!

• Measures of cost efficiency, not of effectiveness

• Lack of comparability across media

• Misused unless vehicles within a particular medium are compared on the same basis

Tradeoffs

• Tradeoff must be made because media planners operate under the constraint of a fixed advertising budget

Media Planning Software

1. User develops a media database

2. User selects criterion for schedule optimization

3. User specifies constraints

4. User seeks out the optimum media schedule

Media Database For the Esuvee June, 2006

ADplus Magazine Schedule for the Esuvee

Diet Dr. Pepper CampaignCampaign Target and Objectives

• To increase Diet Dr. Pepper sales by 4% and improve its growth rate to at least 1.5 times that of the diet soft-drink category.

• To heighten consumers’evaluations of the key product benefit and image factors that influence brand choice in this category.

• To enhance those key brand-personality dimensions that differentiate Diet Dr. Pepper from other diet drinks.

Diet Dr. Pepper Campaign

Creative Strategy

Position the brand as tasting more like regular Dr. Pepper.

Media Strategy

Media plan for

Diet Dr. Pepper

Media Plan for Diet Dr.

Pepper

Media plan for Diet Dr. Pepper

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Saab 9-5

• In the late 1990s, Saab introduced a new luxury sedan: the Saab 9-5

• Saab had done little to expand its brand image in U.S.

• Historically it attracted younger customers, but needed the luxury sedan to appeal to families and older customers

Saab 9-5A mass-market advertising campaign was

undertaken with the following objectives:

1. Generate excitement for new 9-5 model line

2. Increase overall awareness for Saab name

3. Encourage customers to visit dealers and test-drive

4. Retail 11,000 units of 9-5 during introductory year

Saab 9-5 Media Plan- Part One

Saab 9-5 Media Plan- Part 2

Olympus Camera Media Plan

• The Stylus Verve: all of the features of the Stylus Digitus line, but uniquely designed and available in six colors.

• The m:robe—an MP3 player and a camera all in one.

Olympus Camera Strategy

• High-impact and event-driven

• Draw on their sponsorship of the U.S. Tennis Open and Olympus Fashion Week

Media Plan