Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed McGraw-Hill/Irwin 10 Media Planning and Strategy

Media Terminology A series of decisions involving the delivery of messages to audiences Media Planning Media Planning WHAT are the goals to be attained by the media strategy and program Media Objectives Media Objectives Decisions on HOW the media objectives can be attained Media Strategy Media Strategy 10-2

Media Terminology - continued Number of different audience members exposed at least once in a time period Reach Number of times the receiver is exposed to the media vehicle in a time period Frequency The specific program within a medium category such as “GQ” or “Glee” Media Vehicle 10-3 General categories of delivery systems, such as TV, print, internet, radio Medium

Test Your Knowledge For EACH of the items listed below, determine which is a medium and which is a media vehicle: a) newspapers b) television c) American Idol d) Cosmopolitan e) magazines f) internet g) New York Times h) outdoor advertising i) Facebook 10-4

Media Plan Guides media selection Aims to find a combination of media to communicate a message: In the most effective manner To the largest number of potential customers At the lowest cost

The Media Plan Selecting vehicles within class Selecting broad media classes Determining 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 Setting media objectives Marketing Plan Situation analysis Creative strategy plan 10-6

Media Planning Difficulties Measurement Problems Measurement Problems Lack of Information Inconsistent Terminology Inconsistent Terminology Time Pressure Time Pressure Problems in Media Planning Problems in Media Planning 10-7 Sweeps Period sets ad rates CPM – Print CPRP - TV Actions by competitor Idol vs. Dance

Developing a Media Plan Evaluate performance Analyze the market Establish media objectives Develop/implement media strategy 10-8

Using Index Numbers Percentage of users in a demographic segment Percentage of population in the same segment Index = X 100 Index Number 10-9 To determine to WHOM we should advertise The HIGHER the index, the more potential that target has

Application of Index TARGETINDEX Age Age Occupation: Professional143 Occupation: Management133 HHI $75,000 - $149, HHI <$20,00043 Region: West159 Region: South66 Snowboarding Last 12 months Refer to Page 345 – Figure 10-5 in Textbook for Full Chart

WHERE should we promote To determine WHERE we should promote geographically: We look at TWO indices: a) CDI (Category Development Index) and b) BDI (Brand Development Index) 10-11

Using the Category Development Index Percentage of total product category sales in market Percentage of total U.S. population in market CDI = X 100 Category Development Index Indicates how well the category is selling in that geographic area The higher the index, the better the potential in that market

10-13 Map of United States: Four Regions

10-14 Percent Population By Region West Population: 20% South Population: 20% Midwest Population: 30% Northeast Population: 30% Total Population USA = 100%

10-15 Percent all Sunscreen Sold By Region West Sunscreen: 5% South Sunscreen: 45% Midwest Sunscreen: 40% Northeast Sunscreen: 10% Total Sunscreen Sold= 100%

10-16 CDI for Sunscreen Category By Region West 5/20 x 100 = 25 South 45/20 x 100 = 225 Midwest 40/30 x 100 = 133 Northeast 10/30 x 100 = 33

Using the Brand Development Index Percentage of brand to total U.S. sales in market Percentage of total U.S. population in market BDI = X 100 Brand Development Index Indicates how well the brand is selling in that geographic area The higher the index, the better the potential in that market

10-18 Percent Coppertone By Region West Coppertone: 25% South Coppertone: 15% Midwest Coppertone: 50% Northeast Coppertone: 10% Total Coppertone Sold= 100%

10-19 BDI for Coppertone Brand By Region West 25/20 x 100 = 125 South 15/20 x 100 = 75 Midwest 50/30 x 100 = 166 Northeast 10/30 x 100 = 33

10-20 CDI and BDI By Region West Low CDI High BDI South High CDI Low BDI Midwest High CDI High BDI Northeast Low CDI Low BDI

Test Your Knowledge In calculating both the brand development index (BDI) and the category development index (CDI), a media planner obtains the following results: Low BDI and High CDI. What do these results imply? A) High market share; good market potential B) Low market share; good market potential C) High market share; monitor for sales decline D) Low market share; poor market potential 10-21

Using BDI and CDI 10-22

Media Objectives Goals for the media program Some examples: Reach 60% of the target audience at least three times over a 6 month period Create a positive brand image through mood and creativity 10-23

Developing Media Strategies Criteria to consider during plan development The media mix Target market coverage Geographic coverage Scheduling Reach and frequency Creative aspects and mood Flexibility Budget 10-24

The Media Mix Selection considerations Objectives sought Product characteristics Budget Examples: Visual demonstration --- use TV Coupon delivery --- use magazines or newspapers 10-25

Reaching Target Markets TITLEINDEX Websites: MTV.com279 Websites: IMDb.com266 Websites: Hulu.com251 Websites: iTunes.com206 TV Show Types: Soccer204 Websites: Pandora.com202 Websites: disney.com188 Websites: Gmail.com187 TV Show Types: Sunday News69 Websites: Farmville.com5 Media Usage of Snowboarders Refer to Page 353 – Figure in Textbook for Full Chart The higher the index, the more the potential Information to match media to target markets

Geographic Coverage Spend more media money in areas with greater potential Promote skis in areas that have snow!

Scheduling Timing promotional efforts such that they coincide with the highest potential buying times Methods Continuity: Regular pattern of advertising without gaps or non- advertising periods Flighting: Involves intermittent periods of advertising and non-advertising Pulsing: Maintains continuity, but promotional efforts are stepped up at times

Scheduling Methods Continuity Pulsing Flighting JanFebMarAprMayJunJulAugSepOctNovDec toilet paper detergent snow skis beer

Duplicated / Unduplicated Reach A. Reach of One ProgramB. Reach of Two Programs C. Duplicated ReachD. Unduplicated Reach Total market audience reached Total market reached with both shows Total reach less duplicated shows 10-30

Reach versus Frequency Budget constraints Need to trade off reach vs. frequency message to be seen by more people message to be seen by fewer people, but more often Achieving awareness for new brands requires a lot of reach Optimal frequency anywhere between 3 – 10 exposures 10-31

Rating Points Program rating % of US households watching the show Gross ratings points (GRPs) GRP = Reach X Frequency Need at least 2500 GRPs to be effective 10-32

Building a Media Plan VehicleReachFrequencyGRPsCumulative GRPs American Idol Cosmopolitan Glee USA Today CSI Keep adding vehicles, till effective GRP level reached

Marketing Factors Determining Frequency Brand History Competition Purchase Cycles Brand Loyalty Brand Share Usage Cycle Marketing Factors higher = less new = more high=less daily=more more=moreshorter=more

Message Factors Determining Frequency Message Complexity Message Uniqueness New vs. Continuing Campaigns Image Versus Product Sell Message Variation Wear out if high frequency Advertising Units Message or Creative Factors Message or Creative Factors simple=less more=less new=more image=more single=less large=less

Media Factors Determining Frequency Media Factors Clutter Editorial environment Attentiveness Scheduling Number of media used Repeat exposures

Creative Aspects and Mood Use the correct medium to support your strategy Lancôme – print Hallmark – TV Certain media create the correct mood for your brand Skiing magazine for snow skis Gourmet magazine for wines 10-37

Flexibility in Media Planning Strategies Market opportunities Market threats Availability of media Changes in media or media vehicle Flexibility Red wine beneficialCompetition Drop in ratings All media space sold

Budget Considerations Absolute Cost One page ad in full color in Newsweek magazine costs $165,000 Relative Cost Relationship between price paid and size of audience (circulation) Used to determine which vehicle is the more cost effective option Measured via CPM (cost per thousand) 10-39

Determining Relative Cost of Print Media Cost of ad space (absolute cost) Circulation CPM =X 1,000 Cost per thousand (CPM) CPM may underestimate circulation due to Pass Along Rate (# of people who read magazine without buying it)

Example of CPM calculation TimeThe Week Cost Per Page$366,380$72,800 Circulation4.07 million535,000 Calculation of CPM 366,380 x 1,00072,800 x 1,000 4,070,000535,000 CPM$91.44*$ The lower the CPM, the more cost efficient the media buy *TIME is the most cost efficient

Television Pros and Cons Mass coverage High reach Sight, sound, motion High prestige Low cost per exposure Attention getting Favorable imageAdvantages Short message life High production cost Low selectivity High absolute cost ClutterDisadvantages 10-42

Radio Pros and Cons Local coverage Low cost High frequency Flexible Low production cost Well-segmented audienceAdvantages Clutter Fleeting message Audio only Low attention gettingDisadvantages 10-43

Magazine Pros and Cons Segmentation potential Quality reproduction High information content Longevity Multiple readersAdvantages Visual only Long lead time for ad placement Lack of flexibilityDisadvantages 10-44

Newspaper Pros and Cons High coverage Low cost Short lead time for placing ads Local markets Timely (current ads) Reader controls exposure Can be used for couponsAdvantages Clutter Poor reproduction quality Short life Low attention getting Selective reader exposureDisadvantages 10-45

Outdoor Pros and Cons Location specific High repetition Easily noticedAdvantages Short ads Local restrictions Short exposure time Poor imageDisadvantages 10-46

Direct Mail Pros and Cons High selectivity Reader controls exposure High information content Repeat exposure opportunitiesAdvantages Poor image (junk mail) High cost per contact ClutterDisadvantages 10-47

Internet Pros and Cons User selects product information User attention and involvement Interactive relationship Direct selling potential Flexible message platformAdvantages Lack of controls Questionable measurement techniques Clutter Limited reachDisadvantages 10-48

Test Your Knowledge In terms of media vehicles, ______ would be most efficient medium if you wanted local coverage at a low cost. A) television B) interactive media C) direct mail D) magazines E) newspapers 10-49

Evaluation and Follow-Up Use again, or analyze flaws How well did these strategies achieve the media objectives? How well did the media plan contribute to attaining the overall marketing and communications objectives? 10-50