Basic Components (see Media Workbook #26) 1. Reach, Frequency (and GRPs & GIs) & effective reach/frequency, if desired 2. Continuity (advertising timing pattern) 3. Specification of Targets (primary, secondary) 4. Special Geographic Emphasis (national vs. spot or national with regional/spot-heavy up) Also basic are: n Restrictions/Implications from Budget, Creative Strategy, Sales promotion Topic: Media Objectives

a.Specify reach and frequency, (and GRP) goals desired for each month or each flight or each quarter or overall campaign period on average Topic: Media Objectives 1. Reach, Frequency, ER, EF (and GRPs, GIs) e.g., January: R = 80%, F = 5 Quarter 1: R = 80% F = 7 Overall campaign R = 70%+, F = 6

b.Example of Reach and Frequency Goals Topic: Media Objectives 1. Reach, Frequency (and GRPs) 1.Achieve a minimum reach level of 80 with adults women aged during the two introductory months 2.Maintain at least 50% reach in each advertising period and maximize when sales promotion runs (in February and October) 3.Maximize reach and frequency during sales peaks (September – November)

C.Definitions n % of different targets or households exposed to a vehicle or schedule at least once over a specified (typically 4-week in broadcast) period n average # of times the reached households or target are exposed to a schedule over a specified (typically 4-week in broadcast) period = Reach = Average Frequency Topic: Media Objectives Basic Components Reach and Frequency

GRPs and GIs Both indicate gross delivery of (ad or vehicle) exposures n Gross Rating Points (GRPs) are expressed as a percent (of total population or) target population e.g., 240 million GIs Topic: Media Objectives Basic Components  Gross Impressions (Gis) are expressed as an absolute number e.g., 2400 GRPs

C.Definitions n The number or a range of exposures required to produce a desired impact (e.g., sales, brand awareness, brand liking,..) -- 3+, 4+, 3-10, n Number or % or targets exposed the required number of times = Effective Frequency = Effective Reach Topic: Media Objectives Basic Components Effective Reach and Frequency

Relationship among Reach, Frequency,GRPs,& GIs  GIs: Topic: Media Objectives Basic Components  GRPs:  With reach and frequency goals set, you’d know how many GRPs should be bought. Reach (as number) X Average Frequency Reach (as percent) X Average Frequency

 Reach X Frequency = GRPs Topic: Media Objectives Basic Components Q1 Q2 Q3 Q Period Reach Frequency GRPs Example 1440 = 80 X 6 X = 60 X 7 X = 80 X 5 X = 50 X 8 X 3

d.How to Set Reach and Frequency Goals -- The desired levels will depend on various situational factors Topic: Media Objectives Basic Components 1. Reach, Frequency (and GRPs)  Reach Decided according to the awareness level (goal) set -- e.g., 2400 GRPs/80% reach  70% awareness? Set equal to or higher than the main competition

d.How to Set Reach and Frequency Goals -- The desired levels will depend on various situational factors Topic: Media Objectives Basic Components 1. Reach, Frequency (and GRPs)  Reach Emphasized When anything new is introduced - new distribution, new product features, new ad copy, new sale promo, new packaging, new marketing/advertising objectives

d.How to Set Reach and Frequency Goals -- The desired levels will depend on various situational factors Topic: Media Objectives Basic Components 1. Reach, Frequency (and GRPs)  Frequency Emphasized When the competition is intense The question is: how much frequency is necessary

d.How to Set Reach and Frequency Goals Topic 3-1A: Media Objectives B. Basic Components 1. Reach, Frequency (and GRPs) Other Marketing Factors to Consider: Product Life Cycle, Breadth of Target, Purchasing Cycle, Budget

u For products in the introductory stage of product life cycle, __________ tends to be more important. F e.g. Toyota Matrix,  Product Life Cycle (PLC) Topic: Media Objectives Basic Components d. How to set reach & Frequency Goals Reach Frequency u For established products in later life cycle stages such as maturity stage __________ tends to be more important. F e.g. Tide, Pillsbury Cookie Dough, Coca Cola

u If target is broadly defined demographically or geographically, _________ would be more important.  Breadth of Target Market Reach Frequency u If target is narrowly defined, __________ would be more important. Topic: Media Objectives d. How to set reach & Frequency Goals

 Purchasing Cycle (PC) u For products with short PC (e.g., ), _________ may be more important; For products with long PC (e.g., ), _________ may be more important. Reach Frequency Topic: Media Objectives d. How to set reach & Frequency Goals

 R/F objectives must also give adequate consideration to: budget, promotional needs, stage of the campaign Topic: Media Objectives D. How to set reach & Frequency Goals

e.How to Set Effective Reach/Frequency Goals Topic 3-1A: Media Objectives 1. Reach, Frequency (and GRPs) Joseph Ostrow’s Model (pp ): Marketing Factors, Copy Factors, Media Factors May discard some of Ostrow’s categories and add your own categories (see GS #21)

2. Continuity a.Three Basic Continuity Strategies: Continuous: Flighting: Pulsing: advertising effort remains relatively constant throughout advertising effort varies over the campaign period, with some periods of time receiving no advertising ("HIATUS") advertising effort is notably varied with some advertising during every period Topic: Media Objectives

b. How to determine continuity strategy n Factors to consider u Seasonality of Sales u Purchase Cycle u Product Life Cycle u Budget u Others – Competition, Ad Goals, Topic: Media Objectives 1. Continuity

n When Is Each Continuity Strategy Useful? Continuous: Flighting: Pulsing: Topic: Media Objectives 2. Continuity Short PC, Mature PLC, Reminder Campaign Goals, Lack of Brand Loyalty, Media Discounts, Better Vehicle Choices & Ad Positions, Intense Competition, Seasonal Products or with Limited Budget, Long PC, Ability to Build Frequency/Familiarity for a Short Time, Introductory PLC Best, safest approach for products sold year round, those with distinctive seasonality of sales, Intense Competition,

n Other Consideration in Ad Scheduling u When sales are greatest or lowest u When competitors advertise Topic: Media Objectives 1. Continuity

3. Putting the R/F components Together  Budget Recap Table Topic: Media Objectives

D. Budget Re-Cap (Example) Topic : Media Objectives

Example: Media GoalsTime Period Reach Frequency GRPs 1. Jan / Feb 2. Mar / Apr 3. May 4. Jun / Jul / Aug 5. Sep / Oct / Nov 6. Dec 80% (Hi) 60% (Med) -- 50% (Med) 80% (Hi) -- 5 (Med) 7 (Med) -- 3 (Lo) 9 (Hi) Campaign Ave.= Total GRPs= 80 X 5 X 2 mo. 60 X 7 X 2 mo X 3 X 3 mo. 80 X 9 X 3 mo. -- Cal.(R X F X Months.) Topic: Media Objectives B. Basic Components

 Do your decisions above reflect your planned objectives? Topic: Media Objectives B. Basic Components 3. Putting the Basic Components Together  How do you calculate campaign average?  What could be some of the reasons for the low reach/frequency goals in Period 4? How about “hiatus’ in May and December?

Maximizing reach, frequency, and continuity is an unattainable goal.  Because of budget constraints Topic 3-1A: Media Objectives 1. How can tradeoffs be made between reach & frequency? 2. How can tradeoffs be made in determining continuity strategy Guidelines in Setting Goals -- Fundamental tradeoffs

More Terms and Calculations:  Frequency Distribution  Effective Reach, Effective Frequency  GRPs, GIs  Relationship among Reach, Frequency,GRPs, and GIs Topic 3-1B: Media Objectives

Reach, Average Frequency, Freq.Distribution 0 exposures exposures exposures exposures  Frequency (or Exposure) Distribution Topic 3-1B: Analytical Terms & Decision Criteria  # persons or households reached? X 100 = = 40  % reached? total population 50

Reach, Average Frequency, Freq.Distribution 0 exposures exposures exposures exposures  Average Frequency Topic 3-1B: Analytical Terms & Decision Criteria n Average Frequency?= (20X1) # of total exposures that occurred total population 50 # reached (15X2)+(5X3) = ==

n How are reach and frequency used in media planning and buying? Reach, Average Frequency, Freq.Distribution Topic 3-1B: Analytical Terms & Decision Criteria u used in setting media objectives (e.g., 75% reach and 3 frequency in January) & in evaluating value of a schedule (Does this media schedule deliver the set reach and frequency goal within the budget?)

n With a given level of GRPs, R/F are inversely related Relationship among Reach, Frequency,GRPs,& GIs Topic 3-1B: Analytical Terms & Decision Criteria Example 1: If you buy 120 GRPs, and avg. frequency of exposures among target should be 6 in June, what will be your campaign’s reach in that month? Example 2: Given the budget for a GRPs of 120, if you have to reach at least 40% of target, what frequency can you expect the schedule to deliver? GRPs = AF = 6 R = GRPs = R = AF =

GIs and GRPs n GRPs for a media schedule = sum of all ratings delivered in the schedule Topic 3-1B: Analytical Terms & Decision Criteria Example: Assuming the population base of 93.1 million TV homes, what GRPs and GIs will this schedule deliver? Prog. A B C D Rating # Spots GRPs 20X2=40 15X4=60 25X2=50 10X5=50 0.6X93.1M=55.86M 0.5X93.1M=46.55M GIs = (GRP/100)X Pop. GIs 0.4X93.1M=37.24M = 200 GRPs; 37m+56m+47m+47m = 187m GIs

Relationship among Reach, Frequency,GRPs,& GIs n What happens if you raise GRP level? Topic 3-1B: Analytical Terms & Decision Criteria n As GRPs are added, reach will builds at a decreasing rate while frequency will build at an increasing rate.

Relationship among Reach, Frequency,GRPs,& GIs GIs: Topic 3-1B: Analytical Terms & Decision Criteria GRPs:  GRPs or GIs include duplication of audience: Reach (#) + Duplication (#) Reach (%) + Duplication (%)

Relationship among Reach, Frequency,GRPs,& GIs Reach: Topic 3-1B: Analytical Terms & Decision Criteria Reach:  Audience duplication info is necessary to estimate reach GIs - Duplication (all in #) GRPs - Duplication (all in %)

Effective Reach & Frequency Effective Frequency: Topic 3-1B: Analytical Terms & Decision Criteria Effective Reach:  Presentation