Media Planning and Buying Part 3: Practice: Where are Media Heading? Chapter 11

Questions We’ll Answer CHAPTER KEY POINTS Questions 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?

THE MEDIA PLANNING SIDE OF ADVERTISING Media Planning Basics 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).

THE MEDIA PLANNING SIDE OF ADVERTISING Key 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.

Research: Information Services THE MEDIA PLANNING SIDE OF ADVERTISING Research: Information 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

THE MEDIA PLANNING SIDE OF ADVERTISING 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.

Target Audience and Media Use KEY MEDIA PLANNING DECISIONS Target Audience and Media Use Identifying the target audience is a key decision. The idea is to match the advertiser’s target with a particular medium’s audience. Every media vehicle’s audience is different and therefore varies regarding what percent of its audience is in the brand’s target audience.

KEY MEDIA PLANNING DECISIONS The Aperture Concept Aperture: when consumers are most receptive to a brand message. Goal: to reach the right people at the right time with the right message. Advertising is most effective when it reaches the right people at the right time and place with the right message.

Measured Media Objectives KEY 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.

KEY MEDIA PLANNING DECISIONS Media Mix Selection Multiplying Media Strengths Media chosen based on plan objectives and media strengths 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. 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. Cross Media Integration Various media work together to create coherent brand communication; synergy between different media messages Image transfer—how radio reinforces TV messages

MEDIA STRATEGY TOOLS AND TECHNIQUES 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 AND TECHNIQUES Media Objectives 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 The tighter the focus on a target market, the easier it is to find appropriate media to deliver a relevant message.

Media Targeting Strategy MEDIA STRATEGY TOOLS AND TECHNIQUES Media Targeting Strategy 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) determines the strength of the brand in geographical areas. The CDI tells you where the category is strong and weak, and the BDI tells you where your brand is strong and weak.

MEDIA STRATEGY TOOLS AND TECHNIQUES Media Mix Strategy 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

Scheduling Strategies MEDIA STRATEGY TOOLS AND TECHNIQUES Scheduling Strategies 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 Strategies MEDIA STRATEGY TOOLS AND TECHNIQUES Scheduling 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 CPPs MEDIA STRATEGY TOOLS AND TECHNIQUES Cost Efficiency: CPMs and CPPs Used to measure a target audience’s size against the cost of reaching that audience CPM (Cost per thousand) An estimate of the cost to expose 1,000 audience members CPM = cost of message unit/gross impressions x 1,000 CPP Comparing media vehicles by relating the cost of the message to the audience rating. CPP = cost of message unit/program or issue rating

MEDIA STRATEGY TOOLS AND TECHNIQUES The Media Budget The size of the budget greatly affects media decisions A small budget campaign may not be able to afford TV, but could afford radio A small budget may allow for only a local or regional campaign or campaigns; a larger budget may allow for a national campaign At the end of the planning process, the media planner develops a pie chart showing media allocations

IMC and Contact Point Planning MEDIA STRATEGY TOOLS AND TECHNIQUES IMC and Contact 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

A SAMPLE MEDIA PLAN Prentice Hall, © 2009 11-20

A SAMPLE MEDIA PLAN

A SAMPLE MEDIA PLAN

A SAMPLE MEDIA PLAN

A SAMPLE MEDIA PLAN

Media Buying Basics MEDIA BUYING 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

The Dynamic Media Landscape MEDIA PLANNING TRENDS The Dynamic Media Landscape 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 the new ways media is used and systems like TiVo and interactive TV Most media research measures independent media, not the effectiveness of combined media.

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