1. Media Planning and Decisions
Chapter 11
Media Planning and Decisions

2. Major Decisions in Advertising

3. The Traditional Media Landscape
Satellite radio stations 2
Broadcast networks (TV and cable)
100
TV stations
3,510
Consumer magazines
5,340
Newspapers (daily and weekly)
8,100
Radio stations
13,898

4. Spending by Media (Billions of Dollars)

5. 2014年台灣總廣告量統計

6. 2014年台灣總廣告量統計

7. An Overview of Media Planning
Some basic terms and concepts
The media plan
Problems in media planning

8. 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.

9. 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.

10. The Media Plan Situation analysis Situation analysis
Marketing strategy plan
Marketing strategy plan
Creative strategy plan
Creative strategy plan
Setting media objectives
Setting media objectives
Determining media strategy
Determining media strategy
Relation to text This slide relates to material on pp and Figure 10-3 of the text.
Summary Overview The media plan determines the best way to get the advertiser’s message to the market. The basic goal is to find that combination of media that enables the marketer to communicate the message in the most effective manner to the largest number of potential customers at the lowest cost. The various steps and activities involved in developing the media plan are presented on this slide.
Use of this slide This slide can be used to introduce and provide an overview of the activities involved in developing a media plan. More detailed discussion of these activities will follow.
Selecting broad media classes
Selecting broad media classes
Selecting media within class
Selecting media within class
Media use decision
— print
— broadcast
— other media

11. Problems in Media Planning
Insufficient information
The timing of measurement: sweeps periods – February, May, July, and November.
Inconsistent terminologies
Time pressures
Difficulty measuring effectiveness

12. 2013年台灣媒體代理商前10名 排名 公司名稱 年度承攬額 （新台幣／億） 1 凱絡媒體 Carat Media 70.46 2
貝立德 Media PALETTE
64.55 3
媒體庫 MEC
64.26 4
宏盟媒體 OMG
38.01 5
星傳媒體 Starcom MediaVest Group
37.97 6
傳立媒體 MindShare
37.95 7
宏將廣告 Media Drive
37.59 8
實力媒體 ZenithOptimedia
32.49 9
彥星傳播 Glory Star
24.36 10
偉視捷 Vizeum
20.14

13. Developing the Media Plan
Market analysis
Establishment of media objectives
Media strategy development and implementation
Evaluation and follow-up

14. Market Analysis and Target Market Identification
To whom shall we advertise?
What internal and external factors are operating?
Where to promote?

15. 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)

16. 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

17. 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.

18. Where to promote? Buying power index Brand development index
Based on population, effective buying income and retail sales.
Brand development index
Category development index

19. 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

20. Category Development Index (CDI)
Percentage of product category total sales in market
Percentage of total population in market
X 100

21. Example 北 中 南 東 40% 27% 23% 10% 30% 35% 5% 20% 50% 15% 75 111 152 50
Population
40%
27%
23%
10%
Brand
30%
35% 5%
Product
20%
50%
15%
BDI 75
111
152 50
CDI
185 65
150

22. Brand and Category Analysis
High BDI
Low BDI
High market share
Good market potential
Low market share
Good market potential
High CDI
High market share
Monitor for sales decline
Low market share
Poor market potential
Low CDI

23. Brand and Category Analysis
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 product category shows high potential but the brand isn’t doing well; the reason should be determined.
High CDI
Low CDI
Both the product category and the brand are doing poorly; not likely to be a good place to advertise.
High BDI
Low BDI

24. Media Planning Criteria Considerations
The media mix
Target market coverage
Geographic coverage
Scheduling
Reach versus frequency
Creative aspects and mood
Flexibility
Budget considerations

25. Target Audience Coverage
Population excluding target market
Target market
Media coverage
Media overexposure
Coverage
Exceeding
Market
Partial
Full
Target
Proportion

26. Three Scheduling Methods
Continuity (連續型): a regular pattern of advertising.
Flighting (間歇型): a less regular schedule with intermittent periods of advertising and nonadvertising.
Pulsing (脈動型): a combination of the above two methods.
Pros & Cons of the three methods

27. Three Scheduling Methods
Continuity
Pulsing
Flighting
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

28. Reach versus Frequency
Awareness
Trial
Frequency
The actual audience for a commercial and a program
Figure 10-18

29. Unduplicated Reach of Both Duplicated Reach of Both
Reach and Frequency
Reach of Two Programs
Reach of One Program
Unduplicated Reach of Both
Duplicated Reach of Both
Total market audience reached
Total reached with both shows
Total reach less duplicate

30. GRPs Gross rating points (GRPs) = Reach × Frequency
Target rating points (TRPs)
The # of people in the primary target audience the media buy will reach – and the # of times.
Unlike GRP, TRP does not include waste coverage.
100 TRPs = 32% × = 37.2% × = 44.5% × 2.247
Relationship between GRPs & awareness
2500 → 70%
1000~2500 → 33%
<1000 → 0%

31. Example 家戶 第一次 第二次 第三次 第四次 收視次數 1 V 3 2 4 5 6 7 8 收視率/次 37.5% 50% 25%7 8
收視率/次
37.5%
50%
25%
62.5%

32. 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.

33. 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.

34. Graph of Effective Reach

35. Factors Important in Determining Frequency Levels
Marketing Factors
Brand history (－)
Brand share (－)
Brand loyalty (－)
Purchase cycles (－)
Usage cycle (－)
Competitive share of voice (＋)
Target group

36. Factors Important in Determining Frequency Levels
Message or Creative Factors
Message complexity (＋)
Message uniqueness (－)
New vs. continuing campaigns
Image vs. product sell
Message variation (＋)
Wearout
Advertising units (－)

37. Factors Important in Determining Frequency Levels
Media Factors
Clutter (＋)
Editorial environment
Attentiveness (－)
Scheduling (continuous < flighting or pulsing)
Number of media used (＋)
Repeat Exposures (－)

38. 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 mille (CPM) → magazine
Cost per rating point (CPRP) → broadcast media
Daily inch rate → newspaper

39. Determining Relative Cost of Media
Cost of ad space
(absolute cost)
Circulation
CPM =
X 1,000
Cost per mille (CPM)

40. Determining Relative Cost of Media
CPRP =
Cost of commercial time
Program rating
Cost per rating point (CPRP)
台灣目前所謂的保證CPRP價格大概是450 NT/sec

41. Example (Magazine) Cheers 親子天下 康健雜誌 Per-page Cost (封底) 280,000 260,000
Circulation
70,000
85,000
90,000
CPM
4,000
3,059
3,111

42. Example (Newspaper) 自由時報 爽報 Per-page Cost (頭版) 1,800,000 1,000,000
Circulation
628,295
333,800
CPM
2865
2996

43. 閱報人口統計
人口分佈統計
閱報率

44. Limitations of CPM Overestimate Underestimate
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)

45. Television Pros and Cons
Advantages
Disadvantages
Mass coverage
Mass coverage
Low selectivity
Low selectivity
High reach
High reach
Short message life
Short message life
Impact of sight, sound and motion
Impact of sight, sound and motion
High absolute cost
High absolute cost
Relation to text This slide relates to material on pp and Figure of the text.
Summary Overview This slide summarizes the various advantages and disadvantages of using television as a medium. Some of the more noteworthy advantages are the fact that it is a mass medium with high reach and it is provides a combination of sight, sound, and motion. The major disadvantages of TV as an advertising medium are that it has a high absolute cost, potentially high production costs for commercials, and has become very cluttered.
Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using television as an advertising medium. Chapter 11 provides a more complete evaluation of television as a medium.
High prestige
High prestige
High production cost
High production cost
Low cost per exposure
Low cost per exposure
Clutter
Attention getting
Attention getting
Favorable image
Favorable image

46. Radio Pros and Cons Advantages Disadvantages Local coverage
Audio only
Audio only
Low cost
Low cost
Clutter
Clutter
High frequency
High frequency
Low attention getting
Low attention getting
Relation to text This slide relates to material on pp and Figure of the text.
Summary Overview This slide summarizes the various advantages and disadvantages of using radio as a medium. Some of the more noteworthy advantages are the fact that radio has local coverage, is low cost, and may result in high frequency of exposures. The major disadvantages of radio advertising is that it has high clutter, low attention getting ability, and provides only an audio message.
Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using radio as an advertising medium. Chapter 11 provides a more complete evaluation of broadcast media including radio.
Flexible
Flexible
Fleeting message
Low production cost
Low production cost
Well-segmented audience
Well-segmented audience

47. Magazine Pros and Cons Advantages Disadvantages Segmentation potential
Long lead time for ad placement
Long lead time for ad placement
Quality reproduction
Quality reproduction
Visual only
Visual only
High information content
High information content
Lack of flexibility
Relation to text This slide relates to material on pp and Figure of the text.
Summary Overview This slide summarizes the various advantages and disadvantages of using magazines as an advertising medium. Some of the more noteworthy advantages of magazines as advertising media vehicles are the fact that they have good potential for segmentation, provide quality reproduction, and have longevity. The major disadvantages are it they have long lead times, provide only a visual message, and often lack flexibility.
Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using magazines. Chapter 12 provides a more complete evaluation of print media including magazines.
Longevity
Longevity
Multiple readers
Multiple readers

48. Newspaper Pros and Cons
Advantages
Disadvantages
High coverage
High coverage
Short life
Short life
Low cost
Low cost
Clutter
Clutter
Short lead time for placing ads
Short lead time for placing ads
Low attention getting
Low attention getting
Relation to text This slide relates to material on pp and Figure of the text.
Summary Overview This slide summarizes the various advantages and disadvantages of using newspapers as a medium. Some of the more noteworthy advantages are the fact that they have good potential for high coverage, the cost is relatively low, and they have short lead times. The major disadvantages of newspapers are that they have a short reading life, high levels of advertising clutter, and may have low attention getting ability.
Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using newspapers as an advertising medium. Chapter 12 provides a more complete evaluation of newspapers.
Ads can be placed in interest sections
Ads can be placed in interest sections
Poor reproduction quality
Poor reproduction quality
Timely (current ads)
Timely (current ads)
Selective reader exposure
Reader controls exposure
Reader controls exposure
Can be used for coupons
Can be used for coupons

49. Outdoor Pros and Cons Advantages Disadvantages Location specific
Short exposure time
Short exposure time
High repetition
High repetition
Short ads
Short ads
Easily noticed
Easily noticed
Poor image
Poor image
Relation to text This slide relates to material on pp and Figure of the text.
Summary Overview This slide summarizes the various advantages and disadvantages of using outdoor as an advertising medium. Some of the more noteworthy advantages are the fact that outdoor ads are location specific, easily noticed, and allow for high repetition. The major disadvantages are that outdoor has a short exposure time, can accommodate only short messages, and may have a poor image.
Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using outdoor advertising. Chapter 13 provides a more complete evaluation of outdoor media.
Local restrictions

50. Direct Mail Pros and Cons
Advantages
Disadvantages
High selectivity
High selectivity
High cost per contact
High cost per contact
Reader controls exposure
Reader controls exposure
Poor image (junk mail)
Poor image (junk mail)
High information content
High information content
Clutter
Relation to text This slide relates to material on pp and Figure of the text.
Summary Overview This slide summarizes the various advantages and disadvantages of using direct mail as a medium. Some of the more noteworthy advantages of direct mail are that it is highly selective, the reader controls the exposure, and a great deal of information can be provided. The major disadvantages of direct mail are high cost-per-exposure, clutter, and poor image.
Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using direct mail as an advertising medium. Chapter 14 provides a more complete evaluation of direct marketing.
Repeat exposure opportunities
Repeat exposure opportunities

51. Internet Pros and Cons Advantages Disadvantages
User selects product information
User selects product information
Limited creative capabilities
Limited creative capabilities
User attention and involvement
User attention and involvement
Websnarl (crowded access)
Websnarl (crowded access)
Interactive relationship
Interactive relationship
Technology limitations
Technology limitations
Relation to text This slide relates to material on pp and Figure of the text.
Summary Overview This slide summarizes the various advantages and disadvantages of using the Internet as an advertising medium. Some of the advantages of the Internet are the fact the user selects the information, is usually attentive and involved, and the medium is interactive. The major disadvantages of the Internet are limited creative capabilities, web snarl, and a lack of valid measurement techniques.
Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using the Internet as an advertising medium. Chapter 15 provides a more complete evaluation of the Internet.
Direct selling potential
Direct selling potential
Few valid measurement techniques
Few valid measurement techniques
Flexible message platform
Flexible message platform
Limited reach