1. 3.08
Manage media planning and placement to enhance return on marketing investment

2. Determine ADVERTISING REACH and MEDIA COSTS

3. ADVERTISING REACH
WHAT: Number of PEOPLE THAT ARE EXPOSED to your message:
CALCULATION (%):Divide the target audience exposed to an ad by the total target audience
There are 1,500,000 fans of Tar Heel Football. A recent advertisement was viewed by 375,000 of them. (375,000/1,500,000 = 25% ADVERTISING REACH)
WHY: Determines if ad targeted the right audience effectively.
HOW: RESOURCES
Circulation numbers, subscriptions or rating points

4. Reach WITHOUT Frequency =
FREQUENCY and REACH
FREQUENCY :Number of times you expose each person to your message
Reach WITHOUT Frequency =
Wasted Money

5. NEWSPAPER MEDIA COSTS Factors affecting COSTS (Lower than most media):
Position and color of ad
Split-runs (print different ads for the same product)
National ads cost more than local
Types of RATES:
PREFERRED POSITION: ads placed in location with best exposure for their target market (Ex: Sports ad in the Sports section instead of Garden section)
Flat: one time only
Sliding scale/ VOLUME DISCOUNTS: more published = cost less per ad
Combination: ads and inserts

6. MAGAZINE MEDIA COSTS Factors affecting COSTS (Higher than Newspaper):
CIRCULATION: Number of people reached
Preferred Position
Spreads
Split-runs
Types of RATES:
Size
Frequency
Combination

7. TELEVISION MEDIA COSTS
Factors affecting COST:
RATINGS FOR CERTAIN SHOWS
Determines which shows attract a high volume of viewers
Time availability
High demand for time during peak winter seasons
Length of commercials
Types of RATES:
Set according to “GROSS RATING POINTS” (GRPs)
GRPS = REACH X FREQUENCY
RUN OF SCHEDULE (ROS)
Ad is run at the station’s convenience for lower cost

8. RADIO MEDIA COSTS Factors affecting COST: Types of RATES: “DAYPART”
Morning drive time, Evening drive time, Daytime, Nighttime
Length
NUMBER OF LISTENERS
Types of RATES:
RUN-OF-SCHEDULE (ROS)
TOTAL AUDIENCE PLANS (TAPs)
PACKAGED PLANS offer reduced rates when purchase a series of commercials instead of just one

9. INTERNET MEDIA COSTS Factors affecting COST: Types of RATES:
Creative type (Text, image, sound, etc.)
Size
Placement
Types of RATES:
COST-PER-THOUSAND (aka) COST-PER-MILE (CPM)
COST-PER-CLICK (CPC)

10. OTHER MEDIA COSTS DIRECT MAIL OUT OF HOME Factors affecting COST:
Size of the space
Length of time
Production costs
Types of RATES:
Determined by:
Visibility
Location
Population
Factors affecting COST:
Production costs
Mailing list costs
Labor costs
Types of RATES:
Postage
Shipping
CAN TARGET A
SPECIFIC MARKET

11. ABSOLUTES vs. RELATIVE MEDIA COSTS
ABSOLUTE COSTS
RELATIVE COSTS
TOTAL COST to run an ad
= Cost of production +
Cost for time/space purchased
Determines which one media is most cost effective
COST PER THOUSAND (CPM)
Cost per GROSS RATING POINT (GRP)

12. “You Do”- FOLDABLES: How are Media Costs Determined?
Circulation (size of the audience)
Circulation is the most significant factor affecting media costs.
In most cases, the larger the media vehicle’s audience, the higher the cost of advertising space or time will be.
RATE CARDS: Price lists showing rates for space or time
Production costs
High-quality television and magazine advertisements can cost a great deal to produce.
On the other hand, local radio and newspaper advertisements are relatively inexpensive to produce.
Preferred space positions
Airing an advertisement at a specific time or running it on a particular page generally costs more.
Available discounts
Discounts are often offered on the basis of size, frequency, or dollar volume.
Demographic makeup of the medium’s targeted audience
You can typically expect to pay higher advertising rates in media vehicles that have narrowly defined audiences than in ones that are targeted at general audiences.
Reproduction quality
Magazines with excellent reproduction quality, such as The New Yorker, can command higher rates than publications with lower-quality reproduction.
Gross Rate Point (GRP) = Reach x Frequency
Cost Per Thousand (CPM) =(Cost of the ad × 1,000) ÷ Target audience

13. SELECT ADVERTISING MEDIA

14. IMPORTANCE OF SELECTING ADVERTISING MEDIA
Media cost is the largest cost of advertising
Complex selection process
Must select the most effective media to reach target market

15. SITUATIONAL FACTORS to CONSIDER
OBJECTIVES (Goals) of the advertisement
TARGET MARKET
Identify what media the target market uses to most
Limit WASTE CIRCULATION (Number of people exposed to an advertising message who are not target market)
COMPETITION
Use the same advertising media to reach same target market
BUDGET
How much money can you spend?
PRODUCT
DISTRIBUTION

16. MEDIA FACTORS to CONSIDER
Cost
Media Coverage
EXTENSIVE COVERAGE: reaching a large audience (REACH)
INTENSIVE COVERAGE: reaching a smaller audience more often (FREQUENCY)
Geographic Coverage
Lead Time
Amount of time required to place an ad by the media
Radio has shortest
TV and Magazines have longest

17. QUANTITATIVE & QUALITATIVE FACTORS
Reach
Frequency
Cost-per-thousand (CPM)
IMPACT
Impression an ad will make
Credibility
EDITORIAL ENVIRONMENT
Management and talents of staff

18. STEPS TO SELECTING ADVERTISING MEDIA
Identify SITUATIONAL FACTORS
Identify MEDIA FACTORS
SELECT the MEDIA OUTLET
4. Determine the TIMING STRATEGY
CONTINUOUS (Steady, regular pattern)
Frequently used/purchased products
FLIGHTING (During peak sales periods ONLY)
PULSING (Bursts of advertising)

19. “You Do”: PROJECT
Each group will be assigned one of the following: Radio, Direct Marketing, Outdoor, Newspaper or Magazine Advertising.
You will need to research and identify the following information:
Pros of using your media for advertising
Cons of using your media for advertising
Types of Costs using your media advertising
Organize information above in a POWERPOINT Presentation to be presented to the class.
CREATE an advertisement for your media
Radio- Needs to be a SCRIPT read to the class Identify which station it will be on and what time of day it will be played. WHY? (Hint- needs to reach your target audience)
Magazine- Needs to be a full-page ad. Identify which magazine it will be in and what day/month subscription. WHY? (Hint- needs to reach your target audience)
Direct Marketing- Who is on your mailing list and when will you be mailing it out? (Define the target market) (Hint- needs to reach your target audience)
Outdoor- Which road/physical location will it be located and for how long and what time of year? (Hint- needs to reach your target audience)
Newspaper- Needs to be a full-page ad. (You chose if it is color or not) Which newspaper will it be in and on what day? (Hint- needs to reach your target audience)