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Media Planning Client provides relevant information to agency in the form of a media brief. Market Profile Brand Media Profile Competitor Media Usage Target.

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Presentation on theme: "Media Planning Client provides relevant information to agency in the form of a media brief. Market Profile Brand Media Profile Competitor Media Usage Target."— Presentation transcript:

1 Media Planning Client provides relevant information to agency in the form of a media brief. Market Profile Brand Media Profile Competitor Media Usage Target Market Profile Media Objectives Budget Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

2 Media Planning Process
Marketing Plan Advertising Plan Creative Plan Media Objectives The media plan is a document that recommends how a client’s advertising funds can be best spent to achieve advertising objectives. The plan provides rationale for media selection and rejection, reach and frequency recommendations for the duration of the plan. Communication between agency and client peak when when media plans are presented. At an earlier stage of the planning process (marketing plan), the budget has already been determined for advertising and other promotional activity. In the media plan, firm objectives are established and strategies to achieve the objectives are carefully rationalized. Execution details are precise accounting for every dollar invested in media. Media Strategies Media Execution Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

3 Media Objectives Who is the target market? What is the message?
Where are the priority markets? When is the best time to advertise? How many, often, long? Media objectives are clearly worded statements that outline what the media plan should accomplish. Precise statements are developed concerning who, what, where, when and how provide guidelines for detailed strategic consideration. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

4 Media Strategies Numerous factors are considered for achieving objectives: Target Market Nature of Message Reach, Frequency, and Continuity Market Coverage A host of strategic factors are considered when developing a media strategy. Some prove to be more important than others. Money (the availability or lack of it) dictate decisions in each strategic area. Each strategic variable is discussed in more detail in slides that follow. This is a summary chart to introduce media strategy Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

5 Media Strategies Numerous factors are considered: Timing of delivery
Competitor media usage Media alternatives Budget See specific slides for specific details. This is a summary chart to introduce the topic of media strategy. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

6 Target Market Media Strategies
Shotgun Profile Match Essentially, the task of a media planner is to match the advertised product’s target market profile with a compatible media profile (e.g., the readership profile of a magazine). A good media plan strives to be as efficient as possible (maximum impact for minimum cost) Shotgun - The target market is general in nature therefore the strategy is suited for a product with widespread appeal. Mass media such as television and outdoor are appropriate. Profile Match - The target market is carefully defined by demographic, psychographic and geographic characteristics. Media with similar profiles are selected. Rifle - A strategy used when a target is defined by some common characteristic (e.g., an interest or a hobby). Other demographic variables are less important. Media options selected are very specific. Rifle Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

7 Balancing Strategic Variables
Reach How many? Frequency How often? Continuity How long? Setting priorities for each of the three variables is a challenge. Regardless of the importance of any individual variable, once one of the variable increases, the other variables will have to decrease. A budget is a budget and it restricts decisions in each of the areas. For example, if you want to maximize reach, it will be at the expense of frequency and continuity. If you want to maximize frequency then reach objectives may have to be lowered. How flexible is the plan? Can it be altered? Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

8 Reach The total unduplicated audience exposed to a message one or more times in a period (week). Reach can be expressed as individuals or households See media math slide for an illustration of a reach calculation Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

9 Reach Formula Reach = # households tuned in # households in area
= ,000 250,000 = % Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

10 Frequency The average number of times an audience is exposed to a message over a period of time (week). See Media math slide for a frequency calculation. The term frequency and average frequency are interchangeable. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

11 Frequency Formula Frequency = Total Exposures Reach = 250,000 50,000
= 250,000 50,000 = Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

12 Continuity The length of time required to generate impact on a target audience. Continuity usually refers to flights (the number of weeks needed to generate impact on an audience). Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

13 Gross Rating Points GRPs refer to the weight of a media schedule against a pre-determined target audience. GRP = Reach (%) x Frequency = 50 x 3.5 = 175 Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

14 Impressions Impressions, or total exposures, are the total number of commercial occasions multiplied by the total target audience potentially exposed to each occasion. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

15 Impressions Formula Impressions = Reach x Frequency = 500 000 x 4
= (Reach = the number of individuals or households) Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

16 Media Coverage Identifying the number of markets where advertising will occur. National Regional Key Market Selective Coverage refers to the number and identity of markets in which advertising occurs over the course of the media plan. Selection is based on factors such as: level of distribution in a market and the importance of the area in terms of sales volume. National - media coverage wherever the product is available Regional - allocating funds in an equitable manner across all regions (e.g., funds allocated by regional sales volume importance or some kind of brand development index). If additional investment is made in problem markets (corrective action) then there will be less available for other markets. Key Market - Allocating funds to urban markets that have been identified as priorities. Selective - Reaching a target regardless of location, population or distribution (rifle strategy). Specific media are employed t reach people with specific interests. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

17 Advertising Flights Continuous Spending
Weight (GRPs) J F M A M J J A S O N D Flighting: Various weight levels This chart compares a continuous spending pattern with a pulsing pattern. The pulsing pattern is more common than the continuous pattern. It is the rationale behind the strategy that must be communicated to the client. The weight of a plan is expressed in terms of GRPs (gross rating points) Flight (Flighting) - the period of time in which advertising occurs (usually expressed in number of weeks) Hiatus - the downtime between advertising flights Weight (GRPs) J F M A M J J A S O N D 8.10 Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

18 Scheduling Options Skip Even Seasonal Pulse Blitz Build-up
Even - spending in a uniform manner over a designated period. Skip - spending in an alternating manner (every other week, etc.). This plan stretches dollars over an extended period. Pulse - the grouping of advertisements in flights over a pre-determined lengths of time. Weight levels can vary in each flight. Seasonal - heavy spending in the preseason; taper off during the season. Blitz - heavy spending early for high awareness; taper off later on (introductions) Build-up - low weigh initially with gradual building to an intensive campaign (introductions) Blitz Build-up Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

19 Media Alternatives Television Radio Newspaper Magazines Out-of-Home
Direct Response Internet Assess pros and cons of each Identify primary and secondary media Budget is key influence Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

20 Budget Influence on Media Strategy
Large Budget Small Budget Reach Frequency Continuity Coverage Timing Media Type Selective Media Usage Media Mix Primary and Secondary Media This is a summary chart. It shows the effect that the size of a budget has on a media strategy. Regardless of budget size, the same strategic variables are considered. However, smaller budgets usually produce a selective media strategy that employs fewer media vehicles. With a larger budget there is much more flexibility. A multimedia plan is common with primary and secondary media clearly identified. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

21 Media Selection Process
Newspaper Television Outdoor Radio Magazine Transit General Men’s or Specific Interest Women’s Interest Time, Maclean’s Chatelaine, Can.Business Type Class A 3-step process: Type - various media are evaluated and compared on the basis of how effectively and efficiently they reach the target. Class - Within a media there are different types (e.g., with magazines there are general interest and specific interest titles). The target market description determines direction. Specific Media - Which option is most cost-efficient (CPM comparisons guide decisions in this area.) Specific Medium Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

22 Media Execution Media Scheduling and Budgeting (Blocking Chart)
Media Buying (Negotiation) Once the plan is in place the agency media buyers go into action. The media buyer acts as a negotiator with media representatives. The buyer must maximize the efficiency of the media budget by seeking favourable positions and negotiating the best possible rates in accordance with the details of the media plan. Computerized media databases available to advertising agencies play a key role in the development of a media plan. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

23 Agency Role in Media Planning
A media director oversees staff responsible for developing the plan and selecting, scheduling, and buying time and space. Computers play a key role in media planning. Pre-buy Analysis Estimated audience deliveries in a schedule Pre-buy Analysis - A report of estimated audience deliveries of a broadcast media spot or schedule purchased. Reach figures are included with cost figures when a client approves the plan. Post-buy Analysis - A report of actual audience deliveries calculated after a specific spot or schedule has run. Post-buy Analysis Actual audience deliveries Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

24 Factors Influencing Budgets
Customer Characteristics Degree of Competition Product Life Cycle Management Attitude Determining the amount of money to spend on advertising each year is a challenging process for the manager. There are three decision areas: How much to spend in total? How to divide the budget between various marketing communications variables (advertising, sales promotion, public relations, event marketing)? How to allocate the budget (media, area, timing)? 1. Customer Characteristics - consumer markets tend to allocate more to advertising than industrial markets. A competitive budget is needed to build brands. 2. Competition - The amount spent by competitors is an important influence. A decision on how advertising competitive a brand wants to be is needed. 3. Product Life Cycle- significant advertising investment is needed in the introduction and growth stages; taper off thereafter. 4. Management Attitude - a long-term investment minded attitude is needed in order to see campaigns through to completion. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.

25 Budgeting Methods 1. Percentage of Sales 2. Fixed Sum per Unit Sold
3. Industry Average 4. Task 5. Share of Advertising / Share of Market Given the competitive situation in the marketplace it may be wise to consider several different methods when determining the size of an advertising budget. Percentage of Sales - pre-determined percentage of forecasted sales Fixed Sum Per Unit - essentially the same as above but using n amount per unit sold Industry Average - the average of forecasted expenditures of competing brands (assumes knowledge of past advertising spending) Task - define the task; determine the type and quantity of advertising needed; and determine the cost of the recommendation (activity determined before budget decided) Ad Share / Market Share - share of advertising (mind) should be at least equal to share of market if a brand wants to maintain its position. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.


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