1. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 13 Media Planning Key Points: How do you explain the basic concepts used in comparing media? What are the key media planning objectives and strategies? How do you make decisions on combining media in a media mix? Chapter Thirteen Chapter

2. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Media Planning Overview Media planning is about determining the best Media Mix (i.e., the best combination of one-way and two-way media) to reach a particular target for a particular brand situation.

3. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Media Planning and Buying Functions Media planners perform four basic functions: Conduct media research Determine media objectives and strategies Determine the media mix Do the actual media buy

4. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Media Plan Questions That Must Be Answered Figure 13-1, p.460

5. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Lee Dungarees Media Plan/Mix Figure 13-2, p.460 Go to www.buddylee.comwww.buddylee.com

6. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Media Mix Determining a media mix involves two basic decisions:  Which media to use?  How much of each? Media mix decisions factors include:  Media cost/value  Lead time  Geographic concentration  Relationship building  Number of targets Number and variety of objectives Synergy Brand differentiation Message type and complexity

7. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Relative Impact by Media Type Figure 13-7, p.484

8. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Media Planning Reach (% of target audience with opportunity for exposure to media vehicle(s) or media plan in a given time frame) + Frequency (average number of times target is likely to be exposed to the ad in a given time frame) 100%

9. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. The Difference between Reach and Frequency

10. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Measuring Reach In the case of radio and television, a program’s rating is basically the same as its reach. Example: A broadcast rating of 5 means that 5 percent of the households in a station’s coverage area were exposed to that particular program. The reach of outdoor advertising is determined by the percentage of cars in a metropolis area that drive by billboards carrying a particular brand message within a 24 hour period. It’s called a showing. Reach can also be determined by the number of message impressions. Most marketers are not interested in reaching everyone. It is best to do media planning based on targeted reach.

11. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Effective Frequency How much is enough? Effective frequency, the number of times a message needs to be seen to make an impression or achieve a specific level of awareness, is somewhere between 3 and 10.

12. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Effective Frequency The level of frequency will vary with every brand because there are so many variables: The offer – its value and complexity. The attention value of the medium itself. The attention-getting power of the message itself. The target audience’s level of need or desire to learn about a brand. The MC objectives. Personal influences. The amount of competitive brand messages.

13. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Reach, Frequency, and Continuity Relationships with a Fixed Budget

14. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Media Mix Frequency Example: Small Business Owners Figure 13-4, p.470

15. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Relationship Between Media Exposure and Reach Figure 13-5, p.471

16. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Media Planning (continued) Reach + Frequency + Continuity (how long the campaign runs— continuous vs. flighting vs. pulsation) 100%

17. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Media Scheduling Three commonly used scheduling strategies are called:  Continuous scheduling  Flighting  Pulsing

18. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Examples of Media Scheduling Strategies Figure 13-8, p.488

19. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Media Planning (continued) Reach + Frequency + Continuity + Impact/Dominance (the attention-getting ability of the media vehicle(s) selected to run the ad) 100%

20. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Comparison of Two Response Curves Figure 13-6, p.474

21. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. #5 – Media Costs To determine the best values among all the many vehicle alternatives, media planners use several tools: Cost per thousand (CPM) Cost per point (CPP) Cost per response (CPR)

22. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Media Weight: Gross Rating Points Media weight is an indication of the relative impact of the media mix. Media weights can be figured in terms of:  Media dollars  GRP = Reach times Frequency

23. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. GRP Example: January 200X Frazier (4 episodes)18x10180 NBA (8 games) 3x40120 Superbowl52x 2104 Total GRP’s 404 Avg. Reach (Rating Points) Avg. Frequency Total Rating Points

24. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Lee Jeans Media Plan Flow-chart Figure 13-9, p.489

25. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Acme Media Plan Flowchart

26. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Cost Per Rating Point Assumptions National Big/Key Markets Daytime TV$3,750 $500 (each mkt) Fringe and Sports TV 6,000 875 (each mkt) Primetime TV 10,0001,375 (each mkt) Cable TV3,750 500 (each mkt) Radio (60-seconds)1,500 375 (each mkt) Notes: TV rates are for 30-second spots. Assume 60-second spots are 167% of a 30-second spot.

27. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Miscellaneous Media Web Sites www.spotrunner.com