1. 7-1 Copyright © 2009 Pearson Education Canada CHAPTER 7 Media Planning Essentials

2. 7-2 Copyright © 2009 Pearson Education Canada Learning Objectives  Assess roles & responsibilities of both client and agency in media planning  Differentiate among media objectives, media strategies and media execution  Utilize terminology used in media planning Continued…

3. 7-3 Copyright © 2009 Pearson Education Canada Learning Objectives (cont.)  Describe the steps involved in the media selection process  Identify the factors affecting the size of an advertising budget  Describe the methods of determining the size of an advertising budget

4. 7-4 Copyright © 2009 Pearson Education Canada Media Planning Process of developing a plan of action for communicating messages  to the right people (target)  at the right time, and  with the right frequency.  Efficiency in media planning can be loosely defined as gaining maximum impact or exposure at minimum cost to the client.

5. 7-5 Copyright © 2009 Pearson Education Canada Media Planning Process  Client provides relevant background information to agency in the form of a media brief. 1.Market Profile 2.Product Media Profile 3.Competitor Media Usage 4.Target Market Profile 5.Media Objectives 6.Media Budget

6. 7-6 Copyright © 2009 Pearson Education Canada Media Planning Process Marketing Plan Media Objectives Media Strategies Creative Plan Advertising Plan Media Evaluation Media Execution

7. 7-7 Copyright © 2009 Pearson Education Canada The Media Plan Document that outlines all relevant details including:  How a client’s budget will be spent  Clearly defined objectives  Rationalized strategies  Precise execution details

8. 7-8 Copyright © 2009 Pearson Education Canada Media Objectives  Clearly worded statements that outline what the media plan should accomplish. 1.Who is the target market? 2.What is the advertising message? 3.Where are the market priorities? 4.When is the best time to advertise? 5.How many, often, long?

9. 7-9 Copyright © 2009 Pearson Education Canada Media Strategies Numerous factors are considered for achieving objectives:  Target Market  Nature of Advertising Message  Reach/Frequency/Continuity  Market Coverage  Best time to reach target  Competitor media strategies  Media alternatives  Budget

10. 7-10 Copyright © 2009 Pearson Education Canada Target Market Media Strategies Profile- matching Profile- matching Rifle Roadblock Shotgun Explain why roadblocking is not useful in rifle or profile-matching strategies.

11. 7-11 Copyright © 2009 Pearson Education Canada Nature of Advertising Message  Factual message  print & website  Emotional message  broadcast, online video & website  Promotional message  TV for awareness  Print, POP & website for details on how to enter  Brand-name awareness  outdoor &transit

12. 7-12 Copyright © 2009 Pearson Education Canada Reach/Frequency/Continuity Reach  How many? Frequency  How often? Continuity  How long?  How flexible is the plan? Can it be altered?

13. 7-13 Copyright © 2009 Pearson Education Canada Reach  The total unduplicated audience [individuals or households] exposed to a message one or more times in a period (week).  Reach Formula = # households tuned in # households in area = 50 000 or 1 250 0005 = 20%

14. 7-14 Copyright © 2009 Pearson Education Canada Frequency  The average number of times an audience is exposed to a message over a period of time (week).  Frequency Formula = Total Exposures Reach = 250 000 50 000 = 5.0

15. 7-15 Copyright © 2009 Pearson Education Canada Impressions Total number of commercial occasions scheduled, multiplied by the total target audience potentially exposed to each occasion.  Impressions = Reach X Frequency = 100 000 X 3 = 300 000  Over an 8-week schedule the gross impressions would be: 2 400 000 (300 000 X 8)

16. 7-16 Copyright © 2009 Pearson Education Canada GRPs refer to the weight of a media schedule against a pre-determined target audience. GRP = Reach (%) x Frequency = 50 x 3.5 = 175 Gross Rating Points (GRPs)

17. 7-17 Copyright © 2009 Pearson Education Canada Continuity, Engagement, & Flexibility Continuity:  The length of time required to generate impact on a target audience. Engagement:  The degree of involvement a person has with the media when they are using it. Flexibility:  The ability to modify media spending plans throughout the scheduled advertising period.

18. 7-18 Copyright © 2009 Pearson Education Canada Advertising Flights

19. 7-19 Copyright © 2009 Pearson Education Canada  National  Regional  Key Market  Selective Identifying the number of markets where advertising will occur. Media Coverage

20. 7-20 Copyright © 2009 Pearson Education Canada Best Time to Reach Target

21. 7-21 Copyright © 2009 Pearson Education Canada Competitor Media Strategies Media planners should analyze competitors’ media usage and expenditure patterns.  Should you follow a similar pattern?  Should you recommend a unique strategic direction?

22. 7-22 Copyright © 2009 Pearson Education Canada Media Alternatives Television Radio Newspaper Magazines Out-of-Home Direct-Response Internet Television Radio Newspaper Magazines Out-of-Home Direct-Response Internet 1.Nature of the product 2.Description of the target market and the media they refer to most often 3.Budget is key influence

23. 7-23 Copyright © 2009 Pearson Education Canada Budget Influence on Media Strategy Media Mix: Primary & Secondary Media Selective Media Usage Small Budget Large Budget Reach Frequency Continuity Market Coverage Timing Competition Media Usage Type (Choice) of Media Limited strategy Flexible strategy

24. 7-24 Copyright © 2009 Pearson Education Canada Media Execution  Fine tuning the strategy and translating it into specific action plans. Media Selection Process

25. 7-25 Copyright © 2009 Pearson Education Canada Cost incurred in delivering a message to one thousand individuals. The formula for calculating CPM is as follows: Unit Cost of Message CPM= Circulation (000) Cost per Thousand (CPM)

26. 7-26 Copyright © 2009 Pearson Education Canada Media Scheduling and Budgeting  Media schedule is normally presented in a calendar format, often referred to as a blocking chart.  Outlined in one or two pages  Media usage  Market coverage  Weight levels  GRPs  Reach  Frequency  Timing

27. 7-27 Copyright © 2009 Pearson Education Canada Media Buying  Once the media plan is approved, the media buyer negotiates the buy with media representatives to obtain the most effective and efficient buy within the guidelines of the plan.  User-friendly software developed by BBM Bureau of Measurement, Nielsen Media Research, etc. lets media buyers makes reasoned and detailed decisions.

28. 7-28 Copyright © 2009 Pearson Education Canada Factors affecting budget size:  Size of Customer Base  Degree of Competition  Stage in the Product Life Cycle  Product Characteristics  Management Philosophy about Advertising The Media Budget

29. 7-29 Copyright © 2009 Pearson Education Canada 1.Percentage of Sales 2.Fixed Sum per Unit Sold 3.Industry Average (Competition Spending) 4.Task (Objective) Method 5.Share of Advertising / Share of Market Budgeting Methods