1. 1 Chapter 5 Advertising: Media Planning

2. 2 Media Planning “A plan of action to communicate a message to a target market a the right time, and right frequency.” The goal of a media plan is to be efficient: to gain maximum exposure at minimum cost.

3. 3 Media Planning Advertising Plan IMC Plan IMC Plan Media Plan Objectives Strategies Execution Media Plan Objectives Strategies Execution Creative Plan Creative Plan

4. 4 Media Brief Media planners require essential information from the client. 1.Market Profile 2.Competitor Media Strategy 3.Target Market Profile 4.Media Objectives 5.Budget

5. 5 Media Plan “A document outlining how a client’s budget will be spent.” Media Objectives Media Strategies Media Execution

6. 6 Media Objectives Whois the target market? Whatis the message? Whereare the priority markets? Whenis the best time to advertise? Howmany, often, long?

7. 7 Media Strategy Numerous factors are evaluated and they are usually ranked based on priority. Target market and media matching strategy Creative strategy influences media choices Coverage decisions are based on the budget Timing decisions are crucial for scheduling Reach, frequency, and continuity priorities Budget

8. 8 Target Market Matching Strategies Knowledge of a target’s media consumption habits helps define the media strategy. Shotgun Profile Match Rifle

9. 9 Market Coverage The budget available often dictates the extent of market coverage. National West Central East Key Markets Category and brand development indexes are used to set market priorities

10. 10 Media Scheduling EvenSkip PulseSeasonal BlitzBuild-Up

11. 11 Reach / Frequency / Continuity Reach Frequency Continuity Total audience exposed to a message one or more times in a period, usually a week. The average number of times a message has been exposed to an audience over a period of time. The length of time required to generate impact on a target.

12. 12 Media Execution Selecting the right media is usually a three stage decision process. 1.Type of MediaMagazineTelevision 2.Class of MediaSportsNetwork 3.Specific MediumSports IllustratedCTV When selecting a specific medium, CPM is a determining factor.

13. 13 Comparing Media Alternatives CPM The cost of the ad divided by the circulation (in thousands). MagazineCost Circulation CPM ROB$18,800363,700 National Post Business $15,010311,300 Canadian Business$14,00080,500 ROB and National Post Business have a circulation advantage since they are distributed by newspapers that own the magazines. Formula: (Cost of the ad/circulation) x 1000

14. 14 Comparing Media Alternatives CPM The cost of the ad divided by the circulation (in thousands). MagazineCostCircCPM ROB$18,800363,700$51.69 National Post Business $15,010311,300$48.22 Canadian Business$14,00080,500$173.91 ROB and National Post Business have a circulation advantage since they are distributed by newspapers that own the magazines. Formula: (Cost of the ad/circulation) x 1000

15. 15 Scheduling and Budget Summary 1.A blocking chart summarizes in a few pages all of the media execution details: media usage, market coverage, weight levels, reach and frequency, and timing of the campaign. 2.The budget summary classifies spending by medium, region, and time of year.

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17. 17 Assessing Media Alternatives MediumProCon Television Radio Magazines Newspapers The strengths and weaknesses of all media options are evaluated.

18. 18 Assessing Media Alternatives MediumProCon TelevisionImpactHigh Cost ReachClutter RadioTargetingFragmentation FrequencyMessage (Sound only) The strengths and weaknesses of all media options are evaluated.

19. 19 Assessing Media Alternatives MediumProCon NewspaperLocal ReachShort Life Key Market CoverageClutter MagazineTargetingClutter Message QualityLow Frequency

20. 20 TV Advertising Alternatives Factors such as the budget available and market coverage priorities influence television decisions. TV is expensive. Network Spots Selective Spots Local Spots Sponsorships Branded Content

21. 21 Radio Advertising In radio all decisions are usually based on demographics. 1.Station format determines the audience profile. 2.Radio is ideal for reaching targets defined by age. 3.Radio is an important medium if a “key market” strategy is recommended.

22. 22 Newspaper Advertising Local market circulation and readership make newspapers an attractive medium. 1.Newspapers are ideal for a “key market” media strategy. 2.Newspapers are attractive to national advertisers, and national and local retailers. 3.Newspapers offer “merchandising” opportunities.

23. 23 Magazine Advertising Magazines are excellent at targeting precisely defined audiences. 1.Magazines are a “class” medium instead of a “mass”medium. 2.The clustering of ads has a negative influence on message impact. 3.Magazines are ideal for “profile matching” media strategies.

24. 24 Out-of-Home Advertising Outdoor is a passive medium but the message is very visible. 1.Outdoor ads reach the same audience frequently. 2.A wide variety of alternatives are available. Outdoor can be virtually anywhere! 3.An ideal medium for “shotgun” media strategies in key markets.

25. 25 Calculating the Cost of Media

26. 26 Newspaper Cost Calculation Newspaper rates are based on a per line rate There are two ways to calculate lines – MAL and Agate Some newspapers use one way, some use another Usually, the line rate goes down as you advertise more = Volume discounts

27. 27 Calculating Newspaper Costs The Globe and Mail Assuming you spend only $25,000 per year Find the cost of: 320 line ad in the National Paper on Saturday for four Saturdays

28. 28 Calculating Newspaper Costs The Globe and Mail Assuming you spend only $25,000 per year Find the cost of: 320 line ad in the National Paper on Saturday for four Saturdays Answer: 320 X $23.39 x4 = $29,939.20

29. 29 Calculating Newspaper Costs The Toronto Star A 3000 line ad in the Saturday edition for 2 Saturdays

30. 30 Calculating Newspaper Costs The Toronto Star A 3000 line ad in the Saturday edition for 2 Saturdays Answer: 3000 x $20.78 x 2 = $124,680

31. 31 Factors Influencing Newspaper Rates Position Charge Position Charge Colour Inserts A request for a specific page or section increases the cost. Colour increases cost but it also increases awareness. Rates are quoted on a CPM basis and are influenced by number of pages.

32. 32 Comparing Newspapers for Efficiency Specs.StarSunGlobe Size1000 lines Line Rate$15.90$6.89$27.43 Total Cost$15,900$6,890$27,430 Circulation454,831230,644354,574 CPM$34.96$29.88$77.35 Formula: (Cost of the ad/circulation) x 1000

33. 33 Buying Magazine Space The cost of the ad is determined by multiplying the page rate (by size) by the frequency. If a 1P, 4C ad costs $20,000 and it runs in 6 consecutive issues of a monthly magazine, the total cost would be: $20,000 x 6 = $120,000.

34. 34 Magazine Cost Calculation Plan Canadian Geographic 1 Page 4 Colour 4 insertions Plan Canadian Geographic 1 Page 4 Colour 4 insertions The base rate would be the 3-5 times rate on the rate card. Cost Calculation: $10,755 x 4 = $43,020

35. 35 Magazine Cost Calculation Find the cost of the following ad in Canadian Living 1 page, 4 times in the National edition What is the cost of the ad? What is the CPM?

36. 36 Magazine Cost Calculation Find the cost of the following ad in Canadian Living 1 page, 4 times in the National edition Answer: $28,575 x 4 = $114,300 What is the CPM ($114,300/555,884) X 1000 = $205.62

37. 37 Magazine Discounts Frequency Continuity Corporate The number of times the ad is run. The length of time during one year period. Total pages bought by all company brands during one year period.

38. 38 Colour and Position Charges Colour advertising is the norm in magazines so rates are usually quoted as 4-colour rates. Higher rates are charged for cover positions and specific page requests. Covers Inside Front (IFC), inside back (IBC), and outside back (OBC). About 20% more. Position Charge Position Charge A specific page request increases the cost per page by 15 – 20%.

39. 39 Comparing Magazines for Efficiency SpecificationsCanadian LivingFlare 1P, 4C Circulation CPM Both magazines have different rates and circulations but the CPM is almost identical.

40. 40 Comparing Magazines for Efficiency SpecificationsCanadian LivingFlare 1P, 4C$29,160$15,600 Circulation555,884172,362 CPM$52.84$90.51 Both magazines have different rates and circulations but the CPM is almost identical.

41. 41 Television Advertising Rates TV rates are not published; they are subject to negotiations between advertising agencies and the networks and stations. Rates are influenced by: Supply and Demand Type of Program Time of Day Length of Commercial Gross Rating Points

42. 42 GRPs and Television GRPs consider the size of the audience (reach) and frequency. AudienceRating# of SpotsGRPs 18 – 4930260 18 – 4025250 18 – 4020240 Total150 If 6 spots were scheduled in one week the weight level would be 150 GRPs.

43. 43 Television Discounts Frequency Volume Continuity For a minimum number of spots in a specified period. For a $ volume commitment in a one-year period. For a minimum number of spots over an extended period (one-year).

44. 44 Buying Radio Time Advertisers can request specific times or opt for a reach plan. Reach Plan Reach Plan Commercials are rotated through the various dayparts and days of the week based on predetermined frequency. Vertical rotation refers to time of day; horizontal rotation refers to day of week.

45. 45 Radio Grid Rates Radio stations establish grid rates which are different rates based on the frequency and volume of advertising an advertiser purchases. As an advertiser purchases more spots or extends the schedule over a longer period, they will move to another grid—a grid with lower rates. The more you buy, the less you pay per spot!

46. 46 Radio Discounts Frequency Volume Continuity For a minimum number of spots in one week. For buying a large number of spots in a specified period. Scheduling ads over an extended period (26, 39, 52 weeks).

47. 47 Buying Radio Time Reach Plan 16 spots per week 16 week Drive to work time Reach Plan 16 spots per week 16 week Drive to work time A reach plan saves an advertiser money! 16 spots / week x 16 weeks x $250 = $64,000.

48. 48 Buying Radio Time Specific Request Plan 680 News – 30 sec spots 8 Breakfast 8 Drive Each Week for 16 weeks Specific Request Plan 680 News – 30 sec spots 8 Breakfast 8 Drive Each Week for 16 weeks The total number of spots in the buy are calculated first. Breakfast: 8 x 16 = 128 Drive: 8 x 16 = 128 Total spots: 256 Breakfast: $150 x 128 = $19,200 Drive: $85 x 128 = $10,880 Total Cost = $69,760