Download Media Planning and Analysis

Chapter Thirteen
Planning for and
Analyzing Advertising
Media
Chapter Thirteen Objectives
• Describe the major factors used in
segmenting target audiences for media
planning purposes.
• Explain the meaning of reach, frequency,
gross rating points, target rating points,
effective reach, and other media concepts.
• Discuss the logic of the three-exposure
hypothesis and its role in media and
vehicle selection.
Chapter Thirteen Objectives
•
•
•
Describe the use of the efficiency-index
procedure for media selection.
Distinguish the differences among three
forms of advertising allocation: continuous,
pulsed, and flighted schedules.
Explain the principle of recency, or shelfspace model, and implications for allocating
advertising expenditures over time.
Chapter Thirteen Objectives
• Perform cost-per-thousand calculations.
• Interpret the output from computerized
media models.
• Review actual media plans.
Media Versus Vehicles
• Media are the general communication methods
that carry advertising messages—television,
magazines, newspapers, and so on.
• Vehicles are the specific broadcast programs or
print choices in which advertisements are placed.
• For example, television is the media, and
American Idol is the vehicle.
• Each medium and vehicle has a unique set of
characteristics and virtues.
Messages and Media: A Hand-InGlove Reaction
• Advertisers are placing more emphasis
than ever on media planning.
• The choice of media and vehicles can be
the most complicated of marcom
decisions.
Selecting and Buying Media and
Vehicles
• GM started a trend of consolidating its
media planning and buying into one
organization and others have followed the
example.
• Creating effective messages is critical but it
is just as essential that the messages are
placed in the right media and vehicles.
The Media-Planning Process
Media planning
The design of a strategy that shows how
investments in advertising time and space
will contribute to the achievement of
marketing objectives.
Model of the Media Planning Process
Advertising Strategy
Marketing
Strategy
Advertising
Objectives
Advertising
Budget
Message
Strategy
Media
Strategy
Media Strategy
• Target Audience
Selection
• Objective Specification
• Media and Vehicle
• Media Buying
The Media-Planning Process
1. Selecting the
target audience
2. Specifying media
objectives
3. Selecting media
categories and
vehicles
4. Buying media
Selecting the Target Audience
Four major factors
(1) Buyographics
(2) Geographic
(3) Demographic
(4) Lifestyle/psychographics
Specifying Media Objectives
1. What proportion of the population should be
reached with advertising message during
specified period (reach)
2. How frequently should audience be exposed to
message during this period (frequency)
3. How much total advertising is needed to
accomplish reach and frequency objectives
(weight)
Specifying Media Objectives
4. How should the advertising budget be allocated
over time (continuity)
5. How close to the time of purchase should the
target audience be exposed to the advertising
message (recency)
6. What is the most economically justifiable way to
accomplish objectives (cost)
Reach
Percentage of target audience that is
exposed to an advertisement, at least
once, during a certain time frame
(usually four weeks)
Reach
• Reach represents the percentage of target
customers who have an opportunity to see the
advertiser’s message.
• Other terms used by media planners to describe
reach:
•
•
•
•
1+ (read “one-plus”)
net coverage
unduplicated audience
cumulative audience ( or “cume”)
Determinants of Reach
• More people are reached when a
media schedule uses multiple media
• The number and diversity of media
vehicles used
• By diversifying the day parts
Frequency
Average number of times, on
average, during the mediaplanning period that members of
the target audience are exposed
to the media vehicles that carry a
brand’s advertising message.
Hypothetical Frequency Distribution for the
Esuvee Advertised in Sports Illustrated
The Concept of Frequency
Distribution
In the hypothetical situation, 90% of
the Esuvee’s target audience is
reached by the advertising schedule
and they are exposed an average of
2.2 times during the four-week
advertising schedule in Sports
Illustrated.
Weight
How much advertising volume is required to
accomplish advertising objectives
Three weight metrics:
• Gross ratings
• Target ratings
• Effective ratings
What Are Ratings?
Ratings, in an advertising sense, simply
mean the percentage of an audience
that has an opportunity to see an
advertisement placed in a particular
vehicle.
Weight: Gross Rating Points
Gross rating points, or GRPs, are
an indicator of the amount of gross
weight that a particular advertising
schedule is capable of delivering
GRPs=Reach(R) X Frequency(F)
Determining GRPs in Practice
• GRPs are the sum of all vehicle ratings in
a media schedule
• Rating: proportion of the target audience
presumed to be exposed to a single
occurrence of an advertising vehicle in
which the advertiser’s brand is advertised
Determining GRPs in Practice
The Gross Ratings generated by a particular media schedule
simply equal the sum of the individual ratings obtained across all
vehicles included in that schedule.
Weight: Target Rating Points
(TRPs)
Adjust a vehicle’s rating to reflect
just those individuals who match
the advertiser’s target audience
The Concept of Effective Reach
• How often does the target audience have
an opportunity to be exposed?
• Effective reach is based on the idea that
an advertising schedule is effective only if
it does not reach members of target
audience too few or too many times
How Many Exposures are Needed?
Three-Exposure Hypothesis
The minimum number of exposures
needed for advertising to be effective
is three.
Effective Reach in Advertising Practice
• 3-10 exposures during a mediaplanning period (typically 4 weeks)
• Using multiple media
• Subjective factors must be considered
Alternative Media Plans Based on
a $12 million Annual Budget and
Four-week Media Analysis
An Alternative: Frequency Value
Planning
• The objective is to select the media
schedule that generates the most
exposure value per GRP.
An Alternative: Frequency Value
Planning
1. Estimate the
exposure
utility for
each level of
vehicle
exposure
that a
schedule
produces.
Frequency Value Planning (cont.)
2. Estimate the frequency distribution of the
various media schedules that are under
consideration.
3. Estimate the OTS value at each OTS level.
4. Determine the total value across all OTS
levels.
5. Develop an index of exposure efficiency.
Divide each schedule’s total value by the
number of GRPs produced by that schedule.
Frequency Distributions and
Valuations of Two Media Schedules
Continuity
How advertising is allocated during
the course of an advertising
campaign: how should the media
budget be distributed?
Continuity
• Continuous advertising schedule: an
equal number of ad dollars are invested
throughout the campaign
• Pulsing: some advertising is used during
every period of the campaign, but the
amount of advertising varies from period to
period.
• Flighting: the advertiser varies
expenditures throughout the campaign
and allocates zero expenditures in some
months.
Recency Planning (a.k.a. The
Shelf-Space Model)
(1)Consumers’ first exposure to an
advertisement is the most powerful
(2)Advertising’s primary role is to influence
brand choice
(2) Achieving a high level of weekly reach for
a brand should be emphasized over
acquiring heavy frequency
Optimizing Weekly Reach
• Advertising teaches consumers
• Influence brand selection
• Messages are most effective when close to
purchase time
• Cost-effectiveness of first exposure is greater
than subsequent
• Allocate budget to reach consumers often
• Reach target audience continuously rather
than sporadically
Toward Reconciliation: It Depends!
• It can be said that advertising achieves its
objectives through chance encounters with
ready consumers.
• What works best depends on the particular
circumstances of the brand.
Cost Considerations
The cost of reaching 1,000 members of
the target audience, excluding those
people who fall outside the target market
Cost considerations
Cost per Thousand (CPM)
Target Market (TM)
CPM=
Cost of ad
# of contacts (expressed in thousands)
CPM-TM=
Cost of ad
# of TM contacts
(expressed in thousands)
Use With Caution!
• Measures of cost efficiency, not of
effectiveness
• Lack of comparability across media
• Misused unless vehicles within a particular
medium are compared on the same basis
Tradeoffs
• Tradeoff must be made because media
planners operate under the constraint of a
fixed advertising budget
Media Planning Software
1. User develops a media database
2. User selects criterion for schedule
optimization
3. User specifies constraints
4. User seeks out the optimum media
schedule
Media
Database
For the
Esuvee
June, 2006
ADplus Magazine Schedule for the
Esuvee
Diet Dr. Pepper Campaign
Campaign Target and Objectives
• To increase Diet Dr. Pepper sales by 4% and
improve its growth rate to at least 1.5 times that of
the diet soft-drink category.
• To heighten consumers’evaluations of the key
product benefit and image factors that influence
brand choice in this category.
• To enhance those key brand-personality
dimensions that differentiate Diet Dr. Pepper from
other diet drinks.
Diet Dr. Pepper Campaign
Creative Strategy
Position the brand as tasting more like
regular Dr. Pepper.
Media
Strategy
Media plan for
Diet Dr. Pepper
Media Plan
for Diet Dr.
Pepper
Media plan for
Diet Dr. Pepper
(page 2)
Saab 9-5
• In the late 1990s, Saab introduced a new luxury
sedan: the Saab 9-5
• Saab had done little to expand its brand image
in U.S.
• Historically it attracted younger customers, but
needed the luxury sedan to appeal to families
and older customers
Saab 9-5
A mass-market advertising campaign was
undertaken with the following objectives:
1. Generate excitement for new 9-5 model line
2. Increase overall awareness for Saab name
3. Encourage customers to visit dealers and testdrive
4. Retail 11,000 units of 9-5 during introductory
year
Saab 9-5 Media Plan- Part One
Saab 9-5 Media Plan- Part 2
Olympus Camera Media Plan
• The Stylus
• The m:robe—an
Verve: all of the
MP3 player and
features of the
a camera all in
Stylus Digitus
one.
line, but uniquely
designed and
available in six
colors.
Olympus Camera Strategy
• High-impact and event-driven
• Draw on their sponsorship of the U.S.
Tennis Open and Olympus Fashion Week
Media Plan