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Transcript
CHAPTER NINE
PLANNING MEDIA STRATEGY:
FINDING LINKS TO THE MARKET
OBJECTIVES
To show how communications media help advertisers achieve marketing and advertising
objectives. To get their messages to the right people in the right place at the right time, media
planners follow the same procedures as marketing and advertising planners: setting objectives,
formulating strategies, and devising tactics. To make sound decisions, media planners today must
possess marketing savvy, analytical skill, and creativity. (p. 266)
After studying this chapter, your students will be able to:
1. Describe how a media plan helps accomplish a company’s marketing and advertising
objectives.
2. Explain the importance of creativity in media planning.
3. Define reach and frequency and debate the controversy surrounding the concept of
effective frequency.
4. Discuss how reach, frequency, and continuity are related.
5. Calculate gross rating points and cost per thousand.
6. Name some of the secondary research sources available to planners and describe how they
are used.
7. Describe different types of advertising schedules and the purpose for each.
TEACHING TIPS AND STRATEGIES
This chapter will aid the student in understanding how and why media buys are placed.
Many of my clients in advertising use to believe that advertising was about the number of
spots you buy (frequency). If they could purchase 500 spots in a week, they thought that
was better then the 30 or 40 spots they would get on Network television.
What many local advertisers failed to realize is it isn’t only about the number of spots
(frequency), but the reach and cost per thousand (CPM) is what is important. This
discussion will focus on the differences between cable and network television buys from
my experience. It is my intention that the reader will get a better understanding of
advertising on cable versus network television.
As the reader knows, network television is not subsidized with monthly fees as cable is.
Therefore, cable can afford to charge cheaper rates then network television. It looks
cheaper on the surface. Cable usually will give an advertiser ten to fifteen channels that
they will have five hundred spots run on. The problem with that many channels is that it
reduces the frequency an ad is seen and not all of the advertisers target market will see
the ad.
Remember, that frequency is the number of times an ad is viewed. My sales manager
used to explain to me, “…a frequency of four is minimum; we are shooting for a seven.”
This means that a commercial needs to be seen at least four times to get a good return on
149
investment (ROI). Seven is a better number, and one that many of our national
advertisers use to shoot for.
The other disadvantage of cable in my opinion is that its reach is not what networks
television is. For example in our viewing area, it was quite normal for cable to have only
a couple thousand of households viewing at any given time. On the other hand, on
network television we would have literally thousands viewing in our DMA (designated
marketing area). Our reach was much greater.
Fragmentation has really hurt network television and the cable systems. I have watched
as what use to be three to four cable systems in a state now go down to one or two. This
will help the cable systems reach problem. For instance, If there are four cable systems
in a state, and the advertiser is only advertising on one of them. Guess what? The other
three systems are not carrying that signal. As more cable companies merge, this will be
less of a problem.
To wrap up this quick discussion it is important to note that it is not about the number of
spots bought on television. It is about the reach/frequency of those commercials. Who
cares if someone sees an ad one time it will not be as effective as seeing the same ad four
to seven times. When I created advertising plans, it was important to note that selling ads
on network television we had a higher reach (we reached more people) then cable. This
gave us an advantage, because we would reach more people then our cable counterparts
and this in turn would give our advertisers an advantage over cable.
Who cares if someone sees an ad 10 times if only a couple hundred of people are
watching, unless that couple of hundred people are a firms bread and butter customers.
LECTURE OUTLINE
Introduction (pp. 267-269) — The story of how The Media Edge devised an ingenious
street-level guerilla marketing campaign with a most unusual media plan for the
introduction of Sony’s Street Style Headphones. Formed in 1994, The Media Edge has
grown phenomenally fast and is now one of the largest media buying firms in the world,
billing over $10 billion annually.
II. Media Planning: Integrating Science with Creativity in Advertising (p. 269). The purpose of
media planning is to conceive, analyze, and select channels of communication that will
direct advertising messages to the right people in the right place at the right time. It involves
many decisions:
1. Where should one advertise?
2. Which media vehicles should be used?
3. When during the year should the advertising be concentrated?
4. How often should we run the advertising?
5. What are the opportunities for integrating our media advertising with other
communication tools?
A. The Challenge (p. 269)
As the complexity of the field increases, media decisions become more critical and
clients more demanding. Much media buying has been unbundled from other agency
I.
150
services. Advertisers want agencies to be more than efficient. They want
accountability, as well as creative and well-negotiated buys.
B. Increasing Media Options (p. 270)
1. Today, there are more media to choose from, and each offers more choices. TV
is now fragmented into network, syndicated, and local television, as well as
network and local cable.
2. National magazines publish for particular regions or demographic groups.
Exhibit 9-1 U.S. Spending by medium (p. 271),
A9-1 (p. 271)
3. Nontraditional media (videotapes, movie advertising, computer on-line services,
electronic kiosks, and even shopping carts) expand the menu of choices.
4. Specialized communications (direct marketing, sales promotion, public relations
activities, and personal selling) are “below-the-line” activities that represent the
fastest growing segments at some of the large agency holding companies, like
WPP and Interpublic.
Ad Lab 9-A “Off-the-Wall Media That Pulls Customers Off The Fence.”
(p. 272)
5. The “media menu” needs to include everything that carries a message to and/or
from customers and other stakeholders. The proliferation of toll-free phone
numbers, faxes, the Internet, and company Web sites, make customers feedback
easier and more immediate.
C. Increasing Fragmentation of the Audience (p. 271) Consumers are selective in
choosing what particular articles to read, which cable or network TV shows to watch,
and what radio programs to listen to.
Exhibit 9-2 Time spent with media
(p. 273)
D. Increasing Costs (p. 272) The cost of exposing 1,000 people (CPM-cost per
thousand) to each of the major media rose faster than inflation. People can cope with
only so many messages, so media have to restrict the number of ads they sell. Shows
with big audiences are at a premium today.
D. Increasing Complexity in Media Buying and Selling (p. 273) Now, media buys are
more complex than ever. Media companies put together massive multimedia
packages, which they sell as "value added programs” designed to add value to
traditional media placements. Media planners face growing pressure to learn how to
evaluate and execute these complex deals. “Partnerships” add to complexity. The
trend toward integrating marketing communications and relationship marketing is
creating a new breed of media planner — younger, computer literate, and schooled in
marketing disciplines beyond traditional media. A good media specialist must be an
“advertising generalist.”
Ethical Issue: “The Ethical Dilemmas of Agency Compensation” (pp. 274, 275)
E. Increasing competition (p. 274) Independent media- buying services have grown
dramatically in the last decade, attracting some of the best and brightest talent in the
business to compete with agencies for what was once their private domain. During
the 90s, the large agency holding companies started buying up the independents.
Now all the large ones are back under agency control, albeit at arms length.
Exhibit 9-3 Media Powerhouses (top media specialist companies ranked by billings
(p. 276)
151
III.
IV.
The Role of Media in the Marketing Framework (p. 275)
A. Marketing Objectives and Strategy (p. 275)
1. Determining marketing objectives for a brand or service and developing
strategies, which map out a plan for attaining those objectives is derived from the
marketing situation analysis (or “SWOT analysis” as discussed in chapter 7).
Marketing objectives may focus on solving a problem or seizing an opportunity.
2. Marketing strategies lay out the steps for meeting these objectives by blending
the four elements of the marketing mix. Advertising is just one of the many
strategic tools a company may use to achieve its marketing objectives.
B. Advertising Objectives and Strategy (p. 274). The objectives and strategies of an
advertising plan unfold from the marketing plan. Nevertheless, advertising
objectives focus on communication goals. (e.g., “convincing 25 percent of the target
market next year of the brand’s need-satisfying abilities). To achieve these
objectives, companies devise advertising strategies that employ the elements of the
creative mix: the product concept, target audience, advertising message, and
communication media. The media department ensures that the ad message gets to the
correct target audience effectively.
Exhibit 9-4 Media planning activities (p. 277)
C. The Media-Planning Framework (p. 278)
1. Media planning is done early because media are how the customers make contact
with the product.
2. Developing a media plan involves the same process as marketing or advertising
planning.
a. Review marketing and ad objectives.
b. Set measurable objectives that can be achieved by the media.
c. Determine a strategy to achieve the objectives.
d. Set down tactical details.
Defining Media Objectives (p. 278)
Media objectives translate the advertising strategy into goals that media can accomplish.
Exhibit 9-5 How media objectives are expressed. (p. 278)
Media objectives have two major components:
A. Audience Objectives (p. 278)
1. Audience objectives define the specific types of people the advertiser wants to
reach.
2. Top-down planners use geodemographic classifications to define their target
audience.
a. The target audience may not be actual users of the product. Advertisers may
have to advertise to the trade (as well to the customers) to convince retailers
their media buys will result in more sales.
b. Planners rely largely on secondary research.
3. Planners select media vehicles, particular magazines, or broadcast programs
according to how well they "deliver" or expose the message to the desired target
audience.
152
Advertisers using the integrated marketing communications (IMC) planning model
start by segmenting their target audiences according to brand-purchasing behavior
and then ranking them by profit to the brand. Communication objectives are then
stated in terms of reinforcing or modifying customer purchasing behavior or creating
a perceptual change about the brand over time. Media research costs often limit the
amount of data marketers would like to see.
Exhibit 9-6 A media planner’s toolbox (p. 280)
B. Message-Distribution Objectives (p. 279)
Distribution objectives define where, when, and how often advertising should
appear. To answer these questions, a media planner must understand the following:
1. Audience size and message weight (p. 279)
a. Audience size — simply the number of people in the medium’s audience. In
print media, for example, Audit Bureau of Circulation actually count and
verify the number of subscribers (circulation) and multiply by the number of
readers per copy (RPC) to determine total audience.
b. Message weight — media planners often define media objective by the
schedule's message weight, the total size of the audience for a set of ads or
an entire campaign. Message weight can be expressed as:
1) Advertising impression: possible exposure of the advertising message
to one audience member, sometimes called an opportunity to see
(OTS).
2) Gross Impressions: the total number of potential exposures (audience
size by the number of times the ad message is used during a period).
Exhibit 9-7 Gross impressions analysis for Brand X in the second
quarter, 2003 (p. 281)
3) As gross impressions are often expressed in millions and are awkward to
handle, media planners prefer to use percentages — or a rating, for
example, a rating of TV households is the percentage of homes exposed
to an ad medium. A rating of 20=20% of the households with TV sets;
television households, or (TVHH).
4) Gross Rating Points (GRPs) — the total weight of a specific media
schedule, computed by multiplying the reach, expressed as a percentage
of the population, by the average frequency. GRP unit costs decrease the
more GRPs are bought.
Exhibit 9-8 Gross rating points analysis for
Alpha brand in the second quarter, 2003 (p. 281)
2. Audience Accumulation and Reach (p. 281) Reach refers to the number of
different people or households exposed at least once to an ad or campaign during
a given period of time, usually four weeks. This number, however, does not take
into account the quality of the exposure. The term “effective reach” describes the
quality of exposure. It measures the number of percentage of the audience who
receive enough exposures for the message to have the desired effect.
Accumulating reach is done two ways: same media over time or combining
media vehicles.
Exhibit 9-9 Statistical table that shows how unduplicated reach builds as
additional media are added. (p. 282)
A9-2 (p. 282)
3. Exposure Frequency (p. 282). Frequency refers to the number of times the same
person or household is exposed to a message — a radio spot, for example — in a
153
specified time span. It measures the intensity of a media schedule, based on
repeated exposures to the message.
a. Frequency is important because repetition is the key to memory.
b. Average frequency = Total Exposure ÷ Audience reach, and Reach x
Frequency = GRPs.
c. Conventional wisdom considers effective frequency to be three or more
opportunities-to-see (OTS) over a four-week period, but no magic number
works for every commercial and every product. The concepts of effective
reach and frequency are controversial, but virtually all agencies use them.
Most studies of the advertising response curve indicate that incremental
response to advertising actually diminishes — rather than builds — with
repeated exposures. The optimal frequency concept moves the focus of
media planning from exposure effectiveness to effective exposures per
dollar.
4. Continuity (p. 283) refers to the duration of an advertising message or campaign
over a given period of time. While frequency is important to “create” memory,
continuity is important to “sustain” it.
V. Optimizing Reach, Frequency, and Continuity: The Art of Media Planning (p. 282)
Exhibit 9-10 shows, the objectives of reach, frequency and continuity have inverse
relationships to each other (p. 283)
A9-3 (p. 283)
Good media planning is both an art and a science. The objectives of reach, frequency,
and continuity have inverse relationships to each other.
A. Effective Reach (p. 283)
1. Some exposed to an ad in a medium will not be aware of the message.
2. Effective reach describes the quality of the exposure, measuring the number or
percent-age of the audience who receive enough exposures to truly receive the
message. Some researchers maintain three OTSs over a four-week period.
B. Effective Frequency (pp. 283, 284)
1. Effective Frequency is the average number of times a person must see or hear a
message before it becomes effective (between a minimum level that achieves
awareness and a maximum level that becomes overexposure that leads to “wear
out” and irritates customers).
2. Controversy over “learning” versus “reminding” and that conventional media
planning is built on “media vehicle exposure” (the number of people in a
medium’s audience) when it should relate to “advertising message exposure.”
Cannon and Riordan would replace “effective frequency” with “optimal
frequency.”
3. Advertising response curve — a curve indicating responses to advertising in
relation to frequency. Studies show that incremental response to advertising
actually diminishes — rather than builds — with repeated exposures.
Exhibit 9-11 advertising response curve (p. 284)
A9-4 (p. 284)
4. Cannon and Riordan’s theory has strong implications. Historically, frequency
has been most important objective (assumes S shaped response curve). Cannon
and Riordan’s analysis indicates response curve is actually convex, the first
exposure is the most effective, followed by diminishing returns. If this is
accurate, advertisers should switch from maximizing frequency to maximizing
154
VI.
target market reach, adding less profitable second exposures only as budget
permits.
5. Recency planning is based on the belief that most advertising works by
influencing the brand choice of consumers who are actually ready to buy. This
would suggest that continuity is the most important objective.
Developing a Media Strategy: The Media Mix (p. 285)
The media strategy describes how the advertiser will achieve the stated media objectives:
which media will be used, where, how often, and when. Advertisers develop media
strategies by blending the elements of the media mix.
A. Elements of the Media Mix: The Five Ms (p. 285). Media planners use the Five Ms
(5Ms) of the media mix (markets, money, media, mechanics, and methodology) to
develop an effective media strategy.
A9-5 Kinko’s advertisement exemplifies 3 of the 5 M’s of the media mix (p. 285)
1. Markets refer to the various targets of a media plan: trade and consumer
audiences; global, national, or regional audiences; or certain ethnic or
socioeconomic groups.
2. Money — using intuition, marketing savvy, and analytical skill, the media
planner determines how much money to budget and where to allocate funds: how
much for print, TV, etc.
3. Media includes all communications vehicles available to a marketer, such as
radio, TV, newspaper, magazines, etc.
4. Mechanics includes the complex mechanics (time and size units, etc.) of
advertising media and messages. IMC planners may also deal with the
mechanics of nontraditional media: everything from shopping bags to multimedia
kiosks to the Internet.
4. Methodology refers to the overall strategy of selecting and scheduling media
vehicles to achieve the desired reach, frequency and continuity objectives.
B. Factors that Influence Media Strategy Decisions (p. 286) Media decisions are greatly
influenced by a variety of factors over which the media planner has little or no
control. These include:
1. Scope of the Media Plan (p. 285). The location and makeup of the target
audience strongly influences the breadth of the media plan, thereby affecting
decisions regarding the following:
a. Domestic markets. A media planner normally limits advertising to areas
where the product is available. Different media are required for local,
regional, and national markets
b. International markets. Foreign media can be a challenge for U.S.
advertisers. Because of the media variations from country to country, most
international and global advertisers entrust national media plans to in-country
foreign media specialists rather than risk faulty centralized media planning.
In Europe, over 60 percent of total advertising expenditures are spent on print
media versus 25 percent on TV. The Internet is exploding in Europe, and
advertisers are just now adapting. Most international advertisers develop a
series of national plans first, combining them for their international plan
later. In some European countries and in Asia, media research and planning
are probably more sophisticated than in the United States.
155
2. Sales Potential of Different Markets (p. 287). The market and money elements
of the media mix also depend on the sales potential of each area. Planners can
determine an area's sales potential in several ways.
a. The brand development index (BDI) indicates the sales potential of a
particular brand in a specific market area. Formula: “BDI” equals “percent
of brand’s total U.S. sales in the area” divided by “percent of total U.S.
population in the area” by 100.
b. The category development index (CDI) indicates the sales potential of an
entire product category. Formula: “CDI” equals “percent of the product
category’s total U.S., sales in the area” divided by “percent of total U.S.
population in the area” by 100.
Exhibit 9-12 The combination of BDI
and CDI can help the planner determine a media strategy for the market (p.
288)
A9-6 (p. 288)
3. Competitive Strategies and Budget Considerations (p. 288). Advertisers always
consider what competitors are doing, particularly those that have larger
advertising budgets. This will affect the media, mechanics, and methodology
elements of the media mix. It sometimes makes sense to use media similar to the
competition's if the target audiences are the same or if competitors are not using
their media effectively. Media planner should analyze the company’s “share of
voice” in the market place.
5. Media Availability and Economics: The Global Marketer's Headache (pp. 288,
289). Every country has communications media, but they are not always
available for commercial use — especially radio, television—, and coverage may
be limited. Lower literacy rates and education levels in some countries restrict
the coverage of print media. Where income levels are low, TV ownership is also
low and motion picture attendance is usually high. These factors tend to segment
markets by media coverage.
See also checklist: International Media
Planning P. 290
Exhibit 9-13 Shows the total local ad agency billings for the top 10
advertising cities outside the U.S. (p. 289)
Spillover media: local media that many consumers in a neighboring country
inadvertently receive, e.g. media from Luxembourg regularly spill over into
France, Belgium, and Holland. Spillover media pose a threat for the
multinational advertiser because they expose readers to multiple ad campaigns.
6. Nature of the Medium and Mood of the Message (p. 289). An important
influence on the media element of the mix is how well a medium works with the
style or mood of the particular message. Each circumstance affects the media
selection as well as the methodology of the media mix.
a. Some media lend themselves better to certain types of messages or creative
approaches.
b. The best media strategy depends on the type of message — dogmatic,
emotional, rational, complex, etc.
7. Message Size, Length, and Position Considerations (p. 291). The particular
characteristics of different media, over which the media planner has no control,
affect the “mechanics” element of the media mix.
A9-7 Godiva chocolate ad exudes a sense of elegance that suits the audience
of the medium selected (p. 291)
156
VI.
Exhibit 9-14 Color and larger units of space or time cost dearly in terms of
reach and frequency (p. 291)
A9-8 (p. 291)
a. Nature of advertising require more time and space to explain.
b. Competitive activity may dictate more message units.
c. Consideration of where to position an ad in various media affects media
strategy.
d. The media planner must weigh the benefits of any additional costs in terms
of potential sales impact against the loss of reach and frequency.
8. Buyer Purchase Patterns (p. 291). Finally, the customer's product purchasing
behavior affects every element of the media mix. Products with short purchase
cycles (convenience goods) require more constant levels of advertising than
products purchased infrequently (furniture).
RL 9-1 (Website)
C. Stating the Media Strategy (p. 292). A written rationale for the media strategy is an
integral part of any media plan.
1. Generally, the strategy statement starts with a brief definition of target audiences
(the market element) and the priorities for weighting them.
2. The statement should explain the nature of the message and indicate which media
types will be used and why (the media element).
3. It outlines specific reach and frequency goals and how they are to be achieved
(methodology element).
4. It provides a budget for each medium (the money element) including the cost of
production and any collateral materials.
5. Finally, it states the intended size of message units, any position or timing
considerations (the mechanics element), and the effect of budget restrictions.
Media Tactics: Selecting and Scheduling Media Vehicles (p. 292) Once the general
media strategy is determined, the media planner can select and schedule particular media
vehicles.
A. Criteria for Selecting Individual Media Vehicles (p. 292). In evaluating specific
media vehicles, the planner considers several factors:
RL 9-2 (Website)
1. Overall Campaign Objectives and Strategy (p. 292)
a. The media planner's first job is to review the nature of the product or service,
the intended objectives and strategies, and the primary and secondary target
markets and audiences.
b. The planner identifies the characteristics most relevant to the acceptance,
purchase, and use of the product. Includes analyzing content and editorial
policy of media vehicle.
c. The planner then matches these data to the characteristics of the audience of
the specific media vehicles under consideration. Advertising is most
effective when it positions a product as part of the solution the consumer
seeks.
Ad Lab 9-B “Media Selection: Quicklist of Advantages.” (p. 292)
2. Characteristics of Media Audiences (p. 293)
a. Audience is the total number of people or households exposed to a medium.
The planner needs to know how closely the medium's audience matches the
157
profile of the target market and how interested such people are in the
publication or program.
b. The content of a medium usually determines the type of people in the
audience. Each type or programming attracts a different audience.
3. Exposure, Attention, and Motivational Value of Media Vehicles (p. 293). The
media planner has to select media that will not only achieve the desired exposure
to the target audience, but also attract attention and motivate people to act.
a. Exposure Value. To understand the concept of exposure value, think of
how many people an ad "sees" rather than the other way around. Five factors
that affect the probability of ad exposure are:
1) The senses used to perceive messages from the medium.
2) How much and what kind of attention the medium requires.
3) Whether the medium is an information source or a diversion.
4) Whether the medium or program aims at general or specialized audience.
5) The placement of an ad in the vehicle (within or between broadcast
programs; adjacent to editorial material or other print ads.)
b. Attention. The degree of attention is another consideration. Exposure value
relates only to the medium; attention value concerns the advertising
message and copy, as well as the medium. Six factors are known to increase
attention value:
1) Audience involvement with editorial content or program material.
2) Specialization of audience interest or identification.
3) Number of competitive advertisers (the fewer the better).
4) Audience familiarity with the advertiser's campaign.
5) Quality of advertising reproduction.
6) Timeliness of advertising exposure.
c. Motivation — these same factors affect a medium's motivation value, but in
different ways. The attention factors of quality reproduction and timeliness
can motivate someone. Media planners assign numerical ratings to their
judgments of a medium’s strength and weaknesses, and then; using a
weighting formula, add them up.
4. Cost Efficiency of Media Vehicles (pp. 294, 295). Finally, media planners
analyze the cost efficiency of each medium. A common term used in media
planning and buying is:
a. Cost per thousand (CPM), which is based on the medium's total audience
(ad cost divided by the number of thousands of people in the audience).
b. However, media planners are more interested in cost efficiency, which
relates to the cost of exposing the message to the target audience rather than
to the total circulation (percentage of total audience held by the target market
times the subscriber base = the cost per thousand to reach the targeted
market).
c. The media planner must evaluate each medium’s advantages and
disadvantages, using all the criteria to determine:
1) How much of each medium’s audience matches the target audience.
2) How each medium satisfies the campaign’s objectives and strategy.
158
3) How well each medium offers attention, exposure, and motivation.
d. The media planner may want to calculate the cost per point (CCP) of
different broadcast programs. This is done the same way as cost per
thousand, except you divide the cost by the rating points instead of the gross
impressions.
B. Economics of Foreign Media (p. 295). The main purpose of media advertising is to
communicate with customers more efficiently than through personal selling.
1. In some undeveloped countries, it is cheaper to do personal selling (e.g., send
people out with baskets of goods).
2. In many foreign markets, outdoor advertising enjoys far greater coverage than in
the U.S.
3. Costs inhibit the growth of broadcast media in some foreign markets, but most
countries now sell advertising time to help foot the bill.
C. The Synergy of Mixed Media (p. 295)
A combination of media is called a mixed media approach. Reasons for using a
mixed media are:
1. To reach people unavailable through only one medium
2. To provide repeat exposure in a less-expensive secondary medium after attaining
optimum reach in the first.
3. To use the intrinsic value of an additional medium to extend creative
effectiveness of the ad campaign.
4. To deliver coupons in print media when the primary vehicle is broadcast.
5. To produce synergy, where the total effect appears to be greater than the sum of
the parts.
D. Methods for Scheduling Media (p. 296). After selecting the appropriate media
vehicles, the media planner decides how many space or time units of each vehicle to
buy and schedules them for release over a period of time when consumers are most
apt to buy.
1. Continuous, Flighting, and Pulsing Schedules (p. 296)
Exhibit 9-15 Three ways to schedule the same number of total gross rating
points: continuous, fighting and pulsing (p. 295)
A9-9 (p. 295)
a. Continuous schedule — advertising runs steadily and varies little over the
campaign period.
b. Flighting — alternates periods of advertising periods of no advertising.
c. Pulsing — mixes continuous and flighting strategies by using a low level of
advertising all year combined with heavy advertising during peak selling
periods.
2. Additional Scheduling Patterns (p. 296)
a. For high-ticket items that require careful consideration, bursting, running the
same commercial every half hour on the same network in prime time, can be
effective.
b. A variation is road blocking, buying airtime on all three networks
simultaneously.
c. For slim ad budgets, blinking is used – flooding the airwaves with spots just
before a known purchase occasion.
159
2. Once the scheduling criteria are determined, the media planner creates a
flowchart of the plan. The flowchart is a graphic presentation of the total
campaign. (Look back to 8-1 in the Reference Library on the CA website).
Exhibit 9-16 Media plan flow chart (p. 297)
F. Computers in Media Selection and Scheduling (p. 297). Computers perform the
tedious number crunching needed to compute GRPs, CPMs, reach, frequency, and
the like. They also save time and money. Advertising executives may now gather
information from their media directories electronically (like Standard Rate & Data
Service’s program called Media-Scope) and then create timely budgets for their
clients. Telmar, established in 1968, is the world’s largest supplier of Windows and
Internet-based media planning software and support services. More than 95 percent
of the world’s top agencies use Telmar systems for media decision-making.
Similarly, Interactive Market Systems (IMS) has PC software and on-line data for the
business-to-business computer marketplace.
Example: Media Solutions advertisement software available for media planning (p.
298)
AD LAB 9-A “Off-the-Wall Media That Pull Customers off the Fence.” (p. 272)
1. How effective are off-the-wall media?
Some can be very effective. It depends on many factors, including relation of the medium to
the target audience and of the particular product, the cost of the medium, and the message.
Advertising in sports programs and at sports stadiums, for example, can be perfect for
companies whose target audience is spots fans.
2. What other off-the-wall media can you think of?
Among the answers students might mention are: clothing, shopping carts, sports programs,
bumper stickers, school yearbooks, matchbooks, bus stop seats, etc.
AD LAB 9-B “Media Selection: Quick list of Advantages.” (p. 292)
1. If you wanted a set of complementary media to cover all the creative advantages, which mix
would you select?
Answer guidelines:
After examining the advantages information in Ad Lab 9-B, students will probably choose
the mediums listed on the left column in the chart below. In the Reference Library chart, RL
9-1 (located on the Contemporary Advertising website), under “creative considerations,”
three of the media are similar (TV, direct mail, and magazines). The RL 9-1 chart breaks the
categories out in greater detail, clearly portraying television as the dominant leader. The
chart below suggests the two patterns students will most likely choose:
Ad Lab 9-B items
RL 9-1 items
(no ranking given)
(ranked from strong to medium)
1. Television
1. Spot TV, Network TV, Cable TV
2. Magazines
2. Direct Mail
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3. Direct mail
3. Consumer magazines, business & farm publications
4. Outdoor
4. Sunday Supplements and Daily an Weekly newspapers
Example: General Motors devotes about one-third of its ad budget to network, spot, and
cable TV advertising. Television certainly allows the viewer to see GM's cars in action. GM
also puts about a quarter of its budget into magazines, which give high-quality reproduction
and provide room for a more extensive message. Another quarter of the budget goes to
newspaper ads, which reach the great majority of the population, promote seasonal sales, and
support local dealerships.
2. What creative advantages can you add to the list?
Example: Newspaper advantages — the ability to relate advertising to the news of the day;
currency; believability; reader involvement.
ETHICAL ISSUE “The Ethical Dilemma Created by Agency Compensation
(p.274-275)
1. Compare the advantages and disadvantages of the commission system versus those of the fee
or incentive system.
Media commissions are typically 15% on any space or time purchased on behalf of the client.
The advantage to the commission system is that the client doesn't incur any additional cost
because, in effect, the client is paying exactly what it would cost them if they booked directly
from the media company, (i.e., the client pays 100% of the cost and the media company gets
85% with the 15% retained by the agency). Clients sometimes argue that, with the
commission system, the amount of time and labor to make and place ads is significantly
lower in cost than the dollar amount received from commissions. However, the cost of
supporting good account managers, creative production people, and vendors often consumes
much of the income from commissions.
The straight fee (retainer) system is cost plus a fixed fee for agency time and expertise
The incentive system is a fee adjusted by campaign results. Because it is tied into results, the
incentive system may ensure that an agency will create a campaign, which will be a "winwin" for all.
2. What problems, if any, does the commission system cause for small businesses that are less
likely to advertise in high-cost media?
An advertiser with a small media budget may not be considered worthy of representation by a
major agency because the media commissions would not be large enough for the agency to
make a substantial profit.
REVIEW QUESTIONS
1. What major factors contribute to the increased complexity of media planning? (pp. 269-270)
Major factors contributing to the increased complexity of media planning include more media
to choose from; each medium offering a greater number of choices; a burgeoning number of
nontraditional media; increased fragmentation of the audience; increasing costs of most
media; and changes in the way media are bought and sold.
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2. What must media planners consider before they begin? (pp. 269-275)
The media planner must consider the marketing objectives and strategy, the advertising
objectives, and the target audience.
3. What secondary research sources are available to planners? (Exhibit 9-4 pp. 277)
Media planners use a variety of secondary sources that provide information to help them
make better decisions on the job. Syndicated research companies such as Simmons Market
Research Bureau (SMRB) and Mediamark Research, Inc. (MRI) produce reports that can be
used to determine a brand or product's target audience—those who are most likely to buy.
The reports provide demographic profiles of heavy and light users of various products and
brands. They also specify which kinds of TV programs or magazines these heavy and light
users are exposed to, enabling the planner to choose those media vehicles with the most
potential for reaching the target audience. SMRB also gathers psychographic information on
these consumers; these data are used to differentiate among people who may be in the same
demographic group but who possess different psychological characteristics and personality
traits. Broadcast Advertisers Reports (BAR), Leading National Advertisers (LNA), and
Media Records report advertisers' expenditures by brand, media type, market, and time
period. Media planners use these sources to find clues to the strategy of the brand's
competitors; for example, the size of their budgets, the media they are using, the impact of
region and season on their sales, and possible new product tests and introductions.
4. How does the IMC approach differ from the top-down media planning approach?
Advertisers using the IMC planning model start by segmenting their target audiences
according to brand-purchasing behavior (e.g., loyal users, brand switchers, new prospects),
and then ranking them by profit to the brand. Communications objectives are then stated in
terms of reinforcing or modifying customer purchasing behavior or creating a perceptual
change about the brand over time.
5. What is the "right" reach and frequency for a given message? (pp. 283)
The term reach refers to the total number of different people or households exposed at least
once to an ad or campaign during a given period of time, usually four weeks. Frequency
refers to the number of times the same person or household is exposed to a message — a
radio spot, for example — in a specified time span. Repetition is the key to memory.
Conventional wisdom considers effective frequency to be three or more opportunities-to-see
(OTS) over a four-week period, but no magic number works for every commercial and every
product.
6. How are GRPs and CPMs calculated? (pp. 294, 281)
A GRP (gross rating point) is the total audience delivery of a media schedule. GRPs are
computed by multiplying reach (expressed as a percentage of the population) by the average
frequency. CPM (cost per thousand) is a measure of the cost efficiency of using a particular
medium. It is calculated by dividing the cost of the ad by the size of the audience (number of
readers, viewers, or listeners).
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7. What are the 5Ms of the media mix, and how are they determined? (pp. 285-286)
The 5Ms of the media mix are:
a. Markets: refers to the various possible targets of a media plan, e.g. trade and
consumer audiences; global, national, or regional audiences; or certain ethnic or
socioeconomic groups.
b. Money: how much to budget and where to allocate funds — how much for print,
media, how much in TV, how much to each geographic area.
c. Media: all communications vehicles available to a marketer, including broad media
classes and subclasses such as radio, TV, newspaper, magazines, outdoor, direct mail,
as well as various supplemental media and ancillary activities such as sales
promotion, direct marketing, public relations and publicity, special events, and
collateral materials.
d. Mechanics: electronic commercials come in a variety of time units; and print ads are
created in a variety of sizes and styles. IMC planners may also deal with the
mechanics of nontraditional media: everything from shopping bags to multimedia
kiosks to the Internet.
e. Methodology: overall strategy of selecting and scheduling media vehicles to achieve
the desired reach, frequency, and continuity objectives.
8. What major factors influence the choice of individual media vehicles? (p. 279)
Overall campaign objectives and strategy; characteristics of media audiences; exposure,
attention, and motivational value; and cost efficiency.
9. Why might an advertiser use a mixed media approach? (p. 295)
There are numerous reasons for using mixed media:
1. To reach people who are unavailable through only one medium.
2. To provide repeat exposure in a less expensive secondary medium after attaining
optimum reach in the first.
3. To use the intrinsic value of an additional medium to extend the creative
effectiveness of the ad campaign (such as music on radio along with long copy in
print).
4. To deliver coupons in print media when the primary vehicle is broadcast.
5. To produce synergy, where the total effect is greater than the sum of its parts.
10. What are the principal methods used to schedule media? (pp. 296-298)
Advertising is scheduled so that consumers are exposed to it at the point when they are ready
to buy. Scheduling approaches differ because consumer-purchasing patterns differ. Products
that are purchased on a regular basis with little fluctuation in demand are usually advertised
with continuity, where the advertising runs continuously with little variation. Flighting, an
intermittent scheduling pattern that alternates periods of advertising with no advertising at all,
is used for products and services that experience large fluctuations in demand throughout the
year. Advertisers of products and services that are purchased throughout the year but are
bought more heavily in certain seasons may use pulsing, which mixes continuity and flighting
strategies. The advertiser maintains a low level of advertising all year but uses periodic
pulses of heavier advertising during peak selling periods.
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EXPLORING THE INTERNET
The Internet exercises for Chapter 9 address the following areas covered in the chapter: media
buying services (Exercise 1) and media organizations (Exercise 2).
1. Media Buying Services
There are three sides to the media business: those who plan; those who buy; and those who
sell. Media planning and media buying are often in-house functions at an advertising agency,
while sellers are those who represent the various media to clients, agencies, and media buying
services. Visit the websites for the media companies listed below, consider the impact and
importance of each to advertisers and their agencies, and answer the questions that follow.
 The Media Edge (www.mediaedge.com)
 Media Solutions (www.mediasol.com)
 The Davis Group (www.thedavisgrouptx.com)
 Time Buying Services (www.tbsmm.com)
 WebConnect (www.webconnect.net)
 Initiative Media (www.wimc.com)
 Zenith Media Services (www.zenithmedia.com)
a. Who is the intended audience(s) of the site?
b. What is the site’s purpose? Does it succeed? How?
c. What is the company’s purpose?
d. Does the company specialize in any particular segment (consumer, business-to-business,
agriculture, automotive)?
Sample Answer:
Zenith Media
a. The intended audience of the site is two-fold: 1) advertising, marketing, and media
professionals looking for an index to the Web’s wealth of advertising/marketing/media
information; and 2) those agency, client, and media professionals interested in the
services of Zenith Media.
b. The site’s purpose, as the target audience profile suggests, is also two-fold: 1) provide an
index to the Web’s marketing communication information (including direct links to over
4,000 resources); and 2) provide information on the company’s mission/purpose, range of
services, and management/financial information. It succeeds by providing one of the
most comprehensive indexes to the Web and by detailing Zenith’s range of services,
clients, and corporate information.
c. Zenith Media is positioned as the “world’s pre-eminent” media services agency,
providing media planning, buying, evaluation, and coordination for agencies and clients
around the globe.
d. As a global agency for both Saatchi & Saatchi and Bates Worldwide, Zenith handles
media in a variety of categories in both consumer and trade communications.
2. Media Organizations
The world of media is vast and constantly changing. Many media giants own properties in
several media categories, and are major forces in the world of advertising. Visit the websites
for the following media companies and answer the questions below.
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








a.
b.
c.
d.
Advo Inc. (www.advo.com)
Cox Enterprises (www.cox.com)
Gannett (www.gannett.com)
McGraw-Hill (www.mcgraw-hill.com)
NyNex (www.nynex.com)
AOL/Time-Warner (http://www.timewarner.com/)
Tribune Communications (www.tribune.com)
Turner Entertainment Group (www.turner.com)
Viacom (www.viacom.com)
Who is the intended audience of the site?
What is the size/scope of the organization?
What is the organization’s purpose? The site’s purpose?
How important is this organization to the advertising industry? Why?
Sample Answer:
Turner Broadcasting
a. The intended audience of the site consists of both consumers who watch the company’s
programming as well as major advertisers and investors.
b. The organization is worldwide.
c. Turner is in business to provide television programming via one of its six major cable
networks to consumers around the globe. The site’s purpose is to provide information
and programming guides about each of the networks and Turner Broadcasting.
d. This is a very important organization to advertisers because if its large volume and
control in cable networks.
IMPORTANT TERMS
advertising impression, 280
advertising response curve, 284
attention value, 294
audience, 293
audience objectives, 278
blinking, 296
brand development index (BDI), 287
bursting, 296
category development index (CDI), 287
circulation, 280
continuity, 283
continuous schedule, 296
cost efficiency, 295
cost per point (CPP), 295
cost per thousand (CPM), 294
gross impressions, 280
gross rating points (GRPs), 281
markets, 285
mechanics, 286
media, 285
media planning, 269
media vehicles, 279
message weight, 280
methodology, 286
mixed media approach, 295
money, 285
motivation value, 294
opportunity to see (OTS), 280
pulsing, 296
rating, 281
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creative mix, 278
distribution objectives, 279
effective frequency, 283
effective reach, 283
exposure value, 293
five Ms, 285
flighting, 296
frequency, 282
reach, 281
readers per copy (RPC), 280
recency planning, 284
roadblocking, 296
spillover media, 289
synergy, 296
television households (TVHH), 281
ANCILLARY
ACTIVITIES & EXERCISES
As a method for getting students to take a closer look at media scheduling, have them study the
media flowchart for American General Telecom in Chapter 9 on page 297.
Have them review the chart and identify the various types of media scheduling, such as flighting,
pulsing, etc. (described in Exhibit 9-16, p. 297).
DEBATABLE ISSUE
Is Impact More Important than Consistency?
Few advertisers have as much money to spend on advertising, as they would like. Budget
limitations are especially difficult for many local advertisers. The dilemma they often face is
whether to advertise less frequently with large-space advertisements so as to generate impact, or
whether to advertise more frequently with small-space advertisements so as to achieve
consistency.
PRO
Impact is more important than consistency because...
The small or local advertiser can vie more effectively with competitors by using large-space ads
that attract attention and give the advertiser an aura of size and prominence.
A large ad has greater reach because more people see it. Since many more items can be shown in
a large ad, it is a more economical use of space. Small-space ads often get buried, so consistency
is not necessarily achieved.
Large-space ads can accommodate more advertising copy. They communicate more about the
product or service, and in greater depth, than do small-space advertisements.
Image is very important to most advertisers. You cannot create or convey much of an image in a
small-space ad. Most such ads are about as effective as directory listings. In contrast, largespace ads can transmit image, power, and dynamics that impress the reader and make the ad
memorable.
CON
Impact is not more important than consistency because...
The only way to achieve long-term recognition and brand acceptance in the marketplace is
through continuous media exposure. This can be attained only by advertising consistently.
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Small-space ads afford the opportunity to advertise a larger number of items over a longer period
of time. It is better not to spend your budget on just a few large ads and then have no follow-up
ads to sustain their impact.
Some of the most beautiful and creative ads are relatively small in size. Copy need not be
lengthy to say a great deal or to be effective. Billboard copy is a good example of this.
Consistency is important since not all readers are as apt to buy on one day as on another. If you
do not advertise consistently, you may miss delivering your message when readers are most
inclined to buy. Retail stores display their business signs not just occasionally, but all the time.
The same must be true for advertisers.
Questions
1. For what types of products do you feel consistency is especially important?
2. For what types of products do you feel impact is especially important?
3. What other points, pro and con, can you add to the above arguments?
4. Which side of this issue do you agree with most? Explain.
IMAGES FROM THE TEXT
Images are available as color acetates through your local McGraw-Hill/Irwin sales
representative.
A9-1
A9-2
A9-3
A9-4
A9-5
A9-6
A9-7
A9-8
A9-9
Exhibit 9-1
Exhibit 9-9
Exhibit 9-10
Exhibit 9-11
Exhibit 9-12
Exhibit 9-14
Exhibit 9-15
U.S. ad spending by medium (p. 271)
Random combination table (p. 282)
Reach, frequency, and continuity graph (p.283)
Two advertising response curves (p.284)
Kinko’s ad (p.285)
Media buyers compare brand development (p. 288)
Godiva ad (p.291)
Effect of size and color on ad readership (p. 291)
Three ways to schedule the same number of total GRP’s (p. 296)
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REFERENCE LIBRARY
Located on the McGraw-Hill
Contemporary Advertising website:
www.mhhe.com/arens04
RL 9-1
RL 9-2
Guidelines for determining reach, frequency, continuity and pulsing
combinations.
Comparative evaluation of advertising media.
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