August 2010

Media Orientation

Scope

Media Planning Process

Media Terminologies

Media Planning Process

The Media Work Flow

Strategic Planning

Implementation Planning

Negotiations / Buying

Plan Implementation

Elements of Media Planning

Competitive Analysis

Target Audience Definition

Market Prioritization

Media Weight Setting

Media Mix Scheduling

EVALUATINGCOMPETITION

EVALUATINGCOMPETITION

Competitive Intelligence

Reported expenditures Competitors’ spending patterns, scheduling

strategies/tactics, geographic skews etc.

Creative executions Positioning, Complexity of message, Target

Audience,

Communication Objectives

Market intelligence Likely happenings, degree of success of past

competitive

strategies etc.

WHO?THE TARGETAUDIENCE

WHO?THE TARGETAUDIENCE

Target Audience

Issues How do we effectively define TA in media terms ? Is the TA same in all markets ? Is the TA same for theme and scheme ?

Identifying the Target Audience

Demographic variables Sex, Income, Age, SEC, Occupation, Marital Status etc.

Socio-psychographic variables Lifestyles, Attitudes etc. Product usage variables Heavy/Medium/Light or Non-users What is our source of business? Category/Competitors, Sole/Primary/Secondary/Non-users Need to address multiple segments End consumers, Decision Makers, Influencers, Buyers

Defining the Target Audience

Primary

Secondary

Infl

uenc

ers

Infl

uenc

ers

Example: Defining the TA for a Color Television brand…

Target Audience Redefined

Parameter Old TA New TA Remarks

SEC AB ABC55% increase in buying audience

Gender All Male90% of purchase decision made by

the male

Age 25+ 25+The age definition to

be retained

Old TA: As per Client Brief

The old SEC definition leaves out 27% of CTV buying population

% of All Buyers of CTV0

10

20

30

40

50

60

70

80

90

100

49

76

AB ABC

Decision Maker is Male

Parameters All Top 8M Oth 10L+ 5-10 L 1-5 L <1 Lakh

CTV owners 57042 21115 7379 5358 11193 11997

Decision makerMale 89 87 90 89 91 91Female 11 13 10 11 9 9

Clearly the purchase decision is male skewed. As one goes down Town-class the decision making gets further skewed

Decision Maker 25+ years

Parameters All Top 8M Oth 10L+ 5-10 L 1-5 L <1 Lakh

CTV owners 57042 21115 7379 5358 11193 1199715-19 0.3 0.3 0.3 0.4 0.3 0.420-24 2.2 2.3 2.4 1.9 2.4 1.825-34 17.6 18.8 17.8 15.3 16.6 17.335-44 28.2 28.8 28.1 27.8 27.8 27.745+ 51.7 49.8 51.3 54.6 52.9 52.9

Thus… The new TA definition – M, SEC ABC, 25+ years

WHERE?Prioritization of Markets

WHERE?Prioritization of Markets

Market Prioritization

Issues How important is each market for the brand ? How responsive is each market to media ? What are the non-media factors that influence sale

in each market ?

What do we need to do for Market Prioritization?

Look at the Distribution Look at Brand Volumes Brand/Category Development Competitive Advertising Past history of market’s performance Sales force input Local market quirks Media cost National delivery in local markets

Market Opportunity Index (MOI)

Brand Development Index (BDI)

Ratio of brand consumption intensity to population intensity

i.e . % local market brand sales

% local market population Category Development Index (CDI)

Ratio of category consumption intensity to population intensity

i.e. % local market category sales

% local market population

Market Opportunity Index (MOI)

Ratio of CDI to BDI

Using BDI, CDI & MOIStrategy

Key Priority Areas High BDI and high CDIStrong markets; invest in and build on them, minimising risk and maximising potential High BDI and low CDIMaintain current ad spend levels and react in line with competition High Potential Areas MOI > 1Opportunity areas, where category is strong, but brand is weak. Invest after looking at distribution, growth, media strengths

Media Objectives

Media Weight Setting

Media Objectives

Media Weight Setting

Media-Weight

Issues How much is enough ? How much in first week, and how much in later weeks ? How much on each advertisement if two of them run

parallel ?

Setting Media Weights

Set Effective Reach

Set Effective FreqDetermine the number ofexposures the consumer needs toget in a purchase cycle

Determine the point where costof incremental reach is exorbitant

• These are the building blocks of Media Weights• These vary by market and by brand• These could vary by Theme V/s Promo

MEDIA MIXMEDIA MIX

3 Guiding factors

1. Reach of Media2. Cost Efficiency of Media3. Role of Media

1. TV Reaches more

AP TN WB0

102030405060708090

100

Press

TV

%

2. TV Costs Less to Reach More

Market CPRP CPRPPrint TV

200cc BW 30"National 103468 43123

3. Role of Media

Factors TV Dailies Magazines

Image High Low HighImpact High High HighMemorability High Low MediumInformation Low High High

Focused Targeting Medium High HighImmediacy Medium High Low

Implementation PlanningImplementation Planning

The Implementation Planning Brief

ImplementationPlanning

Channel Evaluation

Programme/ Publication Evaluation

Plan Implementation

Check for Deliveries

Post Buy Analysis

The Implementation Planning Process

SchedulingScheduling

Timing Objectives

Determine best time to advertiseWeeks of yearDays of weekTimes of day

Establish a scheduling pattern thatAchieves communication goalsMinimizes non-advertising periods Recognizes competitive activity

Scheduling Patterns

Continuity

Flighting

Media weight scheduled for many weeks throughout year

Intermittent, with gaps in advertising

Pulsing Continuous advtg with heavier weight in some months - flighting and continuity combined

Scheduling Patterns

Continuity

Pulsing

Flighting

Covers entire purchase cycleConstant reminder Improves media discounts

Similar to ContinuityAllows for timing deviations

Used due to budget limitationsSharp seasonal fluctuationsCompetitive advantage

Affordability

Affordability

Consumers are always buying the product

Consumers forget during non-advtg periods

Pattern Pros Cons

Media Terminologies

Terms explained Target Audience & Universe TV

o Ratingso GRPso Coverage (Reach)o Average Frequencyo Cost per GRPo CPT o Frequency Distributiono Effective Reach

Quick Quiz Print Media

Introductory Terms

TARGET AUDIENCE Definition : The demographic group that has been identified

as

the key consumer group for the brand. All

marketing/advertising activities are concentrated on

reaching/appealing to this group. For Example: Brand A’s target audience is 16-60 year old

Women.

(Market X) Brand B’s target audience is Women aged 18-40 yrs.

UNIVERSE Definition : The actual number of individuals within the

defined target audience. For Example: The 16-60 yr Women universe is 5,000,000.

(Market X) The 18-40 yrs universe is 2,750,000.

Television

How a TV Rating is measured .......

Using People-o-meters:-Meter

Research Company

* Research company determines representative sample

* “Meters” installed

* Individual householder details recorded

* Householder “pushes button” when watching - Recorded as a viewer

* Data on-line to research company Handset

* *

Using the Diary Method :-

Research company determines representative sample Weekly diaries circulated Panel members complete diary

Instructed to complete on a daily basis Research company has no control over panel Could be completed just prior to collection Accuracy dependent upon memorizing viewing habits

Diaries collected and processed by research company

How a TV Rating is measured .......

People-o-meter vs. Diary

PEOPLE METER Based on actual viewing Push button technology

High degree of Accuracy Minute by minute GRPs

Immediate Results Ability to monitor new stations

quickly Guest Viewing Facility On-line access providing

cross tabulations Increased targeting options Reach & frequency data

DIARY Based on recalled viewing Manual self completion

Less accurate 1/4 hour GRPs

2/3 week delay in reporting results

Panel viewing only Paper access only Delay in reporting new

stations Lack of targeting options Limited reach & frequency

data

Definition : The percentage of the target audience who saw

the programme/commercial

1 rating point = 1% of the target audience.

Formula : Audience Achieved ÷ Defined Universe (x 100) = Rating

In Practice : 18-40 yrs Women watching Prog. A - 1,110,000

18-40 yrs Universe - 2,750,000

Rating - 40%

Question: If 9,00,000 Housewives saw our commercial during

programme “X” and the universe for Housewives is 36 lakhs, what

rating did we achieve?

Television Rating Point (TRP)

25

Gross Rating Points (GRP)Definition :The sum of all ratings achieved in a campaign.

(Note : GRP levels are generally measured andreported on a 4 week basis.)

In Practice : Our commercial appeared in the followingprogrammes :Programme RatingSerial 1 32Serial 2 21Movie 18Sport 24News 15

110- 110 GRPs achieved

Question: How many GRP’s would be achieved by a campaign with two spots in a movie (achieving 21% rating on one occasion

& 25% rating on the other), a spot in a serial (achieving a 18% rating) & a spot in the News (achieving 16% rating)?

80

Definition : %age of the target audience who saw

the commercial at least once during a given campaign period.

In Practice : ProgrammeSerial 1Serial 2MovieSportNews

Rating3221182415

110 GRPs

Unduplicated Reach3211974

63%

Cumulative Reach3243525963

63% Reach

Coverage (Net Reach)

Question: If we did not have the News on the above schedule, how many GRPs and what Reach would this campaign achieve?

GRPs - 95Reach - 59%

Reach:

As insertions/ spots are added to the media schedule, only the audience not previously exposed to the message are added to the reach total

Thus, once a person is counted as reached, that person is not counted again no matter how many times the person is exposed to the vehicle

To cut a long story short…Reach is always unduplicated

Definition : The number of times, on average, the audience

reached sees the commercial during a given period.

Formula : Average Frequency = Total GRPs ÷ Reach or

GRPs = Reach x Average Frequency

In Practice : 110 GRPs ÷ 63% Reach = 1.75 Average Frequency

Therefore, 63% of the target audience will see

the commercial on average 1.75 times during the

given period.

Average Frequency

Short Quiz

Question:

350 GRPs and 7.0 Av Frequency = ? % Reach 80% Reach and 5.0 Av Frequency = ? GRPs

400 GRPs and 80% Reach = ? Av Frequency 300 GRPs and 55% Reach = ? Av Frequency 350 GRPs and 60% Reach = ? Av Frequency

504005.0

5.455.83

Definition : The cost of buying one rating point.

Formula : Cost ÷ GRPs = Cost per rating point

In Practice : Rs 440,000 ÷ 55 GRPs = Rs 8000 cost per rating pt.

Question: If your cost per GRP was Rs 10,000 and your budget was

Rs 12 lakhs for the month, how many GRPs would you

expect to buy?

Cost Per Rating Point (CPRP)

120

Definition : The cost of reaching 1000 individuals within the

campaign target audience.Formula : Cost

(GRPs ÷ 100) x Universe

In Practice : Rs 12,00,000 cost; 110 GRPs; 50,00,000 Universe

12,00,000 1.1 x 50,00,000

Question: Work out the CPT given the following components :

Universe 65,00,000Campaign Cost Rs 20,00,000Eight spots on the schedule that achieved

the following individual ratings : 23, 18, 24, 16, 9, 31, 17 and 12

x 1000 = CPT

x 1000 = Rs 218 CPT

Cost Per Thousand (CPT)

205

Definition : The percentage of the target audience who have seen the commercial at the defined optimum frequency levels.

In Practice : The optimum frequency level to achieve brand awareness may be 3+. The effective reach in theexample below is therefore 44%.

Effective Reach

Frequency Distribution

Frequency 1+ 2+ 3+ 4+ 5+ 6+ 7+ 8+Reach% 63% 55% 44% 31% 23% 15% 11% 7%

The following schedule was constructed against the target audience Housewives 18-49 years. The universe for the target audience is 7,800,000 and the campaign cost is Rs. 110,000.

ProgrammeMusic CountdownBaywatchMovieTTMMDynastyL.A. LawCheersSaans

Rating19149

13217

1518

Unduplicated Reach1911378258

63

Cumulative Reach1930334048505563

63%

1) What GRP’s did this campaign achieve?2) What is the Average Frequency? 3) What is the cost per GRP? 4) What is the CPT? 5) If Saans was not on the schedule, how many GRPs would the campaign have achieved and what would the campaign reach have been?

Quiz Summary

116116/63 = 1.84

110,000/116 = Rs. 948Rs. 12.16

GRP=98, Reach=55%

Print Media

Newspapers / MagazinesCirculationDefinitions : The number of copies each edition sells. In Practice : India Today (E) has a circulation of 414,000 copies.

ReadershipDefinition : The total number of adult readers for each title.In Practice : India Today has a circulation of 414,000, but an average

of 13.9 readers per copy. Total Readership = 13.9 x 414,000 = 57,80,000

CompositionDefinition : The number of readers per title who fall into our target

audience - expressed as a percentage of the readership.In Practice : Readership - 57,80,000

: Composition of Men Readers 78% : Total Men reading Readers Digest =

57,80,000 x 78% = 45,13,000

A Rating

Definition :The percentage of the target audience who saw the insertion..1 rating point = 1% of the target audience.

Formula : (Audience Achieved ÷ Defined Universe) x 100 = Rating

In Practice : All Men reading India Today - 45 lakhsAll Men Universe - 3555

lakhsRating - 1.2%

Question: If 356,000 Women 25+ SEC AB saw our insertion in “Femina” & the universe for Women 25+ SEC AB is 156 lakhs, what rating did

we achieve?

2.3

Thank You