Media Planning Establishing frequency goals for an advertising campaign is a mix of art and science...
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Transcript of Media Planning Establishing frequency goals for an advertising campaign is a mix of art and science...
Media Use Decision— Print
Media Use Decision— Broadcast
Media Use Decision— Other Media
Creative Strategy Plan
Developing the Media PlanDeveloping the Media Plan
Setting Media Objectives
Selecting Media Within Class
Selecting Broad Media Classes
Determining Media Strategy
Marketing Strategy PlanSituation Analysis
Goals to be attained Goals to be attained by the media by the media strategy and strategy and
programprogram
Decisions on how Decisions on how the media the media
objectives can be objectives can be attainedattained
Media Planning - A series of decisions involving the delivery of messages to audiences.Media Planning - A series of decisions involving the delivery of messages to audiences.
Media Planning TermsMedia Planning TermsMedia Planning TermsMedia Planning Terms
Medium - the general category of delivery system.Medium - the general category of delivery system.
Media vehicle - the specific carrier within a mediumMedia vehicle - the specific carrier within a medium
Reach - the percentage of audience members Reach - the percentage of audience members exposed at least once to a message or media vehicle.exposed at least once to a message or media vehicle.
Coverage - the Coverage - the potentialpotential audience that audience that mightmight receive receive the message through a media vehicle.the message through a media vehicle.
Frequency - the number of times the receiver is Frequency - the number of times the receiver is exposed to the message in a given period of time.exposed to the message in a given period of time.
Medium - the general category of delivery system.Medium - the general category of delivery system.
Media vehicle - the specific carrier within a mediumMedia vehicle - the specific carrier within a medium
Reach - the percentage of audience members Reach - the percentage of audience members exposed at least once to a message or media vehicle.exposed at least once to a message or media vehicle.
Coverage - the Coverage - the potentialpotential audience that audience that mightmight receive receive the message through a media vehicle.the message through a media vehicle.
Frequency - the number of times the receiver is Frequency - the number of times the receiver is exposed to the message in a given period of time.exposed to the message in a given period of time.
Media Planning DifficultiesMedia Planning Difficulties
Lack of informationLack of information
Inconsistent termsInconsistent terms
Serious time pressureSerious time pressure
Measurement problemsMeasurement problems
Media Planning Criteria Media Planning Criteria ConsiderationsConsiderations
The media mixThe media mix
Target market coverage (Who?)Target market coverage (Who?)
Geographic coverage (Where?)Geographic coverage (Where?)
SchedulingScheduling
Reach versus frequencyReach versus frequency
Creative aspects and moodCreative aspects and mood
FlexibilityFlexibility
Budget considerationsBudget considerations
To Whom Shall We Promote?To Whom Shall We Promote?To Whom Shall We Promote?To Whom Shall We Promote?
Market Potential IndexMarket Potential IndexMarket Potential IndexMarket Potential Index
Percentage of users in a segment
Percentage of population in segment
Percentage of users in a segment
Percentage of population in segmentx 100x 100
Percentage of males that drink cola
Percentage of males in the population
Percentage of males that drink cola
Percentage of males in the populationx 100x 100
53.1
(87118 / 182456)
53.1
(87118 / 182456)x 100 = 111x 100 = 111
Product: ColaSegment: Adult males in the USProduct: ColaSegment: Adult males in the US
To Whom Shall We Promote?To Whom Shall We Promote?To Whom Shall We Promote?To Whom Shall We Promote?
Misuse of the IndexMisuse of the IndexMisuse of the IndexMisuse of the Index
AgeSegment
Populationin Segment
Productuse in
Segment
Index
18-24 15.1 18.0 119
25-34 25.1 25.0 100
35-44 20.6 21.0 102
45+ 39.3 36.0 91
Where to Promote?Where to Promote?Where to Promote?Where to Promote?Buying Power IndexBuying Power Index
Sales & Marketing ManagementSales & Marketing Management Gives relative value of a market.Gives relative value of a market.
Buying Power IndexBuying Power Index Sales & Marketing ManagementSales & Marketing Management Gives relative value of a market.Gives relative value of a market.
Where to Promote?Where to Promote?Where to Promote?Where to Promote?
Brand Development Index (BDI)Brand Development Index (BDI)Brand Development Index (BDI)Brand Development Index (BDI)
Percentage of brand sales in a market to total US sales
Percentage of total US population in the market
Percentage of brand sales in a market to total US sales
Percentage of total US population in the marketx 100x 100
50%
16%
50%
16%x 100 = 312x 100 = 312
Percentage of brand sales in South Atlantic region
Percentage of US population South Atlantic region
Percentage of brand sales in South Atlantic region
Percentage of US population South Atlantic regionx 100x 100
Where to Promote?Where to Promote?Where to Promote?Where to Promote?
Category Development Index (CDI)Category Development Index (CDI)Category Development Index (CDI)Category Development Index (CDI)
Percentage of product category total sales in market
Percentage of total US population in the market
Percentage of product category total sales in market
Percentage of total US population in the marketx 100x 100
25%
16%
25%
16%x 100 = 156x 100 = 156
Percentage of product category sales in South Atlantic
Percentage of US population South Atlantic region
Percentage of product category sales in South Atlantic
Percentage of US population South Atlantic regionx 100x 100
Where to Promote?Where to Promote?Where to Promote?Where to Promote?
Using CDI and BDIUsing CDI and BDIUsing CDI and BDIUsing CDI and BDI
High BDI Low BDI
High CDIHigh market share
Good market potential
Low market share
Good market potential
Low CDIHigh market share
Poor market potential
Low market share
Poor market potential
High BDI Low BDI
High CDIHigh market share
Good market potential
Low market share
Good market potential
Low CDIHigh market share
Poor market potential
Low market share
Poor market potential
Where to Promote?Where to Promote?Where to Promote?Where to Promote?
Using CDI and BDIUsing CDI and BDIUsing CDI and BDIUsing CDI and BDI
High BDI Low BDI
High CDIHigh market share
Good market potential
Low market share
Good market potential
Low CDIHigh market share
Poor market potential
Low market share
Poor market potential
High BDI Low BDI
High CDIHigh market share
Good market potential
Low market share
Good market potential
Low CDIHigh market share
Poor market potential
Low market share
Poor market potential
This market usually represents good sales potential.Excellent advertising market.This market usually represents good sales potential.Excellent advertising market.
Where to Promote?Where to Promote?Where to Promote?Where to Promote?
Using CDI and BDIUsing CDI and BDIUsing CDI and BDIUsing CDI and BDI
High BDI Low BDI
High CDIHigh market share
Good market potential
Low market share
Good market potential
Low CDIHigh market share
Poor market potential
Low market share
Poor market potential
High BDI Low BDI
High CDIHigh market share
Good market potential
Low market share
Good market potential
Low CDIHigh market share
Poor market potential
Low market share
Poor market potential
Category is not selling well but the brand is.Probably a good market, but monitor for declining sales.Category is not selling well but the brand is.Probably a good market, but monitor for declining sales.
Where to Promote?Where to Promote?Where to Promote?Where to Promote?
Using CDI and BDIUsing CDI and BDIUsing CDI and BDIUsing CDI and BDI
High BDI Low BDI
High CDIHigh market share
Good market potential
Low market share
Good market potential
Low CDIHigh market share
Poor market potential
Low market share
Poor market potential
High BDI Low BDI
High CDIHigh market share
Good market potential
Low market share
Good market potential
Low CDIHigh market share
Poor market potential
Low market share
Poor market potential
Category shows high potential but the brand is not doing well. Reason must be determined.Category shows high potential but the brand is not doing well. Reason must be determined.
Where to Promote?Where to Promote?Where to Promote?Where to Promote?
Using CDI and BDIUsing CDI and BDIUsing CDI and BDIUsing CDI and BDI
High BDI Low BDI
High CDIHigh market share
Good market potential
Low market share
Good market potential
Low CDIHigh market share
Poor market potential
Low market share
Poor market potential
High BDI Low BDI
High CDIHigh market share
Good market potential
Low market share
Good market potential
Low CDIHigh market share
Poor market potential
Low market share
Poor market potential
Both the category and the brand are doing poorly.Not likely to be a good place for advertising.Both the category and the brand are doing poorly.Not likely to be a good place for advertising.
Timing StrategiesTiming StrategiesTiming StrategiesTiming Strategies
0
20
40
60
80
100
$ Spent
Campaign Time
Continuity Stragegy
0
20
40
60
80
100
$ Spent
Campaign Time
Continuity Stragegy
Timing StrategiesTiming StrategiesTiming StrategiesTiming Strategies
ContinuityContinuity AdvantagesAdvantages
Constant reminderConstant reminder
Covers the entire buying cycleCovers the entire buying cycle
Allows for media priorities (discounts, scheduling)Allows for media priorities (discounts, scheduling) DisadvantagesDisadvantages
Higher costsHigher costs
Potential for overexposurePotential for overexposure Typical useTypical use
Food productsFood products
Laundry detergentLaundry detergent
Products consumed on an ongoing basisProducts consumed on an ongoing basis
ContinuityContinuity AdvantagesAdvantages
Constant reminderConstant reminder
Covers the entire buying cycleCovers the entire buying cycle
Allows for media priorities (discounts, scheduling)Allows for media priorities (discounts, scheduling) DisadvantagesDisadvantages
Higher costsHigher costs
Potential for overexposurePotential for overexposure Typical useTypical use
Food productsFood products
Laundry detergentLaundry detergent
Products consumed on an ongoing basisProducts consumed on an ongoing basis
Timing StrategiesTiming StrategiesTiming StrategiesTiming Strategies
0
20
40
60
80
100
$ Spent
Campaign Time
Flighting Stragegy
0
20
40
60
80
100
$ Spent
Campaign Time
Flighting Stragegy
Takes advantage of a carryover effect in consumerawareness levels.Takes advantage of a carryover effect in consumerawareness levels.
0
20
40
60
80
100
$ Spent
Campaign Time
Flighting Stragegy
0
20
40
60
80
100
$ Spent
Campaign Time
Flighting Stragegy
Timing StrategiesTiming StrategiesTiming StrategiesTiming Strategies
Takes advantage of a carryover effect in consumerawareness levels.Takes advantage of a carryover effect in consumerawareness levels.
ConsumerAwarenessConsumerAwareness
Timing StrategiesTiming StrategiesTiming StrategiesTiming Strategies
FlightingFlighting AdvantagesAdvantages
Cost efficiencyCost efficiency
May allow multiple media or vehicles with limited budgetMay allow multiple media or vehicles with limited budget
Weighting may offer more exposure and competitive advantage during Weighting may offer more exposure and competitive advantage during scheduled timesscheduled times
DisadvantagesDisadvantagesLack of awareness/interest/retention during unscheduled timesLack of awareness/interest/retention during unscheduled times
Vulnerable to competitive efforts during unscheduled timesVulnerable to competitive efforts during unscheduled times Typical useTypical use
Products with limited budgets Products with limited budgets
Products for which highest potential buying times can be identified Products for which highest potential buying times can be identified
Seasonal productsSeasonal products
FlightingFlighting AdvantagesAdvantages
Cost efficiencyCost efficiency
May allow multiple media or vehicles with limited budgetMay allow multiple media or vehicles with limited budget
Weighting may offer more exposure and competitive advantage during Weighting may offer more exposure and competitive advantage during scheduled timesscheduled times
DisadvantagesDisadvantagesLack of awareness/interest/retention during unscheduled timesLack of awareness/interest/retention during unscheduled times
Vulnerable to competitive efforts during unscheduled timesVulnerable to competitive efforts during unscheduled times Typical useTypical use
Products with limited budgets Products with limited budgets
Products for which highest potential buying times can be identified Products for which highest potential buying times can be identified
Seasonal productsSeasonal products
Timing StrategiesTiming StrategiesTiming StrategiesTiming Strategies
0
20
40
60
80
100
$ Spent
Campaign Time
Pulsing Stragegy
0
20
40
60
80
100
$ Spent
Campaign Time
Pulsing Stragegy
Combination of Continuity and Flighting. Advertising is increased during an open aperture.Combination of Continuity and Flighting. Advertising is increased during an open aperture.
Timing StrategiesTiming StrategiesTiming StrategiesTiming Strategies
PulsingPulsing AdvantagesAdvantages
Previous two methods combinedPrevious two methods combined DisadvantagesDisadvantages
Higher costsHigher costs
Potential for overexposurePotential for overexposure Typical useTypical use
Automobiles April/September/DecemberAutomobiles April/September/December
Products with large budgets + peak sales periodsProducts with large budgets + peak sales periods
PulsingPulsing AdvantagesAdvantages
Previous two methods combinedPrevious two methods combined DisadvantagesDisadvantages
Higher costsHigher costs
Potential for overexposurePotential for overexposure Typical useTypical use
Automobiles April/September/DecemberAutomobiles April/September/December
Products with large budgets + peak sales periodsProducts with large budgets + peak sales periods
Reach & FrequencyReach & FrequencyReach & FrequencyReach & Frequency
Duplicated ReachDuplicated ReachDuplicated ReachDuplicated Reach
Reach & FrequencyReach & FrequencyReach & FrequencyReach & Frequency
Gross Ratings Points = Reach x FrequencyGross Ratings Points = Reach x Frequency 100 GRPs100 GRPs
100% exposed 1 time100% exposed 1 time
50% exposed 2 times50% exposed 2 times
25% exposed 4 times25% exposed 4 times
1% exposed 100 times1% exposed 100 times
Target Ratings Points = Target Audience Reach x FrequencyTarget Ratings Points = Target Audience Reach x Frequency
Gross Ratings Points = Reach x FrequencyGross Ratings Points = Reach x Frequency 100 GRPs100 GRPs
100% exposed 1 time100% exposed 1 time
50% exposed 2 times50% exposed 2 times
25% exposed 4 times25% exposed 4 times
1% exposed 100 times1% exposed 100 times
Target Ratings Points = Target Audience Reach x FrequencyTarget Ratings Points = Target Audience Reach x Frequency
Reach & FrequencyReach & FrequencyReach & FrequencyReach & Frequency
Magazine Readers/Issue
Rating UnduplicatedReaders
Today's Happiness
50,000 50.0 30,000
News Round-up
40,000 40.0 15,000
Fast Life 18,000 18.0 11,000
Totals 108,000 108.0 56,000
Magazine Readers/Issue
Rating UnduplicatedReaders
Today's Happiness
50,000 50.0 30,000
News Round-up
40,000 40.0 15,000
Fast Life 18,000 18.0 11,000
Totals 108,000 108.0 56,000
Target population:Target population: 100,000100,000Total gross impressions:Total gross impressions: 108,000108,000Gross rating points:Gross rating points: 108108Reach:Reach: 56 (56,000/100,000)56 (56,000/100,000)Average frequency:Average frequency: 1.9 issues (108,000/56,000)
or (108 GRP/56 Reach)1.9 issues (108,000/56,000)or (108 GRP/56 Reach)
Effects of Reach and FrequencyEffects of Reach and Frequency1.1. One exposure of an ad to a target group within a purchase One exposure of an ad to a target group within a purchase
cycle has little or no effect in I most circumstances.cycle has little or no effect in I most circumstances.2.2. Since one exposure is usually ineffective, the central goal of Since one exposure is usually ineffective, the central goal of
productive media planning I should be to enhance frequency productive media planning I should be to enhance frequency rather than reach.rather than reach.
3.3. The evidence suggests strongly that an exposure frequency The evidence suggests strongly that an exposure frequency of two within a purchase cycle is an effective level.of two within a purchase cycle is an effective level.
4.4. Beyond three exposures within a brand purchase cycle or Beyond three exposures within a brand purchase cycle or over a period of four or even eight weeks, increasing over a period of four or even eight weeks, increasing frequency continues to build advertising effectiveness at a frequency continues to build advertising effectiveness at a decreasing rate but with no evidence of decline.decreasing rate but with no evidence of decline.
5.5. Although there are general principles with respect to Although there are general principles with respect to frequency of exposure and its relationship to advertising frequency of exposure and its relationship to advertising effectiveness, differential effects by brand are equally effectiveness, differential effects by brand are equally importantimportant
6.6. Nothing we have seen suggests that frequency response Nothing we have seen suggests that frequency response principles or generalizations vary by medium.principles or generalizations vary by medium.
7.7. The data strongly suggest that wearout is not a function of The data strongly suggest that wearout is not a function of too much frequency; it is more of a creative or copy problem.too much frequency; it is more of a creative or copy problem.
Determining Frequency LevelsDetermining Frequency LevelsDetermining Frequency LevelsDetermining Frequency Levels
Marketing FactorsMarketing Factors Brand history: new brands = higher frequenciesBrand history: new brands = higher frequencies Brand share: higher share = lower frequenciesBrand share: higher share = lower frequencies Brand loyalty: higher loyalty = lower frequenciesBrand loyalty: higher loyalty = lower frequencies Purchase/use cycles: short purchase cycle = higher frequenciesPurchase/use cycles: short purchase cycle = higher frequencies Share of voice: More noise = higher frequenciesShare of voice: More noise = higher frequencies
Marketing FactorsMarketing Factors Brand history: new brands = higher frequenciesBrand history: new brands = higher frequencies Brand share: higher share = lower frequenciesBrand share: higher share = lower frequencies Brand loyalty: higher loyalty = lower frequenciesBrand loyalty: higher loyalty = lower frequencies Purchase/use cycles: short purchase cycle = higher frequenciesPurchase/use cycles: short purchase cycle = higher frequencies Share of voice: More noise = higher frequenciesShare of voice: More noise = higher frequencies
Determining Frequency LevelsDetermining Frequency LevelsDetermining Frequency LevelsDetermining Frequency Levels
Message FactorsMessage Factors Message complexity: complex message = higher frequenciesMessage complexity: complex message = higher frequencies Message uniqueness: unique message = lower frequenciesMessage uniqueness: unique message = lower frequencies Campaign newness: new campaigns = higher frequenciesCampaign newness: new campaigns = higher frequencies Image vs product sell: image sell = higher frequenciesImage vs product sell: image sell = higher frequencies Message variation: single message = lower frequenciesMessage variation: single message = lower frequencies
Message FactorsMessage Factors Message complexity: complex message = higher frequenciesMessage complexity: complex message = higher frequencies Message uniqueness: unique message = lower frequenciesMessage uniqueness: unique message = lower frequencies Campaign newness: new campaigns = higher frequenciesCampaign newness: new campaigns = higher frequencies Image vs product sell: image sell = higher frequenciesImage vs product sell: image sell = higher frequencies Message variation: single message = lower frequenciesMessage variation: single message = lower frequencies
How does this relate to the RMH?
Determining Frequency LevelsDetermining Frequency LevelsDetermining Frequency LevelsDetermining Frequency Levels
Media FactorsMedia Factors Clutter: more clutter = higher frequenciesClutter: more clutter = higher frequencies Attentiveness: more attentiveness = lower frequenciesAttentiveness: more attentiveness = lower frequencies Scheduling: continuous scheduling = lower frequenciesScheduling: continuous scheduling = lower frequencies
Media FactorsMedia Factors Clutter: more clutter = higher frequenciesClutter: more clutter = higher frequencies Attentiveness: more attentiveness = lower frequenciesAttentiveness: more attentiveness = lower frequencies Scheduling: continuous scheduling = lower frequenciesScheduling: continuous scheduling = lower frequencies
Determining Relative Media Determining Relative Media CostsCosts
Determining Relative Media Determining Relative Media CostsCosts
Print: Cost per thousand (CPM)Print: Cost per thousand (CPM)Print: Cost per thousand (CPM)Print: Cost per thousand (CPM)
Cost of ad space
Circulation
Cost of ad space
Circulationx 1,000x 1,000
Time Newsweek
Per-page cost $156,000 $144,000
Circulation 4.0 million 3.1 million
Calculation of CPM156,000 x 1,000
4,000,000144,000 x 1,000
3,100,000
CPM $39.00 $46.45
Determining Relative Media Determining Relative Media CostsCosts
Determining Relative Media Determining Relative Media CostsCosts
Broadcast: Cost per rating point (CPRP)Broadcast: Cost per rating point (CPRP)Broadcast: Cost per rating point (CPRP)Broadcast: Cost per rating point (CPRP)
Cost of 1 unit of time
Program rating
Cost of 1 unit of time
Program rating
King of Queens Friends
Cost per spot ad
$3,500
$4,000
Rating
11
15
Calculation
$3,500 11
$4,000 15
CPRP
$318.18
$266.67
CautionsCautionsCautionsCautions
Scenario A: Overestimation of EfficiencyScenario A: Overestimation of EfficiencyScenario A: Overestimation of EfficiencyScenario A: Overestimation of Efficiency
Time Newsweek
Per-page cost $156,000 $144,000
Circulation to Target Market
4.0 million2.6 million (65%)
3.1 million2.48 million (80%)
Calculation of CPM156,000 x 1,000
2,600,000144,000 x 1,000
2,480,000
CPM $60.00 $58.06
CautionsCautionsCautionsCautions
Scenario B: Underestimation of EfficiencyScenario B: Underestimation of EfficiencyScenario B: Underestimation of EfficiencyScenario B: Underestimation of Efficiency
Time
Per-page cost
$156,000
Circulation Pass-along rate
4.0 million 3 @ 33%
Calculation of CPM
156,000 x 1,000 4,000,000+3(1,320,000)
CPM
$19.60