Media Planning and Buying

Key Points
Outline the basic media concepts used by planners and buyers Describe the types of information compiled by media researchers Analyze how media planners set media objectives List the key media strategy decisions Identify the responsibility of media buyers

1-2

The Media Plan

A written document that summarizes the objectives and strategies pertinent to the placement of a companys advertising messages

1-3

Media Expenditures to Reach $1 Trillion

Media Terminology
Media Planning
Media Objectives Media Strategy

A series of decisions involving the delivery of messages to audiences

Goals to be attained by the media strategy and program Decisions on how the media objectives can be attained Various categories of delivery systems, including broadcast and print media Either radio or television network or local station broadcasts

Media

Broadcast Media

Media Terminology
Print Media
Media Vehicle

Publications, such as newspapers, magazines, direct mail, outdoor, etc.

The specific carrier within a medium category

Reach

Number of different audience members exposed at least once in a time period The potential of audience that might receive the message through the vehicle Number of times the receiver is exposed to the media vehicle in a time period

Coverage

Frequency

Developing the Media Plan

Situation analysis Marketing strategy plan Creative strategy plan

Setting media objectives

Determining media strategy Selecting broad media classes Selecting media within class

Media use decision broadcast

Media use decision print

Media use decision other media

Media Planning Difficulties

Measurement Problems

Lack of Information

Problems in Media Planning

Time Pressure

Inconsistent Terms

Developing a Media Plan

Analyze the market

Establish media objectives Develop media strategy Implement media strategy Evaluate performance

Media Planning and Buying

The Aperture Concept The goal of the media planner is to expose the target audience to the message at the critical point when the consumer is receptive to the brand message ( Right Media + Right People + Right Time) To find the most effective ways to deliver messages at every contact point a point where consumer connect with the brand and respond to a brand message

1-10

Central Role of Media Research

1-11

Media Research
Information Sources Client information Market research Competitive advertising Media information Consumer information

1-12

Media Research: Information Sources

Client information Targeted markets Previous promotions and their performance Product sales and distribution patterns Brand plans The budget

1-13

Media Research: Information Sources

Market Research Independently gathered information about markets and product categories

1-14

Media Research: Information Sources

Competitive Advertising Media planners make decisions based on the amount of competitive traffic - Share of voice
Measures the percentage of total advertising spending by one brand relative to the competition
1-15

Media Research: Information Sources

Media Information Various media provide information about the size and makeup of their audiences Designated marketing area

1-16

Media Research: Information Sources

Consumer Information Media planners use consumer information to locate the target audience within media markets

1-17

Media Objectives
The Reach Objective
First& Most important Principle

The percentage of the different audience that is exposed at least once the advertisers message during a specific time frame
(how many audience can see your ad message)

1-18

Media Objectives
The Frequency Objective
Estimates the number of times the exposure is expected to happen
Average frequency Frequency distribution (how often your ad. message can be seen)

1-19

When REACH? When FREQUENCY?

Reach is suitable for: Introduce new product Repositioning Wide target market Lower price and easy to find Monopoly market Sales promotion Remind message Frequency is suitable for: Small sales area More competitors Product need to be explained a lots

1-20

Media Objectives
Exposure and GRPs
Gross impressions The sum of the audiences of all the media vehicles used during a certain time span Gross Ratings Points Media planners convert impressions to gross ratings points in order to compare the efficiency of media schedules

Impression=actual exposure -TV actual viewer =/= reach -RADIO actual listener=/=reach -MAGAZINE actual reader =/= circulation

1-21

What is Media Strategies?

Media planners determine the most costeffective media mix that will reach the target audience and satisfy the media objectives

1-22

Three Scheduling Methods

Continuity

Flighting

Pulsing

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Media Strategies
1. Delivering on the Objectives Strategies are designed to deliver on the media objectives, to deliver the right level of exposure in terms of reach and frequency - Reach or frequency objective or BOTH

1-24

Media Strategies
2. Target Audience Strategies: finding way to reach the target audience in the most efficient way -Media Use: what media the target is using Media research -Geography: location of the target audience (BKK, suburb,nationwide) -Consumption Pattern: heavy allocation of media in strong sales areas than weak sales areas

1-25

Media Strategies
3. Media mix selection Strategies Using a variety of media to get your message out to customers send the message more widely Different media tend to have different audience profiles Generally, media selection is based on message needs e.g lot of info. magazine, internet moving image T.V., internet
1-26

Media Strategies
4. Cost Efficiency: CPM and CPP =the process of measuring the target audience size against the cost of the audience - Cost Per Thousand(CPM):compare the media on the basis of cost of ad. to expose thousand audience - Cost Per Point (CPP): compare the media on the basis of rating points (simpler) (best when used to compare w/n the same medium)

1-27

Example: CPM & CPP

Cost per thousand
CPM = cost of message unit/gross impressions (expected target audience) x 1,000

Cost per point

CPP = cost of message unit/program or issue rating (comparing media vehicles by relating the cost to the audience rating)

e.g. program A: 200000/10=20000 VS program B 200000/20=10000

1-28

Media Strategies
5.Scheduling Strategies
Timing Strategies

- Duration: How long? :

set the period of time e.g. 3 months, 6months, whole yea - Continuity: How often?: the way the ad is spread over the length depends on the budget, product usage e.g. shampoo VS air-conditioner

LEAD TIME:
1) time allowed before the sales period (seasonal p/d) 2)production time needed to get ad into the medium
ADVERTISING Principles and Effective IMC Practice 1-29

Continuity Scheduling Strategies

1. Continuous strategy: spreads continuously / match consumer use cycle product usage

2. Pulsing strategy: intensify ad before the open aperture and reduce the ad (Periodic intensity) 3. Flighting strategy: It has the periods of intense and period of no ad (hiatus. (On-and off schedule)
ADVERTISING Principles and Effective IMC Practice 1-30

Continuity Scheduling Strategies

1-31

Graph of Effective Reach

Marketing Factors Determining Frequency

Marketing Factors

Brand Loyalty

Brand Share

Usage Cycle

Brand History

Share of Voice

Purchase Cycles

Target Group

Message Factors Determining Frequency

Message or Creative Factors

Message Complexity Message Uniqueness New Vs. Continuing Campaigns Image Versus Product Sell Message Variation Wearout Advertising Units

Message Factors Determining Frequency

Message or Creative Factors

Message Complexity Message Uniqueness New Vs. Continuing Campaigns Image Versus Product Sell Message Variation Wearout Advertising Units

Media Factors Determining Frequency

Clutter Scheduling Repeat Exposure

Media Factors
Attentiveness

Editorial Environment Number of Media Used

Media Factors Determining Frequency

Clutter Scheduling Repeat Exposure

Media Factors
Attentiveness

Editorial Environment Number of Media Used

Flexibility in Media Planning Strategies

Market opportunities

Market threats

Flexibility

Changes in media or media vehicle

Availability of media

Media Budget
- -Media planner begins and ends with the budget

BUDGET

MEDIA MIX

BUDGET ALLOCATION

1-39

Media Planning and Buying

Media planning
The way advertisers identify and select media options

Media buying
Identifying specific vehicles, negotiating the costs to advertise in them, and handling billing and payment

1-40

Media Department
Media planner: makes the strategic decision in media plan Media Buyer : person who provide information to media planner, select media, negotiating costs, monitoring the media choices, evaluate the media choices, handling billing and payment

1-41

Media Buying

Media Planner

Provide Info to Media Planner

Select Media Vehicle

Billing & Payment

Monitor the Payment

Post-Campaign Evaluation
1-42

Media Buying
Providing inside info Media buyers are important information sources for media planners Close enough to day-to-day changes in media popularity and pricing to be a constant source of inside information

1-43

Media Buying
Selecting Media Vehicles Choose the best vehicles that fit the target audiences aperture The media planner lays out the direction; the buyer is responsible for choosing specific vehicles

1-44

Basic Media Concepts

Media vehicle
A specific TV program, newspaper, magazine, or radio station or program e.g. AT TEN, , Daily News, Hotwave

1-45

Examples:
Medium: Single form of communication Media Vehicle: specific program

1-46

Media Buying
Negotiation Media buyers pursue special advantages for clients Locate the desired vehicles and negotiate and maintain satisfactory schedule and rates Preferred Positions Locations in print media that offer readership advantages Preferred positions often carry a premium surcharge

1-47

Media Buying
Extra Support Offers Value-added media services
Contests Special events Merchandising space at stores Displays Trade-directed newsletters

1-48

Media Buying
Billing and Payment It is the responsibility of the advertiser to make payments to various media The agency is contractually obligated to pay the invoice on behalf of the client

1-49

Media Buying
Monitoring the Buy The media buyer tracks the performance of the media plan as it is implemented, as well as afterward Poorly performing vehicles must be replaced or costs must be modified (check the feedback)

1-50

Media Buying
Post-campaign Evaluation Once a campaign is completed, the planner compares the plans expectations and forecasts with what actually happened Provides guidance for future media plans

1-51

Media Key Players

Media salespeople work for a medium Media reps are people or companies that sell space or time for a variety of media

1-52

Determining Relative Cost of Print Media

Cost per thousand (CPM) CPM =

Cost of ad space (absolute cost)

X 1,000

Circulation

Determining Relative Cost of Broadcast Media

Cost per rating point (CPRP)

Cost of commercial time Program rating

CPRP =

Evaluation and Follow-Up

How well did these strategies achieve the media objectives?

How well did the media plan contribute to attaining the overall marketing and communications objectives?

Use again, or analyze flaws

Super bowl ads

Television Pros and Cons

Advantages
Mass coverage High reach

Disadvantages
Sight, sound, motion Low selectivity

High prestige
Low cost per exposure Attention getting Favorable image

Short message life

High absolute cost High production cost Clutter

Radio Pros and Cons

Advantages
Local coverage Low cost

Disadvantages
High frequency Audio only Flexible Low production cost Clutter

Low attention getting

Fleeting message

Well-segmented audience

Magazine Pros and Cons

Advantages
Segmentation potential Quality reproduction High information content Longevity Multiple readers

Disadvantages
Long lead time for ad placement Visual only Lack of flexibility

Newspaper Pros and Cons

Advantages
High coverage
Low cost Short lead time for placing ads Ads can be placed in interest sections Timely (current ads) Reader controls exposure Can be used for coupons

Disadvantages
Short life Clutter Low attention getting Poor reproduction quality Selective reader exposure

Outdoor Pros and Cons

Disadvantages
Short exposure time

Short ads

Advantages
Location specific

Poor image Local restrictions

High repetition Easily noticed

Direct Mail Pros and Cons

Advantages
High selectivity
Reader controls exposure

Disadvantages
High information content Repeat exposure opportunities High cost per contact Poor image (junk mail) Clutter

Internet Pros and Cons

Advantages
User selects product information
User attention and involvement Interactive relationship Direct selling potential Flexible message platform

Disadvantages
Limited creative capability Websnarl

Technology limitations Few measurement techniques

Limited reach