Advertising MANAGEMENT

1. Advertising MANAGEMENT Lecture 3 MEDIA PLANNING Prof SoumitraMookherjee

2. MEDIA PLANNING: OVERVIEW Media planning is the task of a media agency and entails finding the most appropriate media products for a client's brand or product. The job of media planning involves the best combination of media to achieve the given marketing campaign objectives. The media planner needs to address the following questions How much of the audience can I reach through different media? On which media (and ad vehicles) should I place advertisements? What should be the frequency for each medium? Budget Allocation for each medium?

3. MEDIA PLANNING: FREQUENCY Media Planning is defined as "Process of designing a scheduling plan that shows how advertising time and space in selected media and vehicles contribute to the achievement of marketing objectives in an advertising campaign". Media planning is a tool that allows the advertiser to select the most appropriate media to communicate the message in sufficient frequency towards the maximum number of potential customers at the lowest cost.

4. MEDIA PLANNING: MEDIUM & vehicle The two most basic words in Media Planning are: * Medium: A medium is a carrier and deliverer of Advertisements. It is a broad general category of carries such as Newspapers, Television, Radio, Internet, Outdoor, Direct Mail, etc. * Vehicle: It is a specific carrier within a Media category. E.G. Zee TV would be the vehicle in the category of TV. AAJ TAK – NEWS CHANNEL, ESPN – FOR SPORTS, SERIALS - Star Plus would be the vehicle in the Television category.

5. MEDIA PLANNING: Key Components The three components of a media plan are as follows: 1. Defining the marketing problem. Do you know where your business is coming from? Do you know which markets offer the greatest opportunity? Do you need to reach everybody or only a select group of consumers? How often is the product used 2. Translating marketing requirements into attainable media objectives. If you want to reach large sections of people in a wide area, then mass media might be the best option. If your target market is a select group in a defined geographic area, then direct mail could be your best bet.

6. MEDIA PLANNING: Key Components 3. Defining a media solution by formulating media strategies. Certain schedules work best with different media. For example, the general consensus is that a print ad must run several times before it gets noticed. Radio advertising is most effective when run frequently at certain times of the day or around certain programs.

7. MEDIA PLANNING: KEY CONCEPT The process of establishing the exact media vehicles to be used for advertising Choosing which media or type of advertising to use is sometimes tricky for small firms with limited budgets and know-how. Large-market television, newspapers are often too expensive for a company. Magazines, unless local, usually cover too much territory to be cost-efficient for a small firm. Also, Metropolitan radio stations present the same problems as TV and metro newspapers.

8. MEDIA PLANNERS: Critical Roles Media planner in an advertising agency is responsible for selecting media for advertisement placement on behalf of their clients. The main aim of a media planner is to assist their client in achieving business objectives through their advertising budgets by recommending the best possible use of various media platforms available to advertisers. Their roles may include analyzing target audiences, keeping abreast of media developments, reading market trends and understanding motivations and behavior of consumers

9. ADVERTISING MEDIA: INCLUDES WHAT ? Television – Most regional and national Channels Radio – FM Channels Newspapers and Magazines ( General and Specific) Outdoor billboards Public transportation Yellow Pages and Classifieds Direct mail Specialty advertising on items like pencils, calendars, telephone pads, shopping bags, etc Other media -catalogs, samples, handouts, brochures, newsletters

10. MEDIA CHOICE: COST & EFFECTIVENESS The cost and effectiveness of various advertising media depends on: Reach. It is the number of individuals (or homes) you want to expose your product to through specific media scheduled. Frequency. How many times, on average, should the individuals in your target audience be exposed to your advertising message? Cost per thousand. How much will it cost to reach a thousand of your prospective customers E.g. To determine a publication's cost per thousand – entire cost divide by the number of copies

11. MEDIA CHOICE: COST & EFFECTIVENESS Selectivity. To what degree can the message be restricted to those people who are known to be the most logical prospects? Cost per point. How much will it cost to buy one rating point for your target audience, a method used in comparing broadcast media. Divide the cost of the schedule being considered by the number of rating points it delivers. Impact.Does the medium in question offer full opportunities for appealing to the appropriate senses, through its graphic design and production quality?

12. MEDIA CHOICE: criteria Advertising media selection is the process of choosing the most cost-effective media for advertising, to achieve the required coverage and number of exposures in a TARGET AUDIENCE This is typically measured on two dimensions: frequency and spread.

13. MEDIA CHOICE: criteria Frequency: Even with high coverage, it is insufficient for a target audience member to have just one 'Opportunity To See' (OTS) the advertisement. To build attitudes that lead to brand switching may require SEVERAL OTS. For even reaching to 70 per cent of the overall audience, almost 20 or 30 peak-time transmissions of a commercial, or a significant number of insertions of press advertisements in the national media is warranted.

14. MEDIA CHOICE: criteria SPREAD: More sophisticated media planners look at the 'spread' of frequencies. Ideally all of the audience should receive the average number of OTS. Those who receive fewer are insufficiently motivated. As with coverage, the pattern is weighted towards a smaller number of heavy viewers, Frequency is also a function of time. A pattern of 12 OTS across a year may be scarcely noticed, whereas 12 OTS in a week is evident to most viewers. This is often the rationale for intense advertising in `bursts' or `waves' (described as `pulsing').

15. TYPES OF MEDIA o Traditional or Mass Media: TV, Radio, etc to reach large audience. o Niche Media: Cable TV, Direct mail, etc. Reach the target audience with specific demographics, narrowly defined target audience. * Non-Conventional Media: Internet, and use of Traditional Media in the Online space The web has more or less become an environment of convergence. Broadband has brought to online the ability to generate and serve an increasingly complex array of advertising formats.

16. MASS MEDIA: VARIETY Mass media are media, which can be used to communicate and interact with a large number of audiences. Mass media are an inseparable part of our lives. Mass media is a double-edged sword which means that there are positive effects of media as well as negative influences of media. o

17. MASS MEDIA: VARIETY Print Media: The print media includes newspapers, magazines, brochures, newsletters, books and even leaflets and pamphlets. Visual media like photography can also be mentioned under this sub-head. Public Address and event organizing can also be considered as a form of mass media. Electronic Media: For many people, it is impossible to imagine a life without their television sets .This mass media includes television and radio. This category also includes electronic media like movies, CDs and DVDs o

18. MASS MEDIA: VARIETY New-age Media: With the advent of new technologies like Internet, we are now enjoying the benefits of high technology mass media, which is not only faster, but also has a widespread range. Mobile phones, computers and Internet are often referred to as the new-age media. Internet has opened up several new opportunities for mass communication which include email, websites, blogging o

19. SOCIAL MEDIA: POPULAR ‘Social media is nothing but a tool or website which helps to interact with other peoples.’ When we talk about social media sites then we think about social community sites like Facebook, Twitter , My Space Mainly social media sites are categorized as ‘Social Bookmarking’, ‘Social Networking’ and ‘Media Sharing’. o

20. SOCIAL MEDIA: POPULAR Social Networking: Fundamentally social networking sites are used for making new connections, interacting with friends, colleagues, potential business partners and family members. Facebook.com, Twitter.com, Myspace.com are popular examples of Social networking sites o

21. SOCIAL MEDIA: POPULAR Media Sharing: Sites are becoming quite famous these days. The best example is YouTube. You can share photos, videos, audios etc. Types of Media sharing sites are Blogs- WordPress, Blogger, TypePad etc. Photo Sharing: Flickr, Photobucket etc Video Sharing: YouTube, Metacafe etc Presentation Sharing: Slideshare.net, Scribd etc o

22. MEDIA STRATEGIES Media planners make three crucial decisions: Where to advertise (geography) When to advertise (timing) What media categories and vehicles to use (media mix)  Decisions are made in the face of budget constraints. Firms spend as little as 1% to more than 20% of revenues on advertising, depending on nature of their business. As some media options are more cost effective than others, the media planners formulate the best media strategies -- allocating budget across media categories, geographies, and time.

23. MEDIA MIX CHOICE When making media mix decisions, planners do not rely on just traditional media vehicles such as TV, radio, and print. Media planners consider all opportunities that can be non-traditional brand contact opportunities such as online advertising, sponsorships, product placements, direct mail, mobile phones, blogs, etc e.g. Product placement in a video game makes sense if the target audience plays video games. Real Estate Sector, Travel Agents, use On- Line Marketing tools, SMS Alerts. Print Media, Bill-Boards to promote product awareness and visibility Health Care Products, Sports Items use Teleshopping route, Print Media to boost consumer interest

24. MEDIA CATEGORY SELECTION Most media options can be classified into three broad categories: Mass media, Direct response media, and Point-of-purchase media. If the media planner wants to create broad awareness amongst largest possible number of consumers, then he will opt for mass media If the media planner wants to encourage an immediate sales response, then direct response media such as direct mail, Internet and mobile phone are good choices. Finally, if media planners want to convert shoppers into buyers, then they might use point-of-purchase media such as coupons and price-off promotions.

25. MEDIA CATEGORY SELECTION Online ads for general insurance/ Education Programs/ Airlines Deals/ Telecom Services link directly to the application process to capture the customers at the time they are interested in the service. An integrated campaign, where ITC, Unilever use multiple categories National TV ads, Print Media to introduce the product, Internet media to provide one-to-one information In-store displays to drive sales.

26. MEDIA STRATEGY: GEOGRAPHICAL SPREAD In addition to allocating advertising by media category, media planners must allocate advertising by geography. In general, a company that sells nationally can take one of three approaches: National approach (advertise in all markets), Spot approach (advertise only in selected markets), or Combined national plus spot approach

27. MEDIA STRATEGY: GEOGRAPHICAL SPREAD Example: NATIONAL APPROACH: For Products if sales are relatively uniform across the country, such as for Surf EXCEL, SONY, LG, Samsung, MUL or Toyota automobiles. SPOT APPROACH: For Products and services which could be popular in specific regions and requires awareness promotion inducing sales. Tourist Destinations: Resorts, Leisure Boats, Bars, Fast food restaurants Rural Areas: Promote and Advertise commodity and local Brands Rich Metropolitan Areas: Advertise premium products, Elite services

28. MEDIA SCHEDULING PLAN that identifies the Media Channel used in an advertising campaign, and specifies insertion or broadcast dates, positions and duration of messages. Once the target publications isidentified and cost is estimated one can establish a media schedule. This is a chart that shows which publications you will use, along with projected run dates captured in a spreadsheet. When determining the media schedule, you have decide if you will have an ongoing campaign throughout the year, or if you only have the budget to advertise during the launch.

29. MEDIA SCHEDULING Continuity: This model is primarily for non-seasonal products. Advertising runs steadily with little variation over campaign period. There may be short or long gaps at regular intervals. This pattern of advertising is prevalent in packaged goods that require continuous reinforcement on the audience. FMCG - bread, soft drinks and toilet paper probably require continuous weekly advertising in a competitive market to constantly reinforce brand awareness Advantages: Works as a reminder Covers the entire purchase cycle Cost efficiencies in the form of large media discounts

30. MEDIA SCHEDULING Flighting (or "bursting“): Flighting involves intermittent and irregular periods of advertising, alternating with shorter periods of no advertising at all. For instance, all of 2000 Target Rating display in a single month, then remaining silent for the rest of the year. e.g. Companies advertise fur coats in winter and suntan lotions in summer. Likewise, some products sell faster around specific holidays, such as flowers on Valentine’s Day, ornaments around Wedding period. Advantages: Little waste, since advertising concentrates on best purchasing cycle period Series of commercials appear as unified campaign on different media vehicles Creating better impact than the competitors

31. MEDIA SCHEDULING Pulsing:Pulsing combines flighting and continuous scheduling by using a low advertising level all year round and heavy advertising during peak selling periods. Product categories that experience a surge in sales at intermittent periods are ideal for pulsing. e.g. Deodorants, Ice Creams sell all year, but more in summer months Airlines – Holidays for causing Brand Switching Advantages: Covers different market situations Advantages of both continuity and flighting possible

32. MEDIA SCHEDULING: IMPRESSIONS The thumb rule is that it takes 5-7 impressions before a prospect buys. The first time they are aware of your product. The second they take note. The third they may decide to find out more about the product The fourth they may decide to get it. The 5th time they may actually write down the phone number or URL The 6th time they might actually call/ visit the web site to place the order. If not available on-line, it may take a few more impressions for them to Persuade them to go to the store and purchase.