Unit 9 – Media (Reach, Frequency, GRP)

1. Unit 9 – Media (Reach, Frequency, GRP) Dr. Darrel Muehling

2. Promotional Plan • I. Executive Summary • II. Situation Analysis • Company/product history • Product evaluation • Consumer evaluation • Competitive evaluation • Other forces/trends (e.g., regulatory) • III. Marketing Goals • IV. Budget • V. Creative Recommendations • a) Advertising Objectives • b) Creative Strategy & Executions • VI. Media Recommendations • Media Objectives, Strategies, and Plans • VII. Other Promotion Mix Recommendations • Sales Promotion • Public Relations • Personal Selling/Direct Marketing • VIII. Evaluation • (Effectiveness measures) • IX. Summary & Conclusions

3. Media Of all the topics covered in this class, “media” tends to be the one most foreign to students (even though it appears to be intuitively simple).

4. Media Relationships Ad Agency Or Media Buyer Advertiser Media Representative

5. Typical Media Decisions • How can I effectively reach my target market? • (Matching target markets to media audiences, considering costs & relative effectiveness)

6. Typical Media Decisions (cont.) • Which media should I use? • Media mix = proportion of ads placed on/in TV, radio, magazines, newspapers, outdoor, web, etc. • Considering strengths & weaknesses of each medium

7. Typical Media Decisions (cont.) • Which media vehicles should I use? • Vehicles = TV programs, magazine titles, radio shows, etc.

8. Typical Media Decisions (cont.) • When should I run/place my ads? • Time of year • Time of day

9. Typical Media Decisions (cont.) • How often should I run/place my ads? • How many times? • Frequency of exposures

10. The “Lingo” of Media(Concepts/Terms Relevant to Media Planning) • Reach • Gross impressions • Frequency • Gross ratings points (GRPs) • Rating • Share • Flighting, Pulsing • CPM, CPM-TM • Up-front • Scatter • Sweeps • Spot buys

11. Reach • Expressed as either a raw number (e.g., number of homes or individuals) • Or, expressed as a % (a % of the target market)

12. “Reach” defined The # or % of homes (or individuals) from a target market that have been exposed to an ad at least once during a certain time period. “unduplicated” audience – not double-counting individuals who have been exposed more than once

13. Vehicle A Vehicle B Vehicle C Vehicle F Vehicle D Vehicle E

14. Vehicle B Vehicle E Vehicle A Vehicle C Vehicle D Vehicle F (Unduplicated audience)

15. Effective reach (# and %) • Effective reach counts only those households that have been reached three or more times.

16. “Frequency” defined • Of the homes/individuals reached, frequencyis the average number of times they have been exposed to the ad. • As such, frequency never can be less than one.

17. To understand “frequency,” we must first understand “gross impressions” “Gross impressions” – the total number of exposuresin a media schedule. (“duplicated” audience)

18. Vehicle A Vehicle B Vehicle C “Duplicated” audience Vehicle F Vehicle D Vehicle E

19. Frequency Gross impressions ---------------------- Reach (#)

20. Gross ratings points (GRP) • A summary measure of the intensity of a media schedule GRP = Reach (%) X Frequency

21. What does a GRP of a certain value mean? • The GRP figure is a “relative” number that is influenced by both reach and frequency • It may be compared to other media schedules generating greater or few GRPs

22. Consider a GRP of 300 Reach 100% of the target market 3 times Reach 50%of the target market 6 times Reach 25% of the target market 12 times Reach 10% of the target market 30 times

23. Frequency If Reach(%) X Frequency = GRP, an alternative way to measure frequency is: GRPs ------------ Reach (%)

24. Reach Strategy • A media strategy that attempts to reach as many individuals or households from the target market as possible.

25. Frequency Strategy • A media strategy that attempts to reach individuals or households from the target market as many times as possible.

26. How would you execute: • A reach strategy? • A frequency strategy?