Media Planning and Buying

1. Media Planning and Buying

2. Do you have control of your clients PR & media budget? • Are you able to buy media space for your clients? • Are you aware of special features coming up relating to your client’s product or service? • Are you unsure of how media is planned and bought? • Do you understand the terminology used in buying media?

3. This talk sets out to: • Explain the media planning process • Outline the tools available to plan with • Define key terms used in the bought media environment • Open the floor for questions throughout the discussion • The subject matter is very broad, and therefore the more interaction I get from your side, the more focussed on your needs this session will become

4. Media planning defined • Media planning can be defined as: • Finding ways of reaching the right number of appropriate people; • the right number of times; • at the best time and place; • with the right advertisement; • at minimum cost; • to achieve the brand’s/service’s objectives • The role of media planning is crucial to the effective expenditure of approximately R6 billion in advertising annually

5. “TAKE SOME DEMOGRAPHICS, ANDSOME GUT FEELING, SPRINKLE WITHJUDGEMENT AND STIR” Source: Media Week January 1993

6. Media Research • AMPS (All Media and Products Survey) sample 24 812 population 30 901 000 • TAMS • (Television Audience Measurement Survey) • RAMS • (Radio Audience Measurement Survey) • SABRE sample 2 000 business men & women (South African Business Research Evaluation) • TGI sample 15 000 in two waves of 7 500 each (Target Group Index) • ROOTS urban retail and readership - local community papers sample 20 000

7. Rate information • Media Manager • SARAD

8. Competitive Spend Analysis • Nielsen Adex

9. The More Commonly Used Media Terms • REACH • The number of or percentage of individuals, households, etc., potentially exposed to a medium or schedule at least once

10. The More Commonly Used Media Terms(cont.) • AVERAGE FREQUENCY • The AVERAGE OPPORTUNITIES to see, hear or read an ad amongst those reachedOR • The number of times ON AVERAGE a person within the target market, who has been reached is exposed to the advertiser’s message

11. The More Commonly Used Media Terms(cont.) • GRPs (GROSS RATING POINTS) • The summation of the exposure opportunities for all the elements in a media schedule • The product of reach and frequency • Used to express the “tonnage” of exposure generated by a campaign • Universal measure (comparing apples with apples, but use with caution as media have different impact)

12. The More Commonly Used Media Terms(cont.) • AR’S VERSUS GRP’S • Amps ratings are the number of viewers, averaged across a time period and percentaged on the total number of individuals in the relevant group • In essence, ARs fulfil the same role as GRPs • The number of spots during a burst is not important, because different TV and radio spots deliver different AR and GRP levels at varying costs • The main difference between ARs and GRPs is that the AR is a time weighted average. It is the average of the length of time that each person watched TV over a specified time

13. The More Commonly Used Media Terms(cont.) • EFFICIENCY VERSUS EFFECTIVENESS • WHAT IS COST EFFICIENCY ? • Relates to efficiency of media delivery, and is usually expressed as CPP or CPMIt is a method of comparing the value of different media for a specific campaign on a MONETARY basis • WHAT IS COST EFFECTIVENESS ? • It is a method of comparing the value of different media for a specific campaign on anACHIEVEMENT OF OBJECTIVES BASIS

14. The More Commonly Used Media Terms(cont.) • CPP VS CPT • CPP is the cost of achieving one rating point or 1% reach in any given market. Extensively used in electronic media • CPT refers to the advertising cost purchasing 1000 units of audiencei • We think of a rating as a percentage of the population, but ratings are time weighted • You could turn ratings into thousands by ignoring the fact that there are “bits” of people and simply multiply the universe by the rating • This forgets that some people saw all of the event and some only saw 50% of the event • Further, the peoplemeter universe changes daily, unless we look only at gender, age and language, therefore the calculation of thousands will differ depending on the universe

15. The More Commonly Used Media Terms(cont.) • PSCCM • Per single column centimeter • Newspaper pages are divided into columns for advertising • These do not correlate to columns for editorial, which vary depending on layout and editorial policy • Generally broadsheets are 54cm high by 10 columns wide • Generally tabloids are either 39cm high by 7 or 8 columns wide, depending on the publication group • Sunday Times recently introduced modular advertising, where height needs to be a variable of 5cm • Rates are worked out by multiplying rate by height, by column • Rates for full colour, black & white, 1 spot, 2 spot. Generally what you see is what you are charged for, but should be confirmed with the publication in question

16. The More Commonly Used Media Terms(cont.) • SPONSORSHIPS • A sponsorship is the full or partial financing by the advertiser of a programme / feature or event, in exchange for brand / corporate awareness / association with / within that programme or event • Generally sponsorships have the following elements • Opening Billboard – an introduction to a TV / radio programme, which usually includes a mention of the sponsors and normally 10” or 15” in length • Closing Billboard – an closing of a TV / radio programme, which usually includes a mention of the sponsors and normally 10” or 15” in length • Stings often attached to station promotion of the programme, 5” or 10” in duration (tagged) • Commercial flighting during the programme & sometimes stings during the programme

17. The Development of the Media Strategy The media Strategy Contains five basic elements: • Target Audience WHO • Geographic Spending WHERE • Scheduling WHEN • Creative Considerations WHAT • Media Weight / Delivery HOW MUCH

18. The Development of the Media Strategy (cont.) • Always involves a series of trade-offs • The decision made for each element has a “price tag” • Trade-offs or compromises will be necessary • The skill of media planning is to achieve the best balance of these dimensions relative to the campaign objectives

19. The Development of the Media Strategy (cont.) CONTINUITY/TIME (Longer campaigns, more bursts) COVER / REACHFREQUENCY (More publications, (More repetition, another medium) higher number of insertion) DOMINANCE / IMPACT (Longer commercials, bigger spaces, colour, special positions)

20. The Development of the Media Strategy (cont.) • Every Media Strategy document must include the following: • Marketing Environment • Target Market • Budget • Regionality • Timing / Seasonality • Objectives including exposure objectives • Strategy • Conclusion

21. Marketing Environment • KEY ISSUES • Market share and size • Pricing vs. competitors • Competitive activity • Clutter in the category? • High/low interest • Image/Commodity • Brand Loyalty

22. Constructing the Target • The target market definition should be a brief, clear and workable statement of the group of people to whom the advertising is aimed • The closer the match, the less money wasted on those not needed and the more efficient the campaign • Who are we talking to? • Use all available research sources • (Psychographic, demographic, LSMS, Lifestyle, Product Usage, Geodemographic, Media usage) • Regional skews • Purchaser vs. user – same or different people • Quantify the target universe

23. LSMS • Social changes and the breakdown of community barriers resulted in crossover consumption of media • LSMs came about to remove racial references from media planning unless they are relevant to the media plan • There are 29 variables and positive and negative scores are allocated for each in order to measure your LSM level

24. LSMS

25. Budget • How much money is available? • Does budget include / exclude VAT / Production / Promotions • Cash flow timing • Track real vs. inflated increase / decrease

26. Timing / Seasonality • When is the product purchased ? • How often ? • Promotional timing (Do we need promotional advertising support pre / post / during promotional periods?) • Will advertising have a greater effect at certain times of the year?

27. Objectives • If you don’t know where you are going, and why, any road will take you there and you won’t know when you have arrived! • Tasks have to be set out in clear, unambiguous terms, with a broad outline of the ways in which they are to be carried out • WHAT IS A MEDIA OBJECTIVE? • Objectives should be clear with regard to time and effect • Media objectives should be specific to media

28. What Are Our Media Objectives • REACH SPECIFIC • DURATION MEASURABLE • IMPACT ACHIEVABLE • FREQUENCY REALISTIC • TIME PERIOD

29. Strategy(How to achieve our objectives) • Is a “classical” above –the-line media route the answer or a combination of ATL media and BTL / promotional exposure? • Inherent strengths/weaknesses of different approaches & media types • What tactical opportunities are available? • Is budget sufficient for the recommended route? • Does client have preconceived ideas about media usage? • Arrive at recommended plan of action • Include broad media selection

30. Plan the Detail • The specifics of each medium recommended in the media strategy is planned • Implementation may take the form of conventional advertising or the negotiation of promotional / sponsorship concept • The plan details • Selection of media vehicles • Selection of timing and phasing elements • Selection of number of insertions-relates to GRPs • Selection of programmes (TV/Radio) • Allocation of budget

31. Media Buying • Traditionally the media department is divided into two clear functions, namely; • Media planning • Media buying • Over the past 5 decades media buying has consisted mainly of a largely admin orientated function of scheduling, booking and administration of the media plan • However, with recent developments including the advent of the media independent, media planners are often looked upon as custodian of the media strategy, formulators of the media objectives, while media buyers are the custodians of the actual campaign delivery

32. Media Buying (cont.) • There are a number of ways the media buyer can make a direct impact on the content of the actual media plan • Rate negotiation • Budget and Rate monitoring • Campaign monitoring • Scheduling • The above factors have given rise to a new term … implementation planning

33. Television – A Working Timeframe • Airtime is always subject to availability • Rate cards are received approximately 2 months prior • On SABC to qualify for early booking discount the schedule has to be booked 5 weeks before a particular month • Bookings should be made as early as possible due to limited availability • Material deadline is 5 to 10 days prior • For sponsorships, material is required earlier for approval • Cancellation deadline is 15 - 28 working days or 100% penalty

34. Radio – A Working Timeframe • Airtime is always subject to availability • Booking deadlines vary from are 3 to 5 working days prior flighting • Material deadlines vary from 2 to 5 working days prior to flighting • For sponsorships or created features, the deadline is 2 weeks and for a competition 1 month • The cancellation deadline is 10 to 28 days or a 100% penalty will apply • Rate increases are generally advised 3 weeks to a month prior to implementation and different station groups increase rates at varied times of the year • There are often more than one rate increase per annum with radio

35. Cinema – A Working Timeframe • Cinema must be booked 3 to 5 weeks before first screening date on for 35mm and 10 days for digital • A cinema week starts on a Friday • 35mm final material must be delivered 3 weeks prior to first screening date in order for bulk prints to be produced • Digital material must be delivered 2 weeks before first screening date to accommodate transfer and checking • The cancellation period is 28 days to 6 weeks

36. Magazines – A Working Timeframe • Booking as well as cancellation deadline is generally 6 weeks prior to scheduled month • Material delivery deadlines are generally four weeks • In the case of the weekly financial magazines, booking deadline is two weeks prior to issue date with material deadline ten days to one week prior to issue date • 50% to 100% cancellation if after the booking deadline

37. Newspapers– A Working Timeframe • Daily newspapers require 2 to 3 days for booking as well as cancellation • Material delivery is 1 or 2 days before issue date • Weekly newspapers should preferably be booked 7 working days before issue date • Material delivery 3 days before issue date • Cancellation deadline is the same as booking deadline

38. Outdoor – A Working Timeframe • An outdoor contract must be signed at least 21 working days before application date • Booking deadline is maximum 3 months prior or based on availability • Contract renewal is at least 3 months prior to expiry • Final material must be delivered 10 working days before application date in order to produce face • Cancellation of a contract is not accepted with some media owners, while others require as much as 4 months • Failure to advise non-renewal incurs 100% penalty

39. Monitoring The Plan • Once the plan has been booked, it requires constant monitoring of all aspects of the media plan • The following four aspects need constant scrutiny • Budget • Performance • Environment • The Brand • Media planning is an ongoing process, that means constantly challenging the status quo and looking for new solutions