Media Planning/Buying Issues

1. Media Planning/Buying Issues Interactive Brand Communication Class 10

2. Ad Placement Issues • Delivery among Targets (Targeting Capabilities) • Advertising Pricing (& Cost-efficiency) • Reach (by entire buy, if possible) • Frequency (by entire buy, if possible) • Ad Position Effects • BPI Value of a Vehicle • Qualitative Values

3. Delivery Among Targets • Content Fit • based on analysis of consumer characteristics, interest, values & lifestyle, etc. • Size of Delivery (target impressions, when possible): • % delivery breakdown by consumer groups – demographic, geographic, usage, etc. • Site Reach & Target Reach • site reach: total unique users of the site • target reach: target unique users as % of total unique users

4. Delivery Among Targets • Site Frequency • frequency control capabilities • Targeting Capabilities • geodemographics, behavioral, any desired option, etc.

5. Ad Pricing • Sources for Web Advertising Sites & Rates • Who sells ad space on the Net? • How much does it cost? • Ad Pricing Methods & Cost-Efficiency • How is ad priced and its cost-efficiency determined? • Tactics of Buying & Selling Ad Space

6. Ad PricingSources for Web Ad Sites & Rates • SRDS Interactive – general source • covers the largest number of sites • PSA Banner Ads -- PSA only • Ad Networks DoubleClick (www.doubleclick.net) 24/7 Media (www.247media.com) Link Exchange (www.bcentral.com) • Ad Auction (www.adauction.com)

7. Ad Pricing Methods & Cost-Efficiency CPM (Cost-Per-Thousand) Impressions: • Cost for 1000 pages or ads displayed or requested (page views or ad views) • Most popular method • Current Rates at $5 - $100 • Rate varies by site (branded sites charge more) and by targeting option (the more specific, the more expensive)

8. Ad Pricing Methods & Cost-Efficiency Cost Per Click (Click-Through) • Paying only for the number of click-throughs made (those who clicked the given ad and linked to the destination page –mini-page in the current site or advertiser’s site) • Demanded by direct response advertisers, though its use or popularity is decreasing • Higher rates than CPM

9. Ad Pricing Methods & Cost-Efficiency Cost Per Sales • Paying only for the completed sales transaction (in terms of so much $ or % of the sale, which varies on the value of the item sold) Cost Per Sales Leads • Paying for other desired actions leading to sales (store visits, leaving info for contact, test-drive, etc.)

10. Ad Pricing Methods & Cost-Efficiency Flat Fee • A set amount charged, regardless of # impressions or clicks • Used often for content sponsorships • Rate may range from $200 to $200,000 per month

11. Ad Pricing Methods & Cost-Efficiency CPVT (Cost per View-Through) • Number of those who are exposed to the ad and take action within 30 days of the exposure • New approach, getting popular for branding marketers

12. Ad Pricing Methods & Cost-Efficiency Auctions • Price determined via auction • May be much lower Hybrid Pricing • Combining two or more methods • Popular method

13. Tactics of Buying and Selling Ad Space • Study Competitive Pricing • Be Open to Negotiation • Flexibility is the Key

14. Reach • Unduplicated audience = Unique users expressed in number or % of total online population • Reported by week, month, quarter • Tactics of building reach (in general): • Use many content categories; use multiple sites within a category (thru ad networks); use top sites in unique users (costly); and/or buy keywords at search engines

15. Frequency • Average # of times the target is exposed to ad • Issue: How much is optimal? • Limit ad frequency to avoid burnout? Or the more the better? • How much is too much? -- depends on the goal (direct response vs. branding), and many other factors. • 3 exposures in a purchasing cycle? • Tactics of Building Frequency: • Use one or two content categories; use one or two in each category • Develop and rote multiple banners within the same site

16. Ad Timing • When is the best time to run ads? • Least developed, increasingly important area –how ad timing is related to the desired response • Advertising will be most effective when delivered right before one is about to make a purchase decision or when he searches for the relevant information • Traditional tactics may apply (e.g., double-spots, roadblocks, etc.)

17. Ad Positions within a Site • Keep the Message Close to Page Content • (Place at the Top and/or Bottom of Page??) • Place a Third Way Down Close to the Scroll Bar

18. BPI Value Assessment • Most useful for direct response marketers • NetScore by comScore Network Inc. – see Table • BPI overall vs. BPI by Product Category (ROI or cost-efficiency indicator) • 100 = average likelihood of purchase; <100 = above average; >100 = below average; the larger the BPI, the more ROI (cost efficient) the buy • Example: a site with overall BPI of 120 (site visitors are 20% more likely than an average Internet user to purchase anything); a site with BPI of 120 for Travel (site visitors are 20% more likely than an average Internet user to travel)

19. BPI Value Assessment • Other Valuable Information (see the table in Experiential Exercises) • Unique User weighed by BPI: • Indicates the relative volume of sales to be generated by site; the larger this number, the larger the sales

20. Qualitative Values • content match • ad clutter • audience loyalty/site stickiness • ad inventory availability • category exclusivity

21. Qualitative Values • any added value (special deals & discount) • image and reputation • Read Zeff & Aronson book for others (reporting quality & frequency, performance guarantees, etc.)