Media Planning and Decisions

1. Chapter 11 Media Planning and Decisions

2. Major Decisions in Advertising

3. Satellite radio stations 2 Broadcast networks (TV and cable) 100 TV stations 3,510 Satellite radio stations 2 Broadcast networks (TV and cable) 100 TV stations 3,510 Consumer magazines 5,340 Newspapers (daily and weekly) 8,100 Radio stations 13,898 Newspapers (daily and weekly) 8,100 Consumer magazines 5,340 The Traditional Media Landscape

4. Spending by Media (Billions of Dollars)

5. 2014年台灣總廣告量統計

6. 2014年台灣總廣告量統計

7. An Overview of Media Planning • Some basic terms and concepts • The media plan • Problems in media planning

8. Some Basic Terms and Concepts • Media planning: the series of decisions involved in delivering the promotional message to the prospective purchasers and/or users of the product or brand. • Media objectives: goals to be attained by the media strategy and program. • Media strategies: decisions on how the media objectives can be attained. • Medium: the general category of available delivery systems, which includes broadcast media, print media, direct mail, outdoor advertising, and other support media.

9. Some Basic Terms and Concepts • Media vehicle (載體): the specific carrier within a medium category. • Reach: a measure of the number of different audience members exposed at least once to a media vehicle in a given period of time. (actual) • Coverage: the potential audience that might receive the message through a vehicle. (potential) • Frequency: the number of times the receiver is exposed to the media vehicle in a specific period.

10. 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 The Media Plan Situation analysis Situation analysis Marketing strategy plan Creative strategy plan Setting media objectives Determining media strategy Selecting broad media classes Selecting media within class

11. Problems in Media Planning • Insufficient information • The timing of measurement: sweeps periods – February, May, July, and November. • Inconsistent terminologies • Time pressures • Difficulty measuring effectiveness

12. 2013年台灣媒體代理商前10名

13. Developing the Media Plan • Market analysis • Establishment of media objectives • Media strategy development and implementation • Evaluation and follow-up

14. Market Analysis and Target Market Identification • To whom shall we advertise? • What internal and external factors are operating? • Where to promote?

15. To Whom Shall We Advertise? • Secondary information • Government, e.g. age, education. • Market research companies, e.g. SMRB, MRI, 東方線上– E-ICP & CMMS. • Index number • Figure 10-5 • The high index may be a result of a low denominator. (Figure 10-6)

16. Example

17. Internal and External Factors • Internal factors: the size of media budget, managerial and administrative capability, the organization of the agency. • External factors: the cost of media, changes in technology, competitors.

18. Where to promote? • Buying power index • Based on population, effective buying income and retail sales. • Brand development index • Category development index

19. Percentage of brand to total U.S. sales in market Percentage of brand sales to total sales in market BDI = X 100 Percentage of total U.S. population in market Percentage of total population in market Brand Development Index (BDI)

20. Percentage of product category total sales in market CDI = X 100 Percentage of total population in market Category Development Index (CDI)

21. Example

22. Brand and Category Analysis High BDI Low BDI High market share Good market potential Low market share Good market potential High CDI High market share Monitor for sales decline Low market share Poor market potential Low CDI

23. High BDI Low BDI The market usually represents good sales potential for both the product and the brand. The product category shows high potential but the brand isn’t doing well; the reason should be determined. HighCDI The category isn’t selling well but the brand is; may be a good market in which to advertise but should be monitored for sales decline. Both the product category and the brand are doing poorly; not likely to be a good place to advertise. Low CDI Brand and Category Analysis

24. Media Planning Criteria Considerations • The media mix • Target market coverage • Geographic coverage • Scheduling • Reach versus frequency • Creative aspects and mood • Flexibility • Budget considerations

25. Population excluding target market Target market Media coverage Media overexposure Target Market Proportion Full Market Coverage Partial Market Coverage Coverage Exceeding Market Target Audience Coverage

26. Three Scheduling Methods • Continuity (連續型): a regular pattern of advertising. • Flighting (間歇型): a less regular schedule with intermittent periods of advertising and nonadvertising. • Pulsing (脈動型): a combination of the above two methods. • Pros & Cons of the three methods

27. Continuity Flighting Pulsing Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Three Scheduling Methods

28. Reach versus Frequency • Reach • Awareness • Trial • Frequency • The actual audience for a commercial and a program • Figure 10-18

29. Reach of One Program Reach of Two Programs Total market audience reached Total market audience reached Duplicated Reach of Both Unduplicated Reach of Both Total reached with both shows Total reach less duplicate Reach and Frequency

30. GRPs • Gross rating points (GRPs) = Reach × Frequency • Target rating points (TRPs) • The # of people in the primary target audience the media buy will reach – and the # of times. • Unlike GRP, TRP does not include waste coverage. • 100 TRPs = 32% × 3.125 = 37.2% × 2.688 = 44.5% × 2.247 • Relationship between GRPs & awareness • 2500 → 70% • 1000~2500 → 33% • <1000 → 0%

31. Example

32. Effects of Reach and Frequency • One exposure of an ad to a target group within a purchase cycle has little or no effect in most circumstances. • Since one exposure is usually ineffective, the central goal of productive media planning should be to enhance frequency rather than reach. • The evidence suggests strongly that an exposure frequency of two within a purchase cycle is an effective level. • Beyond three exposures within a brand purchase cycle or over a period of four or even eight weeks, increasing frequency continues to build advertising effectiveness at a decreasing rate but with no evidence of decline.

33. Effects of Reach and Frequency • Although there are general principles with respect to frequency of exposure and its relationship to advertising effectiveness, differential effects by brand are equally important. • Frequency response principles or generalizations do not vary by medium. • The data strongly suggest that wearout is not a function of too much frequency. It is more of a creative or copy problem.

34. Graph of Effective Reach

35. Factors Important in Determining Frequency Levels • Marketing Factors • Brand history (－) • Brand share (－) • Brand loyalty (－) • Purchase cycles (－) • Usage cycle (－) • Competitive share of voice (＋) • Target group

36. Factors Important in Determining Frequency Levels • Message or Creative Factors • Message complexity (＋) • Message uniqueness (－) • New vs. continuing campaigns • Image vs. product sell • Message variation (＋) • Wearout • Advertising units (－)

37. Factors Important in Determining Frequency Levels • Media Factors • Clutter (＋) • Editorial environment • Attentiveness (－) • Scheduling (continuous < flighting or pulsing) • Number of media used (＋) • Repeat Exposures (－)

38. Budget Considerations • Absolute cost: the actual total cost required to place the message. • Relative cost: the relationship between the price paid for advertising time or space and the size of the audience delivered. • Cost per mille (CPM) → magazine • Cost per rating point (CPRP) → broadcast media • Daily inch rate → newspaper

39. Cost per mille (CPM) Cost of ad space (absolute cost) CPM = X 1,000 Circulation Determining Relative Cost of Media

40. Cost per rating point (CPRP) Cost of commercial time CPRP = Program rating Determining Relative Cost of Media

41. Example (Magazine)

42. Example (Newspaper)

43. 閱報人口統計 • 人口分佈統計 • 閱報率

44. Limitations of CPM • Overestimate • Readers per copy • Pass-along rate: the number of people who read the magazine without buying it, e.g. 遠見, 新台灣. • Underestimate • Target CPM, e.g. 商業週刊, 哈佛商業評論. • Quantitative (NOT qualitative)

45. Television Pros and Cons Advantages Disadvantages Mass coverage Low selectivity Low selectivity Mass coverage Short message life Short message life High reach High reach High absolute cost Impact of sight, sound and motion High absolute cost Impact of sight, sound and motion High prestige High production cost High production cost High prestige Low cost per exposure Clutter Low cost per exposure Attention getting Attention getting Favorable image Favorable image

46. Radio Pros and Cons Advantages Disadvantages Audio only Local coverage Local coverage Audio only Clutter Clutter Low cost Low cost Low attention getting Low attention getting High frequency High frequency Fleeting message Flexible Flexible Low production cost Low production cost Well-segmented audience Well-segmented audience

47. Magazine Pros and Cons Advantages Disadvantages Long lead time for ad placement Segmentation potential Long lead time for ad placement Segmentation potential Visual only Quality reproduction Visual only Quality reproduction High information content Lack of flexibility High information content Longevity Longevity Multiple readers Multiple readers

48. Newspaper Pros and Cons Advantages Disadvantages Short life High coverage High coverage Short life Clutter Clutter Low cost Low cost Low attention getting Short lead time for placing ads Short lead time for placing ads Low attention getting Poor reproduction quality Poor reproduction quality Ads can be placed in interest sections Ads can be placed in interest sections Selective reader exposure Timely (current ads) Timely (current ads) Reader controls exposure Reader controls exposure Can be used for coupons Can be used for coupons

49. Outdoor Pros and Cons Advantages Disadvantages Short exposure time Location specific Location specific Short exposure time Short ads Short ads High repetition High repetition Poor image Easily noticed Easily noticed Poor image Local restrictions

50. Direct Mail Pros and Cons Advantages Disadvantages High cost per contact High selectivity High cost per contact High selectivity Poor image (junk mail) Poor image (junk mail) Reader controls exposure Reader controls exposure Clutter High information content High information content Repeat exposure opportunities Repeat exposure opportunities