Media Planning and Strategy

1. Media Planningand Strategy

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

3. Publications such as newspapers, magazines, direct mail, outdoor, etc. Publications such as newspapers, magazines, direct mail, outdoor, etc. The specific carrier within a medium category The specific carrier within a medium category (i.e. Time Magazine, HGTV, etc.) Number of different audience members exposed at least once in a given time period Number of different audience members exposed at least once in a given time period The potential audience that might receive the message through the vehicle The potential audience that might receive the message through the vehicle The number of times the receiver is exposed to the ad/media vehicle in a specific time period Media Terminology Print Media Media Vehicle Reach Coverage Frequency

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

5. A. Reach of One Program B. Reach of Two Programs Total market audience reached Total market audience reached C. Duplicated Reach of Both D. Unduplicated Reach of Both Total reached with both shows Total reach less duplicate Further Defining Reach

6. Graph of Effective Reach

7. Brand Loyalty Brand Share Usage Cycle Brand History Share of Voice Purchase Cycles Target Group Marketing Factors Determining Frequency Marketing Factors Brand Loyalty Brand Share Usage Cycle Brand History Share of Voice/ Competition Purchase Cycles

8. Message Complexity Message Uniqueness New Vs. Continuing Campaigns Image Versus Product Sell Message Variation Wearout Ad Size/Length Message Factors Determining Frequency Message or Creative Factors Message Complexity Message Uniqueness New vs. Continuing Campaigns Image vs. “Straight” Sell Message Variation Wearout Considerations

9. Continuity Flighting Pulsing Three Scheduling Methods Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec What are the pros and cons of each method?

10. Sample Flighting Schedule

11. Clutter Scheduling -continuous vs. pulse/flight/blast Repeat Exposures Attentiveness Editorial Environment Number of Media Used Media Factors Determining Frequency Clutter Repeat Exposures (consumer- generated) Media Factors Attentiveness Editorial Environment Number of Media Used

12. Market opportunities Market threats Changes in media or media vehicle Availability of media Flexibility in Media Planning Strategies Market opportunities Market threats Flexibility Availability of media

13. Cost to Advertise CPM = X 1,000 Circulation Determining Relative Cost of Media - CPM Cost per thousand (CPM)

14. Calculating CPM Based on the Target Audience

15. Ratings • Ratings are a measure of Reach • 110 million (MM) television households in the U.S., approximately equivalent to the total # of households in U.S. • Neilsen captures ratings data through Peoplemeters, diaries, surveys, etc. and publishes this data • 1 Rating Point = 1% of television households exposed to program = 110 MM x .01 = 1.10 million households exposed (roughly a million) • Example: 10 million households watch “House”. House’s rating is 10 MM / 110 MM = 9 points • Caveat: Rating % is always higher than % who viewed advertising

16. Nielsen’s People Meter

17. Cost of Advertising CPP = Program Rating Determining Relative Cost of Media - CPP Cost per rating point (CPP)

18. Gross Rating Points (GRPs) • GRPs = Reach x Frequency • Measure is specifically for television (and sometimes radio) media buys • Example: Advertising 5 times during a 10-rated program yields a 5 x 10 = 50 GRP media buy. • GRP as a summary number: does not provide distribution characteristics (i.e. is 100 GRPs = 50 rating x 2 exposures or = 25 rating x 4 exposures?) • Foote, Cone & Belding study findings • 2,500 GRP buy yields 70% probability of high awareness • 1,000 – 2,500 GRP buy yields 33% probability of high awareness • Less than 1,000 GRP buy yields virtually no awareness • Effective Rating Points (ERPs): GRPs adjusted for % of target audience that actually sees or ignores the message (i.e. 30% of target audience may “zip” or “zap” the commercial, stop watching, be inattentive, etc.)

19. Problems with CPM/CPP • What are the three main problems with Relative Cost of Media Measures like CPM and CPP? • Purely focused on cost per exposure; no focus on results, ROI, engagement, media impact, etc. • May not account for the effects of time and repetition • Calculations may use duplicated or unduplicated reach numbers • No adjustments made for continuity factors (continuity is beneficial!)

20. Problems with CPM/CPP • SOLUTIONS • TEMPORAL CPM/CPP T-CPM, T-CPP • Weighted Impression CPM/CPP WI-CPM, WI-CPP • Continuity Adjusted CPM/CPP CA-CPM, CA-CPP • Formulas: • T-CPM = [CPM/Ad Exposure Time] / [Sales Time Period] • T-CPP = [CPP/Ad Exposure Time] / [Sales Time Period] • WI-CPM = ([Ad Cost] / [Sum of Weighted Impressions]) x 1,000 • CA-CPM = [Ad Cost x (1 + ασ)] / [Weighted Impressions] • α = alpha coefficient σ = continuity index (st dev of time differences)