Learning Objectives

CHAPTER 7
Assess roles & responsibilities of both client and agency in media planning Differentiate among media objectives, media strategies and media execution Utilize terminology used in media planning

Media Planning Essentials

Continued

7-1

Copyright 2009 Pearson Education Canada

7-2

Copyright 2009 Pearson Education Canada

Learning Objectives (cont.)

Describe the steps involved in the media selection process Identify the factors affecting the size of an advertising budget Describe the methods of determining the size of an advertising budget

Media Planning
Process of developing a plan of action for communicating messages
to the right people (target) at the right time, and with the right frequency.

Efficiency in media planning can be loosely defined as gaining maximum impact or exposure at minimum cost to the client.

7-3

Copyright 2009 Pearson Education Canada

7-4

Copyright 2009 Pearson Education Canada

Media Planning Process

Client provides relevant background information to agency in the form of a media brief.
1. Market Profile 2. Product Media Profile 3. Competitor Media Usage 4. Target Market Profile 5. Media Objectives 6. Media Budget
7-5 Copyright 2009 Pearson Education Canada 7-6

Media Planning Process

Marketing Plan Advertising Plan Creative Plan Media Objectives Media Strategies Media Execution Media Evaluation
Copyright 2009 Pearson Education Canada

The Media Plan

Document that outlines all relevant details including:
How a clients budget will be spent Clearly defined objectives Rationalized strategies Precise execution details

Media Objectives
Clearly worded statements that outline what the media plan should accomplish.
1. Who is the target market? 2. What is the advertising message? 3. Where are the market priorities? 4. When is the best time to advertise? 5. How many, often, long?

7-7

Copyright 2009 Pearson Education Canada

7-8

Copyright 2009 Pearson Education Canada

Media Strategies
Numerous factors are considered for achieving objectives:
Target Market Nature of Advertising Message Reach/Frequency/Continuity Market Coverage Best time to reach target Competitor media strategies Media alternatives Budget
7-9 Copyright 2009 Pearson Education Canada 7-10

Target Market Media Strategies

Shotgun Roadblock Profilematching Rifle

Explain why roadblocking is not useful in rifle or profile-matching strategies.

Copyright 2009 Pearson Education Canada

Nature of Advertising Message

Factual message
print & website

Reach/Frequency/Continuity
Reach
How many?

Emotional message
broadcast, online video & website

Frequency
How often?

Promotional message
TV for awareness Print, POP & website for details on how to enter

Continuity
How long?
How flexible is the plan? Can it be altered?
Copyright 2009 Pearson Education Canada 7-12 Copyright 2009 Pearson Education Canada

Brand-name awareness
outdoor &transit
7-11

Reach
The total unduplicated audience [individuals or households] exposed to a message one or more times in a period (week).
Reach Formula = # households tuned in # households in area = 50 000 250 000 = 20%
7-13 Copyright 2009 Pearson Education Canada 7-14

Frequency
The average number of times an audience is exposed to a message over a period of time (week).
Frequency Formula = Total Exposures Reach = 250 000 50 000 = 5.0
Copyright 2009 Pearson Education Canada

or

1 5

Impressions
Total number of commercial occasions scheduled, multiplied by the total target audience potentially exposed to each occasion.
Impressions = Reach X Frequency
= 100 000 X 3 = 300 000 Over an 8-week schedule the gross impressions would be: 2 400 000 (300 000 X 8)
7-15 Copyright 2009 Pearson Education Canada 7-16

Gross Rating Points (GRPs)

GRPs refer to the weight of a media schedule against a pre-determined target audience.
GRP = Reach (%) x Frequency = 50 x 3.5 = 175

Copyright 2009 Pearson Education Canada

Continuity, Engagement, & Flexibility

Continuity:
The length of time required to generate impact on a target audience.

Advertising Flights

Engagement:
The degree of involvement a person has with the media when they are using it.

Flexibility:
The ability to modify media spending plans throughout the scheduled advertising period.
7-17 Copyright 2009 Pearson Education Canada 7-18 Copyright 2009 Pearson Education Canada

Media Coverage
Identifying the number of markets where advertising will occur. National
Regional Key Market Selective

Best Time to Reach Target

7-19

Copyright 2009 Pearson Education Canada

7-20

Copyright 2009 Pearson Education Canada

Competitor Media Strategies

Media planners should analyze competitors media usage and expenditure patterns.
Should you follow a similar pattern? Should you recommend a unique strategic direction?

Media Alternatives
1. Nature of the product Television Radio Newspaper Magazines Out-of-Home Direct-Response Internet 2. Description of the target market and the media they refer to most often 3. Budget is key influence

7-21

Copyright 2009 Pearson Education Canada

7-22

Copyright 2009 Pearson Education Canada

Budget Influence on Media Strategy

Small Budget
Limited strategy

Media Execution
Fine tuning the strategy and translating it into specific action plans.

Large Budget Reach Flexible Frequency strategy Continuity Market Coverage Timing Media Mix: Competition Media Usage Primary & Type (Choice) of Media Secondary Media

Media Selection Process

Selective Media Usage

7-23

Copyright 2009 Pearson Education Canada

7-24

Copyright 2009 Pearson Education Canada

Cost per Thousand (CPM)

Cost incurred in delivering a message to one thousand individuals.
The formula for calculating CPM is as follows: Unit Cost of Message Circulation (000)

Media Scheduling and Budgeting

Media schedule is normally presented in a calendar format, often referred to as a blocking chart.
Outlined in one or two pages
Media usage Market coverage Weight levels GRPs Reach Frequency Timing
7-26 Copyright 2009 Pearson Education Canada

CPM

7-25

Copyright 2009 Pearson Education Canada

Media Buying
Once the media plan is approved, the media buyer negotiates the buy with media representatives to obtain the most effective and efficient buy within the guidelines of the plan. User-friendly software developed by BBM Bureau of Measurement, Nielsen Media Research, etc. lets media buyers makes reasoned and detailed decisions.

The Media Budget

Factors affecting budget size:
Size of Customer Base Degree of Competition Stage in the Product Life Cycle Product Characteristics Management Philosophy about Advertising

7-27

Copyright 2009 Pearson Education Canada

7-28

Copyright 2009 Pearson Education Canada

Budgeting Methods
1. Percentage of Sales 2. Fixed Sum per Unit Sold 3. Industry Average (Competition Spending) 4. Task (Objective) Method 5. Share of Advertising / Share of Market

7-29

Copyright 2009 Pearson Education Canada