Media Planning & Buying

An Indian Perspective

 Communication is the key to marketing and media is the key to communication What drives media choices
Reach Cost Effectiveness Relevance

Making the right choices

Reach Frequency Reach * Frequency

A Quick Recap

Media Classes
Static Broadcast New Media

Media
As a vehicle As the medium As the message

An overview of how a media agency functions

The Agenda This Semester:

Roles within a media agency Media Basics Media Strategy TG Definition Market Prioritization Setting Media Weights Media Mix Decision Scheduling

Building a Media Plan

So what exactly is media planning??

A series of decisions

Which conclude with a strategy which will help a brand

Deliver its communication in the most efficient manner to the right set of audiences Using the most appropriate media options in the best possible manner

The Agenda This Semester:

Roles within a media agency Media Basics Media Strategy TG Definition Market Prioritization Setting Media Weights Media Mix Decision Scheduling

Building a Media Plan

ROLES WITHIN A MEDIA AGENCY

If everyone is moving forward together, then success takes care of itself

The following specialists form a team:

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Strategic Media Planners Implementation Planners Media Research Media Buyers Consolidation & Benchmarking Interactive Cell (Mobile, Internet etc) Out of Home (OOH) Can also be a separate agency by itself Activation (Events / Retail/ On-ground) Entertainment (Program syndication, Films) Monitoring Operations / Implementation Billing & Collections

The Agenda This Semester:

Roles within a media agency Media Basics Media Strategy TG Definition Market Prioritization Setting Media Weights Media Mix Decision Scheduling

Building a Media Plan

GRP TVR Frequency TRP Reach IRS TAM ADEX

MEDIA BASICS
A journey of a thousand miles must being with a single step Lao Tzu

Reach
% of people exposed to a particular vehicle at least once in the period under consideration Unduplicated Measure Eg. Times of India Reach in Mumbai 45% Mid-Day (Mumbai) 25% Reach in Mumbai?

Remember: Reach is unduplicated P(A U B) is P(A)+P(B) P(A B) Combined Reach will not be a straight mathematical addition of 45% + 25% We need to discount all people who read both Times of India as well as MidDay (to use a media term: the duplicated audience) Easier to understand with Set theory: TOI (45%) Duplication (10%)

Mid-Day (25%)

Reach in Mumbai is therefore 60%

Duplication with those who read both

Remember: Reach is unduplicated P(A)+P(B)+P(C)-P(AB)-P(AC)-P(BC)+P(AB C) Lets take it a step further. Lets add one more publication (Economic Times)

TOI (45%)

Duplication (10%)
Duplication (2%)

Mid-Day (25%)

Duplication (1%)

ET (10%)

Reach in Mumbai is therefore 67%

Cumulative Reach
Reach accumulates across media vehicles or a 80 period of time or across different issues of the Incremental Publications 70 same vehicle 60 Cumulates quickly in the initial stages but the 50 build-up starts plateauing once we have already nd 2 Publication reached the heavy & medium users 40 Market Leader This 30 means we need to start adding light users to build reach 20 Not an impossible task but an extremely 10 expensive one
0 90

Frequency Distribution
In a campaign the ad. is exposed a number of times
Which results in the reach build up

However all people in the audience are not exposed uniformly Most likely that heavy viewers see the ad. more often while light viewers might not see it at all This spread is called frequency distribution

Frequency Distribution
Frequency f=0 f=1 f=2 f=3 f=4 f=5 f=6 f=7 f=8 f=9 f=10 No. Of People who saw the ad. 26 19 14 12 9 7 4 4 3 1 1

Of the 100 People who form the audience 26 have not seen the campaign (f=0) They are said to have not been reached by the campaign Reach of this campaign would be 74% (f1-f10)

Discreet & Cum. Distribution

No. of people who saw the ad exactly once, twice, thrice etc. (Discreet Reach) Adding up the people who saw the ad atleast once, twice, thrice or more (Reach thus obtained is designated as 1+ Reach) If we leave out people who saw the ad. exactly once and plot everyone else it would be 2+ Reach Difference between discrete and cum distribution is:
Seeing the ad. exactly a certain no. of times (Discreet) Atleast a certain number of times (Cum distribution)

18

16
16 14 12 10 8 6 6 5 4 3 3 9 8 % Reach 13 11

4
2 0 1 2 3 4 5 6 7

10+ 90

= 1+ = 78% -(1)=2+= 62% -(1)-(2)=3+= 49%

80 70 60

78

62 49

50 40

40 29

% Reach 23 18 14 11 8

30 20

10
0 1+ 2+ 3+ 4+ 5+ 6+ 7+ 8+ 9+

10+

Average OTS (Opportunity To See)

Average number of exposures amongst those who have been reached A derived number hence can be in decimals Calculated as the weighted average of the frequency distribution

Freque ncy f=0 f=1 f=2 f=3 f=4 f=5 f=6 f=7 f=8 f=9 f=10

No. Of People who saw the ad. 26 19 14 12 9 7 4 4 3 1 1

Average OTS = (1*19)+(2*14)+(3*12)+(4*9)+(5*7)+(6*4)+(7*4)+(8*3)+(9*1)+(10*1) 19+14+12+9+7+4+4+3+1+1 = 3.36

Effective Frequency / Reach

Effective Frequency = The minimum no. of times the TA needs to be exposed to our communication to have the desired effect Assume that minimum no. is 4 times (Various studies have thrown different results as ideal) We would then look at reach only at 4+ (discarding people who have viewed the communication less than 4 times) thus arriving at Effective Reach

20 18 16 14 12 10 8 6 4 2 0

19

15 14 12

% Reach
8 7 6 4 3 3

8 50 45 40 35 30 25 20 15 10 5 0

10+ 45

31

24
18 14

% Reach

11 8

1+

2+

3+

4+

5+

6+

7+

8+

9+

10+

So what is the ideal effective frequency??

Extensive research carried out in the area
Herbert Krugman Erwin Ephron Gerard Tellis

One do it yourself method is the FCB Power Grid

Based on various input parameters
Rankings on marketing, message (creative) and media Overlays inputs on the FCB Grid (High-Low Involvement & Emotion/Rational Product)

So what is the ideal effective frequency??

Factor Marketing Factors The brand is Brand Dominance Brand Loyalty Purchase Cycle Usage Cycle Competitive SOV TG Learns FCB Power Grid Low Frequency 1 2 3 4 5 6 7 High Frequency Established Very Dominant High Long Long Low Fast 1 1 1 New Small Share Low 1 Short 1 Short High Slowly

1 1

Message Factors Message Complexity Simple 1 Complex ((1*9)+(2*2)+(3*2)+(4*1)+(5*0)+(6*1)+(7*5))/SUM(9+2+2+0+1+1+5) Message is Unique 1 Me too Campaign is Continuing 1 New Wearout of commercial Low 1 High Commercials are Long 1 Short Media Factors Clutter Levels Environment to message Attentiveness of audience Plan is No. of media used Promotional Support FCB Grid Position Product is Product is Minimum Frequency

Low Close match Involving Continuous Many High

1 1 1 1

1 High No Match 1 Not involving Pulsed One Low

High involvement Emotional 3.2

Low involvement 1 Rational

9 2 2 1 0 1 5

TV METRICS

From Diary to Peoplemeter

Diary
A panel would be given a diary with qtr. hour time-slots across rows and channels across columns Drawback not recorded but reported behaviour Telescope effect 1 Shot fill for the wk.
Big Shows got bigger, small ones got smaller

Replaced by Peoplemeters in 1996

2 Units
Channel Monitoring device (attached to the TV set) Remote to register viewer details

Remote has buttons for each member of the family Data collected is mapped to channel telecast frequency

Currently 2 reporting systems in India: TAM & AMAP

TAM: 7305 Sample Homes
2440 in the 8 Metros

Video

TRP/TVR
The move from Diary to Peoplemeter also changed TRPs to TVRs TRP= % of the audience who viewed a certain programme or time-slot
Simple headcount

TVR=Weighted Number which takes Reach & Time-spent into account

TVR
Viewer Viewing Start Time Viewing End Time Total Time 8:30 8:40 10 M3 8:46 8:50 5 M5 8:30 8:35 6 M6 8:33 8:58 24 M9 M1/M2/M4/M7/M8/M10

TRP = 4/10*100= 40

TVR=(10/30 + 5/30 + 6/30 + 24/30) X100

10 =15

TVR
Better viewing metric however creates some unique situations
2 shows both rating the same can have very different viewing patterns Eg. A daily soap may be pulling in a fairly loyal audience which watches almost the entire show (albeit on a smaller base)
Alternatively a non-fiction format (like KBC) may have a far larger number of people sampling it for lesser time

Taking it a step further this would mean the soap is a great device for brands which need to build frequency
The non-fiction show is a better bet for communication which needs to build higher reach than frequency

Classical Media Conundrum: Reach Or Frequency

Program Reach & TS (Time-Spent) On the People-meter System

Reach = A viewer who watched atleast 1 minute of the program TS = Number of minutes the viewer saw the program
2 Ways to look at TS
As an average of the total time spent by the universe
(10+5+6+24=45)/10

Per Viewer
45/4=11.25 Minutes

Ad. Viewership
Viewership is collected at seconds level
However reported data at the minute level

Viewership gets attributed to the minute

If you were changing channels in the minute under consideration the entire viewership of the minute get attributed to the channel viewed for the maximum seconds in that minute
Viewing behaviour of Mr. M between 10:45-10:46 10:45:00-10:45:12 12 Seconds 10:45:13-10:45:25 13 Seconds 10:45:26-10:45:45 20 Seconds 10:45:46-10:46:00 15 Seconds

ETC Channel V NDTV Imagine Colors

Mr. Ms viewership attributed to NDTV Imagine in that minute

Ad. Viewership (Contd)

Ad. Viewership too gets reported at the minute level In the case of Mr. M he could have watched a 15 sec. commercial on Colors however his viewership on that will not be counted This is an anomaly which we need to be aware of.
Assumption is that such anomalies balance out over the larger base

BENCHMARKING METRICS

Share
Competitive benchmarking to understand relative strengths Can be looked at in multiple ways
Publications Vs. Competitors in a market Channels wkly GRPs Vs. Competition Share of Total viewership in a TB (Channel Share) 10:00-10:30 PM Mon-Fri TVR % Channel Share Zee 4.5 20 Star Plus Colors 6.7 7.2 30 32 Sony Imagine 1.7 2.1 8 9 Total 22.2 100

There might be situations where the share is extremely high on a smaller base. Easy to get mis-guided Base

Profile
Spread of audiences across different demographic classes (Age, SEC, Gender, CS/NCS/Analog/Digital, Markets) Helps understand the nature and quality of audiences
Base

Viewer Base % SEC A % SEC B S SEC CDE

ZeeTV Discovery T&L 35Mn 10Mn 7 36 12 40 81 24

PLAN METRICS

GRPs (Gross Rating Points)

Duplicated Reach Reach * Frequency Plan TVRs
Which means GRPs can be garnered by
1) Reaching more people 2) More exposures to the same base

Reach = indicator of % of TG exposed to our communication

GRPs = Sense of the total level of exposure or Weight of the communication

SOVs (Share of Voice)

Gives a sense of media weights in a competitive context Share of GRPs for a brand within a particular product category Base is the category GRPs
Brand Colgate Pepsodent Close-Up Anchor Dabur Category GRPs 9000 7000 5000 5000 2000 28000 % SOV 32 25 18 18 7 100

PRINT METRICS

Circulation
Average number of copies of a publication that are sold
Distinct from Print Order

Reported by ABC in India 65000 Publications in the country

Less than 400 reported by ABC

ABC: Unbiased 3rd Party

Reported every 6 months Broken up by towns, districts & states Editionwise Weekdays & Weekends

AIR (Average Issue Readership)

People who have read/looked at the publication in the timespan equal to the periodicity of the publication Question asked is:
Did you read the Times Of India yesterday? Did you read India Today in the last week?

Masthead method is used (IRS)

Total or Claimed Readers

Not loyal readers of the publication but have consumed it in the past
Have you read Times Of India in the past 6 months?

Lower the gap between TR & AIR; more loyal the readership base of the publication
TOI Vs. Mid-Day

Sole Or Solus Readers

They read only 1 particular publication in that frequency Most dedicated and loyal readers of a publication

To Summarize
Reach
People (Unduplicated) exposed to the vehicle/Ad. atleast once

Cum. Reach
Buildup of reach across publications/time-periods etc

Frequency Distribution
Spread of ads. viewed

AOTS
Average number of exposures of a plan/campaign Weighted Average of the frequency distribution

Effective Frequency
Minimum number of times the TG needs to see our communication

Peoplemeter is recorded viewing vis--vis diary which is reported viewing TVR takes Reach and TS into account

To Summarize (Contd)
Viewership data is captured at seconds level & reported at a minute level Profile is the spread of audiences across different demographic classes Share is a measure of competitive strength GRP is duplicated reach, which gives a sense of weight of exposures GRP is sum of TVRs or Reach X AOTS Circulation is the No. of copies sold not printed AIR is people who have read or looked at the publication in the periodicity of the publication Sole Readers are those who read only that publication in that frequency TR / Claimed readers are those who are not AIR but have read the publication in the past

The Agenda This Semester:

Roles within a media agency Media Basics Media Strategy TG Definition Market Prioritization Setting Media Weights Media Mix Decision Scheduling

Building a Media Plan

MEDIA STRATEGY
Change is not a destination, just as hope is not a strategy Rudy Giuliani

Need for a strategy

Its a roadmap that helps establish parameters & ground rules
Our plans & buys are judged basis these

We always have finite resources

With unlimited resources we would reach all people, across all markets, via presence across media, through the year with the heaviest media weights !!

A media strategy is therefore defined as:

A series of compromises we are willing to make in order to achieve the desired objectives within the given (finite) budget

Start at the end !!

Critical to set the context Does not exist in isolation
Always in the context of a larger advertising or communication objective

Communication task is governed by the marketing task/objective for the brand

Based on defining the business problem and the attendant market analysis

Business Problem

This is the starting point. Creative Strategy Problems of a diverse nature: 1. Brand How USP to gain share 2. Brand How Positioning to arrest share loss 3. Copy Theme Deliver higher profits etc. 4. Specific objective of each Ad. 5. Creative Units

Market Analysis

Marketing Plan

Communication Plan

Addressing Basis for Strategy & Plan Marketing Issues 1. of Marketing Objectives 1. Composition the market Segments 2. Target Consumer, Markets 2. Past performanceVolume, Value, Profits 3. Pricing & Distribution Strategy 3. Distribution Network, strenghts 4. Role of A&P 4. Role of advertising 5. Competitive mapping 6. Consumer mapping

Media Strategy

Impact of the Marketing task and Communication Goals

Product Sales Introduction

Growth

Maturity

Decline

At Launch: Key tasks for the brand: 1) Establish & increase presence 2) Facilitate trials Advertising has the following tasks: 1) Make consumers familiar with the brand (Reach * Frequency) 2) Make the brand visible to trade (Frequency) 3) Activities which allow consumers to touch-feel the brand (Activation) 4) In cases where the product concept is new an educative approach is use (Frequency) For Test Markets Media isolataibility can be a major factor in deciding test and control markets

Impact of the Marketing task and Communication Goals

Product Sales Introduction

Growth

Maturity

Decline

Growth Stage: Key tasks for the brand: 1) Increase penetration (by inducting new users into category) 2) Grow Volumes (by increasing brand usage) 3) Increase distribution coverage Advertising has the following tasks: 1) To increase penetration Focus media activity on nonusers and make plans reach intensive 2) To grow volumes Media activity should focus on frequency

Impact of the Marketing task and Communication Goals

Product Sales Introduction

Growth

Maturity

Decline

Mature Market:

Key tasks for the brand: 1) Retain share

Advertising has the following tasks: 1) Reinforce the brand choice that consumers make 2) Focus on current users and maintain SOV Levels

Case Study
Brand: Clinic Plus Marketing Objective: Maintain Share at X% (Current levels) Problem: Share in the South has been affected due to launch of sachets by Chick Shampoo Communication Task: Run Theme communication across the country. In the South supplement theme communication with Sachet communication
Media Input Analysis shows Sachet used more by lower SECs and smaller towns - no month end/beginning purchase cycle skew In these areas householder (person in the HH who makes decisions about FMCG purchases is Male) Direct Impact on media mix: Afternoon TB (used normally for F SEC AB) will need to be replaced by programs in night time slots targeting males Scheduling moves from 1st & last Wk. to across the month in the South

Situation Analysis
Consumer Product

Media

Characteristics of media usage by the TG Product Consumption Info.

Usage of media by brand in the past/ Usage of media by competitors in the category

Product Usage
Consumer Product

Retail Off-take Data

Can be used for: Database of retail purchases (Obtained by auditing 1) Market share analysis a large number and type of retail stores) 2) Market contribution Brand 3) Growth & and Category Sales data 4) Prioritization Data Splits available at the following levels: Cannot: India 1) Provide insights Urban into consumer motivation

Rural Town-Class Type of outlet etc.

Product Usage
Consumer Product

Household Panel Data

Can used for: basis be Weekly

Category & trials Brand 1) Tracking product

2) Conversions 3) Retension

Consumption is tracked

Continuous study Which also makes it very expensive

4) Awareness
5) Preference 6) Gain-Loss analysis etc

Product Usage
Consumer Product

Brand Tracks
Similar to HH Panels Rolling data Focus on:
Brand & Ad. awareness Preference Attitudinal statements Tracking brand attributes in the consumers mind Brand equity etc.

Product Usage
Consumer Product

Product Linkage Data

Part of the Indian Readership Survey (IRS) Captures
Penetration Frequency/intensity of usage/consumption

Since IRS already has demographic & lifestyle data possible to cross tab data to create detailed user profiles Useful to define brand TGs

Product Usage
Consumer

Media

Syndicated databases like IRS, RAM & TAM

Help in understanding the consumers interaction with media

Kind of analysis possible:

Media exposure levels Usage intensity (HML) TS Share of viewing Top publications / channels Day part analysis etc

Product Usage

Product

Analysis of how the brand & the category have used media in the past
Media Possible since TAM (Adex) monitors activity across TV, Print & 9 Cities for Radio Share of spends, time, space etc. SOV Growth in spends & GRPs Ad. duration Size, Color Media Vehicle selection strategy Market skews Reach AOTS Plan deliveries Scheduling strategies Trend analysis etc.

Looks at the following data points & more:

BUILDING BLOCKS OF A MEDIA STRATEGY

5 Pillars
TG Group Definition (WHO?)

Scheduling (WHEN?)

Media Strategy

Market Priritization (WHERE?)

Media Mix (WHAT?)

Media Weights (HOW MUCH?)

QUIZ TIME

Calculate the Show Rating

(30 Min. Show)
Viewer Universe X1 X6 X8 X10 X2,X3,X4,X5,X7,X9 TS 10 15 25 20 -

GRPs
GRPs Show1 Show2 Show3 Show4 TVR 1.2 0.5 2.1 5.2 Spots 3 2 3 3 GRPs

GRPs = Reach X Frequency

350 GRPs & 7.0 Avg. Frequency = ? Reach

80% Reach & 5 Avg. Frequency= ? GRPs