M2 UNIVERSAL

CASE PRESENTATION

GROUP 4
STUTI DAVE SANSKRITI SHEKHAR KULKARNI KUNAL JAIN
 Case Facts
Protagonist of the Case –
Peter Vaz – VP Communications

Current Year – Jun 2008

Recently received an advertisement assignment

from Telco Communication worth $1.5 million
(established telecom conglomerate)

Plan its digital media spending strategy for the

upcoming quarter

Peter Vax wants to build a Optimum Digital Media

Spend (ODMS) model
 Inter Public Group
• Global Leader in Adv & Mrkt Services
• 130+ Countries

ABOUT THE Mac Laren McCann Inc

COMPANY • Parent Company
• Integrated communications company
• Canada based

M2 Universal Communication

$ 500 Million worth company providing media planning, buying and

research services for many of Canada’s leading advertisers
 DIGITAL MEDIA SHIFT
• Dramatic development in the way advertising was being distributed in
the recent times
• Shift towards Digital Media platforms – Websites, Social Media, Search
Engines, Mobiles & Gaming
• Traditional methods such as radio, newspapers, TVs, magazines have
shown decline in audience reach
• 25% increase in online Canadian users in the last 3 years
• More than 72% Canadian now online
• Digital online advertising expenditures continued to rise and were expected to
reach $3.3 billion dollars by 2011
 DIGITAL MEDIA SPEND PROBLEM

Peter Vaz wanted to build a ODMS Model with the following parameters

Brand Audience Frequency Competitive Cost per 1000

Consideration Reach Consideration

MINIMIZE THE EXPENDITURE AND MAXIMIZE THE EFFECTIVENESS

OF THE ADVERTISEMENT CAMPAIGN
 OBJECTIVE
Decide appropriate Frequency Levels for achieving the desired effectiveness of
Telco’s Digital Media Portfolio

CONSTRAINT
TOTAL BUDGET - $ 1.5 MILLION
FREQUENCY – BETWEEN 3 TO 6
 PARAMETERS
 Cost per Thousand  A blended cost per thousand for each of the digital platforms considered for the campaign.

 Penetration for the various digital platforms considered for the target. This gives an
 Audience Reach
indication of which platforms have a higher reach in comparison to others.

 A score of 1-10 that takes into account the importance of each of the platforms for the
Brand Consideration brand. For example, if websites are the key driver in a decision-making process for the
purchase of a brand, websites would get a higher score.

 A score of 1-10 provided to each platform, based on the level of competitive activity
 Competitive Consideration
within that platform.

 The total number of exposures to a schedule of advertisements (not a measure of the

 Impressions Planned
number of different people exposed to a commercial).

 The average number of times the audience reached by an advertising schedule is exposed
 Frequency to a commercial.
 Frequency = Impressions Planned / Audience Reach

 Total Cost  Impressions Planned × Cost per thousand

 DATA
BRAND COMPETITIVE
COST AUDIENCE CONSIDERATION CONSIDERATION
PLATFORM PER THOUSAND REACH (000s) (1-10) (1-10)

WEBSITES $12 8,333 9 8

MOBILE $18 2,523 3 2

GAMING $20 1,262 4 2

SOCIAL $10 8,832 6 5

MEDIA

VIDEO $15 6,309 7 5

SEARCH $2 11,986 10 9
ISSUES TO CONSIDER - 1

Should we include Competitive consideration or while

deciding the Budget??

Trade Off between – High Brand awareness and First

Mover Advantage
ISSUES TO CONSIDER - 2

Should we have same Frequency for all Platforms of

different for different Platforms
ISSUES TO CONSIDER - 3

Is it practical to include Brand Consideration and

Competitive consideration for analysis?
THANK YOU