Media Strategies:

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Media Strategies
Television Bureau of Advertising
An Advanced Discussion
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The Media Pie
- Erwin Ephron for TVB
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Theres never enough money to advertise

• at effective weight

• to all of the country

• for most of the year

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That problem defines your job as a media planner.
Allocation.
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Spending a limited resource for greatest total
effect.
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Think of the media budget as . . .
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A beautiful pie . . .
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And media planning as . . .
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Dividing-up the pie . . .
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The pieces are. . .
GEOGRAPHY
WEIGHT
WEEKS
TARGETING
CPM
UNIT SIZE
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The size of the portions determines the media
plan.
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And the size of each slice will determine the
size of other slices.
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THE MEDIA PIE
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1. WEIGHT LEVELS
TRPs, reach and frequency
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Research shows each Rating point added produces
less response than the one before.
Source Adworks 2, A major study by MMA, IRI and
Nielsen Media Research which examined 800
packaged goods brands.
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This argues for moderate weekly GRP weight and
more continuous advertising.
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Scanner sales data paints a similar picture.
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It shows reach is cost-effective, while
repetition (short-interval frequency) is not.
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Probably because when people are in the market a
single message can influence brand choice.
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And when theyre not in the market many
messages will have little effect.
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This is called Recency Planning.
It is a skimming strategy.
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Since purchases are made continuously,
but we usually dont know who is ready to
purchase . . .
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The idea is to talk to as many target consumers
as possible
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Over as many weeks as possible
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PRINCIPLE
Today its reach and continuity, not reach
and frequency in media planning.
Use moderate weekly TRPs.
Approximately 50 TRPs are the recommended
minimum.
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2. TARGETING
Demographics, user, usage
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Its easy to over-estimate how much
demography is worth to a brand.
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Example
The target group is Women 18-49. It has a
purchase index of 115.
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(It cant index much higher because thats 63
of all women.)
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A smaller target, like Women18-34 in
5 households, might index higher. . .
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But it would not account for enough of a mass
brands sales to be useful as a target.
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That is the TV targeting paradox.
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Small targets dont concentrate enough sales.
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But large targets dont concentrate sales enough.
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The reason is most TV brand demo-profiles are
relatively flat.
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PRICING
In theory, demo- targeting cuts waste by buying
more prospects per-dollar.
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Heres how its supposed to work
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Prime time Men 18 cost 30 a thousand.
30
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A brand targeting M 25-54 buys Package A because
it has a higher M 25-54 comp.
Package A
Average M 25-54
30
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and gets more younger men per-dollar because
it has targeted.
Package A
Average M 25-54
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The targeting dividend
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But when sellers price on Men 25-54 . . .
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45
30
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The targeting dividend goes to the seller.
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45
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The targeting dividend
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And thats what happens today.
Higher target comp does not produce lower target
CPMs.
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MEN 25-54
FOX WB NBC ABC CBS
Comp 76 71 56 50 52
CPM 63.24 65.67 53.82 50.04 51.14
Sources Nielsen NTI, Total Viewing Source Report
andHH and Persons Cost Per Thousand Report,
February 2003
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Which shows targeting doesnt work the way its
supposed to.
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Another problem.
Reach, a primary goal, and targeting conflict.
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Reach is bought with dispersion.
Targeting requires concentration.
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That said, there are still targeting
approaches which have great energy.
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Recency, receptivity and geography are all
powerful targeting tools.
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PRINCIPLE
Look well beyond demography to target potential
purchasers.
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3. CPM VALUE
Reach, environment, attention
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This is the twilight zone of media planning.
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Clearly there has been a move to cheaper
media. In TV this has meant lower ratings and
cable.
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But as we gain in cost efficiency are we
losing value?
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Agency research shows that viewing duration
(which favors higher ratings) predicts attentivene
ss.
Sources Proprietary agency research
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Similarly, Print data shows that readers of lower
CPM titles see fewer ads.
Sources Ephron, Erwin, "Counting Calories On
the Need to Adjust Print Readership Data,"
Worldwide Readership Research Symposium, Venice,
2001.
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PRINCIPLE
Lower CPMs usually represent lower value.
Buying a mix of dayparts is the best approach.
TVB provides a PowerPoint presentation called
Value of Local Daypart Mix. Contact
info_at_tvb.org to arrange a preview.
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4. UNIT SIZE
30- or 15-second messages
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Choice of unit is a creative decision, forced by
pricing and budget..
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15s comprise close to one-third of national
TV weight.
But, theres a paradox.
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Research usually finds shorter units are
more recall effective.
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(Two 15s provide greater total communication
than one 30.)
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But sales tracking shows 15-second
commercials are less sales effective.
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The conflict may be in the way we use 15s in our
plans.
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Even if two 15s are worth more than a 30...
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Even if two 15s are worth more than a 30... one
15 is still worth less.
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PRINCIPLE
Dont plan 15s to make a budget appear
bigger than it is.
That does not help a campaign.
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5. WEEKS
Scheduling and weight
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Research shows increasing marginal returns as
weeks are added to a schedule
Source Adworks 2
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This suggests theoverwhelming value
ofcontinuous advertising formost brands.
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Recency also supports more weeks of advertising.
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The recency goal is to intercept weekly
saleswith a brand message.
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In recency planning,lower weekly reach goals
and more weeks are the most cost-effective.
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But a 30 weekly reach (50 TRPs) seems to be
thepractical minimum.
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Because the effects of less weight often cant
be read in the market...
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which means you dont know if the campaign is
working.
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PRINCIPLE
A moderate weeklyreach goal results in a better
performingschedule.
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It intercepts morepurchases, because itallows
more weeks ofadvertising.
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6. GEOGRAPHY
National, spot or some combination.
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Before we look atGeography, lets review whats
happened to the media planning pie.
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(No Transcript)
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1.WEIGHT
Should be moderate to generate more weekly reach.
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2. TARGETING
No longer provides substantial cost-savings.
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3. CPMS
Requires a mix of day parts.
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4. UNIT SIZE
Are often reduced to to help stabilize CPMs.
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5. WEEKS
Have become highest priority in planning.
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Both weeks and weeklyreach are key
recencyplanning goals.
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But most brands cantafford both when costs are
increasing fasterthan budgets.
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The remaining option is to target
Geography. And that brings us to spot planning.
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6. GEOGRAPHY
Targeting with spot
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Every brand hasgeographic areas ofopportunity.
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These are spot marketswhere advertising ismost
likely to producesales.
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They can be identifiedby BDI, CDI, brand
share,growth or absolutevolume.
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Lets begin with the mostfamiliar measure, BDI,
the markets per-capita indexof brand purchase.
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BDI is calculated bydividing a DMAs share of
brand sales by its share of US population.
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A market like Dallas,containing 3 of a brands
sales and 2 ofthe population wouldhave a BDI
of 150.
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For most brands, markets comprising a third of
theUS, will have a BDI index of 130 or higher.
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This is far greaterselectivity than
demosprovide.
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The following maps illustrate

• In Red The portion (best 1/3) of the US
• that generates the highest BDI or CDI.
• In the text box A comparison of that
• BDI/CDI to the best age demo index.

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Pasta Sauce
Best 1/3 of U.S. 135 Best Age Demo 112
Source IRI Infoscan special tabulation/MRI
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Chevy Blazer
Best 1/3 of U.S. 156 Best Demo 122
Source Polk Special tabulation/MRI
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Financial Planning
Best 1/3 of U.S. 140 Best Age Demo 114
Source MRI Special tabulation
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Barbecue Sauce
Best 1/3 of U.S. 133 Best Age Demo 106
Source IRI Infoscan special tabulation/MRI
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And theres a bonus.
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Since geographyand demographyarent linked,
thebenefits are cumulative.
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A brand with a BDI of 115 for Men 18-49 and 130
forBoston...
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Will index at 150 among Men 18-49 living in
Boston(1.15 x 1.30).
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But BDI spot is one dimensional.
A brand, depending on itscircumstances, should
consider targeting...
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• Category sales (CDI)

• Competitive vigor (share)
• Brand growth ( change)
• Brand volume (dollars)
• Alone, or in combination.

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There is evidence that spot should also focus on
high Share and Growth markets.
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And that it should be used to add weeks, not
weight.
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This is a far more advanced approach to Media
planning.
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DMA market-value data for planning spot are
widely available.
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• IRI or AC Nielsen Brand Track
• for packaged goods

• Polk for automobiles
• IMS for Rx drugs
• And MRI special tabs for awide range of products
  andservices.

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TVB can help you locate the data.
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PRINCIPLE
Spot should be used in high potential markets and
be planned to add weeks, not weight.
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Conclusion
Geography is the missing planning strategy for
many TV brands.
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• TVB offers Advertisers and Agencies (planners or
  buyers) a full range of
• information
• about Local
• Television

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• The Resource Channel on the TVB web site was
  created for advertisers and agencies.
• We invite you to browse and learn more about

• Planning and Buying Spot Television
• Local Broadcast TV vs. Other Media
• EDI Enabling the Business Process

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Thank You.See you on the TVB web site
www.tvb.org
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A note for presenter

• Media Planning was created for the
  Advertiser/Agency Resource Channel on the TVB
  web site. For more on planning and buying Spot
  and additional presentations such as Comparative
  Values in Local Television and Alternate
  Delivery Systems, please visit the Channel or
  contact TVB.

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Thank you