Title: Media Strategy
1Media Strategy
2Media Strategy
- Which media should we be in?
- What is the minimum effective frequency?
- How should one allocate advertising spend over
time? - Which media vehicle(s) should we use?
3Media Strategy
- Which media should we be in?
- Current practice
- Compare the characteristics of each medium with
the characteristics necessary for achieving the
desired communication objective(s) - For example, if brand recognition is the key
awareness objective then the medium must have a
visual component. Thus radio is unsuitable and
newspapers have a limited scope - For generating recall awareness, we need high
frequency and, thus, magazines may not be
suitable as they cannot deliver the requisite
frequency
4Media Strategy
- The current approach only looks at traditional
media - Integrated marketing communications seeks to
integrate across all contacts - Focus is on generic characteristics of media and
their relevance for meeting the needs of the
creative approachinward looking - Need an approach that takes into consideration
the preferences of the customer
5Media Strategy
- Phase 1
- Conceptualize exposure broadly as customer
contact - Identify a wide and potentially important set of
contacts
6Beer Market in France
Media Strategy
Source Integration (1998)
7Media Strategy
- Phase 2
- Value potential contacts from the customers
perspective - Three key concepts
- Attractiveness
- Informativeness
- Credibility
- Contact value from the customer perspective
creates a common customer impact metric across
all brand contacts - CPM is an input metric limited only to mass
media. CCV (cost per contact value) is an output
metric common across all brand contacts
8Beer Market in France
Media Strategy
1st Quartile
2nd Quartile
Source Integration (1998)
9Media Strategy
- Phase 3
- Assess how strongly the different brands in the
category are associated with each contact
10Media Strategy
High Contact Value
Battlefield Contacts
Leadership Contacts
Maximize Appropriation
Dominate Or Defend
High Association with Category
Low Association with Category
Ubiquity Contacts
Potential Contacts
Disinvest
Invest In Future Gains
Low Contact Value
Source Integration (1998)
11Media Strategy
- Phase 4
- Select contacts within each category on the basis
of fit with brand position
The medium is the message. Marshall McLuhan
12Media Strategy
- PG has implemented such a system globally
- Faced a budget cut of 20
- Review of contacts revealed
- Weakness of TV
- Packaging not effective
- Underutilizing recommendation by professionals
- Improved packaging
- Shifted resources to recommendation by
professionals - Reduced TV spend
- Increased volume by 10 in mature category with a
reduced marketing communications budget
13Media Strategy
Reach
Budget
Number of cycles
Frequency
14Media Strategy
- Minimum effective frequency
- Time frame
- Threshold
15Media Strategy
16Media Strategy
- What are the determinants of MEF?
- Communication objective
- Target audience
- Competitive position
- Vehicle power
- Power of creative
17Media Strategy
- Different ways of determining MEF
- Rules of thumb
- Adjustments for various factors based on prior
experience
18Media Strategy
- Different ways of determining MEF
- Rules of thumb
- Adjustments for various factors based on prior
experience - Share of market/share of voice analysis
19Media Strategy
20Media Strategy
Source www.news-record.com/advertising/advertisin
g/ratio.html
21Media Strategy
Share of Voice Premium Needed by a Follower
Brand to Maintain Market Share
Source Jones (1990)
22Media Strategy
Large Brands (gt15 Share)
Degree of Underinvestment ()
Objective
Source Jones (1990)
23Media Strategy
Implications for Ad Spending
24Media Strategy
- Different ways of determining MEF
- Rules of thumb
- Adjustments for various factors based on prior
experience - Share of market/share of voice analysis
- Analysis of historic data
- Market experiment
25Media Strategy
Relationship Between Awareness and GRP
26Media Strategy
- How to allocate advertising spend over time?
- New products
- Blitz
- Wedge
27Media Strategy
EXAMPLE LAUNCH OF SOAP BRAND
TV GRPs
SHARE OF VOICE
Source Ogilvy and Mather
TIME
28Media Strategy
Recent Launches
Source Ogilvy and Mather
29Media Strategy
Competitive Activity
Source Ogilvy and Mather
30Media Strategy
- How to allocate advertising spend over time?
- New products
- Blitz
- Wedge
- Reverse wedge
- Existing products
- Regular fmcg
- Long purchase cycle, long decision time
- Long purchase cycle, short decision time
31Media Strategy
- Budget allocation
- Short term adjustments
- Need to look at MEF in a dynamic way
32Media Strategy
33Media Strategy
- Repetition and wearout
- How to decide when to refresh the campaign?
- Zapping data
- Market experiments
34Media Strategy
Probability of Zapping
Number of Exposures
Source Siddarth and Chattopadhyay (1998)
35Media Strategy
- Which media vehicle(s) should we use?
Source Assael and Poltrack (1991)
36Media Strategy
Source Assael and Cannon (1979)
37Media Strategy
- Are there qualitative media factors that affect
vehicle selection? - Editorial content
38Media Strategy
- Are there qualitative media factors that affect
MEF? - Editorial content
- Involvement
39Media Strategy
- Are there qualitative media factors that affect
MEF? - Editorial content
- Involvement
- Mood
40Media Strategy
- Are there qualitative media factors that affect
MEF? - Editorial content
- Involvement
- Mood
- Theme
Source Goodstein and Kalra (2000)
41Media Strategy
- Are there qualitative media factors that affect
MEF? - Editorial content
- Immediacy of need
42Media Strategy
Source Kent and Allen (1994)
43Media Strategy
- Are there qualitative media factors that affect
MEF? - Editorial content
- Immediacy of need
- Level of clutter
- Position within medium
44Media Strategy
45Media Strategy Summary
- Use consumer response to media as criteria to
select the media to be used - MEF should be determined from consumer data
rather than gut feel - Need to achieve a critical duration of spending
- Use direct matching to select specific
vehiclesconsumer driven - Consider qualitative aspects of vehicles from a
consumer perspective