Media Planning and Analysis

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Chapter Thirteen
Planning for and Analyzing Advertising Media
? 2007 Thomson South-Western
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Chapter Thirteen Objectives

• Describe the major factors used in segmenting
  target audiences for media planning purposes.
• Explain the meaning of reach, frequency, gross
  rating points, target rating points, effective
  reach, and other media concepts.
• Discuss the logic of the three-exposure
  hypothesis and its role in media and vehicle
  selection.

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Chapter Thirteen Objectives

• Describe the use of the efficiency-index
  procedure for media selection.
• Distinguish the differences among three forms of
  advertising allocation continuous, pulsed, and
  flighted schedules.
• Explain the principle of recency, or shelf-space
  model, and implications for allocating
  advertising expenditures over time.

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Chapter Thirteen Objectives

• Perform cost-per-thousand calculations.
• Interpret the output from computerized media
  models.
• Review actual media plans.

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Media Versus Vehicles

• Media are the general communication methods that
  carry advertising messagestelevision, magazines,
  newspapers, and so on.
• Vehicles are the specific broadcast programs or
  print choices in which advertisements are placed.
• For example, television is the media, and
  American Idol is the vehicle.
• Each medium and vehicle has a unique set of
  characteristics and virtues.

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Messages and Media A Hand-In-Glove Reaction

• Advertisers are placing more emphasis than ever
  on media planning.
• The choice of media and vehicles can be the most
  complicated of marcom decisions.

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Selecting and Buying Media and Vehicles

• GM started a trend of consolidating its media
  planning and buying into one organization and
  others have followed the example.
• Creating effective messages is critical but it is
  just as essential that the messages are placed in
  the right media and vehicles.

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The Media-Planning Process

• Media planning
• The design of a strategy that shows how
• investments in advertising time and space will
  contribute to the achievement of
• marketing objectives.

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Model of the Media Planning Process
Marketing Strategy
Advertising Strategy

• Media Strategy
• Target Audience Selection
• Objective Specification
• Media and Vehicle
• Media Buying

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The Media-Planning Process
1. Selecting the target audience
2. Specifying media objectives
4. Buying media
3. Selecting media categories and vehicles
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Selecting the Target Audience

• Four major factors

(1) Buyographics
(2) Geographic
(3) Demographic
(4) Lifestyle/psychographics
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Specifying Media Objectives

• What proportion of the population should be
  reached with advertising message during specified
  period (reach)
• How frequently should audience be exposed to
  message during this period (frequency)
• How much total advertising is needed to
  accomplish reach and frequency objectives
  (weight)

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Specifying Media Objectives

• How should the advertising budget be allocated
  over time (continuity)
• How close to the time of purchase should the
  target audience be exposed to the advertising
  message (recency)
• What is the most economically justifiable way to
  accomplish objectives (cost)

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Reach

• Percentage of target audience that is
• exposed to an advertisement, at least
• once, during a certain time frame
• (usually four weeks)

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Reach

• Reach represents the percentage of target
  customers who have an opportunity to see the
  advertisers message.
• Other terms used by media planners to describe
  reach
• 1 (read one-plus)
• net coverage
• unduplicated audience
• cumulative audience ( or cume)

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Determinants of Reach

• More people are reached when a media schedule
  uses multiple media
• The number and diversity of media vehicles used
• By diversifying the day parts

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Frequency

• Average number of times, on average, during the
  media-planning period that members of the target
  audience are exposed to the media vehicles that
  carry a brands advertising message.

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Hypothetical Frequency Distribution for the
Esuvee Advertised in Sports Illustrated
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The Concept of Frequency Distribution

• In the hypothetical situation, 90 of the
  Esuvees target audience is reached by the
  advertising schedule and they are exposed an
  average of 2.2 times during the four-week
  advertising schedule in Sports Illustrated.

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Weight

• How much advertising volume is required to
  accomplish advertising objectives
• Three weight metrics
• Gross ratings
• Target ratings
• Effective ratings

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What Are Ratings?

• Ratings, in an advertising sense, simply mean the
  percentage of an audience that has an opportunity
  to see an advertisement placed in a particular
  vehicle.

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Weight Gross Rating Points

• Gross rating points, or GRPs, are
• an indicator of the amount of gross
• weight that a particular advertising
• schedule is capable of delivering
• GRPsReach(R) X Frequency(F)

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Determining GRPs in Practice

• GRPs are the sum of all vehicle ratings in a
  media schedule
• Rating proportion of the target audience
  presumed to be exposed to a single occurrence of
  an advertising vehicle in which the advertisers
  brand is advertised

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Determining GRPs in Practice
The Gross Ratings generated by a particular media
schedule simply equal the sum of the individual
ratings obtained across all vehicles included in
that schedule.
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Weight Target Rating Points (TRPs)

• Adjust a vehicles rating to reflect just those
  individuals who match the advertisers target
  audience

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The Concept of Effective Reach

• How often does the target audience have an
  opportunity to be exposed?
• Effective reach is based on the idea that an
  advertising schedule is effective only if it does
  not reach members of target audience too few or
  too many times

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How Many Exposures are Needed?

• Three-Exposure Hypothesis
• The minimum number of exposures
• needed for advertising to be effective
• is three.

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Effective Reach in Advertising Practice

• 3-10 exposures during a media-planning period
  (typically 4 weeks)
• Using multiple media
• Subjective factors must be considered

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Alternative Media Plans Based on a 12 million
Annual Budget and Four-week Media Analysis
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An Alternative Frequency Value Planning

• The objective is to select the media schedule
  that generates the most exposure value per GRP.

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An Alternative Frequency Value Planning

• Estimate the exposure utility for each level of
  vehicle exposure that a schedule produces.

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Frequency Value Planning (cont.)

• Estimate the frequency distribution of the
  various media schedules that are under
  consideration.
• Estimate the OTS value at each OTS level.
• Determine the total value across all OTS levels.
• Develop an index of exposure efficiency. Divide
  each schedules total value by the number of GRPs
  produced by that schedule.

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Frequency Distributions and Valuations of Two
Media Schedules
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Continuity

• How advertising is allocated during
• the course of an advertising
• campaign how should the media
• budget be distributed?

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Continuity

• Continuous advertising schedule an equal number
  of ad dollars are invested throughout the
  campaign

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• Pulsing some advertising is used during every
  period of the campaign, but the amount of
  advertising varies from period to period.

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• Flighting the advertiser varies expenditures
  throughout the campaign and allocates zero
  expenditures in some months.

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Recency Planning (a.k.a. The Shelf-Space Model)

• Consumers first exposure to an advertisement is
  the most powerful
• Advertisings primary role is to influence brand
  choice
• (2) Achieving a high level of weekly reach for a
  brand should be emphasized over acquiring heavy
  frequency

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Optimizing Weekly Reach

• Advertising teaches consumers

• Influence brand selection

• Messages are most effective when close to
• purchase time

• Cost-effectiveness of first exposure is greater
• than subsequent

• Allocate budget to reach consumers often

• Reach target audience continuously rather than
  sporadically

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Toward Reconciliation It Depends!

• It can be said that advertising achieves its
  objectives through chance encounters with ready
  consumers.
• What works best depends on the particular
  circumstances of the brand.

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Cost Considerations

• The cost of reaching 1,000 members of
• the target audience, excluding those
• people who fall outside the target market

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Cost considerations
Cost per Thousand (CPM) Target Market
(TM) CPM Cost of ad
of contacts (expressed in thousands) CPM-TM
Cost of ad
of TM contacts (expressed
in thousands)
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Use With Caution!

• Measures of cost efficiency, not of effectiveness
• Lack of comparability across media
• Misused unless vehicles within a particular
  medium are compared on the same basis

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Tradeoffs

• Tradeoff must be made because media planners
  operate under the constraint of a fixed
  advertising budget

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Media Planning Software

• 1. User develops a media database
• 2. User selects criterion for schedule
  optimization
• 3. User specifies constraints
• 4. User seeks out the optimum media schedule

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Media Database For the Esuvee June, 2006
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ADplus Magazine Schedule for the Esuvee
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Diet Dr. Pepper Campaign

• Campaign Target and Objectives
• To increase Diet Dr. Pepper sales by 4 and
  improve its growth rate to at least 1.5 times
  that of the diet soft-drink category.
• To heighten consumersevaluations of the key
  product benefit and image factors that influence
  brand choice in this category.
• To enhance those key brand-personality dimensions
  that differentiate Diet Dr. Pepper from other
  diet drinks.

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Diet Dr. Pepper Campaign

• Creative Strategy
• Position the brand as tasting more like regular
  Dr. Pepper.

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Media Strategy

• Media plan for
• Diet Dr. Pepper

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Media Plan for Diet Dr. Pepper

• Media plan for
• Diet Dr. Pepper
• (page 2)

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Saab 9-5

• In the late 1990s, Saab introduced a new luxury
  sedan the Saab 9-5
• Saab had done little to expand its brand image in
  U.S.
• Historically it attracted younger customers, but
  needed the luxury sedan to appeal to families and
  older customers

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Saab 9-5

• A mass-market advertising campaign was undertaken
  with the following objectives
• Generate excitement for new 9-5 model line
• Increase overall awareness for Saab name
• Encourage customers to visit dealers and
  test-drive
• Retail 11,000 units of 9-5 during introductory
  year

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Saab 9-5 Media Plan- Part One
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Saab 9-5 Media Plan- Part 2
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Olympus Camera Media Plan

• The Stylus Verve all of the features of the
  Stylus Digitus line, but uniquely designed and
  available in six colors.

• The mrobean MP3 player and a camera all in one.

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Olympus Camera Strategy

• High-impact and event-driven
• Draw on their sponsorship of the U.S. Tennis Open
  and Olympus Fashion Week

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Media Plan