Media Planning and Analysis

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Media Planning and Analysis
Chapter Fourteen
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Chapter Fourteen Objectives

• Describe the major factors used in segmenting
  target audiences for media strategy purposes
• Explain the meaning of reach, frequency, gross
  rating points, target rating points, effective
  rating points, 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 Fourteen 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 Fourteen Objectives

• Perform cost-per-thousand calculations
• Interpret the output from a computerized media
  model

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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

• Television commercials were run on network TV and
  cable in May
• A newspaper campaign began earlier in March with
  ads in USA Today and Wall Street Journal
• Ads also ran yearlong in several automobile
  magazines
• Internet banner ads were also run throughout the
  year

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Saab 9-5 Media Plan

• Tactical Plan

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Saab 9-5 Magazine Ad

• Magazine ad

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Saab 9-5 Dealer Kit

• Dealer Information Kit

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Saab 9-5 Direct Mail uestionnaire

• Direct mail questionnaire

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Saab 9-5 Direct Mail Response to Questionnaire

• Response to direct mail questionnaire

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Saab 9-5 Dealer Leads

• Dealer lead information card

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Saab 9-5 Dealer Sales Literature

• Dealer consumer sales literature

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Saab 9-5 Consumer Test Drive Contest

• Test-drive invitation and contest

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Saab 9-5 Consumer Test Drive Contest

• Contest entry card

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1-800-COLLECT Media Strategy

• 1-800-Collect media strategy guide

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Media Overview

• Advertisers are placing more emphasis than ever
  on media planning
• Choosing media vehicles is the most complicated
  of all marketing communications decisions
• Aside from specific vehicles in media, the
  planner has to choose geographical locations and
  budget distribution over time

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The Media-Planning Process

• Media planning
• Involves the process of designing a
• scheduling plan that shows how
• advertising time and space will
• contribute to the achievement of
• marketing objectives

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Overview for the Media Planning Process
Marketing Strategy
Advertising Strategy

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

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The Media-Planning Process

• As shown in the figure, media planning involves
  coordination the coordination of three levels of
  strategy formulations
• Marketing Strategy
• Advertising Strategy
• Media Strategy

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The Media-Planning Process

• Marketing Strategy
• Provides impetus and direction for choice of both
  advertising and media strategies
• Advertising Strategy
• Involves advertising budgets, objectives and
  message and media strategies
• extends from overall marketing strategy

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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

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

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Specifying Media Objectives

1. How should the advertising budget be allocated
   over time (continuity)
2. How close to the time of purchase should the
   target audience be exposed to the advertising
   message (recency)
3. 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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Factors Determining the 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
• an advertisement reaches
• the target audience in a
• four-week period

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Market Factors/Frequency Levels
Market Factor Type Frequency

• Brand History New High
• Brand Share High Low
• Brand Loyalty High Low
• Purchase Cycle Short High
• Usage Cycle Short High
• Share of Voice High High

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Message Creative Factors/Frequency Levels
Message/Creative Factor Type
Frequency

• Message Complexity Simple Low
• Message Uniqueness Unique Low
• Newness New High
• Image Factors Image High
• Message variation Little Low

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Media Factors/Frequency Levels
Media Factor Type Frequency

• Clutter high High
• Editorial Nature Consistent Low
• Attentiveness High Low
• Scheduling Continuous Low
• Number of Media a Lot Low

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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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Weight

• 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

• 100 GRPs could mean
• 100 exposed once
• 50 exposed twice
• 25 exposed four times
• etc.

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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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Weight

• Effective Rating Points (ERPs)
• Effective reach
• Effective frequency

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The Concept of ERPs

• How often 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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How Many Exposures are Needed?

• The Efficiency-Index Procedure
• Media schedule that generates the
• most exposure value per GRP

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Efficiency Index Procedure
Exposure Value
Exposure Distribution
Total Exposure Value
Index of Exposure Efficiency
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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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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 schedule
• Pulsing
• Flighting

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Continuous, Pulsing, and Flighting Schedules
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Recency Planning

• Consumers first exposure to an advertisement is
  the most powerful
• Advertising 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

• Illustration of
• advertisings
• Chance Encounter
• and the value of
• achieving reach

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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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Cost Considerations

• 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 fixed advertising
  budget

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Media Planning Software

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

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Diet Dr. Pepper Campaign

• Market Situation
• Sluggish category growth
• Growth of new-age beverages
• Price sensitive
• Lack of bottler attention and focus
• Inadequate distribution
• Greater spending by major competitors

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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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Campaign Target and Objectives

• Increase sales by 4 and improve growth rate to
  1.5 times the diet soda category
• Heighten consumer knowledge
• Differentiate product

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Results

• Sales grew by 6.6
• Consumer brand ratings of Diet Dr. Pepper
  surpassed Diet Coke and Diet Pepsi in several key
  areas