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1. INTRODUCTION
“Doing business without advertising is like winking at a girl in the dark; you know what you are doing, but nobody else does.” • Stewart H. Britt
In this one line we can fathom the importance of advertising to any firm, organization or institution. A firm needs to communicate to its target audience, about the existence of its products or services. The best way to reach this mass market is to advertise through mass communication media. For the purpose of effective advertising, firma usually approach advertising agencies to hone the expertise of professionals in a wide array of communication fields. Thus, “advertising is any paid form of non-personal presentation of ideas, goods and services by an identified sponsor.” -American Marketing Association, Chicago. The organizational structure of an advertising agency is as follows,

2 Here, we see that an ad agency creates an advertising message and produces it in tangible form through copy and visualization. Once the ad is prepared, it is to be sent to different media. Depending upon the total budget, decisions have to be taken on:1. Which media to be selected? 2. What would be the frequency? 3. Size and position of the ad? 4. When it would be published? This process is called Media Planning which is done by the media plan controlling department of the advertisement agency. In this project, what is the concept of media planning; its importance in advertising campaigns; the whole process of media planning.

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2. CHANGING SCENARIO IN INDIA
The great media explosion:
You can read the news today from any of the 6,830 English or 39,825 vernacular newspapers published in India, Catch it on the 8 news channels out of the 100 satellite channels; log on and surf the net for the latest or get days headlines on your mobile. With 70 million television households India boasts the third largest television market in the world and its print industry ranks fifth globally. Bouquets of private channels have segmented the market in terms of viewer ship and advertising. There are 35 million cable and satellite households in the country.

Media planning is gaining dominance in India because of the following factors:
1. Increasing number of media options – There are around 16 different magazines for women in India only in English! 2. Audience fragmentation – The number of people watching a particular TV programme or reading a particular publication has become considerably smaller. This is known as Audience fragmentation. Reaching these specialized audiences requires careful selection of the best combination of media. 3. Growing Number of Media literate clients – Advertisers today are becoming more cost conscious and media savvy. They want to get maximum mileage for their campaigns within limited advertising budgets. Hence the media planner has to select innovative media to reduce costs. 4. Growing importance of Media researchMedia research was in its infancy stage till recently, now a number of independent research organizations have sprung up over the last years. Media research is now being carried out by different agencies using different tools.

. This increase in literacy is proving beneficial for the print medium as more people in rural and urban areas are able to read newspapers and magazines.356 crore in 2007. The report includes in-depth analyses of the media environment and industry trends along with various genres. respectively. Radio. including television. India has 551 million literate people. The report predicts that with increasing media reach amongst the rural masses. Although the direct impact of such a boom is going to be greater ad avoidance. touching Rs 215 crore. It is estimated that television will grow at a dynamic pace in the next two years and the total number of channels will touch the 500 mark.Lintas Media Group The Lintas Advertisement Media Group has released the Lintas Media Guide 2008. 16 and 17 per cent. growing by a mere 3. Initiatives such as the National e-Governance Plan (NeGP) are likely to increase Internet use amongst the lower SECs in the next couple of years.591 crore). 1 pay TV market by 2015.4 Report on media trends of 2007 . print. FHM and The Economist. The print media industry still has the potential to grow by 236 million literate people in India. India.062 crore. Rs 194 crore and Rs 1. is expected to become the No. TV revenues showed a decline of 1 per cent as a result of the competitive pricing offered by general entertainment channels to retain market shares. According to the study. Currently. which is currently Asia’s second largest pay TV market after Japan. Internet ad spends grew by 43 per cent as compared to 2006. The year 2007 also saw the launch of various foreign publications such as Vogue.5 per cent as compared to 2006. ad spends reached Rs 17. The Internet medium grew by leaps and bounds because of factors such as the increasing number of households with computers and growing awareness of the Internet as a tool for empowerment. cinema and outdoor. Several one time non-communication applications such as exam results and e-ticketing have encouraged the less affluent to get on to the Internet. The ad revenues for TV were Rs 6. cinema and outdoors saw an increase of 28. reaching Rs 529 crore. radio. the time spent on watching any channel will move up. Internet. a comprehensive analysis of media spends and buys in 2007. Print continued to hold a major share with 50 per cent of the total media spends (Rs 8. a number which is still not tapped by any publication.766 crore. 2008 is set to offer enormous advertising opportunities as well as tremendous challenges. The print media is among the acknowledged segments for global investors who like to put the maximum foreign investment here.

5 Of the total amount spent on ads in 2007 in India. Several new radio channels. The report suggests that this share is expected to rise to 5 per cent during 2008-09. radio had a 3 per cent share. The new channels have given a boost to creative content and the demand.5 million hours of content annually for around 300 channels. especially in Tier II and III towns. . The OOH industry is expected to see a growth rate of 17 per cent annually and to rise from Rs 1. The panel set up by MRUC and Hansa Research to measure the efficiencies of outdoor advertising will play a crucial role in the growth factor for the advertisers. may reach as much as 1.150 crore in 2010.000 crore in the present year to Rs 2. it has been estimated. were launched in 2007.

although some national publications offer regional or city editions.THE CONCEPT Definition: The process of establishing the exact media vehicles to be used for advertising. then finalized. Spending on advertising media is growing at a compounded annual rate. business-to-business e-media. consumer Internet. in smaller markets. magazines and more. unless local. satellite radio. Media planning supports message dissemination.Choosing which media or type pf advertising to use is sometimes tricky for small firms with limited know-how. usually cover too much territory to be cost.is playing an increasingly significant role. Metropolitan radio stations present the same problem as TV and metro newspapers. it is important to put together a media plan for an advertising campaign.Advancement of new media: new media – cable and satellite television. Media planners develop yearly plans that list each media outlet—print or broadcast. however.It helps to effectively disseminate advertising message. bus stop posters. in-store displays. Large-market television and newspapers are often too expensive for a company that services only a small area. it makes sense to have a sound plan to manage this investment. Thus. Magazines.efficient for a small firm. media planning refers to the process of selecting media time and space to disseminate advertising messages in order to accomplish marketing objectives. banner ads on the web. . as each separate contract is negotiated. Importance: . MEDIA PLANNING . Media planning is a process of choosing a course of action. The two basic tasks of advertising is message creation and message dissemination. Planning then gives way to buying. . . Explanation: The series of decisions involved in the delivery of an advertising message to prospective purchasers and/or users of a product or service. .6 3. newspapers. the local radio station and newspaper may sufficiently cover a small firm’s audience. It helps you to determine which media to use—be it television programs. movie screen advertising and videogame advertising. Simply put.The largest category in advertising budget is likely to be the media costs—the amount spent for air time on radio or for ad space in newspapers. or a flyer on Facebook It tells you when and where to use media in order to reach your desired audience. Thus.

The tool required to do all this is a media plan that begins with an over view and works its way down to the details. Without good planning there is a risk of lot of wasted time. Advertising media: 1. effort and money. 5. calendars. telephone pads. 7.An agency needs to set goals. 6. Television Radio Newspapers Magazines (consumer and trade) Outdoor billboards Public transportation Yellow pages Direct mail Specialty advertising (on such items such as matchbox.Planning advertising media well is a fundamental part of giving the ad campaign the very best chance of success.Media planning eventually gives way to media buying process. It assists in every phase of advertising. . pencils.7 . 3. 8. describe strategies to achieve them and organize the days to day tasks of carrying out the strategies. shopping bags and so on) . 4. 9. . 2.

radio and outdoor) PR. the role of the media planner was quite close to that of the Media Buyer. copy deadlines. in-store. In a smaller agency. to assure that the advertiser’s needs are met efficiently and effectively. brand planner or strategist.8 4. below-the-line channels. Today many agencies are actually eschewing the job title of 'media planner' in favor of titles such as communications planner. placing them in immensely pressured situations matched by the states faced by their creative (copywriters and art directors) counterparts. programs etc. all within the advertiser’s budget. . product placement and other emerging communications channels all for the purpose of ensuring the client's advertising budget is well spent as well as adhering to the overall marketing strategy devised by marketing consultants or the client themselves. The buying or placement function involves contacting the various media for proposals. placement. The primary function of a media planner is to match the target audience in each campaign with the appropriate media. analyzing and modifying as needed. a media planner decides which media vehicles to use. print. but larger agencies will have a staff of buyers usually grouped according to media classes. the media planner is also the media buyer. The planner will make client recommendations as to the medium or combination of media that will best reach the target audience and meet the media objectives. Traditionally. The media planner will identify the desired target audience (from the advertiser's or account executive's input) and then make media selections based on the profiles of the various available media while also evaluating the media in terms of cost. Their expanded job scope has thus made more demands of their time. with the planner now having to consider (as well as standard above-the-line channels such as TV. In short. This reflects the shift away from 'traditional' media planning to a more holistic approach. THE MEDIA PLANNER Definition: A media planner is an advertising agency employee in the media department who is responsible for the planning of media to be used in an advertising campaign. merchandising etc. The role of the modern media planner is more wide reaching however. how frequently the ads should run and where they should be placed to achieve maximum reach (the number of people who see the ad) as well as the maximum impact. digital media. negotiating rates. the obvious distinction being that the planner would devise a plan for advertising and the buyer would negotiate with the Media proprietor on things such as rates.

2. however. and it all depends on them whether the ad will be successfully publicized. Role of media planner: • • • • • • • The media planner develops a statistical advertising model for the audience Circulates the advertisement by planning the time effectively Plans to cut and minimize costs Makes amendments to maximize the advertisement time Manages. In the end. keeping abreast of media developments. Requirements of a media planner: 1. and yet they play a crucial role.9 Though many media planners are housed within ad firms. ZenithOptimedia. They come in the last step of the advertising process. The more a person understands the dynamics of the media industry in the world of advertising. media time or space. Initiative Worldwide. Carat. Mindshare and OMD are examples of stand-alone global media planning agencies for general consumer brands. the better it is for them. 3. They should know all the TRP ratings of the television industry. He should have excellent communication skills. Makes recommendations to the clients and also allocates the time and space Plans billing terms for clients that is beneficial for both client and the advertising company. it also depends on the theoretical knowledge of the media industry. reading market trends and understanding motivations of consumers (often including psychology and neuroscience). 4. The job requires a lot of practical knowledge. Overall the media planner should have an eye for details. Starcom. Ability to analyzing target audiences. . the media planners are the ones who are responsible for airing or printing the respective advertisement. The most essential education the person should have is computer knowledge and operating MS office and other tools. and must be capable of deciding which advertisement to place when. controls and purchases air time. and should have a good knowledge of handling prime time ads. The knowledge in accounting would help when it comes to managing the air time and maintaining records of the air time. 5.

STAGES IN MEDIA PLANNING Following are the typical stages in formulation of a media plan: Media Brief Media Strategy & Plan Media Buying Implementation Post Analysis .10 5.

etc • What is their lifestyle/lifecycle? • Has research been done to establish their current attitude towards our Service/product? • Is this existing attitude to be maintained. CONSUMER MEDIA BRIEF Purpose: A media brief is required to provide with all the information necessary to translate marketing goals into effective media plans. occupation. A media brief consists of Key Brand Considerations. what is their media pattern? • What is your share of voice/share of market? Advertising Objectives: • Where are we positioned now? • Where do we want to be positioned? 3) Target Audience: • Their age. Creative Considerations Timelines. Budget.1. or changed? . A complete media brief equips a media planner with the following information: 1) Marketing Objectives: • Launching a new product? • Testing? • Maintaining an existing service/brand? • Will creative/strategies be researched? • Will there be supporting components? • Public Relations • Direct Marketing • Sampling • Trade Support • Consumer Promotions? • Sales Promotions? • What sales targets have been set? 2) Competitive Considerations: • Who are the major competitors? • Historically.11 5. Geographical Priorities. sex. income. Competitive Environment. Key Planned Activity. and Key Learning’s from Past activity.

12 4) Geographic Areas to be covered: • What metropolitan and regional areas to be covered? • Do these broad areas coincide with draw areas? • Should specific draw areas be considered? 5) When do we talk to them?: • What is the purchase cycle? • Are some purchase cycles more important than others? • Are there specific sales troughs. An example: P&G's launch of the Gillette Fusion shaving system for men in early 2006. . which need to be addressed? 6) Creative requirements: • Do we require action? • Must we show a demonstration or a product pack? • Do we require colour? • Will we be prompting emotion? • Is a lot of copy required? (is it a detailed message) • Will the message be a simple one – or will it be involved? 7) Budget: • Is the budget based upon a percentage of anticipated sales? • Is the budget based upon our competitors? • Do you want the media planner to recommend? Media objectives: The media brief helps to develop on the media objective which is based on the marketing objectives and advertising objectives.S. MARKETING OBJECTIVE MEDIA OBJECTIVE Media objectives are positive statements of what the media plan will achieve on a specific budget. P&G's media objectives called for a $200 million media blitz to reach men in the U.

A strategic decision is how to allocate the media budget geographically.2. companies spend as little as 1% to more than 20% of revenues on advertising. MEDIA STRATEGY Purpose: To recommend how best to invest in media to accomplish the task and media objectives set forth in the brief. geographies. When to advertise (timing).allocating budget across media categories.13 5. and What media categories to use (media mix). It is the job of media planners to formulate the best media strategies -. that is. some media options are more cost effective than others. deciding in which markets to advertise and how much to spend in each of these markets. to a few thousand dollars for local "mom-n-pop" stores. they make these decisions in the face of budget constraints. and time. An offensive strategy allocates more money in a market where sales are low but there is potential to grow. from billions of dollars for multinational giants such as Procter & Gamble. The other strategic decision involves advertising scheduling over a campaign period. Moreover. Media planners make three crucial decisions: • • • Where to advertise (geography). Regardless of the budget. The actual amount of money that an advertiser spends on marketing communications can vary widely. . depending on the nature of their business. A defensive media strategy allocates more money in a market where sales are high. In general.

3.14 5. THE PROCESS OF MEDIA PLANNING Target Audience Definition Who Market Prioritization Where Setting Objectives How Much Media Selection What Scheduling When .

Achievers. for example. VALS places adult consumers into one of eight segments based on their responses to the VALS questionnaire. clothing." Some advertisers believe that demographic definitions of a target audience are too ambiguous. • • Target audience may be specified in a number of ways as follows: 1) Demographics and Psychographics The target audience is often defined in terms of demographics and psychographics. age. the target could be people who have a need for self-expression. One psychographic system which media planners often use is called VALS (short for Values and Lifestyles). globalization). Believers. For example. type of residence. price-sensitive shoppers. funny. The eight segments are: Innovators. think about the students in a media planning class. because individual consumers that fit such definitions can be quite different in terms of their brand preference and purchase behavior. Makers and Survivors. convenience shoppers). but by psychographic principles. Experiencers. education. The high cost of media and need to minimize the waste exposures emphasizes on the importance of a precise target market definition. The target audience is not defined by age.15 5. Strivers. For example.000 or more" or "all households with children age 3 years or younger. they may like different brands of toothpaste.1 TARGET AUDIENCE DEFINITION: As the basic function of media planning is to select the media that reach the target audience. shampoo. are young at heart. personal interests (music. environment. Demographics involves classification of markets on the basis of gender. and number of children in the household. cereal. Thinkers. marital status. and shopping orientations (recreational shoppers. and love to drive. income or gender. the target audience of a media plan could be "individuals who are 26-to-45 years old with yearly household income of $50. Therefore. Using demographic variables. household income. movie going). conservative).3. employment status. Psychographics is a generic term for consumers' personality traits (serious. • • Target Audience should ideally be defined in terms that makes it measurable Might vary from marketing TG to make them relate to media usage and decisionsselect from profile of media vehicle audiences those vehicles whose audience is closer to the marketing TG Might change according to markets May to some extent be governed by competition. beliefs and attitudes about social issues (opinions about abortion. sports. Target audience means the people whom the media plan attempts to influence through various forms of brand contact. and other products. the media planner must know the target audience with as much precision as possible. . Even though some of them are the same age and gender. media planners use psychographics to refine the definition of the target audience.

They are change leaders and are the most receptive to new ideas and technologies." Defining a target audience by psychographic variables helps not only creative directors with the development of advertising appeals but also media planners with the selection of effective media channels. Product usage includes both brand usage (the use of a specific brand such as Special K cereal or Dove soap) and category usage (the use of a product category such as facial tissue or chewing gum). For example. Manufacturers observe kogals and listen to what they say is unsatisfactory about the products. Each of the cohorts possesses distinct characteristics in their lifestyles and often serves as a reference group from which finer segments of the target audiences can be selected for specific advertising campaigns. In some cases. and social activity. For example. They have the leisure time to invent new ways of using electronic gadgets. An interesting example of a generational cohort is "kogals" in Japan. • light users and • non-users. If a psychographic group of consumers likes playing golf. attitudes. 3) Product and Brand Usage Target audiences can also be more precisely defined by their consumption behavior. Generation X (about 17 million people born in 1965-1978). 2) Generational Cohorts In addition to demographics and psychographics. Innovators are "successful. manufacturers simply imitate the new usages that kogals spontaneously invented and incorporate these usages part of their own new commercial services. sophisticated. For example. they are likely to read golf-related magazines and visit golf-related Web sites." kogals are a unique segment of young women in urban Japan who conspicuously display their disposable incomes through unique tastes in fashion. they started changing mobile phones' ring tones from boring beeps to various popular songs and changing screen savers from dull defaults to cute pictures. for example. Product use commonly has four levels: • heavy users. Because the members of a particular generational cohort are likely to have had similar experiences during their formative years. music. and Generation Y (about 60 million people born between 1979 and 1994). Innovators are very active consumers. they maintain analogous social views. Because they have such abundant resources. • medium users. generational cohort is another useful concept for selecting the target audience. take-charge people with high self-esteem. they exhibit all three primary motivations in varying degrees. . and values. thereby increasing sales. and their purchases reflect cultivated tastes for upscale. Originating from the world for "high school. niche products and services.16 Each segment has a unique set of psychological characteristics.

In the case of video game players. buying and consuming a product or service to target the right groups of consumers effectively." This highlights the importance of heavy users for a brand's performance. media planners should estimate the number of these women to quantify the sales potential. for example.how many people or households fit the definition. brand usage has several categories.17 The levels of use depend on the type of product. For example. it is reasonable to consider children as the primary target audience and their parents as the secondary target audience. • • Brand loyals are those who use the same brand all the time. Simmons defines heavy domestic beer users as those who consume five or more cans in the past 30 days. An analysis of the brand usage pattern is helpful for the identification of the appropriate target audience 4) Primary and Secondary Target Audience The target audience in a media plan can be either primary or secondary.000 households and each . Thus." Similarly. while a secondary target audience plays a less decisive role. Media planners need to examine and identify the role of consumers in shopping. If the parents are aware of the advertised brand. For example.000. There is a popular saying in the industry: "the twenty percent who are heavy users account for eighty percent of the sales of a product. Simmons' definitions are: three foreign trips per year indicate heavy travel users. they are secondary users for these competing brands. and 1 trip per year are light travel users. 2 foreign trips per year are medium travel users. and light users as those who consume one can in 30 days. media planners often examine and specify the actual size of a target audience -. Knowing the actual size helps advertisers to estimate the potential buying power of the target audience. medium beer users as those who consumer two to four cans. The Size of Target Audiences: In the process of defining a target audience. if the target audience of a campaign is defined as working women 26-to-44 years old who are interested in receiving daily news updates on their mobile phones. parents often respect their children's brand selection. children's requests often initiate a purchase process. if the target audience consists of 2. As another example. A primary target audience is one that plays a major role in purchase decisions. it will be easier for children to convince them of the purchase. Examples of defining a target audience by product usage can be "individuals who dine out at least four times in a month" or "individuals who made domestic trips twice or more last year. Primary users use a brand most of the time but occasionally also use other brands in the same category. Brand switchers are those who have no brand preference for a given product category but choose a brand on the basis of situational factors. For travel.

media consumption/ interaction . These could be: • • • • • • • Psychographics Working Status (E. certain qualifiers are added on to the target group definitions to sharpen the focus.000 units. Often.g. Housewife/ Students ) Consumption Patterns ( High/Medium/Low User of a product) Buying Patterns Brand Usage segments (sole users/ primary/ secondary/ non users) Hobbies / Interests ( Cookery / Gardening / Golf Lovers ) Mediagraphics.18 household purchases the brand two times a month.000. the monthly sales would be 4.

which many a spot approach more efficient than the national approach. A national approach will reach a national customer base with a national advertising program. The second method is called the Category Development Index (CDI) and measures the concentration of sales of the product category (across all brands) in that region. BDI is calculated for each geographic area (Market X) using the following formula: . MARKET PRIORITIZATION Market prioritization refers to geographic allocation of the advertisement In general. Mathematically. a company’s customers are concentrated in a limited subset of geographical area. California and Michigan while not advertising in other states like Iowa or Nebraska. a leisure boat manufacturer such as Sea Ray might use a spot approach to target Florida.2.3. 2. California and Michigan due to the large water areas in these markets. 3. • A spot approach (advertise only in selected markets): for many products. BDI measures the concentration of sales of a company's brand in that region. The first method is called the Brand Development Index (BDI) of a geographic region. • A combined national plus spot approach (advertise in all markets with additional spending in selected markets). the sales of leisure boats are much higher in markets such as Florida. Media planners perform geographic analyses by assessing the geographic concentration of sales in two ways: 1. a company that sells nationally can take one of three approaches to geographic spending allocation: • A national approach (advertise in all markets): Media planners will choose a national approach if sales are relatively uniform across the country. BDI is a ratio of a brand's sales in a given geographic market divided by the average of its sales in all markets. A spot approach will target these states. For example. Therefore. such as for Tide laundry detergent or Toyota automobiles.19 5. Growth Potential Index (GPI) 1) Brand Development Index: Media planners use BDI to measure a brand's performance in a given market in comparison with its average performance in all markets where the brand is sold.

 BDI doesn't reflect the concentration of potential sales as measured by sales of the entire product category. this city contributes only 0. Because such a low percentage of New Yorkers travel to Louisiana. CDI. The sales of a product category include the sales of all the brands (the company's and competitors' brands) or at least all major brands that fall in the category.7% of visitors to Louisiana. Because Houston's BDI is higher than 100. .2% of the U. in addition to BDI when allocating resources for spot advertising.the geographic concentration of people who travel to Louisiana for business or pleasure. the New York City area has a very low BDI of only 10 because even though New York City has 7. So. media planners use another number. Given that the cost of advertising is often proportional to the population it reaches.8% of visitors to Louisiana (100 * (11.8% of the U. population. but Houstonians make up 11.8%/1. The BDI for Houston is 658 because Houston is 1. In contrast.  BDI doesn't tell the whole story. it means that many more Houstonians come to Louisiana than the average from other cities. The point is that even though New York City has a much larger population.  BDI only measures the concentration of current sales. advertising to New Yorkers will be less effective than advertising to Houstonians. population.S. 2) Category Development Index: CDI is a measure of a product category's performance in a given geographic market in comparison to its average performance in all markets in the country. advertising in New York City will be far more expensive than advertising in Houston.S. % of a brand’s total sales in Market X % of total population in Market X X 100 However.20 BDI = Indicates relative strengths and weaknesses for the brand For example: Consider the BDI for visitors to the state of Louisiana -. Media planners will tend to allocate more resources to high BDI markets (greater than 100) than to low BDI markets.8%) = 658). it has a much lower concentration of travelers to Louisiana. • • • This disparity in BDI influences Louisiana's advertising strategy.

Because a BDI or a CDI for a given market can each be either above or below the average. Florida. Returning to the example of leisure boats. markets with a high CDI (higher than 100) may be a better market for that product category. There will be four possible combinations. and the population in that market is 3 percent of the U. as shown in the table below: Four Scenarios of BDI and CDI CDI High BDI High Low High CDI High BDI High CDI Low BDI Low Low CDI High BDI Low CDI Low BDI . and Michigan have high CDIs. media planners use both numbers to guide allocation decisions. On the other hand. which is 33 percent below the average of 100. population. In general. If the sales of the product category in Market X account for 2 percent of its total sales in the U. which means that Market X may be less promising for spot market advertising. That means a poorer-than-average consumption of the product category. For example. BDI reflects the concentration of existing sales while CDI reflects the concentration of potential sales in a geographic region.S. Yet the maker of a line of small boats that aren't suitable for the ocean may have very high BDI in Michigan but a very low BDI in California and Florida. then the CDI for that market will be 67. Because BDI and CDI can vary independently. we find that states such as California.S.21 The CDI formula is: CDI = % of a category’s total sales in Market X % of total population in Market X X 100 Notice the similarities and differences of the CDI formula compared to the BDI formula:  The denominator of the CDI formula is the same as that of the BDI formula  But the numerator for CDI is the share of the product category in a given market.

in a market with both a low CDI and a low BDI.  The mixed cases represent situations in which the percentage of brand sales in a region differs significantly from the percentage of category sales.22 The four combinations represent two extreme cases and two mixed cases. then more advertising should be worthwhile. For example. media planners need to first assign a weight to the BDI and to the CDI.  At the other extreme. in a market with both a high CDI and a high BDI (both above 100). the company will want to understand why it has such poor sales of its brand (low BDI) in an area with high category sales.  A low CDI and high BDI represents the enviable position of selling well in a market that does not otherwise buy products in that category. the maker of small boats may learn that Californians don't buy the brand's boats because the boats are unsuitable for the ocean. media planners may eschew spending their advertising dollars there due to the low concentration of potential consumption -.  At the one extreme. Before devoting advertising dollars. The above is summarized in the table below: BDI/ CDI Relationships BDI High High CDI Low High share of market Good market potential High share of market Monitor for sales decline Low Low share of market Good market potential Low share of market Poor market potential • One approach to resource allocation uses a weighted sum of BDI and CDI -. With this approach. media planners will seek to maintain high market share (implied by high BDI) and might even consider more advertising to gain market share because of the good category potential (implied by high CDI) of the market.  A market with a high CDI and a low BDI deserves serious consideration because it suggests a large opportunity for increased sales. and the sum of two weights should equal 1.spending money in each geography in proportion to a combined BDI plus CDI score. . A market with low CDI and a high BDI requires continued advertising support to maintain the superior brand performance. If the causes of the poor brand performance can be identified and solved (such as by changing the product or finding better distribution).the small boat maker may ignore New Mexico. These two weights represent the relative importance of the BDI and CDI.

1. Then. Market A will receive 16 percent of the media spending.23 • On the one hand. media planners might choose a high weight on CDI if they feel their brand is representative of the broader category and they expect their brand to attain a geographic pattern of sales that matches that of the category. the category is very diverse. • Consider a hypothetical example in which a media planner thinks the BDI is three times more important than the CDI in allocating spending. as show in the table below. On the other hand. Market B will receive 22 percent.25 with the CDI values of each geography to calculate a weighted sum and a percentage for each of the markets. All the percentages added together will equal 100 percent. He or she would use a weight of . they might place a high weight on BDI if their brand is unique. 2. That is. and so on. or the company wants to grow sales among current customers. Hypothetical Spending Allocation in Markets with 75% BDI and 25% CDI Geographic BDI Market CDI 75% Weighted 25% Weighted BDI CDI Weighted Sum Spending Percentage North 74 89 56 22 78 16% East 111 99 83 25 108 22% Central 93 129 69 32 102 20% South 139 109 104 27 131 26% West 83 74 63 19 81 16% . she can use the percentage as a base for spending allocation in each market.75 with the BDI values and .

24 3) Growth Potential Index: Media planners can use another index -. media planners should examine the specific conditions of a high GPI market before allocating resources to assess the true possibilities for growth. When a brand sells in many markets. the GPI can facilitate the selection of markets for additional spot advertising spending.growth potential index (GPI) -.to assess growth opportunities in geographic markets. GPI is simply the ratio of the CDI over the BDI and is one way of quantifying the discrepancy between category sales (the potential sales for the market) and brand sales (current sales) to measure of the growth potential of a brand in a market. sales would grow 50%. This high value of GPI suggests a growth potential of 50% in this market -. Of course.X 100 Market X's BDI For example. . The formula of the GPI is as follows: Market X's CDI GPI = ---------------------.that if the brand sold as well in that market as it does nationwide. if Market X has a CDI of 120 and a BDI of 80. then the GPI will be 150.

25 5. reach may grow from 20 (20%) in the first week to 60 (60%) in the fourth week. reach is expressed as a percentage. although the percentage sign is rarely used. A parameter is a quantity that is constant in a particular case. The pattern of audience accumulation varies depending on the media vehicles in the media plan. When reach is stated.3. • • . for the average target audience member.5 million of the target audience will exposed to some of the media vehicles in the media plan. Generally. Reach doesn't double-count people exposed multiple times if the media plan involves repeated ads in one media category or ads in multiple media categories. Because reach is always defined for a certain period of time. SETTING OBJECTIVES This section deals with setting of communication objectives. Reach refers to the number of different individuals or homes exposed to the advertising message in a purpose cycle. they can be called as the parameters of an effective media plan. such as in a particular media plan.reaching the target audience with sufficient frequency and appropriate timing. Media planners use reach because it represents that total number of people exposed to the marketing communication. A purpose cycle is the time interval between purposes in the product category. Reach is one of the most important terms in media planning and has three characteristics: • Reach is a percentage. if a media plan targets the roughly 5 million of women who are 18-25 years old. Because the primary purpose of media is to deliver the advertising messages. such as in alternative media plans that are being considered. then a reach of 50 means that 50% or 2. 1) Reach: to set their objective for the total number of people exposed to the media plan. the number of audience members exposed to the media vehicles in a media plan increases over time.3. but what varies in different cases. For example. communication objectives should be expressed with terms of delivery ability. media planners are aware of the size of the target audience. These objectives are expressed in the following terms: • Reach • Frequency • Continuity Because all the media plans contain these factors. For example. Reach measures the accumulation of audience over time.

Frequency is a measure of repetition. Notice the difference between GRP and reach: • • GRP counts total exposures while reach counts unique people exposed. If the commercial was run only once. These new watchers do count toward the reach during the second half because they didn't see the ad during the first half. This means that. twice or many times between purchases. media planners use Gross Rating Points as a shorthand measure of the total amount of exposure they want to buy from media outlets such as TV networks. it's not the same 42% for both halves. Individuals may be exposed to the advertising once. The advertiser could also buy 6 spots on popular primetime shows that each have a rating of 14 (6*14 = 84) or buy a large number of spots (say 42 spots) on a range of niche-market cable TV programs. The minimum number of exposures that will maximize the .S. For example. which means 42 percent of U. Thus. that ad would appear in 42% of households. Media planners often think in terms of gross rating points because ad prices often scale with this measure. Nielsen monitor who watches the game. The most difficult decision in media planning is how many times the target audience needs to be exposed to the advertising per purpose cycle to maximize the chances of creating an impact. radio stations or magazines that have a rating of 2. If an advertiser planned to run a commercial once during the Super Bowl. Thus. To see this relationship between GRP and reach. the Nickelodeon TV channel controls 53% of kids GRPs. but then onethird of these households (42%*1/3 = 14% of all households) tune out before the second ad during the second half. A media plan that calls for a GRP of 84 doesn't necessarily mean that the advertiser must advertise twice on the Super Bowl. let's consider what happens when an advertiser puts two spots on the Super Bowl -. These rating services know that. when they watch. and whether they watch the first half or the second half or both halves of the game. a GRP of 42. this example plan has a GRP of 84. Thus. This 28% of households who are still watching when the second spot shows won't add to the reach when they see the second spot. Rating services such as A. For example. for example. This means that only 28% of all households watch both first and second halves of the game and see the ad twice. the reach of the first ad is 42. GRP does double-count people who see ads multiple times.26 Gross Rating Points: Besides reach.S. But what is the reach? That depends on how many people watch both halves of the game. households tune in. television households tuned in to the program. it costs about twice as much to obtain a GRP of 84 as to obtain a GRP of 42. the GRP would be 2*42 = 84. If the advertiser's media plan called for running the ad twice during the Super Bowl. As mentioned earlier. 2) Frequency: is the ratio of GRP over reach. Some media vehicles are best-suited to specific target audiences. the 2006 Super Bowl game received a rating of 42. although 42% of households are tuned in to the game during each half. a different 14% of U. frequency refers to the average number of times the audience is exposed to the advertising message. the reach is equal to the rating of the program. As a rule of thumb.one during the first half of the game and another in the second half. the total reach for the game for the two-ad plan is 42+14 = 56. 1/3 of the game-watching households stop watching after the first half and 1/3 of game-watching households start watching during the second half. During the second half.C. In simple words.

customer loyalty. To change brand attitude requires more exposures (higher effective frequency) than does creating brand awareness. on average. Frequency Distribution. and budget issues may preclude such a high GRP. purchase. Communication objectives vary across the continuum from awareness. If the effective frequency is set for a given communication objective. Thus. Media planners also seek high frequency if they feel that consumers will only take action (that is. This lets the planner estimate the effective reach of the plan at the effective frequency needed by the campaign. The media objectives of a media plan often call for some combination of reach and frequency. and repurchase. which should lead to more brand awareness. then estimate the GRPs that they can afford and then either sacrifice reach to maintain frequency or let frequency drop to one in order to maximize reach. • • Effective frequency refers to the minimum number of media exposures for a Effective reach is the reach (% of households) at the effective frequency level. audience members of the Super Bowl game had one-and-a-half opportunities to watch the ad. attitude change to trial. and so on. then it calls for very high GRPs (lots of ad exposures to lots of people). the reach at that effective frequency level will be the effective reach. three times. if the GRPs were 84 and the reach was 56. The formula of calculating frequency is: Frequency = Gross rating points / Reach Using the Super Bowl example again. sales. GRPs are the product of reach multiplied by frequency. The number of people who see the ads a sufficient number of times for the media plan to be effective. twice. etc. . A frequency of 1. Media planners want the highest reach possible because that means more people will be exposed to the campaign. reach indicates the media dispersion while frequency shows the media repetition. that is. launching a new brand or teaching consumers about the features of a product (like the features of a five-bladed shaving system) may take several impressions. how many people will see the ad once.27 likelihood of the average target audience member purchasing the brand is known as minimum effective frequency (MEF). Achieving a very high GRP is very expensive.5 would mean that. then the frequency would then be 1. media planners may start with budget.5 (84/56=1. If a media plan calls for a broad reach and a high frequency. Effective Frequency and Effective Reach: Media planners also consider frequency distribution in order to fully understand exactly how many exposures different people experience. Media planners choose an effective frequency based on the communication objectives. Notice that the formula for frequency can be flipped to make a formula for GRPs. however. For example. Thus.5). buy the product) after multiple exposures to the campaign. preference.

and reach of 44 at the frequency of 0 (also called non-reach). In summary.28%) who never see the ad. showing an encore of their Super Bowl ad on all major networks during the prime time slot of 8:00 to 8:30 PM. During the first half. On continuing this hypothetical campaign. The following table shows the viewer data.28 Let's go back to the Super Bowl example: A total of 28% of households see the ad twice by watching the entirety of the game. Another 14% join the game in progress and see the ad once during the second half. the frequency distribution is: reach of 28 at the frequency of 2. collected from households across the country.: On the Thursday after the Super Bowl. Thus. Ratings of the Three Time Slots Viewers of the Ad's Time Slot Segment 1 2 3 4 5 6 7 8 Rating X 42 X X X X 42 X X X X 60 X X X Super Bowl First Half Super Bowl Second Half Prime Time Blitz Data Frequency 0 1 1 1 2 2 2 3 % of Households 30 3 2 14 5 11 12 23 . reach of 28 at the frequency of 1. 14+14 = 28% see the ad just once. the advertiser does one more media blitz. with the percentage of households who were watching during various combinations of the three time slots. 14% of households see the ad once but then don't watch the second half. This practice of advertising on multiple channels at the same time ensures that most people will see the ad regardless of which channel they watch.28% . This leaves 44% of households (100% .

how many of the target audience should be reached with the media plan. 23 percent of the households watched the time slot three times. GRPs of this media plan were 144 and reach was 70. That is. new sales incentives. such as new features.Theoretically. For example. 19 percent once. following Michael Naples' seminal study of effective frequency published in 1979. b) for reminder advertising for a mass market product. 75% or 95%. and c) when the brand faces severe competition. media planners have more rules of thumb to choose from when setting levels of reach.1. The newness requires a high level of awareness among the target audience. The frequency distribution of the plan is in Table 9B. A high reach is also often necessary in three other situations: a) advertising in support of sales promotion activities. In this example. 28 percent twice. When setting levels of frequency. but it is rarely an objective because some audience members may not use any of the media. the effective reach is 51 because that is the sum of the reaches for frequencies 2 and 3 combined. as shown in the table below.29 Media planners can process this data to compute the frequency distribution. Media planners can set objectives based on the level of reach. making them unreachable. then the advertiser will want to know what percentage of households saw the ad two or more times. What. etc. Frequency Distribution of the Plan Frequency 0 1 2 3 Reach 30 19 28 23 If the advertiser believes that its ads are only effective if they are seen at least twice. then. 2. a reach of 100 is possible. That is. Media experts suggest high reach is appropriate when something new is associated with the brand. and 30 percent did not watch at all. say 50%. 1. by tallying the total percentage of households that saw the ad 0. would be the optimal level of reach for a given product category or a market situation? There is no quick answer to this question. because 30% of households did not watch during any of the three times the ad was shown. resulting in an average frequency of 2. new packaging or new service opportunities. media planners have often been setting a frequency of 3 during a purchase cycle. times. it all depends on the media planner's analysis of major factors facing the brand. .

Recency planning starts with the idea that when is more important than how many. upon which the media planner makes judgments by circling an appropriate rating in that row of the chart. additional exposures are likely to be wasteful because audience members are not in the buying mode. such as Wyoming's ads during the spring when many people are planning summer vacations. therefore. • • • As illustrated in the following table. the media planner makes frequency adjustments based on a series of 20 factors in three categories. Erwin Ephron further developed the concept of "recency planning" and suggested that one exposure within a purchase cycle should be set as close to the actual purchase moment as possible. Philip Jones found that one exposure generates the highest proportion of sales and that additional exposures add very little to the effect of the first. Therefore.2" frequency adjustment. advertisers know when consumers are in the market. Joseph W. copy factors and media factors. three exposures during a purchase cycle are necessary. More recently. the media planner sums the adjustments to calculate the recommended effective frequency. Many media planners still use this rule in setting the effective frequency of a media plan. and so the planner would circle the "+. . In the short-term. Ostrow created a decision model to help media planners determine the optimal frequency level through assessing marketing factors.30 • Naples' study suggests that there is a threshold level of repetition. Starting with a base effective frequency of 3. advertising will be most effective if it is timed to when a consumer is in the market to buy the product or service. advertising below the threshold level will be ineffective. For example. Media planners may modify the model by adding or removing statements to make the estimate more appropriate. That is." A totally new brand will require higher frequency than an established brand. After assessing the factors. In some cases. each category includes several statements. the first factor asks the planner to rate whether the product is an "Established brand" or "New brand.

2 -.1 +.2 Frequency usage +.2 -.2 Short purchase cycle +.1 +.2 -.1 +.2 Neutral editorial setting +.1 +.1 +.2 High clutter +.2 -.2 Low wearout +.1 +.1 -.1 +.2 -.1 -.1 -.1 +.1 -.1 +.1 +.2 High share of voice +.1 +.1 +.2 -.2 -.2 Small advertising units -.2 -.1 -.2 -.2 -.2 New brand +.1 -.1 +.1 +.2 -.1 +.1 +.2 -.2 Low brand loyalty +.1 -.1 +.1 +.2 -.31 The Ostrow Model of Effective Frequency Low Required Frequency Market Factors Established brand High brand share High brand loyalty Long purchase cycle Less frequent usage Low share of voice Target other group Message Factors Low message complexity High message uniqueness Continuing campaign Product-focused message Low message variety High wearout Large advertising units Media Factors Low clutter Favorable editorial setting High audience attentiveness Continuous scheduling Few media vehicles High repeat exposure media -.1 -.1 +.2 Low audience attentiveness +.2 Pulse or flight scheduling +.1 -.1 +.1 +.1 +.2 -.2 Low message uniqueness +.2 Image-focused message +.2 Low repeat exposure media -.1 -.2 -.2 New campaign +.2 Target old people or children Frequency Adjustment High Required Frequency .1 -.1 -.2 Low brand share +.1 +.1 -.2 High message variety +.2 -.2 -.2 -.1 -.2 -.1 -.2 High message complexity +.2 -.2 More media vehicles +.1 -.1 -.

Media Balloon: Reach Budget Frequency Continuity Reach. a media plan that intends to change the brand preference among consumers of competing brands would need a higher frequency of advertising exposures than a media plan that intends to introduce a new brand. if the manager is allowed to “inflate” the balloon to any necessary size (representing the open media budget) then all three spheres will enlarge and a more comprehensive media plan will result. Rather their amounts have to be traded off against one another by the planner. However. media planners know that higher-level communication goals such as persuasion and lead generation require higher frequency levels. • • People may be exposed to the advertising in every purchase cycle. For example.32 When setting frequency level goals. The planner cannot make one sphere target without squeezing once or twice the other two. In few of these cycles-low continuity. in order to allocate the media budget. The planning period usually contains multiple purchase cycles. 3) Continuity: refers to the pattern of distributing the advertising messages during the entire planning period (usually one year).high continuity. frequency and continuity are not unlimited open ended quantities in most media plans. . In other words. These trade offs are most easily illustrated with the visual metaphor of media balloon. brand awareness usually requires a lower level of frequency than advertising persuasion and lead generation. Continuity patterns can take many forms and so this is the third parameter of media planning.

for instant coffee at least two exposures within average purchase cycle of 21 days seems to be an effective frequency. It follows from the same axiom of selling. For example. or a few people a lot of times. If this effective frequency means that the annual budget would be used up in first three months so be it. In contrast spending the same budget to only one media type such as magazines. some people completely rather than many not at all. and newspapers) a large number of people will be exposed to the advertising but they wont be exposed very often. For example. By scattering the budget and hence the advertising exposures across a lot of different media types (such as TV. radio. to be till the end of the planning period. . This is the trade off between frequency and continuity. Frequency versus continuity: There is no sense in trying to stretch a limited budget over entire year just because it is supposed to be an annual budget and the planning period is one year. a much smaller number of people will be exposed to advertising but they will be exposed very frequently.33 Reach versus frequency: A media plan with a fixed budget can either be designed to reach a lot of people a few times. If good results are demonstrated in first three months then the budget should be increased for the next three months and likewise. outdoor media) and across many media vehicles (such as different TV $ radio programs. Reach versus continuity: Trade off also occurs between the number of people reached by the advertising and the continuity over the advertising period unless the budget is increased. magazine. If the budget cannot be increased to cover a more time period then the manager should retain the effective frequency concept and consider the budget over the period. This is the trade off between reach and frequency.

Types Of Media: Traditional Media (Unconventional Media): • • • • • • Puppetry Folk Theatre Demonstrations Haats & Melas Wall Paintings Post Cards Conventional Media • • • • • • Radio Web Print Out Door Advertising SMS (Short Messaging Services) Television . When two media vehicles are similar in major aspects.4. • Role of each media in the lives of its audience and audience attitudes towards it. • Brand fit • Efficiency Media planners will choose vehicles with high ratings and less cross-vehicle audience duplication when they need high levels of reach.3. They also evaluate the geographic coverage of media vehicles when implementing spot advertising such as heavy advertising in certain geographic regions. the amount and type of assistance needed from the media. the media planner selects the media vehicles magazines. radio stations etc.34 5. media planners choose the less expensive media vehicle. newspapers television programs. Attention is also paid to the costs of each media vehicle. MEDIA SELECTION Once the objectives are set. The factors considered are: • Reach of different media in your target audience • Involvement levels i.e.

35 Comparison of different media vehicles Vehicle Newspapers Reasons for using Flexibility Community prestige Intents coverage Reader controls exposure Local emphasis Selectivity Fine color reproduction Pass along readership Focus audience Catalog value Sight and sound for dynamic selling Geographic flexibility Focus and mass markets Cost efficiency Focus audience/ market Low cost frequency Good supporting medium Excellent for mobile audiences Low cost frequency Geographic selectivity Impactful presence Captive audience Local coverage Constant exposure High impact Geographic flexibility Focus communication Coverage of mobile population Navigational possibilities Targeted activity can be personalized extensively Interactive Detailing Cost efficient Limitations Hasty reading Poor reproduction quality High costs Magazines Early closing dates for material Lack of immediacy Slow build-up of reach Television High total cost Clutter Audience Fragmentation Fleeting messages No visual / no color No demonstration possible Low reach Difficult to monitor Radio Cinema Out of home Internet Low base Cross comparison Between Traditional media & Internet .

Mostly National Brands Niche audience usually passive viewing.5 hrs spend on the Internet.g. Customers Point of access Mostly B2C Usually Homes/ offices Mostly B2B Usually Homes / offices Cost Efficiency Measurement Tools For Media Selection: . a user spends 2 hrs watching TV and 1 hr reading unit a magazine or newspaper because of high cost of internet usage and low impact of web based advertising. Mostly Age group 15-35 (SEC AB) Recall of brands Recall instant. shopping websites Easy and specific Two way Dependent with other modes of Media Vehicles Measurement of advertisement effectiveness Way of communication Dependency Visual appeal Best Moderate Credibility of Highest Average content Product Life cycle Maturity stage Growth Time spent with the On an average for every 1.36 Parameter Cost effectiveness Expensive Type of brand Target audience Mostly National Brands Audience fragmented – very small share of target audience actually influenced Immediate but may not lead to action immediately Not easy and specific One way Independent Internet advertising • Traditional advertising Expensive and not value for money. can lead to action at times only e.

CPRP = Total Cost / Total GRP For example. direct mail. Cost Per Rating Point (CPRP) : The cost of a broadcast ad per rating point (1% of the population) provided by the media vehicle that shows the ad.37 There are two basic calculations of media vehicle cost. Media Mix Decisions: Which media should the advertiser use? Media planners craft a media mix by considering a budget-conscious intersection between their media objectives and the properties of the various potential media vehicles. For example. Used for comparing/evaluating cost efficiency of program/program mixes It is the cost of buying one rating point in the audience. Defined as the cost of reaching 1. The scale and situations of media use are especially important when evaluating suitable brand contact opportunities.000 people in the target audience within a given medium or specific vehicle CPM = Medium/ Vehicle Cost / Target Audience (in ‘000s) Used to compare efficiency of different media or different markets. media planners consider all the opportunities that consumers have for contact with the brand. CPRP will differ from channel to channel and from audience to audience. they consider how each media vehicle provides a costeffective contribution to attaining the objectives. When making media mix decisions.360. One difference between CPP and CPT is that CPT also contains the size of a vehicle audience. then CPP for this buy will be $25. Cost Per Thousand (CPT) : the cost per 1000 impressions for an ad.7. That is. radio. That is. and podcasts. Sweepstakes make sense if many of the target audience find sweepstakes attractive. not just to traditional media vehicles such as TV. These opportunities can be nontraditional brand contact opportunities such as online advertising. sponsorships. product placement in a video game makes sense if the target audience plays video games. . Is used primarily for broadcast media vehicles. sweepstakes. and then they select the combination of vehicles that best attain all of the objectives. if the cost for a 30-second commercial ABC's "Grey's Anatomy" television program is $440. blogs. and print. product placements. planners look to a whole spectrum of media.000 and the rating of the program is 9. mobile phones.

Media planners also like the dispersion approach for the reinforcement that it brings -consumers who see multiple ads in multiple media for a given brand may be more likely to buy. newspapers and the Internet. media planners choose a media dispersion approach when they use multiple media categories. radio. then it will perform poorly. A company can create a high share of voice with a concentrated media strategy. Media planners can calculate or measure share of voice to estimate the dominance of their message in each category of media they use. For example. because only one set of creative materials will need to be prepared. such as a combination of television. Media Dispersion A media planner's first media mix decision is to choose between a media concentration approach or a media dispersion approach. Share of voice is the percentage of spending by one brand in a given media category relative to the total spending by all brands that are advertising in that media category. Moreover. because not every target customer reads these magazines. This lets the media planner create higher frequency and repetition within that one media category. when Nestle launched its 99% fatfree cereal Fitnesse. In contrast. Media planners will choose a concentration approach if they are worried that their brand's ads will share space with competing brands. But a dispersed approach that advertises in print magazines as well as on Web sites might reach 50% of the target audience. a concentrated media strategy lets advertisers spend a higher percentage of their budget on frequency and reach. The media concentration approach uses fewer media categories and greater spending per category. Media planners will use dispersion if they know that no single media outlet will reach a sufficient percentage of the target audience. The media concentration approach is often preferable for brands that have a small or moderate media budget but intend to make a great impact. the company can be the dominant advertiser in a product category in the chosen channel.38 Mix Strategy: Media Concentration vs. Similarly. . That is. a concentrated approach using only ads on the Internet might reach only 30% of the target consumers because some consumers don't use the Internet. leading to confusion among consumers and failure of the media objectives. But a concentrated strategy is also an "all-eggs-in-one-basket" strategy. a concentrated approach using national news magazines might reach only 30% of the target audience. For example. If the particular ad is not well received or the particular media category only reaches a fraction of the intended target audience. the similarity of ads actually increased the sales of the competing Kellogg's Special K Cereal.

and 3. For example. if media planners want to convert shoppers into buyers. Each media category has unique characteristics. For example. each of these three categories of media serve a different role in moving the customer from brand awareness to brand interest to purchase intent to actual purchase and then to repurchase. If the media planner wants to create broad awareness or to remind the largest possible number of consumers about a brand. Direct mail can carry free samples but can require compelling ad copy in the letter and back-end infrastructure for some form of consumer response by return mail. then direct response media such as direct mail. 2. telephone or Internet. direct response media. Rich media ads on the Internet can combine the best of TV-style ads with interactive response via a clickthrough to the brand's own Web site. The costs of developing creative materials specific to each media category can also limit media planners' use of the media dispersion approach. coupons and price-off promotions. The creative requirements of a media category also affect media planners' decisions. online ads for car insurance such as link directly to the application process to capture the customers right at the time they are interested in the service. they still must pick the media category(ies) for the media plan. Different media categories suit different media objectives. mass media. the Internet and mobile phone are good choices. radio. point-of-purchase media. If the media planner wants to build a relationship with a customer or encourage an immediate sales response. television offers visual impact that interweaves sight and sound.39 Media Category Selection Whether media planners select media concentration or media dispersion. Media planners need to consider which media categories provide the most impact for their particular brand. then they might use point-ofpurchase media such as sampling. An integrated campaign might use multiple categories -. Finally. often within a narrative storyline. Most media options can be classified into three broad categories: 1. newspaper and magazine. Internet media to provide one-to-one information. Magazines offer high reproduction quality but must grab the consumer with a single static image. In short. . then he or she will pick mass media such as television.combining national TV ads to introduce the product. and in-store displays to drive sales.

because there is usually less duplication among the competing media vehicles. Time. to identify several magazines that reach the target audience of women aged 35 to 55.S. To roadblock in the online world. These magazines can be used to implement high levels of reach in the media plan. The term has been extended to the online world. Roadblocking: In television. Reach Considerations As a major component of media objectives. The Yahoo front page draws 25 million visitors a day. where it has been very effective.few readers of one magazine also read other the magazines. they have the opportunity to watch the commercial. Alternatively. media planners can roadblock Yahoo. one of the biggest services for buying ad space. you can select competing media vehicles in the same media category. high levels of reach can be better served with a mix that includes multiple media vehicles with different audiences so that cross-media duplication of audience is minimal. MSN. No matter which television channel an audience member tunes in at that time. For example." said Mohan Renganathan of MediaVest Worldwide. a media planner can buy all the advertising on a Web site for a 24-hour period. The results can produce "an astonishing. The roadblocking approach has become more expensive and less effective recently because of increasing fragmentation of television audience. That is. however. most people who are interested in news may read one of the three major news weeklies: Newsweek. the planned level of reach affects not only media mix decisions but also what media vehicles are used in each media category. with little cross-title duplication -. For example. and U. which means the placement of commercials in all major television networks in the same period of time. and AOL all on the same day. astronomical amount of reach. as Coke and Pepsi have both done. few people read all three of them. When audience data are not available for cross-vehicle comparisons. News and World Report. What are some ways to maximize the levels of reach? One way is to analyze the audience composition of media vehicles by using syndicated media research. . such as Coke did for its launch of C2 and Ford did for its launch the F-150. running a print ad in all the three news magazines can reach a wide audience. Therefore. Each company bought all the ad space on the front page of Yahoo for a 24-hour period.40 Media tactics: Among the major factors that affect media vehicle selection are reach and frequency considerations. media planners sometimes use roadblocking. High levels of reach will require a different set of media vehicles than low levels of reach. if there are three magazines that each reach a portion of the target audience but that have few readers who read more than one magazine. For example. advertising in these three magazines would reach the widest target audience possible because of the low overlap of the readers of the these magazines.

3. . Programs with low audience turnover are more effective for high levels of frequency. audience duplication with other vehicles. Then add all the numbers in each row. such as vehicle ratings. make a table that lists the vehicle candidates in rows and the characteristics in columns. The best media vehicles to choose are those with the highest index numbers. high levels of frequency can be effectively achieved through advertising in a smaller number of media vehicles to elevate audience duplications within these media vehicles. Another phenomenon in broadcast media is audience turnover.41 Frequency Considerations In contrast to high levels of reach. Next. dividing by the total number of characteristics (columns) to arrive at the rating for each vehicle. Broadcast media are often used when high levels of frequency are desired in a relatively short period of time. to make the process of selecting a media vehicle easier. In contrast to these quantitative characteristics. and qualitative characteristics like reputation and added value. which refers to the percentage of audience members who tune out during a program. such as vehicle reputation. media planners will compare media vehicles in terms of both quantitative and qualitative characteristics. Then. Media planners can use tools. 6. Rate each of the characteristics of each vehicle on a scale of 1 to 3. 1. geographic coverage. Selection of Media Vehicles: With reach and frequency considerations in mind. To use the selection tool shown in the following figure. 2. who tune in to a channel for more than one program over hours. select several quantitative and qualitative characteristics that are relevant to reach and frequency considerations. like the one shown below. such as quantitative characteristics like CPM or GRP. editorial environment. Broadcast media usually enjoy a "vertical" audience. 4. Develop a list of the potential vehicle candidates you are considering. and added values. and costs. reproduction quality. 5. A commercial that runs three times during a 30-minute television program will result in higher message repetition than the same commercial that runs once in three different programs. qualitative characteristics of media vehicles are those that are primarily judgmental. Quantitative characteristics are those that can be measured and estimated numerically.

42 In the table below.0 2. Selection of Media Vehicle Based on Quantitative and Qualitative Characteristics Qn1 V1 V2 V3 V4 3 1 1 1 Qn2 2 2 3 1 Qn3 1 2 3 2 Ql1 3 2 1 1 Ql2 1 2 1 2 Ql3 1 3 3 1 Index 1.3 .0 1. Vehicle 2 and Vehicle 3 are the best ways to reach the target audience.8 2.

SCHEDULING Scheduling is having decided how to advertise (the media mix) and where to advertise (allocation across geography). followed by less effective media over a period of time. Correct media scheduling primarily depends on the planner’s capacity to estimate the minimum frequency of exposures to the average target audience member in the purchase cycle that will effectively achieve the communication objectives. The more dominant media are adopted first. media planners need to consider when to advertise.5. Scheduling is influenced by: • Sales . It is represented as plots on a yearly flowchart that indicates the pattern of times advertising should appear so that it coincides with the most favorable selling periods. Advertisers have to schedule the advertisement campaigns over time. In advertising media planning. All media are scheduled on the basis of dominance.Given a fixed annual budget. The gap between one campaign and another campaign should be logically designed to make advertising more effective. In simple words.43 5. Exclusive schedule is not effective since all the media are intermediately used. should all months receive equal amounts of money or should some months receive more of the budget while other months receive less or nothing? The schedule shows the number of advertisements that are to appear in each medium. but this proves to be very expensive and is not without problems even when affordable. The best estimation method would be by experimentation. new launch) • Brand Availability • Promotional Requirements • Consumer Interest Levels . the size of the advertisements and date on which they are to appear.3. scheduling refers to Distribution of advertising weight across the campaign period Here the question is.Peak vs Low • Budget • Competitive Activity • Brand Goals (increase market share. scheduling refers to the pattern in which advertising is timed. Continuous advertising is not preferred.

44 Decisions in scheduling: 1. If the retailer is also advertising the brand. For example. The continuity parameter in case of “outer target” audiences. For “inner target” audiences of routinized favourable brand switchers and brand loyals. Calculation of minimum effective frequency (MEF) aids the planner to think about the right sorts of issues in determining how frequently the advertising should be scheduled. Geographic scheduling is the next decision. This method ensures steady brand exposure over each purchase cycle for individual consumers. c. one ad every week for 52 weeks. For instance.000 per month.is important. consumer advertising combined with retailers may reach the MEF or it may nevertheless encourage the retailer to push the brand. Advertising runs steadily and varies little over the campaign period.000 a year.200. a. b. it may not be practical for small advertisers. The MEF requirement is reduced if the campaign is successful and these audiences change to become more favourable or “inner” customers. advertising at MEF is the best strategy. This pattern of advertising is prevalent in service and packaged goods that require continuous reinforcement on the audience for top of mind recollection at point of purchase. One exception to this advertising in an area for retail support. The final scheduling decision is scheduling over purchase cycles in the planning period. Pulse. . and 6. 5. 3. It also takes advantage of volume discounts in media buying. 2. However. other brand loyals and non-favourable brand switchers. d. It is indefensible to advertise below the MEF level in any market also effective reach should govern the media plan. with an annual budget of $1. Continuity. There may be short gaps at regular intervals when no advertising is done. Continuity scheduling spreads media spending evenly across months. Flight.new category users. Primarily for non-seasonal products. continuity scheduling would allocate exactly $100. because continuity scheduling usually requires a large budget. Types of scheduling: Media planners can choose among three methods of scheduling: 4.

000 per month during each of six months -. For example. The flight scheduling approach alternates advertising across months. Or. a different brand could spend $200. September and December -.and spend nothing during the other months. Advantages: • • • Advertisers buy much heavier weight than competitors for a relatively shorter period of time Little waste since advertising is concentrated during the best purchasing cycle period Series of commercials appear as a unified campaign on different media vehicles . July.000. May. • • Commonly employed in media scheduling for the seasonal product categories.200. a board game maker like Parker Brothers might concentrate its advertising in the fall when it knows that many people buy board games as gifts for the holidays.45 Advantages: • • • • • Works as a reminder Covers the entire purchase cycle Cost efficiencies in the form of large media discounts Positioning advantages within media Employing a single level of GRPs for the entire media buy fails to take into account variations that occur during the campaign. When flighting is used in relation to a scheduling technique.January. it refers to a method that has advertising going on and off the air. for example. with the same budget of $1. March. The phrase advertising flight describes the time when commercials are aired. in hopes that the impact of advertising in the previous month can last into the following month. with heavy advertising in certain months and no advertising at all in other months. The advantage of the flighting technique is that it allows a campaign that does not have funds for running spots continuously to conserve money and maximize the impact of the commercials by airing them at key strategic times during the campaign. Flighting strategy involves intermittent and irregular periods of advertising alternating with shorter periods of no advertising at all.

May. however. Companies don't advertise fur coats in summer and suntan lotions in winter. Other goods.000 in each of the twelve months to maintain the brand awareness and spend an additional $10. Consumers' product purchase cycle. such as flowers on Mother's Day. In budget allocation terms. a consumer goods brand may spend $5. July. They can allocate more money to high-sales months and less to low-sales months. For example. candy on Halloween. and Consumers' interval between decision-making and consumption. Product categories that are sold year round but experience a surge in sales at intermittent periods are good examples.46 Pulse scheduling combines the first two scheduling methods. may lack a seasonal pattern. deodorant sprays are sold heavily during the summer months. United Airlines might also have seasonal pulses to entice winter-weary consumers to fly to sunny climes.000 in January. Advantages: • • Covers different market situations All the advantages of continuity and flighting are possible Selecting the right type: How do media planners select among continuity. an airline like United Airlines might use a low level of continuous advertising to maintain brand awareness among business travelers. and ornaments around Christmas. such as everyday products like milk and toothpaste. The pulse scheduling method takes advantage of both the continuity and flight scheduling methods and mitigates their weaknesses. Seasonality: The first. Likewise. and most important. Everyday goods may be better served by a continuity approach. March. which can serve as a guide for the allocation. September and December to attract brand switchers from competing brands. this does not mean it is good for all products and services. Media planners can use a breakdown of sales by month to identify if their brand has seasonal fluctuations. some products sell faster around specific holidays. . so that the brand maintains a low level of advertising across all months but spends more in selected months. Which method is the most appropriate for a given campaign depends on several important factors. However. and pulse scheduling approaches? The timing of advertising depends on three factors: • • • Seasonality. factor is sales seasonality. flight. For instance. Companies with seasonal products are more likely to choose flight scheduling to concentrate their advertising for the peak sales season.

travel industry advertisers will schedule their ads months before the summer. Time interval between decision making and consumption: A third factor that affects media scheduling is the time interval between when the purchase decision is made and when a product or service is actually bought and consumed. Media planners should take advance of these "unplanned" messages in a new product launch campaign. . less-frequently purchased products such as carpet cleaner or floor polisher may only need advertising a few times a year. Personal influence and market force are "unplanned" messages. instead of the actual consumption time.47 Product purchase cycle: The second factor that affects when advertising is scheduled is the product purchase cycle: the interval between two purchases. then personal influence in the form of word-of-mouth or market force (brand visibility in life and media coverage) will play a role in accelerating the adoption of a new brand. which often play an important role in new product launches. many families who take summer vacations may plan their trips months before the actual trips. The launch period may last from a few months to a year. If consumers like the product. New product launches usually require initial heavy advertising to create brand awareness and interest. Thus. soft drinks and toilet paper probably require continuous weekly advertising in a competitive market to constantly reinforce brand awareness and influence frequently-made purchase decisions. Destination advertising has to be in sync with the time of decision making. Fast-moving consumer goods such as bread. they make purchase decision in advance. In contrast. as we saw in the Wyoming example. For example. That is. Short term adjustments to planning schedule need to be made for renowned event occurring in the planning period. Some of the budget has to be shared for concentrating frequency to meet unanticipated very short term contingencies.

48 5. . negotiation and buying of media to place your ad. and have created an appropriate media schedule. In house media departments or groups are formed to perform all. they must evaluate factors based on but not limited to • • • • • station formats. Once you’ve acquired a budget. Media buying services: is a media wholesaler that purchases large amount of media time or space and then resells it to the advertisers or small advertising agencies who do not have their own media buying department. or on a commission system. along with identifying the desired TV. identified exactly who you are trying to target and exactly which medium to use. or a part of the media schedule and leave other portions of the media plan to either advertising agency or an independent media buying service. In house media group: some advertisers find it convenient and profitable to do their own media buying. Definition: The buying of advertising space from a company operating media properties. the specific times at which the advertisements are to be displayed. When planning what to buy. Radio or publications. Media buying is strategic planning. Media buyers: Media Buyers are individuals responsible for purchasing time and ad space for the purpose of advertising. MEDIA BUYING Media buying is also a sub function of advertisement media planning. the size of the advertising campaign. geographic. and psychographics relating to the advertisers particular product or service objectives. Media buying services can be compensated on a fee basis on the margin between their cost of media and their selling price. you need to purchase the media. media buying function can be carried out with the advertising agency or can be outsourced to media buying services. pricing rates. The in house media group is very common among the retailers and business-to-business advertisers. and other specific features of the advertising campaign. demographics.4. The cost of a media buy varies depending on the specific media property on which the buyer wants to advertise.

or nationally. There is an apparent distinction between General Marketing Media Buyers and Direct Response Media Buyers. the Direct Response Media Buyer is efficient in negotiating a functional rate and in purchasing media from the appropriate stations. Rates. Media Research Planning can be done by Media Buyers as well as Media Specialists. magazines. TV. are often based on hypothetical benchmarks.). and time. internet. Satellite radio. General Market Media Buyers rely on published cost per point guides which in actuality. An experienced Direct Response Media Buyer knows what stations generate a specific quantity of response and knows within reason. With these differing methodologies. Media Planners and Media Specialists have a vast array of media outlets at their disposal. Few advertising and marketing agencies are qualified to support clients in their Direct Response efforts. New media might include Satellite TV. the break even point of the expenditure versus the return. both traditional media and new media. Direct Response Marketing can be considered a specialized arena. Media Buyers can purchase spot. Traditional media would include radio. They negotiate rates and create media schedules based on a media plan constructed by a Media Planner. newspapers. This includes research on the target audience and what type of medium will work best to reach the largest amount of consumers with the most effective method.49 The Media Buyer needs to optimize what is bought and that is dependent on budget. regionally. With that information. space. and out of home. . etc. Through the Media Planner. cable TV. Media Buyers and Media Specialists must do a fair amount of research to determine how best to spend the allotted budget. and internet. and state licenses will vary from state to state. and how much time and space is wanted. The Direct Response Buyer attaches unique phone numbers to each station they purchase media from and track the sales. General Market Media Buyers enact or actualize media plans drawn up by media planners. Depending on product and service. Media Buyers might have to factor in determinates based on a state by state basis. type of medium (radio. time of day for broadcast. TV. quality of the medium (target audience. and make adjustments to the media plan and schedule as necessary to optimize results. print). demand of leads. and rather outdated models.

50 The internet offers a number of Online Media that has surfaced with the improvement of technology and the accessibility of the internet. Online Media can include emails, search engines and referral links, web portals, banners, interactive games, and video clips. Media Planners and Specialists can pick and choose what and/or which combination of media is most appropriate and effective to achieve their goal, whether it is to make a sale, and/or to deliver a message or idea. Most ad agencies and media buyers make a 15% commission on the media they purchase. This seems more like the fox watching the hen house. Media buyers are supposed to get you the best rates in the correct publications. Some media buyers are fantastic--within corporations and within outside agencies. They are well trained (especially if they have gone through the Media Buying Academy), understand the media industry from the selling and buying side, are skilled negotiators and can often garner twice the number of coverage/impressions for 60 - 70% of the best cost you can negotiate yourself (even after their “commission”). They can also strategize and make use of product placements and Positioning. Inserting advertisements as print ads in newspapers and magazines, buying impressions for advertisements on the internet, and airing commercials on the radio or TV, can be utilized by Direct Response Advertisers as well as Remnant Advertisers.

The Cost Factor:
Media buying main involves establishing and negotiating media prices. The price of media buying varies considerably. Factors to consider include: • Short or long-form • Cable network or local broadcast station • Rating and size of audience delivered • Package deals • Seasonal influences on available media inventory • Time slot for your target audience Most media have rate cards that list the cost of time and space as well as other available services. The rate paid by the advertiser is determined by the volume and the frequency of advertisements. Discounts are usually available to large volume advertisers. Media rates are also some times negotiated, particularly in broadcast and outdoor media.

51 Example: • How To Negotiate - Print Ads Media buyers keep following considerations while negotiating print space. 1. Don’t go by the rate card. Buying advertising is like buying a car. As such, there are multiple terms, options, time frames and sale techniques--of which you need to counter to negotiate, not just “buy” your medium. As such, this is not the position for the timid negotiator, unless you have a tiger behind the person talking to the ad reps that is making the final decisions. 2. Negotiate magazine position and page position. • Try and get within the first third of the magazine, since the readership is higher. • The exception is going for a front or back cover, or wish to have your ad next to an editorial (opp ed) that is reviewing your product category. • Negotiate left or right hand positioning on the page (right hand ads typically pull more). 3. Negotiate research. Magazines conduct regular readership campaigns to find out what their constituents would like to see. This information can be used as a cheap way to get quantitative research at no additional cost. They also run advertising awareness research campaigns. It is useful to negotiate some coverage in both of these as part of the placement. 4. Negotiate web site adjuncts. • Most publications nowadays have a web component of their printed publication. • Negotiating for banner ads and coverage for their on-line constituents also- -especially if they may be adding their on-line readership to their overall posted circulation. 5. Negotiate use of their mailing lists. Gain access to their list for your direct mail efforts (through a bonded mail house (they won’t just give you the list). This saves the cost of purchasing lists, and the chances of having the correct targets are very high. 6. Negotiate free ad space in special editions. 7. Negotiate more color. Some publications charge less for two colour than four. Buyers use the two color rate card and then negotiate for the extra colors as part of the buy. 8. Require approval to close. 9. Negotiate toward the best rate on the rate card, even for a short campaign. 10. Negotiate an escape clause. If they want a long-term commitment for the better rates, then buyers ask for an escape clause (ask regardless). This means that buyers can cancel the remaining ads if the publication doesn’t pull, or if the product slips or is canceled, or if the budget gets kills (especially during the 4th quarter at a large public company) without paying a short rate.

52 11. Base your value on the LPP. Sales reps will try to use cost per thousand (CPM) to establish value. This helps to know the potential reach, but the % of the total reach that matches your profile and their influence within the buying process is the most important factor. This is why buyers to use the cost per lead per publication (LPP). This ratio will cut through all the chaff and tell if you are “fishing in a stocked pond” or if you’re not fishing where your buyers swim. 12. Re-negotiate based on CPM rate For example, when deciding which publications to keep and which to drop, buyers do an analysis to get the cost per lead per publication. If there is border line, they can ask them to match the pricing that you need to keep them--or they are out. 13. Make sure the editorial matches the readership. If the sales representative uses CPM, and their editorial content for the target is only 10% of the publication, then re-quote the CPM in those terms and go from there. 14. Contract for no rate changes. Some contracts say the publication can change the rate at anytime with a 30 day notice. Buyers try a clause that says the rates are guarantee during the length of the contract. 17. See for any alliance ad deals. Buyers check if they can split the ad cost with an alliance and develop the campaign jointly (works best for products that require another to work (i.e., a modem to use AOL, etc.). 18. Negotiate the payment due terms. Some publictions require money up front, others allow to pay afterwards--this is obviously better, or worse, depending on the budget. 19. Take into account seasonal ad buying. Some publications may offer discounts during certain times of the year (it helps them solidify their ongoing business if they have commitments in advance). 20. Negotiate editorial coverage. Some publications typically have a Chinese wall between sales and editorial. However, with other publications it may be the actual editor in chief that is soliciting ad space. In these cases, buyers can actually “buy press” with their placement. It is not worded as such, but these publications will commit to reviewing the product (first looks and complete reviews) if buyers commit to advertise. If they will do it, buyers can double the number of impressions by taking advantage of their “financial connections” (some editors realize - no ads, no paycheck).

will you offer a make good to run the program until the guaranteed amount of downloads/listens/views is achieved? . the CPM. Any kind of ad space ordered on behalf of a client should be tracked with insertion orders. • The amount of time and space to be purchased. address and contact information The date and the term of the campaign The campaign elements and the name of the campaign if applicable The campaign start and end dates What to do if you don’t deliver the inventory in the stated time-frame . They are essential for accurate job costing. and reporting requirements and possible penalties or stipulations relative to the failure to deliver the impressions.for example. the ad sizes. • The dates of exposures and • The total price to be paid. An insertion order is sent to the medium along with the commercial or advertisement when the advertisement is placed. Buyers can know at any given time how much media space is ordered. The order confirms the details of the contract and explains any special requirements. IMPLEMENTATION OF MEDIA PLAN Once the media plan is finalized the next step is to implement the plan. printed order to run an ad campaign. The contract specifies • The rate earned. the medium receiving the order and the planner or buyer giving the order. the campaign beginning and end dates. An insertion order should include: • • • • • • Your name. the individual ads to be run (or who will provide them). Typically. Media plan is executed through a process of writing media contracts and issuing insertion orders: Contracts: A media contract is a document that expresses the agreement between the medium and the media buyer. Insertion or release orders: An insertion order is a formal. discounts to be applied.5.53 5. They allow media costs to be committed to a job before the publication’s invoice is posted. the insertion order identifies the campaign name. the total cost. address and contact information The buyer’s name.

54 • • • • • • The campaign costs. by units and total Reporting elements promised and frequency of the reporting Any discounts offered (prepayment etc.e.) The payment terms. net 30 days Cancellation terms Ad formats. technical specifications if required . i.

55 5. to identify what measures are most relevant to the effectiveness of media planning and buying. The guide for assessment of media plans should be the objectives. the sales result is affected by many factors. distribution and competition. the effectiveness of media plans is of particular importance. Although sales results are the ultimate measure of the effectiveness of an advertising campaign. • Whether the media plan was efficient. The media plan is one part of the advertising element within promotion. Because media spending usually accounts for 80 percent or more of the budget for typical advertising campaigns. POST ANALYSIS Post analysis refers to the evaluation of the effectiveness of the media plan. As a result. Therefore.6. such as price. Two considerations in evaluation of the media plan are: • • What to measure and How to measure . which are often out of the scope of the advertising campaign. it should be held accountable for only those tasks that are capable of performing locating and reaching target markets. Increase in sales and market share are achieved by skillful management of specific marketing activities. • Whether the media plan delivered the desired levels of reach and frequency. There are many sources of media information.the degree to which the media plan delivers the desired reach. therefore. frequency and continuity. media planners often make measures of the effectiveness of a media plan an integral part of the media plan. as more advertisers expect to see returns on their investments in advertising. most of which are designed to help the advertiser determine: • Whether the media they selected reached the designated target market. The approach to evaluating the media plan is straightforward: the most appropriate measure of effectiveness is the one that provides the most valid and reliable data of the objectives achieved. It is important. Accountability is increasingly important in media planning.

the media usually "make good" for the difference in ratings by running additional commercials without charge. For electronic media. Did the ads appear in the media vehicles in agreed-upon terms? Media buyers look at "tear-sheets" -. the effectiveness of media planning should be measured with multiple indictors. Even effective media planning may not generate anticipated cognitive. comprehension.how many of the target audience are aware of the advertised brand? • Comprehension -. Thus.56 What to Measure: Because of the hierarchical nature of the media effects. 1) The first measure is the actual execution of scheduled media placements.how many of the target audience have purchased the advertised brand as a result of the media campaign? The measured results of brand awareness. 2) The most direct measure of the effectiveness of media planning is the media vehicle exposure. On the other hand. affective and conative responses if the ads are poorly created and not appealing to the target audience.is the target audience convinced by ads? How do they like the advertised brands? • Action -. these measures should be reviewed by both creative directors and media planners to make accurate assessments of the effectiveness of the media plan. 3) Several additional measures can be made of the target audience.copies of the ads as they have appeared in print media -for verification purposes. conviction and action are often a function of both advertising creative and media planning. media buyers examine the ratings of the programs in which commercials were inserted to make sure the programs delivered the promised ratings. . If the actual program ratings are significantly lower than what the advertiser paid for.does the target audience understand the advertised brand? Is there any miscomprehension? • Conviction -. ineffective media planning may be disguised when the ads are highly creative and brilliant. Media planners ask: How many of the target audience were exposed to the media vehicles and to ads in those vehicles during a given period of time? This question is related to the communication objectives in the media objectives. such as: • Brand awareness -. then the media plan is considered to be effective. If the measured level of exposure is near to or exceeds the planned reach and frequency.

surveys can be conducted among a sampling of the target audience in the different periods of a media campaign. the reply card for subscribing to the magazine had a code of JS6D1. advertising recall. In this way. whereas feedback devices require the consumer to mail back. conducts monthly surveys on advertising recall of radio commercials in England. Radiowatch surveys 1000 adults age 1664 and asks them which radio commercials they remember hearing. in the April 3 2006 issue of BusinessWeek. Advertisers often use a different code in direct response ads to identify different media vehicles. In short. Tracking is measurement method that media buyers use to track the effectiveness of online ads. Media buyers can compare the click-through rates of the banner ad across all Web sites daily. when the Garden of Eatin' gives coupons for its tortilla chips. the most-recalled ad was for T-Mobile. whereas the reply card bound into the May 29. coupons and Web addresses can be provided in ads so that tallies of the responses or redemptions can be made to estimate the impact of advertising media. 2006 issue of the magazine had a code of JS6E2. whereas feedback devices help them evaluate the effectiveness of one media vehicle over another. because the buyers can use them to estimate the actual interaction of audience members with the interactive media. surveys can help media buyers evaluate the effectiveness of an ad in relation to other ads. the UPC code on the coupon indicates which media vehicle the coupon was in. and observation. such as in the beginning. the middle and the end of the campaign. As you can see from the Radiowatch and Garden of Eatin' examples. For example. tracking. click or call a toll-free number. For example. For example. Web servers automatically log that action in real time. with 46% of respondents recalling the ad. Surveys can ask questions about the target audience's media behavior. The logs of these visits and actions are very useful for media buyers. media buyers can assess the response rate of each media vehicle. one advantage of surveys over feedback devices is that surveys reach people who have taken no action on the product. a banner ad may have a code for each Web site where the ad is placed. to . When a user visits a Web site or clicks on a banner ad. Similarly. while the ad for Peugeot received 18%. such as whether the coupon came from the 2006 Bolder Boulder promotional calendar or from the Organic and Natural Experience (ONE) 2006 Tour book of coupons. Each method has its strengths and weaknesses. Radiowatch.57 How to Measure: The measurement of the effectiveness of a media plan can be conducted by the advertising agency or by independent research services. toll-free numbers. feedback can be collected to measure the media and ad exposure of the target audience. for instance. Feedback devices such as reply cards. In the April 2006 survey. by reviewing the different codes recorded. using methods such as surveys. feedback. Besides surveys. brand attitudes and actual purchase. An ad for McDonald's had 36% recall.

detailed data on how consumers behave in real situations in response to the marketing communication. . researchers can be stationed in grocery stores to observe how consumers react to in-store advertising or how they select an advertised brand in comparison of other brands. The advantage of observation is that it provides rich. The downside is that direct observation is more costly to conduct and tabulate.58 estimate the effectiveness of each Web site. in the physical world. Media buyers are making more use of the tracking method given the increasing use of interactive media. media buyers can use observation to collect audience reaction information at the points of purchase or during marketing events. Finally. For example.

Past Media plans were based on traditional Reach/ Frequency planning. multiple channels / publications had to be used simultaneously since usage of one at a time would not have yielded enough results to achieve the sales targets. there is a response mechanism. Unlike other companies. This was necessary since it was noticed that any peak in response at the call center resulted in too many abandoned calls and hence loss in sales opportunities.59 6. In all their creatives. interested in buying insurance for self and / or family. The additional challenge was also to streamline the responses to ensure an almost equal distribution of responses at the call center throughout. Viewing skewed to prime time due to working TG b. Multiple media and within each media. through which the consumer can directly contact them for information and the sale is also done thro’ this response mechanism. Response per spot (RPS) was not very high and Cost per response (CPR) was very high. they however do not use the advertising for only a brand awareness creation exercise. Prime time most expensive 2. (Usage of one at a time would have indicated the best performing vehicle for future use). They advertise actively using both TV and Press. . leading to the conclusion that television was not a desirable medium for response generation 3. Viewer watching Viewer calls / SMS’s Call center answers TATA AIG Ad the call center the viewer’s queries containing a resp # & sells the product Marketing Objective: To deliver the maximum response from every communication at the lowest possible cost. 4. CASE STUDIES 1) Agency: Madison Media Client: Tata AIG Background: Tata AIG is one of the leading players in the life insurance industry. so that all responses were attended to by the call center. Target audience is a light TV viewer and hence more expensive to reach a. Target Audience: Males 25-44 Sec A. but aggressively practice direct marketing using the two media. a. The Situation Analysis : 1.

etc. Stage 3 : Optimizing the media plan The media plan was then optimized using the two variables of RPS and CPR. (2) All further analysis was done on the basis of the optimal time lag. to fine tune the media plan to maximize response and minimize cost. “MATCHPOINT” was then created in order to handle the large amounts of data and to do the data fusion process on an ongoing basis. Which are the best channels on both RPS and CPR ? 2. using the TVR of the spots to allocate the responses proportionately to the spots within the lag time. Which channel gives us the best conversions ?…. A technique known as “Data Fusion” was used to fuse the two databases on common variables. Stage 2 : Response attribution stage Response data collected at the Tata AIG Call Centre was analyzed alongwith the spot telecast data from TAM Adex. The objective was to maximize RPS while minimizing CPR. TV ADEX (Campaign Activity) TATA AIG CALL CENTRE (Responses) DATA FUSION The following questions were thus easily answered : 1. Which channel gives us maximum responses in the metros ? 5. in order to attribute the response generated by each spot. use that system. The complex algorithm consisted of two steps : (1) Mapping the spot telecast time to the responses generated time at different lag intervals.60 5. Which are the best timebands ? 3. Which timeband within each channel is the most effective ? 4. A special software. The optimal time lag (which is the lag time by which the bulk of the responses are generated) was thus identified. so as to minimize the turnaround time for the data analysis. devise a system to attribute the response generated accurately to the medium / vehicle generating that response b. . Hence. The key challenge at this stage was to match the huge number of responses generated with the individual spots which generated those responses (from the multiple spots which were on air simultaneously). The Solution & Execution : The media strategy was worked out in three stages : Stage 1 : Experimentation stage One or two channels were chosen from all the major genres and spots were taken across different timebands in each of the channels. the challenge was to : a. This matching of responses to spots was done using a complex algorithm. This stage was limited to a very few days due to the cost constraints.

Myth 2 : A media plan without high TVR programmes on mass channels does not really deliver. Myth 1 : High TVR programmes have to be a part of the media plan. etc Result: Nearly 3. opening times. address and a link through to the National Army Museum website. . Response Summary: Total Media suggested that in order to encourage people to visit the collection of Painting the Troubles artwork they could use a virtual gallery to give a sneak preview of what was on offer in the museum. all attendance targets were met and the client was extremely happy with the campaign results. A very clear. b. 2. NOT REALLY. optimized media plan was arrived at which helped in maximizing responses at minimal cost. Following monitored attendance figures against advertising activity.000 users visited the National Army Museum microsite and over 800 users clicked directly through to the museum’s own website. They are really not very good on CPR. • The Telegraph was selected as a good fit both in terms of the audience profile and their extensive coverage of the Arts & they negotiated an ‘advertorial’ style campaign that ran over a 2 month period • This gave the opportunity to not only showcase the exhibition but also to convey essential information about the museum itself – location. There were quite a few myths which were busted along the way : a. They recommended the creation of a microsite which included a revolving picture gallery as well as details of opening times.61 Result : 1. 2) Agency: Total Media Group Client: National Army Museum Brief: Raise awareness of the Painting the Troubles exhibition and drive footfall to the museum.

display ads. and would help them reach the Spanish-speaking community of Las Vegas. reciprocal mailings. To achieve this goal. they had only filled half of the associate positions. press inserts. making it vital to find a solution that could quickly garner more hires. Millions have fled their destroyed villages.000. they ran radio spots on their local stations and placed print ads in the local Spanish papers. The TV was pre-tested in the UK using whole page copy on back page of the Guardian and "washed its face" so TV stage beckoned first in ROI. At the start of the conflict world attention was not focused on Darfur and this crisis needed immediate attention and money. the Dublin based international relief and development charity adopted a fiveyear growth strategy based on direct marketing. door drops. with many heading for camps near Darfur's main towns. An emergency conflict began in the impoverished region of Darfur after a rebel group began attacking government targets. One particular event needing immediate attention happened in early 2003.000 to 95. By mid March. Campaigns pursuing monthly donors have used a wide variety of integrated media including: cold direct mailings. to help focus attention AND raise funds on main TV and cable stations in the Republic of Ireland. .62 3) Agency: Total Media Group Client: Concern Worldwide Brief: Concern. Result: Concern’s 5-year goals have been achieved within two years. it would also be much faster than a traditional direct mail postcard. targeted solution. during which fundraising income increased by 76% and regular donors have rocketed from 8. Response Summary: Total Media Charities & Campaigning Organisations worked with Concern to get a direct response ad made at speed. water or medicine for the huge numbers of displaced people affected by the fighting and rebel attacks. But there is not enough food. It was not only a low-cost. Winner 2002 Institute of Direct Marketing Custometrics / Marketing Week Business Performance Gold Medal 4) Agency: Bernard Hodes Group Client: CITIBANK Direct Mail/Diversity Assess: Citibank's Las Vegas call center needed to hire 30 Bilingual (Spanish/English) Customer Service Sales Associates by the end of the first quarter. Strategize: The agency’s strategy entailed finding a solution that was quick and cost-effective. email and banner ads all in addition to DRTV. They decided on an e-mail blast as it could provide everything needed.

which is on par with the expected outcome for this type of solution.000 Spanish-speaking candidates in the Las Vegas area.” When interested candidates clicked on the link. An e-mail promoting the associate positions was sent out to approximately 14.63 Implement: They purchased a third-party e-mail list and created a jump page (www. The blast quickly resulted in 6 additional hires for Citibank. The subject line became “Great careers with Citibank. statistics gathered from the microsite showed that over 150 unique visitors went to the page.com) to exclusively target Spanish/English bilingual candidates. with 1% of recipients clicking through to the landing page.citifamily. It received a 3% open rate. they were taken to the jump page. In addition. Measure: The e-mail blast was effective in targeting the candidates we were looking for. Citibank Nevada has the perfect opportunity for you. Click here to learn more about immediate openings for Customer Sales/Service Associates. . and the client was extremely pleased with the results. enthusiastic and able to communicate in both English and Spanish.” and the body copy was “If you're ambitious. which included information on accolades Citibank has received for their work with the Hispanic community and allowed them to apply online.

64 7. such that a separate department with a media planner exists in an agency to carry out this function. Media planning plays an important role in advertisement management. 4. 3. reach. WAP. SMS advertising. in this project we see how it is not enough to stop at creating an advertisement but also need to pay equal attention to the planning of media to disseminate the information. These emerging media vehicles are 1. . ATM centers. Cable Advertising. All these further enhance the importance of media planning so as to ensure effective reach of the advertising message at controlled costs though innovations. More and more medium of communications are being developed. Net Advertising. Today. organizations are continuously innovating and coming out with new products. Communicating with people has become very easy and economical. In this project we saw step-by-step the various stages in media planning • • • • • Media brief Media strategy and plan Media buying Implementation and Post analysis The project also discusses about how various factors such as target audience. CONCLUSION In conclusion. cost efficiency etc affect the media plan given a specific budget and objective. frequency. 6. 5. Creating an advertisement without considering planning of media is a huge mistake because there are lesser chances of your message reaching the target market. Kiosks. 2. Ways of communicating with people are changing. India also has revolutionized with these emerging innovative media vehicles. and so are being developed the – media vehicles.

WEBSITES 1.org Yahoo. 6. Advertising. Marketing Management (Analysis.65 8.com . Kent Lancaster and Margaret Toomey. BIBLIOGRAPHY BOOKS 1. 2.com Bernardhodesgroup.com Totalmedia. 5.com Admedia.uk Madisonindia.Philip Kotler.co.Peggy J. 3. Advertising media planning. 7.com Ask. Design and Media—study material of Welingkar Institute of Management Development and Research. 3. 2. Planning. 4. Kreshel. Agencyfaqs. and Control). Implementation.

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