Chapter 8

Media Planning and Buying

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Learning Objectives
Learn about major decisions involved in media planning. Understand fundamental terms of media planning. Learn how to calculate media measures. Learn to use secondary data frequently used in media planning.
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Media Planning
“I know half the money I spend On advertising is wasted, but I Can never find out which half.” (JW)

What is media planning?
--The process of designing a course of action that shows how advertising time and space will be used to contribute to the achievement of marketing objectives.
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Problems in Media Planning
Insufficient information Inconsistent terminologies Time pressures Difficulty measuring effectiveness

Staging a Media Plan
A Media Plan is a Written Document that Summarizes the Recommended Objectives, Strategies, and Tactics Pertinent to the Placement of a Company’s Advertising Messages.
Background and Situation Analysis Media Objectives & Aperture Opportunities Strategy: Selection of Media Flow Chart Scheduling & Budgeting
Discusses Media Options, Opportunities and Target Audience. Goal or Task that Media Can Accomplish Based on Aperture Opportunities. Explains Why a Single Medium or Set of Media is Appropriate. Media Buyers Convert Objectives and Select, Negotiate, & Contract for Media Space.
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Consumer Attitudes Toward Media (abbreviated)
Authoritative Influential
3% 11% 20%

2% 3% 9% 5%
57%

81%

9%

Television Radio

Newspapers Magazines

Don’t know

Changes in Percentage of Network Commercial by Length
100% 80% 60% 40% 20% 0% Other 60 30 15

1965

1975

1985

1987

1988

1990

1992

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Setting Media Objectives
The Basic Goals That Direct Media Strategy Typically Focus on:
Whom to Advertise To Which Geographic Areas to Cover When to Advertise What the Duration of the Campaign Should Be What the Size or Length of the Ad Should Be
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Specifying Media Objectives
1. What proportion of the target audience should be exposed to our message “Reach” 2. How often should the target audience be exposed to our message? “Frequency”
-- “Motivational frequency” -- “Effective reach and frequency”

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Advertising Response Curves
Response Response

Threshold

Frequency

Frequency

a. S-shaped response curve

b. Convex response curve

When high frequency is required
A new brand A smaller, less known brand A low level of brand loyalty Relatively short purchase and use cycle With less involved (motivated and capable) target audiences With a great deal of clutter to break through (Joseph Ostrow at Y & R, JAR, 11 1984)

Specifying Media Objectives (cont’d)
3. How much total advertising is necessary to achieve the reach and frequency objective?
“Weight” (GRPs/TRPs, Gross Impressions) - FCB research: no awareness with <1000 GRPs

4. How to schedule the advertising campaign?
“Scheduling” or “Continuity” - Continuous scheduling - Pulsing - Fighting

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Three Methods of Media Scheduling
Continuity

Flighting Pulsing

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Specifying Media Objectives (cont’d)
5. What is the least expensive way to accomplish media objectives?
“Cost”: Absolute and relative costs - CPM or CPP: Measures cost efficiency

6. Other considerations -- Geographic coverage
-- Qualitative media environment -- Recall research

* Confusing terms

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EXH 9-11

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How to Use Reach and Coverage
Use Reach
To express a whole number or percentage of different people actually exposed only once to a media vehicle to combination of vehicles.

Example: Television program X reaches 9 million men aged 18-34 within a four-week period. Example: Magazine Y has a reach of 25 percent of men aged 18-34 with an average issue.
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How to Use Reach and Coverage
Use Coverage To express the potential audience of a broadcast medium or the actual audience of a print medium exposed only once.

Example: A network television program may have a coverage of 95 percent of TV homes in the U.S. Example: Magazine Y has 25 percent coverage of men aged 18-34. (Means same as reach.)
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Some Basic Terms Used in Media Planning
•Gross impressions: the sum of the audience of all media vehicles used within a designated time period
–Jeopardy: 3,270,000 x 4 messages =13,080,000 –People: 8,620,000 x 2 messages = 17,240,000 –Time: 1,700,000 x 2 messages = 3,400,000
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–---> 33,720,000 gross impressions

Relative Cost: CPM
= Cost of ad space X 1,000 /number of readers
Time Per-page cost: $156,000 Number of readers: 4.0 MM CPM: $156,000X1,000/ 4.0 MM =$39.00 Newsweek Per-page cost: $144,000 Number of readers: 3.1 MM CPM: $144,000X1,000/ 3.1 MM =$46.45
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Relative Cost:CPRP
= Cost of ad time/Program rating
Drew Carey Cost per spot ad: $3,500 Rating: 11 CPRP: $3,500/11 =$318.18 Survivor Cost per spot ad: $4,000 Rating: 15 CPRP: $4,000/15 =$266.64
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Super Bowl Options
Scenario 1 ($891,000; one 30-second spot on one primetime show each night of the week)
Monday: Murphy Brown (CBS) Tuesday: Coach (ABC) Wednesday: 48 Hours (CBS) Thursday: Wings (NBC) Friday: Picker Fences (CBS) Saturday: The Commish (ABC) Sunday: CBS Sunday Night Movie Comparison with Super Bowl XXVШ Ratings points: +48% Reach: +6%
Source: N. W. Ayer (1994) Notes: Ratings points/reach comparisons are based on adults 18-49. Reach is based on actual delivery of each schedule from the week of November 15, 1993. Nielsen’s cumulative audience data were used for this analysis. Costs were based on October Media Watch figures. A single Super Bowl commercial (30 seconds) cost $900,000 in 1994.

Scenario 2 ($895,000; a 30-second prime-time “roadblock” on Sunday and Monday nights)
Sunday: ABC Sunday Night Movie CBS Sunday Night Movie NBC Sunday Night Movie Married …With Children (Fox) Monday: Day One (ABC) Dave’s World (CBS) Blossom (NBC) Fox Movie Comparison with Super Bowl XXVШ Rating point: +64% Reach: +25%

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Some basic terms used in media planning (cont’d)
GRPs: the sum of the total exposure potential of a series of media vehicles as a % of the audience population -- GRPs = Reach x Average frequency TRPs: ….. As a % of the target audience population
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U.S. Main Media Volume (in percentage), Analyzed by Media Groups
Total Newspaper Magazine Television Radio Outdoor
1998.

1978 100.0 43.5 14.0 30.8 10.1 1.6

1997 100.0 37.6 8.9 40.1 12.1 1.3

SOURCE: reprinted with permission from Advertising Age, various dates. Copyright Crain Communications Inc.,

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Using Electronic Media
T y p e s o f T e le v is io n A d v e r t is in g
N e t w o r k A d v e r t is in g
- S p o n s o r s h ip - P a t ic ip a t io n

S p o t A d v e r t is in g
- N a t io n a l a n d L o c a l

S y n d ic a t io n
- O f f - n e t w o r k s y n d ic a t io n v . f ir s t - r u n s y n d ic a t io n - S t r a ig h t c a s h v . b a r t e r s y s t e m

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Using Electronic Media
Rating/Share/HUTS CDI and BDI

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Rating =
Share =

Total HHs tuned to a program Total HHs with TV set at home
Total HHs tuned to a program Total HHs with TV set on

×100
×100

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HUT=

Total with set HHs TV on ×100 Total with set home HHs TV at

Rating Share HUT = ×

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CDI and BDI
The Brand Development Index (BDI) helps
marketers factor the rate of product usage by geographic area into the decision process.

BDI=

percentage ofbrand total sales the to U.S. in market ×100 Percentage U.S. oftotal population inmarket

The Category Development Index (CDI)

is computed in the same manner as the BDI, except it uses information regarding the product category (as opposed to the brand) in the numerator.

CDI=

Percentage ofproduct category sales market total in ×100 Percentage U.S. oftotal population inmarket
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Using CDI and BDI to determine market potential
CDI=
Percentage ofproduct category inUtah/Idaho sales ×100 Percentage U.S. oftotal population inUtah/Idaho

2% = × 100 1%

= 200

BDI=

1.2% = × 100 1%

percentage brand inUtah/Idaho oftotal sales ×100 Percentage U.S. oftotal population inUtah/Idaho

=120
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Using BDI and CDI Indexes
v
High CDI Low CDI High BDI
High market share Good market potential High market share Monitor for sales decline

Low BDI
Low market share Good market potential Low market share Poor market potential

High BDI and high CDI High BDI and low CDI

This market usually represents good sales potential for both the product category and the brand. The category is not selling well, but the brand is; probably a good market to advertise in but should be monitored for declining sales. The product category shows high potential but the brand is not doing well; the reasons should be determined. Both the product category and the brand are doing 30 poorly; not likely to be a good place for advertising.

Low BDI and high CDI

Low BDI and low CDI

Using Printing Media
Newspaper rate
-- SAUs (Standard Advertising Unites) in 1984 -- Flat rate v. open rate -- Run-of-paper v. preferred position rate -- Combination rate: several nps as a group -- National advertisers pay much more for newspaper space
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Using Print Media
Magazine circulation

Primary circulation (in-home readers):
Subscription + news stand (a single copy circul.)  A basis for rate structure

Secondary circulation (out-of-home readers)  Paid circulation v. controlled circulation  Guaranteed circulation v. verified circulation  ABC (Audit Bureau of Circulations)  Total audience=readers per copy x circulation of an average issue

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SMRB/MRI Reading
Base: Female Homemakers Top Row: There are 86,474,000 female homemakers in the U.S. Column A: 77,418,000 female homemakers use breakfast cereals. Column B: All female homemakers using breakfast cereals is equal to 100% (i.e., base). Column C: 89.5% of the total female homemakers use breakfast cereals .
77,418,000 ×100 = 89.5% 86,474,000
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Second Row: There are 3,925,000 female homemakers who read the magazine, Money. Column A: 3,448,000 readers of Money use breakfast cereals. Column B: 4.5% of all users of breakfast cereals read Money. 3,448,000 Column C: 87.8% of Money readers are users of breakfast cereals 3,448,000 Column D: Money readers are 2% less likely to use breakfast cereals than all U.S. female homemakers

77,418,000
3,925,000

×100 = 4.5%

×100 = 87.8%

.

87.8 ×100 = 98 89.5
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Review
Learn about major decisions involved in media planning. Understand fundamental terms of media planning. Learn how to calculate media measures. Learn to use secondary data frequently used in media planning.
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