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The Advertising Budget
Setting the Budget
Percentage of Sales Need-based Plan Competitive Budgeting The Task or Objective Method
What’s the objective? What type and how much media needed? Can we afford it?
Administering and Protecting the Budget
Organization of the Media Function
Media planner Media buyer Media researcher
Telemarketing Fax Mail iTV Customer Service PDAs
Point of Sale Face-to-Face
Branded Mobile Phone Sites
Media Opportunities Idea
Placement/ Product Sampling Newsprint
Outdoor Full-page Banners
Screens on Exercise Bikes
Branded Web Content Branded CDs
Image Content Scanner
Bar Code Scanner
the Nobel Prize laureate.Communication Roger Sperry. with their very specific functions: Text Intuition Language Simultaneous comprehension Abstraction Linearity 3-dimensionality . introduced the concept of the two hemispheres of the brain.
Communication Still images Text The best communication stimulates both side of the brain. Moving Intuition Language Simultaneous comprehension Abstraction Linearity 3-dimensionality .
Important Trends in Media Convergence Interactivity Creativity Optimization .
Pages 3 Outdoor 2 Internet 17 Misc 20 .20 17 2 3 16 10 15 Newspaper Magazine Broadcast Cable Radio 18 Yellow Pages Direct Mail 35 5 18 Bus. Pages Outdoor Internet Misc Newspaper 16 Magazine 10 Broadcast 15 Cable 18 Radio 18 Yellow Pages 5 Direct Mail 35 Bus.
Which is most important? Picking the correct media or having great creative? What are the types of media? Checking Share of Voice vis a vis competition.Media Defined The vehicles that carry the ads to the target market. .
Media Planning Media Planning is the process of designing and scheduling time and space to achieve marketing and advertising objectives. . Media Mix is a combination. A Medium or a media vehicle is a single form of communication.
Media strategy: statement in media plan that .Key Media Terms Media objective: statement in media plan that explains the goals of the plan. and at what cost. shows where and when advertising messages will appear. outlines how objectives will be accomplished. and how often. usually states how many of the target will be exposed to advertising messages in a given time period.
ETC.Methodology MARKET / TARGET AUDIENCE ANALYSIS | MEDIA OBJECTIVES | ASSESSMENT OF CANDIDATE MEDIA/COMPETITIVE ACTIVITY. | CREATIVE CONSIDERATIONS | STRATEGY DEVELOPMENT | PRELIMINARY MEDIA NEGOTIATIONS | MEDIA STRATEGY + PLAN | MEDIA BUYING | POST-CAMPAIGN REVIEW/ASSESSMENT .
costs ) Sales. message. . Competition ) Media Sources ( Popularity.Setting Media Objectives Creative Sources ( theme. research ) Marketing Sources ( Distn. profiles.
Target Audience Getting your number right in terms of demographics… Slide 55 .
Market Prioritization Chart High MP Low MS Low market share High MS High market share but Good market potential and Good market potential High market share Low MP Low market share and poor market potential but monitor for sales decline Slide 55 .
Media Selection Considerations Cost per Contact 4 Factors Influencing Media Mix Decisions Reach Frequency Audience Selectivity .
. The ability of an advertising medium to reach a precisely defined market. The number of times an individual is exposed to a message during a time period. 4 Frequency Audience Selectivity The number of target consumers exposed to a commercial at least once during a time period.Media Selection Considerations Cost per Contact Reach The cost of reaching one member of the target market.
00 30.000 B-.:30 TV Commercial in ―Friends‖ $250.50 CPM = 20.:30 TV Commercial in ―Monday Night Football‖ $300.000.CPM* Formula and Example CPM = Cost X 1.000.000 Audience Which is more cost efficient on a CPM basis? A-.000 CPM = X 1.000 = $10.000 X 1.000 = $12.000 *M stands for the latin word Mille or 1000 .
Media Planning Process – Cost per Thousand Which publication is more cost efficient ? Cost of Qtr Page Paper A Paper B Rs 3.000 CPM = Cost Reach x 1000 .00.00.000 4.360 Rs 2608 Reach 6.
00.000 x 1000 = 6.00.000 x 1000 = 5.360 Rs 2608 Reach 6.Media Planning Process – Cost per Thousand Which publication is more cost efficient ? Cost of Qtr Page Paper A Paper B Rs 3.000 CPM = Cost Reach x 1000 Paper A : 3360 / 6.00.00.60 Paper B : 2608 / 4.000 4.52 .
. Geographic Selectivity is the ability of a medium to cover a particular geographic area without spillover.Media Selection Media are evaluated based on selectivity. There are two types of selectivity: Class Selectivity is the ability of a medium to reach the target market without waste.
Media Planning Reach (% of target audience with opportunity for exposure to media vehicle(s) or media plan in a given time frame) + Frequency (average number of times target is likely to be exposed to the ad in a given time frame) 100% .
Media Planning Process – Reach Reach is the percent of target audience who have the potential hear.000 Readers of Paper A : 6.00.000 Reach = Readers / Population x 100 6. Total Population : 1. or read the ad at least ONCE.200.00000 / 1200000 x 100 = 50% One ad in Paper A achieves 50% reach .
The Difference between Reach and Frequency .
Unduplicated Reach : Takes into account common readership of 2 or more publications .
000 5.000 1.000 • Reach 3.Reach/Frequency Inverse Relationship 6.000 4.000 • 1 2 3 4 5 6 7 8 9 10 • Frequency Slide 53 .000 2.
Advertising Response Curves Threshold Response Response Frequency Frequency a. Convex response curve . S-shaped response curve Slide 54 b.
OTS – is the Opportunity to see OTS = Reach of Target * freq Target Audience .Media Planning Process –Frequency or OTS The number of times on average the TA sees or hears the ad.
Research .Media Planning Information Sources Press – National Readership Survey . ABC TV – TRPs ( total rating points ) Radio .
Quantitative models to evaluate and optimise multi media plans to identifie and define target audience profile beyond sheer demographics to track and alert planners of under deliveries .a tool that evaluates radio plans using NRS for non-ILT markets a tool that helps in quantifying IMPACT GRPs helps in maximizing media ROI to helps in measuring media responsiveness to help in harnessing the potential of small towns in India through SCRs to hels in segmenting ads by copy strength to help in quantifying decay rate and can also be used for scheduling to help in understanding the relationship between media inputs & output measures such as call-ins. walk-ins etc MULTIVARIATE ANALYSIS .attempts to map consumer insights and the delivery mechanism .
Press Plan .000 506.300 Ananda Bazar Patrika People West Bengal Daily 1 400 B/W RHP 1155 462.000 23.600 Nav Hind Panaji Daily 1 400 B/W RHP 70 28.Sample Publicati on Edition Frequen cy Ins Unit Size Col/B/W Position Cost per Sq cm Gross Cost Net Cost TOI New Delhi Daily 1 400 Color RHP 1995 798.500 Hindu Chennai Daily 1 400 B/W 1.490 596.700 National M 2 FPC Color Opp 1st Content Page Page 5 100000 1700000 144.000 392.000 678.800 .
000 Zee Studio Mon-Sun 18002400 800 30 123 3690 295.TV Plan .200 UTV Movies Shandar Sunday Sunday 2030hrs 600 30 9 270 16200 Star World Moment of Truth Prime Time Movies Tuesday 21002200 4000 30 4 120 48.750 Mon-Fri 07001000 3400 30 6 180 61.00 6750 30 15 450 303.200 .Sample Channel Program Date Time Rate / 10 secs Duration Spots FCT Cost Remarks ESPN / Star Sports CNN-IBN English Premier League News Sat-Sun 23.
if would reach 12 * the number of households . For example if a top rated Program is rated 12.TV Ratings Rating = HH tuned to show Total HH A rating point of 1 represents the total HH’s .
Sample City Theatre Location CAPA CAT Rate/ Week M Tax Tax Basis #Weeks Cost Delhi NCR PVR Ambi-1(D) Gurgaon 44 A+ 14000 Nil NA 5 70000 N Delhi PVR Priya Vasant Vihar 944 A+ 50800 2880 PA 6 304800 New Delhi 3C’s Lajpat Nagar 315 A+ 25000 2880 PA 6 150000 Bangalore Fun Cinmeas1 PVR Mulund 5 Cunnigham Rd 447 A+ 15000 550 6 Weeks 6 90000 Mumbai Mulund 314 A+ 27910 Nil na 5 139550 .Cinema Plan .
Compare actual reach/frequency figures to proposed estimates. Nielson. Audit Bureau of Circulation Syndicated Media Research Services . and after. tearsheets. during.Evaluating the Media Plan Follow up—getting make-goods. Arbitron. Simmons. Measuring the impact: Test consumer awareness of campaign before. Sales data.
Pre & Post Evaluation Markets GRP Index Average Frequency 1+ 2+ etc Delhi Gujarat Karnataka Punjab .
Total budget is Rs. 200 lakhs.Activity Work out a Media Plan for SOIL to attract best students from India .000 per spot Cable TV Rs 5000 per week Outdoor Rs 15000 per month Work out a media plan for SOIL . Cost of media are : Media / Publication Circulation Rate per sq cm Mainline Daily 500000 2000 Business Daily 100000 1000 FM Radio Rs 2000 per spot Prime Time TV Rs 200.
Media Scheduling (continued) (the attention-getting ability of the media vehicle(s) selected to run the ad) Reach + Frequency + Continuity + Dominance/Impact 100% .
Media Scheduling Continuous Media Schedule Flighted Media Schedule Pulsing Media Schedule Types of Media Schedules Seasonal Media Schedule .
Flighted Media Schedule Pulsing Media Schedule Seasonal Media Schedule Advertising is run heavily every other month or every two weeks. Advertising combines continuous scheduling with flighting. Advertising is run only when the product is likely to be used. .Media Scheduling Continuous Media Schedule Advertising is run steadily throughout the period.
and Continuity Relationships with a Fixed Budget .Reach. Frequency.
Sample Flowchart of a Media Plan .
Intimacy. and local targeting. and ability to change message quickly. A single message. Slide 56 . movement. quick placement. TV Radio Direct Mail Outdoor Local targeting. 3-D. Demonstration. prestige factor. simple message. and color. Magazines High-quality graphics/reproduction. Combines sight. loyal following. and highly personal. color. sound. color. Measurable. graphics. graphics.Media Selection: Quicklist of Advantages Medium Newspapers Advantages Many ad sizes available. and larger than life.
Provide Information to Media Planners 2. Select the Media 3. 6.Media Buying Media Buyers Function 1. Monitor the media plan performance 5. Evaluate the Media Choices after the campaign. Handle all Billing and Payment Slide 56 . Negotiate cost / Make Media buy. 4.
restaurants Supermarkets Military bases Blimps Resorts Trucks Cinemas College newspapers .Examples of Nontraditional Media Inflight Events Road signs Aladdin’s Castle Beyond the Wall Channel One CineSpot CNN Airport Network Cover Concepts Book Covers Go Cards Instant Coupon Machine Military MediaBoards Miller Airship Resort Sports Network Roadmark Fleet Advertising Screenvision U Airplanes Supermarkets Mandis Malls College posters High schools Cinemas Airports High schools Health clubs.
Share: Households/persons using television (HUT. PUT): % of homes or people watching TV at a given time. or receiving specific magazine or newspaper. number of audience exposures x number of times they will see or hear vehicles. Audience: number or % of homes or persons using a media vehicle. . Coverage: Same as reach – the % of homes or persons receiving broadcast signal within specified area. Gross rating point (GRP): total number of ratings for different media vehicles. Gross impression: translation of GRPs into people.Evaluating the Media: Key Terms Rating point: the % of a given population group that uses a specified media vehicle. Cost per rating point (CPP): cost of buying one rating point in a given media vehicle or type.
. Continued Circulation: Total number of copies of a publication sold through various forms of distribution. Readers per copy: average number of people who read each issue of publication.Evaluating the Media: Key Terms.
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