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Media Planning and Strategy

10
McGraw-Hill/I rwin
2004 The McGraw-Hill Companies, I nc., All Rights Reserved.
Media Terminology
Media Planning - A series of decisions involving
the delivery of messages to audiences.
Media Objectives - Goals to be attained by the
media strategy and program.
Media Strategy - Decisions on how the media
objectives can be attained.
Media - The various categories of delivery
systems, including broadcast and print media.
Broadcast Media - Either radio or television
network or local station broadcasts.
Media Terminology
Print Media - Publications such as newspapers
and magazines.
Media Vehicle - The specific message carrier,
such as the Hindustan Times or Radio City.
Coverage - The potential audience that might
receive the message through the the vehicle.
Reach - The actual number of individual
audience members reached at least once by the
vehicle in a given period of time.
Frequency - The number of times the receiver
is exposed to vehicle in a specific time period.
Problems in Media Planning
Lack of information
Inconsistent terms
Serious time pressure
Measurement problems
Media Use Decision
Print
Media Use Decision
Broadcast
Media Use Decision
Other Media
Creative Strategy Plan
Developing the Media Plan
Setting Media Objectives
Selecting Media Within Class
Selecting Broad Media Classes
Determining Media Strategy
Marketing Strategy Plan Situation Analysis
Developing the Media Plan
Analyze the Market
Establish Media Objectives
Develop Media Strategy
Implement Media Strategy
Evaluate Performance
Where to Promote?
Brand and Category Analysis
Percentage of brand to total
U.S. sales in market
Percentage of total U.S.
population in market
BDI = X 100
Brand Development Index
Percentage of brand sales to
total all India brand sales in
given market
Percentage of total Indian
population in given market
Brand Development Index
Maggi
sales in
Assam
tonnes

Maggi
sales
all India
tonnes
Population
of Assam
million

Population
of India
million
BDI
350 2800 35 1400
(12.5%) (2.5%) 12.5/2.5x100=500
Where to Promote?
Brand and Category Analysis
Percentage of product sales
in given market to All India
category total sales
Percentage of total Indian.
population in given market
CDI = X 100
Category Development Index
Category Development Index
Noodle
sales
in
Assam
tonnes

Noodle
sales
all
India
tonnes
Population
of Assam

Population
of India
million
BDI
450 4500 35 1400
Category Development Index
Noodle
sales
in
Assam
tonnes

Noodle
sales
all
India
tonnes
Population
of Assam

Population
of India
million
BDI
450 4500 35 1400
(10%) (2.5%) 10/2.5x100=400
Brand and Category Analysis
High market share
Good market
potential
High market share
Poor market
potential
Low market share
Good market
potential
H
i
g
h

C
D
I

L
o
w

C
D
I

Low market share
Poor market
potential
High BDI Low BDI
Brand and Category Analysis
The market usually represents
good sales potential for both
the product and the brand.
The category isnt selling well
but the brand is; may be a
good market in which to
advertise but should be
monitored for sales decline.
The product category shows
high potential but the brand
isnt doing well; the reason
should be determined.
H
i
g
h

C
D
I

L
o
w

C
D
I

Both the product category and
the brand are doing poorly;
not likely to be a good place
to advertise.
High BDI Low BDI
Media Planning Criteria Considerations
The media mix
Target market coverage
Geographic coverage
Scheduling
Reach versus frequency
Creative aspects and mood
Flexibility
Budget considerations
Target Audience Coverage
Population excluding target market
Target market
Media coverage
Media overexposure
Coverage
Exceeding
Market
Partial
Market
Coverage
Full
Market
Coverage
Target
Market
Proportion
Three Scheduling Methods
Continuity
Pulsing
Flighting
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Reach and Frequency
Reach of Two Programs Reach of One Program
Unduplicated Reach of Both Duplicated Reach of Both
Total market audience reached Total market audience reached
Total reached with both shows Total reach less duplicate
Weight metrics
How much advertising volume is
required to achieve advertising
objectives

Gross ratings (GRP)
Target ratings (TRP)
Effective ratings(ERP)
GRP
Gross weight that a particular
advertising campaign has
delivered
(Duplicated audience)
GRPs= Reach x Frequency

TRP
Adjust vehicle ratings to reflect
just those individuals who match
the advertisers target audience
TRPs are non wasted weights
ERP
An advertising schedule is effective
only if it does not reach members
of the target audience too few or
too many times during the media
scheduling period(typically, one
month)
Graph of Effective Reach
Effects of Reach and Frequency
1. One exposure of an ad to a target group within a
purchase cycle has little or no effect in most
circumstances.

2. Since one exposure is usually ineffective, the central goal
of productive media planning should be to enhance
frequency rather than reach.

3. The evidence suggests strongly that an exposure
frequency of two within a purchase cycle is an effective
level.

4. Beyond three exposures within a brand purchase cycle or
over a period of four or even eight weeks, increasing
frequency continues to build advertising effectiveness at
a decreasing rate but with no evidence of decline.
Effects of reach and frequency
5. Although there are general principles with respect
to frequency of exposure and its relationship to
advertising effectiveness, differential effects by
brand are equally important

6. Frequency response principles or generalizations
do not vary by medium.

7. The data strongly suggest that wearout is not a
function of too much frequency. It is more of a
creative or copy problem.

Alternative plans - Rs 1.2 Cr
Plan
A:100%
TV
Plan B:
67% TV,
33% radio
Plan C:
TV(50%),
magazines(
50%)
Plan D:
TV(67%),
Outdoor(33
%)
Reach%
(1+ exposures)
69 79 91 87
Effective reach
(3+ exposures)
29 48 53 61
Frequency 2.8
GRPs 193
ERPs 81
Cost/GRP 62,176
Cost/ERP 148,148
Shimp, IMC, 2007, Cengage
Alternative plans - Rs 1.2 Cr
Plan
A:100%
TV
Plan B:
67% TV,
33% radio
Plan C:
TV(50%),
magazines(
50%)
Plan D:
TV(67%),
Outdoor(33
%)
Reach%
(1+ exposures)
69 79 91 87
Effective reach
(3+ exposures)
29 48 53 61
Frequency 2.8 5.5 3.2 6.7
GRPs 193 435 291 583
ERPs 81 264 170 409
Cost/GRP 62,176 27,586 41,237 20,583
Cost/ERP 148,148 45,455 70,588 29,340
Shimp, IMC, 2007, Cengage
Alternative plans - Rs 1.2 Cr
Plan
A:100%
TV
Plan B:
67% TV,
33% radio
Plan C:
TV(50%),
magazines(
50%)
Plan D:
TV(67%),
Outdoor(33
%)
Reach%
(1+ exposures)
69 79 91 87
Effective reach
(3+ exposures)
29 48 53 61
Frequency 2.8 5.5 3.2 6.7
GRPs 193 435 291 583
ERPs 81 264 170 409
Cost/GRP 62,176 27,586 41,237 20,583
Cost/ERP 148,148 45,455 70,588 29,340
Shimp, IMC, 2007, Cengage
Is D the best? How critical is visual consumption of proposition? Not necessary that D is best.

It is better to be vaguely right than precisely wrong
Marketing Factors Important to
Determining Frequency
Brand history
Brand share
Brand loyalty
Purchase cycles
Usage cycle
Competitive share of voice
Target group
Message or Creative Factors Important to
Determining Frequency
Message complexity
Message uniqueness
New vs. continuing campaigns
Image versus product sell
Message variation
Wearout
Advertising units
Media Factors Important to
Determining Frequency
Clutter
Editorial environment
Attentiveness
Scheduling
Number of media used
Repeat Exposures
Determining Relative Cost of Media
Cost of ad space
(absolute cost)
Circulation
CPM = X 1,000
Cost per thousand (CPM)
Determining Relative Cost of Media
CPRP =
Cost of commercial time
Program rating
Cost per rating point (CPRP)
Television Characteristics
Advantages

Mass coverage
High reach
Impact of sight, sound,
and motion
High prestige
Low cost per exposure
Attention getting
Favorable image
Disadvantages

No more the lead
media for young
Channel surfing
Short message life
High absolute cost
High production
costs
Clutter
Radio Characteristics
Advantages

Local coverage
Low cost
High frequency
Flexible
Low production costs
Disadvantages

Audio only
Clutter
Low attention
getting
Fleeting message
Magazines Characteristics
Advantages

Segmentation
potential
Quality reproduction
High information
content
Longevity
Multiple readers
Disadvantages

Dying medium
Long lead time for ad
placement
Visual only
Lack of flexibility
Newspapers Characteristics
Advantages

High coverage
Low cost
Short lead time for
placing ads
Ads can placed in
interest sections
Timely (current ads)
Reader controls
exposure
Can be used for
coupons
Disadvantages

Short life
Clutter
Low attention-
getting capabilities
Poor reproduction
quality
Selective reader
exposure
Outdoor Characteristics
Advantages

Location specific
High resolution
Easily noticed
Lowest priced
medium
Longer duration
Disadvantages

Short exposure
time requires short
ad
Need a creative
team for impact
Local restrictions
Direct Mail Characteristics
Advantages

High selectivity
Reader controls
exposure
High information
content
Opportunities for
repeat exposures
Disadvantages

High cost/contact
Poor image (junk mail)
Clutter
Online / Interactive/Digital Media
Characteristics
Advantages

User selects product
information
User attention and
involvement
Interactive relationship
Direct selling potential
Flexible message
platform
Disadvantages

Limited creative
capabilities
Web snarl (crowded
access)
Technology limitations
Few valid measurement
techniques
Limited reach
IRS 2013
The Readership Studies Council of India (RSCI)
Media Research Users Council
Released on 28
th
Jan 2014
Survey done by AC Nielsen
It used a dual-screen computerized mechanism to
capture responses, had shorter questionnaires to reduce
respondent fatigue, and employed the latest Census
2011 numbers for accuracy of projection.
18 newspaper publishers including BCCL and Kasturi
and Sons questioned the findings under aegis of ABC
RSCI decided to temporarily suspend the findings of the
latest IRS 2013 report up until 31 March 2014
Where we stand
India - $16 billion media
and entertainment industry
China - $86 billion media
and entertainment industry
1.2 billion people
9000 cinema screens
142 million TV homes
110 million copies of
newspapers sold daily
873 million mobile
phones
55 million PCs
1.3 billion people
9230 cinema screens
414 million TV homes
136 million copies of
newspapers sold daily
1 billion mobile
phones
100 million PCs


We are one of the most voluminous media markets
in the world

And yet one of the most under-penetrated ones.

Except perhaps for newspapers and cinema
screens, we are nowhere close to China.

And investors know that. That is why a bulk of the
investment in media more than $6 billion so far
has been happening in media infrastructure.
That is where all the money is going.





The shape of the market
42
Where the money is going
Supply side Demand side

Post production
studios (Pixion, Prime
Focus, Reliance)
Production studios
Outsourcing (Bharti,
NDTV, Reliance)
More news bureaus,
print companies


Multiplexes
Digital cinema screens
DTH
Digital cable
Mobile phones
Internet connections
PCs
Smart phones
Tablets
Indias top media companies
The largest mobile company in India,
Bharti Airtel has a $12 billion top line

The Brazilian TV market is less than half
of India in volumes and twice as
profitable

The US film industry makes five times
the money India does at the box office,
with half the films.

For perspective
Even if cable TV/DTH penetration goes
from 110 mn to 142 million you would
have added only a billion dollars to
industry top line
If TV penetration increases by 10 per cent
of total HHs, you add another $82 million
dollars to industry top line
If screen count goes up by 2,000, you add
a few hundred crores to top line.

For perspective