Advertising Budgeting, Media,

and Media Planning

The Advertising Budget
Setting the Budget
Percentage of Sales
Payout Plan
Competitive Budgeting
The Task or Objective Method
Whats the objective?
What type and how much media needed?
Can we afford it?
Arbitrary
Administering and Protecting the Budget
Media Defined
The vehicles that carry the ads to the
target market.
Which is most important? Picking the
correct media or having great creative?
What are the types of media?
Different Media
The Local Media Mix
Newspapers Out-of-home
Radio Yellow
Television Pages/Directories
Magazines Direct Media
New Media
Newspapers as Local Media
Using regular sections
Sports, Business,
Entertainment, etc.
Using special sections
Gardening, Back-to-school,
etc.
Zoned editions
Preprint distribution
Weeklies, Shoppers,etc.
Newspapers as Local Media
Available space for detailed copy
Minimal lead times for faster turnaround
Geographic targeting selectivity by area
and zip code zoning
Radio as Local Media
Demographic target selectivity by
station format
Time-of-day selectivity available
Morning and afternoon drive
Midday shopping
Nighttime entertainment
Radio as Local Media
Specific advertiser applications to build
local traffic
Straight advertising
Sponsored promotions
Sponsored events
Remote broadcasts
Magazines as Local Media
City Magazines
Allow advertisers geographic emphasis in many larger cities

Regional Magazines
Allow emphasis in regions of the
country
Even National Magazines
Special city and geographic zoning
available for higher circulation
magazines
Out-of-home as Local Media
Almost exclusively local, Place-based media
Pick your place
Directional messaging
Reach the target on the go, going your direction

Limited to only short

messages
More about simple
exposure
Directories as Local Media
Yellow Pages and other directories
Always on hand
Consulted for product/service options
Simple listing or display alternatives
Listing right for some advertisers
Display needed for other advertisers
Annual media buy
Take care to get the info right!
Direct as Local Media
Direct mail to reach customers and
neighbors in their home
Database Marketing on a local, business
specific basis
Proprietary
Purchased
New Media Locally
Audiotext sponsored phone
messaging used by
retail stores (BB, Planet fashion)
In-store advertising and couponing
Interactive kiosks and teller machines in
stores

Social Media
Local Media Planning
Matching media with markets
Broad and narrow
The local market profile
Knowing your market
Research on a local level
Primary techniques
Secondary sources
Matching Media With Markets
Even on a local level
Some media reach a broader audience
Some media reach a narrower audience
Especially on a local level
Some advertisers need a broader audience
Some advertisers need a narrower
audience
Case Study:
Same Location Different Markets
DeLuxe Cleaners and
Betters Better Gourmet
Same strip mall location
Different business models
Different target markets
Different media plans
Different Target Markets
DeLuxe Cleaners
90% of the business lives in the
neighborhood
Betters Better Gourmet
Neighborhood market for weeknight take-
out business
Broader market for weekend and freezer
food shoppers
Different Media Plans
DeLuxe Cleaners
Neighborhood weekly newspaper
Neighborhood flyers
Direct mail by zip code and customer database
Betters Better Gourmet
Daily city newspaper food day and weekend
entertainment
Specialty papers arts/entertainment
Customer database mailings
The 10-Minute Media Plan
DeLuxe Cleaners
Typical of many local businesses
90% of the business generated within a 10-minute
radius of the store location
Media used should be in the same radius
Store-front signage
Zip code and neighborhood flyers
Partnerships with other neighborhood stores
Local neighborhood newspaper or billboard location
where available
Local Market Profile
Know your market, be the expert
Population/Consumer base
Economic Base
Behavior patterns
Media alternatives
Population/Consumer Base
Population statistics and trends
Demographic characteristics and trends
Age, income, education, etc.
Lifestyle variables and trends
Home ownership, neighborhood
development, etc.
Economic Base
Tax basis and trends
Retail sales by area and trends
Employment statistics and trends
Tourism trends (if any)
Behavior Patterns
Shopping behaviors
Time of day
Day of week
Week of month
Market Research:
How do you find this stuff?
Primary Research
Store or customer research
Media research
Secondary Research
Government reports
Industry reports
Primary Research Locally
Surveys
Focus Groups
Mall Intercept questionnaires
One-on-one Interviews
Secondary Research Locally
Government Reports
Chamber of Commerce research
Survey of Buying Power
Government Studies
Statistical Abstract
Secondary Research Locally
Industry Reports
Trade magazines
Trade associations
Specialized reports
Organization of the Media Function

Media planner
Media buyer
Media researcher
Important Trends in Media
Convergence
Interactivity
Creativity
Optimization
Key Media Terms
Media plan: document that establishes how
media will be used to disseminate an advertisers
message, including objectives and strategy.
Media objective: statement in media plan that
explains the goals of the plan; usually states how
many of the target will be exposed to advertising
messages in a given time period, and how often.
Media strategy: statement in media plan that
outlines how objectives will be accomplished;
shows where and when advertising messages will
appear, and at what cost.
Media Planning
Media Planning = Selection + Scheduling
Factors Influencing Media Planning Decisions
Target Market Profile
Looking at Brand/Product Dynamics
The Creative Execution
Budget Considerations and Media Deals
The Competitive Situation
Availability and Timing Considerations
Cost Efficiency (CPM = Cost per thousand (CPM): cost
of reaching 1,000 members of target audience with media
vehicle(s) or plan.)
CPM Formula and Example
Cost
CPM = X 1,000
Audience

Which is more cost efficient on a CPM basis?

A-- :30 TV Commercial in Friends
$250,000
CPM = X 1,000 = $12.50
20,000,000
B-- :30 TV Commercial in Monday Night Football
$300,000
CPM = X 1,000 = $10.00
30,000,000
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.
Geographic Selectivity is the ability of a medium to
cover a particular geographic area without spillover.
How would you rate the different major media
in terms of class and geographic selectivity?
Media Scheduling
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%
The Difference between Reach
and Frequency
Media Scheduling (continued)

Reach
+
Frequency
+
Continuity
(how long the campaign runs
continuous vs. flighting vs. pulsation)

100%
Reach, Frequency, and Continuity Relationships with a
Fixed Budget
Media Scheduling (continued)

Reach
+
Frequency
+
Continuity
+
Dominance/Impact
(the attention-getting ability of the media vehicle(s)
selected to run the ad)

100%
Evaluating the Media: Key Terms
Rating point: the % of a given population group that uses a
specified media vehicle.
Share: Households/persons using television (HUT, PUT): %
of homes or people watching TV at a given time.
Gross rating point (GRP): total number of ratings for different
media vehicles.
Gross impression: translation of GRPs into people; number of
audience exposures x number of times they will see or hear
vehicles.
Cost per rating point (CPP): cost of buying one rating point in
a given media vehicle or type.
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, or receiving
specific magazine or newspaper.
Evaluating the Media: Key Terms,
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.
Types of Media Plans

Geographic
Local, spot, key market
Regional
National
International

Selective
Combination
Sample Flowchart of a Media Plan
Evaluating the Media Plan
Follow upgetting make-goods, tearsheets.
Measuring the impact:
Test consumer awareness of campaign before,
during, and after.
Sales data.
Compare actual reach/frequency figures to
proposed estimates.
Syndicated Media Research Services
Nielson, Arbitron, Simmons, Audit Bureau of
Circulation
THANK YOU