Dvertising And: Ntegrated Arketing Ommunications

Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.
Integrated Marketing
Communications
Advertising and
12
DEVELOPING
THE MEDIA PLAN
CHAPTER TAKEAWAYS
• Meaning & importance of media planning
• Media planning industry in India
• Process of developing a media plan
MEDIA PLANNING
“Determining the most effective manner of
spending the marketer’s money across media so
as to generate the best return on investment
and value for a brand.”
Cost-
effectiveness Effective delivery
of creative
message
Media planning achieves a fine balance

STRENGTH
RIGHT
“RIGHT” TRIANGLE
RIGHT AUDIENCE
MEDIA’S
MEDIUM
RIGHT
THE Qs OF MEDIA PLANNING
Who to advertise to?
Where to advertise?
When to advertise?
Through what media to advertise?
How much to advertise?
How much to spend on media?
3 MEDIA KEYS
Media • Determines the best combination of
media to achieve objectives
Planner
Media • Procures media real estate at optimal
placement & price
Buyer
Media • The specific medium for the
transmission of an advertiser’s message
Vehicle
PREPARING A MEDIA PLAN
Evaluating &
Following
Formulating up
Media
Designing a Tactics
Media
Setting Strategy
Media
Performing Objectives
a Situational
Analysis
1. PERFORMING A SITUATIONAL
ANALYSIS
• Reviewing internal & external factors likely
to affect a brand’s media decisions
• Include tapping population, economy &
market estimates
2. SETTING MEDIA OBJECTIVES
Key questions to be answered:
a. Who to advertise to?
b. Where to advertise?
c. When to advertise?
d. How to advertise?
e. How much to advertise?
2a. Who?
Redefining Audience in Media Terms
• Classifies households in India based on 2 variables – 1)
Education of chief earner & 2) Number of select consumer
SEC Classification durables
• Divides households into 12 SEC groups from A1 to E3
Media Audience • Readership, viewership, listenership profiles made available

by media
Profiles
Usage and
• Analysis of consumers’ usage & attitudes towards various
Attitude (U & A) products
Studies
2a. Who?
Redefining Audience in Media Terms
Product user • Compiled by syndicated research agencies such as
profiles ACNielsen
VALS (Values And • Divides U.S. adult consumers into 8 psychographic

Lifestyles) segments such as Innovators, Believers, etc.
• Data not yet available for India
segments
Primary research • Most useful but time-consuming & expensive

2a. Who?
Index
• A percentage, which relates one number
to another number, called the base (taken
as 100)
• Helps comparing raw numbers
• E.g. Product usage propensity index =
(Percentage of users in a segment/
Percentage of population in the same
segment) x 100
2b. Where?
Market prioritization usually done through
one of the following objectives:
– Advertise where business is: Defensive stance

– Advertise where business is not: Offensive
stance
2c. When?
• Deciding promotion timing
• Media weights can vary by:

– seasonal goals, competitive activity, sales
pattern, festival or holiday time, cricket
season, etc.
2d. How?
• Product promotion requirements may
include or exclude certain media
• Basic requirements for copy, colour, audio,
video, etc. determine media choices
• Area for media & creative strategists to work
together
2e. How much?
Level of advertising intensity based on:
– Past performance, competitive pressure,
judgement, etc.
Frequency
GRPs
Ratings
MEDIA WEIGHT
TERMS
Impressions
Reach
2e. Ratings
“The percentage of a given population exposed to
an advertising medium within a given period of
time”
1 television rating point (TVR) = 1% of viewers in
the surveyed area in a given minute
Programme ratings are averaged for their time

duration
2e. Ratings
• INTAM (Indian Television Audience Measurement)
measures ratings electronically
• DART (Doordarshan Audience Ratings) has a
rating system for DD
• Importance
– Popularity
– Commercial pricing
• Ratings for non-broadcast media
– Magazines/NPs: coverage or penetration
– Outdoor: showing
2e. Gross Rating Points (GRPs)
• Sum of all ratings delivered by a given list
of media vehicles
• Total audience of a media schedule
without regard to duplication
2e. GRPs in television
Programme # of Avg. rating # of telecasts in GRPs
telecasts which an
in 4 weeks announcement
is purchased
A 4 25 2 50
B 4 20 1 20
C 4 10 3 30
Total 6 100
QUICK Q!
• If programmes A, B & C have women 18+
ratings of 5, 10 & 15 respectively, & you
purchase 4 announcements in each
programme, how many GRPs will you have
purchased?
• Oops! Can they be more than 100?

2e. Impressions
• Impressions = Actual number of people or
homes exposed to a media schedule
• Gross impressions = Sum of all media

exposures without regard to duplication
Calculation of Impressions
Audience (a) GRPs (b) Impressions (a x b)
Television 1,00,000 104 1,04,00,000
Magazines 50,000 135 67,50,000
Gross impressions 1,71,50,000
2e. Exposure & OTS
• Exposure = Consumer’s contact with a
medium
• OTS = Opportunity to See (an ad)
• Exposure & OTS give audience estimates

for a vehicle, not an ad
2e. Reach
“Number or percentage of different homes or
persons exposed to an advertising schedule at
least once over a specific period of time”
Reach Terminologies
Gross Duplication Net Reach of Net Reach Build-
Reach Individual up or Cumulative
Magazines Reach
Magazine A 1000 Nil 1000 1000
Magazine B 2000 (300) 1700 2700
Magazine C 1500 (900) 600 3300
Magazine D 1200 (1000) 200 3500
Total 5700
2e. Reach
• Net delivery vs. gross delivery
• Generally expressed as a percentage
Television Magazine
30 30 20
Television + Magazine
Duplicated, Non-duplicated and Combined Reach

QUICK Q!
• You purchase 2 magazines, each with a 10
rating for men. What is the minimum and
maximum reach you might obtain?
• You are considering the purchase of 2 radio

stations A & B. Station A has 20,000 listeners
and station B has 10,000. The 2 combined
have a 20% duplication rate. What is the
combined reach of the stations?
2e. Frequency
“The avg number of times people of HHs are
exposed to the ad messages in a media
schedule”
Calculating Frequency
Media % of Number of media Equivalent number of
Audience exposed to media exposed to
(a) (b) (a x b)
Television alone 30 1 30
Magazine alone 20 1 20
Television and magazine 30 2 60
both
Total 80 110
Frequency = 110/80 = 1.375

QUICK Q!
Based on the following info, how many
programmes did the avg person view?
# of people # of programmes
viewed
5 5
3 3
2 2
QUICK Q!
Mag A is read by 30% of women, Mag B by
20%. Half of the women who read B also
read A. If you schedule an ad in both
magazines, how many ads will the average
reader be exposed to?
2e. Reach, Frequency & GRPs
• GRPs = Reach x Frequency
• R/F a media shorthand
• Higher reach vs. higher frequency – a
delicate balance
• Understanding effective frequency &
effective reach
The Ostrow Model of Effective Frequency
Frequency Distribution Schedule for 131 GRPs for TV HHs
Frequency Reach at Frequency Reach Value of Real reach at
each at each effectiveness at each frequency
level (a) level each frequency level (a x b)
level (b)
1 20 1+ 57 25 5
2 14 2+ 37 100 14
3 10 3+ 23 100 10
4 7 4+ 13 100 7
5 5 5+ 6 100 5
6 3 6+ 1 50 1.5
7 2 7+ (-2) 0 0
8 (-4) 8+ (-4) 0 0
Total Real Effective 42.5
Reach 57 Reach
Average
Frequency 2.3
3. DESIGNING A MEDIA STRATEGY
3a. Geographic Allocation
Decisions
• Spending allocation approaches:
– National approach
– Spot approach
– Combined approach
• Factors guiding market selection:
– Per capita product usage, brand sales, sales
growth over previous years, distribution
penetration, competitive activity, results from
past promotional activities, etc.
3a. Geographic Allocation
Decisions [Helpful Indices]
• BDI = (% of brand sales in a market/ % of total
population in that market) x 100
• CDI = (% of category sales in a market/ % of total
population in that market) x 100
BDI Brand is doing CDI Market represents good sales potential.
> better than the >100
CDI category in that CDI Market should be watched for declining sales.
market. < 100
BDI Brand is not CDI The product category has potential, and there is
< performing as >100 room for growth for the brand. However, the
CDI well as the situation may not always call for additional
industry. advertising weight, because factors other than a lack
of advertising could be hampering growth (e.g. lack
of distribution).
CDI This may not be a good market for advertising as
< 100 both the product category and the brand are doing
poorly.
3b. Media Mix Decisions
Media
concentration
• Fewer media + more
money per medium
Media dispersion
• Many different media
for wider reach
3b. Media Mix Decisions
Media category Media mix
selection selection
Determining factors: Objectives of media plan, product

characteristics, size of budget, creative opportunities in
media, competitive environment, availability of a medium,
cost effectiveness, etc.
3c. Media Schedule Decisions
4. FORMULATING MEDIA TACTICS
Reach & Media &
Cost
Frequency Vehicle Quality
Considerations
Considerations Considerations
Adding
Planning Ad
Flexibility to
Insertions
Plan
4a. Reach and Frequency
Considerations
High reach
• Mass media good
choice
• Roadblock tactic
High frequency
• More insertions
within same media
vehicle/programme
CPM
CPP
Relative
4b. Cost Considerations
Costs
Absolute
4b. CPM
• The cost per 1,000 people or homes
delivered by a media schedule
• Allows comparing relative cost of 1 medium
to another
• Can determine cost efficiency of various
media alternatives
• CPM
= cost of a media unit x 1000
audience delivered
• Hence, CPM to be used only as a guide
• Creative units are not equal
4b. CPM
QUICK Q!
• A 30: commercial on TV costs Rs. 40,000 &
delivers a 5 rating for men and a 2.5 rating
for women in a market that has 10 lakh
population of each sex. What is the CPM
for each group?
• Magazine A has a women CPM of Rs. 100

for a one-page ad that costs Rs. 40,000.
How many women are in the average
audience of magazine A?
4b. CPP
• Cost of purchasing one rating point
• Often used to estimate how many

GRPs/TRPs can be purchased in a given
media budget
QUICK Q!
• You plan to buy a 10-rated programme
for a cost of Rs. 30,000. What is your
CPP?
• You determined that the CPP for
primetime is Rs. 2000 and for daytime,
Rs. 1000. You have a budget of Rs. 4 lacs.
How many rating points can you buy if
you distribute your budget evenly by
daypart?
QUICK Q!
You determined that the CPP for primetime
is Rs. 2000 and for daytime, Rs. 1000. You
have a budget of Rs. 4 lacs. How many
rating points can you buy if you distribute
your budget evenly by daypart?
4c. Media and Vehicle Quality
Considerations
• Right media & vehicle affect message
creativity
• Qualitative characteristics of vehicles are
primarily judgmental
– E.g. vehicle reputation, editorial environment,
reproduction quality, added values, etc.
4d. Planning Ad Insertions
• Decisions based on media objectives
– E.g. Reach & frequency objectives, ad
availability, competitive scenario, etc.
• Planners schedule the number of ads to

appear on specific days & weeks, & plan
their placement
Expect the unexpected and be prepared to
4e. Adding Flexibility to Plan
change
5. PLAN IMPLEMENTATION
• Responsibility of the media operations
department
• Preparing release orders & other material

6. EVALUATION
• Evaluation vis-à-vis media, communication
and marketing objectives
• Evaluate actual execution of scheduled
media placements
• Evaluate media vehicle exposure

Dvertising And: Ntegrated Arketing Ommunications

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Dvertising And: Ntegrated Arketing Ommunications

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Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.

Media planning achieves a fine balance

Media Audience • Readership, viewership, listenership profiles made available

VALS (Values And • Divides U.S. adult consumers into 8 psychographic

Primary research • Most useful but time-consuming & expensive

– Advertise where business is: Defensive stance

• Media weights can vary by:

Programme ratings are averaged for their time

• Oops! Can they be more than 100?

• Gross impressions = Sum of all media

• OTS = Opportunity to See (an ad)

• Exposure & OTS give audience estimates

Duplicated, Non-duplicated and Combined Reach

• You are considering the purchase of 2 radio

Frequency = 110/80 = 1.375

Determining factors: Objectives of media plan, product

• Magazine A has a women CPM of Rs. 100

• Often used to estimate how many

• Planners schedule the number of ads to

• Preparing release orders & other material

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