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Media Planning and Analysis
Chapter Fourteen Objectives
• Describe the major factors used in segmenting target audiences for media strategy purposes • Explain the meaning of reach, frequency, gross rating points, target rating points, effective rating points, and other media concepts • Discuss the logic of the three-exposure hypothesis and its role in media and vehicle selection
Chapter Fourteen Objectives
• • Describe the use of the efficiency-index procedure for media selection Distinguish the differences among three forms of advertising allocation: continuous, pulsed, and flighted schedules Explain the principle of recency, or shelfspace model, and implications for allocating advertising expenditures over time
Chapter Fourteen Objectives • Perform cost-per-thousand calculations • Interpret the output from a computerized media model .
Saab 9-5 • In the late 1990s. • Historically it attracted younger customers. Saab introduced a new luxury sedan: the Saab 9-5 • Saab had done little to expand its brand image in U.S. but needed the luxury sedan to appeal to families and older customers .
Generate excitement for new 9-5 model line 2.Saab 9-5 A mass-market advertising campaign was undertaken with the following objectives: 1. Retail 11. Encourage customers to visit dealers and test-drive 4. Increase overall awareness for Saab name 3.000 units of 9-5 during introductory year .
Saab 9-5 • • • • Television commercials were run on network TV and cable in May A newspaper campaign began earlier in March with ads in USA Today and Wall Street Journal Ads also ran yearlong in several automobile magazines Internet banner ads were also run throughout the year .
Saab 9-5 Media Plan • Tactical Plan .
Saab 9-5 Magazine Ad • Magazine ad .
Saab 9-5 Dealer Kit • Dealer Information Kit .
Saab 9-5 Direct Mail uestionnaire • Direct mail questionnaire .
Saab 9-5 Direct Mail Response to Questionnaire • Response to direct mail questionnaire .
Saab 9-5 Dealer Leads • Dealer lead information card .
Saab 9-5 Dealer Sales Literature • Dealer consumer sales literature .
Saab 9-5 Consumer Test Drive Contest • Test-drive invitation and contest .
Saab 9-5 Consumer Test Drive Contest • Contest entry card .
1-800-COLLECT Media Strategy
• 1-800-Collect media strategy guide
• Advertisers are placing more emphasis than ever on media planning • Choosing media & vehicles is the most complicated of all marketing communications decisions • Aside from specific vehicles in media, the planner has to choose geographical locations and budget distribution over time
The Media-Planning Process
Involves the process of designing a scheduling plan that shows how advertising time and space will contribute to the achievement of marketing objectives
Overview for the Media Planning Process Advertising Strategy Marketing Strategy Advertising Objectives Advertising Budget Message Strategy Media Strategy Media Strategy • • • • Audience Selection Objective Specification Media and Vehicle Media Buying .
The Media-Planning Process As shown in the figure. media planning involves coordination the coordination of three levels of strategy formulations: • Marketing Strategy • Advertising Strategy • Media Strategy .
objectives and message and media strategies – extends from overall marketing strategy .The Media-Planning Process Marketing Strategy: Provides impetus and direction for choice of both advertising and media strategies Advertising Strategy: Involves advertising budgets.
Specifying media objectives 3.The Media-Planning Process 1. Buying media . Selecting media categories and vehicles 4. Selecting the target audience 2.
Selecting the Target Audience Four major factors (1) Buyographics (2) Geographic (3) Demographic (4) Lifestyle/psychographics .
What proportion of the population should be reached with advertising message during specified period (reach) 2.Specifying Media Objectives 1. How frequently should audience be exposed to message during this period (frequency) 3. How much total advertising is needed to accomplish reach and frequency objectives (weight) .
Specifying Media Objectives 4. How should the advertising budget be allocated over time (continuity) 5. How close to the time of purchase should the target audience be exposed to the advertising message (recency) 6. What is the most economically justifiable way to accomplish objectives (cost) .
at least once.Reach Percentage of target audience that is exposed to an advertisement. during a certain time frame (usually four weeks) .
Reach • Reach represents the percentage of target customers who have an opportunity to see the advertisers message. • Other terms used by Media Planners to describe reach: • • • • 1+ (read “one-plus”) net coverage unduplicated audience cumulative audience ( or “cume”) .
Factors Determining the Reach • More people are reached when a media schedule uses multiple media • The number and diversity of media vehicles used • By diversifying the day parts .
Frequency Average number of times an advertisement reaches the target audience in a four-week period .
Market Factors/Frequency Levels Market Factor • • • • • • Brand History Brand Share Brand Loyalty Purchase Cycle Usage Cycle Share of Voice Type New High High Short Short High Frequency High Low Low High High High .
Message Creative Factors/Frequency Levels Message/Creative Factor Type Frequency • • • • • Message Complexity Simple Message Uniqueness Unique Newness New Image Factors Image Message variation Little Low Low High High Low .
Media Factors/Frequency Levels Media Factor • • • • • Clutter Editorial Nature Attentiveness Scheduling Number of Media Type high Consistent High Continuous a Lot Frequency High Low Low Low Low .
Weight How much advertising volume is required to accomplish advertising objectives Three weight metrics: • Gross ratings • Target ratings • Effective ratings .
or GRPs. are an indicator of the amount of gross weight that a particular advertising schedule is capable of delivering GRPs=Reach(R) X Frequency(F) .Weight Gross rating points.
Determining GRPs in Practice • GRPs are the sum of all vehicle ratings in a media schedule • Rating: proportion of the target audience presumed to be exposed to a single occurrence of an advertising vehicle in which the advertiser’s brand is advertised .
Determining GRPs in Practice • 100 GRPs could mean: 100 % exposed once 50 % exposed twice 25% exposed four times etc. .
Weight Target Rating Points (TRPs) Adjust a vehicle’s rating to reflect just those individuals who match the advertiser’s target audience .
Weight Effective Rating Points (ERPs) • Effective reach • Effective frequency .
The Concept of ERPs • How often the target audience have an opportunity to be exposed? • Effective reach is based on the idea that an advertising schedule is effective only if it does not reach members of target audience too few or too many times .
How Many Exposures are Needed? Three-Exposure Hypothesis The minimum number of exposures needed for advertising to be effective is three .
How Many Exposures are Needed? The Efficiency-Index Procedure Media schedule that generates the most exposure value per GRP .
Efficiency Index Procedure Exposure Value Exposure Distribution Total Exposure Value Index of Exposure Efficiency .
Effective Reach in Advertising Practice • 3-10 exposures during a mediaplanning period (typically 4 weeks) • Using multiple media • Subjective factors must be considered .
Continuity How advertising is allocated during the course of an advertising campaign : how should the media budget be distributed? .
Continuity • Continuous schedule • Pulsing • Flighting .
and Flighting Schedules Advertising Schedules Ad $ (in thousands) 600 400 200 0 J F M A M Continuous J J A S O N D (months) Flighting Pulsing .Continuous. Pulsing.
Recency Planning (1)Consumers’ first exposure to an advertisement is the most powerful (2)Advertising primary role is to influence brand choice (2) Achieving a high level of weekly reach for a brand should be emphasized over acquiring heavy frequency .
Optimizing Weekly Reach • Advertising teaches consumers • Influence brand selection • Messages are most effective when close to purchase time • Cost-Effectiveness of first exposure is greater than subsequent • Allocate budget to reach consumers often • Reach target audience continuously rather than sporadically .
Toward Reconciliation Illustration of advertising’s “Chance Encounter” and the value of achieving reach .
excluding those people who fall outside the target market .Cost Considerations The cost of reaching 1.000 members of the target audience.
Cost considerations Cost per Thousand (CPM) Target Market (TM) CPM= Cost of ad # of contacts (expressed in thousands) CPM-TM= Cost of ad # of TM contacts (expressed in thousands) .
Cost Considerations • Measures of cost efficiency. not of effectiveness • Lack of comparability across media • Misused unless vehicles within a particular medium are compared on the same basis .
Tradeoffs • Tradeoff must be made because media planners operate under the constraint of fixed advertising budget .
User develops a media database 2. ADplus seeks out the optimum media schedule .Media Planning Software ADplus 1. User selects criterion for schedule optimization 3. User specifies constraints 4.
Diet Dr. Pepper Campaign Market Situation • • • • • • Sluggish category growth Growth of new-age beverages Price sensitive Lack of bottler attention and focus Inadequate distribution Greater spending by major competitors .
Pepper .Media Strategy Media plan for Diet Dr.
Media Plan for Diet Dr. Pepper Media plan for Diet Dr. Pepper (page 2) .
5 times the diet soda category • Heighten consumer knowledge • Differentiate product .Campaign Target and Objectives • Increase sales by 4% and improve growth rate to 1.
Results • Sales grew by 6.6% • Consumer brand ratings of Diet Dr. Pepper surpassed Diet Coke and Diet Pepsi in several key areas .