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Reach. The percentage of different people exposed to a vehicle at least once. Factors that affect reach level: New product introduction (brand awareness, launch) Advertising support for sales promotion activities Competitor’s levels Budget Previous reach levels. Frequency.

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reach

Reach

The percentage of different people exposed to a vehicle at least once.

Factors that affect reach level:

New product introduction (brand awareness, launch)

Advertising support for sales promotion activities

Competitor’s levels

Budget

Previous reach levels

frequency

Frequency

The average number of times an audience member is exposed to a commercial.

Factors that affect frequency level:

Repetition

Compete in a highly competitive market

Uniqueness of the message

Noise level

Competitors’ levels

Media prices

reach and grp

Reach and GRP

Reach and GRP are directly related:

GRP Reach

85%

700 86%

800 87%

.....

1300 90%

reach and frequency

Reach and Frequency

Reach and frequency are indirectly related:

GRP Reach Frequency

85% 1+

600 50% 3+

how reach builds over time

GRP and reach are directly related with each other. As GRP

  • increases, reach also increases, but there is a diminishing point. After that point reach remains constant. There is no need to increase the level of advertising after that point.

How reach builds over time?

Source: Advertising Media Planning, Exhibit 5.6, p.96

how reach builds over time1

When a campaign starts out, reach rises quickly, as many people

  • haven’t seen the advertisement before.
  • As the campaign becomes more mature, there are fewer and fewer new people exposed. Reach rises more slowly. Meanwhile, the number of people exposed more than once, frequency, increases.

How reach builds over time?

effective reach and effective frequency

Effective Reach and Effective Frequency

Effective Reach: The percent of the target audience exposed at the frequency level that is effective in the planner’s judgement.

Effective Frequency: The amount of frequency the planner judges to be necessary for advertisements to be effective in communicating.

how do we decide effective reach and frequency

How do we decide effective reach and frequency?

Joseph W. Ostrow has defined factors that affect effective frequency as belows:

Marketing factors

Copy factors

Media factors

Source: Sissors, Baron, Advertising Media Planning, p.214

effective reach versus grps and cost

Effective reach versus GRPs and cost

Source: Advertising Media Planning, Exhibit 5.12, p.105

media planning and buying process

Media Planning and Buying Process

Research

(Target audience, competitors, media)

Media Objectives

Media Budget

Media Strategy

Planning and Buying

Implementation

Evaluation

a media plan should include

A Media Plan Should Include...

Media objectives

Competitive analysis

Target audience analysis

Media habits of the target audience

Rationale for media selection

Media strategy

Flowchart

a media plan may also contain

A Media Plan May Also Contain...

Seasonality

Detailed broadcast times and costs

Other media considered but not recommended

Some alternative plans but not recommended

Anything else that the account group thinks as the questions of the client

time for discussion

What kind of consequences can local or small companies face when they don’t apply the steps of media planning?

Time for discussion...

media plan

Media Plan...

  • Who are you reaching?
  • Where are you reaching?
  • When are you reaching?

Reaching

the right target audience

with the right medium

at the right time

with optimum number of repetition.

slide19

Who?

Target audience is the group of people whom the advertising is attempting to influence

Life styles of target audience?

Product usage and media behavior

How do they spend their time and money?

Focus Groups, surveys, interviews...

slide20

Who?

The target audience is decided by

Creative group,

Marketing planners,

Account group,

Client,

Media planners

where

Where?

Geographic markets

Declining markets

New markets

Heavy users’ markets…

where1

Where?

Defensive strategy: Advertising in the markets where the brand’s sales are high.

Offensive strategy: Advertising in the markets where the brand’s sales are low.

where2

Where?

Which medium to use?

Television

Radio

Internet

Print

Out of Home

Mobile

Transit

Ambient

slide24

When?

Monthly sales patterns

Budget constraints

Competitive activities

Specific goals for the brand

Product availability

Promotional requirements

scheduling

Scheduling

Scheduling: Controlling advertising timing

Continuity

Flighting

Pulsing

types of scheduling

GRP

GRP

Types of scheduling

GRP

Flighting

Continous

Pulsing

chapter 7

CHAPTER 7

Offering Alternatives

evaluating and selecting media vehicles

Evaluating and Selecting Media Vehicles

TV

Target audience

Rating

Share

Dayparts

Reach

Frequency

CPP/Sec

Advertising clutter

Channel reputation

Ad position

Available discounts

evaluating and selecting media vehicles1

Evaluating and Selecting Media Vehicles

Print

Reach

Net Sales

Target Market

Pass-along readers

CPT

Editorial features

Special editions

Color reproduction

Geographic flexibility

Positioning opportunuties

Advertising clutter and product protection

Advertising copy checking and product restrictions

Response to coupons, information or recipes

Available discounts

evaluating and selecting media vehicles2

Evaluating and Selecting Media Vehicles

Print Contd...

Writing tone

Reader respect

Leadership in media class

Believability

evaluating and selecting media vehicles3

Evaluating and Selecting Media Vehicles

Radio

Target audience

Format

Reach

Radio listenership

Ad position

Second price

evaluating and selecting media vehicles4

Evaluating and Selecting Media Vehicles

Cinema

Ticket sales

CPT

Target audience

Popularity of the films

Places of the movie theaters

Ad position

evaluating and selecting media vehicles5

Evaluating and Selecting Media Vehicles

Outdoor

Visibility

Traffic flow

Place

Target audience

CPT

evaluating and selecting media vehicles6

Evaluating and Selecting Media Vehicles

Internet

Target audience

Impression

Click through rate

CPT

offering different alternatives

Offering Different Alternatives

You can offer different alternatives to your client in media strategy and planning. These alternatives are:

Spending more money

Spending less money

Changing targets

Changing media

Translating the results of test markets

chapter 8

CHAPTER 8

Making the Media Buys

key points in media buying and negotiation

Key points in media buying and negotiation

Negotiation Skills

Media dynamics

Objective of the buy

Costs vary

History of buying

Media trends

Good relations with media representatives

Fair negotiation

Last-minute opportunities

Added value

Mutual respect

types of media buying

Types of Media Buying

Cpp/sec. or GRP based

Package

Bulk buying

Stand by

Barter

factors in determining the size of an advertising budget

Factors in determining the size of an advertising budget

Assesing the task of advertising

Long and short term goals

Profit margins

Degree of product usage

Difficulty in reaching target markets

Frequency of purchase

Effect of increased sales volume on production costs

New product introductions

Competitive activity

setting the budget

Setting the budget

Main issues to know while setting the media budget

Beginning of the marketing year

Net budget

Gross Budget includes agency commission and VAT.

Gross Budget=Net Budget+Agency Com.+VAT

how much money is available for media

How much money is available for media?

Ex: The client says they have 200.000USD. The budget is gross. What is the net budget?(AC is 15% including media agency and creative agency commission)

Net Budget= 200.000/1.15/1.18=147.383USD

how much money is available for media1

How much money is available for media?

Ex: The client’s gross media budget is 75.000USD. What is the net budget?(AC is 3% including only media agency commission)

Net Budget= 75.000/1.030/1.18=61.700USD

how much money is available for media2

How much money is available for media?

Ex: Media planner’s net newspaper budget is 25.000USD. What is the gross budget for the client?(AC is 3,5%)

Gross Budget= 25.000*1.035*1.18=30.532USD

calculating budgets of each medium

Calculating Budgets of Each Medium

Measured channel:

Tv Budget= cpp/sec. x GRP x Avg. Film Sec.

Example: We are planning to get 800GRP in one month. Our cpp/sec. is 6,8USD, and our avg. film length is 15sec.What is our tv budget for measured channels?

Tv budget= 6,8 x 800 x 15=81.600USD

calculating budgets of each medium1

Calculating Budgets of Each Medium

Non measured channel

Tv Budget= sec. price x Avg. film length x # of spots per day x # of days for non measured channels

Example: We are planning to use NTV for 30 days with a 30 sec. advertising film. Second price for NTV is 7USD, and we will use 4 spots per day. What is the budget for NTV?

Tv budget for NTV= 7 x 30 x 4 x 30=25.200USD

tv planning and buying
TV Planning and Buying
  • Issues to be considered
  • Ratings
  • Target audience
  • Content
  • Cpp/sec, sec. price
  • Packages
calculating budgets of each medium2

Calculating Budgets of Each Medium

Newspaper Budget = price of one clm.cm. x clm*cm x # of insertions

Example: We will use Hurriyet in our plan. One clm*cm for Hürriyet is 30USD. The size of our ad is 5clm*25cm. We will have 2 insertions in Hurriyet. What is the budget?

Budget = 30 x 125 x 2=7500USD

newspaper planning and buying
Newspaper Planning and Buying
  • Issues to be considered
  • Circulation and net sales
  • Target audience
  • Clm*cm price, CPT
  • Frequency
  • Days
calculating budgets of each medium3

Calculating Budgets of Each Medium

Radio Budget = second price x radio spot second x # of spots per day x # of days

Example: Sec. price for Power Fm is 10USD. We have a radio spot for 30sec. Our plan is using 5 spots per day for 20 days. What is the radio budget?

Budget=10 x 30 x 5 x 20= 30.000USD

radio planning and buying
Radio Planning and Buying
  • Issues to be considered
  • Listenership rates
  • Target audience
  • Second price
  • Frequency
  • Days
calculating budgets of each medium4

Calculating Budgets of Each Medium

Outdoor Budget = unit price x no of bb. x # of weeks

Example: One billboard costs 50USD for one week in Istanbul. We will buy 500 billboards for 2 weeks. What is the budget?

Budget=50 x 500 x 2 =50.000USD

outdoor planning and buying
Outdoor Planning and Buying
  • Issues to be considered
  • Reliability of the media seller
  • Follow of media rents
  • Follow of taxes
calculating budgets of each medium5

Calculating Budgets of Each Medium

Internet budget= cost per thousand for planned impressions*(planned number of impressions/1000)

Example: Cost per thousand impressions in Superonline movies web page is 2USD for a 300*250 pixel banner. What is the budget if we plan to get 1.200.000 impressions from this page?

Budget= 2*(1.200.000/1000)=2.400USD

calculating budgets of each medium6

Calculating Budgets of Each Medium

Example: We will advertise for Algida Magnum in May. Media mix we are planning to use is as follows:

TV: Measured channels with 7,8USD cpp/sec, 850GRP, 30 sec advertising film; Non measured channels with 10USD for one second, 4 spots per day for 30 days.

Outdoor: 200 Billboards for two weeks. Unit price for one billboard is 50USD

Radio: Spot length:30 sec, one sec. price=5USD, 15 days, 5 spots per day

Newspaper: 4clmn*25cm ad, 48 USD per one clmn*cm, 5 insertions

What is our gross budget for Magnum in May if the agency commission is 3%?

calculating budgets of each medium7

Calculating Budgets of Each Medium

Calculating the budget of each medium:

TV: Measured channels: 7,8USD x 850GRPx 30sec. = 198.900 USD

Non measured channels: 10USD x 30sec. x 4spot x 30days = 36.000 USD

Outdoor: 200billboards x 50USD x 2weeks = 20.000 USD

Radio: 30sec x 5USD x 15days x 5spots = 11.250 USD

Newspaper: 4clmn x 25cm x 48 USD x 5 insertions = 24.000 USD

Total net budget= 198.900 + 36.000 + 20.000 + 11.250 + 24.000 = 290.150 USD

Gross budget = 290.150 x 1,030 x 1,18 = 352.648 USD

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