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.
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
Previous reach levels
The average number of times an audience member is exposed to a commercial.
Factors that affect frequency level:
Compete in a highly competitive market
Uniqueness of the message
Reach and GRP are directly related:
Reach and frequency are indirectly related:
GRP Reach Frequency
600 50% 3+
Source: Advertising Media Planning, Exhibit 5.6, p.96
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.
Joseph W. Ostrow has defined factors that affect effective frequency as belows:
Source: Sissors, Baron, Advertising Media Planning, p.214
Source: Advertising Media Planning, Exhibit 5.12, p.105
(Target audience, competitors, media)
Planning and Buying
Target audience analysis
Media habits of the target audience
Rationale for media selection
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
What kind of consequences can local or small companies face when they don’t apply the steps of media planning?
the right target audience
with the right medium
at the right time
with optimum number of repetition.
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...
The target audience is decided by
Heavy users’ markets…
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.
Which medium to use?
Out of Home
Monthly sales patterns
Specific goals for the brand
Scheduling: Controlling advertising timing
Advertising clutter and product protection
Advertising copy checking and product restrictions
Response to coupons, information or recipes
Leadership in media class
Popularity of the films
Places of the movie theaters
Click through rate
You can offer different alternatives to your client in media strategy and planning. These alternatives are:
Spending more money
Spending less money
Translating the results of test markets
Making the Media Buys
Objective of the buy
History of buying
Good relations with media representatives
Cpp/sec. or GRP based
Assesing the task of advertising
Long and short term goals
Degree of product usage
Difficulty in reaching target markets
Frequency of purchase
Effect of increased sales volume on production costs
New product introductions
Main issues to know while setting the media budget
Beginning of the marketing year
Gross Budget includes agency commission and VAT.
Gross Budget=Net Budget+Agency Com.+VAT
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
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
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
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
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
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
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
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
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?
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 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