Planning for and Analyzing Advertising Media

1. Chapter Thirteen Planning for and Analyzing Advertising Media

2. Chapter Thirteen Objectives • Describe the major factors used in segmenting target audiences for media planning purposes. • Explain the meaning of reach, frequency, gross rating points, target rating points, effective reach, and other media concepts. • Discuss the logic of the three-exposure hypothesis and its role in media and vehicle selection.

3. Chapter Thirteen 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 shelf-space model, and implications for allocating advertising expenditures over time.

4. Chapter Thirteen Objectives • Perform cost-per-thousand calculations. • Interpret the output from computerized media models. • Review actual media plans.

5. Media Versus Vehicles • Media are the general communication methods that carry advertising messages—television, magazines, newspapers, and so on. • Vehicles are the specific broadcast programs or print choices in which advertisements are placed. • For example, television is the media, and American Idol is the vehicle. • Each medium and vehicle has a unique set of characteristics and virtues.

6. Messages and Media: A Hand-In-Glove Reaction • Advertisers are placing more emphasis than ever on media planning. • The choice of media and vehicles can be the most complicated of marcom decisions.

7. Selecting and Buying Media and Vehicles • GM started a trend of consolidating its media planning and buying into one organization and others have followed the example. • Creating effective messages is critical but it is just as essential that the messages are placed in the right media and vehicles.

8. The Media-Planning Process Media planning The design of a strategy that shows how investments in advertising time and space will contribute to the achievement of marketing objectives.

9. Advertising Objectives Advertising Budget Message Strategy Media Strategy Model of the Media Planning Process Marketing Strategy Advertising Strategy • Media Strategy • Target Audience Selection • Objective Specification • Media and Vehicle • Media Buying

10. The Media-Planning Process 1. Selecting the target audience 2. Specifying media objectives 3. Selecting media categories and vehicles 4. Buying media

11. Selecting the Target Audience Four major factors (1) Buyographics (2) Geographic (3) Demographic (4) Lifestyle/psychographics

12. Specifying Media Objectives • What proportion of the population should be reached with advertising message during specified period (reach) • How frequently should audience be exposed to message during this period (frequency) • How much total advertising is needed to accomplish reach and frequency objectives (weight)

13. Specifying Media Objectives • How should the advertising budget be allocated over time (continuity) • How close to the time of purchase should the target audience be exposed to the advertising message (recency) • What is the most economically justifiable way to accomplish objectives (cost)

14. Reach Percentage of target audience that is exposed to an advertisement, at least once, during a certain time frame (usually four weeks)

15. Reach • Reach represents the percentage of target customers who have an opportunity to see the advertiser’s message. • Other terms used by media planners to describe reach: • 1+ (read “one-plus”) • net coverage • unduplicated audience • cumulative audience ( or “cume”)

16. Determinants of 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

17. Frequency Average number of times, on average, during the media-planning period that members of the target audience are exposed to the media vehicles that carry a brand’s advertising message.

18. Hypothetical Frequency Distribution for the Esuvee Advertised in Sports Illustrated

19. The Concept of Frequency Distribution In the hypothetical situation, 90% of the Esuvee’s target audience is reached by the advertising schedule and they are exposed an average of 2.2 times during the four-week advertising schedule in Sports Illustrated.

20. Weight How much advertising volume is required to accomplish advertising objectives Three weight metrics: • Gross ratings • Target ratings • Effective ratings

21. What Are Ratings? Ratings, in an advertising sense, simply mean the percentage of an audience that has an opportunity to see an advertisement placed in a particular vehicle.

22. Weight: Gross Rating Points Gross rating points, 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)

23. 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

24. Determining GRPs in Practice The Gross Ratings generated by a particular media schedule simply equal the sum of the individual ratings obtained across all vehicles included in that schedule.

25. Weight: Target Rating Points (TRPs) Adjust a vehicle’s rating to reflect just those individuals who match the advertiser’s target audience

26. The Concept of Effective Reach • How often does 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

27. How Many Exposures are Needed? Three-Exposure Hypothesis The minimum number of exposures needed for advertising to be effective is three.

28. Effective Reach in Advertising Practice • 3-10 exposures during a media-planning period (typically 4 weeks) • Using multiple media • Subjective factors must be considered

29. Alternative Media Plans Based on a $12 million Annual Budget and Four-week Media Analysis

30. An Alternative: Frequency Value Planning • The objective is to select the media schedule that generates the most exposure value per GRP.

31. An Alternative: Frequency Value Planning • Estimate the exposure utility for each level of vehicle exposure that a schedule produces.

32. Frequency Value Planning (cont.) • Estimate the frequency distribution of the various media schedules that are under consideration. • Estimate the OTS value at each OTS level. • Determine the total value across all OTS levels. • Develop an index of exposure efficiency. Divide each schedule’s total value by the number of GRPs produced by that schedule.

33. Frequency Distributions and Valuations of Two Media Schedules

34. Continuity How advertising is allocated during the course of an advertising campaign: how should the media budget be distributed?

35. Continuity • Continuous advertising schedule: an equal number of ad dollars are invested throughout the campaign

36. Pulsing: some advertising is used during every period of the campaign, but the amount of advertising varies from period to period.

37. Flighting: the advertiser varies expenditures throughout the campaign and allocates zero expenditures in some months.

38. Recency Planning (a.k.a. The Shelf-Space Model) • Consumers’ first exposure to an advertisement is the most powerful • Advertising’s 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

39. 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

40. Toward Reconciliation: It Depends! • It can be said that advertising achieves its objectives through chance encounters with ready consumers. • What works best depends on the particular circumstances of the brand.

41. Cost Considerations The cost of reaching 1,000 members of the target audience, excluding those people who fall outside the target market

42. 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)

43. Use With Caution! • 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

44. Tradeoffs • Tradeoff must be made because media planners operate under the constraint of a fixed advertising budget

45. Media Planning Software 1. User develops a media database 2. User selects criterion for schedule optimization 3. User specifies constraints 4. User seeks out the optimum media schedule

46. Media Database For the Esuvee June, 2006

47. ADplus Magazine Schedule for the Esuvee

49. Diet Dr. Pepper Campaign Campaign Target and Objectives • To increase Diet Dr. Pepper sales by 4% and improve its growth rate to at least 1.5 times that of the diet soft-drink category. • To heighten consumers’evaluations of the key product benefit and image factors that influence brand choice in this category. • To enhance those key brand-personality dimensions that differentiate Diet Dr. Pepper from other diet drinks.

50. Diet Dr. Pepper Campaign Creative Strategy Position the brand as tasting more like regular Dr. Pepper.