Flowchart/Standard Broadcast Calendar/Markets

1. Flowchart/Standard Broadcast Calendar/Markets

2. Media Planning • Tonight’s class will cover: • Homework review • Some new material – Flow Chart, Standard Broadcast Calendar • Print • New Material on SOV • Review for Mid term exam

3. Flowchart • A graphic presentation of all major actions that comprise a media plan • Presented in notation form enabling planner to place great deal of information in small space. • Most important function is to provide a bird’s-eye view of plan of action • Includes a week by week showing of activity by media, cumulative budgets and grp’s

4. Flowchart • Many times clients, account service and creatives think the flowchart is the plan. • It is just a small, but important part of the plan. • Example of RBB Sporting Goods Flow Chart shows week by week of Network TV, Cable TV, Recap by quarter with Reach and Frequency, Magazines by title, Internet, Total flight GRP’s/Reach/Frequency and budgets.

5. Standard Broadcast Calendar*****Important • On the flowchart, notice the weeks at the top of page. • Advertising is planned and purchased on a different kind of calendar. • Standard Broadcast Calendar. • Weeks start on Monday, end on Sunday • Month ends on last Sunday of the calendar month and begins on the first Monday of the next month.

6. Standard Broadcast Calendar • All of advertising adheres to this calendar. • View 3 year Standard Broadcast Calendar • The Standard Broadcast Calendar is designed to conform to the uniform billing period adopted by US Broadcasting industry. • Standard media week ends on Sunday. • Standard billing month always ends on the final Sunday of a calendar month.

7. Markets: DMA/TSA/MSA • What is a local market to a media planner? • A group of people living in a certain geographic area who are likely to buy a given product or brand • DMA****Important • Designated Market Area DMA • Used by Nielsen (and advertising industry) for a television market. Includes counties in the metropolitan area of a market. • Statistical area • TV markets are categorized by DMA. • TV is measured by DMA’s • Denton is in the Dallas/Ft. Worth DMA

8. Markets: DMA/TSA/MSA • TSA • Total Survey Area • Statistical area surrounding the DMA. These households may belong to another DMA, however they receive some of their TV viewing/radio listening from the DMA.

9. Markets: DMA/TSA/MSA • MSA • Metro Survey Area • A population area with a large nucleus at the center and adjacent areas that have a large degree of economic and social integration with the center. • Radio is measured by MSA’s. • TSA data is also available but markets are planned and purchased on MSA’s for Radio • This is generally a smaller area inside the DMA. • Radio measured on MSA’s because of radio signals.

10. Print How its bought & sold

11. Magazine • Sold by display space in page or fractional page unit • B/W & Color rates are different • Bleed (additional 15%) • Discounts based on • Frequency of insertion • Page equivalent discount

12. Magazines • Regional or geographical rate • Premiums on “cover” position • Second, third, fourth cover page • Fourth cover (back page) is the most expensive and the most effective • Rates are negotiable

13. Newspaper • Sold by column inch • Display ad: SAU (standard advertising unit) • Line-rate (or agate rate) for classified ads • Open-rate/Flat rate (color rate) • Color charges are “add-on” • Different rates for national, retail, classified, co-op • Geographic rate • Frequency/volume discount

14. Factors affecting Readers-per copy • Distribution patterns-airplanes, doctors’ offices, etc allow more people to be exposed to a specific copy…much of this readership is passalong • Amount of Editorial…The more words contained in a magazine, the longer it takes to read. Primary readers will hold that copy longer with fewer passalong readers • Type of editorial…Some pubs are retained by primary reader because of the reference material

15. Readers-per-copy (RPC) is determined by dividing total audience of an average issue (as reported by various research companies) by the average issue circulation of that pub • Not necessarily an accurate number, but is commonly used by planners to assess total audience of a pub or to plan for a new publication

16. Readers-per-copy • Total audience =2,300,000 Average issue circulation =1,800,000 RPC=2,300,000/1,800,000=1.27 readers per copy

17. Share of Voice SOV

18. Share of Voice • How much to spend on advertising • A planning concept that is often used in making media decisions is called • Share of Voice or Share of Noise • This concept requires planner to determine how much advertising is being done for a brand VS the amount being done for a competitive brand

19. Share of Voice-SOV • BUT Before decisions made about how much to be spent, other decisions must be made. • Who your brand will compete with • Lemonade-competing with just lemonade or all non carbonated beverages or all citrus beverages or all refreshment beverages • Where will you advertise? • You will need to determine share of market in each location (BDI/CDI) and reason that share exists

20. SOV • Poor sales in one area could be due to bad distribution, a great local brand or pricing policies (Mrs Bairds vs Wonder Bread)

21. SOV • Can advertising affect a sales change? (if distribution is such that product is not readily available in certain areas, advertising will be wasted.)

22. Share of Voice • SOV is % of total advertising weight for each brand and it is calculated by each media and by combined media. Ex • You will have a Share of Voice for TV, a share of Voice for radio, a SOV for Outdoor and then one combined for all media.

23. SOV • Clients LOVE SOV data and while its not the most reliable way to determine spending, its usually used by agencies because data appears so compelling to clients that they will often increase their spending budgets. • SOV data is used in conjunction with CDI/BDI to help planners focus in on markets to advertise in and what levels to advertise at.

24. SOV • BDI/CDI shows how strong a brand and category are in a market. • SOV shows how much money is spent by category and brand by media and by all in a market or markets.

25. SOV • In class exercise • Work through example on pass out for Beer • Table shows 3 charts that represent how a SOV is calculated. • 1) Total spending by brand on advertising and how it is allocated. (by media) • 2) Media Mix-shows the % spent in each media by brand and total • 3) SOV-calculated by dividing brand spending into the total spending by media by total.

26. SOV • Rand the brands in terms of share of spending from high to low • Anheuser Bush 41.7 • Miller 20.5 • Coors 20.1 • Heiniken 11.0 • Guinnes 1.2

27. SOV • What is the share of spending for Coors compared to Anheuser-Busch? • 20.1 vs 41.7

28. SOV • Compare the media mix of Bud Light to Miller Lite. What are their strengths and weaknesses? • Spending on Bud is 62.2% in Network; Miller is 50.4% • Miller spending a greater % of their budget (not actual $’s, but % of budget) in Hispanic and cable & National Magazines. • Miller is light in Spot TV

29. SOV • What brand has the highest percentage of their media allocation dedicated to Hispanic television? Why do you think the brand allocated their dollars that way? • Opportunity to own Hispanics? • Miller might have better distribution in markets with heavy Hispanic populations. Maybe high BDI

30. SOV • What is the ratio of all television (national, local, cable and syndication) to all radio (national and local) dollars spent in the category? • TV 10.4+ 9+ 54.3 +15 + 2.5=91% • Radio .9 + 3.0 = 4%

31. SOV • How does the total share of spending for each brand compare to the share of spending they do on cable television? Why do you feel that certain brands spend more of less than their total share of spending on this particular medium? • Smaller brands spend more on cable-Busch, Guinness, Heinekin-cable less expensive out of pocket-brands have less $-opportunity to own a category…if anyone watching cable, these brands have greater opportunity to break thru clutter.

32. SOV • If Guinness Beer had an extra $50 million to invest in media, where would you allocate it to compete against Heineken? • An extra $50 million would make their spending similar…Hispanic, network radio, national newspaper, outdoor

33. Review for Midterm • 5 things all media plans must address: Who, what, where, when, how. • Who are you advertising to? • What are you advertising? • Where will you advertise ?(Markets/mediums/vehicles) • When are you going to be active? • How much should be spent on advertising?

34. Review for Test • 3 most important things for media plan • Objectives-The statement of action required of media to fufil the marketing plans ie Reach 70% of target minimum of 10 x first 4 weeks of schedule • Strategy-Media solution used to fufill the objectives ie Reach 70% of Ad2554 with TV, radio and outdoor every week of campaign at a ratio of 40% TV, 20% radio and 40% outdoor • Tactics-Very specific way of accomplishing strategy-Use TV News, News formatted magazines and News/Talk radio stations, bulletins, 2- ½ page print ads

35. Review for Midterm • What is the calendar that the entire advertising industry is based on called and how does it differ from a regular calendar?..Standard Broadcast Calendar..runs M-SU. Ends on the last Sunday of the calendar month. • If you reach 30% of your market with outdoor & 20% with TV, is your overallreach 50%? No…duplication • Mediums and vehicles • Mediums TV, Radio, Print. Vehicle is specific…CBS, KPLX-FM, Time Magazine.

36. Review for Midterm • Statistical areas DMA, MSA, TSA… what ares is TV planned and purchased for? DMA Radio? MSA or Metro • When looking at the life cycle of a product: • If the product is new, you need more Reach. • If the product is growing, you need Reach and Frequency. • If the product is mature, you need more frequency. • If the product is obsolete, probably nothing can help.

37. Review for Midterm • What is CPP? Cost per rating point. How is it calculated? Cost for a spot is $1000. Rating for that spot is 20. CPP is $1000/20 =$50 (The cost for reaching 1% of our target is % 50) Formula = Rating into cost • What is CPM Cost per thousand. How is it calculated? Cost for a spot is $250. # people for that spot is 50,000. CPM is .005 x 1000=5.00 Formula= cost/# people x 1000.

38. Review for Midterm • When talking about “GRP”s are we talking about the sum of audience impressions? NO GRP’s are % of pop.(Ratings) Impressions refer to numbers of imprints.

39. Review for Midterm • What are Gross Rating points…Sum of all ratings without regard to duplication. Gross Impressions…sum of all media exposures (includes duplication)

40. Review for Midterm • Do gross impressions in print include pass along readers? Yes • Exclusive Reach-Number of DIFFERENT people impacted • Average Frequency- Average number of times target is reached. • Formula for GRP’s R x F =GRP’s

41. Review for Midterm • Rating % of your population (not expressed with % sign) • Share % of HUT • Formula for Rating: Share x Hut =Rating • Advertising is part of Promotion

42. Review for Midterm • Calculating Gross impressions and cpm when you know cpp • In Dallas, Oprah costs $2000 for a :30 second spot making the cpp (cost per rating point) $500 for Women 2554. There are 300,000 women 2554 households in DFW. Determine the impressions and cpm • 1) Get Rating W2554 $2000/500 cpp=4 RW2554 • 2)Find Impressions: 300,000* .04 (4 rating or 4%) =12,000 impressions • 3)Find CPM: 2000*1000/12,000= $166.67 Multiply cost x 1000 and Divide by impressions to get cpm. • This says that 12,000 w2554 watch Oprah and it will cost 166.67 to reach 1000 of them

43. Review for Midterm • Calculating Ratings and CPP when you know impressions • Beaumont has a population of 200,000. To advertise in the paper is $2.00 per column inch and you are buying a 72-column-inch ad. The paper has a circulation of 100,000. What is the cpp? • 1) Find cpm 2.00 x 72 =$144 for the ad • 2) 144/100,000=1.44 cpm • 3) Find cpp 100000/200000=.50 or 50 rating Cost is $144, rating is 50 • 4) 144/50=2.88 cpp

44. Review for Midterm • Readers per copy • Prevention Magazine has a paid circulation of 2,500,000 with a total circulation of 10,000,000. Determine the readers per copy • Readers/Circulation • 10,000,000/2,500,000= 4.0

45. Review for Midterm • Index • A percentage that relates numbers to a base of 100 • BDI - how it is calculated and what it is used for -Brand Brand Development Index Addresses Brand sales in a market or a population (region) 11/10 =110 BDI % brand sales/% population or % of market % of Average market ie 22/20 =110 BDI

46. Review for Midterm CDI Identical to BDI but it addresses category sales instead of product sales. Usefullness is either to define pockets of strength or weakness for a category when you have new product or To assess brand development when compared to category development ie T-Mobile’s BDI is 110 but its slightly underdeveloped when compared to the category of Cell phones which is a 120 CDI A market with a high BDI and CDI is a promising market. Ideal for spending money in.