Chapter Objectives After reading this chapter you should be able to: • 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. • Describe the use of the efficiency index procedure for media selection.
Chapter Objectives (cont’d) • Distinguish the differences among three forms of advertising allocation: continuous, pulsed, and flighted schedules. • Explain the principle of recency and its implications for allocating adverting expenditures over time. • Perform cost-per-thousand calculations. • Review the application of media planning software and actual media plans.
Is Super Bowl Advertising Worth the Expense?Clint Eastwood and “Halftime in America”
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. • International media vehicle options: www.kidon.com/media-link • Several years ago, GM tried consolidating its media planning and buying into one organization (GM Planworks) and others have tried this strategy. • Creating effective messages is critical, but it is just as essential that the messages are placed in the right media and vehicles.
Selecting the Target Audience • The target audience should be pinpointed, otherwise exposures may be wasted, and prime candidates missed. • Four major types of information are used in segmenting target audiences: • Behavioral data • Geographic data • Demographics • Lifestyle/Psychographics
Specifying Media Objectives • What proportion of the population should be reached with vehicles containing the advertising message during specified period (reach) • How frequently should audience be exposed to the vehicles with the message during this period (frequency) • How much total advertising is needed to accomplish reach and frequency objectives (weight)
Specifying Media Objectives (cont’d) • 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 vehicles with the advertising message (recency) • What is the most economically justifiable way to accomplish objectives (cost)
Gross Impressions(“total exposures” or “duplicated audience”) • Gross Impressions: Total audience (homes) exposed during the specified time period to any of the media vehicles containing the ad messages on any occasion. • Average freq. = gross impressions / net coverage • e.g., 2.22 = 20 / 9
Reach (%) • Reach: The percentage of a target audience (e.g., homes) that is exposed at least once (e.g., 1, 2, 3, ...) during a specified time frame to the media vehicles containing the ad message. • e.g., 90% (9 of 10 homes) 90 = reach or “1+ exposures” 9 = “net coverage” or “unduplicated audience”
Determinants of Reach • More people are reached when a media schedule… • Uses multiple media • Diversifies vehicles within each medium • Varies the dayparts
Average Frequency • Frequency: The average number of times during the specified time period that members (homes) in the target audience are exposed to the media vehicles containing advertiser's message • e.g., 2.22 times
Hypothetical Frequency Distribution for the Smart Car Advertised in Cosmopolitan Magazine
The Concept of Frequency Distribution • In the hypothetical situation, 90% of the Fortwo’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 Cosmopolitan.
Weight • Weight: Represents how much advertising volume is required to accomplish advertising objectives. • A rating (in general) is the percentage of an audience that has an opportunity to see an ad placed in a vehicle. • Three weight metrics: • Gross ratings • Target ratings • Effective ratings
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) • e.g., 200 = 90 x 2.22
Determining GRPs in Practice • Rating: The proportion of the target audience exposed to a single issue of an advertising vehicle • GRPs are the sum of all vehicle ratings in a media schedule • The rating is a proxy for reach, while the sum (of the ratings) is a proxy for frequency
Determining GRPs in Practice • The Gross Ratings generated by a particular media schedule simply equal the sum of the individual ratings that can be obtained across all vehicles included in that schedule. (GRPs below = 91.0)
Does a Greater GRP Score Indicate a Better Campaign? • Plan X: 90% reach x 2 frequency = 180 GRPs • Plan Z: 52% reach x 3.08 frequency = 160 GRPs
Weight: Target Rating Points (TRPs) • Adjust a vehicle’s rating to reflect just those individuals who match the advertiser’s target audience (e.g., for “Smart Car” campaign -- 18-49 years; $50,000+; urban) • e.g., 91.0 GRPs x .30 = 27.3 TRPs
The Concept of Effective Reach • How often does the target audience have an opportunity to be exposed? • Effective reach (ER) is based on the idea that an advertising schedule is effective only if it has a minimum of three “exposures” (i.e., 3+ exposures) • Effective rating points = ER x freq. • 67 = 30 x 2.22
Effective Reach in Advertising Practice • 3-10 exposures during a media-planning period (typically 4 weeks) • Using multiple media • Subjective factors must be considered • Consumer awareness • Competitive position • Degree of loyalty • Message creativity • Objectives – e.g., awareness versus sales
Frequency: Strong competition Complex message Weak brand loyalty Target market that is well defined Frequently purchased products Reach versus Frequency Strategy? Reach: • New products • Undefined markets • Brands with large shares, loyal customers • Infrequently purchased products
Frequency Value Planning • The object offrequency value planning is to select that media schedule that generates the most exposure value per GRP. • Frequency value planning can be broken down into 5 steps: • Estimate the exposure utility • Estimate the frequency distribution • Estimate the OTS value at each OTS level • Determine the total value across all OTS levels • Develop an index of exposure efficiency
Figure 16.2: Continuous Schedule • Continuous advertising schedule: an equal number of ad dollars are invested throughout the campaign.
Figure 16.2: Pulsing Schedule • Pulsing: some advertising is used during every period of the campaign, but the amount of advertising varies from period to period.
Figure 16.2: Flighting Schedule • Flighting: the advertiser varies expenditures throughout the campaign and allocates zero expenditures in some months.
Recency Planning (a.k.a. The Shelf-Space Model) The recency principle is built on three interrelated ideas: • Consumers’ first exposure to an advertisement for a brand is the most powerful • Advertising’s primary role is to influence brand choice, and advertising does influence choice for a subset of consumers who are in the market of the product category at the time a brand in that category advertises • Achieving a high level of weekly reach for a brand should be emphasized over acquiring heavy frequency
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)
Use CPM With Caution! • Measures of cost efficiency, not of effectiveness • Lack of comparability across different audiences, different media, and different dayparts • Misused unless vehicles within a particular medium are compared on the same basis • Audience measurement can be challenging (pass along readership, duplication, circulation estimates)
Media-Scheduling Software • User develops a media database • User selects criterion for schedule optimization (e.g., reach, effective reach, frequency, GRPs, ...) • User specifies budget constraints (max., min.) and max./min. number of insertions per vehicle • User seeks out the optimum media schedule
The Diet Dr Pepper Plan • Campaign Target: • Adults ages 18 to 49 who were present or prospective diet soft-drink consumers • Campaign Objectives: • 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 • Heighten consumers’ evaluations of the key product benefit and image factors that influence brand choice in this category • Enhance those key brand-personality dimensions that differentiate Diet Dr Pepper from other diet drinks
Saab 9-5’s Media Plan • A mass-market advertising campaign was undertaken with the following objectives: • Generate excitement for new 9-5 model line • Increase overall awareness for Saab name • Encourage customers to visit dealers and test-drive • Retail 11,000 units of 9-5 during introductory year