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Media Planning and Buying

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  1. Media Planning and Buying

  2. Chapter Outline • Chapter Key Points • Media Planning and Buying • The Media Plan • Media Objectives • Media Strategies • A Sample Media Plan for Pizza Hut • Media Buying • Media Planning Changes and Challenges

  3. Key Points • Outline the basic media concepts used by planners and buyers • Describe the types of information compiled by media researchers • Analyze how media planners set media objectives • List the key media strategy decisions • Identify the responsibility of media buyers

  4. Fragmentation of mainstream media and proliferation of new media have made media buying and planning more challenging and more creative The Aperture Concept The goal of the media planner is to expose the target audience to the message at the critical point when the consumer is receptive to the brand message Media Planning and Buying

  5. The Media Plan • A written document that summarizes the objectives and strategies pertinent to the placement of a company’s advertising messages

  6. Information Sources Client information Market research Competitive advertising Media information Consumer information Client information Targeted markets Previous promotions and their performance Product sales and distribution patterns Brand plans The budget Media Research

  7. Market Research Independently gathered information about markets and product categories Competitive Advertising Media planners make decisions based on the amount of competitive traffic Share of voice Measures the percentage of total advertising spending by one brand relative to the competition Media Research

  8. Media Information Various media provide information about the size and makeup of their audiences Designated marketing area Consumer Information Media planners use consumer information to locate the target audience within media markets Media Research

  9. Exposure and GRPs The Reach Objective The Frequency Objective Effective Frequency Gross impressions The sum of the audiences of al the media vehicles used during a certain time span Gross Ratings Points Media planners convert impressions to gross ratings points in order to compare the efficiency of media schedules Media Objectives

  10. Exposure and GRPs The Reach Objective The Frequency Objective Effective Frequency The percentage of the audience that is exposed at least once to the advertiser’s message during a specific time frame Unduplicated audiences Media Objectives

  11. Exposure and GRPs The Reach Objective The Frequency Objective Effective Frequency Estimates the number of times the exposure is expected to happen Average frequency Frequency distribution Media Objectives

  12. Exposure and GRPs The Reach Objective The Frequency Objective Effective Frequency Combines the reach and frequency elements into one factor Media Objectives

  13. Media Strategies • Media planners determine the most cost-effective media mix that will reach the target audience and satisfy the media objectives • Strategies are designed to deliver on the media objectives, to deliver the right level of exposure in terms of reach and frequency

  14. Target audience strategies Media use Geography Consumption patterns Media mix selection Using a variety of media to get your message out to customers Media selection is based on message needs Media Strategies

  15. Cost Efficiency Cost per thousand CPM = cost of message unit/gross impressions x 1,000 Cost per point CPP = cost of message unit/program or issue rating Scheduling Strategies Timing strategies Duration: How long Continuity: How often The media budget An initial assessment of the amount of money available determines media used Media Strategies

  16. A Sample Media Plan for Pizza Hut • Situation and Consumer Analysis • Discusses media options and opportunities to narrowly target consumers using niche channels and programs • Describes target audiences, psychographics, and best way to reach these audiences

  17. A Sample Media Plan for Pizza Hut • Media Objectives and Aperture Strategies • Maintain top-of-mind awareness • Build broad research for new products/big events • Ensure important male targets are reached, and balance age 18-34 and 35-49 demographic deliveries • Provide option windows to address local needs

  18. A Sample Media Plan for Pizza Hut • The Media Mix • Establish a Pizza Hut presence • Create highly visible launch platforms for Big New Yorker and Star Wars event • Reach heavy pizza user target • Integrate national and local media plans

  19. A Sample Media Plan for Pizza Hut • The Flowchart: Scheduling and Budgeting Allocation • Uses graphics to show the month-by-month placement of messages • Detail the anticipated impact through forecasted levels of GRPs • Illustrate how the campaign budget is allocated by medium and by month

  20. Buying is a complicated process The American Association of Advertising Agencies (AAAA) lists no fewer than 21 elements in the authorization for a media buy Providing inside info Media buyers are important information sources for media planners Close enough to day-to-day changes in media popularity and pricing to be a constant source of inside information Media Buying

  21. Selecting Media Vehicles Choose the best vehicles that fit the target audience’s aperture The media planner lays out the direction; the buyer is responsible for choosing specific vehicles Negotiation Media buyers pursue special advantages for clients Locate the desired vehicles and negotiate and maintain satisfactory schedule and rates Media Buying

  22. Preferred Positions Locations in print media that offer readership advantages Preferred positions often carry a premium surcharge Extra Support Offers Value-added media services Contests Special events Merchandising space at stores Displays Trade-directed newsletters Media Buying

  23. Billing and Payment It is the responsibility of the advertiser to make payments to various media The agency is contractually obligated to pay the invoice on behalf of the client Monitoring the Buy The media buyer tracks the performance of the media plan as it is implemented, as well as afterward Poorly performing vehicles must be replaced or costs must be modified Media Buying

  24. Make-Goods A policy of compensating for missed positions or errors in handling the message presentation Ensure that the advertiser is compensated appropriately when they occur Post-campaign Eval Once a campaign is completed, the planner compares the plan’s expectations and forecasts with what actually happened Provides guidance for future media plans Media Buying

  25. Media Planning Changes and Challenges • Unbundling media buying and planning • Online media buying • New forms of media research needed

  26. Media plan • Definition • Challenges in media planning • Advertising agency organization

  27. SMRB Data • Cross tabulations of demographic groups with product usage and with media vehicle usage • Indexed based on 100 = average • Watch for population size

  28. Survey of Buying Power • Annual publication from Sales and Marketing Management • Geographic regions with population, income, retail sales figures • Creates buying power index • Uses?

  29. BDI Percentage of brand to total sales in geographic market BDI = ------------------------------------------------------------------ X100 Percentage of total population in the geographic market

  30. CDI Percentage of product category sales in geog. area CDI = ------------------------------------------------------------------ X100 Percentage of total population in geog. area

  31. Applications • BDI and CDI are both high • BDI is high, CDI is low • BDI is low, CDI is high • BDI and CDI are both low

  32. Media Planning • Finding the best way to get the message to the target market. “Best” means largest part of market at best price and in best media environment for the message • Media/Medium: general category as TV, radio, newspaper, magazines, direct mail • Media vehicle: specific carrier within a medium: Time magazine or Today Show

  33. Scheduling • Continuity • Flighting • Pulsing

  34. Buying terms • Exposures • Reach • Coverage (waste coverage) • Frequency • Exposures • Gross Impressions

  35. Gross Rating Points (GRP) • Reach X Frequency = GRP • 45% of target market saw ad twice • 90% of target market saw ad once • 10% of target market saw ad 9 times • 2500 GRPs = 70% awareness • 1000-2500 GRPs = 33% awareness • <1000 = almost no awareness • TRP

  36. Some rules of thumb: One exposure during purchase cycle has little or no effect Central goal? Frequency of two Beyond frequency of three

  37. CPM: Cost per Thousand CPM = Cost of Ad X 1000 Media Audience