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Media Planning and Strategy. Satellite radio stations 2. Broadcast networks (TV and cable) 100. TV stations 3,510. Consumer magazines 5,340. Newspapers (daily and weekly) 8,100. Radio stations 13,898. The Traditional U.S. Media Landscape. Satellite radio stations 2.

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Presentation Transcript
the traditional u s media landscape

Satellite radio stations

2

Broadcast networks (TV and cable)

100

TV stations

3,510

Consumer magazines

5,340

Newspapers (daily and weekly)

8,100

Radio stations

13,898

The Traditional U.S. Media Landscape

Satellite radio stations

2

Broadcast networks (TV and cable)

100

TV stations

3,510

Newspapers (daily and weekly)

8,100

Consumer magazines

5,340

media terminology

Publications such as newspapers, magazines, direct mail, outdoor, etc.

Publications such as newspapers, magazines, direct mail, outdoor, etc.

The specific carrier within a medium category

The specific carrier within a medium category (i.e. Time Magazine, HGTV, etc.)

Number of different audience members exposed at least once in a given time period

Number of different audience members exposed at least once in a given time period

The potential audience that might receive the message through the vehicle

The potential audience that might receive the message through the vehicle

The number of times the receiver is exposed to the ad/media vehicle in a specific time period

Media Terminology

Print

Media

Media Vehicle

Reach

Coverage

Frequency

target audience coverage

Target

Market

Proportion

Full

Market

Coverage

Partial

Market

Coverage

Coverage

Exceeding

Market

Target Audience Coverage

Population excluding target market

Target market

Media coverage

Media overexposure

further defining reach

A. Reach of One Program

B. Reach of Two Programs

Total market audience reached

Total market audience reached

C. Duplicated Reach of Both

D. Unduplicated Reach of Both

Total reached with both shows

Total reach less duplicate

Further Defining Reach
marketing factors determining frequency

Brand Loyalty

Brand Share

Usage Cycle

Brand History

Share of Voice

Purchase Cycles

Target Group

Marketing Factors Determining Frequency

Marketing Factors

Brand Loyalty

Brand Share

Usage Cycle

Brand History

Share of Voice/

Competition

Purchase Cycles

message factors determining frequency

Message Complexity

Message Uniqueness

New Vs. Continuing Campaigns

Image Versus Product Sell

Message Variation

Wearout

Ad Size/Length

Message Factors Determining Frequency

Message

or Creative Factors

Message Complexity

Message Uniqueness

New vs. Continuing Campaigns

Image vs. “Straight” Sell

Message Variation

Wearout Considerations

three scheduling methods

Continuity

Flighting

Pulsing

Three Scheduling Methods

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

What are the pros and cons of each method?

media factors determining frequency

Clutter

Scheduling -continuous vs. pulse/flight/blast

Repeat Exposures

Attentiveness

Editorial Environment

Number of Media Used

Media Factors Determining Frequency

Clutter

Repeat Exposures (consumer- generated)

Media Factors

Attentiveness

Editorial Environment

Number of Media Used

flexibility in media planning strategies

Market opportunities

Market threats

Changes in media or media vehicle

Availability of media

Flexibility in Media Planning Strategies

Market opportunities

Market threats

Flexibility

Availability of media

determining relative cost of media cpm

Cost to Advertise

CPM =

X 1,000

Circulation

Determining Relative Cost of Media - CPM

Cost per thousand (CPM)

ratings
Ratings
  • Ratings are a measure of Reach
  • 110 million (MM) television households in the U.S., approximately equivalent to the total # of households in U.S.
  • Neilsen captures ratings data through Peoplemeters, diaries, surveys, etc. and publishes this data
  • 1 Rating Point = 1% of television households exposed to program = 110 MM x .01 = 1.10 million households exposed (roughly a million)
  • Example: 10 million households watch “House”. House’s rating is 10 MM / 110 MM = 9 points
  • Caveat: Rating % is always higher than % who viewed advertising
determining relative cost of media cpp

Cost of Advertising

CPP =

Program Rating

Determining Relative Cost of Media - CPP

Cost per rating point (CPP)

gross rating points grps
Gross Rating Points (GRPs)
  • GRPs = Reach x Frequency
  • Measure is specifically for television (and sometimes radio) media buys
  • Example: Advertising 5 times during a 10-rated program yields a 5 x 10 = 50 GRP media buy.
  • GRP as a summary number: does not provide distribution characteristics (i.e. is 100 GRPs = 50 rating x 2 exposures or = 25 rating x 4 exposures?)
  • Foote, Cone & Belding study findings
    • 2,500 GRP buy yields 70% probability of high awareness
    • 1,000 – 2,500 GRP buy yields 33% probability of high awareness
    • Less than 1,000 GRP buy yields virtually no awareness
  • Effective Rating Points (ERPs): GRPs adjusted for % of target audience that actually sees or ignores the message (i.e. 30% of target audience may “zip” or “zap” the commercial, stop watching, be inattentive, etc.)
problems with cpm cpp
Problems with CPM/CPP
  • What are the three main problems with Relative Cost of Media Measures like CPM and CPP?
  • Purely focused on cost per exposure; no focus on results, ROI, engagement, media impact, etc.
  • May not account for the effects of time and repetition
  • Calculations may use duplicated or unduplicated reach numbers
  • No adjustments made for continuity factors (continuity is beneficial!)
problems with cpm cpp20
Problems with CPM/CPP
  • SOLUTIONS
  • TEMPORAL CPM/CPP T-CPM, T-CPP
  • Weighted Impression CPM/CPP WI-CPM, WI-CPP
  • Continuity Adjusted CPM/CPP CA-CPM, CA-CPP
  • Formulas:
  • T-CPM = [CPM/Ad Exposure Time] / [Sales Time Period]
  • T-CPP = [CPP/Ad Exposure Time] / [Sales Time Period]
  • WI-CPM = ([Ad Cost] / [Sum of Weighted Impressions]) x 1,000
  • CA-CPM = [Ad Cost x (1 + ασ)] / [Weighted Impressions]
  • α = alpha coefficient σ = continuity index (st dev of time differences)