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© 2009 South-Western, a part of Cengage Learning

Chapter 14

Media Strategy and Planning for Advertising and IBP

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The Transition to Part 4:Placing the Message in Conventional

and “New” Media

Starting to study the “placement” phase of advertising and IBP

Focus is on using media and IBP tools that “reach” the target audience.

Even a great message will be ineffective if it does not reach the proper audience

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Introduction: The Wide World of Promotional Brand Media Vehicles

The 2008 SuperBowl attracted 2.5X as many viewers as the 1967 SuperBowl but cost 10X as much.

Advertisers are looking to more and different media to effectively reach target audiences.

While “new’ media get a lot of attention, “old” media still attract a lot dollars.

New media are merging with old.

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Very Important Changes in Media [1]

1. Agency Compensation 15 percent commission is gone Most clients now pay on a fee-for-service basis Ad creation and placement not at same agency

2. More Media Traditional media lines are blurred Firms push “news” stories into media Movies can be promotional vehicles

3. Going Public Agencies are “leaner” now that they are public firms Agencies are looking for ways to turn short term profits

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Very Important Changes in Media [2]

4. Greater Accountability: ROI Trust use to be basis for relationship—now ROI. Other forms of media produce more measurable

results than mass media so more IBP tools are being demanded.

5. Globalization Today media exist in a transnational space—CNN Search engines to not recognize national

boundaries. Lack of standardized measurement makes

pricing complex.

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Very Important Changes in Media [3]

5. Free Content Internet information has consumers used to free content. Why buy a magazine full of ads for $4.50? Nontraditional media, which consumers enjoy, are attracting

more dollars.

6. Consumer Generated Content (CGC) Consumers are creating “brand material” even ads on the

Internet. Ads cost marketer or agency nothing but may be way off

target.

7. Consumer in Charge E-commerce has revolutionized the way consumers consume. Marketer not solely in charge of brand. Consumer access to more info=more power in the channel. Consumers have more power in the transaction due to deal-

proneness and price/cost transparency.

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Very Important Changes in Media [4]

9. Hyper-Clutter and Ad Avoidance Worse than ever on TV and in magazines Consumers choosing no-ad channels/satellite radio Ad blocker filters are improving on Web People are more willing to pay to avoid ads

10. Multicultural Media Ethnic media on rise with ethnic population growth Hispanic/Latin/Latino market growing the fastest Asian market next fastest growing

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The Fundamentals of Media Planning

Poor message placement undermines even a great message

Above-the-line (measured media)– TV, radio, magazines, newspaper, outdoor, etc.

Below-the-line (unmeasured media/IBP tools)– Internet search, shelf placement, coupons, events, in-

store promotions, etc.

Key distinction—IBP is not a “media” placement but is coordinated with media placements

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Media Planning

Media Plan– Specifies media in which advertising message

will be placed to reach a desired audience Media Class

– Broad category of media, such as TV, radio, or newspapers

Media Vehicle– Specific option within a class, i.e., Vogue

Media Mix– Blend of different media to reach target audience

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The Overall Media Plan

Target AudienceTarget Audience

Media StrategiesMedia Strategiesa. Reach the target audiencea. Reach the target audienceb. Geographic scope of placementb. Geographic scope of placementc. Message weightc. Message weight

Media ChoiceMedia Choicei. Media efficiency (CPM, CPRP)i. Media efficiency (CPM, CPRP)

More Media StrategiesMore Media Strategiesd. Reach and frequencyd. Reach and frequencye. Continuitye. Continuityf. Audience duplicationf. Audience duplicationg. Length / size of advertisementsg. Length / size of advertisements

h. Media contexth. Media context

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Media Planning: Strategies [1]

Reach the target audience Demographic, geographic, lifestyle / attitude define

choices Single-source tracking services help identify effect

of placements

Geographic scope of media placement Geo-targeting of regions of high-purchase density Reach and frequency decisions Effective reach and effective frequency determination Message weight Gross impression calculation for impact

– Between vehicle duplication– With-in vehicle duplication

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Media Planning: Strategies [2]

Continuity: Continuous scheduling Flighting Pulsing “Forgetting” function

Media Context: Editorial climate/tone of

media vehicle

Length or Size of Ads: Creative requirements “Square root” law Media budget Competitive environment—

may want to match size

and length of key

competitors

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Media Planning: Competitive Media Assessment

Assessment of how competitors are spending in media

“Share of Voice” is measure of one advertiser’s expenditures vs. others

Important when competitors are all focused on one narrow segment (i.e. heavy user product categories)

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Media Planning: Media Efficiency

CPM = CPM = cost of media buycost of media buytotal audiencetotal audience

X 1000 X 1000

CPM-TM = CPM-TM = cost of media buycost of media buytargeted audiencetargeted audience

X 1000 X 1000

CPRP = CPRP = $$$ for a program placement$$$ for a program placementprogram ratingprogram rating

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Media Planning: Internet

Internet Media– Internet media are “Pull” media

– Traditional media are “Push” media

– Paid search is most potent tool

Interactive Media– Overused and ill-defined term

– Includes kiosks to blogs to podcasts to Internet shopping sites

– Growing rapidly

– Consumers seek ads/brand contact

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Media Choice and Integrated Brand Promotion

Madison and Vine Media– Merging of entertainment and advertising– Also referred to as branded entertainment– Began as TV and film brand placements

Social Networking– Revolutionized mediated communication– Provide “triadic” communications

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The Real Deal

Data Quality– Cultural hang-up on numbers– Media exposure is not a good measure of ad

impact– Firms are seeking alternatives to Nielsen

Ads for Advertisers– Media firms use ads to attract advertisers

The Media Lunch– Media is more than a numbers industry– Personal relationships are still pursued

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Contemporary Essentials in Media

Computer Media-Planning Models– Major firms offer data bases– Data is not standardized across media– Allows for wide range of possible buys

Making the buy– Securing electronic and print media space– Agency of Record purchases space– Each spring the “upfront” media buys

occur when fall broadcast programming is announced

– Some firms use a Media Buying Service

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In Defense of Traditional Advertising

There are just some things you can’t accomplish without traditional mass media ads.

The Super Bowl or Olympics deliver a truly mass audience.

Brand building still needs traditional ads . . . at least for a while longer.

Throwing around “new media” planning buzzwords doesn’t work.

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