Ch. 10 Media Planning and Strategy

Basic Terms and Concepts

Media Planning

Media Plan

Media Objectives

Media Strategies

Medium

Media Vehicle

Reach

Coverage

Frequency

Developing the Media Plan

Market Analysis

Establishment of media objectives

Media Strategy development

and implementation

Evaluation and follow-up

Market Analysis

• To whom shall we advertise?Index = Percentage of users in a demographic segment x 100

Percentage of population in the same segment

Age Population in Product Use Segment Segment (%) in Segment (%) Index--------------------------------------------------------------------------------18-24 15.1 18.0 119 25-34 25.1 25.0 10035-44 20.6 21.0 102 45+ 39.3 36.0 91

Questions:1) What does an index of 100, >100, and <100 mean?2) Will “population in a segment” sum to 100%? Why or why not?3) Will “product users in a segment” sum to 100%? Why or why not?

Market Analysis (cont.)

• What internal and external factors are influencing?

Internal Factors

External Factors

Market Analysis (cont.)

• Where to promote (geographically)?1) Buying Power Index (or Living Expense Index)

2) The Brand Development Index (BDI)

BDI = Percentage of brand to total U.S. sales in the market x 100

Percentage of total U.S. population in the market

3) The Category Development Index (CDI)

CDI = Percentage of product category total sales in the market x 100

Percentage of total U.S. population in the market

Questions:

1) What does BDI and CDI mean?

2) What do combinations of BDI and CDI tell us? (e.g., Pepsi & Coke)

Establishing Media Objectives

Media objectives are the goals for the media program and should be limited to those that can accomplished through media strategies. Such objectives are often expressed in terms of coverage, reach, frequency, scheduling, etc.

Developing & Implementing Media Strategy

• Developing a Media Mix

• Determining Target Market Coverage (exceedingly, fully, partially)

• Determining Geographic Coverage (different areas might receive different form and degree of media emphasis)

• Scheduling (continuity, flighting, pulsing)

• Reach versus Frequency (trade-off b/t them)

• Creative Aspects and Mood (selecting appropriate media to match the Ads)

• Flexibility

• Budget Considerations

Reach versus Frequency

1) Determine what levels of reach and frequency are needed

2) Establishing reach and frequency objectives (un/duplicated)

3) Gross Rating Points (GRPs) and Target ratings points (TRPs)

GRP = Reach (%) x Frequency

Reach versus Frequency (cont.)

4) Determining effective reach• Effective reach

• Average frequency

Ex: 50% of audience is reached 1 time; 30% is reached 5 times; 20% is reached 10 times. Thus the average frequency is 4.0.

Budget Considerations

Absolute cost of media

Relative cost of media

1) Cost per thousand (CPM) for magazine industry

CPM = Cost of ad space (absolute cost) x 1,000

Circulation

2) Cost per ratings point (CPRP) for broadcast media

CPRP = Cost of commercial time

Program rating

3) Daily inch rate for newspaper

Cost per column inch of the paper

Evaluation and Follow-up

To determine the media program’s effectiveness, two questions need to be answered:

1) How well did these strategies achieve the media objectives?

2) How well did this media plan contribute to attaining the overall marketing and communications objectives?

Ch. 11 Evaluation of Broadcast Media of Television and Radio

Television could combine visual images, sound, motion, and color into a program, thus is considered an ideal advertising medium.

Structure of the Television Industry

• Local Stations and Networks-

• Cable Television• Public Television• Syndication

• Direct Broadcast Satellite (DBS) Services

Buying TV Time: Network vs. Spot

• Network and Cable advertising

• Spot and local advertising (national spot, local advertising)

• Syndicated Programs: shows that are sold or distributed on a station-by-station, market-by-market basis.

Buying TV Time: Different Buying Modes

• Sponsorship

• Participations

• Spot announcements

Buying TV Time: Selecting Time Periods and Programs

Considerations here include the selection of a specific time period or daypart segment and audience size and demographic composition.

Common Television Dayparts .

Morning 7am - 9am, M~ FDaytime 9am - 4:30pm, M~FEarly fringe 4:30pm - 7:30pm, M~F Prime-time access 7:30pm -8pm, Sun.~Sat.Prime-time 8pm - 11pm, M~Sat., and 7pm-11pm, Sun.Late news 11-11:30pm, M~F Late fringe 11:30-1am, M~F

Measuring the TV Audience

Audience Measures• Television Households

• Program Rating = Number of Household turned to show x 100

Total number of U.S. Household

• Households Using Television

• Share of Audience = Number of Households turned to show x 100

U.S. households using TV

Audience Information Sources

• The source of national and network TV audience information is the Nielsen Television Index (NTI)

• Information on local audiences is provided by Nielsen Station Index (NSI).

Radio

In contrast to television, radio has been called the Rodney Dangerfield of media because it gets little respect from many advertisers. However, it has its own uniqueness.

Buying Radio Time

• Network Radio vs. Spot Radio vs. Local Radio

• Time periods and programs

• Audience Information