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Chapter 8

Media Planning and Buying

Learning Objectives
Learn about major decisions involved in media planning. Understand fundamental terms of media planning. Learn how to calculate media measures. Learn to use secondary data frequently used in media planning.
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Media Planning
I know half the money I spend On advertising is wasted, but I Can never find out which half. (JW)

What is media planning?


--The process of designing a course of action that shows how advertising time and space will be used to contribute to the achievement of marketing objectives.
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Problems in Media Planning


Insufficient information Inconsistent terminologies Time pressures Difficulty measuring effectiveness

Staging a Media Plan


A Media Plan is a Written Document that Summarizes the Recommended Objectives, Strategies, and Tactics Pertinent to the Placement of a Companys Advertising Messages.
Background and Situation Analysis Media Objectives & Aperture Opportunities Strategy: Selection of Media
Discusses Media Options, Opportunities and Target Audience. Goal or Task that Media Can Accomplish Based on Aperture Opportunities. Explains Why a Single Medium or Set of Media is Appropriate. Media Buyers Convert Objectives and Select, Negotiate, & Contract for Media Space.
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Flow Chart Scheduling & Budgeting

Consumer Attitudes Toward Media (abbreviated)


Authoritative
3% 11% 20%

Influential
2% 3% 9% 5%
57%

81%

9%

Television Radio

Newspapers Magazines

Dont know

Changes in Percentage of Network Commercial by Length


100% 80% 60% 40% 20% 0% 1965 1975 1985 1987 1988 1990 1992 Other 60 30 15

Setting Media Objectives


The Basic Goals That Direct Media Strategy Typically Focus on:
Whom to Advertise To Which Geographic Areas to Cover When to Advertise

What the Duration of the Campaign Should Be What the Size or Length of the Ad Should Be
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Specifying Media Objectives


1. What proportion of the target audience should be exposed to our message Reach 2. How often should the target audience be exposed to our message? Frequency
-- Motivational frequency -- Effective reach and frequency

Advertising Response Curves


Response Response

Threshold

Frequency

Frequency

a. S-shaped response curve

b. Convex response curve

When high frequency is required


A new brand A smaller, less known brand A low level of brand loyalty Relatively short purchase and use cycle With less involved (motivated and capable) target audiences With a great deal of clutter to break through (Joseph Ostrow at Y & R, JAR, 11 1984)

Specifying Media Objectives (contd)


3. How much total advertising is necessary to achieve the reach and frequency objective?
Weight (GRPs/TRPs, Gross Impressions) - FCB research: no awareness with <1000 GRPs

4. How to schedule the advertising campaign?


Scheduling or Continuity - Continuous scheduling - Pulsing - Fighting

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Three Methods of Media Scheduling


Continuity

Flighting
Pulsing

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Specifying Media Objectives (contd)


5. What is the least expensive way to accomplish media objectives?
Cost: Absolute and relative costs - CPM or CPP: Measures cost efficiency

6. Other considerations -- Geographic coverage


-- Qualitative media environment -- Recall research

* Confusing terms

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EXH 9-11

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How to Use Reach and Coverage


Use Reach
To express a whole number or percentage of different people actually exposed only once to a media vehicle to combination of vehicles.

Example: Television program X reaches 9 million men aged 18-34 within a four-week period. Example: Magazine Y has a reach of 25 percent of men aged 18-34 with an average issue.
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How to Use Reach and Coverage


Use Coverage To express the potential audience of a broadcast medium or the actual audience of a print medium exposed only once.

Example: A network television program may have a coverage of 95 percent of TV homes in the U.S. Example: Magazine Y has 25 percent coverage of men aged 18-34. (Means same as reach.)
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Some Basic Terms Used in Media Planning


Gross impressions: the sum of the audience of all media vehicles used within a designated time period
Jeopardy: 3,270,000 x 4 messages =13,080,000 People: 8,620,000 x 2 messages = 17,240,000

Time:

1,700,000 x 2 messages = 3,400,000


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---> 33,720,000 gross impressions

Relative Cost: CPM


= Cost of ad space X 1,000 /number of readers
Time Per-page cost: $156,000 Newsweek Per-page cost: $144,000 Number of readers: 3.1 MM CPM: $144,000X1,000/ 3.1 MM =$46.45
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Number of readers: 4.0 MM


CPM: $156,000X1,000/ 4.0 MM =$39.00

Relative Cost:CPRP
= Cost of ad time/Program rating
Drew Carey Cost per spot ad: $3,500 Rating: 11 CPRP: $3,500/11 =$318.18 Survivor Cost per spot ad: $4,000 Rating: 15 CPRP: $4,000/15 =$266.64
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Super Bowl Options


Scenario 1 ($891,000; one 30-second spot on one primetime show each night of the week)
Monday: Murphy Brown (CBS) Tuesday: Coach (ABC) Wednesday: 48 Hours (CBS) Thursday: Wings (NBC) Friday: Picker Fences (CBS) Saturday: The Commish (ABC) Sunday: CBS Sunday Night Movie Comparison with Super Bowl XXV Ratings points: +48% Reach: +6%
Source: N. W. Ayer (1994) Notes: Ratings points/reach comparisons are based on adults 18-49. Reach is based on actual delivery of each schedule from the week of November 15, 1993. Nielsens cumulative audience data were used for this analysis. Costs were based on October Media Watch figures. A single Super Bowl commercial (30 seconds) cost $900,000 in 1994.

Scenario 2 ($895,000; a 30-second prime-time roadblock on Sunday and Monday nights)


Sunday: ABC Sunday Night Movie CBS Sunday Night Movie NBC Sunday Night Movie Married With Children (Fox) Monday: Day One (ABC) Daves World (CBS) Blossom (NBC) Fox Movie Comparison with Super Bowl XXV Rating point: +64% Reach: +25%

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Some basic terms used in media planning (contd)


GRPs: the sum of the total exposure potential of a series of media vehicles as a % of the audience population -- GRPs = Reach x Average frequency TRPs: .. As a % of the target audience population
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U.S. Main Media Volume (in percentage), Analyzed by Media Groups


1978 100.0 43.5 14.0 30.8 10.1 1.6 1997 100.0 37.6 8.9 40.1 12.1 1.3

Total Newspaper Magazine Television Radio Outdoor


1998.

SOURCE: reprinted with permission from Advertising Age, various dates. Copyright Crain Communications Inc.,

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Using Electronic Media


Types of Television Advertising
Network Advertising
-Sponsorship -Paticipation

Spot Advertising
-National and Local

Syndication
- Off-network syndication v. first-run syndication -Straight cash v. barter system

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Using Electronic Media


Rating/Share/HUTS CDI and BDI

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Rating
Share

Total HHs tuned to a program Total HHs with TV set at hom e


Total HHs tuned to a program Total HHs with TV set on

100
100

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HUT =

TotalHHs with TV set on 100 TotalHHs with TV set at home

Rating = Share HUT

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CDI and BDI


The Brand Development Index (BDI) helps
marketers factor the rate of product usage by geographic area into the decision process.

BDI =

percentageof brandto totalU.S. sales in the market 100 Percentageof totalU.S. populationin market

The Category Development Index (CDI)


is computed in the same manner as the BDI, except it uses information regarding the product category (as opposed to the brand) in the numerator.

CDI =

Percentageof productcategorytotalsales in market 100 Percentageof totalU.S. populationin market


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Using CDI and BDI to determine market potential


CDI =
Percentageof productcategorysales in Utah/Idaho 100 Percentageof totalU.S. populationin Utah/Idaho

2% 100 1%

200

BDI =

percentageof totalbrandsales in Utah/Idaho 100 Percentageof totalU.S. populationin Utah/Idaho

1.2% 100 1%

120
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Using BDI and CDI Indexes


v
High CDI Low CDI High BDI
High market share Good market potential High market share Monitor for sales decline

Low BDI
Low market share Good market potential Low market share Poor market potential

High BDI and high CDI High BDI and low CDI

This market usually represents good sales potential for both the product category and the brand. The category is not selling well, but the brand is; probably a good market to advertise in but should be monitored for declining sales.

Low BDI and high CDI

The product category shows high potential but the brand is not doing well; the reasons should be determined.
Both the product category and the brand are doing poorly; not likely to be a good place for advertising. 30

Low BDI and low CDI

Using Printing Media


Newspaper rate
-- SAUs (Standard Advertising Unites) in 1984 -- Flat rate v. open rate -- Run-of-paper v. preferred position rate -- Combination rate: several nps as a group -- National advertisers pay much more for newspaper space
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Using Print Media


Magazine circulation

Primary circulation (in-home readers):


Subscription + news stand (a single copy circul.) A basis for rate structure

Secondary circulation (out-of-home readers) Paid circulation v. controlled circulation Guaranteed circulation v. verified circulation ABC (Audit Bureau of Circulations) Total audience=readers per copy x circulation of an average issue

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SMRB/MRI Reading
Base: Female Homemakers Top Row: There are 86,474,000 female homemakers in the U.S. Column A: 77,418,000 female homemakers use breakfast cereals. Column B: All female homemakers using breakfast cereals is equal to 100% (i.e., base). Column C: 89.5% of the total female homemakers use breakfast cereals .
77 ,418 ,000 100 89 .5% 86 ,474 ,000
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Second Row: There are 3,925,000 female homemakers who read the magazine, Money. Column A: 3,448,000 readers of Money use breakfast cereals. Column B: 4.5% of all users of breakfast cereals read Money. 3,448 ,000 Column C: 87.8% of Money readers are users of breakfast cereals 3,448 ,000 Column D: Money readers are 2% less likely to use breakfast cereals than all U.S. female homemakers

77 ,418 ,000
3,925 ,000

100 4.5%

100 87 .8%

87.8 100 98 89.5


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Review
Learn about major decisions involved in media planning. Understand fundamental terms of media planning. Learn how to calculate media measures. Learn to use secondary data frequently used in media planning.
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