CHAPTER 4.pdf

Because learning changes everything.® CHAPTER 4 Media Planning and Strategy © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Learni...

Because learning changes everything.® CHAPTER 4 Media Planning and Strategy © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Learning Objectives LO10-1 Define the key terminology in media planning. LO10-2 Explain how to develop a media plan. LO10-3 Describe the purpose of media objectives. LO10-4 Describe how to develop and implement media strategies. LO10-5 Compare the characteristics of various media. © McGraw Hill 2  An Overview of Media Planning 1 Media Selection Numerous options for delivery. Complicated because of nature of media themselves. Each offers different advantages. Also depends on product and/or service being advertised. Companies focusing on integrated IMC and using multiple media vehicles. © McGraw Hill 3  An Overview of Media Planning 2 Some Basic Terms and Concepts Media planning: Series of decisions involved in delivering promotional message to prospective consumers. Media objectives: Objectives formulated to organize a media plan. Media strategies: Plans of action designed to attain the media objectives. Medium: General category of available delivery systems. © McGraw Hill 4  An Overview of Media Planning 3 Some Basic Terms and Concepts continued Media vehicle: Specific carrier within a medium category. Reach: Measure of the number of different audience members exposed at least once to media vehicle in a specified period. Coverage: Potential audience that might receive message through a vehicle. Frequency: Number of times receiver is exposed to media vehicle in a specified period. © McGraw Hill 5  Figure 10-1 Ad Age’s Leading National Advertisers Total U.S. ad U.S. measured-media ad Rank Marketer spending 2021 spending 2021 1 Amazon $10,430 $1,455 2 Comcast Corp. 6,012 1,091 3 Procter & Gamble Co. 5,079 2,363 4 American Express Co. 3,976 152 5 Walt Disney Co. 3,759 1,090 6 Alphabet (Google) 3,602 767 7 Warner Bros. Discovery 3,413 994 8 Verizon Communications 3,394 728 9 Walmart 3,105 477 10 Charter Communications 3,071 258 *Ranked by total U.S. advertising spending in 2021. Dollars in millions. Ranking of top 200 advertisers: AdAge.com/lna2022. Database with ad spending, brands, profiles, executives and agency rosters for 100 biggest advertisers: AdAge.com/marketertrees2022. Source: https://adage.com/article/datacenter/25-biggest-us-advertisers-include- amazon-and-pg-leading-national-advertisers-2022/2419581.. © McGraw Hill 6  An Overview of Media Planning 4 The Media Plan Determines best way to get message to the market. Aims to find combination of media to communicate message: In most effective manner. To largest number of potential customers. At lowest cost. © McGraw Hill 7  An Overview of Media Planning 5 Problems in Media Planning Insufficient information. Sweeps periods: Used for measuring TV audiences and setting advertising rates. February, May, July, and November. Inconsistent terminologies. Time pressures. Difficulty measuring effectiveness. © McGraw Hill 8  Figure 10-3 The Relationship between Engagement and Ad Recall Access the text alternative for slide images. © McGraw Hill Source: The Nielsen Company. 9  Figure 10-4 Developing the Media Plan Access the text alternative for slide images. © McGraw Hill 10  Market Analysis and Target Market Identification 1 To Whom Will We Advertise? Primary research and/or secondary sources help determine which specific groups to target. Index number: Good indicator of the potential of a market. Percentage of users in a demographic segment Index = 100 Percentage of population in the same segment © McGraw Hill 11  Figure 10-7 How High Indexes Can Be Misleading Age Population in Product Use in Index Segment Segment (%) Segment (%) 18 to 24 15.1 18.0 119 25 to 34 25.1 25.0 100 35 to 44 20.6 21.0 102 45 + 39.3 36.0 91 © McGraw Hill 12  Market Analysis and Target Market Identification 2 What Internal and External Factors Are Operating? Internal factors: Size of media budget. Managerial and administrative capabilities. Organization of the agency. External factors: The economy (rising costs of media). Changes in technology. Competitive factors. © McGraw Hill 13  Market Analysis and Target Market Identification 3 Where to Promote? Using indexes to determine where to promote. Survey of buying power index: Charts potential of metro area, county, or city relative to U.S. as a whole. Gives media planners insight into relative value of a market. Brand development index (BDI): Factors rate of product usage by geographic area into decision process. Category development index (CDI): Provides information on potential for development of total product category and not specific brands. © McGraw Hill 14  Figure 10-9 Using CDI and BDI to Determine Market Potential Percentage of product category sales in Utah/Idaho CDI = 100 Percentage of total U.S. population in Utah/Idaho 1% =  100 1% = 100 Percentage of total brand sales in Utah/Idaho BDI = 100 Percentage of total U.S. population in Utah/Idaho 2% =  100 1% = 20 © McGraw Hill 15  Figure 10-10 Using BDI and CDI Indexes Access the text alternative for slide images. © McGraw Hill 16  Establishing Media Objectives Media Objectives Media situation analysis should lead to determining specific media objectives. Media objectives lead to attainment of communications and marketing objectives. Limited to goals that can be accomplished through media strategies. © McGraw Hill 17  Figure 10-11 Criteria Considered in the Development of Media Plans The media mix Target market coverage Geographic coverage Scheduling Reach and frequency Recency Creative aspects and mood Flexibility Budget considerations © McGraw Hill 18  Developing and Implementing Media Strategies 1 The Media Mix Adds more versatility to media strategies. Increases coverage, reach, and frequency levels. Improves likelihood of achieving overall communications and marketing goals. © McGraw Hill 19  Developing and Implementing Media Strategies 2 Target Market Coverage Match most appropriate media to a market. Extend media coverage to members of target audience while minimizing waste coverage. Waste coverage: Media coverage that reaches people who are not potential buyers and/or users. Geographic Coverage Weighting certain geographic areas more than others depending on product. © McGraw Hill 20  Figure 10-12 Marketing Coverage Possibilities Access the text alternative for slide images. © McGraw Hill 21  Developing and Implementing Media Strategies 3 Scheduling Timing promotional efforts so they coincide with highest potential buying times. Methods: Continuity: Regular pattern of advertising without gaps or nonadvertising periods. Flighting: Intermittent periods of advertising and nonadvertising. Pulsing: Maintains continuity, but promotional efforts are stepped up at times. © McGraw Hill 22  Figure 10-14 Three Methods of Promotional Scheduling Access the text alternative for slide images. © McGraw Hill 23 Figure 10-15 Characteristics of Scheduling Methods Access the text alternative for slide images. © McGraw Hill 24  Developing and Implementing Media Strategies 4 Reach versus Frequency How much reach is necessary? Reach: exposing potential buyers to the message. High level for new brands/products and at later stages of hierarchy. What frequency level is needed? Frequency: Number of times person is exposed to media vehicle in a specified period. 1:1 exposure ratio does not exist. © McGraw Hill 25  Figure 10-16 Who’s Still There to Watch the Ads? Access the text alternative for slide images. © McGraw Hill 26  Developing and Implementing Media Strategies 5 Reach versus Frequency continued Establishing reach and frequency objectives. Unduplicated reach: When ad is placed on two shows, the total number exposed once. Duplicated reach: When ad is placed on two shows, has potential exposure in both (overlap). Program rating: Measure of potential reach in broadcast industry. © McGraw Hill 27  Figure 10-17 Representation of Reach and Frequency Access the text alternative for slide images. © McGraw Hill 28  Developing and Implementing Media Strategies 6 Reach versus Frequency Using gross ratings points. Gross ratings points (GRPs): GRP = Reach × Frequency. Target ratings points (TRPs): Number of people in primary target audience the media buy will reach, and the number of times. Does not include waste coverage. Most advertisers prefer to get 500 to 700 GRPs. © McGraw Hill 29  Figure 10-18 Estimates of Reach for Network TRPs Access the text alternative for slide images. © McGraw Hill 30  Figure 10-19 The Effects of Reach and Frequency 1. One exposure of an ad to a target group within a purchase cycle has little or no effect in most circumstances. 2. Since one exposure is usually ineffective, the central goal of productive media planning should be to enhance frequency rather than reach. 3. The evidence suggests strongly that an exposure frequency of two within a purchase cycle is an effective level. 4. Beyond three exposures within a brand purchase cycle or over a period of four or even eight weeks, increasing frequency continues to build advertising effectiveness at a decreasing rate but with no evidence of decline. 5. Although there are general principles with respect to frequency of exposure and its relationship to advertising effectiveness, differential effects by brand are equally important. 6. Nothing we have seen suggests that frequency response principles or generalizations vary by medium. 7. The data strongly suggest that wearout is not a function of too much frequency; it is more of a creative or copy problem. © McGraw Hill 31  Developing and Implementing Media Strategies 7 Reach versus Frequency continued Determining effective reach. Effective reach: Percentage of audience reached at each effective frequency increment. Based on assumption that one exposure to ad may not be enough to convey desired message. Effective reach (exposure) is 3 to 10 exposures. Use average frequency when calculating GRPs. Average number of times target audience reached by a media schedule is exposed to vehicle over specified period. © McGraw Hill 32  Figure 10-20 Graph of Effective Reach Access the text alternative for slide images. © McGraw Hill 33  Figure 10-21 Factors Important in Determining Frequency Levels Marketing Message or Media Factors Factors Creative Factors Clutter Brand history Message complexity Editorial Brand share Message environment Brand loyalty uniqueness Attentiveness Purchase cycles New versus Scheduling continuing Usage cycle Number of media campaigns used Competitive Image versus share of voice Repeat exposures product sell Target group Message variation Wearout Advertising units © McGraw Hill 34  Developing and Implementing Media Strategies 8 Reach versus Frequency continued Effective frequency. 10 exposures are necessary to maximize attitudes while recall increases linearly. Recency. Recency planning: Short interval reach at minimum frequency levels as close to purchase decision as possible. Continuous schedule over one-week period. Less targeting to gain exposure to reach as many potential consumers as possible. © McGraw Hill 35  Developing and Implementing Media Strategies 9 Creative Aspects and Mood Creative aspects: Effective implementation of creativity requires appropriate medium. Requires media and creative departments to work together to achieve greatest impact with audience. Mood: Appropriate media used to create a mood that enhances the creativity of message. © McGraw Hill 36  Developing and Implementing Media Strategies 10 Flexibility Helps in addressing: Market opportunities. Market threats. Availability of media. Changes in media or media vehicles. © McGraw Hill 37  Developing and Implementing Media Strategies 11 Budget Considerations Absolute cost: Actual total cost required to place the message. Relative cost: Relationship between price paid for advertising time or space and size of audience delivered. Used to compare media vehicles. © McGraw Hill 38  Developing and Implementing Media Strategies 12 Budget Considerations continued Determining relative costs of media. Cost per thousand (CPM): Cost of ad space (absolute cost) CPM = Cost of ad space  100 Circulation Cost per ratings point (CPRP): Cost of commercial time CPRP = Program rating Daily inch rate: Cost per column inch of the paper. Module pricing: costs based on size of a set module, such as full page. 39 © McGraw Hill  Developing and Implementing Media Strategies 13 Budget Considerations continued Digital Pricing Models Digital pricing structure involves bidding: buyer participates in auction to purchase placement for the ad format. Programmatic: Automatic process using software for bidding process. Pass-along rate: Number of people who read magazine without buying it. Can be very subjective and inaccurate. © McGraw Hill 40  Developing and Implementing Media Strategies 14 Budget Considerations continued Determining relative costs of media. continued Target CPM (TCPM): Calculates CPMs based on target audience, not overall audience. Readers per copy: More than one person may read a magazine issue. Pass-along rate: Number of people who read magazine without buying it. Can be very subjective and inaccurate. © McGraw Hill 41  Evaluation and Follow-Up Factors to Consider How well did strategies achieve the media objectives? How well did this media plan contribute to attaining the overall marketing and communications objectives? © McGraw Hill 42  Characteristics of Media Must match media to markets. Each medium has unique characteristics. Each situation and media option must be analyzed. © McGraw Hill 43  Figure 10-26 Media Characteristics 1 Media Advantages Disadvantages Television Mass coverage Low selectivity High reach Short message life Impact of sight, sound, and motion High absolute cost High prestige High production costs Low cost per exposure Clutter Attention getting Favorable image Radio Local coverage Audio only Low cost Clutter High frequency Low attention getting Flexible Fleeting message Low production costs Well-segmented audiences Magazines Segmentation potential Long lead time for ad Quality reproduction placement High information content Visual only Longevity Lack of flexibility Multiple readers © McGraw Hill 44  Figure 10-26 Media Characteristics 2 Media Advantages Disadvantages Newspapers High coverage Short life Low cost Clutter Short lead time for placing ads Low attention-getting capabilities Ads can be placed in interest sections Poor reproduction quality Timely (current ads) Selective reader exposure Reader controls exposure Can be used for coupons Outdoor Location specific Short exposure time requires short ad High repetition Poor image Easily noticed Local restrictions Direct mail High selectivity High cost/contact Reader controls exposure Poor image (junk mail) High information content Clutter Opportunities for repeat exposures Digital/ User selects product information Privacy concerns interactive User attention and involvement Potential for deception Interactive relationship Clutter Direct selling potential Few valid measurement techniques Flexible message platform © McGraw Hill 45  Because learning changes everything. ® www.mheducation.com © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.