Media Planning and Analysis

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Chapter Thirteen
Planning for and Analyzing Advertising Media
? 2007 Thomson South-Western
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Chapter Thirteen Objectives

• Describe the major factors used in segmenting
  target audiences for media planning purposes.
• Explain the meaning of reach, frequency, gross
  rating points, target rating points, effective
  reach, and other media concepts.
• Discuss the logic of the three-exposure
  hypothesis and its role in media and vehicle
  selection.

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Chapter Thirteen Objectives

• Describe the use of the efficiency-index
  procedure for media selection.
• Distinguish the differences among three forms of
  advertising allocation continuous, pulsed, and
  flighted schedules.
• Explain the principle of recency, or shelf-space
  model, and implications for allocating
  advertising expenditures over time.

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Chapter Thirteen Objectives

• Perform cost-per-thousand calculations.
• Interpret the output from computerized media
  models.
• Review actual media plans.

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Media Versus Vehicles

• Media are the general communication methods that
  carry advertising messagestelevision, magazines,
  newspapers, and so on.
• Vehicles are the specific broadcast programs or
  print choices in which advertisements are placed.
• For example, television is the media, and
  American Idol is the vehicle.
• Each medium and vehicle has a unique set of
  characteristics and virtues.

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Messages and Media A Hand-In-Glove Reaction

• Advertisers are placing more emphasis than ever
  on media planning.
• The choice of media and vehicles can be the most
  complicated of marcom decisions.

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The Media-Planning Process

• Media planning
• The design of a strategy that shows how
• investments in advertising time and space will
  contribute to the achievement of
• marketing objectives.

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Model of the Media Planning Process
Marketing Strategy
Advertising Strategy

• Media Strategy
• Target Audience Selection
• Objective Specification
• Media and Vehicle
• Media Buying

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Selecting the Target Audience

• Four major factors

(1) Buyographics
(2) Geographic
(3) Demographic
(4) Lifestyle/psychographics
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Specifying Media Objectives

1. What proportion of the population should be
   reached with advertising message during specified
   period (reach)
2. How frequently should audience be exposed to
   message during this period (frequency)
3. How much total advertising is needed to
   accomplish reach and frequency objectives
   (weight)

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Specifying Media Objectives

1. How should the advertising budget be allocated
   over time (continuity)
2. How close to the time of purchase should the
   target audience be exposed to the advertising
   message (recency)
3. What is the most economically justifiable way to
   accomplish objectives (cost)

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Reach

• Percentage of target audience that is
• exposed to an advertisement, at least
• once, during a certain time frame
• (usually four weeks)

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Frequency

• Average number of times, on average, during the
  media-planning period that members of the target
  audience are exposed to the media vehicles that
  carry a brands advertising message.

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Weight

• How much advertising volume is required to
  accomplish advertising objectives
• Three weight metrics
• Gross ratings
• Target ratings
• Effective ratings

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What Are Ratings?

• Ratings, in an advertising sense, simply mean the
  percentage of an audience that has an opportunity
  to see an advertisement placed in a particular
  vehicle.

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Weight Gross Rating Points

• Gross rating points, or GRPs, are
• an indicator of the amount of gross
• weight that a particular advertising
• schedule is capable of delivering
• GRPsReach(R) X Frequency(F)

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Determining GRPs in Practice

• GRPs are the sum of all vehicle ratings in a
  media schedule
• Rating proportion of the target audience
  presumed to be exposed to a single occurrence of
  an advertising vehicle in which the advertisers
  brand is advertised

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Weight Target Rating Points (TRPs)

• Adjust a vehicles rating to reflect just those
  individuals who match the advertisers target
  audience

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The Concept of Effective Reach

• How often does the target audience have an
  opportunity to be exposed?
• Effective reach is based on the idea that an
  advertising schedule is effective only if it does
  not reach members of target audience too few or
  too many times

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Effective Reach in Advertising Practice

• 3-10 exposures during a media-planning period
  (typically 4 weeks)
• Using multiple media
• Subjective factors must be considered

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An Alternative Frequency Value Planning

• The objective is to select the media schedule
  that generates the most exposure value per GRP.

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Continuity

• How advertising is allocated during the course of
  an advertising campaign how should the media
  budget be distributed?
• Continuous advertising schedule an equal number
  of ad dollars are invested throughout the
  campaign
• Pulsing some advertising is used during every
  period of the campaign, but the amount of
  advertising varies from period to period.
• Flighting the advertiser varies expenditures
  throughout the campaign and allocates zero
  expenditures in some months.

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Recency Planning (a.k.a. The Shelf-Space Model)

• Consumers first exposure to an advertisement is
  the most powerful
• Advertisings primary role is to influence brand
  choice
• (2) Achieving a high level of weekly reach for a
  brand should be emphasized over acquiring heavy
  frequency

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Optimizing Weekly Reach

• Advertising teaches consumers

• Influence brand selection

• Messages are most effective when close to
• purchase time

• Cost-effectiveness of first exposure is greater
• than subsequent

• Allocate budget to reach consumers often

• Reach target audience continuously rather than
  sporadically

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Cost considerations
Cost per Thousand (CPM) Target Market
(TM) CPM Cost of ad
of contacts (expressed in thousands) CPM-TM
Cost of ad
of TM contacts (expressed
in thousands)
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Tradeoffs

• Tradeoff must be made because media planners
  operate under the constraint of a fixed
  advertising budget

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Media Planning Software

• 1. User develops a media database
• 2. User selects criterion for schedule
  optimization
• 3. User specifies constraints
• 4. User seeks out the optimum media schedule