Media Planning

1
Media Planning

• Process of delivering the right message to the
  right people at the right time at the right place
  at the right price.
• October 28, 2009

2
Media Planning

• Right message
• Television, radio, digital, outdoor, print?
• How many people? (REACH)
• How many times? (FREQUENCY)
• Right people
• Clear profile
• Demographic
• Geographic
• Psychographic

3
Media Planning

• Right time
• When does audience want/notice message?
• Seasonality/ purchase cycles
• Continuous or intermittent
• Time of day
• Right place
• Where does audience want/notice message?
• At home/ at work/ out-of-home
• Right price
• Absolute dollars
• Cost efficiency (CPM, CPP)

4
Problems and Opportunities

• Increasing clutter
• Increasing number of media outlets audience is
  fragmenting.
• In the 1960s an advertiser could reach 80 of
  U.S. women with a spot aired simultaneously on
  CBS, NBC, and ABC. Today an ad would have to run
  on 100 TV channels to have a prayer of
  duplicating this feat. Monolithic blocks of
  eyeballs are gone. In their place is a
  perpetually shifting mosaic of audience
  microsegments that forces marketers to play an
  endless game of audience hide-and-seek."
  
  - Eric Schmitt, Forrester Research
• Increasing costs.
• Increasing complexity and importance of the media
  planning task.

5
Media Evaluation

• Reach (Net Audience)
• Number of different people exposed to the
  advertising
• 100 people, 20 exposed, Reach 20
• Frequency
• Number of times same person is exposed during
  specific time
• 100 exposures, reach 20, Frequency 5.0
• Gross Rating Point (GRP) Gross Audience
• Total exposures in advertising plan
• Reach 40, Frequency 7.0, GRP 280

6

• What it all comes down to is the most efficient
  and effective deployment of media dollars.

7
Media Objectives

• Audience
• Define the types of people the advertiser wants
  to reach
• Income
• Education Level
• Occupations
• Passions (Hobbies, interests, etc.)
• All from our segmentation discussion last week.

8
Media Objectives

• Distribution (advertising appearance)
• Where to run the ads?
• When to run the ads?
• How often to run the ads?

9
Media Terms

• Rating
• The percentage of homes (or individuals) exposed
  to an advertising medium.
• Rating of 1 1 of a given population.
• Example
• Friends had a 20 rating,
  meaning 20 of HHs with
  
  TV sets were tuned into
  the
  show.

10
Media Terms

• Gross Rating Point Gross Impression
• Example

11
CPM Computation

• Allows you to compare different vehicles within a
  media type (and even different media types)
• Lets say the Tribune charges 2,000 for a P4C ad
  but has 50,000 daily readers
• And say the Journal charges 3,100 for a P4C ad
  but has 83,000 daily readers
• Which is a more efficient buy?

12
Cost per Thousand Calculation

• Tribune 2,000/50 40.00 CPM
• Journal 3,100/83 37.35 CPM
• Cost Per Thousand (CPM) is universal measurement
  across all media

13
Other Factors

• Audience composition
• Demographic, psychographic, lifestyle,
  geographic, consumer behavior
• Editorial fit
• As a media planner on the Marlboro account, would
  you run an ad for cigarettes in Runners World,
  even if your target audience demographics matched
  those of the magazines readership?

14
Media Mix

• Message and medium fit
• Media choice
• Media class (television, magazines, etc.)
• Media vehicle (Today Show, People, Howard Stern,
  etc.)
• Media unit (30 sec., full-page, web banner,
  etc.)
• Media availability
• R/F control and efficiency
• Synergy effects (media integration)
• Budget control (efficient spending)

15
Geographic Use

• National
• Regional
• Local
• Choosing markets
• Category Development Index (CDI)
• Sales strength of a category in a market
• Brand Development Index (BDI)
• Sales strength of your brand in a market

16
Sales Potential

• Brand Development Index
• Indicates sales potential of a particular brand
  in a specific market.
• Example Suppose sales for Dr. Pepper in Los
  Angeles are 1.58 of Dr. Pepper total U.S. Sales
  AND the population of Los Angeles is 2 of the
  total U.S. Population.

17
Dr. Pepper BDI

• BDI 1.58 x 100 79 Index
• 2
• A BDI below 100 indicates poor potential for Dr.
  Pepper in Los Angeles.

18
Category Development Index

• For Media Planning
• Reflects the potential for the whole product
  category (soft drinks).
• Example If category sales in Los Angeles for
  soft drinks are 4.92 percent of total U.S.
  category sales, the CDI in Los Angeles is

19
CDI

• CDI 4.92 x 100 246 Index
• 2
• Meaning,
  the product category has
  high potential, but Dr.
  Pepper just isnt
  selling well.

20
What A Media
Planner Would Look At

• Problem or Opportunity?
• Has Dr. Pepper been in the market a long time?
• Is it relatively new to the market?
• Budget allocation in the L.A. Market?
• Competitive spending?

21
Media Scheduling

• Seasonality of product purchase
• Scheduling
• Continuous
• (uninterrupted run of advertising)
• Flighting
• (intermittent pattern periods of advertising
  followed by periods of
  no advertising)
• Pulsing
• (intermittent pattern period of
  heavy advertising followed by
  periods of light advertising)

22
Creative Strategy Examples

• Problem
• Xerox sponsors U.S. Golf Open in Rochester, home
  of Kodak
• Solution
• Kodak created a wrap-around first page in USA
  Today, carrying stories about Kodak copiers for
  market.

23
Creative Strategy Examples

• Problem
• Food product wanted to integrate media and
  promotion.
• Solution
• Co-op activity with local radio stations and
  retailers (contest promo) localized to the
  station.

24
Whats A Media Plan?

• A blueprint for action (a flowchart of activity)
• A document that explains what we will do.
• Its necessary to organize it, so that it flows
  smoothly.
• Two main audiences
• Client (includes Account Team)
• Media Buyers
• The plan needs to be well organized, well
  written, and simply presented.

25
Flowchart Example