Selecting the Most EffectiveAdvertising Media for Your Message and Customer Presented By: May 17, 2011
MRPP Media, Research Planning & Placement Focus and Passion is Media Effective and efficient media planning delivering increased sales and ROI
MRPPOur Company Mission is to… Maximize and extend our clients media advertising budgets using creative thinking and proprietary research. We do this with a team of dedicated planners and buyers with years of experience in media planning and buying. Our goal is to deliver to our clients the most effective and cost efficient budget which results in increased sales and ROI
Today’s Discussion Establishing Goals Media Selection Influencing Conditions Choosing the Appropriate Media Negotiation Follow-up Did it work?
Media Is a Toolfor Implementing the Marketing Strategy
Step 1 - Establish Media Goals How Will You Measure Success? Awareness vs. Direct Response Campaigns Minimal Delivery Levels: GRPs = R x F Determine Optimal Frequency Levels Minimum of 3.0 Maximum of 12.0
Media Rule of ThumbAudience must be exposed toan advertising message aminimum of three times beforethey make a consciencedecision to consider yourproduct or disregard it.
Step 1 - Establish Media Goals Deliver as Much Reach as Budget Allows Ensure Frequency Levels are Appropriate for Campaign Impact Competitive Considerations What are the Other Guys up to?
Step 2 – Confirm Influencing Conditions Key Factors to be Considered Target Audience Target Geography Timing Creative Execution Budget
Step 2 – Confirm Influencing Conditions Pinpoint and Prioritize Target Audiences Age Sex Income Education Levels Occupation Lifestyle Factors
Step 2 – Confirm Influencing Conditions Confirm Timing Issues Special Event or Ongoing Presence? Seasonality of Product or Service? How Long is Purchase Cycle? Competitive Activity? Goal is to Maintain Continuity, Emphasize Opportunities within Budget Parameters
Step 2 – Confirm Influencing Conditions Creative Execution What Media Vehicle (s) Best Communicate the Message? Demonstration or Details Required? Emotional Impact Important? Promotional Support Needed? Length or Size of Ads Color or Black & White
Step 2 – Confirm Influencing Conditions Budgetary Considerations Budgetary Considerations Established vs. Requested Budgets Competitive Activity Should Always Be Considered Revenue Projections Can Assist in Acquiring Additional Funding
Step 3 – Determine Best Vehicles Quantitative Research Quantitative Research Broadcast Nielsen for Television Arbitron for Radio Print ABC for Consumer Publications BPA for Business Publications Online Nielsen Net Ratings ComScore Quantcast
Step 3 – Determine Best Vehicles Other Factors to Consider Other Factors to Consider Editorial Appropriateness Competitive Presence Past Successes, Failures Duplication Cost Efficiency Affordability
Step 3 – Determine Best Vehicles Television – Overview Television – Overview HH Coverage is at 98.9% 61.9% of HH have Multiple Sets Average HH Viewing – 50+ Hrs/Week Cable Penetration Over 90% DVR Penetration is at 37% Satellite TV an Increasingly Strong Player
Step 3 – Determine Best Vehicles Broadcast TV – Advantages Broadcast TV – Advantages Broadest Reaching Medium Individual Stations up to 70% Reach Highly Influential Due to Combined Audio and Visual Elements Targeted Programming Environment Fairly Quick Turn Around Time
Step 3 – Determine Best Vehicles Broadcast TV – Disadvantages Broadcast TV – Disadvantages Not as Geographically Targeted Increasing Audience Fragmentation Easy to Avoid Ads (DVR/TiVo, etc.) Expensive to Build Effective Frequency Limited Promotional Opportunities High Cost Medium
Step 3 – Determine Best Vehicles Cable TV – Advantages Cable TV – Advantages Very Geographically Targeted Specific Demographics Can Be Targeted via Network Selection More Cost Effective Way to Build TV Message Frequency Promotional Opportunities Quick Turn Around Time
Step 3 – Determine Best Vehicles Cable TV – Disadvantages Lower Reach Potential than Broadcast TV Individual Networks up to 37% Reach Quality and Quantity of Local Breaks Can Be Difficult To Compare With Other Broadcast Media Multiple Systems Needed for Broad Areas Easy to Avoid Ads (DVR/TiVo, etc.) Not All Networks Accept Local Ads
Step 3 – Determine Best Vehicles Radio - Advantages Radio - Advantages Highly Targeted Demographically Great for Building Frequency Affordably Reaches TA at Home, Work, and in Car Highest Time Spent of Any Medium Variety of Promotional Opportunities Flexible, Immediate Placement
Step 3 – Determine Best Vehicles Radio - Disadvantages Radio - Disadvantages Not a High Reach Medium Audience Fragmentation as Formats Compete for Audience Share No Visual Impact Impression May be Transient (Active vs. Passive Listening) Easy to Switch Stations
Step 3 – Determine Best Vehicles Newspaper - Advantages Newspaper - Advantages Broad Reach in Local Areas Communicates Detail Well More Immediacy than Magazines Specialty Pubs Offer Best Reach to Specific Populations (e.g., Ethnic, Seniors)
Step 3 – Determine Best Vehicles Newspaper - Disadvantages Newspaper - Disadvantages Most Are Not Demographically Targeted Expensive to Build Frequency Color Reproduction Poor, Expensive Small Pass Along Audience Short Shelf Life Younger Adult Readership Declining High Total Cost
Step 3 – Determine Best Vehicles Magazine - Advantages Magazine - Advantages Very Demographically Targeted Quality Editorial Environment Fine Color Reproduction Sizable Pass Along Audience Long Shelf Life
Step 3 – Determine Best Vehicles Magazine - Disadvantages Magazine - Disadvantages Early Closing Dates, Long Lead Times Lack of Immediacy Slow Building of Reach Typically Not As Geographically Targeted
Step 3 – Determine Best Vehicles Out of Home - Advantages Out of Home - Advantages Broad Coverage of Local Markets High Frequency Building Geographic Flexibility High Summertime Visibility Great Support Medium for Television
Step 3 – Determine Best Vehicles Out of Home - Disadvantages Out of Home - Disadvantages Limited to Simple Messages High Reach Doesn’t Always Mean High Message Recall Proportionally High Cost for Production
Step 3 – Determine Best Vehicles Direct Mail - Advantages Direct Mail - Advantages Extremely Selective Demographically and/or Geographically Targetable Response Rate is Easy to Measure Personalized Medium
Step 3 – Determine Best Vehicles Direct Mail - Disadvantages Direct Mail - Disadvantages Most Expensive Cost per Thousand Inaccurate and Incomplete Lists Variance in Delivery Dates High Tune Out Factor
Step 3 – Determine Best Vehicles Internet - Advantages Internet - Advantages Directly Measurable Extremely Flexible, Adaptable Personalized Messaging Minimal Waste
Step 3 – Determine Best Vehicles Internet - Disadvantages Internet - Disadvantages Relatively High CPM Can be Complex to Analyze, Purchase Not All Websites Accept Advertising Often Not Geo-Targetable Less Effective Without Mass Media
Step 3 – Determine Best Vehicles Test Your Knowledge – Test Your Knowledge – Target Audience is: M18-34, Highly Educated, Upper Income Target Geography is Charlotte Metro Looking for Promotional Extensions Need Frequency to Drive Traffic Which Medium is Best?
Radio or possibly Cable
Step 3 – Determine Best Vehicles Test Your Knowledge – Test Your Knowledge – Target Audience is: Women 25-54, Enjoy Gardening, Have Kids Target Geography is National Campaign Goal is Awareness, Not Immediate Direct Response Which Medium is Best?
Magazine or possibly Internet
Step 3 – Determine Best Vehicles Test Your Knowledge – Test Your Knowledge – Target Audience is Adults 25+ Target Geography is Greater Orlando, FL Ad Needs to Convey Complicated Information Goal is Broad Reach, Minimal Frequency Over a 2-week Period Which Medium is Best?
Newspaper or Broadcast Television
Step 4 – Negotiating the Buy Implementing the Strategy Implementing the Strategy Use Full Budgets to Negotiate Best Pricing, Added Value Broadcast Most Negotiable with Rates (Supply and Demand) Magazines and Internet Somewhat Negotiable Newspaper Least Negotiable (Contracts and Short Rates)
Step 4 – Negotiating the Buy Broadcast Media – Television vs. Radio Broadcast Media – Television vs. Radio Both are Fairly Negotiable if Purchased Far Enough in Advance TV Least Costly in 1st and 3rd Quarters Radio Least Expensive in 1st Quarter Purchase TV Programs, Not Stations Purchase Radio Stations, Cable Networks
Step 4 – Negotiating the Buy Avoiding the Number of Spots Trap Not All Spots Are Created Equal First Look At Ratings Delivery Then Design Schedules with Optimal Frequency, Not Number of Spots
Step 4 – Negotiating the Buy Radio – Which Is The Best Buy? Radio – Which Is The Best Buy? TA is Men 35-64 in Raleigh, NC Schedule Airs M-F 6a-7p for 1 week WQDR-FM (Country) 25 spots/week WRAL-FM (Contemporary) 25 spots/week Same Cost for Both Stations
Step 4 – Negotiating the Buy Side by Side Delivery Comparison Side by Side Delivery Comparison WQDR-FM WRAL-FM .7 avg. spot rating .8 avg. spot rating 25 spots 25 spots 70.0 GRPs 80.0 GRPs 15.3% Reach 24.8% Reach 4.5 Frequency 3.1 Frequency Arbitron December 2010 PPM
Step 4 – Negotiating the Buy Magazines Magazines Better Rates for Higher Frequency Last Minute Remnant Space Offers Preferred Placement, Color Upgrades Value Added Subscriber Lists for DM or Email Counter Cards Website Links
Step 4 – Negotiating the Buy Newspaper Newspaper Contracts Required, Short Rates Applied Rates Vary Based on Type of Advertiser Repeat Discounts Offered Value Added Special Sections Color Upgrades Preferred Placement
Step 4 – Negotiating the Buy Important Factors to Consider Important Factors to Consider CPP or CPM Duplication Vendor’s Share of Budget Positioning/Placement Delivery Guarantees Value Added Extras
Step 5 – Post-Buy Analysis Did We Really Get What We Paid For? Did We Really Get What We Paid For? As Crucial to the Success of the Campaign as Planning and Buying Check Positioning and Delivery Makegoods for Any Short Falls Assures Media Vendors Will Monitor Schedules in the Future
Step 5 – Post-Buy Analysis Case Study Case Study Client purchased radio on “Number of Spots” Basis Affidavits Not Sent, Delivery Never Verified Of All Spots Purchased, Over 40% Ran 12mid-6am Client Paid 3x Higher CPP Than MRPP Average in Market
In Summary Media Is An Important Tool for Marketers Campaign Success is Tied to Establishing Goals, Developing the Right Strategy Research Plays A Critical Role Creativity and Negotiating also Key Post-Buy Analysis Essential Too Expensive to Experiment