Media planning analysis

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Media planning analysis

  1. 1. Media Planning and Analysis Chapter Fourteen
  2. 2. Chapter Fourteen Objectives <ul><li>Describe the major factors used in segmenting target audiences for media strategy purposes </li></ul><ul><li>Explain the meaning of reach, frequency, gross rating points, target rating points, effective rating points, and other media concepts </li></ul><ul><li>Discuss the logic of the three-exposure hypothesis and its role in media and vehicle selection </li></ul>
  3. 3. Chapter Fourteen Objectives <ul><li>Describe the use of the efficiency-index procedure for media selection </li></ul><ul><li>Distinguish the differences among three forms of advertising allocation: continuous, pulsed, and flighted schedules </li></ul><ul><li>Explain the principle of recency, or shelf-space model, and implications for allocating advertising expenditures over time </li></ul>
  4. 4. Chapter Fourteen Objectives <ul><li>Perform cost-per-thousand calculations </li></ul><ul><li>Interpret the output from a computerized media model </li></ul>
  5. 5. Saab 9-5 <ul><li>In the late 1990s, Saab introduced a new luxury sedan: the Saab 9-5 </li></ul><ul><li>Saab had done little to expand its brand image in U.S. </li></ul><ul><li>Historically it attracted younger customers, but needed the luxury sedan to appeal to families and older customers </li></ul>
  6. 6. Saab 9-5 <ul><li>A mass-market advertising campaign was undertaken with the following objectives: </li></ul><ul><li>Generate excitement for new 9-5 model line </li></ul><ul><li>Increase overall awareness for Saab name </li></ul><ul><li>Encourage customers to visit dealers and test-drive </li></ul><ul><li>Retail 11,000 units of 9-5 during introductory year </li></ul>
  7. 7. Saab 9-5 <ul><li>Television commercials were run on network TV and cable in May </li></ul><ul><li>A newspaper campaign began earlier in March with ads in USA Today and Wall Street Journal </li></ul><ul><li>Ads also ran yearlong in several automobile magazines </li></ul><ul><li>Internet banner ads were also run throughout the year </li></ul>
  8. 8. Saab 9-5 Media Plan <ul><li>Tactical Plan </li></ul>
  9. 9. Saab 9-5 Magazine Ad <ul><li>Magazine ad </li></ul>
  10. 10. Saab 9-5 Dealer Kit <ul><li>Dealer Information Kit </li></ul>
  11. 11. Saab 9-5 Direct Mail uestionnaire <ul><li>Direct mail questionnaire </li></ul>
  12. 12. Saab 9-5 Direct Mail Response to Questionnaire <ul><li>Response to direct mail questionnaire </li></ul>
  13. 13. Saab 9-5 Dealer Leads <ul><li>Dealer lead information card </li></ul>
  14. 14. Saab 9-5 Dealer Sales Literature <ul><li>Dealer consumer sales literature </li></ul>
  15. 15. Saab 9-5 Consumer Test Drive Contest <ul><li>Test-drive invitation and contest </li></ul>
  16. 16. Saab 9-5 Consumer Test Drive Contest <ul><li>Contest entry card </li></ul>
  17. 17. 1-800-COLLECT Media Strategy <ul><li>1-800-Collect media strategy guide </li></ul>
  18. 18. Media Overview <ul><li>Advertisers are placing more emphasis than ever on media planning </li></ul><ul><li>Choosing media & vehicles is the most complicated of all marketing communications decisions </li></ul><ul><li>Aside from specific vehicles in media, the planner has to choose geographical locations and budget distribution over time </li></ul>
  19. 19. The Media-Planning Process <ul><li>Media planning </li></ul><ul><li>Involves the process of designing a </li></ul><ul><li>scheduling plan that shows how </li></ul><ul><li>advertising time and space will </li></ul><ul><li>contribute to the achievement of </li></ul><ul><li>marketing objectives </li></ul>
  20. 20. Overview for the Media Planning Process Advertising Strategy <ul><li>Media Strategy </li></ul><ul><li>Audience Selection </li></ul><ul><li>Objective Specification </li></ul><ul><li>Media and Vehicle </li></ul><ul><li>Media Buying </li></ul>Marketing Strategy Advertising Objectives Advertising Budget Message Strategy Media Strategy
  21. 21. The Media-Planning Process <ul><li>As shown in the figure, media planning involves coordination the coordination of three levels of strategy formulations: </li></ul><ul><li>Marketing Strategy </li></ul><ul><li>Advertising Strategy </li></ul><ul><li>Media Strategy </li></ul>
  22. 22. The Media-Planning Process <ul><li>Marketing Strategy: </li></ul><ul><li>Provides impetus and direction for choice of both advertising and media strategies </li></ul><ul><li>Advertising Strategy: </li></ul><ul><li>Involves advertising budgets, objectives and message and media strategies </li></ul><ul><li>– extends from overall marketing strategy </li></ul>
  23. 23. The Media-Planning Process 4. Buying media 1. Selecting the target audience 2. Specifying media objectives 3. Selecting media categories and vehicles
  24. 24. Selecting the Target Audience <ul><li>Four major factors </li></ul>(1) Buyographics (4) Lifestyle/psychographics (2) Geographic (3) Demographic
  25. 25. Specifying Media Objectives <ul><li>What proportion of the population should be reached with advertising message during specified period (reach) </li></ul><ul><li>How frequently should audience be exposed to message during this period (frequency) </li></ul><ul><li>How much total advertising is needed to accomplish reach and frequency objectives (weight) </li></ul>
  26. 26. Specifying Media Objectives <ul><li>How should the advertising budget be allocated over time (continuity) </li></ul><ul><li>How close to the time of purchase should the target audience be exposed to the advertising message (recency) </li></ul><ul><li>What is the most economically justifiable way to accomplish objectives (cost) </li></ul>
  27. 27. Reach <ul><li>Percentage of target audience that is </li></ul><ul><li>exposed to an advertisement, at least </li></ul><ul><li>once, during a certain time frame </li></ul><ul><li>(usually four weeks) </li></ul>
  28. 28. Reach <ul><li>Reach represents the percentage of target customers who have an opportunity to see the advertisers message. </li></ul><ul><li>Other terms used by Media Planners to describe reach: </li></ul><ul><li>1+ (read “one-plus”) </li></ul><ul><li>net coverage </li></ul><ul><li>unduplicated audience </li></ul><ul><li>cumulative audience ( or “cume”) </li></ul>
  29. 29. Factors Determining the Reach <ul><li>More people are reached when a media schedule uses multiple media </li></ul><ul><li>The number and diversity of media vehicles used </li></ul><ul><li>By diversifying the day parts </li></ul>
  30. 30. Frequency <ul><li>Average number of times </li></ul><ul><li>an advertisement reaches </li></ul><ul><li>the target audience in a </li></ul><ul><li>four-week period </li></ul>
  31. 31. Market Factors/Frequency Levels <ul><li>Brand History New High </li></ul><ul><li>Brand Share High Low </li></ul><ul><li>Brand Loyalty High Low </li></ul><ul><li>Purchase Cycle Short High </li></ul><ul><li>Usage Cycle Short High </li></ul><ul><li>Share of Voice High High </li></ul>Market Factor Type Frequency
  32. 32. Message Creative Factors/Frequency Levels <ul><li>Message Complexity Simple Low </li></ul><ul><li>Message Uniqueness Unique Low </li></ul><ul><li>Newness New High </li></ul><ul><li>Image Factors Image High </li></ul><ul><li>Message variation Little Low </li></ul>Message/Creative Factor Type Frequency
  33. 33. Media Factors/Frequency Levels <ul><li>Clutter high High </li></ul><ul><li>Editorial Nature Consistent Low </li></ul><ul><li>Attentiveness High Low </li></ul><ul><li>Scheduling Continuous Low </li></ul><ul><li>Number of Media a Lot Low </li></ul>Media Factor Type Frequency
  34. 34. Weight <ul><li>How much advertising volume is required to accomplish advertising objectives </li></ul><ul><li>Three weight metrics: </li></ul><ul><li>Gross ratings </li></ul><ul><li>Target ratings </li></ul><ul><li>Effective ratings </li></ul>
  35. 35. Weight <ul><li>Gross rating points, or GRPs, are </li></ul><ul><li>an indicator of the amount of gross </li></ul><ul><li>weight that a particular advertising </li></ul><ul><li>schedule is capable of delivering </li></ul><ul><li>GRPs=Reach(R) X Frequency(F) </li></ul>
  36. 36. Determining GRPs in Practice <ul><li>GRPs are the sum of all vehicle ratings in a media schedule </li></ul><ul><li>Rating: proportion of the target audience presumed to be exposed to a single occurrence of an advertising vehicle in which the advertiser’s brand is advertised </li></ul>
  37. 37. Determining GRPs in Practice <ul><li>100 GRPs could mean: </li></ul><ul><li>100 % exposed once </li></ul><ul><li> 50 % exposed twice </li></ul><ul><li>25% exposed four times </li></ul><ul><li>etc. </li></ul>
  38. 38. Weight <ul><li>Target Rating Points (TRPs) </li></ul><ul><li>Adjust a vehicle’s rating to reflect just those individuals who match the advertiser’s target audience </li></ul>
  39. 39. Weight <ul><li>Effective Rating Points (ERPs) </li></ul><ul><li>Effective reach </li></ul><ul><li>Effective frequency </li></ul>
  40. 40. The Concept of ERPs <ul><li>How often the target audience have an opportunity to be exposed? </li></ul><ul><li>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 </li></ul>
  41. 41. How Many Exposures are Needed? <ul><li>Three-Exposure Hypothesis </li></ul><ul><li>The minimum number of exposures </li></ul><ul><li>needed for advertising to be effective </li></ul><ul><li>is three </li></ul>
  42. 42. How Many Exposures are Needed? <ul><li>The Efficiency-Index Procedure </li></ul><ul><li>Media schedule that generates the </li></ul><ul><li>most exposure value per GRP </li></ul>
  43. 43. Efficiency Index Procedure Exposure Value Exposure Distribution Total Exposure Value Index of Exposure Efficiency
  44. 44. Effective Reach in Advertising Practice <ul><li>3-10 exposures during a media-planning period (typically 4 weeks) </li></ul><ul><li>Using multiple media </li></ul><ul><li>Subjective factors must be considered </li></ul>
  45. 45. Continuity <ul><li>How advertising is allocated during </li></ul><ul><li>the course of an advertising </li></ul><ul><li>campaign : how should the media </li></ul><ul><li>budget be distributed? </li></ul>
  46. 46. Continuity <ul><li>Continuous schedule </li></ul><ul><li>Pulsing </li></ul><ul><li>Flighting </li></ul>
  47. 47. Continuous, Pulsing, and Flighting Schedules 0 200 400 600 J F M A M J J A S O N D Continuous Pulsing Flighting Advertising Schedules Ad $ (in thousands) (months)
  48. 48. Recency Planning <ul><li>Consumers’ first exposure to an advertisement is the most powerful </li></ul><ul><li>Advertising primary role is to influence brand choice </li></ul><ul><li>(2) Achieving a high level of weekly reach for a brand should be emphasized over acquiring heavy frequency </li></ul>
  49. 49. Optimizing Weekly Reach <ul><li>Advertising teaches consumers </li></ul><ul><li>Influence brand selection </li></ul><ul><li>Messages are most effective when close to </li></ul><ul><li>purchase time </li></ul><ul><li>Cost-Effectiveness of first exposure is greater </li></ul><ul><li>than subsequent </li></ul><ul><li>Allocate budget to reach consumers often </li></ul><ul><li>Reach target audience continuously rather than sporadically </li></ul>
  50. 50. Toward Reconciliation <ul><li>Illustration of </li></ul><ul><li>advertising’s </li></ul><ul><li>“ Chance Encounter” </li></ul><ul><li>and the value of </li></ul><ul><li>achieving reach </li></ul>
  51. 51. Cost Considerations <ul><li>The cost of reaching 1,000 members of </li></ul><ul><li>the target audience, excluding those </li></ul><ul><li>people who fall outside the target market </li></ul>
  52. 52. 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)
  53. 53. Cost Considerations <ul><li>Measures of cost efficiency, not of effectiveness </li></ul><ul><li>Lack of comparability across media </li></ul><ul><li>Misused unless vehicles within a particular medium are compared on the same basis </li></ul>
  54. 54. Tradeoffs <ul><li>Tradeoff must be made because media planners operate under the constraint of fixed advertising budget </li></ul>
  55. 55. Media Planning Software <ul><li>ADplus </li></ul><ul><li>1. User develops a media database </li></ul><ul><li>2. User selects criterion for schedule optimization </li></ul><ul><li>3. User specifies constraints </li></ul><ul><li>4. ADplus seeks out the optimum media schedule </li></ul>
  56. 56. Diet Dr. Pepper Campaign <ul><li>Market Situation </li></ul><ul><li>Sluggish category growth </li></ul><ul><li>Growth of new-age beverages </li></ul><ul><li>Price sensitive </li></ul><ul><li>Lack of bottler attention and focus </li></ul><ul><li>Inadequate distribution </li></ul><ul><li>Greater spending by major competitors </li></ul>
  57. 57. Media Strategy <ul><li>Media plan for </li></ul><ul><li>Diet Dr. Pepper </li></ul>
  58. 58. Media Plan for Diet Dr. Pepper <ul><li>Media plan for </li></ul><ul><li>Diet Dr. Pepper </li></ul><ul><li>(page 2) </li></ul>
  59. 59. Campaign Target and Objectives <ul><li>Increase sales by 4% and improve growth rate to 1.5 times the diet soda category </li></ul><ul><li>Heighten consumer knowledge </li></ul><ul><li>Differentiate product </li></ul>
  60. 60. Results <ul><li>Sales grew by 6.6% </li></ul><ul><li>Consumer brand ratings of Diet Dr. Pepper surpassed Diet Coke and Diet Pepsi in several key areas </li></ul>

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