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Advertisement media plan

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  • 1. Advertising Budgeting, Media,and Media Planning Aravind LEAD College of Management
  • 2. The Advertising BudgetSetting the Budget Percentage of Sales Payout Plan Competitive Budgeting The Task or Objective Method  What’s the objective?  What type and how much media needed?  Can we afford it? ArbitraryAdministering and Protecting the Budget
  • 3. Media Defined The vehicles that carry the ads to the target market. Which is most important? Picking the correct media or having great creative? What are the types of media?
  • 4. Different Media
  • 5. The Local Media Mix Newspapers Out-of-home Radio Yellow Television Pages/Directories Magazines Direct Media New Media
  • 6. Newspapers as Local Media Using regular sections  Sports, Business, Entertainment, etc. Using special sections  Gardening, Back-to-school, etc. Zoned editions Preprint distribution Weeklies, Shoppers,etc.
  • 7. Newspapers as Local Media Available space for detailed copy Minimal lead times for faster turnaround Geographic targeting selectivity by area and zip code zoning
  • 8. Radio as Local Media Demographic target selectivity by station format Time-of-day selectivity available  Morning and afternoon drive  Midday shopping  Nighttime entertainment
  • 9. Radio as Local Media Specific advertiser applications to build local traffic  Straight advertising  Sponsored promotions  Sponsored events  Remote broadcasts
  • 10. Magazines as Local Media City Magazines  Allow advertisers geographic emphasis in many larger cities Regional Magazines  Allow emphasis in regions of the country Even National Magazines  Special city and geographic zoning available for higher circulation magazines
  • 11. Out-of-home as Local Media Almost exclusively local, Place-based media  Pick your place Directional messaging  Reach the target on the go, going your direction Limited to only short messages  More about simple exposure
  • 12. Directories as Local Media Yellow Pages and other directories  Always on hand  Consulted for product/service options Simple listing or display alternatives  Listing right for some advertisers  Display needed for other advertisers Annual media buy  Take care to get the info right!
  • 13. Direct as Local Media Direct mail to reach customers and neighbors in their home Database Marketing on a local, business specific basis  Proprietary  Purchased
  • 14. New Media Locally Audiotext – sponsored phone messaging used by  retail stores (BB, Planet fashion) In-store advertising and couponing Interactive kiosks and teller machines in stores Social Media
  • 15. Local Media Planning Matching media with markets  Broad and narrow The local market profile  Knowing your market Research on a local level  Primary techniques  Secondary sources
  • 16. Matching Media With Markets Even on a local level  Some media reach a broader audience  Some media reach a narrower audience Especially on a local level  Some advertisers need a broader audience  Some advertisers need a narrower audience
  • 17. Case Study:Same Location – Different Markets DeLuxe Cleaners and Betters’ Better Gourmet  Same strip mall location  Different business models  Different target markets  Different media plans
  • 18. Different Target Markets DeLuxe Cleaners  90% of the business lives in the neighborhood Betters’ Better Gourmet  Neighborhood market for weeknight take- out business  Broader market for weekend and “freezer food” shoppers
  • 19. Different Media Plans DeLuxe Cleaners  Neighborhood weekly newspaper  Neighborhood flyers  Direct mail by zip code and customer database Betters’ Better Gourmet  Daily city newspaper food day and weekend entertainment  Specialty papers arts/entertainment  Customer database mailings
  • 20. The 10-Minute Media Plan DeLuxe Cleaners  Typical of many local businesses  90% of the business generated within a 10-minute radius of the store location Media used should be in the same radius  Store-front signage  Zip code and neighborhood flyers  Partnerships with other neighborhood stores  Local neighborhood newspaper or billboard location where available
  • 21. Local Market Profile Know your market, be the expert  Population/Consumer base  Economic Base  Behavior patterns  Media alternatives
  • 22. Population/Consumer Base Population statistics and trends Demographic characteristics and trends  Age, income, education, etc. Lifestyle variables and trends  Home ownership, neighborhood development, etc.
  • 23. Economic Base Tax basis and trends Retail sales by area and trends Employment statistics and trends Tourism trends (if any)
  • 24. Behavior Patterns Shopping behaviors  Time of day  Day of week  Week of month
  • 25. Market Research:How do you find this stuff? Primary Research  Store or customer research  Media research Secondary Research  Government reports  Industry reports
  • 26. Primary Research Locally Surveys Focus Groups Mall Intercept questionnaires One-on-one Interviews
  • 27. Secondary Research Locally Government Reports  Chamber of Commerce research  Survey of Buying Power  Government Studies  Statistical Abstract
  • 28. Secondary Research Locally Industry Reports  Trade magazines  Trade associations  Specialized reports
  • 29. Organization of the Media Function Media planner Media buyer Media researcher
  • 30. Important Trends in Media Convergence Interactivity Creativity Optimization
  • 31. Key Media Terms Media plan: document that establishes how media will be used to disseminate an advertiser’s message, including objectives and strategy. Media objective: statement in media plan that explains the goals of the plan; usually states how many of the target will be exposed to advertising messages in a given time period, and how often. Media strategy: statement in media plan that outlines how objectives will be accomplished; shows where and when advertising messages will appear, and at what cost.
  • 32. Media PlanningMedia Planning = Selection + SchedulingFactors Influencing Media Planning Decisions Target Market Profile Looking at Brand/Product Dynamics The Creative Execution Budget Considerations and Media Deals The Competitive Situation Availability and Timing Considerations Cost Efficiency (CPM = Cost per thousand (CPM): cost of reaching 1,000 members of target audience with media vehicle(s) or plan.)
  • 33. CPM Formula and Example Cost CPM = X 1,000 AudienceWhich is more cost efficient on a CPM basis? A-- :30 TV Commercial in “Friends” $250,000 CPM = X 1,000 = $12.50 20,000,000 B-- :30 TV Commercial in “Monday Night Football” $300,000 CPM = X 1,000 = $10.00 30,000,000
  • 34. Media Selection Media are evaluated based on selectivity. There are two types of selectivity:  Class Selectivity is the ability of a medium to reach the target market without waste.  Geographic Selectivity is the ability of a medium to cover a particular geographic area without spillover. How would you rate the different major media in terms of class and geographic selectivity?
  • 35. Media Scheduling Reach (% of target audience with opportunity for exposure to media vehicle(s) or media plan in a given time frame) + Frequency (average number of times target is likely to be exposed to the ad in a given time frame) 100%
  • 36. The Difference between Reachand Frequency
  • 37. Media Scheduling (continued) Reach + Frequency + Continuity (how long the campaign runs— continuous vs. flighting vs. pulsation) 100%
  • 38. Reach, Frequency, and Continuity Relationships with a Fixed Budget
  • 39. Media Scheduling (continued) Reach + Frequency + Continuity + Dominance/Impact (the attention-getting ability of the media vehicle(s) selected to run the ad) 100%
  • 40. Evaluating the Media: Key Termsy Rating point: the % of a given population group that uses a specified media vehicle.y Share: Households/persons using television (HUT, PUT): % of homes or people watching TV at a given time.y Gross rating point (GRP): total number of ratings for different media vehicles.y Gross impression: translation of GRPs into people; number of audience exposures x number of times they will see or hear vehicles.y Cost per rating point (CPP): cost of buying one rating point in a given media vehicle or type.y Audience: number or % of homes or persons using a media vehicle.y Coverage: Same as reach – the % of homes or persons receiving broadcast signal within specified area, or receiving specific magazine or newspaper.
  • 41. Evaluating the Media: Key Terms,Continued y Circulation: Total number of copies of a publication sold through various forms of distribution. y Readers per copy: average number of people who read each issue of publication.
  • 42. Types of Media PlansyGeographic y Local, spot, key market y Regional y National y International Selective Combination
  • 43. Sample Flowchart of a Media Plan
  • 44. Evaluating the Media Plany Follow up—getting make-goods, tearsheets.y Measuring the impact: l Test consumer awareness of campaign before, during, and after. l Sales data. l Compare actual reach/frequency figures to proposed estimates.l Syndicated Media Research Services l Nielson, Arbitron, Simmons, Audit Bureau of Circulation

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