Media planning session 1

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Media planning session 1

  1. 1. Media PlanningAn appreciation of Media‟s role in Communication Planning
  2. 2. Lets begin byunderstanding the purchase process…2
  3. 3. The purchase process… B I just purchased A 3I think I need
  4. 4. But this is by no means a one way street… B I just purchased A 4 Will I repurchase/recommend?I think I need
  5. 5. Let usunderstand our purchase process 5
  6. 6. Q1. Are we equallyinvolved in all purchases?
  7. 7. Classifying the purchase involvementCategory Men WomenCell PhonesChewing GumBike/CarJeansCell Phone Service ProviderLipstickT-ShirtSunglassesSoft DrinksCigarettesJewelleryWatchesShoes/Sandals
  8. 8. Let us track the purchaseprocess… High involvement product Low involvement product
  9. 9. The broad framework for Purchase A Conversation RealisationConfirmation Investigation Consumption Acquisition B
  10. 10. But what does Purchasing habits have to do with Media Planning?11
  11. 11. Lots, actually…12
  12. 12. Media plays arole in every part of the purchase cycle
  13. 13. The broad framework for Purchase A Allow for dialogue Drive awareness Conversation Realisation FacilitateReduce Cognitive Dissonance information Confirmation Investigation Increase Consumption Consumption Acquisition Help acquisition B
  14. 14. The Purchase Funnel -McKinsey Spont Consideration Preference Most LikelyAwareness Role of Personal Media Roll of Mass Media
  15. 15. The New McKinsey purchase funnel New Brands BLOGS Brands ConsideredTrigger Awareness Consideration Loyalty Moment of = Purchase − Pasive Active Loyalist Loyalist Unsatisfied Validation
  16. 16. Assignment 1 Identify the steps in the purchase process for :  Life Insurance  General Insurance (Health, Motor)  Buying an entry level car  Switches in the House  Paint to be used in the House  Shampoo (for women only)  Non Cola Soft Drink  Mobile Handset  Mutual Fund  Online/ Offline trading
  17. 17. Submission Format Name Roll No Age Gender Product Category Education of CWE Occupation of CWE Purchase process:  Step 1  Step 2  Step 3..
  18. 18. Coming to therole of Media Planning
  19. 19. Definition 1 The decisions made by advertisers which determine the media to use for an advertising campaign and the most effective use to make of each medium, within the limits of the media budget
  20. 20. Definition 2 The advertising agency function that involves the determination of advertising objectives, advertising strategies, and, advertising tactics relating to the advertising media to be used by specific clients
  21. 21. Definition 3 The series of decisions involved in the delivery of an advertising message to prospective purchasers and / or users of a product or service
  22. 22. The Client – Agency –Consumer conundrum
  23. 23. Consumer Advertiser24
  24. 24. The Advertiser The Manufacturer/ Provider Has something to offer to the consumer which the consumer may/ may not want Is focused on maximising the consumption of his offering at the lowest possible cost and the highest possible yield The Client Doesn‟t usually have consumer expertise – just 69[xb48ASDFG customer expertise Is not the Media expert usually25
  25. 25. The Media The Conduit between the Advertiser and the Consumer Plays multiple roles for the Consumer – Entertainer, Informer and Interface Is neutral to any particular medium Is focused on providing the maximum exposure at the minimum cost26
  26. 26. The Consumer The King! Is a moving target Looks for – “Whats in it for me?” Is not loyal to any brand easily 2
  27. 27. Earlier classifications weresimple Traditional Media New Media TV Internet Print Mobile Radio Malls/ Multiplexes Cinema Social Networking Outdoors 28
  28. 28. The reality  The same media are now trying to fit into multiple shoes:  TV : FPC => Pay per view  Print : Specialised supplements  Radio : Yet to be splintered in this manner  Outdoor : Moving the electronic way29
  29. 29. Media Map High Measurability SMS TV Personal Contact Newspapers Internet Radio MagazinesPersonal Mass Loose Inserts Direct Mailers Events Road Shows Word-of-mouth Low Measurability
  30. 30. The future?
  31. 31. The structure of an ad agency 32
  32. 32. An Outsiders view of an Agency
  33. 33. The Genesis… The first Ad Agency was started as a space broker in a newspaper by V B Palmer who started selling space for his client newspaper on a commission basis
  34. 34. The History Initial Advertising Agencies were traders with little or no knowledge of either Brand, Communication or Creative The focus was on the margins they made while releasing and not on the brand requirements Today Ad Agencies hire thousands of people across the globe and manage Crores of Rupees
  35. 35. Departments within theAgency Creative Services Media Account Planning Planning and Buying Account Management
  36. 36. Role of Account Management  Maps the Communication needs of the Client  Defines clearly the role of the Agency  Engages the resources of the agency to ensure that all the work done is suitable for the Clients business  Ensures smooth functioning within and outside the agency  Communicating the Agency point of view, presenting the agency work and setting timelines and budgets AccountManagement
  37. 37. Role of Account Management  Is ultimately responsible for ensuring that all Agency work is effective, and, all projects are completed on time within budgets AccountManagement
  38. 38. Role of Creative Services  The creators of the product of the Advertising Agency – the advertisements  These products can take many forms,but, collectively they are referred to as “the creative” or “ the work” Copywrite r Art Directo r Rough Creative sCreativeServices
  39. 39. Role of Creative Services  Development of the Creative is done usually in combinations with a member from “Art” and “Copywriting”  Creative teams usually work in pairs and their success/failure is usually together  These teams are supervised by a Creative Director who guides the team and plays a major influencer in their workCreativeServices
  40. 40. Role of Creative Services  Once an idea for the medium (say TV) is ready, a Producer joins the team  The Producer coordinates with all outside resources to produce finished ads  The Producer estimates costs, writes contracts and coordinates the production from start to finish  The Traffic Manager plays a similar role for Print ads  Also the Traffic Manager is responsible for getting the finished material to wherever it is to be deliveredCreativeServices
  41. 41. Role of Media Planning  The final conduit of all communication to the consumers  Media Planners determine how to best expose the creative message to the desired audience  They determine what mix of media would reach the desired number of consumers  The mix that they determine and the specific vehicles that they incorporate form the Media plan MediaPlanning& Buying
  42. 42. Role of Media Buying and Implementation  Media Buyers then take over and buy the desired media as per the quantity and quality specifications at the lowest possible cost  The implementers then execute the plan by booking space/time and ensuring the advertising is carried as per the specifics MediaPlanning& Buying
  43. 43. Research and Account Planning  Research done is to specifically answer certain questions pertaining to the brand:  Do Consumers like the fragrance?  Which packaging is more appealing?...  While Research was not otherwise a domain of the Ad agency, with the Advent of Account Planning it became an integral part of the agencyAccountPlanning
  44. 44. Research and Account Planning  AP takes a more insightful look into consumer attitudes and behaviour  AP‟s weave facts into compelling storiesAccountPlanning
  45. 45. Case: UTI Bank
  46. 46. Spontaneous Awareness 67 55 39 14SBI ICICI HDFC UTI
  47. 47. Preference 46 41 23 8SBI ICICI HDFC UTI
  48. 48. Consideration 36 30 16 5SBI ICICI HDFC UTI
  49. 49. Most Likely 22 16 6 3 SBI ICICI HDFC UTI
  50. 50. The McKinsey Purchase funnel Spont Purchase Preference Consideration Most Likely Awareness Spontaneous Bank ranked Amongst the The most Main bank for recall of Bank among Top 3 Top 2 preferred preferred bank the customer SBI 67 46 36 22 19 ICICI 55 41 30 16 08 HDFC 39 23 16 06 04 UTI 14 08 05 03 02Spontaneous Awareness as provided by Client
  51. 51. Inferences Conversion rate best for SBI – 28% Our conversion rate matches ICICI Hence, need to focus on Spont awareness to grow our share of subscribers
  52. 52. Implications for conversion Spont Purchase Preference Consideration Most Likely Awareness Spontaneous Bank ranked Amongst the The most Main bank for recall of Bank among Top 3 Top 2 preferred preferred bank the customer • Weak • Lack of • Lack of • Competitor‟s • Poor experience branding awareness of interaction & brand equity at point of sale brand benefit involvement • Lack of with the brand • Lack of positive • Dissatisfaction at brand- • Unconvincing W-o-M the „last mile‟ image advertising contact pointSpontaneous Awareness as provided by Client
  53. 53. Implications for media Spont Purchase Preference Consideration Most Likely AwarenessSpontaneous Bank ranked Amongst the The most Main bank forrecall of Bank among Top 3 Top 2 preferred preferred bank the customer Role of mass media Boosting Awareness and Role of personal media Preference by building Differentiation & Relevance Building Consideration and for the brand Most Likely by enabling interaction with the brand Corporate Image advertising (touch & feel) across points of to be the driver contact with the core TGs TV, Print, Outdoor, Radio Internet, SMS, Direct & Non- conventional media to activate inquiries
  54. 54. Therefore, the media task Drive spontaneous awareness to desired levels
  55. 55. Account Planning Tools McCann – Brand Footprint TBWA – Disruption Saatchi – Love Marks Lowe Toolkit/ Brand Key
  56. 56. AgencyWorkflow
  57. 57.  Its not a linear function More collaborative than linear
  58. 58. Marketing/Advertising Department of a Company or a Client Account Management AccountCreative Production Media Planning
  59. 59. Creative Department Creative Director Team 1 Team 2Copywriter Visualiser Copywriter Visualiser
  60. 60. Production Department Studio & Production Head Studio Production Head HeadStudio Artist Studio Artist Production Production 1 2 Assistant 1 Assistant 2
  61. 61. Client Servicing Department AD 1 CSD 1 AD 2 Vice GM/AVPPresident AD 1 CSD 2 AD 2
  62. 62. Media Department Vice President Business Director Media Media Director - Director - Planning Buying
  63. 63. Project Assignment•Client details business objectives to the Client Servicing person•Together define the role for advertising•Client Servicing Person in turn briefs the people from the four departments Strategic Development•Agency team analyses the task in a group•The goal of strategic development is to find a compelling story about the product(referred to as the positioning) and a unique message for the advertising creative (thecreative brief) Media Development•Typically initiated alongside Strategic Development•Details TG , Market Prioritisation, Media Mix, Media weights etc•Media Plan is devised to reach these consumers Creative Development•Creative team develops rough concepts of the ad•After the inputs of the Creative Director, the Account Manager and the AccountPlanners inputs are also taken for fine tuning•Creative Work is then presented to the Client on whose approval the Creatives arefinally converted/produced into actual advertising for release Campaign Debut•Traffic (Client Servicing) and Implementation (Media) coordinate to ensure that the adreached the respective Media houses in time
  64. 64. Evolution ofAdvertising Agencies
  65. 65. Full Service Agencies Can effectively manage advertising Agencies come in various sizes with various strengths Normally global in scale Offer all services under a single roof
  66. 66. Regional Agencies Where Agencies tie up with local agencies which belong to the region and advertise in the region, eg. Mudra for DDB, Rediffusion for DY&R, RK Swamy for BBDO
  67. 67. Boutiques Focus almost exclusively on the Creative function Do not provide Media and Strategic inputs
  68. 68. Media Agencies Specialise in the planning and buying of all types of media Increasingly, these agencies are formed from the combination of media departments of multiple full-service agencies By joining their purchasing power, media agencies are often able to command lower rates from TV networks and magazine publishers and pass the savings on to their clients
  69. 69. Industry Specialty Agencies Concentrate on particular industries with unique set of advertising related issues Pharma and IPO‟s are two such examples
  70. 70. Client AgencyRelationships
  71. 71. Principles of Client AgencyRelationships Agency will not handle a competing brand or a close substitute Client will not give his business to other agencies Client will approve all the expenses before any activity is undertaken which involves a cost for the agency The agency keeps the media commission for itself, and, the Client promises to foot the bill as per the terms and conditions Any Cash discount from media should be passed onto the Client The Agency is not taken to task for Media lapses in terms of scheduling, positioning etc
  72. 72. Different types ofRelationships In-house Agency  Mudra started out as an in-house agency for Reliance  Lintas for HUL Global alignments  Burnett : McDonalds  DDB : Volkswagon, Lipton  Publicis : Garnier  Y&R : Colgate
  73. 73.  Single Client and Agency  VIP : Lowe  Piaggio : RK Swamy  Philips : Mudra Single Client Multiple Agencies  P&G : Leo Burnett, Saatchi  HUL : Lowe, JWT and McCann
  74. 74. AgencyCompensation
  75. 75. Advertising spends Client spends Rs 100 Service Tax – 12.36% deducted Hence actual spends – Rs 87.64
  76. 76. Some terminologies Capitalised billings : The total advertising spend that is handled by the agency Income : The total income/commission generated by the agency Other Income : Income done from other activities (PR, DM etc)
  77. 77. Commission system 15% Commission charged on the Gross spends While the client pays Rs 100, the agency pays the media house only Rs 85 The commission is split between the various businesses (Creative, Media etc)
  78. 78. Retainer System  Works where the business volume is low, or, is so large and the Client requirements in terms of Man Hours is not as muchWhat works very often - a hybrid of the two
  79. 79. Selection of Agency
  80. 80. The procedure Clients think of switching for various reasons:  Need for fresh creative thinking  Drop in servicing standards  Internal politics  Inefficient Media handling  International realignments  Fixed period contracts for PSU‟s
  81. 81. Steps taken Identifying the reason for the change Buy-in from the management Credentials presentation Shortlisting the Agencies in the consideration set Sending out a detailed brief Presentation by agencies Agency selection
  82. 82. Many factors play a role… Agency should be a known one Agencies are known for their Creativity. Their Creative product must be known Agency must have a sound track record and depth of experience How well the Agency comprehends the Clients problems are also important The accounts that are handled by the Agency also plays a big role The Personal Equation of the Client with the agency also matters Agency ability and what they present Other unique considerations
  83. 83. Evaluation sheet A. Agency Shortlist Sl. Design Skill Strategic Total No. Agency Overall Creativity Relevance Process Costs Ratin Tot Rati Weig Tot Rati Weig Tot Rati Weig Tot g Rating Weight al ng ht al ng ht al ng ht al 1 Madison 2 0 4 0 3 0 3 0 0 2 JWT 2 0 4 0 3 0 3 0 0 3 Mudra 2 0 4 0 3 0 3 0 0 4 McCann 2 0 4 0 3 0 3 0 0 5 Lowe 2 0 4 0 3 0 3 0 0 B. Final Selection Sl. Design Proposal Total No. Agency Relevance/ Skill Response Rating Understanding of Brief Method Relevance Time/Speed Team Costs Tot Rati Weig Tot Rati Weig Tot Rati Weig Tot Ratin Weig Tot Rati Weig Tot Rating Weight al ng ht al ng ht al ng ht al g ht al ng ht al 1 3 0 5 0 2 0 2 0 4 0 4 0 0 2 3 0 5 0 2 0 2 0 4 0 4 0 0 3 3 0 5 0 2 0 2 0 4 0 4 0 0 Maximum Weightage: 5 Maximum Rating: 20
  84. 84. Evolution of Agencies From in-house to independent agencies Fragmentation of functions – media disassociated itself from the rest of the business Further fragmentation – Media splits by type of media Re-emergence of the Full Service Agency
  85. 85. The Advertising Pie in India
  86. 86. The Indian Advertising Industry Rs Cr 27650 23646 20717 18670 17690 14505 11915 10354 9328 8522 7710 6824 5690 4727 3909 2514 30501721 20941993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
  87. 87. The Indian Advertising Industry % Spends 1 1 2 2 3 3 7 7 7 6 6 6 2 3 3 4 4 4 Internet48 48 47 42 40 41 Outdoor Cinema Radio Press41 40 40 45 46 46 TV 2006 2007 2008 2009 2010 2011
  88. 88. TV growing at a healthy pace14000 140 12636 12412000 120 119 117 120 120 115 10530 10610000 102 100 8319 8492 8000 7110 80 6000 6000 60 5003 4104 4350 4000 40 2000 20 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 Rs Cr Index
  89. 89. Key sectors and AdvertisersTV Rs L TV Rs LToilet Soaps 73834 Hindustan Lever Ltd 158626Social Advertisements 58604 Procter & Gamble 36208Shampoos 46779 Reckitt Benckiser (india) Lt 36022Cellular Phone Service 44073 Cadburys India Ltd 26954Auto-cars/jeeps 36025 Colgate Palmolive India Ltd 23798Tooth Pastes 35562 Smithkline Beecham 23362Washing Powders/liquids 31591 Ponds India 23094Cellular Phones 31162 Itc Ltd 22701Fairness Creams 29036 L Oreal India Pvt Ltd 21599Milk Beverages 28656 Johnson & Johnson Ltd 19332
  90. 90. Key issues and trends for each sector : Trends  Issues Advertising revenue growth propels the  Completely addressable digitization still Television Industry a distant dream for stakeholders DTH leads growth in distribution segment  High cost of content production Regional channels are increasing their share in TV advertising  Low ARPU‟s to increase payback time Broadcasters are rebranding themselves  Need to improve measurement tools for to establish greater connect with younger measuring viewership audiences Regional players are increasingly focusing on the kids channel market Sports channels boosted by IPL and other cricketing events, are clocking good advertising revenues HD feed gaining ground
  91. 91. Print - emerging from the shadow of 200912000 11291 140 128 123 121 9825 9992 12010000 115 115 116 113 8470 7806 100 8000 7000 79 80 6000 5700 4961 60 4303 4000 40 2000 20 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 Rs Cr Index
  92. 92. Key sectors and AdvertisersPrint Rs L Print Rs LProperties/real Estates 93272 Tata Motors Ltd 17613Social Advertisements 92259 Pantaloons Retail India Ltd 14374Educ-educational Institutions 90155 Naaptol.com 11713Independent Retailers 71307 Maruti Udyog Ltd 9453Auto-cars/jeeps 62625 Lg Electronics India Ltd 8856Events 36582 Sbi (state Bank Of India) 8511Corporate/brand Image 36514 General Motors India Ltd 8207Audited/unaudited Financial R 35251 Samsung India Electronics Lt 7197Cellular Phones 24467 Dell Computer Corporation 6817Hospital/clinics 22953 Sony India Ltd 6751
  93. 93. Key issues and trends for each sector : Trends  Issues Hindi dailies grab the top three spots  Fluctuating newsprint costs and continue to strengthen their position  Ad-edit ratios up on account of There is a growing trend of hyper profitability pressures localization in the print media  Subscription schemes increasing Industry players are unbundling dependence on advertising revenues products to increase profitability  New media yet to pose a threat to print New entrants are expanding readership industry in respective markets Niche and business magazines show robust growth
  94. 94. Radio - awaiting the second wave1200 180 168 1018 1601000 143 885 140 138 133 130800 120 120 115 662 681 103 100600 480 80400 60 285 200 40200 125 150 20 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 Rs Cr Index
  95. 95. Key sectors and AdvertisersRadio Rs L Radio Rs LCellular Phone Service 10112 Bharti Airtel Ltd 2525Properties/real Estates 8704 Vodafone Essar Ltd 2344Independent Retailers 7803 Tata Teleservices 1991Social Advertisements 7738 Ministry Of Health & Fly Wel 1842Cellular Phones 3956 Pantaloons Retail India Ltd 1808Events 3751 Research In Motion Limited 1490Auto-cars/jeeps 3462 Bennett Coleman & Co Ltd 1383Jewellery 3446 Johnson & Johnson Ltd 1349Educ-educational Institutions 3235 Nokia Corporation 1291Insurance-life 2636 Life Insurance Corp Of India 1173
  96. 96. Key issues and trends for each sector : 2010 Trends  Issues Telecom players and handset  Lack of measurement and research manufacturers are increasing their spend on radio  E-auction methodology for Phase III auction Improvement in margins is expected with favourable legislation  Differentiation of content and channel offerings Innovation will drive the industry as the competition is set to increase  Royalty payment between music companies and radio industry Increasing FM-enabled mobile phones are driving radio growth in India
  97. 97. Internet - the fastest growing1000 180 917900 160 157 150 152 150800 145 140 140 135700 680 125 120600 100500 453 80400 363 60300 250200 165 40 110100 50 70 20 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 Rs Cr Index
  98. 98. Key issues and trends for each sector : 2010 Trends  Issues Cricket craze led to multifold growth in web  Indian wariness of online shopping traffic  Need for effective means to monetize Social media is showing promising signs content for online advertising 3G has arrived, but is yet to make an  Lack of trust in online medium and impact in mobile advertising and the effective measurement tools internet market Internet users in rural India have grown Travel sites push e-commerce growth on the fast track online ad-sales have been outsourcing to specialised agencies
  99. 99. OOH - depending on innovation1800 140 16581600 128 127 1441 120 115 1419 1151400 110 109 111 1275 1001200 1135 10001000 80 80 870 800800 727 60600 40400 20200 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 Rs Cr Index
  100. 100. Cinema - improving environment140 200 190 129 130 118 180120 172 104.5 103 160100 139 140 121 124 120 80 115 110 100 60 55 80 80 40 60 32 23 40 19 20 20 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 Rs Cr Index
  101. 101. Key issues and trends for each sector : 2010 Trends  Issues Telecom, BFSI, E&M and FMCG were  Measurement mechanism among the top advertisers for 2010  Highly unorganised industry Focus is shifting from the number of screens to the quality and quantity of audience  Lack of quality properties Digital OOH is the next growth medium for the industry OOH players are offering innovative and customised solutions to advertisers for specific target audiences OOH players are focusing on ROI rather than on increasing the number of properties
  102. 102. Understandingbasic research terms
  103. 103. 1.SEC(Socio Economic Classification) Understanding Basic Research Terms
  104. 104. Education of Chief Wage Earner / Main Income Earner (MIE) Lit. no Some Grad./ Grad./ sch/school College Post- Post-Grad.OCCUPATION Illiterate Sch 5-9 yrs SSC/HSC upto 4 but not Grad. Profession years Grad. General alUnskilled Workers E2 E2 E1 D D D DSkilled Workers E2 E1 D C C B2 B2Petty Traders E2 D D C C B2 B2Shop Owners D D C B2 B1 A2 A2Businessmen/ Industrialists with noof employees: None D C B2 B1 A2 A2 A11-9 C B2 B2 B1 A2 A1 A110 + B1 B1 A2 A2 A1 A1 A1Self employed Professional D D D B2 B1 A2 A1Clerical / Salesman D D D C B2 B1 B1Supervisory level D D C C B2 B1 A2Officers/ Executives Junior C C C B2 B1 A2 A2Officers/Executives Middle/ Senior B1 B1 B1 B1 A2 A1 A1

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