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Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
Education Guideline Book (1st Edition) Sep 2006
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Education Guideline Book (1st Edition) Sep 2006

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  • 1. An Educational Guideline on the Advertising Media industry 1st Edition © Media Federation of Australia 2006.
  • 2. Background The majority of people are very familiar with the creative aspect of the Advertising industry, yet not many are familiar with the Advertising Media industry and its role in the advertising process. Consider the value of a brilliant creative execution without it being seen/read or heard by the right people in the right environment at the right time. It is primarily these functions that an Advertising Media Agency is responsible for. The Media Federation of Australia (MFA), is the industry body representing the interests of its members - Advertising Media Agencies. It is our charter to help increase awareness and understanding of the industry as well providing better educational opportunities for teachers and students, hence this practical guideline has been developed with the intention of offering a basic understanding of the industry, its function and processes. Understanding how the media process works is not only critical to those wishing to work in the industry but it is also vital that people in the field of advertising and marketing are familiar with how the industry works as it has a clear influence on all these functions. When you consider that $10.4 billion was spent on media placement over a 12 month period in Australia according to the most recent report published by Commercial Economic Advisory Service Australia (CEASA) and with around 80% of a marketers budget being allocated to media, knowledge on how the industry operates is essential. It is our desire that after reading this guideline the reader will be better informed about the Advertising Media industry and will see that the industry has many challenging and diverse career opportunities to offer. As you progress through this guideline it will become evident that there are specific terms used throughout. Media does use unique terminology that may not be familiar to the reader, hence we have included in the Appendix a glossary of the most commonly used terms used. A more comprehensive listing can be found on the MFA website at www.mediafederation.org.au 2
  • 3. Background About the Media Federation of Australia (MFA) The MFA is a non-for-profit organisation formed in 1997 with an objective of supporting those Agencies that specialise in providing services such as media research, strategic planning, media negotiation and placement. Today the MFA has 17 members that collectively represent approximately 70% of all media billings placed by Media Agencies in Australia. These members include: • Bellamy Hayden • Carat Australia • DaVinci Selectwork • Gap Research • George Patterson Partners • Ikon • Initiative • MediaCom • Mediaedge:cia • Mindshare • OMD • ZenithOptimedia • Paul McCarthy Advertising • Starcom Worldwide • Total Advertising and Communications • Universal McCann • White Agency 3
  • 4. Acknowledgements The MFA would like to acknowledge the support of its various Committee members who helped to contribute to this guideline. In addition there has been valuable input and clarification provided by the following organisations and we thank them for their contribution. Commercial Economic Advisory Service of Australia Commercial Radio Australia Free TV Magazine Publishers of Australia Nielsen Media Research Nielsen//NetRatings Outdoor Marketing Association Oztam Val Morgan 4
  • 5. Contents Chapter One ADVERTISING MEDIA - An Overview Chapter Two ROLES AND RESPONSIBILITIES Chapter Three THE PROCESS Chapter Four MEDIA RESEARCH Chapter Five THE MEDIA Chapter Six MARKETPLACE OVERVIEW Appendix TERMINOLOGY INDUSTRY REFERENCES MFA TRAINEE PROGRAM 5
  • 6. Chapter One Advertising Media An Overview 6
  • 7. AN OVERVIEW . HOW THE INDUSTRY BEGAN Some years ago, an Advertising Agency was essentially a one stop shop that provided all the services for developing campaigns, creative concepts and executions including the development of a media plan that would map out where the campaign would run and how much it would cost. It was not uncommon during these times for the creative teams to recommend an idea that required the use of a specific media to showcase the creative concept. With the market demanding greater sophistication in the process to ensure that the message was seen by the right people in the right environment it quickly became evident that the industry needed a unique set of skills and resources to deliver these needs. The demand for higher quality intelligence to effectively identify and target the right audience was rapidly taking the lead as a critical starting point for any campaign development. With the rising costs of advertising on all media platforms and the increasing investment by marketers, a smarter way to maximise investment and minimise costs became a critical business need for marketers to address. Greater negotiation strength and greater efficiency in buying also become an extremely important consideration for marketers. Consequently the small media departments departed from the hundreds of different creative agencies to form large independent Advertising Media agencies. The era of Advertising Media Agency specialists that could offer these core business requirements to marketers emerged. WHY MEDIA AGENCIES ARE APPOINTED An advertiser generally requires the support of specialists to develop an advertising campaign aimed to deliver their objectives. In most instances this will mean that they appoint an Advertising Agency to assist with the development of creative concepts and executions and a Media Agency to identify who they should target, how best to reach them and importantly to maximise their investment through negotiations and effective media buying. In many instances, a large organisation may recruit several creative agencies to work on various brands/products or services within their total portfolio, whereas they more commonly appoint only one media agency to work with all their brands. There are some Media Agencies that specialise purely in a specific area and therefore a client may appoint two Media Agencies, one to provide planning services and another to manage the buying process. In the following example, the Marketer will use several different creative agencies yet only one Media Agency, Eg. Brand ‘A’ - Creative Agency ‘X’ - Media Agency ‘M’ Brand ‘B’ - Creative Agency ‘Y’ - Media Agency ‘M’ Brand ‘C’ - Creative Agency ‘Z’ - Media Agency ‘M’ In nearly all cases, regardless of the number of Media Agencies appointed to provide the planning services, a marketer will tend to consolidate all of their buying into the one agency giving them a larger volume of money to help leverage the negotiation clout of the marketers total spend. Given the significant investment on media placement, marketers are now realising that in order to maximise their return on investment, they must possess a solid understanding of the industry. Interestingly, many now appoint their own Media Controller who is responsible for working alongside the Media Agency overseeing the operation and monitoring the performance of the agency and their total brand portfolio. 7
  • 8. AN OVERVIEW . HOW MEDIA AGENCIES ARE APPOINTED The most common method for recruiting a Media Agency is through a review process which the advertiser/marketer conducts. They may elect to review the credentials of several agencies, which usually includes information such as the agency philosophy, their client listing, media billings, agency and staff experience within the same category as the briefed client and any unique research tools and systems that will benefit the client. The advertiser may develop a short list of agencies and provide them with a specific brief based on a mock campaign. The agency will respond to this and may also include at this stage more specific details such as how they would propose to manage the account, what resources and structure they would put in place and what their revenue fee proposal would be. The successful agency will generally be appointed for a term of 3 years. Not all media contracts are put out in the market for pitch as some marketers are satisfied with the relationship and performance of their existing Media Agency and may well move to renew their contract without putting it up for competitive pitch. There may also be a situation where the incumbent agency and marketer implement a due diligence process to ensure that all the key performance expectations of their contract are been met and that the marketers expectations in the coming years will continue to be met by the Agency. Providing the outcome is satisfactory to the marketer, then the incumbent will retain the contract without it being put up for competitive pitch. HOW AN AGENCY IS REMUNERATED There is no standard agreement for remuneration as each agency and client situation is different. The level of remuneration that a Media Agency receives will largely depend on the service needs of the client as they may choose to only use a portion of the agencies services (ie planning only). The agreements may also determine that the remuneration is linked to very specific key performance expectations. Some of remuneration options may include:- • Percentage Fee. An agreed percentage fee is applied against the total media billings, therefore any work undertaken by the agency that does not get to booking stage or for any given reason is cancelled, means that the Agency is not remunerated for the work done. • Flat Fee: A flat fee arrangement is generally a single agreed figure that is paid to the Media Agency in monthly instalments. The fee can be based on an estimated level of resources and associated costs. • Head Hours: A Head Hour arrangement is commonly based on an agreed cost per hour for each core function. The cost structure could include a different hourly rate for functions such as strategic development, media research, implementation planning, media buying, administration, client servicing etc. • Performance Incentives: A performance incentive is often applied in addition to one of the above arrangements. This ensures the agency meets a predetermined set of objectives such as negotiation results, buying performance, campaign effectiveness, YOY performance improvements, productivity, client satisfaction reviews etc. 8
  • 9. Chapter Two Roles and Responsibilities 9
  • 10. ROLES AND RESPONSIBILITIES FUNCTIONS OF A MEDIA AGENCY In essence, the main function of a Media Agency is to ensure the advertisers message is being seen, read, or heard by the appropriate people, in the most relevant environment, with an appropriate level of exposure at a competitive cost. Given the significance of this role, the Media Agency can play a vital role in shaping the creative brief through influencing who to target and what communication methods to use. In order to deliver on these expectations a Media Agency must demonstrate innovation in their ideas to offer their clients a competitive advantage in the marketplace; efficiency in ensuring that they undertake extensive investigations into the research of a consumer and their media habits and importantly to offer accountability by ensuring that their clients investment is maximised through solid negotiations. In the majority of cases, a Media Agency is appointed to provide all media services, however there are instances where a Media Agency is only recruited to provide some of their services. An example might be where an Advertiser may employ one Media Agency to undertake all their strategic planning needs whilst appointing another Media Agency to conduct all their media negotiations and media buying. The basic range of services provided generally include the following, but are not limited to: Client Servicing Ensuring all the client’s media needs are met Research Identifying consumer and media insights Strategic Planning Identifying a strategy for the communication plan including what media channels to use/ who to target Implementation Planning Identifying how best to use the selected media channels Rate negotiations Establishing competitive rates Media Buying Booking the media activity Monitoring Ensuring activity is tracked and evaluated Financial Invoicing of all media activity 10
  • 11. ROLES AND RESPONSIBILITIES FUNCTIONS OF A MEDIA AGENCY Aside from creative and media agencies, an advertiser/client may appoint many individual organisations to provide them with the full range of marketing services they require such as Event organisers, PR companies, Online companies etc. These individual appointments are largely based on the advertisers evaluation of who can offer them the expertise they are seeking. There are however, many agencies that are now looking to offer a total package of communication planning services which in many cases can encompass some,or all of these services. Below is a demonstration of a conventional plan of organisations that are recruited by the marketer to provide the required level of service to meet their needs. Media Agency Creative Agency PR Advertiser Sales Promotion Online Events 11
  • 12. ROLES AND RESPONSIBILITIES RESOURCES Whilst job titles and group structures can vary from agency to agency, the following chart is a generic format that many of the larger Media Agencies adopt. Depending on the size of the agency there may be several different groups which are headed up by a Group Manager and these different units are responsible for managing a client or group of clients. There can also be further breakdowns of these roles to offer specialised knowledge, such as Online planners and buyers that are dedicated to this area. With the buying function, there may be several buyers within a group, some may be responsible for one specific media only (I.e. television) or some may be responsible for only a certain number of products within the client portfolio. Strategic Directors may also be aligned with certain demographic groups to enhance their knowledge of certain markets sectors. Another new trend emerging over recent years is a Trading Director who is assigned to manage all major negotiations across all of the agency’s clients. Managing Director or CEO Group Manager Strategic Investment or Planner Research Buying Manager Manager / Analysis Planner Buyer Media Assistant 12
  • 13. ROLES AND RESPONSIBILITIES JOB RESPONSIBILITIES A summary of the key functions. Managing Director/CEO Manage and direct the organisation to achieve optimum profitability and effective use of business assets and human resources. Organise and control major functions relating to the operation and administration of the organisation through subordinate executives. Group Manager Responsible for a group of clients within the media department and for the representative function. Leads the strategic and investment process across key client business and major projects, by managing client business on a daily basis, being accountable for group’s output, being responsible for total management of the group’s accounts and managing staff and time within the group. Strategic planner Creates strategic media concepts, such as who to target, how to reach them, what media selection to use etc and then develops plans to most effectively meet the marketing objectives and needs of the client brief Research Analyst Assists with provision of data and knowledge collateral for the promotion of insight-driven research. Investment Manager To ensure optimum results in terms of rate negotiations and buying results of all the media investments placed by the Agencies buying unit Buyer Manages all client investments through the negotiation process and implementation of all media buying. Media Assistant Provides general administrative support to all or some of the above functions 13
  • 14. Chapter Three The Process 14
  • 15. THE PROCESS AN OVERVIEW Architects and Builders. You would not proceed with building an office tower until you consulted an architect to develop a plan and contracted a buyer to construct the building, well Advertising Media is not that dissimilar. Consider the task of building this office tower, firstly the architect would need to ensure they had sufficient knowledge about the environment, the needs of the building and its main purpose and benefits to tenants, and to identity any potential barriers. Then in considering this information they would proceed with drafting a plan that would be considerate of the ideal shape and structure, materials required and estimated costs. These plans would then be submitted for approval to ensure it met all the requirements. If the plans met approval, then the builder would be briefed on the job with all the required details of what they needed to build. Along the way, the builder would be trying to meet the deadlines for construction, ensure the project met the expectations of the plan and manage costs without compromising the quality. Unlike builders where costs can tend to continually escalate during the construction, a media buyer must maintain tight control of the budget and not exceed this figure. A plan for managing the process is helpful to ensure that all information is considered and thoughts are investigated with focus always remaining on what needs to be achieved. It is not uncommon for an Agency to develop their own unique approach to the process for evaluating a brief and developing a communication solution but as a generic formula, the following process includes the most common steps taken by many agencies. Client Briefing: The advertiser/client provides a brief that contains vital information, knowledge and expectations for their brand/product/service Strategic Planning: The process for evaluating the key target, most appropriate mix of media platforms and potential campaign costs Implementation Planning: Identifies the most efficient and effective way of using each media to leverage the opportunities Media Buying and Negotiating: To book activity with the media and negotiate a competitive rate Post Monitoring: Evaluating the performance of campaign against expectations Invoicing: Generating financial invoices for all booked media activity 15
  • 16. THE PROCESS BRIEFING The quality of the output is very much influenced by the quality of information supplied. An Advertising Media Agency will require a significant amount of information to assist in understanding more about the product/brand/service and the reasons for advertising. To ensure that the Media Agency can meet the expectations of the advertiser, they must have a clear understanding of why they want to advertise and what they expect to achieve as a result of this. In an ideal scenario, the advertiser will invest sufficient time to prepare a file of information that the agency will require to conduct their role effectively. The process of briefing can however be compromised if an advertiser is faced with a challenge that needs to be addressed immediately. In such a situation the timing does not allow for any strategic planning and there is a direct need to be seen/heard/read as soon as possible. The process of effective briefing would usually involve the client physically presenting their brief to the Media Agency and to the Creative Agency along with any other key business partners such as online developers, sales and promotions etc. The brief is usually accepted by the Agency’s Group Manager and/or Strategic Planner. The Advertiser needs to consider the amount of effort required to adequately respond to this brief and allow the Media Agency sufficient time to review the brief, ask further questions and ultimately respond with a media solution that best meets their needs. There are some instances where the Advertiser requires the support of the Media Agency to complete the brief given the research available to the media agency. Such information supplied by the Media Agency may include an analysis of competitive media activity and identification of key target groups 16
  • 17. THE PROCESS BRIEFING The following pages identify critical information required to develop a comprehensive media brief. Marketing objectives Information on measurable objectives such as volume sales, share of market, profitability etc Advertising Objectives What the client is trying to accomplish through advertising, Some of these objectives may include:- • Stimulate / increase awareness / trial • Maintain / sustain current position: Remind / reinforce • Introduce / launch a new brand • Reposition a current brand • Relaunch a declining brand • Prevent erosion by a major competitor • Establish or improve image / reputation • Change attitude • Merchandise to the trade • Support sales force: impress franchisees, employees • Elicit a direct response:- coupon, sale announcement, write-in offer, etc Source of Business/targeting Identifying where the core business will come from in terms of the consumer. This information includes the identification of the targets and their profiles. These may include:- holding current brand users, getting current users to increase frequency of use, changing the user profile and appealing to a different target group, attracting customers from competitive brands, expanding the category, demographic (age/ sex/ income/ education/ employment/ ethnicity), Psychographics (lifestyle/outlook/interest/motivations), purchase influence/decision, purchaser vs. end user, Lifestyle market segments (ie. university students, retired, working etc) 17
  • 18. THE PROCESS BRIEFING Key Consumer Response The desired outcome in terms of thoughts, feelings or actions as a result of seeing/hearing the advertising? i.e. “I never thought about trying that brand before but now I might consider it” “I do trust my brand, but maybe it is time for a change Product Brand / Category Information Information that provides a richer understanding of the product and category. i.e. • Category definition: Competitive brands and competition from related product classes • Shares / sales / volume: Category / brand / competitor trends • Interest level - high / low, ie. fashion or cars vs. detergents • Responsiveness to advertising • Purchase cycle - users / heavy users • Life cycle stage for brand i.e. new, mature,line extension • Awareness / attitude information. Loyalty negativity etc. • Market expansion opportunities: category penetration, frequency of use, new volume opportunities Competitive Advertising Patterns Understanding what the competition does in the market, from a media perspective and also a creative perspective. Information such as where, when, how and what the competitors are advertising, who they are targeting with their communication and what they are trying to achieve. The detail of expenditure by media, seasonality, program and title selection and the amount of effort they are placing in media with their brand/product assists in identifying these patterns of behaviour. Geographic distribution / sales profile Understanding the needs to address different geographic locations given the variables. i.e. • Product distribution, sales, advertising • National vs. local support priority and requirements • Data/trends for category/brand/competition in terms of Sales volume/sales factors, market potential • Market costs of advertising expenditures and potential 18
  • 19. THE PROCESS BRIEFING Seasonality/Timing Considerations to be made for when to advertise can include: • Product/brand availability • Sales patterns - quarterly/monthly • Influencing factors – holidays, weather, promotions • Spending considerations: – Leading into peak season – Meeting new competitive introductions – Specific sale/promotion period • Client-mandated quarterly spending constraints • Cost of media • Sampling/PR activity/Sales promotion timing Creative considerations Highlight existing creative work or ongoing creative developments, which should be considered in media planning (examples of visuals, scripts, creative brief etc should be included) Budget How much money is budgeted for advertising and media. 19
  • 20. THE PROCESS STRATEGIC PLANNING It is the primary function of the planning process to consider all the potential points of influence in the lives of the consumer and identify innovative, efficient and effective ways to communicate with them. Armed with some valuable information that has been provided in the briefing process, the strategist then undertakes the role of an architect in building a framework of ideas and plans. As you read on, it will become obvious why the media planner plays a critical role in shaping the advertising campaign and how this process influences the creative development. The Strategist not only relies upon the valuable information sourced from the brief, but will need to immerse themselves in research in order to identify areas of opportunity. The starting point is the consumer – who are they, what inspires or influences their thinking and behaviour, and importantly what their media habits are. The process of understanding the consumer is far more than a simple demographic analysis. Following is a list of the key functions of Strategic Planning:- • Target audience profile • Recommended media(s) based on relevance and impact to target audience • Strategic idea that leverages knowledge of the target against the task at hand • The effort required in each media (i.e. TV to reach 60% of the target at least 2 times) • Geographic variables that may require unique effort or different timing • Timings for each media • Estimated costs 20
  • 21. THE PROCESS STRATEGIC PLANNING Target Audience It is vital to have a rich understanding of the consumer and why they make the choices they do, and how these choices can be influenced. So the planner will immerse themselves in research to help uncover the potentials and opportunities, along the way many questions need to answered, questions such as :- • What makes them different or unique? • What is their lifestyle and daily routine? • What are their purchase habits and intentions? • What is their income band? • What is their educational background? • What are their attitudes and opinions? • What and who inspires or influences them? • How does the consumer respond to the competitors activity? • How does the consumer respond to my brand? • How do they interact with media? • How do they consume media? • What is their attitude to different media? • Where do they go to look for brand information? The Planner will use a combination of industry and proprietary research and may need to instigate new studies in order to answer specific questions relating to the brand or service. Additionally many of the media and their respective industry bodies (such as Magazine Publishers of Australia, Free TV, Commercial Radio Australia, Outdoor Marketing Australia) conduct adhoc studies that can enhance knowledge about media consumption and involvement which are also useful tools. Creative ideas are built on insights into people, so this information is vital in assisting the creative process and enabling them to generate ideas that stimulate the appropriate action. Once the planner has identified the essence of the consumer and their media habits, further investigation is required to strengthen the knowledge of the consumers interaction with the many media options. 21
  • 22. THE PROCESS STRATEGIC PLANNING Media Selection The opportunities to promote a brand, product or service is rapidly increasing, particularly with such rapid technological advancements. Technology is having such an influence on consumers and consequently this has a strong impact on their media habits. The process of selecting the most appropriate communication vehicle(s) therefore needs to consider further questions, such as (but not limited to):- • Which media does my target audience best relate to? • How does my target interact with the media? • What are the advantages and disadvantages of each of the media that I need to consider? • What combination of media will work best to achieve my goals? • How effective is the media in delivering my objectives? • What percentage of my target audience can the media reach and how fast? • How efficient is the media in terms of costs? • What creative implications do I need to consider? • How affordable are the media options considering my budget? • How does my competitor use media and how should this influence my media choice? The list of media channels is not just limited to the mainstream media of television, radio, magazines, newspapers, cinema and outdoor, the opportunities extend to a huge variety of out of home/ambient environments, direct mail, email, mobile phones, internet, video games, CDRoms, merchandise, music, in programs etc. This list continues to grow as rapidly as new technology is developed. Many advertisers today require a multi media approach using different vehicles and different creative messages to effectively reach their target consumer and single media campaigns are declining as a result of the changing behaviour of consumers. 22
  • 23. THE PROCESS STRATEGIC PLANNING Media Selection – Identifying Strengths and Weaknesses Each media has in general terms, many areas of strength and weakness that need to be considered by the planner. These considerations need to be made bearing in mind all the elements of the brief and insights into the consumer, so whilst this list may register a strength in a particular area, it may in fact turn out to be a disadvantage for your specific needs eg. Fashion magazines may be considered highly cluttered for skincare products, yet this environment may be crucial to be a part of. Some of these considerations may include the following: Media Strength Weakness Television Builds high reach quickly High production cost Able to target all demographic groups High capital media cost (media) Geographically selective Difficult to obtain specific programmes short term Impact through sight, sound and movement Channel surfing Intrusive (in the home) In the case of Free to Air TV, not a paid for medium Call to action w ith direct response High level of ad clutter Highly researched Can’t measure out of home view ing for major events Programmes can be recorded Radio Builds frequency quickly Not paid for Easier to book a campaign at short notice Channel surfing More accountable - radio surveys Expensive for national coverage Target specific demographics/psychographics More expensive for a broad target group Geographically selective Limited creative flexibility (reliant on sound only) Personal medium Low er reach More negotiation flexibility w ith added value Reception can be low quality Low er production costs Credible environment (talkback) Creatively flexible Magazines National coverage w ith one insertion Longer lead time particularly for monthly magazines Provides details More difficult to book by regions Target specific groups e.g. 4w d enthusiasts High level of clutter High use by w omen Slow to build reach Most are a paid for Passive Higher level of involvement Lacks urgency Editorial compatibility Creative opportunities e.g. gatefolds, pop-ups Highly researched Longevity of advertising High quality production Quality image association New spapers Builds high reach quickly Short lifespan More detail No readership figures for specific sections For major metro’s and regional’s, paid for Except for business skew ed papers, requires a Tailored environments high number to provide national coverage More accountable / highly researched More difficult to reach younger audiences Geographically selective Ads can get lost in editorial Production costs are generally low Colour reproduction quality Book at short notice Offers colour to create impact Credible environment Negotiable on editorial Can accommodate coupons/direct response 23
  • 24. THE PROCESS STRATEGIC PLANNING Media Selection – Identifying Strengths and Weaknesses Media Strength Weakness Static Strong impact More difficult to target specific demographics Outdoor Mass coverage Higher production costs Target specific regions Creative execution needs to be simple Target light users of other medium High “w ear out” if message isn’t changed Cost effective coverage over a long period Long booking lead time Best sites are booked out for long periods Difficult to target in regional markets Mobile Mass coverage More difficult to target specific demographics Outdoor Target specific regions Higher production costs Able to target a number of areas w ith 1 Creative execution needs to be simple execution High “w ear out” if message isn’t changed Target light users of other medium Long booking lead time Cost effective coverage over a long period Cinema Strong impact w ith sight, sound and High production cost Paid for medium - cinema goers purchase Slow to build reach Captive audience Difficult to provide true national coverage Geographically selective dow n to specific Less accountable - no figures on w ho’s Targeting light TV view ers, younger audience view ing Grow ing audience Audience can avoid advertising Affordable to run longer length ads ie 60 sec Unknow n titles w hen booking long-term Every element of the media selection needs to have a clear role in the total campaign. Decisions need to be made on the amount of effort required for each media along with a recommendation on where and when to use the media. This information is evaluated and recommendations are submitted to the client, often supported in the format of a media schedule spreadsheet. 24
  • 25. THE PROCESS STRATEGIC PLANNING Media Scheduling - Reach and Frequency Depending on the objectives of the campaign, the planner evaluates the needs and recommends how much effort is required in order to get the appropriate consumer response over a given period of time. This effort is reported as a reach figure (either in total thousands of people within the target market group or as a % of the total people within the defined target market group). Some example variations of the type of reach levels you may consider might vary from the lower end – a highly anticipated event such as the promotion of tickets to a U2 concert may require very low levels of reach as the majority of the potential market will already be aware of the upcoming event. Then on the other end of the scale you may have a Myer 3 day sale so you will probably want to reach as many people as possible in a short space of time in order to achieve the desired result. As such a frequency level needs to be established ie. how often does the target market need to see the message in order to respond accordingly. There are many areas of consideration here that can influence this decision, such as the share of market vs competitors; share of noise vs competitors; current level of awareness of the advertised item; level of interest in the category; whether the message is new information to the consumer; what other level of marketing support will the product have; the strength of the creative message and its ability to break through the clutter; the strength of the media in allowing the advertised item to stand out; the length of time that the campaign needs to run for. These are only a few of the considerations that need to be taken into account. An example of the extremes in frequency levels may vary with a TVC campaign, as an example, the well established I-Pod, may require very few reminders as the brand is solid and the message is easily understood and recognised. Whereas you may have a car insurance commercial for a new competitor in the market that will require more frequency to break through the clutter, to allow sufficient time to explain why they are better than their competitors and finally to allow consumers enough time to digest the information and respond accordingly. All of these decisions need to also consider the point of diminishing returns – where further exposure and investment is not generating the level of response to justify the activity. There is also a consideration that too much exposure can in fact create a negative response to the brand, particularly so in this day of advertising savvy consumers. After all this investigation the planner will then recommend a level of Reach and Frequency. I.e. 60% 3+ (This essentially means that the objective of the campaign is to reach 60% of the target market at least 3 times) or 70% 2+ (objective being to reach 70% of the target market at least 2 times) 25
  • 26. THE PROCESS STRATEGIC PLANNING Media Scheduling - Flighting Decisions on scheduling needs to consider when each media should be active and for how long. Many common strategies will see the first ‘burst’ of activity over a number of weeks with generally higher weights (Reach and Frequency) than the following weeks. Often the mix of media is selected to run at different intervals to allow more longevity of the campaign. Some of the considerations for determining the flow of activity will take into account brand/product seasonality, consumer purchase decisions, competitive activity and estimates on when they might be advertising, the budget that is afforded for each media, the objectives of the campaign to generate the desired response within a given time period. Example Media Schedule Client: Brand X Product Deodorant Date Sep-06 Target Audience Men 16-24 January February March Creative Format Estimated Cost 1 8 15 22 29 5 12 19 26 5 12 19 26 60% 3+ 50% 2+ 50% 2+ Television 30 seconds $ 2,500,000 Magazines Full Page Colour $ 120,000 Radio 30 seconds $ 250,000 Total Cost $ 2,870,000 • Geography The media markets are generally categorized by state and then by metropolitan and regional markets. The selection of a media platform such as television, doesn’t assume a full national exposure unless you specifically buy each market individually. The primary exceptions to this are magazines and the internet which are most often bought nationally due to their national distribution/coverage. More information is provided in Chapter 5 on the various media markets. Many advertisers may have different needs in each market influenced by brand performance, CDI/BDI, product distribution, levels of awareness, influence of competition, varying seasonality trends and of course the audience potential. The level of activity and the selection of media therefore may vary by market/region. In some instances an advertiser may be looking at a test campaign to launch a product and to gauge the consumers reaction before rolling out nationally or there may be trade issues in a certain region that require extra effort. These many variables will influence the final distribution and selection of activity in each market 26
  • 27. THE PROCESS STRATEGIC PLANNING Approval The Media Agency prepares a consolidated presentation of all the key insights and opportunities along with a proposed media schedule to gain approval before proceeding to the Implementation Planning stage. The approval process needs to ensure that the client is in agreement that all the recommendations consider and address the expectations of the campaign before any further progress is made. The benefits of obtaining this interim approval allows each party to consider the direction that is being taken at a certain point before progressing with specifics that may not be appropriate. For example if the client does not agree firstly with the target audience recommendation then the rest of the plan is redundant until a review of these recommendations takes place, likewise if the advertiser specifically is not in agreement with a certain media choice, lets say newspapers as an example – perhaps influenced by a previous experience – then the process for drilling into the performance of individual titles and the environments they offer is also redundant. Specific approvals will cover the following elements:- • Target audience • Media channel selection • Reach and Frequency goals • Flighting • Geographic selections and priorities • Costs Following an agreement to proceed, the agency then needs to undertake the task of implementation planning to help determine how best to use each media and leverage opportunities within each. There are some situations where the implementation process is absorbed into the strategic planning process. . 27
  • 28. THE PROCESS IMPLEMENTATION PLANNING If strategic planning is about identifying innovative, efficient and effective ways to communicate with the consumer, then the implementation process is about ensuring the message is placed in the right environment and the right time at the best cost. The process of implementation planning is to bring the strategic plan to life with specifics and recommendations on how to implement the activity and to develop a final estimate of costs. Examples of the recommendations and functions of this process include the following:- Environment • genre of TV programs • magazine or newspaper titles and specific sections • radio stations • bus and road routes • cinema complexes • online sites Period – best time to reach them • day of week • time of Day (in media terms we refer to Day parts) Shape • preferred size and shape of creative material Cost • proposed cost by media/market to deliver the final plan • maximising negotiations to get the best value A final media plan including a recommendation on the above is then submitted to the client for approval. Aside from creative sizing and costs, magazines and newspaper plans will usually include a list of titles and issue dates, radio will include station combinations and dayparts, cinema may include titles and number of cinemas, Outdoor will generally include the number of sites and formats by region. Television is generally less specific with this plan outlining dayparts and program genres with perhaps a list of preferred programs. It will not include a full listing of all the programs as this is not possible to advise until the buying process has been completed and all programs have been checked for their availability. 28
  • 29. THE PROCESS BUYING Once all the approvals have been submitted the buying team is briefed on the recommendations and final plan. There are three main steps in this process 1) Preparation This is where the buying team familiarises themselves with the needs of the plan and considers all potential opportunities that could leverage the activity (either through better placement or better rates). It is quite often during this stage that a group of people from the agency will participate in a brainstorming session to help maximise ideas for implementing the plan. There is a large amount of media research that will help the buying process, information on the performance of individual programs against a target group, the number of readers for a print title for a target group, the performance of radio stations at different times of the day etc.etc. As with all research, the information is historical and whilst this is helpful in identifying trends, it does not guarantee what may take place in the future. Therefore the buyer must be very aware of all the upcoming opportunities that may influence their decision. For example if the planner was aiming to buy a 30 second spot on television in program ‘A’ – yet at the same time another channel is televising the Olympics Opening Ceremony (where most of their target will be watching) you can’t expect program ‘A’ to deliver the same results as it has in the past. This scenario is played out across all markets in every week against a variety of different program formats. Equally other media also runs special features/events so the buyer must be armed with all the information about each media and their upcoming plans to assist them making their purchase decisions. Type of information to be gathered when preparing for a buy are as follows: • Television program formats • Television program availability lists (to show which programs are available to purchase) • Ratings/Audience information for the target market group • Rate card information • List of special features in print titles and special events in other media eg survey promotions on radio • List of major events and holiday periods (this may influence viewing patterns) • Details of sports schedules for television, radio, print and the internet 29
  • 30. THE PROCESS BUYING 2) Buying The buying team are then responsible for securing all the bookings with the media representatives and ensuring that all the recommendations and placement requirements are met. It is also the responsibility of the buying team to look at ways to leverage negotiations in order to save money for the advertiser, but not at the expense of compromising the strategy. The steps that are taken to buy a campaign will vary from media to media with television taking a larger amount of time as each individual commercial spot needs to be selected for every market. • Television The objective of a campaign may be to purchase 100 TARPS (a term used to describe the performance of a specific program against a specific target audience – descriptions provided in the Appendix). The buyer then needs to buy a selection of programs to build the schedule as close as possible to this 100 TARPS. The following chart provides an example of how a television schedule is built and the selection must take into account things such as the program environment and compatibility to the product and strategy, the cost of the program and performance of the program. Example Television schedule Network Program Name Timeslot Cost Tarp 3 News 1800-1830 $ 2,400 12 3 Husband Swap 1930-2000 $ 6,500 15 5 Animal Adventures 2030-2130 $ 4,800 13 5 Movie 2030-2230 $ 5,210 15 6 News 1800-1830 $ 2,705 12 6 Grammy bloopers 2130-2230 $ 2,680 18 5 Crime Busters 2030-2230 $ 3,100 7 8 Cricket 1800-2230 $ 6,500 10 TOTAL $ 33,895 102 The buyer then summarises all the bookings for each Network and then processes the bookings to the Networks and await for confirmation that all spots have been accepted as requested. Television advertising has a restriction on advertising minutes per hour, so as they have a limited inventory of spots to sell, an Agency may process a booking where the Network cannot confirm all placements. In this situation the buyer then needs to revisit the plan and identify alternative placement(s) options and resubmit to the Network for acceptance of this booking. 30
  • 31. THE PROCESS BUYING • Print Newspaper and magazine titles are usually selected at the implementation planning stage so the buyer usually assesses all titles in order to determine the best selection to meet the strategic requirements. The criteria for selection usually includes assessment against various elements including genre, cost efficiency, reach, appropriate content, frequency of publication etc. Once selected the buyer will seek approval from the client and then follow the instructions given within the strategy and process the bookings with the media representative of each publication. The buyer may also be required to identify the best positioning within the title and negotiate for the placement of the ad to appear within their preferred environment. They will also at this stage try to leverage any value- added opportunities such as editorial. Example Magazine Booking Title Cover Date Issue Date Size Position Cost Outdoor Adventures March Feb-20 Full Page Colour Camping feature $2,500 At Home March Feb-24 Half Page Colour Gardening section $4,800 Example Magazine Booking Title Cover Date Issue Date Size Position Outdoor Adventures March Feb-20 Full Page Colour Camping feature At Home March Feb-24 Half Page Colour Gardening section • Radio The strategic planning process will identify the required reach and frequency of the radio schedule against a specified demographic and it is then the job of the buyer to select the preferred list of stations and number of spots to be bought and usually this information will include details on the number of spots per session/day. Again with client approval the buyer will then process the bookings to these instructions. Example Radio Booking Station Week Commencing Length Spots Session Costs 2AAB Feb-16 30 sec 10 Breakfast $3,000 2AAB Feb-16 30 sec 2 Morning $ 500 2AAB Feb-16 30 sec 5 Drive $ 2,600 2AAB Feb-16 30 sec 15 Evenning $3,100 Other media generally requires the specific details of where and when to be advised along with placement considerations and negotiated rates that are applicable 3. Managing Outcomes The buyer is responsible for ensuring that budget levels are not exceeded and that campaign objectives (ie Reach and Frequency) are delivered. 31
  • 32. THE PROCESS MONITORING Once all the activity has been booked, specific steps are taken to track all the activity that was booked to ensure it did in fact appear as requested and that it delivered the performance expectations. Monitoring needs to take place as soon as possible after activity has appeared in order to rectify any potential issues. A television campaign for example may not be delivering the goals expected as a certain program has rapidly declined in performance during your campaign period. The sooner a problem is identified, the sooner a solution can be found. Likewise if a commercial didn’t go to air as booked, then compensation can be negotiated and a replacement spot can be scheduled as soon as possible. There can be many variables that influence the final results and the buyer needs to be aware of the changing conditions in order to improve the situation. Example situation: If 100 Tarps were bought and expected to be delivered for a TV schedule in a given week and three spots were placed in News during the week, each expecting to deliver 10 Tarps each (ie Total 30 Tarps), yet in the monitoring process it was noted that the three spots collectively only delivered 15 Tarps, this resulted in the week of activity underperforming by 50%. The buyer would then investigate options to possibly reschedule any further activity out of this program and into another program, if they felt that the trend was likely to continue. 32
  • 33. THE PROCESS INVOICING When the buyer makes their booking, each placement is recorded on a computer system and from here the finance department has the relevant information to generate client invoices. Generally TV and Radio will be invoiced on a week commencing date, whereby all activity that appeared in a specific week will be billed during one month (ie if a week commencing date is say March 31 yet all the activity appeared from Tuesday onwards, the activity will still be invoiced to the client as a March cost even though the majority of activity appeared in April). Print is invoiced based on the actual date of insertion (or issue date), it is not uncommon that a magazine for example with a cover date of February will be available on the shelves in mid January, therefore the issue date is January and this is when the activity is billed. There are some variations on these themes but generally this is the practice. 33
  • 34. Chapter Four Media Research 34
  • 35. MEDIA RESEARCH AN OVERVIEW Research plays a vital role in the media process and it is commonly the second largest cost to a Media Agency after salaries. Millions of dollars are invested every year on media research that is either a) proprietary to an individual agency or b) off the shelf media research available in the market. The advertiser can provide a wealth of information on their product/service/brand. However, to develop a solid strategic idea to answer their marketing and advertising needs, a much richer understanding of consumers and their behaviour is required, particularly with regards to their media habits. Media research can either be qualitative, which is more about the process of behavioural patterns or it can be quantitative which is primarily concerned with the statistical relevance of various kinds of behaviour. Essentially Qualitative is ‘Why’ and Quantitative is 'What' or 'How Many'. The better the quality of research that a Media Agency has access to, the better equipped they are in: • enhancing the quality of the brief to give a comprehensive platform of knowledge about the brand, consumers, competitors, marketplace • producing key insights on consumers, their behaviour and media habits therefore enabling the planner to provide strategic recommendations supported by research findings • identifying the most appropriate media channels to consider when targeting the consumer • Identifying the most effective media supplier. ie. station, publisher, broadcaster, etc • identifying the most effective way of using the media. ie. what day, time, week, program, title etc • tracking the performance of the campaign On the following pages we have identified some of the most widely used, off-the-shelf industry research that is used regularly by media planners and buyers. 35
  • 36. MEDIA RESEARCH AN OVERVIEW The following chart provides a snapshot of the various companies that provide media research measurement for the industry and the format in which the information is gathered. Each of the research companies have independent websites which provide comprehensive information about their process and services. People In Meters development OzTam VIEW RegTam TV Outdoor Ticket ABC Audits MPDAA Cinema CAB Sales Print Roy Morgan Face to Face Internet Radio Interviews Nielsen NetRatings Nielsen Media Online Panel Diaries 36
  • 37. MEDIA RESEARCH TELEVISION AGB Nielsen Media Research Provides the system that captures television audience measurement (TAM) data in Australia for metropolitan and regional markets as well as for subscription television. OzTAM Owns the data collected by AGB and is the official source for television audience measurement (TAM) data for metropolitan free to air networks and nationally for subscription television. The data is used by television networks and media agencies and provides information on over 100 demographics, minute by minute, 24 hours a day, 365 days a year. The process first involves a panel selection of 3035 households that are recruited via an establishment survey which defines the population to be represented and its characteristics. The survey is conducted via telephone interviews throughout the year. In managing the recruitment process and monitoring turnover, the panel is aimed to be an accurate representation of the population. Once a household has been recruited, a people meter is connected to all television sets in the house. The meter records and stores time, date, television set on/off, channel to which each television set is tuned, and who is viewing. All residents and guests register their television usage using a remote control. Every night the data is retrieved automatically via modem telephone software and the production system performs the collection, processing, validation, weighting and final production of each household's data. Once the production processes have been completed, the television program information and ratings are integrated. Results are released the following morning and the data is made available to subscribers via a website. Examples of some of the information that Media Agencies can generate from the database are summarised on the following page: RegTAM RegTam follows the same principles for the five regional aggregated markets and 19 sub markets. Nielsen Media Research For smaller independent markets such as Regional WA, Darwin, Pt Pirie/Broken Hill, Riverand, Mt Gambier, Remote Central & East, Mildura and Griffith, a diary system is used that records weekly data across a 4 week average and this is recorded against 18 demographics. 37
  • 38. MEDIA RESEARCH TELEVISION Some of the analysis reports that Media Agencies will use regularly include Audience Share and Program Performance: Share of Audience either by station (ie. ATN 7 Sydney, TCN 9 Sydney, TEN10 Sydney) or as a National total taking into account all 5 metropolitan Networks (ie. Sydney, Melbourne, Brisbane, Adelaide and Perth) for the 5 free to air Networks (ie. Seven Network, Nine Network, Ten Network, SBS and ABC) The following example provides the share of audience information at a Station and Network level. This exampe is based on data collected from one week against the demographic of All People, for all viewing in the time period Sunday – Saturday from 6pm – 11.59pm. Many buyers will be more interested to see this level of information at a demographic level, this way they can identify the stations/networks which have a stronger skew to the people they are targeting. Network 5 City Sydney Melbourne Brisbane Adelaide Perth ABC 11.8 11.4 12.4 10.4 12.0 13.6 SEVEN 22.3 21.2 22.7 20.7 23.1 26.5 NINE 26.1 25.7 26.2 26.2 28.6 25.0 TEN 19.2 18.4 20.4 16.2 21.4 21.2 SBS 4.3 4.5 4.1 3.9 4.6 4.4 From these results, it shows that Channel Seven held the highest share of All People viewing in Perth yet Channel Nine dominated in all other markets Source: OzTAM 38
  • 39. MEDIA RESEARCH TELEVISION Program performance data provides the actual audience figures for a specific program in a specific market. This information can be drilled down to a micro level considering minute by minute rating performance movement, or at a macro level which will look at the programs average performance on the day or over a number of weeks. The following example provides a listing of the top rating shows for All People in one specific week. The figures represent the average number of people (represented as 000s) that watched the program. Program 5 City Sydney Melbourne Brisbane Adelaide Perth News 1,930 561 496 421 244 208 Australian Idol 1,905 578 643 280 196 208 Frasier Finale 1,837 485 563 397 185 207 60 Minutes 1,754 513 541 319 166 215 HouseWed 1,619 408 542 325 169 175 From these results, Australian Idol recorded strongest audience numbers in Melbourne and Sydney compared to the other programs yet in Brisbane and Adelaide it was the News that rated highest and 60 Minutes was the strongest program in Perth. There is a rich database of information that Media Agencies can drill into to assist them in evaluating different situations. The outcome of this analysis can help steer the planning process and has a strong influence on the buying process. Source: OzTAM 39
  • 40. MEDIA RESEARCH RADIO Nielsen Media Research Nielsen Media Research is the official contractor for radio audience surveys in all markets throughout Australia, providing listening data for radio stations in Sydney, Melbourne, Brisbane, Adelaide and Perth, eight times per year. Regular surveys are also conducted in Newcastle, Canberra, Wollongong and Gold Coast. Other regional markets are surveyed on an annual or bi-annual basis. Nielsen Media Research's diary system is based on personally-placed and collected diaries, where the listener records their habits over a seven day period with quarter hour listening acknowledged by a pre-list of stations. Listening to other non-prelisted stations is captured by the respondent in the ‘Other FM’ or ‘Other AM’ section, also by quarter hour. Primarily, Advertising Media agencies use the information provided by Nielsen Media Research to help determine the size and share of audience each station attracts across a broad range of demographics and the particular performance of each station at different times of the day. This information helps a planner to decide which station(s) to choose in order to reach the right people and it also assists in deciding what time of the day offers the greatest opportunity in reaching more of the target market. The following chart provides the average station share of audience over a week against different age segments. For example, Nova 96.9 recorded the highest average audience for People 18-24 in this survey and 2DAY recorded the highest average audience for People 25-39: Monday-Sunday Share by Age Group 5.30am - 12 midnight Sydney Survey 10-17 18-24 25-39 40-54 55+ 1170 - 2CH 0.2 1.3 0.3 3.4 13.8 2GB 0.9 1.6 5.3 8.8 26.4 2UE 1.5 5.5 3.8 7.7 16.2 2DAY 25.0 19.2 15.1 6.5 0.8 MIX 106.5 16.3 7.7 11.4 11.2 2.0 2MMM 12.5 15.1 15.0 9.0 1.0 NOVA 96.9 18.1 20.7 13.6 3.8 0.6 WSFM 4.0 7.2 5.3 16.8 7.2 ABC702 1.5 0.7 4.5 10.9 12.4 2RN 0.1 3.2 1.5 2.5 3.0 NEWSR 0.7 0.1 1.6 1.6 1.9 2JJJ 1.7 5.2 8.4 2.3 0.6 ABCCL-FM 0.1 0.3 1.5 2.2 4.6 Source: Nielsen Media Research 40
  • 41. MEDIA RESEARCH RADIO Nielsen Media Research The following chart reports the share of total audience (aged 10+) against different dayparts. In this example, the station that generated the highest audience on average over the week during the Breakfast timeslot of 5.30am – 9.00am is 2GB with 16.5%: Monday - Friday (All People 10+) Share by Session Sydney Survey from 2005 5.30am - 9.00am - 12noon - 4.00pm - 7.00pm - 9.00am 12 noon 4.00pm 7.00pm midnight 1170 - 2CH 4.6 6.3 5.8 4.6 5.0 2GB 16.5 13.7 9.3 8.4 12.0 2UE 8.2 10.1 9.2 9.2 10.2 2DAY 8.5 9.0 9.9 10.4 9.6 MIX 106.5 7.2 7.6 8.7 8.4 11.6 2MMM 7.9 9.0 11.3 11.4 7.4 NOVA 96.9 8.6 7.4 8.4 8.7 6.9 WSFM 8.8 10.1 10.9 7.5 6.9 ABC702 10.1 6.5 5.6 8.6 7.8 2RN 2.9 1.8 1.4 2.9 2.3 NEWSR 2.2 0.7 0.6 1.2 2.9 2JJJ 2.4 3.8 4.5 4.6 3.0 ABCCL-FM 1.4 2.5 2.3 3.1 2.7 Source: Nielsen Media Research 41
  • 42. MEDIA RESEARCH PRINT Roy Morgan Research Roy Morgan Research is a market research company that provides Australian readership data from a survey sample of around 55,000 people in Australia over a 12 month period. The survey is conducted nationally, via face-to-face interviews at the respondents' home with people aged 14+. Data is then weighted to ABS (Audit Bureau of Statistics) population data to provide estimated numbers in thousands for a range of demographic, psychographic and product purchase variables. Readership figures are released quarterly and are based on a 12 month rolling database Through this survey, Roy Morgan can also produce information on consumers and their lifestyle, attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. The system is single source whereby all the information is gathered via direct questions to an individual. The information that is provided by Roy Morgan allows the Media Agency to perform a variety of evaluations including the following as a minimum: • understanding consumer behaviour and habits • identifying media habits and media usage • analysing preferred magazine and newspapers titles • identifying product usage • identifying trends 42
  • 43. MEDIA RESEARCH PRINT Roy Morgan Research The following chart lists the Top 20 magazine titles for the 12 months from April 2005 – March 2006. This listing is ranked against Total People and the readership profile can be further analysed by looking at the percentage of readers that are either Male/Female or where they fall within the demographic profile. The variables you can analyse this information against is very large and you can profile all titles against a more specific demographic group or against certain lifestyle or product purchase points. For example you can find out how many readers of Woman’s Day are planning to buy a car in the next 2 years and then compare this profile to other titles. ROY MORGAN SINGLE SOURCE AUSTRALIA : APR 2005 - MAR 2006 50 and TOTAL Men Wom en 14-24 25-34 35-49 Over ALL MAGAZINES 000's % % % % % % TOTAL Motoring Club Magazines 3515 55.1 44.9 5.6 10.6 28.9 54.8 Woman's Day 2746 20.7 79.3 19.9 16.2 26.6 37.4 Women's Weekly 2706 22.4 77.6 13.7 15.5 28.2 42.5 New Idea 2304 20.3 79.7 19.1 16.3 25.3 39.3 Sunday Magazine (NSW/Vic) 2203 41.4 58.6 13.2 15 31.7 40.1 Good Weekend (NSW/Vic) 1799 47.5 52.5 10.2 17.2 30.8 41.8 Sunday Life (NSW/Vic) 1399 43.7 56.3 10.7 15 29.6 44.8 Better Homes and Gardens 1396 28.5 71.5 6.8 14.5 31 47.7 Open Road (NSW) 1396 56.5 43.5 5.3 10.5 30 54.2 Sunday Telegraph TV Guide (NSW) 1390 48.8 51.2 19.6 15.8 26.1 38.4 Sunday Mail TV Guide (Qld) 1275 49.1 50.9 17.8 14.9 27 40.3 TV Week 1169 39.6 60.4 32.9 17.3 20.7 29.1 That's Life 1155 21.1 78.9 18.4 18.4 25.5 37.6 Sunday Herald Sun TV Guide (Vic) 1141 46.6 53.4 18.3 15 29.1 37.7 Foxtel Magazine 1073 51.2 48.8 19.1 17 31.4 32.4 Australian Reader's Digest 966 46.2 53.8 13 13.8 25 48.2 Source: Roy Morgan Research 43
  • 44. MEDIA RESEARCH PRINT There are two audit bureaus in Australia that provide independent figures on how many copies of a title is circulated in the marketplace. Audit Bureau of Circulations (ABC) and Circulations Audit Bureau (CAB) Audit Bureau of Circulation (ABC) Audits ’paid for’ newspapers and magazines. An ABC audit verifies the paid circulation of a publication over a defined audit period. The audit verifies and reports the average number of copies sold per issue, the number of issues audited in the period, the cover price, any exclusions from audit and the publishing frequency of each publication. There are four audit periods i) January – March ii) April – June iii) July - September iv) October - December . This covers all newspapers, magazines, and newspaper inserted magazines that have a circulation in excess of 25,000. All other titles are audited twice a year with a publisher statement also provided twice a year. Planners and Buyers will review this information to see the actual number of copies sold and the trend of its performance over different survey periods. For example, from the following report, it would appear that ‘Australian Country Threads’ has been increasing since 2003, whereas ‘Australian Family Circle’ has been slowly declining over the same period. The decision to choose any title may be based on the overall numbers and highest volume of sales or on environment or conversely given the decline there may be concerns that readers are losing interest in the title and therefore another option may be preferred. Source: Audit Bureau of Circulations 44
  • 45. MEDIA RESEARCH PRINT Circulations Audit Bureau (CAB) CAB Audits were set up primarily to audit business, trade and technical publications and suburban newspapers. Most CAB titles are distributed in a subscription, controlled circulation or free basis A CAB audit verifies the total average distribution of a publication over a defined audit period. Every copy within the defined six or twelve month period is verified to produce the Average Net Distribution of an issue. The audit verifies and reports the average net distribution per issue, highlighting the printing and method of distribution, number of issues and the publishing frequency of each publication. There are two audit periods, April to September and October to March. 45
  • 46. MEDIA RESEARCH ONLINE AC Nielsen NetRatings Nielsen//NetRatings offers a suite of online measurement tools including the following: • Market Intelligence The largest independent Census based measurement of audited websites within specific industries that records global and domestic site traffic. Key metrics include unique browsers, page impressions, average frequency, page duration, session duration. Data captures on daily, weekly and monthly near real time. • Ad Relevance Provides online competitive monitoring including the tracking of expenditure, details of sites being used, the creative executions, campaign frequency and number of impressions reached. • Netview Provides a perspective on the online consumer, with analysis of consumer behaviour, trends and detailed demographics. • Web R&F Calculates audience reach and frequency for online campaigns Roy Morgan Roy Morgan, as referred to previously, has an Asteroid product which provides a range of information that can answer questions such as: – Attitudes to new technology – How long has my target been online? – What are they using the internet for? – Where are they more likely to access the internet from? – What types of sites are they visiting? Source: Nielsen NetRatings 46
  • 47. MEDIA RESEARCH ADVERTISING EXPENDITURE Nielsen Media Research Nielsen Media Research monitors advertising activity in Australia, providing the industry currency for advertising expenditure estimates and volume measurement across all mainstream media including Free TV, newspapers, consumer magazines, radio, cinema and outdoor. Additionally, information is also available on business to business publications and direct mail. A media agency can use this data to identify and track activity of competitive advertisers. The information can be viewed at a total category level (i.e. Food), Company level (i.e. Nestle) and then down to a Brand (i.e.. Maggi) and Product level (i.e..Liquid Gravy). Subscribers can, as a minimum: • Determine competitor strategies in terms of what media they used, when they advertised, what time time periods, what stations/titles used, how much was spent. • Demonstrate geographic and seasonal variation in expenditures; • Develop a complete picture of what market leaders are doing in a category and identify niche opportunities; • Understand how competitors view their target audience, profile their brand and how they seek to position themselves in the market; • Estimate the advertising cost required to take a new product to market, through illustrating the budget required to launch and sustain a brand; • Track new product launches; • Analyse the effectiveness of a specific strategy; • Establish the best schedule timing to maximise the efficiency of the media spend. The following example shows a summary of competitive expenditure within a specified category and shows how much the category and products spent in each media. From this example it would appear that magazines are the major focus. ALL MEDIA NATIONAL SUMMARY (EXAMPLE ONLY) Metro Regional Total Metro TV Regional TV Mags Radio Cinema Outdoor Press Press (000s) (000s) (000s) (000s) (000s) (000s) (000s) (000s) (000s) Category Product A 54 11 5 2 22 12 1 1 Product B 21 7 1 13 Total 75 18 6 2 0 35 12 1 1 47
  • 48. MEDIA RESEARCH ADVERTISING VERIFICATION Nielsen Media Research The depth of information that looks at specific placement of your own client and that of the competitors can be investigated through various spot monitoring reports. These reports are available for metropolitan and regional TV, radio and print. Spot monitoring reports are used to verify that your own client’s activity has gone to air/appeared correctly in terms of timing, placement and that the correct key number/material was scheduled. Additionally, evaluating the placement of activity can assist in understanding who the competitors might be trying to reach. It is this spot monitoring data that is used to determine the total aggregate estimated expenditures discussed previously. Some example spot reports follow: Metropolitan Television Spot Report - Sydney (EXAMPLE ONLY) Product Station Duration Key Number Day Date Time Program Product A ATN 7 15 seconds PA0630 Thu 4/09/2005 9.14pm For Love or Money PA0630 Sun 7/09/2005 11.43am Rugby Zone PA0630 Mon 8/09/2005 6.15am Sunrise TCN 9 15 seconds PA0630 Sun 31/08/2005 10.47am Sunday PA0630 Tue 2/09/2005' 7.43pm DIY Rescue PA0630 Wed 10/09/2005 11.23pm Nightline TEN 10 15 seconds PA0630 Tue 2/09/2005 5.40pm News Sydney Television: Total 7 spots Radio Spot Report - Sydney (EXAMPLE ONLY) Product Station Duration Key Number Day Date Time Product A 2MMM 30 second PAR032 Mon 10/11/2005 5.21am, 6.59am, 7.25am, 10.55am PAR032 Tue 11/11/2005 8.25am, 1.35pm, 6.28pm, 9.45pm PAR032 Wed 12/11/2005 5.45am, 9.02am, 4.38pm, 11.08pm PAR032 Thu 13/11/2005 8.05am, 9.15am, 11.48am, 3.49pm PAR032 Fri 14/11/2005 10.09am, 11.48am, 4.55pm, 7.08pm Sydney Radio Total 20 spots Magazine Spot Report - Women's General (EXAMPLE ONLY) Product Publication Issue Page Position Colour Section Key Number Product A New Idea Mon 27/1/05 99/100 IBC 4 Colour Run of Book PAM043 Product B New Idea Mon 17/11/05 27/116 Full Page 4 Colour Run of book PBM043 Women's General Total 2 spots: Expenditure $35,920 48
  • 49. MEDIA RESEARCH MEDIA INSIGHTS Nielsen Media Research Panorama is another product offered by Nielsen Media Research. It provides consumer and media insights by combining media habits, lifestyles, attitudes and product consumption and collected from a national sample of 34,000 people. This system adopts a fusing process that utilises: • OzTAM audience ‘currency’ data for TV • Nielsen Media audience ‘currency’ data for Radio and • Audience data for other media captured from the Panorama questionnaire. 49
  • 50. RESEARCH PROPRIETARY RESEARCH All major Media Agencies not only subscribe to a large offering of industry research (some of which have been reported on the previous pages) but they will also invest heavily in providing their own bespoke research. With the rapid pace of change with media options and consumer usage, there is a significant increase in the amount of multi tasking and simultaneous media use like watching TV while flicking through a magazine, using the internet with the radio on, texting with the radio on etc. The situation will continue to divide consumers attention as rapidly as new technology and media options are made available. Industry research tends to focus in a single media and does not adequately take into account consumer and media fragmentation, hence the increased need for proprietary systems. Proprietary research allows an agency to create their own database of consumers, brands and media interaction points and assists in answering questions about the relationship between all elements. A consistent question that marketers are seeking an answer to is how do they ‘engage’ their brand with the consumer. As each brand has its own unique qualities, the relationship with the consumer can only be understood by conducting specific research studies. 50
  • 51. Chapter Five The Media 51
  • 52. THE MEDIA AN OVERVIEW All media is planned and bought in different ways as they each have a unique structure, format, descriptors and rate structure. For example placement descriptions, TV and Radio is planned considering the zones or dayparts that are preferred, whereas for Print the placement areas are called sections. The geographic coverage areas are also quite different, for example with TV and Radio, you have a set of stations that fall into the Metro region or Regional region, but a Metro region doesn’t actually assume all Capital Cities but refers to the city regions of Sydney, Melbourne, Brisbane, Adelaide and Perth. All other markets fall under the Regional category. The formats in how you buy the media influences the cost and sometimes can influence where the message is placed. The rates and costs to advertise may be fixed over a period of time or can fluctuate depending on the demand for advertising in the market. For example print rates are generally fixed over a period of 12 months until they apply their next rate increase, so regardless of which issue you want to be in, the rate will the same throughout this period. However with TV, whilst a rate structure is negotiated at the beginning of the year, the rates throughout the year do vary, so if you buy a spot in the News in say April then another one in July, the cost for the July spot will usually be higher as there is generally higher viewing during the winter months. The following pages will provide a brief summary of these key variations and considerations that a Media Agency needs to be fully aware of when undertaking their planning and buying. 52
  • 53. THE MEDIA TELEVISION Markets Metro markets include Sydney, Melbourne, Brisbane, Adelaide and Perth with Seven, Nine and Ten operating in these regions so individual spots need to be booked for each market. National operators include SBS and Pay TV so one booking will be televised across all markets. ABC is also National but is non commercial. Regional markets operate in all other areas where in most cases the Networks include Seven, Nine and Ten and the majority of programming and scheduling replicates what is televised in the metro markets. Some smaller markets have only one or two stations and these stations telecast a mix of programs from each of the main Networks. Zones/Daypart Peak Sun-Sat 1800-2230 Off Peak Any time outside of Peak Including the following areas: Womens daytime Mon-Fri 1000-1600 Fringe Mon-Fri 1700-1800 Late Night Sun-Sat 2230-2400 Morning Mon-Fri 0700-0900 Weekend afternoon Sun/Sat 1200-1800 Commercial Lengths 15 seconds, 30 seconds, 45 seconds, 60 seconds, 90 second. Other options ‘Pull throughs’, which are generally seen on live sport where a message is scrawled across the bottom of the screen ‘Advertorials’ where a product/service is talked about during the program ‘In program’ where a product is placed within the program Rates Generally an agency/client rate arrangement is negotiated at the beginning of the year. Individual markets are bought with some opportunities to buy a spot on a network basis, such as a special event. Rates are set for 30 second commercial spots with a 15 second spot generally costing 60% of a 30 second, 45 second at 150% of a 30 second and 60 second at 200% of a 30 second rate. Every program has a specific cost (as negotiated by the agency) and the costs are higher in the peak zones and for the more popular shows. Rates also increase during the winter months when audiences are higher and at the end of the year in the lead up to Xmas when demand is also generally higher. 53
  • 54. THE MEDIA TELEVISION Programming Program formats are generally released at the beginning and middle of the year to agencies as a guide to what programs they will be running during the year, however specific days and timeslots are not released for many programs until closer to on air date. Buying Considerations Specific Programs are bought considering their performance against the target market of the campaign, the cost and efficiency of reaching this market and environmental compatibility to the advertising message/brand/product. Activity is bought by specifying the commercial length required, program name and timeslot, specific week and specific day and the applicable rate. Evaluation comparison Program Rate Audience (000s) Cost per Thousand (CPM) ‘A” $8,900 25 $356 ‘B’ $10,150 32 $317 ‘C’ $ 4,200 16 $262 *Program C is the cheapest and most cost efficient (see CPM) but Program B has the highest overall reach The Agency will need to decide what is most important – efficiency or reach or perhaps both. 54
  • 55. THE MEDIA RADIO Markets Radio markets are categorised as either metro or regional.Similar to TV where the metro markets are made up of Sydney, Melbourne, Brisbane, Adelaide and Perth. All other areas are classified as Regional. Zones Breakfast = 5.30am - 9.00am Morning = 9.00am - 12.00nn Afternoon = 12.00nn - 4.00pm Drive = 4.00pm - 7.00pm Night = 7.00pm - 12.00mn Run of Station (ROS) = all sessions Commercial Lengths 15 seconds, 30 seconds, 45 seconds, 60 seconds, 90 second. Creative options Live reads mean you supply a script to the announcer and they will read the message live at nominated times Sponsorships allow you to get naming rights to a segment which includes billboards (eg. brought to you by…) Sampling promotions where product giveaways are provided on location Rates You can generally buy a number of spots in a certain time zone and the costs will vary in these zones and can fluctuate depending on market demand. Packages are also often bought where a minimum of spots (usually 30) are scheduled across all zones (Run Of Station, ROS) Rates are charged by the number of spots x relevant cost for the zone The higher performing zones generally attract a higher rate (i.e. Breakfast and Drive. Programming Each station has a specific profile that is usually complimented through all day parts with a consistent selection of music and personalities. A station profile maybe one of the following formats: talk back, easy listening, hit music, classic hits, contemporary, new music. Buying Considerations Radio is bought by selecting the number of spots to be placed on a specific station, in a specific zone and this decision is influenced by the performance of these stations and zones in reaching the target market and considering the associated cost and environmental compatibility. Booking information requires detail such as station, day part, number of spots, commercial length, specific weeks/days and spot rates. 55
  • 56. THE MEDIA MAGAZINES Markets In the majority of cases, magazines are a national media. Upon request state insertions may be possible. Classifications Magazines are generally classified by their reader profile. The main classifications include the following: Consumer magazines - usually paid for and available for all Australian readers eg. Marie Claire, BRW, Inside Sport Business/trade magazines - some are paid for/some are circulated free of charge eg. Adnews, Traveltrade for the travel industry Rural magazines - like the business/trade magazines but relevant for the rural areas eg. Australian,Citrus News Sections Each magazine has its own individual sections, for a women’s magazine, this may include specific sections dedicated to health/beauty, food, fashion, gardening etc. Magazines may also publish a list of features throughout the year (ie bridal feature) Formats Standard sizes would include Full Page, Double Page Spread, Half Page, Third Page and Quarter page formats. Other options may be considered on application. Full Colour, spot colour or Black and White options are available. Other creative options are inserts, covermounts, tip ons (product attached), gatefolds to name a few. Placement Placement can be general run of paper, a specific page placement, inside front or inside back covers, centre spread, outside back cover, consecutive pages, specific section placement. Rates Publications publish a rate card which many make available on their website. Rates will depend on the size dimensions, colour requirements and placement of the advertisement. The volume of spend in a publication will influence the level of discount applied. Generally a request to have a specific placement will attract a loading. 56
  • 57. THE MEDIA MAGAZINES Issues Magazines have several applicable dates The cover date - which is published on the magazine (for example a monthly magazine may have September on the cover) The on sale date - which is the date the magazine is available for purchase in the market (for example a monthly magazine with a cover date of September may in fact be on the shelves in mid August. Buying Considerations Once the magazine title(s) have been selected, based in its performance in reaching the target market for the campaign, its costs and efficiency and environmental compatibility, activity is bought by specifying the on sale date and cover date of the issue, size of the advertisement, colour requirements, placement requirements and applicable rate. 57
  • 58. THE MEDIA NEWSPAPERS Markets In the majority of cases, newspapers are published individually by state, there are however several titles (e.g. The Australian, Financial Review) that have full national coverage. Classifications Newspapers are generally classified by their coverage area. The main classifications include the following: National newspapers - paid for and available nationally (e.g. Financial Review) Metropolitan newspapers - paid for and available in each capital city (some coverage in regional areas e.g.. Sydney Morning Herald Surburban newspapers - free circulating and set up for each individual suburbs/areas e.g.. Wentworth Courier for Sydney’s East Regional newspapers - paid for and available in country areas e.g.. Newcastle Herald Street newspapers - usually music/gay publications available free of charge Ethnic newspapers - written in their language, relevant for specific ethnic groups Sections Each newspaper has its own individual sections, for example: business, sport, entertainment, holidays, real estate, classifieds. Dimensions Standards formats include Full Page, Double Page Spread, Half Page, Third Page, Quarter page. However the dimensions are specific and based on the amount of square column centimeters. i.e. height (in centimeters) multiplied by width (in columns). Therefore the common measurement for a full page may be 38cm x 7 columns or 56cm x 10 columns (depending on the specific title and whether it is tabloid or broadsheet in format). There are restrictions on the dimensions unique to each publisher, therefore reviewing the website and rate cards will provide the detail. Placement can be general run of paper, a specific page placement, consecutive pages, specific section placement. 58
  • 59. THE MEDIA NEWSPAPERS Rates Rate cards for many publishers can be found on their websites. Rates will depend on the size dimensions, colour requirements and placement of the advertisement. The volume of spend in a publication will influence the level of discount applied. To establish the cost from a rate card you calculate the square centrimetres (i.e. 38cm x 7 col = 266 cm2) multiply by the rate (ie. $45.00). The total cost of this full page would then be $11,970 (266 x $45). If a 10% loading was applied for a specific placement then the cost would increase to $13,167. Generally a request to have a specific placement will attract a loading. Buying Considerations Once the newspaper title(s) have been selected, based on its performance of reaching the target market for the campaign, its costs and efficiency and environmental compatibility, activity is bought by specifying the date of publication, size of the advertisement, colour requirements, placement requirements and applicable rate. 59
  • 60. THE MEDIA OUTDOOR Markets Outdoor is available nationally, covering both external and internal environments. It is more predominant in metropolitan areas. Most outdoor advertising is regulated through planning controls administered by local councils . Classifications/Dimensions Static Large format Supersites (12.66m x 3.35m) Spectaculars (>supersites) Posters 6 sheet (3m x 1.5m) 24 sheet (6.1m x 3.1m) Transit Buses (external and internal panels) Railways (includes station wraps) Trams (external and internal panels) Taxis (top and back) Internal airports Street Furniture* Bus and tram shelters Kiosks Seating Phone booths Internal/external shopping centres Street signs Illuminated street poles Mobile Trucks Scooters *Includes scrolling panels 60
  • 61. THE MEDIA OUTDOOR Rates Costs are based on individual rates per site or number of sites in campaign over a given period. Street furniture campaigns can be sold on 1-2 week turnaround, while other formats generally operate on a minimum of a month. Larger volumes generate rate incentives. Premium rates for premium positions Buying Considerations Choose sites or routes that best reach target. Many sites are bought as a package based on whether the campaign requires a low, medium or heavy weight campaign. Depending on the weight required, a recommendation for how many sites/panels is provided by the supplier. The number of sites required are then usually booked in blocks of a month, this can vary depending on the site location and variations are negotiable. 61
  • 62. THE MEDIA CINEMA Markets Val Morgan manages around 97% of all advertising for cinema complexes across Australia in metro and regional markets and the remaining 3% is copntrolled by Moonlight Cinema Creative options Slide or Film, 15 seconds, 30 seconds, 45 seconds, 60 seconds, 90 second, 120 second spots. Longer length commercials are preferred on cinema and options outside of these standard sizes may be considered. Placement can include pre movie screening, in foyer screens. Rates Rates are based on the total number of screens, commercial length and package type (I.e. by target, by film, by location). Buying Considerations There are 3 main buying options for cinema. By Target Where movies are selected based on the variety of criteria for a movie title (i.e. film rating, film genre and anticipated audience (by key demographics) along with screening preferences By Film Where an individual movie can be selected where creative commonality or synergy exists between the product advertised and a particular movie. By Location Where cinemas can be targeted by specific location As movies are released on Thursday, all activity is scheduled for a week commencing Thursday. 62
  • 63. THE MEDIA ONLINE Markets Global, National, State or postcode levels are all possible and market selection is influenced by tactics used. Types of Sites Portals “One stop shop” sites designed to fulfil all the needs of the user thereby keeping them within the site. Portals include sites such as ninemsn.com.au, yahoo.com.au, bigpond.com.au Search Engines Sites dedicated to assisting a user find what they’re looking for online. Search sites include Google, Yahoo!, MSN Search Content Sites Sites specialising in a certain category e.g. news, travel, sport Can be very targeted for special interest Electronic Direct Mail Permission email data bases that users subscribe to or opt in to receive offers from marketers. Placement Homepages > the entry page of a site Sponsorships > advertiser owns a particular site or section, branding throughout Targeted buys > advertiser buys a specific demographic (only available within sites that have a registration process) Run of Site/Sections > advertiser runs randomly across entire site Run of network > advertiser runs randomly across entire network e.g. Fairfax Digital or NineMSN Buyouts > advertiser buys all the inventory available on a site or homepage for a ` specific period Email list rental > buying application to send a message to people on a list 63
  • 64. THE MEDIA ONLINE Creative options and lengths Standard ad units Gif or flash format ad units in a variety of sizes, with the most common sizes being: Banner – 468 x 60 pixels Leaderboard – 728 x 90 pixels Medium rectangle – 300 x 250 pixels Skyscraper – 160or120 x 600 pixels Rich media ad units. More complex and impactful executions that usually involve interactivity on audio or video. Examples are : Over the page ads ad unit that expand on roll over ad units that are synchronised Streaming video or games within creative Video ads appearing before or after publisher content Advertorial Ads in editorial format comprising a small image (usually a logo) and a limited amount of text Text links As the name suggest, usually up to 7 or 8 words in the form of a hyperlink through to an advertiser’s site Integrated Content Advertiser content hosted on a publisher’s site Search Paid Listings Sponsored links in search listings whereby advertisers buy specific keywords that they want their advertising to appear against. The advertiser only pays when a user clicks on their sponsored link Planning considerations Need to consider what the target does online, consider total audience of site and demographic breakdown, appropriate content environments to fit product /message and overall media strategy Buying considerations Generally purchased on either CPM (cost per thousand ad exposures), CPC (cost per click) or CPA (cost per action) basis. 64
  • 65. THE MEDIA AMBIENT Ambient Media can provide a whole range of existing and new ways of promoting products and services. Some of examples of ambient media are listed below however new innovations are constantly evolving. • Blimps • Sky Writing • Airport Shuttles • Paper Cups • Train Tickets • Floor Advertising • Airplane banners • Coasters • Bin Ads • Building wraps • Receipts • Stickers 65
  • 66. Chapter Six Marketplace Overview 66
  • 67. MARKETPLACE OVERVIEW AN OVERVIEW There is a vast array of resources available to assist in understanding the Australian Media landscape. This information is widely used and analysed by Media Agencies to help gain knowledge and uncover insight into the following areas (as a minimum):- – Understand potentials for a region or media market – Profiling a region or media market – Identifying patterns of change over a period of time – Forecasting change – Understanding what the advertising demand is and where it is coming from – General media performance compared to other media sectors – Overlaying media performance with costs to justify rate increases There are many questions that need to be asked and answered in the planning process and some of these basic facts about our market and the media are vital. The following pages provide a snapshot of just some of the data used to help answer these questions. 67
  • 68. MARKETPLACE OVERVIEW AUSTRALIAN FACTS – Language: English – Population: 20.2 million individuals – Area: 7,682,300 sq. km – Capital city: Canberra – Population density: 2.6 per sq. km – Households: 7.6 million – Income - The average Australian worker earns $48,287 per annum – Religions: Anglican 22%, Catholic 27%, Other Christian 22%,Other Religions 3.5%, No religion 17%, Not reported 9% – Unemployment Level: February 2005 – 5.1% – Inflation: February 2005 2.6% – GDP: $716bn (Aust$) – Population by Age Age Group Total Male Female 000's % 000's % 000's % 0-14 4,000 20.2% 2,000 20.4% 2,000 20.0% 14-17 1,063 5.4% 544 5.6% 519 5.2% 18-24 1,934 9.8% 982 10.0% 952 9.5% 25-34 2,896 14.6% 1,446 14.8% 1,450 14.5% 35-49 4,314 21.8% 2,152 22.0% 2,162 21.6% 50-64 3,406 17.2% 1,610 16.4% 1,796 18.0% 65+ 2,183 11.0% 1,060 10.8% 1,123 11.2% Total 19,796 100.0% 9,794 100.0% 10,002 100.0% – Population by State • New South Wales 33% • Victoria 25% • Queensland 18% • Western Australia 10% • South Australia 8% • Tasmania 3% • Australian Capital Territory 2% • Northern Territory 1% Source: ABS 68
  • 69. MARKETPLACE OVERVIEW ADVERTISING EXPENDITURE CEASA provides a rich database of advertising expenditure in Australia across all major media platforms and the following charts are just a snapshot of some of the information available. ADVERTISING EXPENDITURE IN MAIN MEDIA 2005 FOR THE TWELVE MONTHS ENDING 31 DECEMBER 2005 (Excluding Directories) TOTAL Share of MEDIUM ($000) Expenditure TOTAL NEWSPAPERS 3,789,714 38% TOTAL MAGAZINES 727,380 7% TOTAL PRINT MEDIA 4,767,659 47% TOTAL TELEVISION 3,376,102 33% TOTAL RADIO 897,515 9% TOTAL ONLINE 620,000 6% TOTAL OUTDOOR 353,772 4% CINEMA 83,595 1% GRAND TOTAL 10,098,643 100% ADVERTISING EXPENDITURE IN MAIN MEDIA 1995-2005 (Excluding Directories & Online) 000’s + 60% $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 * 95 96 97 98 99 00 01 02 03 04 05 19 19 19 19 19 20 20 20 20 20 20 Source: CEASA 2005 69
  • 70. MARKETPLACE OVERVIEW ADVERTISING EXPENDITURE ADVERTISING EXPENDITURE IN MAIN MEDIA 2000-2005 By Media Share % Share of Total 2000 2001 2002 2003 2004 2005 TOTAL NEWSPAPERS 42.1 42.2 40.5 40.6 40.0 40.0 TOTAL MAGAZINES 7.6 7.6 7.5 7.4 7.4 7.7 Business/Rural Pub lications 2.9 2.8 3.0 2.7 2.6 2.6 TELEVISION 34.5 33.5 35.4 35.8 36.2 35.6 RADIO 8.6 9.4 9.3 9.0 9.3 9.5 OUTDOOR & TRANS. 3.5 3.7 3.5 3.6 3.6 3.7 CINEMA 0.9 0.9 0.8 0.8 0.8 0.9 TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 Excluding Directories/Online Source: CEASA 2005 70
  • 71. MARKETPLACE OVERVIEW ADVERTISING EXPENDITURE Top 10 Category Sectors – 2005 (main media) Category Sector Estimated Spend $Million 1. Retail $1,819 2. Motor Vehicles $971 3. Entertainment & Leisure $663 4. Finance $469 5. Real Estate $431 6. Food $411 7. Travel/Accommodation $366 8. Communications $333 9. Recruitment $331 10. Toiletries/Cosmetics $222 Top 20 Advertiser Groups/Advertisers – 2005 (main media) Advertiser Group/Advertiser Estimated Spend $Mil. 1. Coles Myer Limited $190-195 2. Government Commonwealth $125-130 3. Nestle Australia/L'Oreal $100-105 4. Harvey Holdings Ltd $ 95-100 5. Woolworths Limited $ 85- 95 6. Telstra Corp Limited $ 80- 85 7. Procter & Gamble Aust P/L $ 75- 80 8. Toyota Motor Corporation Australia Ltd $ 70- 75 9. General Motors Holden Auto Ltd $ 65- 70 10. Victorian Government $ 60- 65 11. Government NSW $ 60- 65 12. Village Time Warner Group $ 60- 65 13. News Corporation Limited $ 55- 60 14. Ford Motor Company Group $ 55- 60 15. SingTel Group $ 55- 60 16. Unilever Australia $ 50- 55 17. Qld Government $ 50- 55 18. McDonalds Family Restaurants $ 50- 55 19. Mitsubishi Motors Aust Ltd $ 50- 55 20. Astre Automotive Group $ 45- 50 Source: Nielsen Media Research AdEx, June 2006 71
  • 72. MARKETPLACE OVERVIEW MEDIA FACTS TELEVISION – Number of TV households 7,365,000 – Terrestrial TV penetration: 99% – Cable/Satellite penetration: 25.9% – Digital TV penetration: .8% – Number of stations by type: • Commercial – 4 • Government & Community - 2 • Pay TV - 120 – Minimum spot length: 5 sec – Maximum spot length: 180 sec – Advertising minutage: 13 mins per hour (excluding station promotion) – 25.9% of the population subscribe to Pay TV – People watch on average 22 hours of television per week RADIO – 261 commercial radio stations – 257 currently operating – AM – 106 licences, FM – 151 licences (plus some remote on other frequencies) – Regional – 217, Metro – 39 – Main networks: Austereo, ARN, DMG, Southern Cross – 37 million radio sets in Australia – 99% of cars in Australia have a radio – all homes in Australia have at least one radio with 89% having three or more – Australian listen to an average number of 2.3 radio stations – People spend a weekly average of 18 hours and 32 minutes listening to radio – 52% of listening takes place at home, 24% in the car, 21% at work and 2% other MAGAZINE – 227.1 Million sales of audited magazines totalled – An average of 13.6 magazines purchased for every person over 14 years (only on audited titles) – Estimated 4500 magazine titles – Consumers spend an estimated $1.03 billion on consumer magazines – Of the 154 national consumer magazines audited by the ABC, only 25 have an average issue circulation of over 100,000 which represent around 69% of the market – Around 90 percent of magazine sales in Australia are made at the retail outlets (newsagent, supermarket and other retail) rather than through subscription. Source: Free TV, Commercial Radio Australia, Magazine Publishers of Australia 72
  • 73. MARKETPLACE OVERVIEW MEDIA FACTS NEWSPAPERS – 397 newspapers in Australia - 2 National dailies - 10 Metropolitan Dailies - 10 Metropolitan Sundays - 132 Regional titles - 243 Suburban titles – Estimate over $21million is spent on National Metro newspapers in a week OUTDOOR – Key formats • Posters • Street Furniture • Sport Stadiums • Transport • Ambient media CINEMA – Total admissions 2004: 98.7 million – Box Office Sales 2004: $ 907million – Number of cinemas: 1,907 – Number of cinemas by type: • Multiplex: 185 complexes have 4+ screens – Average ticket price: $9.92 (2004) – With an average of 5 visits per capita per annum, Australia is one of the most prolific cinema going nations in the world, in second position after the USA ONLINE – Active online penetration grew 7.% in 12 months to 11.5 Australians – Active internet population grown by 33% in 4 years – In one month (June 200) the average Australian visited 1244 pages online – Average page duration 52 seconds – Average monthly time online has grown by 88% in 4 years – Average no. of min spent online per day: 18:04:59 (Hr:Min:Sec) – Average percentage of user accessing the internet daily: 35% – 75% of all home users have Broadband access (7.4million) – Online penetrations • Work – 20% • Home – 50% Source: Val Morgan, Nielsen//NetRatings 73
  • 74. Appendix Media Terminology Industry References MFA Trainee Program 74
  • 75. APPENDIX TERMINOLOGY In the Advertising Media industry, many terms are used that are largely unique to the industry. Whether you are a marketer, media representative, advertising agency or advertising media agency, regular dialogue using such terms are applied as common practice. The following pages identify the most commonly used terms however a comprehensive glossary of terms can be found on the MFA website at www.mediafederation.org.au/gloss 75
  • 76. APPENDIX TERMINOLOGY ABBREVIATIONS R&F Reach and Frequency TVC Television commercial FPC Full Page Colour HPC Half Page Colour DPS Double Page Spread IFC Inside Front Cover ROS Run on station placement (spots placed at random) RPC Readers per Copy BDI Brand Development Index. Brand performance (sales) in a given market relative to the share of the total population living in that market ) CDI Category Development Index (category performance (sales) in a given market relative to the share of the total population living in that market AVERAGE FREQUENCY The average number of times an audience is potentially exposed to an advertising message over a given period. Eg. Over a week a campaign may run 48 commercial spots on television, however against a target audience of People 13-17 the commercial may only be seen 4 times CIRCULATION The average number of copies of a newspaper or magazine title that are purchased. This information is used to evaluate publications and identify the performance of each title based on the purchase sales of the title. Eg. Over the 6 month period to June 2005, the Australian Women’s Weekly sold an average of 640,136 copies in Australia for each issue. COST PER THOUSAND (CPM) Method for primarily comparing the cost efficiency of different print titles, relative to a specific audience. Formula = $/000’s. Eg. The cost a full page insertion in Newspaper ‘A’ might be $25,000 and it has a total of 220,000 People 30-44 that read the newspaper, the CPM would therefore be $113.63 ($25,000 divided by 220). Newspaper ‘B’ might cost $17,500 and has a total of 302,000 People 30-44 that read the newspaper, the CPM for this newspaper would be $577.94 making it a more cost efficient choice. 76
  • 77. APPENDIX TERMINOLOGY COST PER TARP (CPT) Way of comparing the cost efficiency of different Television programs, relative to a specific audience. Formula = $/TARP Eg. The cost for a 30 second spot in program ‘A’ might be $12,800 and its performance against Men 16-24 might deliver a TARP of 8 . The CPT would then be $1,600 ($12,800 divided by 8). Another spot placed in program ‘B’ might cost $17,209 but has a TARP of 15, which results in a CPT of $1,147. In this example program ‘B’ is more cost efficient DAYPART Refers to a selected time zone on television. Key dayparts are: Peak (or Prime time): Sunday - Saturday 1800 – 2230 Off Peak: Any time outside of peak Women’s Daytime: Monday – Friday 11am – 3pm (can vary by station) Fringe: Sunday – Saturday 1700-1600 Late Night” Sunday – Saturday 10.30pm – 11.30pm EFFECTIVE FREQUENCY The number of times the target audience needs to be exposed to a commercial in order for them to understand and remember the message. The planner will determine the most appropriate number of times an audience might need to see/hear/read the advertisement in order to generate the appropriate response. E.g.. First exposure might inspire a response of ‘What is it’, the second exposure might be ‘What is it about?” and the third exposure might generate a response of ‘I know that, so I will……” NET REACH The number of different individuals exposed to an advertising message at least once within a given period of time. Net reach is usually expressed as a percentage. A Net Reach figure is developed by the planner to help identify the level of reach that is needed to generate the desired response to the advertising. Eg. A combination of placing a 30 second commercial in 10 different television programs across the week might deliver a reach of 60% to Women 18-39 (hypothetical example only). You may have a total campaign that is aimed to deliver an 85% reach to your target audience so more spots will need to placed in other programs to build this reach) 77
  • 78. APPENDIX TERMINOLOGY POTENTIAL AUDIENCE The total number of people within a demographic group / market. Eg. If the total population for Women 18-39 in Sydney is 901,000, the potential audience is also 901,000. READERSHIP The average number of people that read an issue of a newspaper or magazine title. As this data gives more information about the type of consumer that reads a title, this assists in the planning process also to identify the performance of each title relative to the audience. Eg. Over the 12 month period to June 2005, on an average per issue the Australian Women’s Weekly was read by 2,915,000 people. ROAD BLOCKING Refers to the practice of placing an advertisement on each available commercial television station within a market, to appear at exactly (or near as possible) the same time. Road blocking is most often used as a means of building high reach levels within a short period of time. SESSION Refers to a selected time zone on radio. For example Breakfast 0530-0900 Morning 0900-1200 Afternoon 1200-1600 Drive 1600-1900 Evening 1900-2400 Midnight-Dawn 2400-0530 SPONSORSHIP When a premium is paid to receive additional exposure with areas such as open and close billboards/credits, positioning in commercial breaks as an example SPOT This term is used to explain a commercial unit placed on television or radio. You may refer to a spot being placed in the Sunday News on Channel 7 or a spot placed during the Breakfast session on 2UE. It may vary in size as you can commonly book space for 15 second, 30 seconds, 60 seconds, 90 seconds 78
  • 79. APPENDIX TERMINOLOGY TARGET AUDIENCE Is the term used to describe groups in the community selected as being the most appropriate (eg. primary purchasers, users, or influencers) for a particular advertising campaign. The target audience may be defined in demographic or psychographic terms, or a combination of both TARPS Abbreviation for 'Target Audience Rating Point'. Measures a specific demographic audience of a station for a specified point of period in time, expressed as a percentage of the potential audience. Tarps are the common currency for buying television and each program is evaluated on its performance to reach a certain target group, this evaluation then helps the buyer to decide where to schedule their spots. Eg. If a television program has a TARP of 15 for Women aged 18-39, this means that an average of 15% of all Women 18-39 watched that program. TOP AND TAIL When a television commercial is placed at the beginning of the commercial break and at the end of the same break. Please again refer to the MFA website for more terms. 79
  • 80. APPENDIX MFA TRAINEE PROGRAM Every year, the MFA conducts a Trainee Program for graduates and this program offers a three month paid working experience with an Advertising Media company. Each year between 90-100% of these trainees are placed in permanent positions. During the three month period the MFA provided extensive training including an Introduction to the Industry along with specific subjects such as media research. The trainees are taken on many tours to see how each of the media organisations function. Applications open each year in October with placements being made in the following January. For more information about the MFA Trainee Program, please visit our website and download the student manual at www.mediafederation.org.au. 80
  • 81. APPENDIX INDUSTRY WEBSITES INDUSTRY ASSOCIATIONS www.advertisingstandardsbureau.com.au Advertising Standards Bureau www.aba.gov.au Australian Broadcasting Authority www.afa.org.au Advertising Federation of Australia www.aimia.com.au Australian Interactive Media Industry Association www.aana.com.au Australian Association of National Advertisers www.astra.org.au Australian Subscription Television and Radio Association www.commercialradio.com.au Commercial Radio Australia (CRA) www.dba.org.au Digital Broadcasting Australia www.freetvaust.com.au Free Television Australia www.iab.net Interactive Advertising Bureau www.magazines.org.au Magazine Publishers of Australia www.mediafederation.org.au Media Federation of Australia www.regionaltvmarketing.com.au Regional TV Marketing www.oma.org.au Outdoor Media Association RESEACH COMPANIES www.abs.gov.au Australian Bureau of Statistics www.agbnielsen.net AGB Nielsen www.auditbureau.org.au Audit Bureau of Circulations www.ceasa.com.au Commercial and Economic Advisory Service of Australia www.nielsenmedia.com.au Nielsen Media Research www.nielsen-netratings.com Nielsen//NetRatings www.oztam.com.au OzTam www.roymorgan.com.au Roy Morgan Research TRADE PRESS www.adnews.com.au Adnews www.bandt.com.au B&T 81
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