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Media planning


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Media planning

  1. 1. Media Planning & Buying<br />An Indian Perspective<br />
  2. 2. Communication is the key to marketing and media is the key to communication<br />What drives media choices<br />Reach<br />Cost Effectiveness<br />Relevance<br />Making the right choices<br />Reach<br />Frequency<br />Reach * Frequency<br />Media Classes<br />Static<br />Broadcast<br />New Media<br />Media<br />As a vehicle<br />As the medium<br />As the message<br />An overview of how a media agency functions <br />A Quick Recap<br />
  3. 3. The Agenda This Semester:<br />Roles within a media agency<br />Media Basics<br />Media Strategy<br />TG Definition<br />Market Prioritization<br />Setting Media Weights<br />Media Mix Decision<br />Scheduling<br />Building a Media Plan<br />
  4. 4. So what exactly is media planning??<br />A series ofdecisions <br />Which conclude with a strategy which will help a brand<br />Deliver it’s communication in the most efficient manner<br />to the right set of audiences<br />Using the most appropriate media options in the best possible manner<br />
  5. 5. The Agenda This Semester:<br />Roles within a media agency<br />Media Basics<br />Media Strategy<br />TG Definition<br />Market Prioritization<br />Setting Media Weights<br />Media Mix Decision<br />Scheduling<br />Building a Media Plan<br />
  6. 6. Roles within a media agency<br />If everyone is moving forward together, then success takes care of itself<br />
  7. 7. The following specialists form a team:<br />Strategic Media Planners<br />Implementation Planners<br />Media Research<br />Media Buyers<br />Consolidation & Benchmarking<br />Interactive Cell (Mobile, Internet etc)<br />Out of Home (OOH) – Can also be a separate agency by itself<br />Activation (Events / Retail/ On-ground)<br />Entertainment (Program syndication, Films)<br />Monitoring<br />Operations / Implementation<br />Billing & Collections<br />
  8. 8. The Agenda This Semester:<br />Roles within a media agency<br />Media Basics<br />Media Strategy<br />TG Definition<br />Market Prioritization<br />Setting Media Weights<br />Media Mix Decision<br />Scheduling<br />Building a Media Plan<br />
  9. 9. Media Basics<br />TVR<br />GRP<br />Frequency<br />TRP<br />Reach<br />TAM<br />IRS<br />ADEX<br />A journey of a thousand miles must being with a single step – Lao Tzu<br />
  10. 10. Reach<br />% of people exposed to a particular vehicle at least once in the period under consideration<br />Unduplicated Measure<br /><ul><li>Eg. Times of India Reach in Mumbai – 45%</li></ul> Mid-Day (Mumbai) – 25%<br /><ul><li>Reach in Mumbai?</li></li></ul><li>Remember: Reach is unduplicated<br />P(A U B) is P(A)+P(B) – P(A Π B)<br /><ul><li> Combined Reach will not be a straight mathematical addition of 45% + 25%
  11. 11. We need to discount all people who read both Times of India as well as Mid-</li></ul> Day (to use a media term: the duplicated audience)<br /><ul><li> Easier to understand with Set theory:</li></ul>Mid-Day (25%)<br />Duplication (10%)<br />TOI (45%)<br />Reach in Mumbai is therefore 60%<br />Duplication with those who read both<br />
  12. 12. Remember: Reach is unduplicated<br />P(A)+P(B)+P(C)-P(AB)-P(AC)-P(BC)+P(AΠB ΠC)<br /><ul><li> Lets take it a step further. Let’s add one more publication (Economic Times)</li></ul>Mid-Day (25%)<br />Duplication (10%)<br />TOI (45%)<br />Duplication (2%)<br />Duplication (1%)<br />ET<br />(10%)<br />Reach in Mumbai is therefore 67%<br />
  13. 13. Cumulative Reach<br />Reach accumulates across media vehicles or a period of time or across different issues of the same vehicle<br />Cumulates quickly in the initial stages but the build-up starts plateauing once we have already reached the heavy & medium users <br />This means we need to start adding light users to build reach<br />Not an impossible task but an extremely expensive one<br />Incremental Publications<br />2nd Publication<br />Market Leader<br />
  14. 14. Frequency Distribution<br />In a campaign the ad. is exposed a number of times<br />Which results in the reach build up<br />However all people in the audience are not exposed uniformly<br />Most likely that heavy viewers see the ad. more often while light viewers might not see it at all<br />This spread is called frequency distribution<br />
  15. 15. Frequency Distribution<br />Reach<br />Of the 100 People who form the audience 26 have not seen the campaign (f=0)<br />They are said to have not been ‘reached’ by the campaign<br />Reach of this campaign would be 74% (∑f1-f10) <br />
  16. 16. Discreet & Cum. Distribution<br />No. of people who saw the ad exactly once, twice, thrice etc. (Discreet Reach)<br />Adding up the people who saw the ad atleast once, twice, thrice or more (Reach thus obtained is designated as ‘1+ Reach’)<br />If we leave out people who saw the ad. exactly once and plot everyone else it would be ‘2+ Reach’<br />Difference between discrete and cum distribution is:<br />Seeing the ad. exactly a certain no. of times (Discreet)<br />Atleast a certain number of times (Cum distribution) <br />
  17. 17. Discreet Distribution<br />Cum. Distribution<br />∑ = 1+ = 78%<br />∑-(1)=2+= 62%<br />∑-(1)-(2)=3+= 49%<br />
  18. 18. Average OTS (Opportunity To See)<br />Average number of exposures amongst those who have been reached<br />A derived number hence can be in decimals<br />Calculated as the weighted average of the frequency distribution<br />
  19. 19. Frequency Distribution<br />Average OTS = (1*19)+(2*14)+(3*12)+(4*9)+(5*7)+(6*4)+(7*4)+(8*3)+(9*1)+(10*1)<br /> 19+14+12+9+7+4+4+3+1+1<br />= 3.36<br />On an average people reached would have seen the ad. 3.36 times<br />
  20. 20. Effective Frequency / Reach<br />Effective Frequency = The minimum no. of times the TA needs to be exposed to our communication to have the desired effect<br />Assume that minimum no. is 4 times <br /> (Various studies have thrown different results as ideal)<br />We would then look at reach only at 4+ (discarding people who have viewed the communication less than 4 times) thus arriving at Effective Reach<br />
  21. 21. Effective Frequency-4<br />Effective Reach at 4+<br />
  22. 22. So what is the ideal effective frequency??<br />Extensive research carried out in the area<br />Herbert Krugman<br />Erwin Ephron<br />Gerard Tellis<br />One do it yourself method is the FCB Power Grid<br />Based on various input parameters<br />Rankings on marketing, message (creative) and media<br />Overlays inputs on the FCB Grid (High-Low Involvement & Emotion/Rational Product)<br />
  23. 23. So what is the ideal effective frequency??<br />((1*9)+(2*2)+(3*2)+(4*1)+(5*0)+(6*1)+(7*5))/SUM(9+2+2+0+1+1+5)<br />W.Avg. of <br />all scores<br />
  24. 24. TV Metrics<br />
  25. 25. From Diary to Peoplemeter<br />Diary<br />A panel would be given a diary with qtr. hour time-slots across rows and channels across columns<br />Drawback – not recorded but reported behaviour<br />Telescope effect – 1 Shot fill for the wk. <br />Big Shows got bigger, small ones got smaller<br />Replaced by Peoplemeters in 1996<br />2 Units<br />Channel Monitoring device (attached to the TV set)<br />Remote to register viewer details<br />Remote has buttons for each member of the family<br />Data collected is mapped to channel telecast frequency<br />Currently 2 reporting systems in India: TAM & AMAP<br />TAM: 7305 Sample Homes<br />2440 in the 8 Metros<br />
  26. 26. Video<br />
  27. 27. TRP/TVR<br />The move from Diary to Peoplemeter also changed TRPs to TVRs<br />TRP= % of the audience who viewed a certain programme or time-slot<br />Simple headcount<br />TVR=Weighted Number which takes Reach & Time-spent into account<br />
  28. 28. TVR<br />TRP = 4/10*100= 40<br />TVR=(10/30 + 5/30 + 6/30 + 24/30)<br />X100<br />10<br />=15<br />
  29. 29. TVR<br />Better viewing metric however creates some unique situations<br />2 shows both rating the same can have very different viewing patterns<br />Eg. A daily soap may be pulling in a fairly loyal audience which watches almost the entire show (albeit on a smaller base)<br />Alternatively a non-fiction format (like KBC) may have a far larger number of people sampling it for lesser time <br />Taking it a step further this would mean the soap is a great device for brands which need to build frequency<br />The non-fiction show is a better bet for communication which needs to build higher reach than frequency<br />Classical Media Conundrum: Reach Or Frequency <br />
  30. 30. Program Reach & TS (Time-Spent)On the People-meter System<br />Reach = A viewer who watched atleast 1 minute of the program<br />TS = Number of minutes the viewer saw the program<br />2 Ways to look at TS<br />As an average of the total time spent by the universe<br />(10+5+6+24=45)/10<br />Per Viewer<br />45/4=11.25 Minutes<br />
  31. 31. Ad. Viewership<br />Viewership is collected at seconds level<br />However reported data at the minute level<br />Viewership gets attributed to the minute<br />If you were changing channels in the minute under consideration the entire viewership of the minute get attributed to the channel viewed for the maximum seconds in that minute<br /><ul><li>Mr. M’s viewership attributed to NDTV Imagine in that minute</li></li></ul><li>Ad. Viewership (Cont’d)<br />Ad. Viewership too gets reported at the minute level<br />In the case of Mr. M he could have watched a 15 sec. commercial on Colors however his viewership on that will not be counted<br />This is an anomaly which we need to be aware of. <br />Assumption is that such anomalies balance out over the larger base <br />
  32. 32. Benchmarking metrics<br />
  33. 33. Share<br />Competitive benchmarking to understand relative strengths<br />Can be looked at in multiple ways<br />Publications Vs. Competitors in a market<br />Channel’s wkly GRPs Vs. Competition<br />Share of Total viewership in a TB (Channel Share)<br /><ul><li>There might be situations where the share is extremely high on a smaller base. Easy to get mis-guided</li></ul>Base<br />
  34. 34. Profile<br />Spread of audiences across different demographic classes (Age, SEC, Gender, CS/NCS/Analog/Digital, Markets)<br />Helps understand the nature and quality of audiences<br />Base<br />
  35. 35. Plan metrics<br />
  36. 36. GRPs (Gross Rating Points)<br />Duplicated Reach<br />Reach * Frequency<br />∑Plan TVRs<br />Which means GRPs can be garnered by <br />1) Reaching more people<br />2) More exposures to the same base <br />500 GRPs <br />= 50% Reach X 10AOTS<br /> = 25% Reach X 20AOTS<br />= 10% Reach X 50AOTS<br />Reach = indicator of % of TG exposed to our communication<br />GRPs = Sense of the total level of exposure or Weight of the communication <br />
  37. 37. SOVs (Share of Voice)<br />Gives a sense of media weights in a competitive context<br />Share of GRPs for a brand within a particular product category<br />Base is the category GRPs<br />
  38. 38. Print metrics<br />
  39. 39. Circulation<br />Average number of copies of a publication that are sold<br />Distinct from Print Order<br />Reported by ABC in India<br />65000 Publications in the country <br />Less than 400 reported by ABC<br />ABC: Unbiased 3rd Party<br />Reported every 6 months<br />Broken up by towns, districts & states<br />Editionwise<br />Weekdays & Weekends<br />Pitfall:<br /><ul><li>Reports number of copies NOT readers
  40. 40. No readership profile</li></li></ul><li>AIR (Average Issue Readership)<br />People who have read/looked at the publication in the time-span equal to the periodicity of the publication<br />Question asked is:<br />Did you read the Times Of India yesterday?<br />Did you read India Today in the last week?<br />Masthead method is used (IRS)<br />
  41. 41. Total or Claimed Readers<br />Not loyal readers of the publication but have consumed it in the past<br />Have you read Times Of India in the past 6 months?<br />Lower the gap between TR & AIR; more loyal the readership base of the publication<br />TOI Vs. Mid-Day<br />
  42. 42. Sole Or Solus Readers<br />They read only 1 particular publication in that frequency<br />Most dedicated and loyal readers of a publication<br />Claimed<br />AIR<br />Solus<br />Quality<br />Quantity<br />
  43. 43. To Summarize<br />Reach <br />People (Unduplicated) exposed to the vehicle/Ad.atleast once<br />Cum. Reach<br />Buildup of reach across publications/time-periods etc<br />Frequency Distribution<br />Spread of ads. viewed<br />AOTS<br />Average number of exposures of a plan/campaign<br />Weighted Average of the frequency distribution<br />Effective Frequency<br />Minimum number of times the TG needs to see our communication<br />Peoplemeter is recorded viewing vis-à-vis diary which is reported viewing<br />TVR takes Reach and TS into account<br />
  44. 44. To Summarize (Cont’d)<br />Viewership data is captured at seconds level & reported at a minute level<br />Profile is the spread of audiences across different demographic classes<br />Share is a measure of competitive strength<br />GRP is duplicated reach, which gives a sense of weight of exposures<br />GRP is sum of TVRs or Reach X AOTS<br />Circulation is the No. of copies sold not printed<br />AIR is people who have read or looked at the publication in the periodicity of the publication<br />Sole Readers are those who read only that publication in that frequency<br />TR / Claimed readers are those who are not AIR but have read the publication in the past<br />
  45. 45. The Agenda This Semester:<br />Roles within a media agency<br />Media Basics<br />Media Strategy<br />TG Definition<br />Market Prioritization<br />Setting Media Weights<br />Media Mix Decision<br />Scheduling<br />Building a Media Plan<br />
  46. 46. Media strategy<br />Change is not a destination, just as hope is not a strategy – Rudy Giuliani<br />
  47. 47. Need for a strategy<br />It’s a roadmap that helps establish parameters & ground rules<br />Our plans & buys are judged basis these<br />We always have finite resources<br />With unlimited resources we would reach all people, across all markets, via presence across media, through the year with the heaviest media weights !!<br />A media strategy is therefore defined as:<br />A series of compromises we are willing to make in order to achieve the desired objectives within the given (finite) budget<br />
  48. 48. Start at the end !!<br />Critical to set the context<br />Does not exist in isolation<br />Always in the context of a larger advertising or communication objective<br />Communication task is governed by the marketing task/objective for the brand<br />Based on defining the business problem and the attendant market analysis<br />
  49. 49. <ul><li>This is the starting point.</li></ul>Problems of a diverse nature:<br /><ul><li>How to gain share
  50. 50. How to arrest share loss
  51. 51. Deliver higher profits etc.</li></ul>Creative Strategy<br />Brand USP<br />Brand Positioning<br />Copy Theme<br />Specific objective of each Ad.<br />Creative Units<br />Addressing Marketing Issues<br />Marketing Objectives<br />Target Consumer, Markets<br />Pricing & Distribution Strategy<br />Role of A&P<br />Basis for Strategy & Plan<br />Composition of the market – Segments<br />Past performance- Volume, Value, Profits<br />Distribution Network, strenghts<br />Role of advertising<br />Competitive mapping<br />Consumer mapping<br />
  52. 52. Impact of the Marketing task and Communication Goals<br />Product Life Cycle (PLC)<br />At Launch:<br /><ul><li> Key tasks for the brand: </li></ul>1) Establish & increase presence <br />2) Facilitate trials<br /><ul><li> Advertising has the following tasks:</li></ul>Make consumers familiar with the brand (Reach * Frequency)<br />Make the brand visible to trade (Frequency)<br />Activities which allow consumers to touch-feel the brand (Activation)<br />In cases where the product concept is new an educative approach is use (Frequency)<br /><ul><li>For Test Markets Media isolataibility can be a major factor in deciding test and control markets</li></ul>Product Sales<br />Introduction<br />Maturity<br />Decline<br />Growth<br />
  53. 53. Impact of the Marketing task and Communication Goals<br />Product Life Cycle (PLC)<br />Growth Stage:<br /><ul><li> Key tasks for the brand: </li></ul>1) Increase penetration (by inducting new users into category) <br />2) Grow Volumes (by increasing brand usage)<br />3) Increase distribution coverage<br /><ul><li> Advertising has the following tasks:</li></ul>To increase penetration – Focus media activity on non-users and make plans reach intensive<br />To grow volumes – Media activity should focus on frequency<br />Product Sales<br />Introduction<br />Maturity<br />Decline<br />Growth<br />
  54. 54. Impact of the Marketing task and Communication Goals<br />Product Life Cycle (PLC)<br />Mature Market:<br /><ul><li> Key tasks for the brand: </li></ul>Retain share <br /><ul><li>Advertising has the following tasks:</li></ul>Reinforce the brand choice that consumers make<br />Focus on current users and maintain SOV Levels<br />Product Sales<br />Introduction<br />Maturity<br />Decline<br />Growth<br />
  55. 55. Case Study<br />Brand: Clinic Plus<br />Marketing Objective: Maintain Share at X% (Current levels)<br />Problem: Share in the South has been affected due to launch of sachets by Chick Shampoo<br />Communication Task: Run Theme communication across the country. In the South supplement theme communication with Sachet communication<br />Thus a slight change in Mkt Objective <br />leads to the following changes in media strategy:<br /><ul><li> A Different TG (Males, Lower SEC)
  56. 56. Heightened focus on small towns
  57. 57. Changed Media Mix (Now targeting males)
  58. 58. New scheduling pattern (Through the month)</li></ul>Media Input<br /><ul><li>Analysis shows – Sachet used more by lower SECs and smaller towns</li></ul>- no month end/beginning purchase cycle skew<br /><ul><li> In these areas householder (person in the HH who makes decisions about FMCG purchases is Male)
  59. 59. Direct Impact on media mix: Afternoon TB (used normally for F SEC AB) will need to be replaced by programs in night time slots targeting males
  60. 60. Scheduling moves from 1st & last Wk. to across the month in the South</li></li></ul><li>Situation Analysis<br />Usage Study<br />Consumer<br />Product<br />Competitive <br />Review<br />TG Media <br />Habits<br />Media<br />Characteristics of media usage by the TG<br />Usage of media by brand in the past/ Usage of media by competitors in the category<br />Product Consumption Info.<br />
  61. 61. Product Usage<br />Usage Study<br />Consumer<br />Product<br />Retail Off-take Data<br />Database of retail purchases (Obtained by auditing a large number and type of retail stores)<br />Brand and Category Sales data <br />Data Splits available at the following levels:<br />India<br />Urban<br />Rural <br />Town-Class<br />Type of outlet etc.<br />Can be used for:<br />Market share analysis<br />Market contribution<br />Growth &<br />Prioritization<br />Cannot:<br />1) Provide insights into consumer motivation<br />
  62. 62. Product Usage<br />Usage Study<br />Consumer<br />Product<br />Household Panel Data<br />Weekly basis<br />Category & Brand Consumption is tracked<br />Continuous study<br />Which also makes it very expensive<br />Can be used for:<br />Tracking product trials<br />Conversions<br />Retension<br />Awareness<br />Preference<br />Gain-Loss analysis etc<br />
  63. 63. Product Usage<br />Usage Study<br />Consumer<br />Product<br />Brand Tracks<br />Similar to HH Panels<br />Rolling data <br />Focus on:<br />Brand & Ad. awareness<br />Preference<br />Attitudinal statements<br />Tracking brand attributes in the consumers mind<br />Brand equity etc.<br />
  64. 64. Product Usage<br />Usage Study<br />Consumer<br />Product<br />Product Linkage Data<br />Part of the Indian Readership Survey (IRS)<br />Captures <br />Penetration<br />Frequency/intensity of usage/consumption<br />Since IRS already has demographic & lifestyle data possible to cross tab data to create detailed user profiles<br />Useful to define brand TGs<br />
  65. 65. Product Usage<br />Consumer<br />Media<br />TG Media <br />Habits<br />Syndicated databases like IRS, RAM & TAM <br />Help in understanding the consumers interaction with media<br />Kind of analysis possible:<br />Media exposure levels<br />Usage intensity (HML)<br />TS<br />Share of viewing<br />Top publications / channels<br />Day part analysis etc<br />
  66. 66. Product Usage<br />Product<br />Analysis of how the brand & the category have used media in the past<br />Possible since TAM (Adex) monitors activity across TV, Print & 9 Cities for Radio<br />Looks at the following data points & more:<br />Share of spends, time, space etc.<br />SOV<br />Growth in spends & GRPs<br />Ad. duration<br />Size, Color<br />Media Vehicle selection strategy<br />Market skews<br />Reach <br />AOTS<br />Plan deliveries<br />Scheduling strategies<br />Trend analysis etc.<br />Media<br />Competitive <br />Review<br />
  67. 67. Building blocks of a media strategy<br />
  68. 68. 5 Pillars<br />
  69. 69. Quiz time<br />
  70. 70. Calculate the Show Rating(30 Min. Show)<br />23.3<br />40<br />TRP=?<br />TVR=?<br />
  71. 71. GRPs<br />3.6<br />1<br />6.3<br />15.6<br />26.5<br />Plan Output =? GRPs<br />
  72. 72. GRPs = Reach X Frequency<br />350 GRPs & 7.0 Avg. Frequency = ? Reach<br />50%<br />
  73. 73. 80% Reach & 5 Avg. Frequency= ? GRPs<br />400<br />