This document discusses various strategies for selecting advertising media and vehicles. It covers different types of static media like magazines, newspapers and outdoor signage, as well as dynamic media such as radio, television and the internet. For each media type, the advantages and disadvantages are outlined. The document also discusses strategies for audience estimation, developing media schedules, balancing reach and frequency, and concentrating vs continuing advertising spend. It introduces the 4M framework for developing a media plan to allow competitive dominance in a category. Finally, common rules of thumb for determining advertising budget sizes are presented.

1. 4/21/2013
What media do I advertise in?
Should I
Advertise?
AD 442
Advertising Management
Was It
Effective?
Who Do I
Target?
Boğaziçi University, Spring 2012/13
Media Strategy
How Do I Use
Creative?
How Do I Use
Insight?
Hüseyin S. Karaca
How Do I
Select Media?
How Do I
Position?
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Static Media
Magazines
Static Media
Newspapers
• Advantages
• Advantages
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Reach target efficiently
High level of reader involvement
Exceptional catalog value
Good quality color reproductions
• Disadvantages
• Disadvantages
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Reaches a large number of people within a geographic area
Self paced; can transmit a lot of info
Exposure is not limited, reader can refer back to ad
Can tailor message to community
Quick turnaround can reflect changing market conditions
Fairly cluttered
Long lead times to market
More costly than newspaper ads
Readership declining
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A lot of clutter
Short shelf life
Difficult to target specific groups
Poor reproduction quality
High visibility to competitors
Readership declining
Static Media
Outdoor Signage / Transit
Dynamic Media
Radio
• Advantages
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• Advantages
– Broad reach, many will see it repeatedly
– Very good for reminding consumers of well-known
products
– Especially effective at enhancing brands when used
in conjunction with other mediums
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Wide range of programming allows for efficient targeting
Listener loyalty allows advertiser to build frequency
Can reach consumers when they are decisional
Allows for quick reaction to market conditions
Low cost
• Disadvantages
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• Disadvantages
– Difficult to convey substantial info
– Hard to measure effectiveness
– Difficult to refresh content
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Low market share per station, may need several stations
Difficult to build coverage of a target
Lower recall than television; more clutter by comparison
Inattention (become background noise)
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Dynamic Media
Television
Interactive Media
Internet
• Advantages
• Advantages
– Can reach a lot of people quickly and frequently
– Multisensory; opportunity to convey personality of a
brand
– Can target at the national or regional level
• Disadvantages
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Broad range with ability to narrow targeting
Rapid growth in user base
Higher conversion rates and ability to track them
Can be low cost
• Disadvantages
No catalog value
Substantial number of commercials affect recall
Difficult to achieve broad reach of population
Expensive to create and to update
– Costs contingent on number of clicks in many cases
– Increasing amounts of clutter
– Obtrusiveness of ads
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Strategies for selecting advertising media
Strategies for selecting advertising vehicle
• Selection is based on:
• Once a decision has been made with regard to
advertising media, vehicles are selected
– Marketing mix
• Product
• Distribution
• Pricing
• An advertising vehicle is an intra-medium concept
describing the choice within a specific medium
– Vehicles that are highly efficient in exposing the target to
advertising are preferred
– Size of the ad budget
– Legal restraints
– Consumers’ behavior
• In selecting a vehicle, the hope is that appropriate
choices will ensure brand awareness or brand preference
– But these outcomes are not for sale
– Up for sale is the number of people exposed to the medium in
which advertising is placed
• Rule out media that do not meet one or more
criteria and then assess the virtues of those
media that remain
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Audience estimation for print
Audience estimation for television
• One way to estimate is to use the circulation data
• Syndicated services provide audience estimates for TV programs
• Assessing advertising requires an audience measure
– Refers to the number of people exposed to a vehicle
– Estimated through surveys utilizing a representative sample
of consumers
• Critical measure in assessing vehicle alternatives is
effective audience
– Refers to the number of people exposed to a medium who
have the target demographic and geographic characteristics
– The attempt is to find vehicles that disproportionately reach
people with the same profile as those in the target
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– A representative sample of homes from around the country are
recruited
– An electronic device is placed in each home attached to the
occupant’s TV set to keep track of whether the TV set is on or off
and the channel to which it is tuned
• Measures collected (in addition to demographics data)
– Share of audience: percent of houses using TV tuned to a particular
program
– Rating: percent of all homes tuned to a particular program
• Advertisers are more interested in the rating for a particular
target or segment of the population
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Media scheduling
Reach vs. Frequency
• Most schedules involve multiple insertions in a particular vehicle
and insertions in several vehicles
• Advertisers have long debated the tradeoff between reach and
frequency
• Concepts needed in developing a media schedule
• The number of exposures that make people decisional is an
empirical question and varies by both brand and category
– Reach: total number of unique people or households that will be
exposed to a schedule at least once over a specified period of time
(usually four weeks)
– Average frequency: average number of times a person or household
is exposed to a schedule
– Gross Audience (print) = ∑(insertions x audience)
– Reach = Gross Audience – Duplication
– Average Frequency = Gross Audience / Reach
– Gross Rating Points (broadcast) = ∑(insertions x ratings)
• The preferred number during the 70s and 80s was at least three
exposures
• In the late 90s, a new rule of thumb emerged based on research
– A single exposure to an ad is the appropriate level of frequency
– Shown to work for major brands in their category
• Select a schedule that delivers the desired reach and average
frequency with minimum variance about the average frequency
• There is considerable evidence to indicate that in most cases
some repetition of advertising enhances consumers’ responses
Concentration vs. Continuity
Flighting vs. Pulsing
• Ad budget is allocated to reach, frequency, and continuity
• Due to the rise in the cost of media, two approaches became common
– Reach and frequency are used to decide where advertising is
placed in a particular month
– Continuity vs. concentration address when to spend the ad
budget over the year
– Flighting: advertising for some period, followed by a hiatus with no
advertising and then by a second flight
– Pulsing: entails the same general approach as flighting, except that low
levels of advertising replace the hiatuses
– Delivers the impact of concentration with the sustaining value of continuity
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• Continuity involves spending the ad budget relatively
evenly throughout the year
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• An important issue is how to space repeated exposures
• Concentration is a strategy where advertising dollars are
spent during a single period
• Historically, concentration strategy is used for seasonal
products and continuity for otherwise
– Long inter-exposure intervals increase the perception of ad unfamiliarity
– But there comes a point where each exposure acts like an initial exposure
• There are times when it is important to concentrate advertising (e.g.,
introducing a new product, reducing inventory at the end of a season)
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Strategies for dominance
The 4M Framework
How much should a firm spend on advertising?
Rules of thumb
• Make media choices that enhance the likelihood that
advertising will be noticed and used as a basis for choice
• Percent of sales
• Four factors (4M) should be examined in developing a
media plan that allows competitive dominance
– Matching: Reach the people in the target and no one else
– Monopoly: Reach people when/where no one else is reaching
them
– Mindset: Reach people by associating with people, objects
and issues that are important to them
– Moment: Reach people when they are likely to be decisional
about the category
– Estimate the sales for the next year and multiply
that number by some percent of sales
• Competitive emulation
– Track competitors’ ad spending and emulate in
terms of the absolute advertising expenditure or
some percent of competitive expenditure
• All you can afford
– Calculate all the marketing costs and then allocate
what remains to advertising
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