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How to Develop Media Budgets
This document provides guidance on developing media budgets by analyzing three key areas: the consumer, business objectives, and the competitive marketplace. It recommends identifying the core target consumer and their media consumption habits to focus budgets. Objectives, timing, geography, and retailers' needs should also influence budget allocation. Analyzing competitors' spending, digital strategy, and campaign quality can provide benchmarks for budget setting, as increased share of voice is linked to gaining market share. Both traditional and digital campaigns require quality messaging to drive engagement.
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How to Develop Media Budgets
- 1. 1 How Much? Howto Develop Media Budgets
- 2. 2 TODAYâS SPEAKERS Marlea Clark â˘SVP, Marketing ⢠20 years in Marketing and Publishing Kathleen Jahnke ⢠Associate Media Director ⢠10 years Multi-Channel Media Planning Experience
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- 4. 4 AGENDA CONSUMER ANAL YZ ET HREE KEY AREAS T O DEVEL O P BUDG ET S BUSINESS MARKETPLACE VS.
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- 6. 6 IDENTIFY THE CORETARGET CONSUMER 1. Concentrate your media budgets on reaching the core target consumer 2. Avoid waste on those that will not convert to purchase 3. Niche vs. broad target audiences will require varying budgeting levels A C O N S U M E R - C E N T R I C A P P R O A C H W I L L B E T H E F O U N D AT I O N T O T H E M E D I A P L A N A N D B U D G E T D E V E L O P M E N T P R O C E S S
- 7. 7 CONSUMER PATHWAY ISNON-LINEAR CAMPAIGN QUALITY C O N S U M E R S U S E M U LT I P L E M E D I A S O U R C E S A N D T H E I R AT T E N T I O N I S S C AT T E R E D A C R O S S T H E M
- 8. 8 Source: GfK MRISpring 2014, Women 25-34 with children ANALYZE TARGETâS MEDIA CONSUMPTION MEDIA QUINTILES TA R G E T â S M E D I A U S A G E W I L L I N F O R M M E D I A I N V E S T M E N T S T R AT E G Y INTERNET ACCESS
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- 10. 10 START WITH CLEARLYDEFINED MEDIA OBJECTIVES B U D G E T S C A N VA R Y D E P E N D I N G O N U LT I M AT E G O A L O F T H E C A M PA I G N ; T O G E T T H E M O S T F R O M M E D I A B U D G E T S , A L I G N M E D I A S T R AT E G I E S T O M E D I A O B J E C T I V E S
- 11. 11 CONSIDER RETAILER IMPERATIVES MA N D AT E D R E TA I L E R S U P P O R T C A N D R I V E M E D I A I N V E S T M E N T C H A N N E L S , E S P E C I A L LY F O R I N C R E A S E D I N V E S T M E N T I N N AT I O N A L T V A N D P R I N T
- 12. 12 ESTABLISH KEY TIMING â˘Does the brand need continuous support throughout the year or is there key seasonality? ⢠Media costs can increase based on heavy demand in certain quarters K E Y T I M I N G C A N A F F E C T W E I G H T L E V E L S A N D P R I C I N G
- 13. 13 DEFINE KEY GEOGRAPHICPARAMETERS L O C A L C A M PA I G N S W I L L Y I E L D L O W E R O U T O F P O C K E T C O S T S B U T C A N L E A D T O L E S S E F F I C I E N C Y O V E R A L L
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- 15. 15 1 2 3 4 1 2 3 4 Media Investment andShare of Voice Channel Investment, particularly digital Messaging Quality TODAYâS AGENDA A N A L Y Z I N G Y O U R C O M P E T I T O R S â M E D I A A C T I V I T Y C A N P R O V I D E A B E N C H M A R K F O R B U D G E T S E T T I N G AGENMARKETPLACE ANALYSIS Brand Size, Stage and Whitespace
- 16. 16 EVALUATE COMPETITORSâ MEDIAINVESTMENT & SOV 1. Share of Voice (SOV) is the relative fraction of ad weight an advertiser uses within a defined market over a specified time period 2. Multiple studies have established the relationship between SOV and Share of Market (SOM) and confirm that a brandâs SOM will tend to equal its SOV 3. Furthermore, all things being equal, a brand whose SOV is greater than its SOM is more likely to gain market share I N C R E A S E D S H A R E O F V O I C E W I L L D R I V E S H A R E O F M A R K E T Source: How Share Of Voice Wins Market Share: New Findings From Nielsen And The IPA Databank
- 17. 17 CHANNEL INVESTMENT MATTERS 1.A study by Millward Brown found that brands that grow their digital SOV are more likely to increase their market share over time. 2. Measuring digital SOV encompasses more than simply measuring the exposure that brands pay for; it also includes owned and earned media 3. Brands must consider competitive positions across all digital touchpoints to drive SOV and SOM I N C R E A S E S I N D I G I TA L S O V A R E M O R E L I K E LY T O L E A D T O O V E R A L L M A R K E T S H A R E G A I N S Source: Millward Brown âAre You Getting Your Fair Digital Share?â 2011
- 18. 18 CAMPAIGN QUALITY COUNTS Source:Direct Marketing News, âHas the Relationship Between Reach and Engagement Changed?, 2011, and How Share Of Voice Wins Market Share: New Findings From Nielsen And The IPA Databank Reach Engagement 1. Using the right copy is critical to drive returns for both traditional and digital media 2. Campaign quality is the most significant driver of consumer-generated media, therefore it is especially important for digital campaigns to utilize engaging creative 3. Digital SOV includes paid, owned and earned media, therefore an engaging digital strategy that drives earned reach is essential
- 19. 19 OTHER COMPETITIVE CONSIDERATIONS BRANDSIZE MATTERS ďź Market leaders drive greater returns from SOV than challengers ďź Therefore, it is especially important for small brands to have campaigns with above-average effectiveness NEW PRODUCT INTRODUCTIONS TAKE A GREATER BUDGET TO BREAK INTO THE MARKET ďź Guidelines suggest that a new product needs to be launched with a S O V that is 2 X the desired S O M ďź However, newness delivers higher gains and sees higher return on increased SOV to SOM ratio ďź Brands in younger categories with less competition fared better than those in mature categories FIND THE WHITESPACE ďź Evaluate your competitorsâ entire media strategy to find ways to breakthrough Source: How Share Of Voice Wins Market Share: New Findings From Nielsen And The IPA Databank
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- 21. 21 THANK YOU New York 2765th Ave Suite 407 NY, NY 10001 212.673.4500 Westport 1221 Post Rd. East Suite 201 Westport, CT 06880 203.256.0880 womensmarketing.com Thank you for joining this webinar, part of our How Media Builds Brands series Have questions or want to learn more? Contact Marlea Clark at mclark@womensmarketing.com
Editor's Notes
- #3Â MC SPEAKING
- #8Â The increasingly fragmented nature of the industry has made it more difficult to target consumers en masse. Consumers use multiple media sources and their attention is scattered across them.
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- #11 Defining The precise objective AND KPIS is important to set the campaign up for success. Effective tactics align to specific objectives along the spectrum. Advertising is most successful when it is designed to achieve a specific task. To get the most from media budgets, we must align media strategies around their advertising goals.
- #13Â It is important to establish key timing for the brandâs effort upfront. Does the brand need an âalways on presenceâ or it is seasonally focused? If itâs seasonally focused, for instance if you are a swimsuit brand or a childrenâs cough and cold medicine you can concentrate your dollars in a key time period and maximize impact where it counts. However, if your brand is not affected by seasonality and the purchase cycle is continuous then youâll have to plan your budget accordingly to reach the target consumers through the year and will likely need a larger budget to compete/ breakththrough. Also, important to note is that media pricing isnât consistent throughout the year, especially so for TV. For instance, holiday season is a popular time, so like all things supply and demand, media costs tend to increase and CPPs come at a premium. On top of that because the there is so much noise and activity in Q4 it can take even more media weight to breakthrough, resulting in increase budgets.
- #14Â Is this a National target or are there key areas of geographic focus? However, some local and regional advertisers find it necessary to invest heavily in their marketing area to keep up with heavy competitive spending.
- #17Â Simply stated, share of voice is about how much of the pie youâre getting; what percentage of the ad space is yours? Comparisons of digital share with market share should be used periodically as a strategic input into budget setting, exactly as has been done for traditional channels such as TV. This is great if you are big brand, and have the budgets to break thourgh but what about for the smaller brands?
- #18Â They have found that brands that increase their digital SOV are more likely to grow their market share over time. They also found that brands that increase both their overall SOV and their digital SOV are particularly likely to grow market share. The result of increasing your online SOV, using user-initiated engagement, and virility is also a huge lift in consumer intent to purchase. While correlation does not necessarily imply causation, these results suggest that multimedia communications with a significant digital element help to build brand
- #21Â Take a consumer centric approach based on her media consumption âbuilt on connecting with her impactful messaging throughout her day, an engaging strategy will ultimately drive more reach