These slides cover integrated marketing communications for traditional and digital media. Beginning with the example of P&G reducing paid media spending online, the topic covers budgets for ad expenses, the mix of media usage, paid media costs and cost per thousand. There are video case studies that show brands that effectively integrate media and a discussion of cross media strategies and effectiveness of advertising. These slides accompany Social Media & Mobile Marketing Strategy from Oxford University Press.

1. Social Media & Mobile Marketing
Integrating Traditional and Digital

2. Integrating Digital and Traditional
• Procter & Gamble’s reported that it cut approximately $100
million to $140 million in digital advertising spend in Q1
because of brand safety concerns and ineffective ads.
• According to Kantar Media, P&G spent $2.4 billion on U.S.
advertising in 2016, making it the country’s biggest advertiser.
• Why would P&G cut digital ad spending?
• P&G announced last August that it was cutting targeted
Facebook spend, because hyper targeting on the platform did
not prove as effective as the company initially thought it
would.

3. Are Traditional Media Relevant?
• Reach – Which media have the highest reach?
• Target – Do all targets interact with media the same
way?
• Efficiency – What is the most efficient way to connect?
• Wearout – Do ads wearout and can multimedia help?
• Clutter – How do you ‘break through’ the clutter?
• Synergy – Are their multimedia synergies?
• International – Do international consumers respond to
traditional or digital?

4. Budgets

6. Are people watching regular TV?

7. Cross Media Efficiency
• How do you equate costs across media?
• Cost per Thousand – Cost to reach 1,000
people.
Which forms of media have the highest CPM and
which have the lowest?

10. Video Commercials by Platform Cost per Thousand
Broadcast
Daytime $6.50
Early News $9.00
Primetime $19.00
Late Evening $17.50
Syndication
Daytime $5.50
Early Fringe $9.25
Prime Access $17.00
Late Fringe $11.60
Cable Channels
Daytime $3.30
Fringe $7.55
Primetime $9.85
Internet
Untargeted Video
Targeted Video
$9.25
$32.75
Exhibit 10.2: Cost per Thousand for Video Commercials
http://www.mediadynamicsinc.com/userfiles/files/targeted_online_video_cpms_much_higher_than_tv.pdf The Media Book
2014 by Media Dynamics

11. •The average cost of an advertisement on Google AdWords is $2.32 per click on
the search network. The average cost per click of an ad on the Display Network is
under $0.58.
•The average cost per action (CPA) in a Google advertising search campaign is
$59.18.
•The most expensive keywords in AdWords advertising and Bing Ads cost $50 or
more per click. These are generally highly competitive keywords in industries that
have high customer lifetime values, like law and insurance.
•The average small business using AdWords spends between $9,000 and $10,000
per month on their online advertising campaigns. That's $100,000 to $120,000 per
year.
•The average cost per click of an online Facebook ad is $1.72. The average cost per
action on Facebook Ads is $18.68.
•The typical CPM on Facebook Ads is around $10.
•The typical CPM for an Instagram ad is closer to $5, but Instagram ad costs are
rising as the platforms gains in popularity.

13. The Truth about Advertising
• Consumers respond more favorably to advertising that
is entertaining, informative and non irritating (Ducoffe,
1996).
• The general rule holds for both traditional and digital
advertising.
• People will appreciate advertising more if it does
something for them and doesn’t intrude too much.
• Marketers who use social media must be particularly
cognizant of the irritation factor so as not to develop a
reputation for invading people’s personal space.
• When do people welcome advertising?

14. Integrated Marketing Communications
• Develops trust
• Limits confusion
• Is more efficient
spending wise
• Can be more
effective
• Presents a clear
message and
repeats it

15. Why bother to integrate?
• An integrated cross channel strategy is strong because
consumers process information differently depending on
the medium.
– When searching online for product information individuals scan
the screen reading selective material.
– Television viewing is more passive, but if the person is watching
he or she tends to watch the entire message rather than scan.
– The benefit of advertising in both forms of media is that the
response of the consumer differs, but each may contribute to
positive brand attitudes or desirable outcomes for the firm.
• Are they active or passive? TV, Radio, Magazine, Online
Display, Online Search, Viral Videos, Webpage views,
Mobile apps

16. Integrated Campaigns
• Clear selling point
• Repeated message with different executions
• Volkswagen Genuine Parts Video Ogilvy
• How is it integrated?
• What is the message?
• What are the executions?

17. Information Processing
• Elaboration Likelihood Model
– ELM Video
• High vs. Low Elaboration
• Give examples of consumers processing via central
and peripheral cues in social media & mobile
marketing
• Hedonic vs. Utilitarian Products

18. How do you decide which forms of
media to use?
• What is your goal?
• What is the message?
• Who is the target?
• What are the executional elements of the campaign?
• What is the timing?
• What is the budget?

19. Cross Media Processing
• Forward encoding: An advertisement in one form of
media primes interest in an ad in another form of
media.
• For example, Heather sees Amanda watched an old
episode of Sex in the City on Hulu because of her
Facebook ID. Later, Heather now notices an ad on
television that past episodes of Sex in the City are
available on Netflix.
• Heather may have been prompted to attend to the
Netflix advertisement because of her pre exposure to
Amanda’s viewing. Now, Heather can watch the
episode and discuss the plot with Amanda.

20. Cross Media Processing
• Image transfer occurs when consumers
remember previously viewed ads during
exposure to a second ad.
• The second advertisement may prompt memory
for the first advertisement and the messages may
reinforce one another.
• For example, when watching Monday night
football Kevin sees an ad for a new tablet that he
researched on Cnet. The television ad can
reinforce positive brand attitudes.

21. Cross Media Processing
• Multiple source perception is the belief that a brand must be
good if the consumer sees a lot of advertising for the product.
• In this case advertising serves as a cue to the brand’s market
position based on the perceived level of brand spending.

22. Delivering Desired Ads
King Video Advertising Platform Video
Cross Media Ads with Frequency for Go Cam
Video

23. Challenges of Media Planning
• Clutter in major media
• Casting too wide a net (e.g. superbowl)
• Locating the ‘right’ customers
– Value of exposures
– Receptivity of viewers
– Likelihood of action by viewers
• Costs and CPM
• Challenges of Programmatic and AI
• Ad Blockers and Fraud
• Define: Reach, Frequency, Share, Impression, Rating and GRP
• Which forms of media use these measures?
• Measurement
– GRPs (reach x frequency) for television
– Nielsen People meters and cross platform measures and mobile meters (AOL using GRPs to
attract advertisers)
– First or last click for online?

24. Measurement and Metrics
• Awareness (traditionally ad recall)
• Consideration (traditionally brand familiarity)
• Action (traditionally purchase intent)

25. Measurement
• L’Oreal Clay Mask in France Video

26. Brand Lift
• Determine brand lift generated by each platform
• These cross-platform brand lift solutions combine lift measurement (a
measurement of test vs. control), with an opportunity-to-see
methodology for determining TV ad exposure.
• Opportunity-to-see assesses the likelihood that those people were
exposed to a given ad by asking those individuals if they have seen certain
TV programs in which the ad was aired. After being asked a question that
determines whether they viewed certain TV programs in the previous day,
individuals are then asked questions to determine their perception of the
advertiser’s brand.
• Comparing lifts in the exposed groups with the unexposed group gives
marketers a more complete understanding of how their Facebook and TV
ads drive impact independently and together.

27. Nielsen and Facebook Brand Lift

28. What are the advantages/disadvantages of media formats?
Medium Advantages Disadvantages
Network Television
Cable Television
Newspapers
Magazines
Radio
Outdoor
Direct Mail
Online Search
Online Display