3. budgeting...
two main concerns…
how much should be spent on each individual communications tool
budget is usually determined by a combination of up to four
different stakeholder groups
how much should be allocated to promotion for the campaign or time-frame
the organisation
communications agencies
the media channels
the target audience
4. budgeting approaches
budget-setting method explanation
arbitrary based on guess work on behalf of the most senior
management – budget for resources determined as
each demand arises
inertia the same amount of budget as was spent on previous
communications is made available
media multiplier last years budget is increased by the rate of inflation
percentage of sales budget is set in relation to the level of historic or
forecast sales, may be based on traditional figures
affordable what is left after all other costs in relation to
production, manufacturing and distribution are
accounted for first then we’re left with what’s left
objective and task the resources needed to achieve each objective are
determined and costed and brought into an overall,
total budget
adapted from Fill, 2006
5. further budgeting approaches
competitor parity
organisations deliberately spend
the same as key competitors
advertising-to-sales ratio
budget is based on competitor spend and percentage of
market share in relation to an industry average
only suitable for stable FMCG markets where
advertising is the key tool that influences sales
share of voice
as above but the idea is to increase share of voice in the market
7. 2015 ITV Spots cost file
Cost for one transmission – split by region
11:00 18:45 19:30 21:30 23:05
ITV DAYTIME - EARLY
CORONATIO
N MOVIE or LATE NIGHT
REGION
THIS
MORNING
EVENING
NEWS STREET DRAMA MOVIE
ANGLIA £480 £2,950 £3,740 £5,170 £1,180
MERIDIAN £650 £3,970 £5,030 £6,510 £1,590
LONDON £1,690 £6,510 £11,490 £13,270 £2,770
CENTRAL £850 £5,340 £9,090 £16,540 £1,530
HTV W&W £410 £1,970 £3,340 £3,250 £570
WESTCOUNT
RY £110 £700 £1,190 £1,120 £200
SCOTLAND £450 £2,420 £3,750 £3,280 £580
GRANADA £620 £3,240 £5,470 £4,190 £1,080
BORDER £50 £230 £390 £350 £80
YORKSHIRE £500 £2,610 £4,400 £3,930 £870
TYNE TEES £220 £1,160 £1,950 £1,700 £390
UTV £170 £1,170 £1,480 £1,080 £270
TOTAL £6,200 £32,270 £51,320 £60,390 £11,110
…but how much do things cost?
8. 2013 ITV Spots cost file
Cost for one transmission – split by region
NOTES
All spot costs assume a 30" advert.
These airtime costs are estimates based on typical traded discounts off projected 2012 annual
average CPT's.
Ratings for programmes listed have been calculated based on typical average TVR's for traded
audience.
Estimates for adult views (impacts) and ratings are for reference/comparison only.
Rates can fluctuate +/- 20% or more from these depending on month and channel.
Where applicable, there is a second transmission on the +1 channel, these are not included in
the spot estimates
TERMS AND CONDITIONS
http://www.itvmedia.co.uk/advertising-on-itv/terms-and-conditions
CONTACT
http://www.itvmedia.co.uk/advertising-on-itv/contact-us-
…but how much do things cost?
16. There is no easy way to determine a budget...
It is difficult to quantify exactly how much is needed…
How much does it cost to build brand awareness?
How much does it cost for the audience to think, feel and act in the
desired way?
…and communications budgets aren’t neat, ordered things!
No communications are truly free… they are either paid-for, owned or earned
17. paid, earned and owned…
A relatively new concept but can be related to budgeting
We pay for most of our communications media
…and we can earn media and communications over time
We own some media but there is an internal cost
18.
19. Budgeting in context...
Be realistic… think about what you want to achieve
Bring the costs into your implementation plan
You may want to work under Objective and Task
Break down by activity, time and also a final total
27. promotional objectives...
avoid solely focusing on sales
help to determine/clarify position
help highlight the balance of tactics needed
provide a time frame
provide a means of evaluation and measurement
link back to marketing and corporate objectives
28. types of objectives…
awareness, interest, repositioning, reinforcement
leads, conversions from leads, page views, time, value per visit
sales, sales from leads, sales value, sales volume, average order value
active customers, brand mentions, sentiment, shares, virality
Unique visitors, traffic, bounce rate, revenue, search percentage
29. Specific, Measureable, Achievable, Realistic and Time-bound
Think… what do I want to achieve, where, with what audience and by when
They need to be SMART…
Make sure you can measure performance
30. …developing intelligent objectives
Objective Substantiation Strategies to
achieve goals
KPI’s
Link to stage of
consumer journey
and SMART
Link to audit
findings
Link to STP, brand
and 3P’s
What will you be
measuring?
Conversion –
increase average
order value to £30
per customer
Increase in
disposable income
Increased desire for
product
Position as luxury
against key
competitors
Differentiation
through features
OVP – exclusivity
% of unique visitors
responding to
promotions
31. gap analysis…
If we know what we want to achieve as a metric…
…and when we want to achieve it by…
We can conduct a simple gap analysis
timeframe
Measure…let’ssay
increasesalesby10%