Media Strategies: An Advanced Discussion Television Bureau of Advertising

Media Media Strategies: Strategies:

An Advanced Discussion

Television Bureau of AdvertisingTelevision Bureau of Advertising

The Media Pie

- Erwin Ephron for TVB

There’s never enoughmoney to advertise:

• at effective weight

• to all of the country• for most of the year

That problem defines your job as a media planner.Allocation.

Spending a limitedresource for greatest total effect.

Think of the media budget as . . .

A beautiful pie . . .

And media planning as . . .

Dividing-up the pie . . .

The pieces are. . .

WEIGHT

TARGETING

CPMUNIT SIZE

GEOGRAPHY

WEEKS

The size of the portions determines the media plan.

And the size of each slice will determine the size of other slices.

THE MEDIA PIE

1. WEIGHT LEVELS

TRP’s, reach and frequency

Research shows each Rating point added produces less response than the one before.

Source: Adworks 2, A major study by MMA, IRI and Nielsen Media Research which examined 800+ packaged goods brands.

This argues for moderate weekly GRP weight and more continuous advertising.

Scanner sales data paints a similar picture.

It shows reach is cost-effective, while repetition (short-interval frequency)is not.

Probably because whenpeople are in the market a single message can influence brand choice.

And when they’re not in the market many messages will have little effect.

This is called RecencyPlanning.

It is a skimming strategy.

Since purchases are made continuously,

but we usually don’t knowwho is ready to purchase . . .

REACH

The idea is to talk toas many target consumers as possible

Over as many weeks as possible

C O N T I N U I T Y

REACH

PRINCIPLE

Today it’s “reach and continuity,” not “reach and frequency” in media planning.

Use *moderate weekly TRP’s.

*Approximately 50 TRP’s are the recommended minimum.

2. TARGETING

Demographics, user, usage

It’s easy to over-estimate how much demographyis worth to a brand.

Example

The target group isWomen 18-49. It has a purchase index of 115.

(It can’t index much higher because that’s63% of all women.)

A smaller target, likeWomen18-34 in 5+households, might indexhigher. . .

But it would not account for enough of a mass brand’s sales tobe useful as a target.

That is the TV targeting paradox.

Small targets don’tconcentrate enough sales.

But large targets don’tconcentrate sales enough.

The reason is most TVbrand demo-profilesare relatively flat.

In theory, demo-targeting cuts waste bybuying more prospectsper-dollar.

PRICING

Here’s how it’s supposedto work:

Prime time Men 18+ cost $30 a thousand.

$30$30

A brand targeting M 25-54buys Package A because ithas a higherM 25-54 comp.

Average M 25-54Package A

$30$30

…and gets more younger men per-dollar because it has targeted.

Average M 25-54Package A

The targeting dividend $30$30

But when sellers price onMen 25-54 . . .

$45$45

$30$30

The targeting dividendgoes to the seller.

$45$45

$30$30The targeting dividend

And that’s what happens today.

Higher target comp doesnot produce lower target CPM’s.

FOX WB NBCABCCBS

Sources: Nielsen NTI, Total Viewing Source Report andHH and Persons Cost Per Thousand Report, February 2003

% Comp

7671565052

CPM

63.2465.6753.8250.0451.14

Highest CompHighest Comp Highest CPMHighest CPM

MEN 25-54

Which shows targetingdoesn’t work the way it’s supposed to.

Another problem.

Reach, a primary goal, and targeting conflict.

Reach is bought withdispersion. Targetingrequires concentration.

That said, there are stilltargeting approacheswhich have great energy.

Recency, receptivityand geography areall powerful targetingtools.

PRINCIPLE

Look well beyonddemography totarget potential purchasers.

3. CPM VALUE

Reach, environment, attention

This is the twilight zoneof media planning.

Clearly there has been amove to cheaper media.In TV this has meant lowerratings and cable.

But as we gain in costefficiency are we losingvalue?

Agency researchshows that viewingduration (which favorshigher ratings) predictsattentiveness.

Sources: Proprietary agency research

Similarly, Print data shows that readers of lower CPM titles see fewer ads.

Sources: Ephron, Erwin, "Counting Calories – On the Need to Adjust Print

Readership Data," Worldwide Readership Research Symposium, Venice, 2001.

Lower CPM’s usually represent lower value. Buying a mix of daypartsis the best approach.

PRINCIPLE

TVB provides a PowerPoint presentation called “Value of Local Daypart Mix”. Contact info@tvb.org to arrange a preview.

4. UNIT SIZE

30- or 15-second messages

Choice of unit is a creative decision, forcedby pricing and budget..

15’s comprise close toone-third of national TVweight.

But, there’s a paradox.

Research usually findsshorter units are morerecall effective.

(Two 15’s provide greater total communication than one 30.)

But sales tracking shows15-second commercialsare less sales effective.

The conflict may be inthe way we use 15’s inour plans.

Even if two 15’s areworth more than a 30...

Even if two 15’s areworth more than a 30...one 15 is still worth less.

Don’t plan 15’s to make a budget appear biggerthan it is.

PRINCIPLE

That does not help acampaign.

5. WEEKS

Scheduling and weight

Research shows increasing marginal returns as weeks are added to a schedule

Source: Adworks 2

This suggests theoverwhelming value ofcontinuous advertising formost brands.

Recency also supports more weeks of advertising.

The recency goal is to intercept weekly saleswith a brand message.

In recency planning,lower weekly reach goals and more weeks are the most cost-effective.

But a 30 weekly reach (50 TRP’s) seems to be thepractical minimum.

Because the effects of less weight often can’t be read in the market...

…which means you don’t know if the campaign is working.

PRINCIPLE

A moderate weeklyreach goal results ina better performingschedule.

It intercepts morepurchases, because itallows more weeks ofadvertising.

6. GEOGRAPHY

National, spot or some combination.

Before we look atGeography, lets review what’s happened to the media planning pie.

1.WEIGHTShould be moderate togenerate more weekly reach.

2. TARGETINGNo longer provides substantial cost-savings.

3. CPM’SRequires a mix of day parts.

4. UNIT SIZEAre often reduced to to help stabilize CPM’s.

5. WEEKSHave become highestpriority in planning.

Both weeks and weeklyreach are key recencyplanning goals.

But most brands can’tafford both when costs are increasing fasterthan budgets.

The remaining option is to target Geography.

And that brings us to spot planning.

6. GEOGRAPHY

Targeting with spot

Every brand hasgeographic areas ofopportunity.

These are spot marketswhere advertising ismost likely to producesales.

They can be identifiedby BDI, CDI, brand share,growth or absolutevolume.

Let’s begin with the mostfamiliar measure, BDI, the market’s per-capita indexof brand purchase.

BDI is calculated bydividing a DMA’s share of brand sales by its share of US population.

A market like Dallas,containing 3% of a brand’s sales and 2% ofthe population wouldhave a BDI of 150.

For most brands, marketscomprising a third of theUS, will have a BDI index of 130 or higher.

This is far greaterselectivity than demosprovide.

The following maps illustrate:The following maps illustrate:

•In Red: The portion (best 1/3) of the US that generates the highest BDI or CDI.

•In the text box: A comparison of thatBDI/CDI to the best age demo index.

Pasta Sauce

Best 1/3 of U.S.Best 1/3 of U.S. 135135Best Age DemoBest Age Demo 112112

Source: IRI Infoscan special tabulation/MRI

Chevy Blazer

Best 1/3 of U.S.Best 1/3 of U.S. 156156Best DemoBest Demo 122122

Source: Polk Special tabulation/MRI

Financial Planning

Best 1/3 of U.S.Best 1/3 of U.S. 140140Best Age DemoBest Age Demo 114114

Source: MRI Special tabulation

Barbecue Sauce

Best 1/3 of U.S.Best 1/3 of U.S. 133133Best Age DemoBest Age Demo 106106

Source: IRI Infoscan special tabulation/MRI

And there’s a bonus.

Since geographyand demographyaren’t linked, thebenefits are cumulative.

A brand with a BDI of 115 for Men 18-49 and 130 forBoston...

Will index at 150 among Men 18-49 living in Boston(1.15 x 1.30).

But BDI spot is one dimensional.

A brand, depending on it’scircumstances, should consider targeting...

• Category sales (CDI)• Competitive vigor (share)• Brand growth (% change)• Brand volume (dollars)

Alone, or in combination.

There is evidence thatspot should also focuson high Share andGrowth markets.

And that it should be used to add weeks,not weight.

This is a far more advanced approach to Media planning.

DMA market-value datafor planning spot are widely available.

• IRI or AC Nielsen Brand Track for packaged goods• Polk for automobiles• IMS for Rx drugs

And MRI special tabs for awide range of products andservices.

TVB can help you locatethe data.

PRINCIPLE

Spot should be used inhigh potential marketsand be planned toadd weeks, not weight.

ConclusionGeography is the missing planning strategy for many TV brands.

TVB offers Advertisers and Agencies TVB offers Advertisers and Agencies (planners or buyers) a full range of (planners or buyers) a full range of information information about Local about Local Television:Television:

The Resource Channel on the The Resource Channel on the TVB web site was created for TVB web site was created for advertisers and agencies. advertisers and agencies. We invite you to browse and We invite you to browse and learn more about:learn more about:

Planning and Buying Spot TelevisionPlanning and Buying Spot Television Local Broadcast TV vs. Other MediaLocal Broadcast TV vs. Other Media EDI: Enabling the Business ProcessEDI: Enabling the Business Process

Thank YouThank You..

See you on the TVB web site See you on the TVB web site www.tvb.orgwww.tvb.org

A note for presenter: A note for presenter: “ “Media Planning…” was created for Media Planning…” was created for

the Advertiser/Agency Resource the Advertiser/Agency Resource Channel on the TVB web site. For Channel on the TVB web site. For more on planning and buying Spot more on planning and buying Spot and additional presentations such and additional presentations such as “Comparative Values in Local as “Comparative Values in Local Television” and “Alternate Television” and “Alternate Delivery Systems,” please visit the Delivery Systems,” please visit the Channel or contact TVB. Channel or contact TVB.

Thank you