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7-1 Copyright © 2009 Pearson Education Canada CHAPTER 7 Media Planning Essentials

7-1 Copyright © 2009 Pearson Education Canada CHAPTER 7 Media Planning Essentials

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7-1 Copyright © 2009 Pearson Education Canada

CHAPTER 7

Media Planning Essentials

7-2 Copyright © 2009 Pearson Education Canada

Learning Objectives

Assess roles & responsibilities of both client and agency in media planning

Differentiate among media objectives, media strategies and media execution

Utilize terminology used in media planning

Continued…

7-3 Copyright © 2009 Pearson Education Canada

Learning Objectives (cont.)

Describe the steps involved in the media selection process

Identify the factors affecting the size of an advertising budget

Describe the methods of determining the size of an advertising budget

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Media Planning

Process of developing a plan of action for communicating messages to the right people (target)

at the right time, and

with the right frequency.

Efficiency in media planning can be loosely defined as gaining maximum impact or exposure at minimum cost to the client.

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Media Planning Process

Client provides relevant background information to agency in the form of a media brief.

1. Market Profile

2. Product Media Profile

3. Competitor Media Usage

4. Target Market Profile

5. Media Objectives

6. Media Budget

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Media Planning Process

Marketing PlanMarketing Plan

Media ObjectivesMedia Objectives

Media StrategiesMedia Strategies

Creative PlanCreative Plan

Advertising PlanAdvertising Plan

Media EvaluationMedia Evaluation

Media ExecutionMedia Execution

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The Media Plan

Document that outlines all relevant details including:How a client’s budget will be spent

Clearly defined objectives

Rationalized strategies

Precise execution details

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Media Objectives

Clearly worded statements that outline what the media plan should accomplish.

1. Who is the target market?

2. What is the advertising message?

3. Where are the market priorities?

4. When is the best time to advertise?

5. How many, often, long?

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Media Strategies

Numerous factors are considered for achieving objectives: Target MarketNature of Advertising MessageReach/Frequency/ContinuityMarket CoverageBest time to reach targetCompetitor media strategiesMedia alternativesBudget

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Target Market Media Strategies

Profile- matchingProfile-

matchingRifleRifle

RoadblockRoadblock

ShotgunShotgun

Explain why roadblocking is not useful in rifle or profile-matching strategies.

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Nature of Advertising Message

Factual message

print & website

Emotional message

broadcast, online video & website

Promotional message

TV for awareness

Print, POP & website for details on how to enter

Brand-name awareness

outdoor &transit

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Reach/Frequency/Continuity

ReachHow many?

FrequencyHow often?

ContinuityHow long?

How flexible is the plan? Can it be altered?

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Reach

The total unduplicated audience [individuals or households] exposed to a message one or more times in a period (week).

Reach Formula = # households tuned in

# households in area

= 50 000 or 1

250 000 5

= 20%

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Frequency

The average number of times an audience is exposed to a message over a period of time (week).

Frequency Formula = Total Exposures

Reach

= 250 000

50 000

= 5.0

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Impressions

Total number of commercial occasions scheduled, multiplied by the total target audience potentially exposed to each occasion.Impressions = Reach X Frequency

= 100 000 X 3

= 300 000Over an 8-week schedule the gross impressions would be:

2 400 000 (300 000 X 8)

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GRPs refer to the weight of a media schedule against a pre-determined target audience.

GRP = Reach (%) x Frequency

= 50 x 3.5

= 175

Gross Rating Points (GRPs)

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Continuity, Engagement, & Flexibility

Continuity:

The length of time required to generate impact on a target audience.

Engagement:

The degree of involvement a person has with the media when they are using it.

Flexibility:The ability to modify media spending plans throughout the scheduled advertising period.

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Advertising Flights

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National

Regional

Key Market

Selective

Identifying the number of markets where advertising will occur.

Media Coverage

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Best Time to Reach Target

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Competitor Media Strategies

Media planners should analyze competitors’ media usage and expenditure patterns.Should you follow a similar pattern?

Should you recommend a unique strategic direction?

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Media Alternatives

TelevisionRadio

NewspaperMagazines

Out-of-HomeDirect-Response

Internet

TelevisionRadio

NewspaperMagazines

Out-of-HomeDirect-Response

Internet

1. Nature of the product

2. Description of the target market and the media they refer to most often

3. Budget is key influence

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Budget Influence on Media Strategy

Media Mix:Primary &Secondary

Media

SelectiveMedia Usage

SmallBudget

LargeBudget

ReachFrequencyContinuity

Market CoverageTiming

Competition Media UsageType (Choice) of Media

Limitedstrategy

Flexiblestrategy

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Media Execution

Fine tuning the strategy and translating it into specific action plans.

Media Selection Process

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Cost incurred in delivering a message to one thousand individuals.

The formula for calculating CPM is as follows:

Unit Cost of MessageCPM = Circulation (000)

Cost per Thousand (CPM)

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Media Scheduling and Budgeting

Media schedule is normally presented in a calendar format, often referred to as a blocking chart.Outlined in one or two pages

Media usageMarket coverageWeight levelsGRPsReachFrequencyTiming

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Media Buying

Once the media plan is approved, the media buyer negotiates the buy with media representatives to obtain the most effective and efficient buy within the guidelines of the plan.

User-friendly software developed by BBM Bureau of Measurement, Nielsen Media Research, etc. lets media buyers makes reasoned and detailed decisions.

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Factors affecting budget size:

Size of Customer Base

Degree of Competition

Stage in the Product Life Cycle

Product Characteristics

Management Philosophy about Advertising

The Media Budget

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1. Percentage of Sales

2. Fixed Sum per Unit Sold

3. Industry Average (Competition Spending)

4. Task (Objective) Method

5. Share of Advertising / Share of Market

Budgeting Methods