Advertising and IMC Media Planning

Advertising and IMC Media Planning

LECTURE-19

Chapter Questions

What are the steps in the media planning process?

What is the difference between reach and frequency?

How do you determine a media mix?

What role does cost play in selecting media?

What factors are involved in scheduling media?

Chapter Perspective

Media are the bridge that connects…Media are the bridge that connects…

Organizations Consumers

Opening Case: Lee Jeans

An IMC program featuring:• The “Buddy Lee” theme, with:• initial phase of guerilla marketing tactics• two-part series of three-minute short films • ads on FOX, WB, ESPN 2, MTV, VH1, E!

An IMC program featuring:• The “Buddy Lee” theme, with:• initial phase of guerilla marketing tactics• two-part series of three-minute short films • ads on FOX, WB, ESPN 2, MTV, VH1, E!

Update a “boring” brandUpdate a “boring” brand

• Buddy Lee has become a bona fide pop-culture icon

• “Cool to wear" score moved from 26% to 35% • 3 percent market share growth

• Buddy Lee has become a bona fide pop-culture icon

• “Cool to wear" score moved from 26% to 35% • 3 percent market share growth

Opening Case: Lee Jeans

Challenge:Challenge:

Answer:Answer:

Results:Results:

Media Planning

Media planning: A process for determining the most cost-effective mix of media for achieving a set of media objectives• Goal: maximize impact while

minimizing cost • Media is often the largest MC

budget item

Lee Dungarees Media Mix

Media researchAnalyzing target audiences and media options


Media planningProcess of developing a good media plan


Media buyingExecution of a media plan

Media buyingExecution of a media plan





The Basics

PlanningSteps

PlanningSteps

Step 1: Media targetingStep 1: Media targeting

What Are The Media Planning Steps?

Think About It

Do you think all cigarette advertising should be pulled from magazines like Glamour, People, Newsweek, and Rolling Stone?

PlanningSteps

PlanningSteps


Step 2: Determining media objectives




Reach

Reach: The percentage of anaudience that has had theopportunity to be exposed to amedia vehicle within a specified period of time

• Ideal goal: 100% reach

As Shown, it is Difficult to Achieve 100% Reach

Frequency

Frequency: The average number of times those who are reached have an opportunity to be exposed to a brand message within a specified time period

• Frequency to be effective: 3-10 exposures• Varies widely by brand

The “A” Curve is More Desirable Because its Effective Frequency is Less than “B”

Gross Rating Points (GRPs)

Gross Rating Points (GRPs): The combined measure of reach and frequency indicating the weight of a media plan

• The more GRPs, the more “weight” a plan has

The Simple Formula to Calculate GRPs

Gross Rating Points (GRPs) = Reach x FrequencyGross Rating Points (GRPs) = Reach x Frequency

Print example50 reach X 5 insertions = 250 GRPs

Broadcast example6 (rating) X 5 (frequency) = 30 GRPs

Total Number of GRPs Delivered by a National TV Media Plan

CBS Evening News 6 x 5 = 30Friends 10 x 4 = 40Law & Order 15 x 6 = 90Monday Night Football 12 x 3 = 36 Total 196

Programs Program Rating Frequency GRPs

PlanningSteps

PlanningSteps




Step 3: Determining media strategies






Some Products Will Require More Interactive Media to Gain Impact

Insight: Media Mix Habits

Many organizations use one or two media simply out of tradition. This happens most often with the use of magazine and TV. These media are often seen as the most “glamorous” of the

various MC tools. Most marketers prefer to identify themselves with a TV or magazine

advertising campaign rather than with a direct-marketing campaign.

Determining Media Cost

Cost per thousand (CPM):What a communication vehicle charges to deliver a message to 1,000 members of its audience

Used commonly for print media

Cost of ad unit X 1,000 = CPMCirculation or audience

How Does Cost Affect Media Selection?

Magazine AMagazine A Magazine BMagazine B

Rs. 20,000Rs. 20,000Cost of a Cost of a Full Page Ad:Full Page Ad: Rs. 30,000Rs. 30,000

Circulation:Circulation: 800,000800,000 1,500,0001,500,000

CPM:CPM: Rs.20,000 x 1,000800,000

Rs.20,000 x 1,000800,000

Rs. 30,000 x 1,0001,500,000

Rs. 30,000 x 1,0001,500,000

= Rs. 25= Rs. 25 = Rs. 20= Rs. 20

Rs. 20,000Rs. 20,000 Rs. 30,000Rs. 30,000

800,000800,000 1,500,0001,500,000

Tales From the Real World

The term “CPM” is often confusing for students. Unless you took Latin in high school, you wouldn’t guess that CPM stands for “Cost per Thousand.”

The chapter explains that the “M” in CPM is the Roman numeral for 1,000, but in the real world,

many professionals still aren’t sure. Unfortunately for them, most media sales people use this term in

quoting prices for their media. Which suggests another Latin term: caveat emptor.

PlanningSteps

PlanningSteps






Step 4: Determining media Scheduling

Step 4: Determining media Scheduling







Most Organizations Use One of These Three Scheduling Strategies

DATE :ESTIMATE NO. : CLIENT ABC

J.O.NO. : PRODUCT :

PERIOD Dec-12LAUNCH AD

Tue Wed Thu Fri

Newspapers

Station SizeT.

SpacePosition

01-Jan

02-Jan

03-Jan

04-Jan

Total Ins

Base rate

Color Charg

es

Discounted per

insertion cost

Total Discounte

d Rate

Jang Lahore 27x04-Color 108

Page-2 (Req)

1 1 1300 100% 280,800

280,800

The News Lahore -DO- 108 -DO- 1 1 750 25%

101,250 101,250

Daily Times Lahore -DO- 108 -DO-

1 1 70,000

70,000

Nawa-e-Waqt Lahore -DO- 108 -DO-

1 1 900 25% 121,500

121,500

Grand Total

3 573,550

573,550

An Example of a Media Schedule- Newspapers

An Example of a Media Schedule- Magazines

SCHEDULE & ESTIMATEDATE 19-11-12

ESTIMATE NO. : CLIENT ABCJ.O.NO. : PRODUCT XYZ

PERIOD Sep-12LAUNCH AD

MAGAZINES Size T. Space Position Total InsPer

insertion cost

Total Rack Rate

Arora FULL PAGEFULL PAGE ORD, COLOR

1 65,000

65,000

Herald FULL PAGEFULL PAGE ORD, COLOR

1 42,000

42,000

Newsline FULL PAGEFULL PAGE ORD, COLOR

1 20,000

20,000

News Week FULL PAGEFULL PAGE ORD, COLOR 1 3225-$ 3225-$

Times FULL PAGEFULL PAGE ORD, COLOR

1 3080-Us $

3080-Us $

Grand Total

Client: ABCActivity: Awareness CampaignAgency: XYZ

Channels Description TimeSpot

DurationDISCOUNTED RATE

Spot Rate

Total Cost

No Ins/Spot

No Sec

TRPs GRPs September-0819 20 21 22 23 24 25 26 27 28 29 30

FRI SAT SUNMON TUEWED

THU FRI SAT SUNMON TUE

QTV

RODP SEHR 8 20,000 2,667 32,000 12 96 1 12 2 2 2 2 2 2 RODP SEHR 33 20,000 11,000 66,000 6 198 1 6 1 1 1 1 1 1RODP IFTAR 33 25,500 14,025 98,175 7 231 1 7 2 1 1 1 1 1 RODP IFTAR 8 25,500 3,400 40,800 12 96 1 12 2 2 2 2 2 2

GRAND TOTAL

PAYABLE 236,975 37 621 4 37 4 3 3 3 3 3 3 3 3 3 3 3

ARY ONE WORLD

RODP11:00 PM --- 12:00

MIDNIGHT 8 20,000 2,667 120,000 45 360 1 45 3 3 3 3 3 3 3 3 3 3 3 3

RODP11:00 PM --- 12:00

MIDNIGHT 33 20,000 11,000 55,000 5 165 1 5 1 1 1 1

RODP11:00 AM --- 03:00

PM 8 7,500 1,000 31,000 31 248 2 62 2 2 2 2 3 2 2 2 2 2 2 2

RODP11:00 AM --- 03:00

PM 33 7,500 4,125 20,625 5 165 2 10 1 1 1 1 1

GRAND TOTAL

PAYABLE 226,625 86 938 6 122 5 6 6 6 6 6 6 6 6 5 6 6

PTV NEWS RODP

11:00 PM --- 12:00 MIDNIGHT

33 13,750 13,750 27,500 2 66 2 4 1 1

RODP11:00 PM --- 12:00

MIDNIGHT 8 3,334 3,334 80,016 24 192 2 48 4 4 4 4 4 4

$GRAND TOTAL

PAYABLE 107,516 26 258 4 52 5 4 4 0 0 0 0 4 4 5 0 0

EXPRESS

RODP10:00 Pm --- 11:00

Pm8 22,750 3,033 109,200 36 288 2 72 3 2 3 2 3 2 2 3 2 3 2 2

RODP10:00 Pm --- 11:00

Pm33 22,750 12,513 50,050 4 132 2 8 1 1 1 1

RODP01:00 AM --- 02:00

AM8 2,400 320 14,400 45 360 3 135 3 3 3 3 3 3 3 3 3 3 3 3

RODP01:00 AM --- 02:00

AM33 2,400 1,320 19,800 15 495 1 15 1 1 1 1 1 1 1 1 1 1 1 1

GRAND TOTAL

PAYABLE 193,450 100 1,275 8 230 7 6 8 6 7 7 6 8 6 7 6 7

HUM TV RODP

09:30 PM --- 10:30 PM

33 50,000 27,500 110,000 4 132 2 8 1

RODP09:30 PM --- 10:30

PM8 50,000 6,667 106,667 16 128 2 32 4

GRAND TOTAL

PAYABLE 216,667 20 260 4 40 0 0 0 0 0 0 0 0 0 0 0 5

ARY DIGITAL RODP10:00 PM --- 11:00

PM8 33,600 4,480 71,680 16 128 2 32 4

GRAND TOTAL

PAYABLE 145,600 20 260 4 40 0 0 0 0 0 0 0 0 0 0 0 5

An Example of a Media Schedule- Electronic

Final Note:

Media scheduling and other elements of the brand offering (packaging, publicity

releases, etc.) must be integrated so that a company does not miss opportunities for reaching the right audiences, at the right

time, in dynamic ways

A bad scenario: the media schedule begins running before the product is available

Marketing Management – A South Asian Perspective by Philip Kotler, Kevin Lane Keller, Abraham Koshy & Mithileshwar Jha, 13th Edition, Published by Pearson Education, Inc.

Strategic Marketing Management – Meeting The Global Marketing Challenges by Carol H. Anderson & Julian W. Vincze Published by Houghton Mifflin Company.

Principles of Advertising & IMC by Tom Duncan 2nd Edition, Published by McGraw-Hill Irwin.

Principles of Marketing by Philip Kotler & Gary Armstrong Thirteenth Edition, Published by Prentice Hall

Bibliography

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Advertising and IMC Media Planning