Slide 1

Fundamentals of Media Planning

1

Media planning is the process of designing acourse of action which shows how advertisingtime and space can be best utilized to achievethe marketing objectives.David Aaker

2

So, in a nutshell To ensure that the communication

reaches a predetermined number of people

with certain common characteristics

with adequate degree of impact

at the right timeand at the lowest cost.

3

It Starts with a Media BriefMarketing ObjectiveSales, Awareness, Market ShareCommunication ObjectiveTop of the mind, Changing attitudes, Checking declineTarget AudienceDefinitionTarget MarketsPrioritizationCompetitive InformationCompetition and Market ShareSeasonalitySeasonality of category/brand salesBudgetOften client specified or could be need based

4

The Media Work Flow

The 6 Pillars of Media Planning

6

Pillar #1: Competitive AnalysisReported expenditures Competitors spending patterns, scheduling strategies/tactics, geographic skews etc.Creative executions Positioning, Complexity of message, Target Audience, Communication ObjectivesMarket intelligence Likely happenings, degree of success of past competitive strategies etc.

Primary Target AudienceThe core group of people to whom we want to convey the message.

Secondary Target AudienceThe next important group.

InfluencersPillar #2: Target Audience

8

How We Define ThemDemographicsSEC; MHI;Sex; AgeOccupationPsychographicsIntrovert, Extrovert, GregariousLife StyleGoes to movie/restaurant once a weekProduct Usagewhen bought? Profile of the HHSo a definition of a target audience for a high end womens cosmetic could be- Female, 25-34, SEC A, Middle level Exec, Fashionable, Living in a Metro

9

Deals with the relative importance of each marketand prioritizing in the right order.

Basis of prioritization Market Size Current Sales Target Sales Market Potential Competitive Activity Understanding of certain indices of measurement CDI BDI MOIPillar #3: The Target Markets

10

Category Development Index (CDI) :An index which measures the relative per capita consumption of a category of product across a geographical area and is calculated by dividing the % category sales in a market by the % TG population in the same market.Brand Development Index (BDI) :An index which measures the relative per capita consumption of a brand across a geographical area and is calculated by dividing the % brand sales in a market by the % TG population in the same market.Market Opportunity Index (MOI) :A measure of the potential provided for a brand by a specific geographical market. Calculated as the ratio of CDI to BDI. Indices of Measurement

11

Pillar #4: Media EnvironmentYou cant judge a medium by its cover, there is more to it than meets the eye

12

Medium as VehicleEfficiency of a particular medium/vehicle.Rationale behind selection of a particular medium or media vehicle.Medium as MediumThe inherent characteristics of a particular medium and using them best to the brands objectives.Medium as Message The characteristics of each medium that engage the viewer in different ways.Pillar #4: Media Environment

13

Medium As VehicleReach or CoveragePrint (Dailies) : High Reach, Local Coverage.TV : High Reach, Local / Mass Coverage.Entry cost The cost of running a campaign in a particular medium. High for both TV and print. Frequency of using the mediumHow often the audience uses it. High for both TV and print. TV- Hrs watched / week, Dailies Hrs read / week.

14

Medium As MediumDuration ( transitory or semi-permanent )TV : Fleeting exposure.Magazines : Long shelf lifeReadershipColour / Movement / SoundTV : Combines sound, movement and colourScope of extended argumentTV : Passive medium, Low scope of extended argumentPrint : Active medium, hence scope of argument highReproduction QualityGood in Magazines and TV

15

Medium As Message

Every medium has its own characteristic when it comes engaging the medium in its own unique way

the medium through which a person encounters a particular piece of content would have an effect on the individual's understanding of it for e.g. a chocolate ad targeted at kids when played on kids channel could have a different impact on him due to his engagement with the medium

16

Pillar #5: Media Mix & Weight SettingWhat & How Much Is Enough ?

17

What is the right Media Mix ?

Role of Media

FactorsTVDailiesMagazinesImageHighLowHighImpactHighHighHighMemorabilityHighLowMediumInformationLowHighHighFocused TargetingMediumHighHighImmediacyMediumHighLow

How Much Is Enough ?Task-ledhow much advertising is needed to achieve the desired effect or response?Budget-ledhow much advertising will the budget buy?Usually start with a task-led approach but then modify it to fit into the available budgetThe weight needed will depend on :the size of the advertising taskthe medium chosenthe competitive environment

20

Reach Or Frequency ?A given budget will buy a given level of advertising weightThere is a degree of choice between reach (the number of people) and frequency (the number of times we reach them)The balance between reach and frequency will depend on the task in handIdeally, we would reachALL OF THE PEOPLE ALL OF THE TIMEBut, if this is unaffordable, then isSOME OF THE PEOPLE ALL OF THE TIMEbetter or worse thanALL OF THE PEOPLE SOME OF THE TIME?

21

Establishing Communication PrioritiesEFFECTIVE FREQUENCYHow many times do we need to expose the message to the target audience in a defined period?EFFECTIVE REACHWhat proportion of the target audience do we need to cover at the effective frequency level?CONTINUITYAt what intervals must the exposure occur?

From these the planner must establish communication priorities

22

1. Effective Frequency What level of frequency is effective?Standard TheoryEmphasizes the value of 3 exposures ..First exposure : What is it?attention-getting, even if disregardedSecond exposure : What of it?does it have personal relevance? (the sale)Third exposure : What am I going to do about it?what action am I going to take?Therefore, just one exposure regarded as ineffective

23

That there is a maximum level above which there is either no further observed effect or significant diminishing returnsThe TheoryThat there is a minimum advertising exposure level for a product, below which there is no observed effect on the advertising goal (awareness, sales, etc. )Within this range lies the band of effective frequencybroad acceptance within the industry that a frequency of 2 represents a minimum effective exposure level ,and 8 a maximum effective level over a 4-week period

What level of frequency is effective?1. Effective Frequency

24

What level of frequency is effective for my brand ?A large number of influences create a need for either a greater or a lesser frequency within a defined period of time - they vary in relevance and importance to each individual productThe ultimate decision on the effective frequency level for an individual product involves subjective judgement

Establishing the LevelWithin the broad minimum/maximum exposure levels, how can we then determine what level is appropriate for an individual product?1. Effective Frequency

25

Setting effective reach targets is a trade-off betweenachieving the highest level of reach at the effective frequency level, andminimizing the diminishing return of each additional GRP

Suppose we have decided that effective frequency is 4+, the next issue is effective reachwhat % of the target group do we need to cover at the effective frequency level?Ideally 100%, but thats impractical2. Effective Reach

26

3. ContinuityHow many weeks of advertising is required? Continuity is important because advertising decaysDecay is the rate at which spontaneous brand awareness declines after advertising stopsConsumers first forget brand benefits and then the brand itselfThe rate of decay is broadly constant for an individual campaign after advertising stops

27

3. Continuity But decay rates vary by campaign, depending on: product and life stages the advertising medium creative execution competitive environmentAdvertising effort must therefore be sustained at regular intervals if awareness is to be built or maintained

28

Erwin Ephrons Recency Model

Disputes relevance of effective frequency today Brand selection influenced by advtg - hence reach consumers when they are ready to buy As purchases occur throughout the year, advertise continuously : rent-the-shelf, so brand message will be waiting

THEREFORE, PLAN FOR WEEKLY REACH The concept

29

An advertising exposure is most effective close to the purchase consumers are in a receptive frame of mind with an ability to act immediatelyClose to the purchase, one exposure is most effective Therefore. Improve the cost effectiveness of advertising by shifting weight to weeks i.e use the frequency money to buy more weeks of advtg and reach more prospects ready to buy in those weeks

Erwin Ephrons Recency Model

30

Model operates in marketing vacuum No consideration given to market share, distribution, or marketing objectives and strategiesMaintaining awareness is not primary communication goal of most advertising campaigns Therefore frequency does play an important role in advertising effortsFrequency is important for creating long-term benefits of brand equity ProblemsErwin Ephrons Recency Model

31

Recency vs Effective Frequency RecencyLarge and familiar brandsCategories with low purchase cycles - impulse led categories Effective FrequencyWhen the consumer is being taughtHighly competitive market situationsNeed to drive a marketing objective/ consumer promotion* Cannot be generalized across brands, markets or creative

32

Pillar #6: SchedulingContinuity

Flighting

PulsingMedia weight scheduled for many weeksthroughout year

Intermittent, with gaps in advertising

Continuous advtg with heavier weight in somemonths - flighting and continuity combined

33

Scheduling PatternsContinuityPulsingFlighting

Covers entire purchase cycleConstant reminderImproves media discountsSimilar to ContinuityAllows for timing deviationsUsed due to budget limitationsSharp seasonal fluctuationsCompetitive advantageAffordabilityAffordabilityConsumers are always buying the productConsumers forget during non-advtg periods

PatternProsCons

34

To Sum Up A Media Plan must evolve from and be fully integrated with Marketing, Advertising and Creative objectives

35

Current Databases, Research & ToolsAudit Bureau of Circulation:Audited Circulation of registered publicationsTracks net paid sales for publicationsCirculation by state/district/city/editionUpdated every 6 months

Indian Readership Survey (IRS): Masthead questionnaire, Interviewer assistedUniverse 12+yrs2.5 lac Samples the biggest survey of its kind in the countryRolling survey every quarterTop Metros to villages