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CHAPTER 9 Media Planning & Buying in the 21st Century How do media work?

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Media Planning & Buying in the 21st Century

CHAPTER 9

How do media work?

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Media Planning & Buying in the 21st Century

Agenda

IntroductionARF Response ModelEffective ReachRecencyShare of Voice/Share of MarketPurchase FunnelEngagement

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Media Planning & Buying in the 21st Century

“If you don’t know where you are going, any road will get you there”

-- Cheshire Cat

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Media Planning & Buying in the 21st Century

1. ARF Response Model

In 1961, the Advertising Research Foundation (ARF) developed a media communications model describing the progression of media effects

Recommendation that media should only be compared on the same level of the model.

The model was revised in the 2000s to reflect the introduction of digital and new media.

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Media Planning & Buying in the 21st Century

ARF Response Model

Vehicle Distribution

Vehicle Exposure

Advertising Exposure

Advertising Attentiveness

Advertising Communication

Advertising Persuasion

Advertising Response

Sales Response

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Media Planning & Buying in the 21st Century

2. Effective Reach

Effective Reach is based on the premise that a target audience must be reached often enough to elicit a response, but not too often. If not reached often enough, advertiser will receive poor

results and budget will be wasted. If reached too often (beyond point of diminishing returns”),

incremental dollars may be wasted.

ANA guidelines were that audiences should be reached 3-10 times (advertising exposure, not vehicle exposure).

Fewer than 3 exposures – no effect/dollars wasted More then 10 exposures – diminishing returns

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Media Planning & Buying in the 21st Century

Rationale for Effective Reach: memory decay; need for reinforcement

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Media Planning & Buying in the 21st Century

Zielskie’s Research

0

10

20

30

40

50

60

0 4 8 12 16 20 24 28 32 36 40 44 48 52

WEEK OF THE YEAR

PE

RC

EN

T R

EC

AL

L

13 exposures at four-week intervals

1 exposure per week for 13 weeks

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Media Planning & Buying in the 21st Century

A Plan Based on Effective Reach

Actual vs. Hypothetical Schedule

0

5

10

15

20

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

NUMBER OF EXPOSURES

% Reach

ACTUAL SCHEDULE

HYPOTHETICAL SCHEDULE

EFFECTIVE EXPOSURE

Theoretically Optimal TV Schedule

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Media Planning & Buying in the 21st Century

Adstock

A term fashioned by British researcher, Simon Broadbent, to describe the prolonged or lagged effect of advertising on consumer behavior.

Also known as “carryover” effectSuggests that there is long term building of

awareness and other measures of advertising effects

Each successive exposure builds incremental awareness

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Media Planning & Buying in the 21st Century

3. Recency

Recency theory challenges the foundations of Effective Reach

Recency maintains that, rather than frequency, what is important is to reach the maximum number of target persons weekly just prior to purchase

Recency looks at the role of advertising as being one of reminding consumers to buy X just prior to going to the store

Recency has major media planning and buying implications, e.g.: Effective reach strives to reach the maximum percentage of

the target within the effective range of frequency In contrast, Recency advocates maximizing weekly reach

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Media Planning & Buying in the 21st Century

4. Share of Voice

Share of Voice (SOV)

Share of Mind

Share of Market

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Media Planning & Buying in the 21st Century

5. Purchase Funnel

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Media Planning & Buying in the 21st Century

6. Engagement

Engagement measures the extent to which a consumer has a meaningful brand experience when exposed to commercial advertising or sponsorships.