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All rights reserved.
PowerPoint Presentation by Charlie Cook
The University of West Alabama
Eighth Edition
Advertising Media:
Planning and Analysis
CHAPTER
11
1. Describe the major factors used in segmenting target
audiences for media planning purposes.
2. Explain the meaning of reach, frequency, gross rating
points, target rating points, effective reach, and other
media concepts.
3. Discuss the logic of the three-exposure hypothesis
and its role in media and vehicle selection.
4. Describe the use of the efficiency index procedure for
media selection.
Chapter Objectives
After reading this chapter you should be able to:
© 2010 South-Western, a part of Cengage Learning. All rights reserved. 11–2
5. Distinguish the differences among three forms of
advertising allocation: continuous, pulsed, and flighted
schedules.
6. Explain the principle of recency and its implications
for allocating advertising expenditures over time.
7. Perform cost-per-thousand calculations.
8. Review actual media plans.
Chapter Objectives (cont’d)
After reading this chapter you should be able to:
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Cengage Learning. All rights
reserved. 11–4
Media versus Vehicles
Media versus Vehicles
•
Media
Media
General communication methods that carry
General communication methods that carry
advertising messages
advertising messages
Examples: television, newspapers, and Internet
Examples: television, newspapers, and Internet
•
Vehicles
Vehicles
The specific broadcast programs or print choices in
The specific broadcast programs or print choices in
which advertisements are placed
which advertisements are placed
Example: the American Idol program
Example: the American Idol program
•
Each medium and vehicle has a unique set of
Each medium and vehicle has a unique set of
characteristics and virtues
characteristics and virtues
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Messages and Media:
Messages and Media:
A Hand-In-Glove Reaction
A Hand-In-Glove Reaction
•
Advertising message and media considerations
Advertising message and media considerations
are inextricably related
are inextricably related
—c
—c
reatives and media
reatives and media
specialists must team up to design ads
specialists must team up to design ads
•
Choice of media and vehicles requires a variety
Choice of media and vehicles requires a variety
of decisions
of decisions
General media categories
General media categories
Specific vehicles
Specific vehicles
Marcom budget allocations
Marcom budget allocations
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Selecting and Buying Media and Vehicles
Selecting and Buying Media and Vehicles
•
Choices:
Choices:
Traditional full-service ad agencies separately
Traditional full-service ad agencies separately
providing creative, planning, and media buying
providing creative, planning, and media buying
services for a client’s individual brands
services for a client’s individual brands
Single media buyer and planner agency providing
Single media buyer and planner agency providing
centralized media planning and buying services for all
centralized media planning and buying services for all
of the client’s brands
of the client’s brands
•
Takeaway:
Takeaway:
Creating effective messages is critical but it is just as
Creating effective messages is critical but it is just as
essential that the messages are placed in the right
essential that the messages are placed in the right
media and vehicles.
media and vehicles.
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The Media-Planning Process
The Media-Planning Process
•
Media Planning
Media Planning
Is the design of a strategy that will best allocate
Is the design of a strategy that will best allocate
investments in advertising time and space to
investments in advertising time and space to
achieve the firm’s marketing objectives
achieve the firm’s marketing objectives
Involves coordinating three levels of strategy:
Involves coordinating three levels of strategy:
marketing, advertising, and media strategy
marketing, advertising, and media strategy
•
Media Strategy Activities
Media Strategy Activities
1.
1.
Selecting the target audience
Selecting the target audience
2.
2.
Specifying media objectives
Specifying media objectives
3.
3.
Selecting media categories and vehicles
Selecting media categories and vehicles
4.
4.
Buying media
Buying media
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Model of the Media-Planning Process
Figure 11.1
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Selecting the Target Audience
Selecting the Target Audience
Buyographics
Geographic
Demographic
Lifestyle/
Psychographics
Segmentation
Factors
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Specifying Media Objectives
Specifying Media Objectives
Issues in Setting
Media Objectives
Frequency
Reach
Weight
Cost
Recency
Continuity
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Issues in Setting Media Objectives
Issues in Setting Media Objectives
Reach
Reach
What proportion of the population should be reached with
What proportion of the population should be reached with
advertising message during specified period?
advertising message during specified period?
Frequency
Frequency
How frequently should audience be exposed to message
How frequently should audience be exposed to message
during this period?
during this period?
Weight
Weight
How much total advertising is needed to accomplish reach
How much total advertising is needed to accomplish reach
and frequency objectives?
and frequency objectives?
Continuity
Continuity
How should the advertising budget be allocated over time?
How should the advertising budget be allocated over time?
Recency
Recency
How close to the time of purchase should the target
How close to the time of purchase should the target
audience be exposed to the advertising message?
audience be exposed to the advertising message?
Cost
Cost
What is the most economically justifiable way to accomplish
What is the most economically justifiable way to accomplish
objectives?
objectives?
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Media Objective: Reach
Media Objective: Reach
•
Reach
Reach
Is the percentage of the target audience exposed, at
Is the percentage of the target audience exposed, at
least once, during a specified time frame to the
least once, during a specified time frame to the
vehicles in which the advertising message is inserted
vehicles in which the advertising message is inserted
Also known as 1+, Net coverage, unduplicated
Also known as 1+, Net coverage, unduplicated
audience, and cumulative audience (cume)
audience, and cumulative audience (cume)
OTS = opportunity to see
OTS = opportunity to see
•
Determinants of Reach
Determinants of Reach
Use of multiple media
Use of multiple media
Diversification of vehicles within each medium
Diversification of vehicles within each medium
Varying dayparts for radio and TV advertising
Varying dayparts for radio and TV advertising
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Media Objective: Frequency
Media Objective: Frequency
•
Frequency
Frequency
Is the average number of times during a media-
Is the average number of times during a media-
planning period that the target audience members are
planning period that the target audience members are
exposed to media vehicles carrying a brand’s
exposed to media vehicles carrying a brand’s
advertising message.
advertising message.
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Hypothetical Frequency Distribution for the Fortwo
Advertised in Cosmopolitan Magazine
Table 11.1
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Media Objective: Weight
Media Objective: Weight
•
Weight Defined
Weight Defined
The advertising volume required to accomplish
The advertising volume required to accomplish
advertising objectives
advertising objectives
•
Ratings
Ratings
The percentage of an audience that has an
The percentage of an audience that has an
opportunity to see an advertisement placed in a
opportunity to see an advertisement placed in a
particular vehicle
particular vehicle
•
Weight Metrics:
Weight Metrics:
Gross rating points (GRPs)
Gross rating points (GRPs)
Target ratings
Target ratings
Effective ratings
Effective ratings
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Weight Metrics
Weight Metrics
•
Gross Rating Points (GRPs)
Gross Rating Points (GRPs)
Represent the gross weight that a particular
Represent the gross weight that a particular
advertising schedule is capable of delivering
advertising schedule is capable of delivering
—the
—the
sum of all vehicle ratings in a media schedule
sum of all vehicle ratings in a media schedule
GRPs = Reach (R)
GRPs = Reach (R)
×
×
Frequency (F)
Frequency (F)
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Weight Metrics (cont’d)
Weight Metrics (cont’d)
•
Target Rating Points (TRPs)
Target Rating Points (TRPs)
Are adjusted vehicle’s ratings that reflect only those
Are adjusted vehicle’s ratings that reflect only those
individuals who match the advertiser’s target
individuals who match the advertiser’s target
audience
audience
Indicate a media schedule’s net (non-wasted) weight
Indicate a media schedule’s net (non-wasted) weight
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Weight Metrics (cont’d)
Weight Metrics (cont’d)
•
The Concept of Effective Reach
The Concept of Effective Reach
Answers the question of how often does the target
Answers the question of how often does the target
audience have an opportunity to be exposed
audience have an opportunity to be exposed
Is that an advertising schedule is effective only if it
Is that an advertising schedule is effective only if it
does not reach members of target audience too few
does not reach members of target audience too few
or too many times
or too many times
•
Three-Exposure Hypothesis (Krugman)
Three-Exposure Hypothesis (Krugman)
A minimum of three exposures to
A minimum of three exposures to
an advertising
an advertising
message
message
needed for effective advertising
needed for effective advertising
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Weight Metrics (cont’d)
Weight Metrics (cont’d)
•
Effective Reach Planning in Advertising Practice
Effective Reach Planning in Advertising Practice
No fewer than three and no more than ten exposures
No fewer than three and no more than ten exposures
during a four-week media planning period
during a four-week media planning period
Use of multiple media
Use of multiple media
Subjective factors must be considered
Subjective factors must be considered
•
Effective Rating Points (ERPs)
Effective Rating Points (ERPs)
ERPs = effective reach (or exposures) × frequency
ERPs = effective reach (or exposures) × frequency
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Alternative Media Plans Based on a $25 Million
Annual Budget and Four-Week Media Analysis
Table 11.2
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Weight Metrics (cont’d)
Weight Metrics (cont’d)
•
An Alternative Approach: Frequency Value
An Alternative Approach: Frequency Value
Planning
Planning
The objective is to select the media schedule that
The objective is to select the media schedule that
generates the most exposure value per GRP.
generates the most exposure value per GRP.
Step 1.
Step 1.
Estimate the exposure utilities for OTS that a
Estimate the exposure utilities for OTS that a
schedule produces.
schedule produces.
Step 2.
Step 2.
Estimate the frequency distribution of the various
Estimate the frequency distribution of the various
media schedules that are under consideration.
media schedules that are under consideration.
Step 3.
Step 3.
Estimate the OTS value at each OTS level.
Estimate the OTS value at each OTS level.
Step 4.
Step 4.
Determine the total value across all OTS levels.
Determine the total value across all OTS levels.
Step 5.
Step 5.
Develop an index of exposure efficiency.
Develop an index of exposure efficiency.
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Exposure Utilities for Different OTS Levels
Table 11.3
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Frequency Distributions and Valuations
of Two Media Schedules
Table 11.4
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Media Objective: Continuity
Media Objective: Continuity
•
Continuity
Continuity
Involves how advertising is allocated during the
Involves how advertising is allocated during the
course of an advertising campaign.
course of an advertising campaign.
Addresses the fundamental issue of how the media
Addresses the fundamental issue of how the media
budget be distributed:
budget be distributed:
Uniformly throughout the period of the advertising campaign
Uniformly throughout the period of the advertising campaign
In a concentrated period to achieve maximum impact
In a concentrated period to achieve maximum impact
Some other schedule between these two choices
Some other schedule between these two choices
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Allocating the Advertising Budget
Allocating the Advertising Budget
Continuous
Schedule
Pulsing
Schedule
Flighting
Schedule
Budgeting
Alternatives