Media Workshop

2002 PEPSI MEDIA TEAM

The place of the Media.

At the beginning was

After .

= TTL

AND NOW IS
ADVERTISING

PR

BTL

MEDIA

Media channels

TV
PRESS
RADIO
OOH
TRANSIT
CINEMA
INTERNET
NEW MEDIA

No POSM, No CATALOGUE

MEDIA Agency Structure

Interactionis the secret

Media - The Keys, The Secrets!

There is no point in creating great advertising if, at the

end of the day, it is not seen by potential buyers.
buyers

1. What is Media Buying?

Objectives

Not - to buy 300 GRPs in May

The Role of The Media Buyer

Negociation
To achieve the greatest value, not simply minimum rate.
Media Time and Space are Commodities, Cost of these Commodities is negotiable.

The negotiation results depend on three factors:

the negotiator (agency)

the medium
the client

Negotiator

knowledge of the market place and dynamics

negotiation skills and experience
negotiation tactics
market importance

Improvement
Quality - an increasingly important element.

share vs media competition

cost vs ratecard/station price
volume of business, short/long term
position
added value e.g. research, free space, etc

1. What is Media Planning?

The Role of The Media Planner

Determining how advertising budget is best deployed across and within the
various media
Delivers the advertising message to the most relevant audience in the
manner most appropriate to the campaign objectives.
To provide the most effective platform for the creative solution
To think in terms of planning a series of communications.
To understand consumers relationship with the wide variety of media they
consume.
To look for new and innovative media approaches.

The Media Plan - A Simple

Checklist
The 5 Rs
Right Person
Right Place
Right Time
Right Weight
Right Tone

Right Place
Media Selection
Creative

ability to achieve the desired

response

Media

efficiency in reaching the

target audience

Right Weight
1. How may times do the target audience need to see our
advertising to achieve the desired response?
Calculate the effective frequency required
2. What % of the target audience do we want to see the ad at
the target effective frequency and in what time period?
Define the effective coverage required
3. How many GRPs are needed to deliver the effective
frequency and coverage target?
Calculate the advertising weight required

Right Time
A function of

Seasonality of business
volume
Media costs
Integrated communication
Launch dates
Ad decay factors
Competitive activity
Coverage variations

Right Tone
The media itself acts as a forum in which the message is
received.
Complimentary of message and the consumer relationship with
the medium will maximise the advertising effect.
Careful placement both across and within media can produce
disproportionate results.

The Media Process

Communication
Brief
Media
Brief
Strategic
Media Plan

Implementation
Media Plan

Input & media related guidance for the

Business plan.
Discussion between Client, Creative & Media
company to agree media objectives.
Reflecting the Brand / Product Business &
Communications objectives - long-term
Competitive & short-term Tactical.
Translating the Strategic objectives into
detailed Media Selection and Usage at
the best possible Cost

The Media Process

Media Buying
Strategy

Formulating Negotiation Objectives &

Techniques in the light of market conditions /
movement.

Media Buying
Implementation

Taking the agreed plan into the market &

negotiating/achieving best price.

Post Evaluation

Establishing Accountability and integrating

Learning.

MEDIA TERMINOLOGY

Media Terms - Universe

The total households or persons in a given population or
target group
A universe can be broad (all adults) or segmented / core (adults 18-24)
Estimates usually provided by research companies
(e.g., CSOP, etc.)
Universe for television ratings are based on households with televisions or
4+ individuals in homes with television (CSOP)
For a consumer product like laundry detergent might be all women age
18-49

Total universe = 10 Households

Total universe = 10 Women

Media Terms - RATINGS

A rating is the percentage of individuals or homes tuned to a
particular television or radio program.
Expressed in numbers, ratings are called impressions or
Women 25-49
exposures.
(Universe = 1,000M)

Program
News

Impressions
(M)

Ratings

100

10

Football

50

Drama

150

15

Broadcasters use ratings to determine a shows popularity and as a criteria

for establishing prices.
Impressions = GRPs or rating/100 x Universe

Ratings=GI/U x100

Media Terms GRPs / TRPs / AFFINITY

GRPs are the percent of the total audience potentially exposed to an
advertising message. (only for one spot)
Gross Rating Points (GRPs) are sum of ratings on all individuals 4+
Target Rating

In Romania, the standard target for calculating GRPs is 4+, Urban

Points (TRPs) are sum of ratings for a target group (e.g., 15-35,

urb.)

Examples of GRPs
TV Program A

10.0

TV Program B

12.0

TV Program C
Total GRPs

8.0
30.0

Total Market
Market
GRPs
Romania
2,200
Bulgaria
1,200
Macedonia
1,000
Hungary
0
TOTAL
4,400

You cant do this

Media Terms GRPs / Duplication / Reach

When added together, GRPs sometimes exceed 100 (1GRPs = 1%) since
they do not eliminate duplication or repeated exposure to the media vehicles.

SPOT A

SPOT B

15:30

16:00

=> 28/20 * 100

Reach=I unique /U x100

REACH 1+

GRPs = REACH * FREQUENCY

17/20 * 100

85%

Media Terms REACH / OTS & FREQUENCY

An estimate of the percent of the target audience who have the opportunity to
see your advertising message at least one time (Reach 1+)
Once a person is counted in the reach, that person is not counted again no
matter how many times they are exposed to the add (valid for 1+)
As spots/insertions are added to the media schedule, only the audience not
previously exposed are added to the reach total. Therefore, reach can never be
greater than 100%

FREQUENCY - number of times an audience sees the advertising message

OTS - average number of times an audience sees the advertising message
GRPs / REACH1+ = OTS

Media Terms REACH & FREQUENCY

Reach

and frequency are used to compare different media

plan options to determine which produces the best results
relative to the plans objectives.

Reach
Frequency
GRPs

Plan A
60
4.0
240

Plan B
80
3.0
240

Media Quiz!
1. A campaign has achieved 75% cover 1+. People saw the ad in average 6.80
times. How many GRPs were generated?
2. A campaign achieved 388 GRPs and 9.7 OTS. How much percent of the
target audience saw the campaign at least once?
3. A campaign achieved 396 GRPs and 88% net reach. How often did one
average person of the target audience see the commercial?
4. A target audience includes 2,000,000 people. Our campaign generated
8,000,000 impressions and 400 GRPs. What was the net reach?

4. COST

Cost-Per-Thousand (CPT)
The cost to deliver one thousand impressions*
to a target audience
Sometimes cost-per-thousands are referred to as
Cost Efficiencies or Efficiencies
Media Cost
Gross Impressions (in Thousands)

* Not 1000 people

= CPT

Cost-Per-Thousand (CPT) Example

Football program delivers 2,500,000 men impressions

Spot in football costs $2500
CPT = $2,500 = $1
2,500

CPTs are used to compare the efficiency of different media vehicles or

schedules
If Football has a $20 CPT against men and News has a $38 CPT,
Football is more efficient on a CPT basis
than News
May not be effective but it is less costly to buy men in Football
than in News

Cost Per Point (CPP)

Represents the costs required to reach 1% of the
universe (1 GRP)
In practice, there are two kind of CPPs used:
CPP cost for the buying audience (usually, all, urban)
TCPP Target Cost per Point cost for reaching 1% of the
campaign target (15-35, med & high income)
The formula is the same

CPP =

TOTAL COST
TOTAL GRPs

Cost-Per-Point (CPP)
The most common use of CPP data is in developing the media
plan
CPPs are always expressed relative to a specific audience (e.g.,
W18-34, W25-49)
CPPs are used to help compare costs within a schedule
Cant be added across targets
Cant be compared across targets due to different universe sizes
All Urban CPP is the the one taken into consideration when
talking of TV deals

CPTs and CPPs

It is possible to convert CPP to

CPT (and vice versa)

Similarly, the CPP can be derived

by taking the CPT and multiplying
by 1% of the universe

Media Quiz!

A campaign generated 8,000,000 impressions. The cost of the campaign

was 240,000 $. What was the CPT?

2. A campaign generated 1,200 GRPs. The cost of the campaign was

240,000 $. What was the CPP?

3. A campaign achieved 350 GRPs. 5,250,000 impressions were generated.

How big is the target audience?

Answers
1

CPT = 30$

2 CPP = 200$
3 TG = 1,500,000