World of media

Media is
y y y y y

y Media is Strategic planning for a marketers

advertising budget Media is media management, program/content development, station management, etc. Media is Buying and selling time and space Media is media research and analysis Media is Strategic decision-making on all fronts Advertising makes media happen

A Brief History of Media

y Todays media has evolved from ancient

times: posters, hawkers, graffiti and coins

y Print and modern media y 1455 Guttenberg develops printing with moveable type. y 1650 first daily newspaper and the first newspaper ads, in Germany y 1841 the first US ad agency opens its doors, primarily a media buying/broker service y 1892 the four-color rotary press is invented and magazines take off

Example: Campbells Soup An early media success

y Started with posters in transit

advertising, moved on to newspapers, and then to magazines.

y By 1914, Campbells had dropped newspapers completely in

favor of magazines

Messages and Media: A Hand-In-Glove Reaction

y Advertisers are placing more emphasis than ever on media

planning. y The choice of media and vehicles can be the most complicated of marcom decisions.

Media Terminology
Media Planning Media Objectives Media Strategy A series of decisions involving the delivery of messages to audiences Goals to be attained by the media strategy and program Decisions on how the media objectives can be attained The various categories of delivery systems, including broadcast and print media Either radio or television network or local station broadcasts
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Media

Broadcast Media

Media Terminology
Print Media Media Vehicle Publications such as newspapers, magazines, direct mail, outdoor, etc. The specific carrier within a medium category Number of different audience members exposed at least once in a given time period The potential audience that might receive the message through the vehicle The number of times the receiver is exposed to the media vehicle in a specific time period
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Reach

Coverage

Frequency

Media Versus Vehicles

y Media are the general communication methods that carry

advertising messagestelevision, magazines, newspapers, and so on.

y Vehicles are the specific broadcast programs or print choices in

which advertisements are placed.

y Each medium and vehicle has a unique set of characteristics and

virtues.

y The forms of communication through which advertising

Advertising Media

reaches its audience y Newspapers

y Relatively inexpensive and timely; short life span

y Magazines y Reach a specific market segment; more prestigious than newspapers; high cost; lack of timeliness y Direct mail y Most selective; effectiveness can be measured; email

Advertising Media (contd)

y Yellow pages advertising y Print and online; local; purchased for 1 year y Out-of-home advertising y Short promotional messages on billboards, posters, signs, and vehicles; focuses on geographic area; fairly inexpensive y Television y The primary medium for larger firms trying to reach national or regional markets y Network time; local time; sponsoring a show; spot time; infomercials

y Radio

Advertising Media (contd)

y Offers selectivity; most accessible medium; can be less

expensive than other media

y Internet
y Increasingly popular; can be expensive; potentially large

audience; can target precisely; effectiveness is questionable y Banner and button ads; sponsorship ads; keyword ads; interstitials

Broadcast Media - TV
y Invented by Philo Farnsworth y Only 16 years old when he patented y He was 21 when he assembled the first TV y The first TV commercial y Produced for Royal Crown Cola y Penetration of TV sets exploded in the 50s largely

because of accessibility
y Mass production lowers prices y Department store credit plans make it easy to buy

Broadcast Media - Cable TV

y Started in the 50s y Really took off in the 80s y Three major developments contributed y Domestic satellite relay systems y TV superstations y Pay cable services y Cable Today y One of the fastest growing media y Over $19 billion in advertising revenues

Television Pros and Cons

Advantages Disadvantages

Mass Coverage High Reach Impact of Sight, Sound and Motion High Prestige Low Cost Per Exposure Attention Getting Favorable Image
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Low Selectivity Short Message Life High Absolute Cost High Production Cost Clutter

Radio Pros and Cons

Advantages Disadvantages

Local Coverage Low Cost High Frequency Flexible Low Production Cost Well-segmented Audience

Audio Only Clutter Low Attention Getting Fleeting Message

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Todays Media World

y Big Business
y Time Warner at #1 ($34b), significantly more than #2 Comcast

($27b)
y Three major media categories
y Print including newspapers, magazines and out-of-home y Broadcast including radio and TV y Other media including the mailbox, the telephone and the

computer

Broadcast Media

y Radio is a powerful niche media y With a vast penetration, almost every home in America has a radio, the average home has 6 y with a station format to fit almost any taste y With a very local emphasis y Television is almost everything to advertisers y Television in almost every home y The average home has 2.5 TV sets

A Television Primer
y Four kinds of TV y Network y National Cable y Syndication y Local y Six ways to buy TV y Nationally:

y Network, National Spot, National Cable

y Locally: y Local Spot, Syndication, Non-network Cable

Network Television
y Five broadcast networks
y UPN and WB combined in 2006 to form the CW network

y Dramatically decreasing audience share

Declining Network Television Ratings

Major Network Ratings Erosion by Daypart
Average ABC/CBS/NBC Household Rating - Spring 18 16 14 12 10 8 6 4 2 0 1970 1980 1990 2000 Daytime Avg. Rating Primetime Avg. Rating

Network Television
y Five broadcast networks y Dramatically decreasing audience share y Network O&Os and affiliates y Networks pay the cost of programming y Local stations surrender advertising time and dollars to the networks (about 90%)

Syndicated Television
y Syndicators sell, license and distribute programming to

TV stations
y First-run original programs like talk shows and game shows y Re-run old (and not so old) off-network shows like ER and Law

& Order
y Syndicators used to wait (two to three years) before

syndicating re-runs, but demand is so strong many shows now go to re-runs after one year.

Consumers & Media

y A media saturated culture y Advertising is everywhere y As new media emerge, Americans shift their time spent

with the old media to accommodate the new y Remember, the US media belongs to you
y You choose.

y Fragmentation has forced a media response.

Media Conglomerates
branding is the new wave y Competition is intense y Branding is a way to differentiate

y Media is big business where the stakes are high and

y FOX product geared to a younger audience y ESPN product is everything sports (ESPN Zone, ESPN Radio,

ESPN magazine)
y Entertainment Brands y A mixed media work of art y Publicity, trailers, advertising, merchandising all work to create a short-lived cultural event

Print Media

y Newspapers slipping still a major force. y Circulation dropping significantly y Advertising spending still increasing, about 2/3 of total newspaper revenues y Alternative newspapers making a name for themselves y Magazines business is going strong with new growth

particularly in the special interest and business titles y Out-of-home a real growth area, not just billboards any more

Magazine Pros and Cons

Advantages Disadvantages

Segmentation Potential Quality Reproduction High Information Content Longevity Multiple Readers

Long Lead Time for Ad Placement Visual Only Lack of Flexibility

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Newspaper Pros and Cons

Advantages Disadvantages

High Coverage Low Cost Short Lead Time for Placing Ads Ads Can Be Placed in Interest Sections Timely (Current Ads) Reader Controls Exposure Can Be Used for Coupons
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Short Life Clutter Low Attention Getting Poor Reproduction Quality Selective Reader Exposure

Outdoor Pros and Cons

Advantages Disadvantages

Location Specific High Repetition Easily Noticed

Sort Exposure Time Short Ads Poor Image Local Restrictions

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Direct Mail Pros and Cons

Advantages Disadvantages

High Selectivity Reader Controls Exposure High Information Content Repeat Exposure Opportunities

High Cost Per Contact Poor Image (Junk Mail) Clutter

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Internet Pros and Cons

Advantages Disadvantages

User Selects Product Information User Attention and Involvement Interactive Relationship Direct Selling Potential Flexible Message Platform

Limited Creative Capabilities Websnarl (Crowded Access) Technology Limitations Few Valid Measurement Techniques Limited Reach

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Part 2

Media Planning and Strategy

The Media-Planning Process

Media planning The design of a strategy that shows how investments in advertising time and space will contribute to the achievement of marketing objectives.

Media Planning
Process of developing a plan of action for communicating messages
y to the right people (target) y at the right time, and y with the right frequency.

y Efficiency in media planning can be loosely defined as gaining

maximum impact or exposure at minimum cost to the client.

Media Planning Process

Marketing Plan

Advertising Plan

Creative Plan

Media Objectives

Media Strategies

Media Execution

Media Evaluation

Media Planning Process



Client provides relevant background information to agency in the form of a media brief.
1. 2. 3. 4. 5. 6.

Market Profile Product Media Profile Competitor Media Usage Target Market Profile Media Objectives Media Budget

The Media Plan

y Document that outlines all relevant details including:
y How a clients budget will be spent y Clearly defined objectives y Rationalized strategies y Precise execution details

Media Objectives


Clearly worded statements that outline what the media plan should accomplish.
1. 2. 3. 4. 5.

Who is the target market? What is the advertising message? Where are the market priorities? When is the best time to advertise? How many, often, long?

Media Strategies
y Numerous factors are considered for achieving objectives:
y y y y y y y y

Target Market Nature of Advertising Message Reach/Frequency/Continuity Market Coverage Best time to reach target Competitor media strategies Media alternatives Budget

Target Audience Coverage

Population excluding target market Target market Media coverage Media overexposure

Target Market Proportion

Full Market Coverage

Partial Market Coverage

Coverage Exceeding Market

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Media Coverage
Identifying the number of markets where advertising will occur.  National
 Regional  Key Market  Selective

Nature of Advertising Message

y Factual message y print & website y Emotional message y broadcast, online video & website y Promotional message y TV for awareness y Print, POP & website for details on how to enter y Brand-name awareness y outdoor &transit

Reach/Frequency/Continuity
y Reach
y How many?

y Frequency
y How often?

y Continuity
y How long?
y How flexible is the plan? Can it be altered?

Reach/Frequency/Continuity
y Reach
y How many?

y Frequency
y How often?

y Continuity
y How long?
y How flexible is the plan? Can it be altered?

Reach
y The total unduplicated audience [individuals or households]

exposed to a message one or more times in a period (week).

y Reach Formula = # households tuned in

# households in area = 50 000 or 1 250 000 5 = 20%

y
y y

Frequency
y The average number of times an audience is exposed to a

message over a period of time (week).

y

Frequency Formula = Total Exposures

   

Reach = 250 000 50 000 = 5.0

Reach and Frequency

A. Reach of One Program B. Reach of Two Programs

Total market audience reached C. Duplicated Reach of Both

Total market audience reached D. Unduplicated Reach of Both

Total reached with both shows

Total reach less duplicate

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Graph of Effective Reach

Figure 10-22

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Marketing Factors Determining Frequency

Marketing Factors

Brand Loyalty

Brand Share

Usage Cycle

Brand History

Share of Voice

Purchase Cycles

Target Group

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Message Factors Determining Frequency

Message or Creative Factors

Message Complexity Message Uniqueness New Vs. Continuing Campaigns Image Versus Product Sell Message Variation Wearout Advertising Units
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Media Factors Determining Frequency

Clutter

Scheduling

Repeat Exposures

Media Factors
Attentiveness
Number of Media Used Editorial Environment

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Best Time to Reach Target

Impressions
yTotal number of commercial occasions scheduled,

multiplied by the total target audience potentially exposed to each occasion.

y Impressions = Reach X Frequency = 100 000 X 3 = 300 000 y Over an 8-week schedule the gross impressions would be: 2 400 000 (300 000 X 8)

Gross Rating Points (GRPs)

GRPs refer to the weight of a media schedule against a pre-determined target audience.
GRP = Reach (%) x Frequency = 50 x 3.5 = 175

Continuity, Engagement, & Flexibility

Continuity:
y The length of time required to generate impact on a target

audience.

Engagement:
y The degree of involvement a person has with the media when they

are using it.

Flexibility:
y The ability to modify media spending plans throughout the

scheduled advertising period.

Budget Influence on Media Strategy

Small Budget Large Budget Reach Frequency Continuity Market Coverage Timing Competition Media Usage Type (Choice) of Media

Limited strategy

Flexible strategy

Selective Media Usage

Media Mix: Primary & Secondary Media

Media Execution
y Fine tuning the strategy and translating it into specific action

plans.
y Media Selection Process

Cost per Thousand (CPM)

Cost incurred in delivering a message to one thousand individuals.
The formula for calculating CPM is as follows: Unit Cost of Message Circulation (000)

CPM

Determining Relative Cost of Media-Print

Cost per thousand (CPM)

Cost of ad space (absolute cost)

CPM =

X 1,000

Circulation

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Determining Relative Cost of MediaBroadcast

Cost per rating point (CPRP)

Cost of commercial time

CPRP =

Program rating

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Media Scheduling and Budgeting

y Media schedule is normally presented in a calendar format, often

referred to as a blocking chart.

y Outlined in one or two pages
y Media usage y Market coverage y Weight levels y GRPs y Reach y Frequency y Timing

Three Scheduling Methods

Continuity

Flighting

Pulsing

Jan

Feb Mar

Apr May Jun

Jul

Aug Sep Oct Nov Dec

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Advertising Flights

Media Buying
y Once the media plan is approved, the media buyer negotiates

the buy with media representatives to obtain the most effective and efficient buy within the guidelines of the plan. y User-friendly software developed by BBM Bureau of Measurement, Nielsen Media Research, etc. lets media buyers makes reasoned and detailed decisions.

The Media Budget

Factors affecting budget size:
 Size of Customer Base  Degree of Competition  Stage in the Product Life Cycle  Product Characteristics  Management Philosophy about Advertising

Budgeting Methods
1. Percentage of Sales 2. Fixed Sum per Unit Sold 3. Industry Average (Competition Spending) 4. Task (Objective) Method 5. Share of Advertising / Share of Market

Media Alternatives
1. 2. Television Radio Newspaper Magazines Out-of-Home Direct-Response Internet Nature of the product Description of the target market and the media they refer to most often Budget is key influence

3.

Media Planning Difficulties

Measurement Problems Lack of Information

Problems in Media Planning

Time Pressure

Inconsistent Terms

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Major Factors in Creating and Building a Media Plan

Media Questions

Two basic processes: 1. Planning media strategy, including the specific types of consumers/audiences the messages will be directed to. 2. Selecting and Buying media vehicles. 3. Media planning is both an art and a science. An essential part of the advertising business.

Media Questions
y Where should we advertise? y Which media vehicles? y When during the year? y Should we concentrate our advertising? y How often should it run? y What opportunities are there to integrate our media

planning with other Promotion or Communication tools?

Media Objectives, Strategies and Planning

yPlanners direct the messages to the right people at the

right time in the right environments.

yTV: Networks, syndication, local, cable, satellite. yNational, Regional and Local issues yNon traditional: In flights, parking meters, blimps,

shopping carts, milk cartons, litter cans, taxis, sponsorships.

Media Objectives, Strategies and Planning

y Increasing media choices and options y Audience fragmentation y Costs and rate hikes y Multimedia, and interactive y Diverse audiences y And more

Media Objectives, Strategies and Planning

Major Factors: y 1. Target Market. Whom are you going to sell to?
y Demographic, geographic and psychographics characteristics

y 2. Where is product or service distributed? y Local, regional, national or selected markets y Remember BDI and CDIs

Media Objectives, Strategies and Planning

y 3. What is Budget? y Percentage of sales y Share of market and Share of Voice y Objective and Task y Unit of Sales and Case Rate y Competition y Test Market y Experimental y Computer modeling y Affordable and Available Funds

Media Objectives, Strategies and Planning

y 4. What is Competition Doing?
y Budgets y Which Media? y Which Schedules? y And more

Media Objectives, Strategies and Planning

y 5. Nature of Message?
y Electronic/Broadcast y Print y Color/B&W y Demonstration y Simple Statements

Media Objectives, Strategies and Planning

y 6.

Reach vs. Frequency vs. Continuity

(Continuous Schedule)

Media Objectives, Strategies and Planning

Media Objectives, Strategies and Planning

Reach (Cume) y The number of different or unduplicated households or persons that are exposed to a television program or commercial at least once during the average week for a reported time period. During the course of the schedule illustrated, seven different households were exposed to the spot at least once. Since each home represents 10 % of the universe, this makes the reach or cume 70%.

Media Objectives, Strategies and Planning

Frequency y Average number of times a household or a person viewed a given television program, station or commercial during a specific time period.

Media Objectives, Strategies and Planning

Continuity/Continuous Schedule y Advertising runs steadily and varies little. Compare with: y Flighting and Pulsing with scheduling

Media Objectives, Strategies and Planning

y Rating (RTG or %): y The estimate of the size of a television audience relative to

the total universe, expressed as a percentage. The estimated percent of all TV households or persons tuned to a specific station. In the example, three of the 10 homes in the universe are tuned to channel 2. That translates to a 30 rating.

y RATING = households tuned in to a given program

all households with television

y SHARE =

households tuned in to a given program all households tuned in to TV at that time (HUT)

(more simply: share measures the percentage of all TV sets in use watching a particular program)

Here's an example: Your show is aired in a market that has 1 million television househo2lds; 400,000 are tuned in to you. Therefore: 400,000 1,000,000 = .40, or a rating of 40
At the time your show airs, however, there are only 800,000 households using television. Therefore, your share of the available audience is

Share =

400,000 800,000 = .50, or a rating of 50

If you can explain why a specific program's share is always higher than its rating, then you understand the difference between the two.

Media Objectives, Strategies and Planning

y 7. Media Mix
y Combination of different media, and y Which Media? y Which Schedules? y And more

size of ads

Media Objectives, Strategies and Planning

y 8. Seasonality and Length of Schedule?
y Hot tea vs. Cold tea? y Snow blowers, toothpaste, coffee. y Morning Drive and Evening Drive y Flighting y Pulsing

Media Objectives, Strategies and Planning

y 9. Tie-ins with Merchandising

and Sales Force?

y Coupons, Contests, Trade Deals, Sales Calls, Displays, Budgets. y Which Media? y Events y Super Bowl y Academy Awards y Sports y Which Schedules? y And more

Media Objectives, Strategies and Planning

Where? 56.9% of media exposure took place in the home, but 21.1% took place at work, 8.3% in the car and 13.7% in other locations.

Media Objectives, Strategies and Planning 10. Flexibility

Messages

Promotion

4Ps and 7Ps

Media Objectives, Strategies and Planning

y 11. Cost Efficiencies
y Which Media? y Which Schedules? y Which Vehicles?

Media Objectives, Strategies and Planning

y Advertising is an investment in future sales. y Its greatest powers are in

short-term promotions and its cumulative long-range effects. y And more

Brand and Category Analysis

Brand Development Index

Percentage of brand to total U.S. sales in market BDI = Percentage of total U.S. population in market X 100

Three Scheduling Methods

Continuity

Flighting

Pulsing

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Graph of Effective Reach

Marketing Factors Determining Frequency

Marketing Factors

Brand Loyalty

Brand Share

Usage Cycle

Brand History

Share of Voice

Purchase Cycles

Target Group

Message Factors Determining Frequency

Message or Creative Factors

Message Complexity Message Uniqueness New Vs. Continuing Campaigns Image Versus Product Sell Message Variation Wearout Advertising Units

Media Factors Determining Frequency

Clutter Scheduling Repeat Exposure

Media Factors
Attentiveness

Editorial Environment Number of Media Used

Flexibility in Media Planning Strategies

Market opportunities

Market threats

Flexibility

Changes in media or media vehicle

Availability of media

Social Media Strategy | What

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Social Media Strategy | Social Networks

Facebook MySpace LinkedIn

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Social Media Strategy | PPT Sharing

SlideShare Google PPT SlideWorld

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Social Media Strategy | Photo Sharing

Flickr TweetPhoto Shutterfly

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Social Media Strategy | Video Sharing

YouTube Vimeo Veoh

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Social Media Strategy | Video Streaming

Ustream Qik Flixwagon

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Social Media Strategy | Micro-Blogging

Twitter Yammer FriendFeed

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Social Media Strategy | Events

Evite Meetup Facebook

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Social Media Strategy | Bookmarking

Delicious Digg StumbleUpon

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Social Media Strategy | Widgets

FanBox WidgetBox Widgepedia

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Social Media Strategy | Miscellaneous

GoodSearch Places WikiPedia

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Social Media Strategy | Blogging

WordPress TypePad Blogger

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Social Media Strategy | Mobile

iPhone Blackberry Droid

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Social Media Strategy | Listen

Reply to Trends, Crises and Opportunities.

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Social Media Strategy | Communicate

Increase Brand Awareness, Participation, Reach, Audience and Engagement.

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Social Media Strategy | Empowering People

Promote the Understanding of your people and your cause.

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Social Media Strategy | Create Community

Change from Donation to Relation

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Social Media Strategy | Create Community

Relationships with Families, Consumers, Industry, Media

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Social Media Strategy | Social Capital

Social Network = Connections Conversations = Social Capital Repeated Conversations = Relationship

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Social Media Strategy | Sales + Marketing

Marketing Creates Opportunity Sales Creates Customer This is still Business

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Media Speak
y Audience/Coverage/Composition
y Audience y number or % exposed to a vehicle y Audience Coverage
y number or % reached by a single insertion

in a specified area total audience

y Audience Composition y statistical breakdown of a media vehicles

Media Speak
y Reach & Ratings
y Broadcast Media use Rating Points
y % of Target Audience reached by a media

vehicle

y Print Media use Circulation

y Number of copies sold or distributed

Media Speak
y Above-the-Line/Below-the-Line
y Above = paid advertising y Below = sales promotion, PR, events

y Traditional/Non-Traditional
y Traditional = major mass media y Non-Traditional = unique media opportunities and new media

forms