Explain the meaning of reach, frequency, gross rating points, target rating points, effective reach, and other media concepts.. points, target rating points, effective reach, and other m
Trang 21 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
audiences for media planning purposes
points, target rating points, effective reach, and other media concepts
and its role in media and vehicle selection
Trang 35 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
advertising allocation: continuous, pulsed, and flighted schedules
allocating advertising expenditures over time
Chapter Objectives (cont’d)
After reading this chapter you should be able to:
Chapter Objectives (cont’d)
After reading this chapter you should be able to:
Trang 4Media versus Vehicles
Example: the American Idol program
• Each medium and vehicle has a unique set of
characteristics and virtues
Trang 5Messages and Media:
A Hand-In-Glove Reaction
• Advertising message and media considerations
are inextricably related—creatives and media
specialists must team up to design ads
• Choice of media and vehicles requires a variety
Trang 6Selecting and Buying Media and Vehicles
• Choices:
Traditional full-service ad agencies separately
providing creative, planning, and media buying
services for a client’s individual brands
Single media buyer and planner agency providing
centralized media planning and buying services for all
of the client’s brands
Trang 7The Media-Planning Process
• Media Planning
Is the design of a strategy that will best allocate
investments in advertising time and space to achieve the firm’s marketing objectives
Involves coordinating three levels of strategy:
marketing, advertising, and media strategy
• Media Strategy Activities
1. Selecting the target audience
2. Specifying media objectives
3. Selecting media categories and vehicles
4. Buying media
Trang 8Model of the Media-Planning Process
Figure 11.1
Trang 9Selecting the Target Audience
Buyographics Geographic Demographic Psychographics Lifestyle/
Segmentation Factors
Trang 10Specifying Media Objectives
Issues in Setting Media Objectives
Trang 11Issues in Setting Media Objectives
advertising message during specified period?
during this period?
and frequency objectives?
audience be exposed to the advertising message?
Cost What is the most economically justifiable way to accomplish
objectives?
Trang 12Media Objective: Reach
• Reach
Is the percentage of the target audience exposed, at least once, during a specified time frame to the
vehicles in which the advertising message is inserted
Also known as 1+, Net coverage, unduplicated
audience, and cumulative audience (cume)
OTS = opportunity to see
• Determinants of Reach
Use of multiple media
Diversification of vehicles within each medium
Varying dayparts for radio and TV advertising
Trang 13Media Objective: Frequency
• Frequency
Is the average number of times during a
media-planning period that the target audience members are exposed to media vehicles carrying a brand’s
advertising message
Trang 14Hypothetical Frequency Distribution for the Fortwo Advertised in Cosmopolitan Magazine
Table 11.1
Trang 15Media Objective: Weight
• Weight Defined
The advertising volume required to accomplish
advertising objectives
• Ratings
The percentage of an audience that has an
opportunity to see an advertisement placed in a
Trang 16Weight Metrics
• Gross Rating Points (GRPs)
Represent the gross weight that a particular
advertising schedule is capable of delivering—the
sum of all vehicle ratings in a media schedule
GRPs = Reach (R) × Frequency (F)
Trang 17Weight Metrics (cont’d)
• Target Rating Points (TRPs)
Are adjusted vehicle’s ratings that reflect only those individuals who match the advertiser’s target
audience
Indicate a media schedule’s net (non-wasted) weight
Trang 18Weight Metrics (cont’d)
• The Concept of Effective Reach
Answers the question of how often does the target
audience have an opportunity to be exposed
Is that an advertising schedule is effective only if it
does not reach members of target audience too few
or too many times
• Three-Exposure Hypothesis (Krugman)
A minimum of three exposures to an advertising
message needed for effective advertising
Trang 19Weight Metrics (cont’d)
• Effective Reach Planning in Advertising Practice
No fewer than three and no more than ten exposures during a four-week media planning period
Use of multiple media
Subjective factors must be considered
• Effective Rating Points (ERPs)
ERPs = effective reach (or exposures) × frequency
Trang 20Alternative Media Plans Based on a $25 Million Annual Budget and Four-Week Media Analysis
Table 11.2
Trang 21Weight Metrics (cont’d)
• An Alternative Approach: Frequency Value
Planning
The objective is to select the media schedule that
generates the most exposure value per GRP
Step 1 Estimate the exposure utilities for OTS that a
schedule produces.
Step 2 Estimate the frequency distribution of the various
media schedules that are under consideration.
Step 3 Estimate the OTS value at each OTS level.
Step 4 Determine the total value across all OTS levels.
Step 5 Develop an index of exposure efficiency.
Trang 22Exposure Utilities for Different OTS Levels
Table 11.3
Trang 23Frequency Distributions and Valuations
of Two Media Schedules
Table 11.4
Trang 24Media Objective: Continuity
• Continuity
Involves how advertising is allocated during the
course of an advertising campaign
Addresses the fundamental issue of how the media budget be distributed:
Uniformly throughout the period of the advertising campaign
In a concentrated period to achieve maximum impact
Some other schedule between these two choices
Trang 25Allocating the Advertising Budget
Continuous
Schedule
Pulsing Schedule
Flighting Schedule
Budgeting Alternatives
Trang 26Advertising Budgeting Alternatives
• Continuous Advertising Schedule
An equal number of ad dollars are invested
throughout the campaign
• Pulsing
Some advertising is used during every period of the campaign, but the amount of advertising varies from period to period
• Flighting
The advertiser varies expenditures throughout the
campaign and allocates zero expenditures in some
months
Trang 28Advertising Budgeting Alternatives
• Recency Planning (a.k.a The Shelf-Space
Model) Principles
1. Consumers’ first exposure to an advertisement is
the most powerful
2. Advertising’s primary role is to influence brand
choice
3. Achieving a high level of weekly reach for a brand
should be emphasized over acquiring heavy
frequency
Trang 29Recency Planning: Continuous Presence
• Advertising’s Role in Optimizing Weekly Reach
To influence brand selection by reminding,
reinforcing, and evoking earlier messages
To reach consumers when they are ready to buy a
brand—”rent the shelf”, not out of sight, out of mind
To reach consumers close to the time when they are making brand-selection decisions
Single exposure cost effectiveness is about three
times the value of subsequent exposures
To reach as many consumers for as many weeks as possible rather than sporadically at select times
Trang 30Allocating the Advertising Budget
• Toward Reconciliation: It Depends!
No single budgeting approach is equally effective for all brands—what works best depends on the
particular circumstances of the brand
• Strong Advertising Model
Advertising is important because it teaches
consumers about brands and encourages trial
purchases leading to the prospect of repeat buying
• Weak Advertising Model
Most advertising messages are not important to
consumers and that consumers do not learn much
from advertising
Trang 31Cost Considerations
• Cost per Thousand (CPM)
The cost of reaching 1,000 people as a measure of media efficiency
CPM = Cost of ad ÷ Number of total contacts reached
(expressed in thousands)
The cost of reaching 1,000 members of the target
audience, excluding those people who fall outside the target market
CPM-TM = Cost of ad ÷ Number of target market contacts
reached (expressed in thousands)
Trang 32Cost Consideration Calculations
• Advertising at a Football Game
Cost of message delivery = $500.00
Stadium capacity = 80,000 persons
Cost per Thousand (CPM) = $500.00 ÷ 80 = $ 6.25
• Advertising on Television
Total program viewership = 18,273,600 households
Cost of 30-second commercial = $780,000
CPM = $780,000 ÷ 18,273.6 = $42.68
Target market percentage = 60%
CPM-TM = $780,000 ÷ (60% × 18,273.6) = $71.14
Trang 33Use Media Cost Calculations With Caution!
• The CPM and CPM-TM Statistics
Are useful for comparing the cost-efficiency of
different advertising vehicles, not their effectiveness
Lack comparability across media that are unique and priced differently
Can be misused unless vehicles within a particular
medium are compared on the same basis (e.g.,
usage and timing)
Trang 34The Necessity of Making Tradeoffs
• Why Tradeoffs?
Media planners operate
under the constraint of a
fixed advertising budget
Optimizing one objective
impacts other objectives
Trang 35Media-Scheduling Software
• Computerized Media-Scheduling Models
Attempt to optimize an objective function (e.g., reach) subject to satisfying constraints (e.g., budgetary
limits) in developing a specific media schedule
• Steps in Using a Computerized Model
1. Develop a media database
2. Select the criterion for schedule optimization
3. Specify budget and frequency constraints for each
vehicle
4. Seek out the optimum media schedule
Trang 36Media Database for the Esuvee-H
Table 11.5
Trang 37ADplus Magazine Schedule for the Esuvee-H
Table 11.6
Trang 38ADplus Magazine Schedule for the Esuvee-H (cont’d)
Table 11.6
Trang 39Review of Media Plans
soft-drink consumers
its growth rate to 1.5 times that of the diet soft-drink category.
and image factors that influence brand choice in this category.
Diet Dr Pepper from other diet drinks—particularly that Diet Dr Pepper is a unique, clever, fun, entertaining, and interesting brand to drink.
Trang 40Review of Media Plans (cont’d)
• The Diet Dr Pepper Campaign (cont’d)
Creative Strategy
To position the Diet Dr Pepper brand as “tasting more like regular Dr Pepper”—nearly 60 percent of initial trial users of Diet Dr Pepper are motivated by the desire to have a diet soft drink that tastes like regular Dr Pepper.
Media Strategy
Place advertisements during professional and college
football games
Sponsor various special events
Continuously advertise during prime time, on late-night
television, on syndicated programs, and on cable stations
Trang 41Media Plan for
Diet Dr Pepper
Table 11.7
Trang 42Media Plan for
Diet Dr Pepper
(cont’d)
Table 11.7
Trang 43Review of Media Plans (cont’d)
• Saab Model 9–5 Campaign
Target:
Upscale families and relatively affluent older consumers
Objectives:
Generate excitement for the new 9–5 model line
Increase overall awareness for the Saab name
Encourage consumers to visit dealers and test-drive the 9–5
Produce retail sales of 11,000 units of the 9–5 during the
introductory year
Trang 44Review of Media Plans (cont’d)
delivering an ideal synthesis of performance and safety
target group of older and financially well-off consumers
5’s introduction
the 9-5’s introduction year
throughout the introductory year
Trang 45Media Plan for the Saab 9-5
Table 11.8
Trang 46Review of Media Plans (cont’d)
• Olympus Camera Media Plan
Target:
Digital camera users
Objectives:
To introduce the Stylus Verve and the m:robe successfully
To shift marketplace perceptions that Olympus was a maker
of designer electronics items and not merely cameras
Strategy
Place the Olympus message in media that people talk about, that generate buzz, that yield free media coverage, that have longevity, and that are influential.
To reach both men and women and suitable for Olympus’
fourth-quarter selling season (October through December)
Trang 47Review of Media Plans (cont’d)
• Olympus Camera Media Plan (cont’d)
Media and Vehicles:
Sponsored sporting and fashion events
National network and cable TV programs with high
viewership and buzz potential
Various magazines with different readership segments
Out of home (OOH) impact units in key Olympus markets
In-theater advertising in the top-25 markets
Online advertising through a non-branded interactive Web site
Trang 48Media Plan for Olympus’ Stylus Verve and m:robe Brands
Table 11.9