Transcript Share of Voice

Flowchart/Standard Broadcast
Calendar/Markets
Media Planning
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Tonight’s class will cover:
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Homework review
Some new material – Flow Chart, Standard
Broadcast Calendar
Print
New Material on SOV
Review for Mid term exam
Flowchart
A graphic presentation of all major actions
that comprise a media plan
 Presented in notation form enabling
planner to place great deal of information
in small space.
 Most important function is to provide a
bird’s-eye view of plan of action
 Includes a week by week showing of
activity by media, cumulative budgets and
grp’s
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Flowchart
Many times clients, account service and
creatives think the flowchart is the plan.
 It is just a small, but important part of the
plan.
 Example of RBB Sporting Goods Flow
Chart shows week by week of Network TV,
Cable TV, Recap by quarter with Reach
and Frequency, Magazines by title,
Internet, Total flight
GRP’s/Reach/Frequency and budgets.
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Standard Broadcast Calendar*****Important
On the flowchart, notice the weeks at the
top of page.
 Advertising is planned and purchased on a
different kind of calendar.
 Standard Broadcast Calendar.
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Weeks start on Monday, end on Sunday
Month ends on last Sunday of the calendar
month and begins on the first Monday of the
next month.
Standard Broadcast Calendar
All of advertising adheres to this calendar.
 View 3 year Standard Broadcast Calendar
 The Standard Broadcast Calendar is
designed to conform to the uniform billing
period adopted by US Broadcasting
industry.
 Standard media week ends on Sunday.
 Standard billing month always ends on the
final Sunday of a calendar month.
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Markets:
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What is a local market to a media planner?
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DMA/TSA/MSA
A group of people living in a certain geographic area
who are likely to buy a given product or brand
DMA****Important
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Designated Market Area DMA
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Used by Nielsen (and advertising industry) for a television
market. Includes counties in the metropolitan area of a
market.
Statistical area
TV markets are categorized by DMA.
TV is measured by DMA’s
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Denton is in the Dallas/Ft. Worth DMA
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Markets:
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DMA/TSA/MSA
TSA
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Total Survey Area
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Statistical area surrounding the DMA. These
households may belong to another DMA, however
they receive some of their TV viewing/radio listening
from the DMA.
Markets:
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DMA/TSA/MSA
MSA
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Metro Survey Area
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A population area with a large nucleus at the center
and adjacent areas that have a large degree of
economic and social integration with the center.
Radio is measured by MSA’s.
TSA data is also available but markets are planned
and purchased on MSA’s for Radio
This is generally a smaller area inside the DMA.
Radio measured on MSA’s because of radio signals.
Print
How its bought & sold
Magazine
Sold by display space in page or fractional
page unit
 B/W & Color rates are different
 Bleed (additional 15%)
 Discounts based on
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Frequency of insertion
Page equivalent discount
Magazines
Regional or geographical rate
 Premiums on “cover” position
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Second, third, fourth cover page
Fourth cover (back page) is the most
expensive and the most effective
Rates are negotiable
Newspaper
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Sold by column inch
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Display ad: SAU (standard advertising unit)
Line-rate (or agate rate) for classified ads
Open-rate/Flat rate (color rate)
 Color charges are “add-on”
 Different rates for national, retail,
classified, co-op
 Geographic rate
 Frequency/volume discount
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Factors affecting Readers-per copy
 Distribution patterns-airplanes, doctors’
offices, etc allow more people to be exposed to
a specific copy…much of this readership is
passalong
 Amount of Editorial…The more words
contained in a magazine, the longer it takes to
read. Primary readers will hold that copy
longer with fewer passalong readers
 Type of editorial…Some pubs are retained by
primary reader because of the reference
material
Readers-per-copy (RPC) is determined by
dividing total audience of an average issue
(as reported by various research
companies) by the average issue
circulation of that pub
 Not necessarily an accurate number, but is
commonly used by planners to assess
total audience of a pub or to plan for a
new publication
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Readers-per-copy
Total audience =2,300,000
Average issue circulation =1,800,000
RPC=2,300,000/1,800,000=1.27 readers
per copy
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Share of Voice SOV
Share of Voice
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How much to spend on advertising
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A planning concept that is often used in
making media decisions is called
Share of Voice or Share of Noise
This concept requires planner to determine
how much advertising is being done for a
brand VS the amount being done for a
competitive brand
Share of Voice-SOV
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BUT Before decisions made about how
much to be spent, other decisions must be
made.
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Who your brand will compete with
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Lemonade-competing with just lemonade or all non
carbonated beverages or all citrus beverages or all
refreshment beverages
Where will you advertise?
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You will need to determine share of market in each
location (BDI/CDI) and reason that share exists
SOV
 Poor
sales in one area could be due to
bad distribution, a great local brand
or pricing policies (Mrs Bairds vs
Wonder Bread)
SOV
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Can advertising affect a sales change? (if
distribution is such that product is not readily
available in certain areas, advertising will be
wasted.)
Share of Voice
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SOV is % of total advertising weight for
each brand and it is calculated by each
media and by combined media. Ex
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You will have a Share of Voice for TV, a share
of Voice for radio, a SOV for Outdoor and then
one combined for all media.
SOV
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Clients LOVE SOV data and while its not the most
reliable way to determine spending, its usually
used by agencies because data appears so
compelling to clients that they will often increase
their spending budgets.
SOV data is used in conjunction with CDI/BDI to
help planners focus in on markets to advertise in
and what levels to advertise at.
SOV
BDI/CDI shows how strong a brand and
category are in a market.
 SOV shows how much money is spent by
category and brand by media and by all in
a market or markets.
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SOV
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In class exercise
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Work through example on pass out for Beer
Table shows 3 charts that represent how a SOV
is calculated.
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1) Total spending by brand on advertising and how it
is allocated. (by media)
2) Media Mix-shows the % spent in each media by
brand and total
3) SOV-calculated by dividing brand spending into
the total spending by media by total.
SOV
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Rand the brands in terms of share of
spending from high to low
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Anheuser Bush
Miller
Coors
Heiniken
Guinnes
41.7
20.5
20.1
11.0
1.2
SOV
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What is the share of spending for Coors
compared to Anheuser-Busch?
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20.1 vs 41.7
SOV
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Compare the media mix of Bud Light to
Miller Lite. What are their strengths and
weaknesses?
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Spending on Bud is 62.2% in Network; Miller is
50.4%
Miller spending a greater % of their budget
(not actual $’s, but % of budget) in Hispanic
and cable & National Magazines.
Miller is light in Spot TV
SOV
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What brand has the highest percentage of
their media allocation dedicated to
Hispanic television? Why do you think the
brand allocated their dollars that way?
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Opportunity to own Hispanics?
Miller might have better distribution in markets
with heavy Hispanic populations. Maybe high
BDI
SOV
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What is the ratio of all television (national,
local, cable and syndication) to all radio
(national and local) dollars spent in the
category?
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TV 10.4+ 9+ 54.3 +15 + 2.5=91%
Radio .9 + 3.0 = 4%
SOV
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How does the total share of spending for each
brand compare to the share of spending they do
on cable television? Why do you feel that certain
brands spend more of less than their total share
of spending on this particular medium?
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Smaller brands spend more on cable-Busch, Guinness,
Heinekin-cable less expensive out of pocket-brands have
less $-opportunity to own a category…if anyone watching
cable, these brands have greater opportunity to break
thru clutter.
SOV
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If Guinness Beer had an extra $50 million
to invest in media, where would you
allocate it to compete against Heineken?
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An extra $50 million would make their
spending similar…Hispanic, network radio,
national newspaper, outdoor
Review for Midterm
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5 things all media plans must address: Who,
what, where, when, how.
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Who are you advertising to?
What are you advertising?
Where will you advertise ?(Markets/mediums/vehicles)
When are you going to be active?
How much should be spent on advertising?
Review for Test
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3 most important things for media plan
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Objectives-The statement of action required of media
to fufil the marketing plans ie Reach 70% of target
minimum of 10 x first 4 weeks of schedule
Strategy-Media solution used to fufill the objectives ie
Reach 70% of Ad2554 with TV, radio and outdoor every
week of campaign at a ratio of 40% TV, 20% radio and
40% outdoor
Tactics-Very specific way of accomplishing strategyUse TV News, News formatted magazines and News/Talk
radio stations, bulletins, 2- ½ page print ads
Review for Midterm
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What is the calendar that the entire advertising industry is
based on called and how does it differ from a regular
calendar?..Standard Broadcast Calendar..runs M-SU.
Ends on the last Sunday of the calendar month.
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If you reach 30% of your market with outdoor & 20% with
TV, is your overall reach 50%? No…duplication
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Mediums and vehicles
 Mediums TV, Radio, Print. Vehicle is specific…CBS,
KPLX-FM, Time Magazine.
Review for Midterm
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Statistical areas DMA, MSA, TSA… what ares is TV
planned and purchased for? DMA Radio? MSA or
Metro
When looking at the life cycle of a product:
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If the product
If the product
Frequency.
If the product
If the product
is new, you need more Reach.
is growing, you need Reach and
is mature, you need more frequency.
is obsolete, probably nothing can help.
Review for Midterm
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What is CPP? Cost per rating point. How is it
calculated? Cost for a spot is $1000. Rating for
that spot is 20. CPP is $1000/20 =$50 (The cost
for reaching 1% of our target is % 50) Formula
= Rating into cost
What is CPM Cost per thousand. How is it
calculated? Cost for a spot is $250. # people for
that spot is 50,000. CPM is .005 x 1000=5.00
Formula= cost/# people x 1000.
Review for Midterm
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When talking about “GRP”s are we talking
about the sum of audience impressions? NO
GRP’s are % of pop.(Ratings) Impressions
refer to numbers of imprints.
Review for Midterm
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What are Gross Rating points…Sum of all
ratings without regard to duplication.
Gross Impressions…sum of all media
exposures (includes duplication)
Review for Midterm
Do gross impressions in print include pass
along readers? Yes
 Exclusive Reach-Number of DIFFERENT
people impacted
 Average Frequency- Average number of
times target is reached.
 Formula for GRP’s R x F =GRP’s
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Review for Midterm
Rating % of your population (not
expressed with % sign)
 Share % of HUT
 Formula for Rating: Share x Hut =Rating
 Advertising is part of Promotion
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Review for Midterm
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Calculating Gross impressions and cpm
when you know cpp
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In Dallas, Oprah costs $2000 for a :30 second
spot making the cpp (cost per rating point)
$500 for Women 2554. There are 300,000
women 2554 households in DFW. Determine
the impressions and cpm
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1) Get Rating W2554 $2000/500 cpp=4 RW2554
2)Find Impressions: 300,000* .04 (4 rating or 4%)
=12,000 impressions
3)Find CPM: 2000*1000/12,000= $166.67 Multiply
cost x 1000 and Divide by impressions to get cpm.
This says that 12,000 w2554 watch Oprah and it will
cost 166.67 to reach 1000 of them
Review for Midterm
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Calculating Ratings and CPP when you
know impressions
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Beaumont has a population of 200,000. To
advertise in the paper is $2.00 per column inch
and you are buying a 72-column-inch ad. The
paper has a circulation of 100,000. What is
the cpp?
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1) Find cpm 2.00 x 72 =$144 for the ad
2) 144/100,000=1.44 cpm
3) Find cpp 100000/200000=.50 or 50 rating Cost
is $144, rating is 50
4) 144/50=2.88 cpp
Review for Midterm
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Readers per copy
 Prevention
Magazine has a paid circulation
of 2,500,000 with a total circulation of
10,000,000. Determine the readers per
copy
 Readers/Circulation
 10,000,000/2,500,000= 4.0
Review for Midterm
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Index
A percentage that relates numbers to a base of
100
 BDI - how it is calculated and what it is used for
-Brand Brand Development Index
Addresses Brand sales in a market or a
population (region) 11/10 =110 BDI
% brand sales/% population or % of market
% of Average market ie 22/20 =110 BDI
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Review for Midterm
CDI
Identical to BDI but it addresses category sales instead of
product sales.
Usefullness is either to define pockets of strength or
weakness for a category when you have new product or To
assess brand development when compared to category
development ie T-Mobile’s BDI is 110 but its slightly
underdeveloped when compared to the category of Cell
phones which is a 120 CDI
A market with a high BDI and CDI is a promising market.
Ideal for spending money in.