Transcript Chapter 1
Media Planning
and Strategy
The Traditional U.S. Media Landscape
Satellite radio
stations
2
Broadcast
networks (TV
and cable)
100
TV stations
3,510
Consumer
magazines
5,340
Newspapers
(daily and
weekly)
8,100
Radio stations
13,898
Media Terminology
Print
Media
Media
Vehicle
Reach
Publications such as newspapers,
magazines, direct mail, outdoor, etc.
The specific carrier within a medium
category (i.e. Time Magazine, HGTV, etc.)
Number of different audience members
exposed at least once in a given time period
Coverage
The potential audience that might receive
the message through the vehicle
Frequency
The number of times the receiver is exposed
to the ad/media vehicle in a specific time
period
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
Further Defining Reach
A. Reach of One Program
B. Reach of Two Programs
Total market audience reached
Total market audience reached
C. Duplicated Reach of Both
D. Unduplicated Reach of Both
Total reached with both shows
Total reach less duplicate
Graph of Effective Reach
Marketing Factors Determining Frequency
Marketing
Factors
Brand
Loyalty
Brand
History
Brand
Share
Share
of
Share
of Voice/
Competition
Voice
Usage
Cycle
Purchase
Cycles
Target
Group
Message Factors Determining Frequency
Message
or Creative
Factors
Message Complexity
Message Uniqueness
New Vs.
vs. Continuing Campaigns
Image
ImageVersus
vs. “Straight”
ProductSell
Sell
Message Variation
WearoutWearout
Considerations
Ad Size/Length
Three Scheduling Methods
Continuity
Flighting
Pulsing
Jan
Feb Mar
Apr May Jun
Jul
Aug Sep Oct Nov Dec
What are the pros and cons of each method?
Sample Flighting Schedule
Media Factors Determining Frequency
Clutter
Scheduling continuous vs.
pulse/flight/blast
Repeat Exposures
Repeat
(consumerExposures
generated)
Media
Factors
Editorial
Environment
Attentiveness
Number of
Media Used
Flexibility in Media Planning Strategies
Market
opportunities
Market threats
Flexibility
Changes in
media or media
vehicle
Availability of
media
Determining Relative Cost of Media - CPM
Cost per thousand (CPM)
CPM =
Cost to Advertise
Circulation
X 1,000
Calculating CPM Based on the Target
Audience
Ratings
Ratings are a measure of Reach
• 110 million (MM) television households in the U.S., approximately
equivalent to the total # of households in U.S.
•Neilsen captures ratings data through Peoplemeters, diaries,
surveys, etc. and publishes this data
• 1 Rating Point = 1% of television households exposed to program
= 110 MM x .01 = 1.10 million households exposed (roughly a
million)
• Example: 10 million households watch “House”. House’s rating
is 10 MM / 110 MM = 9 points
• Caveat: Rating % is always higher than % who viewed
advertising
Nielsen’s People Meter
Determining Relative Cost of Media - CPP
Cost per rating point (CPP)
CPP =
Cost of Advertising
Program Rating
Gross Rating Points (GRPs)
GRPs = Reach x Frequency
• Measure is specifically for television (and sometimes radio) media buys
• Example: Advertising 5 times during a 10-rated program yields a 5 x 10 =
50 GRP media buy.
• GRP as a summary number: does not provide distribution characteristics
(i.e. is 100 GRPs = 50 rating x 2 exposures or = 25 rating x 4 exposures?)
• Foote, Cone & Belding study findings
• 2,500 GRP buy yields 70% probability of high awareness
• 1,000 – 2,500 GRP buy yields 33% probability of high awareness
• Less than 1,000 GRP buy yields virtually no awareness
• Effective Rating Points (ERPs): GRPs adjusted for % of target audience
that actually sees or ignores the message (i.e. 30% of target audience may
“zip” or “zap” the commercial, stop watching, be inattentive, etc.)
Problems with CPM/CPP
What are the three main problems with Relative Cost of Media
Measures like CPM and CPP?
•Purely focused on cost per exposure; no focus on results, ROI,
engagement, media impact, etc.
•May not account for the effects of time and repetition
•Calculations may use duplicated or unduplicated reach numbers
•No adjustments made for continuity factors (continuity is beneficial!)
Problems with CPM/CPP
SOLUTIONS
•TEMPORAL CPM/CPP
T-CPM, T-CPP
•Weighted Impression CPM/CPP
WI-CPM, WI-CPP
•Continuity Adjusted CPM/CPP
CA-CPM, CA-CPP
Formulas:
T-CPM = [CPM/Ad Exposure Time] / [Sales Time Period]
T-CPP = [CPP/Ad Exposure Time] / [Sales Time Period]
WI-CPM = ([Ad Cost] / [Sum of Weighted Impressions]) x 1,000
CA-CPM = [Ad Cost x (1 + ασ)] / [Weighted Impressions]
α = alpha coefficient
σ = continuity index (st dev of time differences)