Transcript NO MORE BALLOONS - UNT College of Arts and Sciences

Phoenix Media Planning Project
April 3, 2008
V.P. Marketing
Mark Hagen
Media Director
June Marie London
Direct Mail
Gwen Hughes
Camelot
Broadcast Buying
Outdoor Buyer
Tiffiney Simpson
Regional Marketing Managers
Outdoor Buyer
Wendy Moroze
Paul Decker
Outdoor Buyer
Carri LeClair
Marketing Coordinator - Yellow
Pages
Chris Stewart
Mary Frank
Tom Paine
Additional Marketing Functions
Marketing Publications
Manager
Gregg Stengel
Referrals / ARCH
Karen Mann
Carla Cox
Business Development
Manager
Scott Bowling
Marketing Creative
Manager
Lawri Murray
Regional Marketing Managers
First Point of Contact
Prepare Market Specific Marketing Plans
•
•
•
•
Performance & goal review
Customer Tracking Research
Advertising effectiveness
Recommendations
Quarterly Ad Council Meetings
Invitation open to single franchise market
attendance at Ad Council Meetings
Individual meetings with new franchisees during
training
Planning Process Objectives
Growing the HomeVestors brand in the
market
• Brand recognition
• Brand preference
Profitably growing each franchisee’s business
Develop Market Specific Advertising Plans
Establish Market specific buy goals
Develop plan to achieve those goals
Review progress vs. goals quarterly
Use key metrics (cost/lead, cost/buy, close
ratio, lead trends, buys vs. goals, etc.) to
determine effectiveness of advertising plan
Makes changes as necessary to help
franchisees achieve goals
Minneapolis Calls 2005 v. 2006
700
600
500
400
2005 Calls
300
2006 Calls
200
100
0
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Minneapolis Referrals 2005 v. 2006
500
450
400
350
300
2005 Referrals
250
2006 Referrals
200
150
100
50
0
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Minneapolis Leads 2005 v. 2006
900
800
700
600
500
400
2005 TL Leads
2006 TL Leads
300
200
100
0
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
HVA System Training
Types of Advertising
•
•
•
•
•
•
Billboards (Outdoor)
Television
Radio
Direct Mailers
Yellow Pages
Newspaper
Outdoor
Outdoor Buying Guidelines
Primarily Deal with 3 national vendors:
CBS Outdoor (formerly Viacom), Clear Channel and Lamar
Posting Times vary by vendor and type of board:
• 30 and 8 Sheets:
• 28 days for CBS Outdoor and Clear Channel (13-4week periods)
• Bulletins
• Full month for smovevendors (Most are now 13-4wk periods)
Residual postings may result in clustering of boards;
this is OK since it is FREE space
If boards are pre-empted we either receive a makegood or a credit
Broadcast
Fundamentals of Broadcast
Reach
Frequency
TRPs (Targeted Rating Points)
• A35+
Efficiency (CPP and CPM)
What is Reach?
% of target universe
exposed to any advertising
vehicle in the schedule
• Unduplicated measurement
• Individuals in target
counted only once
• Cannot exceed 100
90%
85%
80%
75%
70%
65%
60%
55%
50%
45%
40%
35%
30%
25%
20%
15%
WHAT IS FREQUENCY?
“SIT”
“SIT”
“SIT”
“SIT”
“SIT”
“SIT”
GOOD DOG!
SOME MESSAGES JUST HAVE TO BE REPEATED
Audience Response
On-Air Advertising Response Patterns Look Like
This …
On-Air Advertising
Time/Frequency of Impressions
As frequency builds, results increase. The response is true for every
campaign on any media.
Audience Response
Many anxious advertisers “bail out” before they get out of the
“Valley of Death”.
On-Air Advertising
Valley of Death
Time/Frequency of Impressions
Formula-Remember Algebra?
•
Reach and Frequency work hand in hand
y
c
n
e
u
q
Fre
s
P
R
G
=
h
c
a
e
/R
Reach
=
GRPs
/ Freq
uency
Reach x Frequency = GRPs
What Are TRPs
Target Rating Points
Segment watching television
or listening to radio HUT/PUT
Program
Program
Program
Program
Program
Program
Program
Other
A
B
C
D
E
F
G
Radio/Television Formats/Timing
M-W – Strongest Lead Generation
Strong Radio Formats
•
•
•
•
Oldies
Country
News/Talk
Classic Rock/Soft Adult Contemporary when efficient
Strong Television Programming –
Current Daypart Distribution is:
• 15% Early Morning,
15% Early News
• Judge Shows
• Talk/Interview
• Game Shows
• Early Morning News
• Noon News
• Early Evening News
50% Daytime,
20% Early Fringe,
Radio Station Selection
M-F 6a-10a
Rank
1
2
3
4
5
6
7
8
9
10
Station
WCCO-AM
KQRS-FM
WLTE-FM
KQQL-FM
KSTP-AM
KEEY-FM
KLBB-T
KSTP-FM
WLOL-FM
WWTC-AM
AQH (00)
514
283
151
129
110
107
74
49
46
38
Rating
5.3
2.9
1.5
1.3
1.1
1.1
0.8
0.5
0.5
0.4
Recap of Station/Programming
Selection process
Receiving Information from stations
Viewing and listening patterns analysis
Appropriateness of content/format
Analysis of historical data
Identifying Efficiencies & Opportunities
Negotiations
Stewardship
Cause and Effect of Television Pricing
Hypothetical Example
When are the broadcast sellers most vulnerable?
% Sold as of:
December
February 1
January
40
N/A
February
40
90
March
30
85
April
20
70
May
20
70
June
20
70
July
10
40
August
10
40
September
10
40
October
0
20
November
0
25
December
0
25
17
53
Yellow Pages
Yellow Pages
HomeVestors works directly with DCG Yellow Pages,
a national Yellow Pages representative.
DCG offers a national rate that will meet or beat all
local rates.
Susie Sadowski is our DCG rep and will contact you
prior to cutoff date for publication.
Yellow Page advertising provides a return on your
investment and is a requirement of your Franchise
Agreement.
®
Yellow Pages
Credit Card size (not exact size)
$1 bill size (not exact size)
Newspaper
Newspaper
2 Types of Ads – Liner Ad, Display Ad
Real Estate Wanted Section
Investment Property- “Rotten Wood”
Newspaper
Liner Ad
WE BUY UGLY HOUSES®
HomeVestors®
800-301-3223
Display Ad
Investor
Ad
Rotten Wood/Peeling PaintFantastic Deals
National Franchise Company will be
offering houses for sale in this area.
Different sizes and areas. Most will need
repairs.
For information call 1-800-495-1911.
HomeVestors: We Buy Ugly Houses
Direct Mail
Direct Mail
Direct Mail. WHY?
• Cost Effective
• Targeted
• Supports Mass Media
Mailers
• Letters
• Postcards
Direct Mail Pricing
Mass Mail Pricing
• Letters
• 53 cents over 10,000
• 58 cents 5,000-9,999
• 62 cents 3,000-4,999
• Postcard
• 38 cents
• Minimum 3,000
Direct Marketing Letters
Absentee Owner Letters
• Five Versions
Owner Occupied Letters
• Four Versions
Sales Letters
Apartment Dwellers Letter
• Additional Letters to be added later
Direct Mail Letters
Specialty Letters
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Difficult Situation
Expired Listings
Fire
Inherited House
Bad Neighbors
Foreclosure
Repair Problems
Seniors (two versions – one with brochure, one without)
Vacant Property
Investor
Rental Property
Thank You - Appointment
Thank You - Buy
Thank You - Sell
Letters
Postcards
Background
Market Segmentation Methodology
The market segments were developed by applying a
statistical clustering approach utilizing the following
variables:
• Total Advertising Expenditure
• Saturation Percent = Existing number of Offices/Optimal number of
Offices
• Total number of Media Vehicles Used
• Total 104 weeks (i.e., 24 months) of data is utilized in this model
Market Segmentation Methodology
Mid-Size Underdeveloped Markets - Segment 1
23 Markets: 48 Offices
Smaller Saturated Markets - Segment 2
16 Markets: 32 Offices
Emerging High-Potential Markets - Segment 3
13 Markets: 19 Offices
Mid-Size Established Markets - Segment 4
16 Markets: 85 Offices
Emerging Elite Markets - Segment 5
6 Markets: 45 Offices
Elite Established Markets - Segment 6
8 Markets: 154 Offices
Dependent Variables and New Data
HomeVestors supplied data on four dependent variables:
• Sales Calls
• Sales Referrals
• Sales Contribution
• Sales Closings
In measuring the effect of independent variables, the
analysis utilizes Sales Calls as the dependent Outcome
Variable
HomeVestors supplied additional 6-months sales and media
data
The analysis utilizes total 24 months data, from July’04 to
June’06, to uncover the effects of various media vehicles
Return on Investment by Channel & Segment
Return on Investment by Segment
Total Return/ $1,000 Media Expense
8,000
7,000
6,000
ROI (USD)
5,000
Actual ROI
Target ROI
4,000
3,000
2,000
1,000
0
Mid-Size
Underdeveloped
Markets
Smaller Saturated
Markets
Emerging HighPotential Markets
Mid-Size
Established Markets
Emerging Elite
Markets
Elite Established
Markets
Directmail
9%
TV
11%
Print
0%
Radio
0%
Smaller Saturated Market
Internet
2%
Outdoor has the highest
marketing budget with 78%,
followed by TV and Direct Mail
Internet has the greatest impact
in terms of media.
• $1,000 increase in internet
expenses may generate
$9,500 revenue
• No expense on Radio. Since
Radio has significant effect on
revenue in other segments,
resources should be allocated
on Radio.
Outdoor
78%
Revenue/$1,000 Media Expense
16,000
14,000
Revenue ('000 USD)
12,000
10,000
8,000
6,000
4,000
2,000
0
Actual ROI
Outdoor
TV
Radio
Dmail
Print
Internet
Target ROI
Elite Established Market
Directmail
9%
Print
6%
Internet
1%
Outdoor has the highest
marketing budget with 42%,
followed by TV, Radio, and Direct
Mail
Outdoor
42%
Radio
13%
TV has the greatest impact in
terms of media, followed by
Radio, and Internet
• $1,000 increase in TV expense
may generate $5,000 revenue
• $1,000 increase in Radio may
generate approx $4,900
revenue
TV
29%
Revenue / $1,000 Media Expense
7,000
6,000
Revenue ('000 USD)
5,000
4,000
3,000
2,000
1,000
0
Outdoor
TV
Radio
Dmail
Print
Internet
Actual ROI
Target ROI
Awareness
Media Lifecycle
Outdoor
Internet
Direct Mail
Outdoor
Direct Mail
Internet
Radio
Direct Mail
Outdoor
Radio
Internet
Print
Direct Mail
Radio
Outdoor
TV
Internet
Print
Direct Mail
Radio
TV
Outdoor
Internet
Print
Penetration
Commonalities Among the Market Segments
Outdoor makes-up a
significant portion of
media mix
Direct Mail provides
positive ROI
Radio is an effective
media across all
segments, but is under
utilized
Internet demonstrates
the greatest return, but
has a steep diminishing
return curve
Diminishing Returns in Phoenix
The maximum efficiency for
Outdoor is approx., $34K per
month within the market
Diminishing Return Curve: Outdoor
10
9
8
7
6
The maximum efficiency for TV is
approximately $30K per month
within the market
5
4
3
2
1
0
0
0.5
1
1.5
2
2.5
3
3.5
4
Outdoor ('000 USD)
Diminishing Return Curve: TV
10
9
8
7
Rev./TV ('000 USD)
Rev./Outdoor('000 USD)
Market/Franchisee
6
5
4
3
2
1
0
0
0.5
1
1.5
2
2.5
TV ('000 USD)
3
3.5
4
4.5
5
Diminishing Returns in Phoenix Market/Franchisee
Diminishing Return Curve: Radio
The maximum efficiency for radio
is approximately, $26K per month
within the market
9
8
Rev./Radio ('000 USD)
7
6
5
4
3
2
1
0
0
0.5
1
1.5
2
2.5
3
Radio ('000 USD)
3.5
4
4.5
5
Diminishing Returns in Phoenix Market/Franchisee
The direct mail has not reached
its maximum efficiency.
Diminishing Return Curve: Direct Mail
14
10
8
The efficiency for print declines
in this market.
6
4
2
0
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
Direct Mail ('000 USD)
Diminishing Return Curve: Print
1
2
1
0
8
Rev./Print ('000 USD)
Rev./Direct Mail ('000 USD)
12
6
4
2
0
0
0.2
0.4
0.6
0.8
1
1
.2
Print ('000 USD)
1
.4
1
.6
1
.8
2
Elite Established Market
2006 Marketing Plan
12/18
TOTAL
Christmas
12/4
12/11
December
11/27
Thanksgiving
11/6
11/13
1-/23
November
10/30
10/9
10/16
October
10/2
9/25
9/18
9/11
8/28
September
Labor Day
8/21
8/7
8/14
7/31
August
7/24
7/17
7/10
6/26
July
4th of July
6/19
6/5
6/12
5/22
June
Memorial
5/8
5/15
5/1
May
4/24
4/17
4/3
Good Fri.
April
3/27
3/20
3/6
3/14
March
2/27
2/20
2/6
2/13
February
1/30
1/23
1/9
1/16
1/2
January
Television Flights
$
61,100
$
36,425
$
36,425
$ 14,740
115 pts/wk
$
44,805
100 pts/wk
$ 34,505
85 pts/wk
$ 40,650
100 pts/wk
$
53,675
100 pts/wk
$ 40,575
100 pt/wk
$ 36,075
100 pt/wk
$
66,750
125 pt/wk
$
27,510
$
34,130
$ 39,520
75 pts/wk
$
28,310
80 pts/wk
$ 28,030
80 pts/wk
$
32,260
95 pt/wk
$
19,105
115 pts/wk
$ 31,735
95 pts/wk
$ 34,790
95 pts/wk
$
-
$
-
$
465,725
$ 37,680
95 pts/wk
$
314,375
Radio Flights
$
1,305
Direct Mail - +Local Misc.
$
25,000
$
25,000
$
25,000
$
20,000
$
20,000
$
20,000
$
25,000
$
25,000
$
25,000
$
25,000
$
25,000
$
25,000
$
285,000
$
2,361
$
2,361
$
2,361
$
2,361
$
3,672
$
3,672
$
3,672
$
3,672
$
3,672
$
3,672
$
1,310
$
35,147
22,350
$
22,350
$
22,350
$
22,350
$
22,350
$
22,350
$
22,350
$
22,350
$
22,350
$
22,350
$
22,350
$
268,200
$
26,282
$
26,282
$
26,282
$
26,282
$
26,282
$
26,282
$
26,282
$
26,282
$
26,282
$
26,282
$
315,384
$
4,300
$
4,300
$
4,300
$
4,300
$
4,300
$
4,300
$
4,300
$
4,300
$
4,300
$
4,300
$
51,600
$
-
Yellow Pages
$
2,361
Outdoor Posters
$
22,350
$
Outdoor Bulletins
$
26,282
$
26,282
Ug Board - Contracted
$
4,300
$
4,300
Total
$
142,698
$ 144,228
$ 150,848
Budget
$136,500
$147,000
$152,250
Difference
$
6,198 $
(2,772) $
(1,402)
Additional John Adams Radio - 1 share each
Included in Radio Buy
$ 129,553
$
$141,750
148,408
$ 139,139
$143,500
$ 154,514
$143,500
$12,197
$
4,908
$
$1,050
$
1,050
$
$155,750
(4,361) $
1,050
$
$
$ 153,914
$155,750
(1,236) $
1,050
154,384
$
$155,750
(1,366) $
1,050
$ 152,469
$
$155,750
(1,836) $
1,050
$
$
$ 116,922
$150,500
(3,281) $
1,050
148,354
$
$122,500
(2,146) $
1,050
$
$
$1,760,500
(5,578) $
1,050
1,735,431
$
(25,069)
9,450
History
2006 12 months-Detail
2006 Zips
AdCouncil
Zip Code
NumProps
531
6047
8509
60129
75303
85004
85006
85007
85008
85009
85012
85013
85014
85015
85016
85017
85019
85020
85021
85022
85023
85024
1
1
1
1
1
1
2
6
4
9
1
1
2
7
4
5
7
7
2
4
5
1
Zip Code NumProps
Zip Code NumProps
Zip Code NumProps
Zip Code NumProps
Phoenix
85027
85028
85029
85031
85032
85033
85035
85037
85040
85041
85042
85043
85044
85048
85050
85051
85053
85064
85086
85201
85202
85203
8
2
11
9
5
8
11
6
4
1
1
3
4
1
1
5
6
1
1
5
3
5
85204
85205
85207
85208
85209
85210
85212
85215
85219
85220
85222
85224
85225
85226
85228
85231
85232
85233
85234
85236
85239
85242
13
3
2
11
4
7
1
1
1
6
16
4
5
1
3
3
1
5
2
1
3
6
85249
85250
85251
85252
85254
85257
85258
85281
85282
85283
85296
85297
85301
85302
85303
85304
85306
85307
85308
85310
85318
85323
6
1
3
1
4
2
1
3
6
4
1
4
4
10
5
2
2
1
5
1
1
6
85335
85338
85339
85340
85345
85349
85351
85353
85357
85363
85374
85379
85381
85382
85383
85716
86004
86326
86334
86351
885338
109
7
3
2
2
10
1
3
2
1
4
6
7
3
1
2
1
1
1
1
1
1
406