© 2010 South-Western, a part of Cengage Learning All rights reserved. PowerPoint Presentation by Charlie Cook The University of West Alabama Eighth Edition Advertising Media: Planning and Analysis CHAPTER 11 1. 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. Chapter Objectives After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved. 11–2 5. 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. Chapter Objectives (cont’d) After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved. 11–3 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 11–4 Media versus Vehicles Media versus Vehicles • Media Media  General communication methods that carry General communication methods that carry advertising messages advertising messages  Examples: television, newspapers, and Internet Examples: television, newspapers, and Internet • Vehicles Vehicles  The specific broadcast programs or print choices in The specific broadcast programs or print choices in which advertisements are placed which advertisements are placed  Example: the American Idol program Example: the American Idol program • Each medium and vehicle has a unique set of Each medium and vehicle has a unique set of characteristics and virtues characteristics and virtues © 2010 South-Western, a part of Cengage Learning. All rights reserved. 11–5 Messages and Media: Messages and Media: A Hand-In-Glove Reaction A Hand-In-Glove Reaction • Advertising message and media considerations Advertising message and media considerations are inextricably related are inextricably related —c —c reatives and media reatives and media specialists must team up to design ads specialists must team up to design ads • Choice of media and vehicles requires a variety Choice of media and vehicles requires a variety of decisions of decisions  General media categories General media categories  Specific vehicles Specific vehicles  Marcom budget allocations Marcom budget allocations © 2010 South-Western, a part of Cengage Learning. All rights reserved. 11–6 Selecting and Buying Media and Vehicles Selecting and Buying Media and Vehicles • Choices: Choices:  Traditional full-service ad agencies separately Traditional full-service ad agencies separately providing creative, planning, and media buying providing creative, planning, and media buying services for a client’s individual brands services for a client’s individual brands  Single media buyer and planner agency providing Single media buyer and planner agency providing centralized media planning and buying services for all centralized media planning and buying services for all of the client’s brands of the client’s brands • Takeaway: Takeaway:  Creating effective messages is critical but it is just as Creating effective messages is critical but it is just as essential that the messages are placed in the right essential that the messages are placed in the right media and vehicles. media and vehicles. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 11–7 The Media-Planning Process The Media-Planning Process • Media Planning Media Planning  Is the design of a strategy that will best allocate Is the design of a strategy that will best allocate investments in advertising time and space to investments in advertising time and space to achieve the firm’s marketing objectives achieve the firm’s marketing objectives  Involves coordinating three levels of strategy: Involves coordinating three levels of strategy: marketing, advertising, and media strategy marketing, advertising, and media strategy • Media Strategy Activities Media Strategy Activities 1. 1. Selecting the target audience Selecting the target audience 2. 2. Specifying media objectives Specifying media objectives 3. 3. Selecting media categories and vehicles Selecting media categories and vehicles 4. 4. Buying media Buying media © 2010 South-Western, a part of Cengage Learning. All rights reserved. 11–8 Model of the Media-Planning Process Figure 11.1 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 11–9 Selecting the Target Audience Selecting the Target Audience Buyographics Geographic Demographic Lifestyle/ Psychographics Segmentation Factors © 2010 South-Western, a part of Cengage Learning. All rights reserved. 11–10 Specifying Media Objectives Specifying Media Objectives Issues in Setting Media Objectives Frequency Reach Weight Cost Recency Continuity [...]... an index © 2010 South-Western, a part of of exposure efficiency Cengage Learning All rights reserved 11 21  Table 11. 3 Exposure Utilities for Different OTS Levels © 2010 South-Western, a part of Cengage Learning All rights reserved 11 22 Table 11. 4 Frequency Distributions and Valuations of Two Media Schedules © 2010 South-Western, a part of Cengage Learning All rights reserved 11 23 Media Objective:... South-Western, a part of  Varying dayparts for Cengage Learning All rightsradio and TV advertising reserved 11 12 Media 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 © 2010 South-Western, a part of Cengage Learning All rights reserved 11 13 Table 11. 1... allocates zero expenditures in some months © 2010 South-Western, a part of Cengage Learning All rights reserved 11 26 Figure 11. 2 Continuous, Pulsing, and Flighting Advertising Schedules for a Brand of Ice Cream © 2010 South-Western, a part of Cengage Learning All rights reserved 11 27 Advertising Budgeting Alternatives • Recency Planning (a.k.a The Shelf-Space Model) Principles 1 Consumers’ first exposure... 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 © 2010 South-Western, a part of Cengage Learning All rights reserved 11 32 Use Media Cost Calculations With Caution! • The CPM and CPM-TM Statistics  Are useful for comparing the cost-efficiency of different advertising... timing) © 2010 South-Western, a part of Cengage Learning All rights reserved 11 33 The Necessity of Making Tradeoffs • Why Tradeoffs?  Media planners operate under the constraint of a fixed advertising budget  Optimizing one objective impacts other objectives © 2010 South-Western, a part of Cengage Learning All rights reserved 11 34 Media-Scheduling Software • Computerized Media-Scheduling Models... optimization 3 Specify budget and frequency constraints for each vehicle 4 Seek out the optimum media schedule © 2010 South-Western, a part of Cengage Learning All rights reserved 11 35 Table 11. 5 Media Database for the Esuvee-H © 2010 South-Western, a part of Cengage Learning All rights reserved 11 36 ... effective reach (or exposures) × frequency © 2010 South-Western, a part of Cengage Learning All rights reserved 11 19 Table 11. 2 Alternative Media Plans Based on a $25 Million Annual Budget and Four-Week Media Analysis © 2010 South-Western, a part of Cengage Learning All rights reserved 11 20 Weight Metrics (cont’d) • An Alternative Approach: Frequency Value Planning  The objective is to select the... South-Western, a part of Cengage Learning All rights reserved 11 18 Weight 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 © 2010 South-Western,... achieve maximum impact  Some other schedule between these two choices © 2010 South-Western, a part of Cengage Learning All rights reserved 11 24 Allocating the Advertising Budget Budgeting Alternatives Continuous Schedule Pulsing Schedule © 2010 South-Western, a part of Cengage Learning All rights reserved Flighting Schedule 11 25 Advertising Budgeting Alternatives • Continuous Advertising Schedule  An... schedule’s net (non-wasted) weight © 2010 South-Western, a part of Cengage Learning All rights reserved 11 17 Weight 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 . and virtues © 2010 South-Western, a part of Cengage Learning. All rights reserved. 11 5 Messages and Media: Messages and Media: A Hand-In-Glove Reaction A Hand-In-Glove Reaction • Advertising. South-Western, a part of Cengage Learning. All rights reserved. 11 8 Model of the Media-Planning Process Figure 11. 1 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 11 9 Selecting. time. 7. Perform cost-per-thousand calculations. 8. Review actual media plans. Chapter Objectives (cont’d) After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage