Media Planning and Buying

Media Planning and Buying Part 3: Effective Advertising Media Chapter 11 ADVERTISING Principles and Effective IMC Practice

Key Points • Outline the basic media concepts used by planners and buyers • Describe the types of information compiled by media researchers • Analyze how media planners set media objectives • List the key media strategy decisions • Identify the responsibility of media buyers ADVERTISING Principles and Effective IMC Practice

The Media Plan • A written document that summarizes the objectives and strategies pertinent to the placement of a company’s advertising messages ADVERTISING Principles and Effective IMC Practice

The Aperture Concept The goal of the media planner is to expose the target audience to the message at the critical point when the consumer is receptive to the brand message ( Right Media + Right People + Right Time) To find the most effective ways to deliver messages at every contact point – a point where consumer connect with the brand and respond to a brand message Media Planning and Buying ADVERTISING Principles and Effective IMC Practice

Central Role of Media Research ADVERTISING Principles and Effective IMC Practice

Information Sources Client information Market research Competitive advertising Media information Consumer information Media Research ADVERTISING Principles and Effective IMC Practice

Client information Targeted markets Previous promotions and their performance Product sales and distribution patterns Brand plans The budget Media Research: Information Sources ADVERTISING Principles and Effective IMC Practice

Market Research Independently gathered information about markets and product categories Media Research: Information Sources ADVERTISING Principles and Effective IMC Practice

Media Research: Information Sources • Competitive Advertising • Media planners make decisions based on the amount of competitive traffic - Share of voice • Measures the percentage of total advertising spending by one brand relative to the competition ADVERTISING Principles and Effective IMC Practice

Media Information Various media provide information about the size and makeup of their audiences Designated marketing area Media Research: Information Sources ADVERTISING Principles and Effective IMC Practice

Media Research: Information Sources Consumer Information • Media planners use consumer information to locate the target audience within media markets ADVERTISING Principles and Effective IMC Practice

The Reach Objective The percentage of the different audience that is exposed at least once the advertiser’s message during a specific time frame (how many audience can see your ad message) Media Objectives First& Most important Principle ADVERTISING Principles and Effective IMC Practice

The Frequency Objective Estimates the number of times the exposure is expected to happen Average frequency Frequency distribution (how often your ad. message can be seen) Media Objectives ADVERTISING Principles and Effective IMC Practice

When REACH? When FREQUENCY? Reach is suitable for: Introduce new product Repositioning Wide target market Lower price and easy to find Monopoly market Sales promotion Remind message Frequency is suitable for: Small sales area More competitors Product need to be explained a lots ADVERTISING Principles and Effective IMC Practice

Exposure and GRPs Gross impressions The sum of the audiences of all the media vehicles used during a certain time span Gross Ratings Points Media planners convert impressions to gross ratings points in order to compare the efficiency of media schedules Media Objectives • Impression=actualexposure • TV actual viewer =/= reach • RADIO actual listener=/=reach • MAGAZINE actual reader=/= circulation ADVERTISING Principles and Effective IMC Practice

What is Media Strategies? • Media planners determine the most cost-effectivemedia mix that will reach the target audience and satisfy the media objectives ADVERTISING Principles and Effective IMC Practice

Media Strategies 1. Delivering on the Objectives • Strategies are designed to deliver on the media objectives, to deliver the right level of exposure in terms of reach and frequency - Reach or frequency objective or BOTH ADVERTISING Principles and Effective IMC Practice

Media Strategies 2. Target Audience Strategies: finding way to reach the target audience in the most efficient way -Media Use: what media the target is using Media research -Geography: location of the target audience (BKK, suburb,nationwide) -Consumption Pattern: heavy allocation of media in strong sales areas than weak sales areas ADVERTISING Principles and Effective IMC Practice

Media Strategies 3. Media mix selection Strategies • Using a variety of media to get your message out to customers send the message more widely • Different media tend to have different audience profiles • Generally, media selection is based on message needs e.g lot of info. magazine, internet moving image T.V., internet ADVERTISING Principles and Effective IMC Practice

Media Strategies 4. Cost Efficiency: CPM and CPP =the process of measuring the target audience size against the cost of the audience • Cost Per Thousand(CPM):compare the media on the basis of cost of ad. to expose thousand audience • Cost Per Point (CPP): compare the media on the basis of rating points (simpler) (best when used to compare w/n the same medium) ADVERTISING Principles and Effective IMC Practice

Cost per thousand CPM = cost of message unit/gross impressions (expected target audience) x 1,000 Cost per point CPP = cost of message unit/program or issue rating (comparing media vehicles by relating the cost to the audience rating) e.g. program A: 200000/10=20000 VS program B200000/20=10000 Example: CPM & CPP ADVERTISING Principles and Effective IMC Practice

5.Scheduling Strategies Timing Strategies - Duration: How long? : set the period of time e.g. 3 months, 6months, whole yea - Continuity: How often?: the way the ad is spread over the length  depends on the budget, product usage e.g. shampoo VS air-conditioner LEAD TIME: 1) time allowed before the sales period (seasonal p/d) 2)production time needed to get ad into the medium Media Strategies ADVERTISING Principles and Effective IMC Practice

Continuity Scheduling Strategies 1. Continuous strategy: spreads continuously / match consumer use cycle product usage 2. Pulsing strategy: intensify ad before the open aperture and reduce the ad (Periodic intensity) 3. Flighting strategy:It has the periods of intense and period of no ad (hiatus.(On-and off schedule) ADVERTISING Principles and Effective IMC Practice

Continuity Scheduling Strategies ADVERTISING Principles and Effective IMC Practice

Media Budget • -Media planner begins and ends with the budget BUDGET MEDIA MIX BUDGET ALLOCATION ADVERTISING Principles and Effective IMC Practice

Media planning The way advertisers identify and select media options Media buying Identifying specific vehicles, negotiating the costs to advertise in them, and handling billing and payment Media Planning and Buying ADVERTISING Principles and Effective IMC Practice

Media Department Media planner: makes the strategic decision in media plan Media Buyer : person who provide information to media planner, select media, negotiating costs, monitoring the media choices, evaluate the media choices, handling billing and payment ADVERTISING Principles and Effective IMC Practice

Media Buying Media Planner Provide Info to Media Planner Select Media Vehicle Billing & Payment Monitor the Payment Post-Campaign Evaluation ADVERTISING Principles and Effective IMC Practice

Providing inside info Media buyers are important information sources for media planners Close enough to day-to-day changes in media popularity and pricing to be a constant source of inside information Media Buying ADVERTISING Principles and Effective IMC Practice

Selecting Media Vehicles Choose the best vehicles that fit the target audience’s aperture The media planner lays out the direction; the buyer is responsible for choosing specific vehicles Media Buying ADVERTISING Principles and Effective IMC Practice

Basic Media Concepts • Media vehicle • A specific TV program, newspaper, magazine, or radio station or program e.g. AT TEN, แฟนพันธุ์แท้, Daily News, Hotwave ADVERTISING Principles and Effective IMC Practice

Examples: Medium: Single form of communication Media Vehicle: specific program ADVERTISING Principles and Effective IMC Practice

Media Buying Negotiation • Media buyers pursue special advantages for clients • Locate the desired vehicles and negotiate and maintain satisfactory schedule and rates Preferred Positions • Locations in print media that offer readership advantages • Preferred positions often carry a premium surcharge ADVERTISING Principles and Effective IMC Practice

Media Buying Extra Support Offers • Value-added media services • Contests • Special events • Merchandising space at stores • Displays • Trade-directed newsletters ADVERTISING Principles and Effective IMC Practice

Billing and Payment It is the responsibility of the advertiser to make payments to various media The agency is contractually obligated to pay the invoice on behalf of the client Media Buying ADVERTISING Principles and Effective IMC Practice

Media Buying Monitoring the Buy • The media buyer tracks the performance of the media plan as it is implemented, as well as afterward • Poorly performing vehicles must be replaced or costs must be modified (check the feedback) ADVERTISING Principles and Effective IMC Practice

Post-campaign Evaluation Once a campaign is completed, the planner compares the plan’s expectations and forecasts with what actually happened Provides guidance for future media plans Media Buying ADVERTISING Principles and Effective IMC Practice

Media salespeople work for a medium Media reps are people or companies that sell space or time for a variety of media Media Key Players ADVERTISING Principles and Effective IMC Practice

End of the Semester 2/2008 ADVERTISING Principles and Effective IMC Practice

Media Planning and Buying