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  1. Reach The percentage of different people exposed to a vehicle at least once. Factors that affect reach level: New product introduction (brand awareness, launch) Advertising support for sales promotion activities Competitor’s levels Budget Previous reach levels

  2. Frequency The average number of times an audience member is exposed to a commercial. Factors that affect frequency level: Repetition Compete in a highly competitive market Uniqueness of the message Noise level Competitors’ levels Media prices

  3. Reach and GRP Reach and GRP are directly related: GRP Reach 85% 700 86% 800 87% ..... 1300 90%

  4. Reach and Frequency Reach and frequency are indirectly related: GRP Reach Frequency 85% 1+ 600 50% 3+

  5. Reach, Frequency and GRP

  6. GRP and reach are directly related with each other. As GRP • increases, reach also increases, but there is a diminishing point. After that point reach remains constant. There is no need to increase the level of advertising after that point. How reach builds over time? Source: Advertising Media Planning, Exhibit 5.6, p.96

  7. When a campaign starts out, reach rises quickly, as many people • haven’t seen the advertisement before. • As the campaign becomes more mature, there are fewer and fewer new people exposed. Reach rises more slowly. Meanwhile, the number of people exposed more than once, frequency, increases. How reach builds over time?

  8. Effective Reach and Effective Frequency Effective Reach: The percent of the target audience exposed at the frequency level that is effective in the planner’s judgement. Effective Frequency: The amount of frequency the planner judges to be necessary for advertisements to be effective in communicating.

  9. How do we decide effective reach and frequency? Joseph W. Ostrow has defined factors that affect effective frequency as belows: Marketing factors Copy factors Media factors Source: Sissors, Baron, Advertising Media Planning, p.214

  10. The Ostrow Model of Effective Frequency

  11. How do we decide effective reach and frequency?

  12. Effective reach versus GRPs and cost Source: Advertising Media Planning, Exhibit 5.12, p.105

  13. Chapter 6Creating the Media Plan

  14. Media Planning and Buying Process Research (Target audience, competitors, media) Media Objectives Media Budget Media Strategy Planning and Buying Implementation Evaluation

  15. A Media Plan Should Include... Media objectives Competitive analysis Target audience analysis Media habits of the target audience Rationale for media selection Media strategy Flowchart

  16. A Media Plan May Also Contain... Seasonality Detailed broadcast times and costs Other media considered but not recommended Some alternative plans but not recommended Anything else that the account group thinks as the questions of the client

  17. What kind of consequences can local or small companies face when they don’t apply the steps of media planning? Time for discussion...

  18. Media Plan... • Who are you reaching? • Where are you reaching? • When are you reaching? Reaching the right target audience with the right medium at the right time with optimum number of repetition.

  19. Who? Target audience is the group of people whom the advertising is attempting to influence Life styles of target audience? Product usage and media behavior How do they spend their time and money? Focus Groups, surveys, interviews...

  20. Who? The target audience is decided by Creative group, Marketing planners, Account group, Client, Media planners

  21. Where? Geographic markets Declining markets New markets Heavy users’ markets…

  22. Where? Defensive strategy: Advertising in the markets where the brand’s sales are high. Offensive strategy: Advertising in the markets where the brand’s sales are low.

  23. Where? Which medium to use? Television Radio Internet Print Out of Home Mobile Transit Ambient

  24. When? Monthly sales patterns Budget constraints Competitive activities Specific goals for the brand Product availability Promotional requirements

  25. Scheduling Scheduling: Controlling advertising timing Continuity Flighting Pulsing

  26. GRP GRP Types of scheduling GRP Flighting Continous Pulsing

  27. CHAPTER 7 Offering Alternatives

  28. Evaluating and Selecting Media Vehicles TV Target audience Rating Share Dayparts Reach Frequency CPP/Sec Advertising clutter Channel reputation Ad position Available discounts

  29. Evaluating and Selecting Media Vehicles Print Reach Net Sales Target Market Pass-along readers CPT Editorial features Special editions Color reproduction Geographic flexibility Positioning opportunuties Advertising clutter and product protection Advertising copy checking and product restrictions Response to coupons, information or recipes Available discounts

  30. Evaluating and Selecting Media Vehicles Print Contd... Writing tone Reader respect Leadership in media class Believability

  31. Evaluating and Selecting Media Vehicles Radio Target audience Format Reach Radio listenership Ad position Second price

  32. Evaluating and Selecting Media Vehicles Cinema Ticket sales CPT Target audience Popularity of the films Places of the movie theaters Ad position

  33. Evaluating and Selecting Media Vehicles Outdoor Visibility Traffic flow Place Target audience CPT

  34. Evaluating and Selecting Media Vehicles Internet Target audience Impression Click through rate CPT

  35. Offering Different Alternatives You can offer different alternatives to your client in media strategy and planning. These alternatives are: Spending more money Spending less money Changing targets Changing media Translating the results of test markets

  36. CHAPTER 8 Making the Media Buys

  37. Key points in media buying and negotiation Negotiation Skills Media dynamics Objective of the buy Costs vary History of buying Media trends Good relations with media representatives Fair negotiation Last-minute opportunities Added value Mutual respect

  38. Types of Media Buying Cpp/sec. or GRP based Package Bulk buying Stand by Barter

  39. Factors in determining the size of an advertising budget Assesing the task of advertising Long and short term goals Profit margins Degree of product usage Difficulty in reaching target markets Frequency of purchase Effect of increased sales volume on production costs New product introductions Competitive activity

  40. Setting the budget Main issues to know while setting the media budget Beginning of the marketing year Net budget Gross Budget includes agency commission and VAT. Gross Budget=Net Budget+Agency Com.+VAT

  41. How much money is available for media? Ex: The client says they have 200.000USD. The budget is gross. What is the net budget?(AC is 15% including media agency and creative agency commission) Net Budget= 200.000/1.15/1.18=147.383USD

  42. How much money is available for media? Ex: The client’s gross media budget is 75.000USD. What is the net budget?(AC is 3% including only media agency commission) Net Budget= 75.000/1.030/1.18=61.700USD

  43. How much money is available for media? Ex: Media planner’s net newspaper budget is 25.000USD. What is the gross budget for the client?(AC is 3,5%) Gross Budget= 25.000*1.035*1.18=30.532USD

  44. Calculating Budgets of Each Medium Measured channel: Tv Budget= cpp/sec. x GRP x Avg. Film Sec. Example: We are planning to get 800GRP in one month. Our cpp/sec. is 6,8USD, and our avg. film length is 15sec.What is our tv budget for measured channels? Tv budget= 6,8 x 800 x 15=81.600USD

  45. Calculating Budgets of Each Medium Non measured channel Tv Budget= sec. price x Avg. film length x # of spots per day x # of days for non measured channels Example: We are planning to use NTV for 30 days with a 30 sec. advertising film. Second price for NTV is 7USD, and we will use 4 spots per day. What is the budget for NTV? Tv budget for NTV= 7 x 30 x 4 x 30=25.200USD

  46. TV Planning and Buying • Issues to be considered • Ratings • Target audience • Content • Cpp/sec, sec. price • Packages

  47. Calculating Budgets of Each Medium Newspaper Budget = price of one x clm*cm x # of insertions Example: We will use Hurriyet in our plan. One clm*cm for Hürriyet is 30USD. The size of our ad is 5clm*25cm. We will have 2 insertions in Hurriyet. What is the budget? Budget = 30 x 125 x 2=7500USD

  48. Newspaper Planning and Buying • Issues to be considered • Circulation and net sales • Target audience • Clm*cm price, CPT • Frequency • Days

  49. Calculating Budgets of Each Medium Radio Budget = second price x radio spot second x # of spots per day x # of days Example: Sec. price for Power Fm is 10USD. We have a radio spot for 30sec. Our plan is using 5 spots per day for 20 days. What is the radio budget? Budget=10 x 30 x 5 x 20= 30.000USD

  50. Radio Planning and Buying • Issues to be considered • Listenership rates • Target audience • Second price • Frequency • Days