Media Strategy

Budget Strategy
 7-Step Decision Making Process
• Target Market Selection
• Communication Objectives
• Message Strategy
• Creative Strategy
• Media Strategy
• Budgeting
• Research Strategy

2
 Media Terminology

Media The process of selecting media time and space to

Planning disseminate advertising message

Media Goals to be attained by the media strategy and

Objectives program

Media Decisions on how the media objectives can be

Strategy attained

Various categories of delivery systems, including

Media
broadcast, print, interactive and alternative media

Media The specific carrier within a medium category

Vehicle
Developing a Media Plan

Analyze the market

Establish media objectives

Develop media strategy

Implement media strategy

Evaluate performance
 Media Objectives
• To what degree the target audience must be exposed
to (and interact with) brand messages in order to
achieve communication objectives?
– Use broadcast media to reach 80 percent of the target
market over a six-month period
– Reach 60 percent of the target audience at least three
times during three months period
– 25 percent of the target audience will form a
preference for a new brand in the first month of the
brand launch
 Target Audience Coverage

Population excluding target market

Target market
Media coverage
Media overexposure

Target Full Partial Coverage

Market Market Market Exceeding
Proportion Coverage Coverage Market
 Reach, Frequency, and GRP
• Reach
– Total number of people exposed to the media plan
(media dispersion)
• A percentage
• Measures accumulation of audience over time
• Doesn’t double-count multiple exposures
• Frequency
– A measure of repetition
• Gross Rating Points (GRPs)
– GRP = Reach x Frequency
 Effective Reach and Frequency
• Effective Frequency
– The minimum number of media exposures for a
communication goal to be achieved
• Naples' effective threshold of repetition
• The Ostrow Model of Effective Frequency
• Effective Reach
– The reach at the effective frequency level
 Media Strategies
• Three crucial decisions:
– What media to use (media mix)
– Where to advertise (geographic allocation
decision)
– When to advertise (timing)
Media Concentration vs. Media Dispersion

• Media concentration approach

– Uses fewer media categories and greater spending
per category

• Media dispersion approach

– Use multiple media categories
 Media Mix Strategy (p.372)

• Print media
• Broadcast media
• Alternative media
• Digital/interactive
media

11
 Traditional Media
• Print media:
– Newspaper, magazines, posters, direct mails, yellow pages.
• Broadcast media:
– Broadcast television, cable television, on-demand television,
TV/web integration, local/network/national radio, podcast.

12
 Alternative Media
• Alternative media are media that differ from
established or dominant types of media in terms
of their content, production, or distribution.
– Alternative media take many forms including print,
audio, video, Internet and street art.
– It includes outdoor, in-store, transit, cinema media.

13
Out-Door Billboards

14
MTR

15
Bus Shelter

16
Harbor Signs

17
Tunnels

18
Outdoor TV

19
Transit Media

20
Coffee Chain

21
Street Art & Creative Executions

22
Catch People “In the Bottle Neck”

23
 Interactive Media
• Interactive media is any media that responds to user
input. Common examples are websites, application
software, apps, games, virtual reality, interactive video,
social media, and digital posters.

24
 A Brand Contact Perspective
Consider any planned and
unplanned form of
exposure to and interaction
with a product or service

https://www.youtube.com/wat
ch?v=8LgVw0ZQ52g
 Geographic Allocation Decisions

• In general, company that sells nationally can

take one of three approaches to geographic
spending allocation:
– A national approach (advertise in all markets)
– A spot approach (advertise only in selected markets)
– A combined approach (advertise in all markets with
additional spending in selected markets)
Where to promote? - Brand and Category Analysis

Brand Development Index

Market X’s Share of Total Brand

Sales
BDI = X 100
Market X’s Share of National
Population
 Brand and Category Analysis

Category Development Index

Market X’s Share of Total Category Sales

CDI = X 100
Market X’s Share of National
Population
 Brand and Category Analysis

High BDI Low BDI

The market usually represents The product category shows high

High CDI

good sales potential for both potential but the brand isn’t
the product and the brand. doing well; the reason should be
determined.

The category isn’t selling well Both the product category and
but the brand is; may be a good the brand are doing poorly; not
market in which to advertise likely to be a good place to
Low CDI

but should be monitored for advertise.

sales decline.
 Media Schedule Decisions

Continuity

Flighting

Pulsing

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
 A Summary of Media Strategy
• Media objective
• Media mix strategy
– Choice of media mix
– Briefly analyze the advantages and disadvantages of
media choice
– Why it is appropriate for your choice of target
market(s) and communication objective(s)?
• Media timing and scheduling
 An Example- Media Timing
September October November December
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Outdoor
1 - Poster 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
2 - MTR 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Broadcast
3 - TV (X) 0 0 0 0 1 1 1 1 0 0 0 0 1 1 1 1

Print
4 - Magazine (X,Y) 1 1 1 1 0 0 0 0 1 1 1 1 1 1 1 1

PR
5 - Sponsorship 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1

6 - Press release 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0
 7-Step Decision Making Process
• Target Market Selection
• Communication Objectives
• Message Strategy
• Creative Strategy
• Media Strategy
• Budgeting (P.246-261)
• Research Strategy

34
 Top-Down Budgeting Methods

Affordable
Method

Return on Arbitrary
Top
Investment Allocation
Management

Competitive Percentage
Parity of Sales
Bottom-Up Budgeting

Object and Task Method

Isolate objectives

Determine tasks required

Estimate required expenditures

Monitor

Reevaluate objectives
How much it will cost me to advertise?

• Rate Card:
– A rate card is a
document containing
prices and descriptions
for the various ad
placement options
available from a media
outlet.
• Circulation Information
• Ratings point
Cost Models for Online Advertising
 Cost Models for Online Media

• Cost per thousand impression (CPM): The amount the

advertiser pays for 1,000 advertisement impressions on
one webpage.

Total Cost = Total Impressions X CPM ÷ 1000

• Cost per click (CPC): The amount the advertiser pays

each time a website visitor actually clicks on the ad.

Total Cost = CPC * Total Clicks

 How much does online adverting cost the advertiser?

• The average cost of an advertisement on Google AdWords is $2.32 per

click on the search network. The average cost per click of an ad on the
Display Network is under $0.58.

• The average CPA in a Google advertising search campaign is $59.18.

• The average small business using AdWords spends between $9,000 and
$10,000 per month on their online advertising campaigns. That's $100,000
to $120,000 per year.

• The average cost per click of an online Facebook ad is $1.72. The average
CPA on Facebook Ads is $18.68.

• The typical CPM on Facebook Ads is around $10.

• The typical CPM for an Instagram ad is closer to $5.

All the dollar amounts are US Dollars!
Source: Word Stream, July 2017
How much does online adverting cost the advertiser?

Yahoo homepage takeover: around USD 450,000

YouTube homepage takeover: around USD 400,000

How much does online adverting cost the advertiser?

Facebook log-out screen ad: around USD 100,000

Twitter promoted trending topic: around USD 120,000

 A Summary of Budget Strategy

• Recommend a bottom-up budgeting method

• Try show your itemized calculations. Explain how
you determined it and why it is reasonable.
• Propose a total campaign budget.
• Include media placement rate cards in appendix.