Media Expenditures to Reach $1 Trillion

Traditional Media
Broadcast networks (TV and cable) 100

Satellite radio stations 2

TV stations 3,510

Consumer magazines 5,340

Newspapers (daily and weekly) 8,100

Radio stations 13,898

Media Terminology
Media Planning
Media Objectives Media Strategy Media Broadcast Media

A series of decisions involving the delivery of messages to audiences

Goals to be attained by the media strategy and program Decisions on how the media objectives can be attained Various categories of delivery systems, including broadcast and print media Either radio or television network or local station broadcasts

Media Terminology
Print Media
Media Vehicle Reach

Publications, such as newspapers, magazines, direct mail, outdoor, etc.

The specific carrier within a medium category Number of different audience members exposed at least once in a time period The potential of audience that might receive the message through the vehicle Number of times the receiver is exposed to the media vehicle in a time period

Coverage

Frequency

Developing the Media Plan

Situation analysis Marketing strategy plan Creative strategy plan

Setting media objectives

Determining media strategy Selecting broad media classes Selecting media within class Media use decision broadcast Media use decision print Media use decision other media

Media Planning Difficulties

Measurement Problems Lack of Information

Problems in Media Planning

Time Pressure

Inconsistent Terms

Developing a Media Plan

Analyze the market

Establish media objectives Develop media strategy Implement media strategy Evaluate performance

Analyzing Market Potential

Index Number
Percentage of users in a demographic segment Percentage of population in the same segment

Index =

X 100

Brand and Category Analysis

Brand Development Index

Percentage of brand to total U.S. sales in market Percentage of total U.S. population in market

BDI =

X 100

Brand and Category Analysis

Category Development Index

Percentage of total product category sales in market CDI = Percentage of total U.S. population in market X 100

Test Your Knowledge

In calculating both the brand development index (BDI) and the category development index (CDI), a media planner obtains the following results: Low BDI and High CDI. What do these results imply? A) High market share; good market potential B) Low market share; good market potential

C) High market share; monitor for sales decline

D) Low market share; poor market potential

Brand and Category Analysis

High BDI High CDI

Low BDI

High market share Good market potential High market share Monitor for sales decline

Low market share Good market potential Low market share Poor market potential

Low CDI

Brand and Category Analysis

High BDI High CDI The market usually represents good sales potential for both the product and the brand. Low BDI The product category shows high potential but the brand isnt doing well; the reason should be determined. Both the product category and the brand are doing poorly; not likely to be a good place to advertise.

The category isnt selling well but the brand is; may be a good market in which to advertise but should be monitored for sales decline.

Low CDI

Target Audience Coverage

Population excluding target market Target market Media coverage Media overexposure
Target Market Proportion Full Market Coverage Partial Market Coverage Coverage Exceeding Market

Geographic Coverage

Three Scheduling Methods

Continuity

Flighting

Pulsing

Jan

Feb Mar

Apr May Jun

Jul

Aug Sep Oct Nov Dec

Reach and Frequency

A. Reach of One Program B. Reach of Two Programs

C. Duplicated Reach of Both

D. Unduplicated Reach of Both

Graph of Effective Reach

Marketing Factors Determining Frequency

Marketing Factors

Brand Loyalty

Brand Share

Usage Cycle

Brand History

Share of Voice

Purchase Cycles

Target Group

Message Factors Determining Frequency

Message or Creative Factors

Message Complexity Message Uniqueness New Vs. Continuing Campaigns Image Versus Product Sell Message Variation Wearout Advertising Units

Media Factors Determining Frequency

Clutter Scheduling Repeat Exposure

Media Factors
Attentiveness

Editorial Environment Number of Media Used

Flexibility in Media Planning Strategies

Market opportunities

Market threats

Flexibility

Changes in media or media vehicle

Availability of media

Test Your Knowledge

Why should an effective media strategy be flexible? A) Due to the potential development of new advertising media B) Due to an alteration of a competitor's media schedule C) Due to the unavailability of the desired medium D) Due to a drop in the ratings of a show previously on the media schedule

E) Due to all of the above

Determining Relative Cost of Print Media

Cost per thousand (CPM) CPM =

Cost of ad space (absolute cost)

Circulation

X 1,000

Calculating CPM Based on Target Audience

Determining Relative Cost of Broadcast Media

Cost per rating point (CPRP) CPRP =

Cost of commercial time Program rating

Evaluation and Follow-Up

How well did these strategies achieve the media objectives?

How well did the media plan contribute to attaining the overall marketing and communications objectives?

Use again, or analyze flaws

Super bowl ads

Television Pros and Cons

Advantages
Mass coverage High reach

Disadvantages
Sight, sound, motion Low selectivity

High prestige
Low cost per exposure Attention getting Favorable image

Short message life

High absolute cost High production cost Clutter

Radio Pros and Cons

Advantages
Local coverage Low cost High frequency Flexible Low production cost

Disadvantages
Audio only Clutter

Low attention getting

Fleeting message

Well-segmented audience

Magazine Pros and Cons

Advantages
Segmentation potential Quality reproduction High information content Longevity Multiple readers

Disadvantages
Long lead time for ad placement Visual only Lack of flexibility

Newspaper Pros and Cons

Advantages
High coverage
Low cost Short lead time for placing ads Ads can be placed in interest sections Timely (current ads) Reader controls exposure Can be used for coupons

Disadvantages
Short life Clutter Low attention getting Poor reproduction quality Selective reader exposure

Outdoor Pros and Cons

Disadvantages
Short exposure time

Short ads

Advantages
Location specific High repetition Easily noticed

Poor image Local restrictions

Direct Mail Pros and Cons

Advantages
High selectivity
Reader controls exposure High information content Repeat exposure opportunities

Disadvantages
High cost per contact Poor image (junk mail) Clutter

Internet Pros and Cons

Advantages
User selects product information
User attention and involvement Interactive relationship Direct selling potential Flexible message platform

Disadvantages
Limited creative capability Websnarl

Technology limitations Few measurement techniques

Limited reach

Test Your Knowledge

In terms of media vehicles, ______ would be most efficient medium for the Got Milk slogan.

A) television
B) interactive media C) radio

D) outdoor
E) newspapers