The Media Business

The word media comes from the Latin word middle. Media carry messages to or from a targeted audience and can add meaning to these messages.

Media Terminology

Media Planning - A series of decisions involving the delivery of messages to audiences. Media Objectives - Goals to be attained by the media strategy and program. Media Strategy - Decisions on how the media objectives can be attained. Media - The various categories of delivery systems, including broadcast and print media. Broadcast Media - Either radio or television network or local station broadcasts.
2

Media Terminology

Print Media - Publications such as newspapers, magazines, direct mail, outdoor, and the like.
Media Vehicle - The specific message carrier, such as the Washington Post or Tonight Show. Coverage - The potential audience that might receive the message through the the vehicle. Reach - The actual number of individual audience members reached at least once by the vehicle. Frequency - The number of times the receiver is exposed to vehicle in a specific time period.

Differences Between Levels of Message

Involvement and Number of Responses

Media Classifications
Most mass media guarantee only the opportunity for a large audience to be exposed to a brand. Communication vehicles are specific publications, networks, channels, stations, and programs that make up a medium.
5

Media Classification Levels

Media Intrusiveness
Media vary in their degree of intrusiveness. Ways to reduce intrusiveness include: Chose media in which the target audience is interested in the product. Ask customers what type of information they would like to receive, in what way, and when.
7

Relative Degrees of Media Intrusiveness

Print Media
Print media include: Newspapers Magazines Directories Mail brochures Mail Packaging All other forms, which are produced by printing and are relatively permanent
9

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

Advantages

Short life Clutter Low attentiongetting capabilities Poor reproduction quality Selective reader exposure

Disadvantages

10

Magazines Characteristics
Advantages

Disadvantages

Segmentation potential Quality reproduction High information content Longevity Multiple readers

Long lead time for ad placement Visual only Lack of flexibility

11

Directories
A directory is both a reference and an advertising medium. The most widely known is the Yellow Pages. Yellow Pages advertising is often the primary or only form of advertising used by many small, local retailers. A weakness of the Yellow Pages is that they are printed only once a year.
12

Broadcast Media
Broadcast media include radio and television. Broadcast media differs from print in that people often do other things while listening or viewing, so messages are fleeting. Broadcast commercials are more intrusive than print ads.
13

BMG

14

Radios Daily Reach by Daypart for Adults 18+

15

Radio Characteristics
Advantages

Disadvantages

Local coverage Low cost High frequency Flexible Low production costs Well-segmented audiences

Audio only Clutter Low attention getting Fleeting message

16

Television Characteristics
Advantages

Disadvantages

Mass coverage High reach Impact of sight, sound, and motion High prestige Low cost per exposure Attention getting Favorable mage

Low selectivity Short message life High absolute cost High production costs Clutter

17

Outdoor Characteristics
Advantages

Disadvantages

Location specific High resolution Easily noticed

Short exposure time requires short ad Poor image Local restrictions

18

INTERACTIVE

A VARIETY OF MEDIA THAT ALLOWS THE CONSUMER TO INTERACT WITH THE SOURCE OF THE MESSAGE, ACTIVELY RECEIVING INFORMATION AND ALTERING IMAGES, RESPONDING TO QUESTIONS, AND SO ON.

19

INTERACTIVE MEDIA

AUDIOTEX AUTOMATED TELEPHONE INFORMATION SERVICES CD-ROM FAX ON DEMAND INTERACTIVE TV INTERNET KIOSKS AVAILABLE IN HOTELS, SHOPPING MALLS ONLINE SERVICES AMERICAN ONLINE, PRODIGY SCREEN TELEPHONY TELEPHONES EQUIPPED WITH KEYBOARD TO ENTER AND ACCESS DATA

20

Internet / Interactive Media Characteristics

Advantages

Disadvantages

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

Limited creative capabilities Web snarl (crowded access) Technology limitations Few valid measurement techniques Limited reach

21

Direct Mail Characteristics

Advantages

Disadvantages

High selectivity Reader controls exposure High information content Opportunities for repeat exposures

High cost/contact Poor image (junk mail) Clutter

22

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

23

MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION

ADVERTISING TARGET SIMMONS MARKET RESEARCH BUREAU--AUDIENCE SIZE AND COMPOSITION--100 PUBLICATIONS, >800 CONSUMER PRODUCTS AND SERVICES MEDAIMARK RESEARCH, INC--DEMOGRAPHIC & PRODUCT USAGE, PROVIDES LIFESTYLE INFORMATION & MEDIA USAGE CHARACTERISTICS OF THE POPULATION WHERE TO PROMOTE BUYING POWER INDEX--SALES & MARKETING MGT MAGAZINE BRAND DEVELOPMENT INDEX CATEGORY DEVELOPMENT INDEX
24

ESTABLISHING MEDIA OBJECTIVES

GOALS FOR THE MEDIA PROGRAM

LIMITED TO THOSE THAT CAN BE ACCOMPLISHED THROUGH MEDIA USE BROADCAST MEDIA TO PROVIDE COVERAGE OF 80 % OF THE TARGET MARKET OVER A SIX MONTH PERIOD REACH 60% OF THE TARGET AUDIENCE AT LEAST THREE TIMES OVER THE SAME 25 SIX-MONTH PERIOD

EXAMPLES

MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION-continued

INTERNAL FACTORS--SIZE OF MEDIA BUDGET, MGT & ADMIN CAPABILITIES, ORGANIZATION OF THE AGENCY EXTERNAL FACTORS--ECONOMY, RAISING COST OF MEDIA, TECHNOLOGY SURVEY OF BUYING POWER INDEX-POTENTIAL OF A METRO AREA
26

MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION-continued

BRAND DEVELOPMENT INDEX-COMPARES % OF THE BRANDS TOTAL U.S. SALES IN A GIVEN MARKET AREA WITH THE % OF TOTAL POPULATION IN THE MARKET TO DETERMINE SALES POTENTIAL CATEGORY DEVELOPMENT INDEX-POTENTIAL FOR DEVELOPING THE TOTAL PRODUCT CATEGORY 27

EVALUATION AND FOLLOW-UP

HOW WELL DID THESE STRATEGIES ACHIEVE THE MEDIA OBJECTIVES? HOW WELL DID THIS MEDIA PLAN CONTRIBUTE TO ATTAINING THE OVERALL MARKETING AND COMMUNICATIONS OBJECTIVES
28

Media Planning Difficulties

Lack of information Inconsistent terms Serious time pressure Measurement problems

29

Media Planning Criteria Considerations

The media mix Target market coverage Geographic coverage Scheduling Reach versus frequency Creative aspects and mood Flexibility Budget considerations

30

Brand and Category Analysis

Brand Development Index Percentage of brand to total U.S. sales in market
BDI =

Percentage of total U.S. population in market

X 100

31

BRAND DEVELOPMENT INDEX

A BDI IS CALCULATED BY DIVIDING THE PERCENT OF SALES A MARKET ACCOUNTS FOR, BY THE MARKETS PERCENTAGE OF POPULATION OF THE U.S. AN INDEX OF 100 WOULD INDICATE A FLAT MARKET--SALES AND POPULATION ARE EQUAL. AN INDEX OF LESS THAN 100 WOULD INDICATE A POOR SALES MARKET--SALES ARE LESS THAN THE POPULATION, AND AN INDEX OVER 100 INDICATES A STRONG SALES MARKET

% POPULATION

% SALES
6.28 10.71
8.34

BDI
100 157
83

COMMENTS
FLAT SAL MKT
STRONG SAL MKT WEAK SAL MKT
32

6.28 6.84
10.06

Brand and Category Analysis

Brand Development Index Percentage of product category total sales in market
CDI =

Percentage of total U.S. population in market

X 100

33

Brand and Category Analysis

High BDI High CDI High market share Good market potential High market share Monitor for sales decline Low BDI Low market share Good market potential Low market share Poor market potential
34

Low CDI

Brand and Category Analysis

High BDI High CDI
The market usually represents good sales potential for both

Low BDI
The product category shows high potential but the brand

the product and the brand.

isnt doing well; the reason

should be determined.

Low CDI

The category isnt selling well but the brand is; may be a good market in which to

Both the product category and the brand are doing poorly; not likely to be a good place

advertise but should be

monitored for sales decline.

to advertise.

35

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

36

Three Scheduling Methods

Continuity Flighting Pulsing

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

37

Reach and Frequency

Reach of One Program Reach of Two Program

Total market audience reached

Total market audience reached

Duplicated Reach of Both

Unduplicated Reach of Both

Total reached with both shows

Total reach less duplicate

38

Graph of Effective Reach

25%

Ineffective Reach Effective Reach Ineffective Reach

Percentage Reach

20% 15% 10% 5% 0% 0 5 10 15

Exposures
39

Marketing Factors Important to Determining Frequency

Brand history
Brand share Brand loyalty Purchase cycles Usage cycle Competitive share of voice Target group
40

Message or Creative Factors Important to Determining Frequency

Message complexity Message uniqueness New vs. continuing campaigns Image versus product sell Message variation Wearout Advertising units

41

Media Factors Important to Determining Frequency

Clutter
Editorial environment

Attentiveness
Scheduling

Number of media used

Repeat Exposures
42

Determining Relative Cost of Media

Cost per thousand (CPM)

CPM =

Cost of ad space (absolute cost) Circulation

X 1,000

43

Determining Relative Cost of Media

Cost per rating point (CPRP)

CPRP =

Cost of commercial time Program rating

44

COST OF MEDIA
MAGAZINE

PER-PAGE COST CIRCULATION CALCULATION OF CPM

CPM BROADCAST COST PER-PER SPOT AD RATING REACH (HOUSEHOLDS) CALCULATION CPRP

$156,000 4.0MM 156,000 X 1,000 4,000,000 $39.00 $3,500 11 109,000 $3,500/11 $318.18
45

COST OF MEDIA-CONTINUED

NEWSPAPER

COST PER PAGE COST PER INCH CIRCULATION CALCULATION CPM

$32,205 $268.60 499,000 PAGE COST X 1,000 CIRCULATION $32,205 X 1,000 499,000 $64.54
46

CPM

CHARACTERISTICS OF MEDIA

MATCHING OF MEDIA TO MARKETS

EACH MEDIA HAS ITS OWN CHARACTERISTICS THAT MAKES IT BETTER OR WORST FOR ATTAINING SPECIFIC OBJECTIVES

47