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.

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.
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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.
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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.
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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
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Newspapers
Characteristics
Advantages
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

Disadvantage
s

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

Segmentation
potential
Quality
reproduction
High information
content
Longevity
Multiple readers

Disadvantage
s

Long lead time

for ad placement
Visual only
Lack of flexibility

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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.

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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.
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BMG

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Radios Daily Reach by

Daypart for Adults 18+

15

Radio Characteristics
Advantages

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

Disadvantage
s

Audio only
Clutter
Low attention
getting
Fleeting message
16

Television Characteristics
Advantages

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

Disadvantage
s

Low selectivity
Short message
life
High absolute
cost
High production
costs

17

Outdoor Characteristics
Advantages

Location specific
High resolution
Easily noticed

Disadvantage
s

Short exposure
time requires
short ad
Poor image
Local restrictions
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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.

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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

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

Disadvantage
s

Limited creative
capabilities
Web snarl
(crowded access)
Technology
limitations
Few valid
measurement 21

Direct Mail
Characteristics
Advantages

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

Disadvantage
s

High cost/contact
Poor image (junk
mail)
Clutter

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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
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MARKET ANALYSIS AND

TARGET MARKET
ADVERTISING TARGET
IDENTIFICATION
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

EXAMPLES

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 SIXMONTH PERIOD
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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
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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

BDI =

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

6.28
6.84

6.28
10.71

10.06

8.34

% SALES
100
157
83

BDI

COMMENTS

FLAT SAL MKT

STRONG SAL MKT

WEAK SAL MKT

32

Brand and Category

Analysis
Brand Development Index

CDI =

Percentage of product
category total sales in market
Percentage of total U.S.
population in market

X 100

33

High CDI

High
High market
market share
share
Good
Good market
market
potential
potential

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

Low CDI

Brand and Category

Analysis
High BDI
Low BDI

High
High market
market share
share
Monitor
Monitor for
for sales
sales
decline
decline

Low
Low market
market share
share
Poor
Poor market
market
potential
potential
34

Low CDI

High CDI

Brand and Category

High BDI
Low BDI
Analysis
The
Themarket
marketusually
usuallyrepresents
represents
good
goodsales
salespotential
potentialfor
forboth
both

The
Theproduct
productcategory
categoryshows
shows
high
highpotential
potentialbut
butthe
thebrand
brand

the
theproduct
productand
andthe
thebrand.
brand.

isnt
isntdoing
doingwell;
well;the
thereason
reason
should
shouldbe
bedetermined.
determined.

The
Thecategory
categoryisnt
isntselling
sellingwell
well
but
butthe
thebrand
brandis;
is;may
maybe
beaa

Both
Boththe
theproduct
productcategory
categoryand
and
the
thebrand
brandare
aredoing
doingpoorly;
poorly;

good
goodmarket
marketin
inwhich
whichto
to
advertise
advertisebut
butshould
shouldbe
be

not
notlikely
likelyto
tobe
beaagood
goodplace
place
to
toadvertise.
advertise.

monitored
monitoredfor
forsales
salesdecline.
decline.
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Target Audience
Population excluding target market
Coverage
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

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Graph of Effective Reach

Percentage Reach

25%
20%

Ineffective
Reach
Effective
Reach

15%

Ineffective
Reach

10%
5%
0% 0

10

15

Exposures
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Marketing Factors Important

to
Determining Frequency

Brand history

Brand share

Brand loyalty

Purchase cycles

Usage cycle

Competitive share of voice

Target group
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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
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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

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

PER-PAGE COST
CIRCULATION
CALCULATION OF CPM

$156,000
4.0MM
156,000 X 1,000
4,000,000
$39.00
$3,500
11
109,000
$3,500/11
$318.18
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COST OF MEDIA-CONTINUED

NEWSPAPER

COST PER PAGE

$32,205
COST PER INCH
$268.60
CIRCULATION
499,000
CALCULATION

CPMPAGE COST X 1,000

CIRCULATION

CPM$32,205 X 1,000
499,000
$64.54
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CHARACTERISTICS OF MEDIA

MATCHING OF MEDIA TO MARKETS

EACH MEDIA HAS ITS OWN

CHARACTERISTICS THAT MAKES IT
BETTER OR WORST FOR ATTAINING
SPECIFIC OBJECTIVES

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