Advertising Budget Media Planning and Media Research

Advertising Budget

Advertising Budget Process

Identifying Marketing Communication Objectives
Increase Sales/Improve Brand Image/Create Brand Awareness/ Influence Buyer attitudes

Fix Budgets and allocate Implement the Plan Control the budget

Advertising Budgets

2 broad categories
Judgmental
Easy to implement, Not as effective Arbitrary, Management Intutions

Data oriented
Better results, need more time & resources Quantitative approach

Advertising Budgets

Judgmental
Percentage of Sales Method Arbitrary Method Affordable Method

Advertising Budgets

Percentage of Sales Method

What Sales?
Previous year sales Expected sales

What Percentage?
Past spending Industry average

Advertising Budgets

Percentage of Sales Method (+)

Easy to implement Ad budget is in control Budget can be increased/decreased based on sales Suitable for companies showing steady growth rate

Advertising Budgets

Percentage of Sales Method (-)

Assumes advertising is the only variable for sales (-) Conflicts with Sales promotion (-) New products cannot be allocated budgets as ther is no history Does not address special situations like changes in competitors strategy

Advertising Budgets

Arbitrary Method
Experience and judgment of market and competitors move No pre defined guidelines Suitable to SMEs

Advertising Budgets

Affordable Method
Based on financial ability Ad budget is decided after considering all other costs. Followed by small scale enterprises. Unpredictable results and not sustainable.

Advertising Budgets

Data oriented
Competitive Parity method Object to task method Payout planning method

Advertising Budgets

Competitive Parity method

Communication budget is matched with that of competitor Reduces risk of overspending Assumptions
Competitor spending is optimal Competitor SWOT is same the firm

Focuses on amount to be spent and not on effectiveness

Advertising Budgets

Objective and task method

Identification of communication objective Designing the communication program Ascertaining the cost involved in each tasks
Production cost, media expenditure, ancillary cost, integration cost

Monitoring the program and control

Advertising Budgets

Payout Planning
Ad spending is an investment rather than expense Fixes budget based on future revenues. Aligns advertising spending with Product life cycle.

Media Planning

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 The 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 given time period The potential audience that might receive the message through the vehicle The number of times the receiver is exposed to the media vehicle in a specific time period
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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 Vehicle Media Use Decision Broadcast Media Use Decision Print
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Media Use Decision Other Media

Media Objectives

Key media objectives

Reach Frequency Continuity Costs

Media Objectives

Reach
% of target audience with opportunity for exposure to media vehicle(s) or media plan in a given time frame

Media Objectives

Frequency
average number of times target is likely to be exposed to the ad in a given time frame

The Difference between Reach and Frequency

Marketing Factors Determining Frequency

Marketing Factors

Brand Loyalty

Brand Share

Usage Cycle

Brand History

Share of Voice

Purchase Cycles

Target Group

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Message Factors Determining Frequency

Message or Creative Factors

Message Complexity

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

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Media Factors Determining Frequency

Clutter Scheduling Repeat Exposures

Media Factors
Attentiveness

Editorial Environment Number of Media Used

Reach and Frequency

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

Total market audience reached C. Duplicated Reach of Both

Total market audience reached D. Unduplicated Reach of Both

Total reached with both shows

Total reach less duplicate

Media Objectives

how long the campaign runs continuous vs. flighting vs. pulsation

Continuity

Three Scheduling Methods

Continuity

Flighting

Pulsing

Jan

Feb Mar

Apr May Jun

Jul

Aug Sep Oct Nov Dec

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Media Objectives
Cost : Determining Relative Cost of Media-Print

Cost per thousand (CPM) CPM =

Cost of ad space (absolute cost)

X 1,000

Circulation

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Media objectives
Cost : Determining Relative Cost of Media-Broadcast

Cost per rating point (CPRP) CPRP =

Cost of commercial time Program rating

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Media Strategy

Target Audience Decision Media Budgeting

Media Strategy: 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

Media Strategy

Media Budgeting
Not same as MC budget Allocation of funds to each medium for buying space in specified media vehicles

Selecting Media Class

Newspapers, Radio, TV, Magazines, Billboards, Internet, etc Factors affecting choice:
Reach of the media Audience size Competitor strategy Amount of info to be conveyed

Selecting Media Vehicle

Product fit Target audience Geographical flexibility

Media Use decision

Timing Continuity

Media Planning Difficulties

Measurement Problems Lack of Information

Problems in Media Planning

Time Pressure

Inconsistent Terms

 Chapter 10

The Marketing of Messages

Media

The Marketing of Messages

Today well cover
Media Speak

Media

&

Media Building Blocks

Strengths & Weaknesses

Building The Media Plan The Media Planning Revolution

Media Speak
Media/Medium/Vehicle
Media = collective noun Medium = one type of media Vehicle = single carrier

Media Speak
Audience/Coverage/Composition
Audience
number or % exposed to a vehicle

Audience Coverage
number or % reached by a single insertion in a specified area

Audience Composition
statistical breakdown of a media vehicles total audience

Media Speak
Reach & Ratings
Broadcast Media use Rating Points
% of Target Audience reached by a media vehicle

Print Media use Circulation

Number of copies sold or distributed

Media Speak
Above-the-Line/Below-the-Line
Above = paid advertising Below = sales promotion, PR, events

Traditional/Non-Traditional
Traditional = major mass media Non-Traditional = unique media opportunities and new media forms

Media Speak
Brand Contact Points & More
Brand Contact Points (Chapter 2) Personal Media Network (Chapter 2) Aperture (Chapter 2)
Clutter - a result of
More media channels More messages in each channel More media channels More audiences. Smaller audiences.

Clutter & Fragmentation

Fragmentation - a result of

Media Building Blocks

Strengths & Weaknesses:
First, well examine the Strengths & Weaknesses of each Medium

Then, well take you through the steps of Building a Media Plan.

Strengths & Weaknesses:

Portable Time independent Not a fleeting medium - it lasts Accommodates complex copy Good picture quality Easier to feature more than one product Versatility Can be preserved and reread Journalistic content = credibility & prestige Can deliver coupons

Print

Strengths & Weaknesses:

Prestigious Readers upscale Readers use ads Less lead time Strong local emphasis Sense of immediacy Cataloging Value Reproduction varies Not much passalong Can be expensive Cluttered Not read thoroughly Poor demographic selectivity May have adverse editorial

Newspaper

Strengths & Weaknesses:

Special audience Building audience opportunities takes time

Magazine

Can be long-lasting Can be cluttered

Repeat exposure Early closing

High passalong
Creative flexibility

dates

Strengths & Weaknesses:

Frequency and Poor demographic repetition selectivity Large audiences. Limited time. Low cost. Limited copy.
Visual impact

Out-of-Home

Blanket
coverage Versatility

Complicated logistics Can be expensive Restrictions

Strengths & Weaknesses:

Various formats. Radio is Special audiences. cluttered Inexpensive Radio spots are Affordable frequency fleeting
Affordable production

Radio

Reaches mobile market Scheduling & creative flexibility

Strengths & Weaknesses:

Impact Market coverage Intrusive Flexible Cost-efficient (CPM) Prestigious Fleeting Expensive

Television

Big shows. Big Bucks. Production can be expensive

Best shows have limited availability

Strengths & Weaknesses:

Geographic flexibility Low ratings Inexpensive Reporting is Varied programming. inadequate Specialized audiences. Upscale audiences Wide variety of ad formats

Cable TV

Media Plan:

Building
The

Building The Media Plan:

Successful media planning is the task of selecting and scheduling media that will reach as many of the target audience as frequently as possible for the least amount of cost.

Building The Media Plan:

The Media Plan is

a blueprint for future action organizing a brands advertising into media objectives and strategies that are:
Goal-Oriented - increase sales/share
Make sense - effective/efficient Manageable - can be executed, flexible, developed before the buy.

Building The Media Plan:

Media Objectives
Media Strategies
WHAT your Media Plan hopes to achieve HOW the Media Objective will be implemented

Building The Media Plan:

Evaluation & Analysis Planning Media Objectives Media Strategies The Media Buy Post-Buy Analysis

Building The Media Plan:

Evaluation & Analysis

Seasonality
Brand History Budget Purchase Cycle Prime Prospect Geography Competition Promotional Activity

Building The Media Plan:

Evaluation & Analysis + Problems & Opportunities

Similar to Situation Analysis in Chapter 8

Becomes foundation for The Media Plan

Building The Media Plan:

Planning Media Objectives Target Audience

Seasonality Geography Reach & Frequency

Building The Media Plan:

Planning Media Objectives Target Audience Profile

Demographics Product Usage (Heavy/Med/Light) Media Usage
PMN - Personal Media Network
Media Consumption Core Audience Aperture (Time/Place/Circumstance)

Building The Media Plan:

Planning Media Objectives Seasonality

Seasonal sales
Media Efficiency Competitive media presence Promotions Scheduled

Building The Media Plan:

Planning Media Objectives Geographic Considerations

National/Regional/Local
National/Regional/Local Offensive or Defensive Strategy?

Distribution Budget

Competition

Sales by Market

Building The Media Plan:

Planning Media Objectives Reach and Frequency

Consumer Motivation Purchase Cycle Purchase Decision Message Complexity Ad Effectiveness/Memorability Commercial Length Time of Day/Attention Competition

Building The Media Plan:

Planning Media Nature of Media/Message Strategies

Media Strength/Weakness Media Efficiencies - CPM Eliminate Media that dont fit Brand Consider Selling Environments National vs. Local Spending Scheduling Strategies Synergy between Media/Ad

Building The Media Plan:

Planning Media Strategies Media Efficiencies - CPM

CPM = Cost Per Thousand, the universal form of comparing the efficiency of different media. The following is a comparison of costefficiency for reaching Women 18-49

Building The Media Plan:

Network Radio :30 Day Network :30 Cable TV :30 Print 4-color page AM Network :30 Late Night :30 Syndication :30 Evening News :30 Prime Network :30

CPM - Women 18-49

2.81 5.35 6.05 7.67 11.14 12.22 13.29 17.80 18.31

Building The Media Plan:

Planning Media Strategies Scheduling Strategies

Four Types of Ad Schedules:

Building The Media Plan:

The Media Buy

(Implementation)

Buying - a separate function

Involves tough-minded negotiating Involves long-term relationships

Media Buying Services

Building The Media Plan:

Post-Buy Analysis
Measure actual performance
Media makes guarantees Involves large amounts of $

If below guarantee, media must provide a makegood. And, if you do a good job

Building The Media Plan:

You Get to Do It Again Next Year!

Media Planning:
A New Revolution
New importance of the media function
Unbundling = New Media Agencies New Global Relationships
Mega-brands and mega-agencies

Growing # of media choices means growing need for media planning Development of account planning style media planning

Media Planning:
A New Revolution
It will be more challenging to work in advertising in new media its a skys the limit type of thing. And advertisers have to know all the possibilities. Jayne Spitler, Leo Burnett/StarCom

Media Planning:
A New Revolution
The creative people and the media people must intertwine their work as much as possible. They have to understand the overall project is part of a targeting process. David Martin, CEO/Penta-Com

Media Planning:
A New Revolution
In a rapidly changing media world, an understanding of the consumer/ media relationship is of fundamental importance to the process. Andy Tilley. Zenith Media

Media Planning:
A New Revolution
Todays toughest question is how to find your customers at the most strategic time thats why media is the new creative frontier. Keith Reinhard, Chmn DDB

 Chapter 10

The Marketing of Messages

Media

Questions Discussion:

&

Media Research Refer Advertising & Promotions: An IMC Perspective Kruti Shah Alan DSouza Page 807 - 811