Chapter 14 Media Strategy and Planning for Advertising and IBP 2006 Thomson South Western The Transition to Part 4 Placement Starting to study the placement phase of advertising and IBP Focus is on using media and promotions that reach the target audience Even a great message will be ineffective if it does not reach the proper audience 2006 Thomson South Western Chapter 14 Media Planning 2 Introductory Scenario Media Transitions The 2003 SuperBowl attracted twice as many viewers as the 1967 SuperBowl but cost 10x as much Advertisers are looking to more and different media to effectively reach target audiences 2006 Thomson South Western Chapter 14 Media Planning 3 1 The Very Wide World of Promotional Media Important Changes 1 1 Agency Compensation 15 percent commission is gone Most clients now pay on a fee for service basis Ad creation and placement not at same agency 2 More Media Traditional media lines are blurred Firms push news stories into media Movies can be promotional vehicles 3 Consolidation and Shifting Channel Power Many agencies are now larger than their clients Big agencies hold power due to buying media in quantity 2006 Thomson South Western Chapter 14 Media Planning 4 The Very Wide World of Promotional Media Important Changes 2 4 Thinner Margins Thinner Shops Despite size agency profit margins are smaller Fewer people working more hours Publicly traded companies seek bottom line 5 Greater Accountability ROI Trust use to be basis for relationship Other forms of media produce more measurable results than mass media 6 Globalization Today media exist in a transnational space Lack of standardized measurement makes pricing complex 2006 Thomson South Western Chapter 14 Media Planning 5 The Very Wide World of Promotional Media Important Changes 3 7 Free Content Internet information has consumers used to free content Why buy a magazine full of ads for 4 50 Nontraditional media attracting more dollars 8 E Commerce E Media Revolutionized the way consumers consume Consumers have more power in the transaction due to dealproneness and price cost transparency 2006 Thomson South Western Chapter 14 Media Planning 6 2 The Very Wide World of Promotional Media Important Changes 4 9 Hyper Clutter Worse than ever on TV and in magazines Consumers choosing no ad channels satellite radio 10 Ethnic Media Ethnic media on rise with ethnic population growth Hispanic Latin Latino market growing the fastest Asian market next fastest growing Chapter 14 Media Planning 7 2006 Thomson South Western Media Planning Media Plan Specifies media in which advertising message will be placed to reach a desired audience Media Class Broad category of media such as TV radio or newspapers Media Vehicle Specific option within a class i e Vogue Media Mix Blend of different media to reach target audience Chapter 14 Media Planning 8 2006 Thomson South Western The Media Plan Media Strategies a Reach the target audience b Geographic scope of placement c Message weight More Media Strategies d Reach and frequency e Continuity f Audience duplication g Length size of advertisements h Media context 2006 Thomson South Western Media Choice Media efficiency CPM CPRP Target Audience Chapter 14 Media Planning 9 3 Media Strategies 1 Reach the target audience Demographic geographic lifestyle attitude define choices Single source tracking services help identify effect of placements Geographic scope of media placement Distribution area determines media choice Geo targeting of regions of high purchase density Message weight Gross impressions message impressions Between vehicle within vehicle duplication Chapter 14 Media Planning 10 2006 Thomson South Western Media Strategies 2 Reach and Frequency Gross rating points GRP Effective frequency Effective reach Length or Size of Ads Creative requirements Media budget Competitive environment 2006 Thomson South Western Continuity Continuous scheduling Flighting Pulsing Media Context Editorial climate tone of media vehicle Chapter 14 Media Planning 11 Media Choices Media Efficiency CPM CPM TM CPRP 2006 Thomson South Western cost of media buy total audience cost of media buy targeted audience X 1000 X 1000 for a program placement program rating Chapter 14 Media Planning 12 4 The Real Deal 1 Data Quality Cultural hang up on numbers Media exposure is not a good measure of ad impact Firms are seeking alternatives to Nielsen 2 Ads for Advertisers Media firms use ads to attract advertisers 3 The Media Lunch Media is more than a numbers industry Personal relationships are still pursued Chapter 14 Media Planning 13 2006 Thomson South Western Contemporary Essentials 1 1 Internet Media Growth in use but not in rates Difficulty in assessing size of audience Hard to determine what kinds of ads really work on the Internet 2 Competitive Media Assessment Assessment of how competitors are spending Share of Voice is measure of one advertiser s expenditures vs others Important when competitors are all focused on one narrow segment 2006 Thomson South Western Chapter 14 Media Planning 14 Contemporary Essentials 2 3 Computer Media Planning Models Major firms offer data bases Data is not standardized across media Allows for wide range of possible buys 4 Making the buy Securing electronic and print media space Agency of Record purchases space Some firms use a Media Buying Service 5 Interactive Media Reach beyond television or kiosks Includes telephones cds online Will consumers spend less time with traditional media 2006 Thomson South Western Chapter 14 Media Planning 15 5 Media IBP Implications 1 Reliance on mass media will be reduced for more highly targeted vehicles 2 Media impact data will used to compare placement alternatives 3 Planners become more knowledgeable about alternative media choices 4 Central control will help to seamlessly integrate multiple media 2006 Thomson South Western Chapter 14 Media Planning 16 6