1Media Strategy andPlanning forAdvertising and IBPChapter 14© 2006 Thomson/South-WesternChapter 14: Media Planning 2The Transition to Part 4:Placement• Starting to study the “placement”phase of advertising and IBP• Focus is on using media andpromotions that “reach” the targetaudience.• Even a great message will beineffective if it does not reach theproper audience© 2006 Thomson/South-WesternChapter 14: Media Planning 3Introductory Scenario:Media Transitions• The 2003 SuperBowl attracted twice asmany viewers as the 1967 SuperBowlbut cost 10x as much• Advertisers are looking to more anddifferent media to effectively reach targetaudiences.© 2006 Thomson/South-Western2Chapter 14: Media Planning 4The Very Wide World of PromotionalMedia—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 agency2. More Media• Traditional media lines are blurred• Firms push “news” stories into media• Movies can be promotional vehicles3. 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-WesternChapter 14: Media Planning 5The Very Wide World of PromotionalMedia—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 line5. Greater Accountability: ROI• Trust use to be basis for relationship• Other forms of media produce more measurable resultsthan mass media6 Globalization• Today media exist in a transnational space• Lack of standardized measurement makes• pricing complex.© 2006 Thomson/South-WesternChapter 14: Media Planning 6The Very Wide World of PromotionalMedia—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 dollars8. E-Commerce/E-Media• Revolutionized the way consumers consume• Consumers have more power in the transaction due to deal-proneness and price/cost transparency© 2006 Thomson/South-Western3Chapter 14: Media Planning 7The Very Wide World of PromotionalMedia—Important Changes [4]9. Hyper-Clutter• Worse than ever on TV and in magazines• Consumers choosing no-ad channels/satellite radio10. Ethnic Media• Ethnic media on rise with ethnic population growth• Hispanic/Latin/Latino market growing the fastest• Asian market next fastest growing© 2006 Thomson/South-WesternChapter 14: Media Planning 8Media Planning• Media Plan– Specifies media in which advertising messagewill be placed to reach a desired audience• Media Class– Broad category of media, such as TV, radio, ornewspapers• Media Vehicle– Specific option within a class, i.e., Vo gue• Media Mix– Blend of different media to reach target audience© 2006 Thomson/South-WesternChapter 14: Media Planning 9The Media PlanTarget AudienceTarget AudienceMedia StrategiesMedia Strategiesa. Reach the target audiencea. Reach the target audienceb. Geographic scope of placementb. Geographic scope of placementc. Message weightc. Message weightMedia ChoiceMedia Choice. Media efficiency (CPM, CPRP). Media efficiency (CPM, CPRP)More Media StrategiesMore Media Strategiesd. Reach and frequencyd. Reach and frequencye. Continuitye. Continuityf. Audience duplicationf. Audience duplicationg. Length / size of advertisementsg. Length / size of advertisements h. Media context h. Media context© 2006 Thomson/South-Western4Chapter 14: Media Planning 10Media Strategies [1]Reach the target audience• Demographic, geographic, lifestyle / attitude definechoices• Single-source tracking services help identify effectof placementsGeographic scope of media placement• Distribution area determines media choice• Geo-targeting of regions of high-purchasedensityMessage weight• Gross impressions, message impressions• Between-vehicle / within-vehicle duplication© 2006 Thomson/South-WesternChapter 14: Media Planning 11Media Strategies [2]Reach and Frequency:• Gross rating points (GRP)• Effective frequency• Effective reachContinuity:• Continuous scheduling• Flighting• PulsingMedia Context•Editorial climate/tone of media vehicleLength or Size of Ads:• Creative requirements• Media budget• Competitive environment© 2006 Thomson/South-WesternChapter 14: Media Planning 12Media Choices: MediaEfficiencyCPM =cost of media buytotal audienceX1000CPM-TM=cost of media buytargeted audienceX1000CPRP =$$$ for a program placementprogram rating© 2006 Thomson/South-Western5Chapter 14: Media Planning 13The Real Deal1. Data Quality• Cultural hang-up on numbers• Media exposure is not a good measure of ad impact• Firms are seeking alternatives to Nielsen2. Ads for Advertisers• Media firms use ads to attract advertisers3. The Media Lunch• Media is more than a numbers industry• Personal relationships are still pursued© 2006 Thomson/South-WesternChapter 14: Media Planning 14ContemporaryEssentials [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 Internet2. Competitive Media Assessment• Assessment of how competitors are spending• Share of Voice is measure of one advertiser’sexpenditures vs. others• Important when competitors are all focused on onenarrow segment© 2006 Thomson/South-WesternChapter 14: Media Planning 15ContemporaryEssentials [2]3. Computer Media-Planning Models• Major firms offer data bases• Data is not standardized across media• Allows for wide range of possible buys4. Making the buy• Securing electronic and print media space• Agency of Record purchases space• Some firms use a Media Buying Service5. Interactive Media• Reach beyond television or kiosks• Includes telephones, cds, online• Will consumers spend less time with traditional media?© 2006 Thomson/South-Western6Chapter 14: Media Planning 16Media: IBP Implications1. Reliance on mass media will be reduced formore highly targeted vehicles2. Media impact data will used to compareplacement alternatives3. Planners become more knowledgeableabout alternative media choices4. Central control will help to seamlesslyintegrate multiple media© 2006