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Media TerminologyPublications such as newspapers, magazines, direct mail, outdoor, etc.Publications such as newspapers, magazines, direct mail, outdoor, etc.
The specific carrier within a medium categoryThe specific carrier within a medium category
Number of different audience members exposed at least once in a given time periodNumber of different audience members exposed at least once in a given time period
The potential audience that might receive the message through the vehicleThe 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 periodThe number of times the receiver is exposed to the media vehicle in a specific time period
The potential audience that might receive the message through the vehicleThe potential audience that might receive the message through the vehicle
Number of different audience members exposed at least once in a given time periodNumber of different audience members exposed at least once in a given time period
The specific carrier within a medium categoryThe specific carrier within a medium category
Publications such as newspapers, magazines, direct mail, outdoor, etc.Publications such as newspapers, magazines, direct mail, outdoor, etc.
PrintMediaPrintMedia
Media VehicleMedia
Vehicle
ReachReach
CoverageCoverage
FrequencyFrequency
Developing the Media Plan
Selecting Media Within ClassSelecting Media Within Class
Selecting Broad Media ClassesSelecting Broad Media Classes
Determining Media StrategyDetermining Media Strategy
Media Use Decision— Print
Media Use Decision— Print
Media Use Decision— Broadcast
Media Use Decision— Broadcast
Media Use Decision— Other Media
Media Use Decision— Other Media
Selecting Media Within ClassSelecting Media Within Class
Determining Media StrategyDetermining Media Strategy
Selecting Broad Media ClassesSelecting Broad Media Classes
Setting Media ObjectivesSetting Media ObjectivesSetting Media ObjectivesSetting Media Objectives
Marketing Strategy PlanMarketing
Strategy PlanCreative
Strategy PlanCreative
Strategy PlanMarketing
Strategy PlanMarketing
Strategy PlanSituation Analysis
Situation Analysis
Creative Strategy Plan
Creative Strategy Plan
Situation Analysis
Situation Analysis
Media Planning Challenges
Measurement Problems
Measurement Problems
Lack of Information
Lack of Information
InconsistentTerms
InconsistentTerms
Lack of Information
Lack of Information
Measurement Problems
Measurement Problems
Challengesin MediaPlanning
Challengesin MediaPlanning
Media Strategy Decisions
Reach vs. FrequencyReach vs. Frequency
SchedulingScheduling
Geographic CoverageGeographic Coverage
Target Market CoverageTarget Market Coverage
Media MixMedia Mix
SchedulingScheduling
Geographic CoverageGeographic Coverage
Target Market CoverageTarget Market Coverage
Media MixMedia Mix
1. Media Mix
Generally a number of alternativesDecisions are based on:
ObjectivesProduct/service characteristicsBudgetPreferencesCreative strategy
2. Target Audience Coverage
TargetMarket
Proportion
FullMarket
Coverage
PartialMarket
Coverage
CoverageExceeding
Market
Population excluding target marketTarget marketMedia coverageMedia overexposure
3. Geographic Coverage
Firms should maximize the effectiveness of advertising and promotion dollars by spending in markets where they will achieve the desired objectives.
Useful calculations examined by marketers to make this decision:Brand Development Index (BDI)Category Development Index (CDI)
Brand and Category Analysis
Percentage of brand to total Canadian sales in market
Percentage of total Canadian population in market
BDI = X 100
Brand Development Index
Brand Development Index
Our brand is Tim Horton’s Coffee. We would like to compare our brand development in Ontario vs. Alberta. Let’s say that:
50% of our sales come from Ontario 30% of our sales come from Alberta 58% of the Canadian population lives in Ontario 29% of the Canadian population lives in Alberta
Calculate the BDI for each province. What does this mean?
Brand and Category Analysis
Percentage of total product category sales in market
Percentage of total Canadian population in market
CDI = X 100
Category Development Index
Category Development Index
Tim Horton’s example:
40% of sales of all takeout coffee come from Ontario 30% of sales of all takeout coffee come from Alberta 58% of the Canadian population lives in Ontario 29% of the Canadian population lives in Alberta
Calculate the CDI for Ontario and Alberta
Category Development Index
Ontario = 40/58 = .689x100 = 68.9
Alberta = 30/29 = 1.0345 x 100 = 103.45
Brand and Category Analysis
High market shareGood market potential
High market shareGood market potential
High market shareGood market potential
High market shareGood market potential
Low
CD
IH
igh
CD
I
High BDI
Low market share Good market potential
Low market share Good market potentialLow market share Good market potential
Low market share Good market potential
Low BDI
High market shareMonitor for sales decline
High market shareMonitor for sales decline
High market shareMonitor for sales decline
High market shareMonitor for sales decline
Low market sharePoor market potential
Low market sharePoor market potential
Brand and Category Analysis
The market usually represents good sales potential for both the product and the brand.
The market usually represents good sales potential for both the product and the brand.
The market usually represents good sales potential for both the product and the brand.
The market usually represents good sales potential for both the product and the brand.
Low
CD
IH
igh
CD
I
High BDI
The product category shows high potential but the brand isn’t doing well; the reason should be determined.
The product category shows high potential but the brand isn’t doing well; the reason should be determined.
The product category shows high potential but the brand isn’t doing well; the reason should be determined.
The product category shows high potential but the brand isn’t doing well; the reason should be determined.
Low BDI
The category isn’t selling well but the brand is; may be a good market in which to advertise but should be monitored for sales decline.
The category isn’t selling well but the brand is; may be a good market in which to advertise but should be monitored for sales decline.
The category isn’t selling well but the brand is; may be a good market in which to advertise but should be monitored for sales decline.
The category isn’t selling well but the brand is; may be a good market in which to advertise but should be monitored for sales decline.
Both the product category and the brand are doing poorly; not likely to be a good place to advertise.
Both the product category and the brand are doing poorly; not likely to be a good place to advertise.
4. Scheduling
Three Scheduling ModelsContinuity
Pulsing
Flighting
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
5. Reach vs. Frequency
Reach Exposing potential buyers to the message. There is no known way of determining how
much reach is required to achieve levels of awareness, attitude change, or buying intention. We cannot be sure an ad placed in a vehicle will
actually reach the intended audience.
5. Reach vs. Frequency
Frequency The number of times one is exposed to a media
vehicle. Advertiser has no way of knowing if exposure to a
vehicle results in exposure to ad. Therefore, one exposure to the vehicle constitutes
reach. This does not help determine frequency required to
make an impact. Precise determination requires consideration of creativity of
ad, receiver involvement, noise, etc.
5. Reach vs. Frequency
Gross Rating Points (GRPs)Based on the total audience the media
schedule may reach.Use a duplicated reach estimate.
GRP = Reach x FrequencyGRP = Reach x Frequency
Gross Rating Points
GRPs refer to the weight of a media schedule against a pre-determined target audience.
GRP = Reach (%) x Frequency
= 50 x 3.5
= 175
Marketing Factors Determining Frequency
Target GroupTarget Group
Brand HistoryBrand History
Share of Voice
Share of Voice
Purchase Cycles
Purchase Cycles
Brand LoyaltyBrand
LoyaltyBrand ShareBrand Share
Usage Cycle
Usage Cycle
Purchase Cycles
Purchase Cycles
Share of Voice
Share of Voice
Brand HistoryBrand History
Usage Cycle
Usage Cycle
Brand ShareBrand Share
Brand LoyaltyBrand
Loyalty
Marketing Factors
Marketing Factors
Message Factors Determining Frequency
Message ComplexityMessage Complexity
Message UniquenessMessage Uniqueness
New Vs. Continuing CampaignsNew Vs. Continuing Campaigns
Image Versus Product SellImage Versus Product Sell
Message VariationMessage Variation
WearoutWearout
Advertising UnitsAdvertising Units
WearoutWearout
Message VariationMessage Variation
Image Versus Product SellImage Versus Product Sell
New Vs. Continuing CampaignsNew Vs. Continuing Campaigns
Message UniquenessMessage Uniqueness
Message ComplexityMessage ComplexityMessageor Creative
Factors
Messageor Creative
Factors
Media Factors Determining Frequency
ClutterClutter
Number of Media UsedNumber of Media Used
Repeat ExposuresRepeat
Exposures
Editorial Environment
Editorial Environment
SchedulingScheduling
AttentivenessAttentivenessAttentivenessAttentiveness
Number of Media UsedNumber of Media Used
Editorial Environment
Editorial Environment
Repeat Exposures
Repeat Exposures
ClutterClutter
Media FactorsMedia
Factors
Determining RelativeCost of Media
Cost of ad space(absolute cost)Circulation
CPM = X 1,000
Cost per thousand (CPM)
Homemakers Magazine
Chatelaine Canadian Living
One time, 1 page, 4 colour
$20,640 $35,695 $27,222
Circulation 1,290,000 802,714 561,102
Homemakers Magazine
Chatelaine Canadian Living
One time, 1 page, 4 colour
$20,640 $35,695 $27,222
Circulation 1,290,000 802,714 561,102CPM $16 $44.47 $48.57
Newspaper Cost Calculation
Newspaper rates are based on a per line rate
There are two ways to calculate lines – MAL and Agate
Some newspapers use one way, some use another
Usually, the line rate goes down as you advertise more = Volume discounts
Calculating Newspaper Costs
The Globe and Mail
Assuming you spend only $25,000 per year
Find the cost of:
320 line ad in the National Paper on Saturday for four Saturdays
Calculating Newspaper Costs
The Globe and MailAssuming you spend only $25,000 per
yearFind the cost of: 320 line ad in the National Paper on
Saturday for four SaturdaysAnswer:320 X $23.39 x4 = $29,939.20
Calculating Newspaper Costs
The Toronto Star
A 3000 line ad in the Saturday edition for 2 Saturdays
Answer:
3000 x $20.78 x 2 = $124,680
Factors Influencing Newspaper Rates
PositionChargePositionCharge
ColourColour
InsertsInserts
A request for a specific page or section increases the cost.
Colour increases cost but it also increases awareness.
Rates are quoted on a CPM basis and are influenced by number of pages.
Buying Magazine Space
The cost of the ad is determined by multiplying the page rate (by size) by the frequency.
If a 1P, 4C ad costs $20,000 and it runs in 6 consecutive issues of a monthly magazine, the total cost would be:
$20,000 x 6 = $120,000.
Magazine Cost Calculation
PlanCanadian Geographic
1 Page 4 Colour
4 insertions
PlanCanadian Geographic
1 Page 4 Colour
4 insertions
The base rate would be the 3-5 times rate on the rate card.
Cost Calculation:
$10,755 x 4 = $43,020
Magazine Cost Calculation
Find the cost of the following ad in Canadian Living
1 page, 4 times in the National edition
What is the cost of the ad?
What is the CPM?
Magazine Cost Calculation
Find the cost of the following ad in Canadian Living
1 page, 4 times in the National edition
Answer:
$28,575 x 4 = $114,300
What is the CPM
($114,300/551,884) X 1000 = $207.11
Magazine Discounts
FrequencyFrequency
ContinuityContinuity
CorporateCorporate
The number of times the ad is run.
The length of time during one year period.
Total pages bought by all company brands during one year period.
Colour and Position Charges
Colour advertising is the norm in magazines so rates are usually quoted as 4-colour rates. Higher rates are charged for cover positions and specific page requests.
CoversCoversInside Front (IFC), inside back (IBC), and outside back (OBC). About 20% more.
Position ChargePosition Charge
A specific page request increases the cost per page by 15 – 20%.
Comparing Magazines for Efficiency
Specifications Canadian Living Flare
1P, 4C
Circulation
CPM
Both magazines have different rates and circulations but the CPM is almost identical.
Comparing Magazines for Efficiency
Specifications Canadian Living Flare
1P, 4C $29,160 $15,600
Circulation 551,884 172,362
CPM $52.84 $90.51
Both magazines have different rates and circulations but the CPM is almost identical.
Media Budget: Balancing Objectives and Budget
Dollars Goals
What we’re willing and
able to spend
What we need to achieve our
objectives
Managerial Approaches in Budget Setting
Factors Influencing the Budget Decision
1. Market Size
2. Market Potential
3. Market Share Goals
4. Economies of Scale in Advertising
5. IMC Tools
Ad Spending and Share of Voice
Decrease–find a Defensible NicheDecrease–find a Defensible Niche Increase to DefendIncrease to Defend
Attack With Large SOV Premium
Attack With Large SOV Premium
Maintain Modest Spending Premium
Maintain Modest Spending PremiumC
om
peti
tor’
sS
hare
of
Voic
e
Hig
hLo
w
HighLowYour Share of Market
Top-Down Budgeting
The Promotion Budget Is Set to Stay Within the Spending Limit
The Promotion Budget Is Set to Stay Within the Spending Limit
Top Management Sets the Spending LimitTop Management Sets the Spending LimitTop Management Sets the Spending LimitTop Management Sets the Spending Limit
Top-Down Budgeting Methods
Affordable Method
Affordable Method
Affordable Method
Affordable Method
Competitive Parity
Competitive Parity
Percentageof Sales
Percentageof Sales
Return onInvestmentReturn on
Investment
Arbitrary AllocationArbitrary Allocation
Percentageof Sales
Percentageof Sales
Competitive Parity
Competitive Parity
Arbitrary AllocationArbitrary Allocation
TopManagement
TopManagement
Bottom-Up BudgetingTotal Budget Is Approved by
Top ManagementTotal Budget Is Approved by
Top Management
Cost of Activities are BudgetedCost of Activities are Budgeted
Activities to Achieve ObjectivesAre Planned
Activities to Achieve ObjectivesAre Planned
Promotional Objectives Are SetPromotional Objectives Are Set
Cost of Activities are BudgetedCost of Activities are Budgeted
Activities to Achieve ObjectivesAre Planned
Activities to Achieve ObjectivesAre Planned
Promotional Objectives Are SetPromotional Objectives Are Set
Objective and Task Method
Estimate Costs Associated with Tasks(determine costs of advertising, promotions, etc…)
Estimate Costs Associated with Tasks(determine costs of advertising, promotions, etc…)
Determine Specific Tasks(advertise on market area television and radio and local newspapers)
Determine Specific Tasks(advertise on market area television and radio and local newspapers)
Establish Objectives(create awareness of new product among 20 percent of target market)
Establish Objectives(create awareness of new product among 20 percent of target market)
Determine Specific Tasks(advertise on market area television and radio and local newspapers)
Determine Specific Tasks(advertise on market area television and radio and local newspapers)
Establish Objectives(create awareness of new product among 20 percent of target market)
Establish Objectives(create awareness of new product among 20 percent of target market)