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Transcript of 1 Chapter 5 Advertising: Media Planning. 2 Media Planning “A plan of action to communicate a...
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Chapter 5Advertising: Media Planning
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Media Planning
“A plan of action to communicate a message to a target market a the right time, and right frequency.”
The goal of a media plan is to be efficient: to gain maximum exposure at minimum cost.
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Media Planning
Advertising PlanAdvertising PlanIMCPlanIMCPlan
Media PlanObjectivesStrategiesExecution
Media PlanObjectivesStrategiesExecution
CreativePlan
CreativePlan
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Media Brief
Media planners require essential information from the client.
1. Market Profile
2. Competitor Media Strategy
3. Target Market Profile
4. Media Objectives
5. Budget
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Media Plan
“A document outlining how a client’s budget will be spent.”
Media ObjectivesMedia Objectives
Media StrategiesMedia Strategies
Media ExecutionMedia Execution
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Media Objectives
Who is the target market?
What is the message?
Where are the priority markets?
When is the best time to advertise?
How many, often, long?
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Media Strategy
Numerous factors are evaluated and they are usually ranked based on priority.
• Target market and media matching strategy
• Creative strategy influences media choices
• Coverage decisions are based on the budget
• Timing decisions are crucial for scheduling
• Reach, frequency, and continuity priorities
• Budget
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Target Market Matching Strategies
Knowledge of a target’s media consumption habits helps define the media strategy.
ShotgunShotgun
Profile MatchProfile Match
RifleRifle
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Market Coverage
The budget available often dictates the extent of market coverage.
NationalNational
WestWest CentralCentral EastEast
Key MarketsKey MarketsCategory and brand development indexes are used to set market priorities
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Media Scheduling
Even Skip
Pulse Seasonal
Blitz Build-Up
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Reach / Frequency / Continuity
ReachReach
FrequencyFrequency
ContinuityContinuity
Total audience exposed to a message one or more times in a period, usually a week.
The average number of times a message has been exposed to an audience over a period of time.
The length of time required to generate impact on a target.
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Media Execution
Selecting the right media is usually a three stage decision process.
1. Type of Media MagazineTelevision
2. Class of Media SportsNetwork
3. Specific Medium Sports Illustrated CTVWhen selecting a specific medium, CPM is a determining factor.
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Comparing Media Alternatives
CPMCPM The cost of the ad divided by the circulation (in thousands).
Magazine Cost Circulation CPM
ROB $18,800 363,700
National Post Business
$15,010 311,300
Canadian Business $14,000 80,500
ROB and National Post Business have a circulation advantage since they are distributed by newspapers that own the magazines.
Formula: (Cost of the ad/circulation) x 1000
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Comparing Media Alternatives
CPMCPM The cost of the ad divided by the circulation (in thousands).
Magazine Cost Circ CPM
ROB $18,800 363,700 $51.69
National Post Business
$15,010 311,300 $48.22
Canadian Business $14,000 80,500 $173.91
ROB and National Post Business have a circulation advantage since they are distributed by newspapers that own the magazines.
Formula: (Cost of the ad/circulation) x 1000
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Scheduling and Budget Summary
1. A blocking chart summarizes in a few pages all of the media execution details: media usage, market coverage, weight levels, reach and frequency, and timing of the campaign.
2. The budget summary classifies spending by medium, region, and time of year.
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Assessing Media Alternatives
Medium Pro Con
Television
Radio
Magazines
Newspapers
The strengths and weaknesses of all media options are evaluated.
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Assessing Media Alternatives
Medium Pro Con
Television Impact High Cost
Reach Clutter
Radio Targeting Fragmentation
Frequency Message (Sound only)
The strengths and weaknesses of all media options are evaluated.
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Assessing Media Alternatives
Medium Pro Con
Newspaper Local Reach Short Life
Key Market Coverage Clutter
Magazine Targeting Clutter
Message Quality Low Frequency
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Calculating the Cost of Media
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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
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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
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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
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Calculating Newspaper Costs
The Toronto Star
A 3000 line ad in the Saturday edition for 2 Saturdays
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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
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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.
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Comparing Newspapers for Efficiency
Specs. Star Sun Globe
Size 1000 lines 1000 lines 1000 lines
Line Rate $15.90 $6.89 $27.43
Total Cost $15,900 $6,890 $27,430
Circulation 454,831 230,644 354,574
CPM $34.96 $29.88 $77.35
Formula: (Cost of the ad/circulation) x 1000
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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.
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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
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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?
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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
($114,300/555,884) X 1000 = $205.62
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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.
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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%.
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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.
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Comparing Magazines for Efficiency
Specifications Canadian Living Flare
1P, 4C $29,160 $15,600
Circulation 555,884 172,362
CPM $52.84 $90.51
Both magazines have different rates and circulations but the CPM is almost identical.
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Television Advertising Rates
TV rates are not published; they are subject to negotiations between advertising agencies and the networks and stations. Rates are influenced by:
• Supply and Demand
• Type of Program
• Time of Day
• Length of Commercial
• Gross Rating Points
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GRPs and Television
GRPs consider the size of the audience (reach) and frequency.
Audience Rating # of Spots GRPs
18 – 49 30 2 60
18 – 40 25 2 50
18 – 40 20 2 40
Total 150
If 6 spots were scheduled in one week the weight level would be 150 GRPs.
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Television Discounts
FrequencyFrequency
VolumeVolume
ContinuityContinuity
For a minimum number of spots in a specified period.
For a $ volume commitment in a one-year period.
For a minimum number of spots over an extended period (one-year).
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Buying Radio Time
Advertisers can request specific times or opt for a reach plan.
ReachPlanReachPlan
Commercials are rotated through the various dayparts and days of the week based on predetermined frequency.
Vertical rotation refers to time of day; horizontal rotation refers to day of week.
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Radio Grid Rates
Radio stations establish grid rates which are different rates based on the frequency and volume of advertising an advertiser purchases.
As an advertiser purchases more spots or extends the schedule over a longer period, they will move to another grid—a grid with lower rates. The more you buy, the less you pay per spot!
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Radio Discounts
FrequencyFrequency
VolumeVolume
ContinuityContinuity
For a minimum number of spots in one week.
For buying a large number of spots in a specified period.
Scheduling ads over an extended period (26, 39, 52 weeks).
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Buying Radio Time
Reach Plan16 spots per week
16 weekDrive to work time
Reach Plan16 spots per week
16 weekDrive to work time
A reach plan saves an advertiser money!
16 spots / week x 16 weeks x $250 = $64,000.
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Buying Radio Time
Specific RequestPlan
680 News – 30 sec spots8 Breakfast
8 DriveEach Week for 16 weeks
Specific RequestPlan
680 News – 30 sec spots8 Breakfast
8 DriveEach Week for 16 weeks
The total number of spots in the buy are calculated first.
Breakfast: 8 x 16 = 128
Drive: 8 x 16 = 128
Total spots: 256
Breakfast: $150 x 128 = $19,200
Drive: $85 x 128 = $10,880
Total Cost = $69,760