Media planning process

Strategic Media Planning The Process

A Few Definitions Reach number of different prospects exposed to specific media vehicles or schedule at least once over a given period usually expressed as a percentage of the target audience universe Frequency/OTS average number of times a person reached by a media schedule is exposed to the campaign

A Few Definitions Television Rating Point (TRP) A rating point is the equivalent of an audience of 1% of the coverage base Gross Rating Points (GRPs) A measure of the gross weight delivered by a vehicle. Sum of ratings for different programs.GRPs are duplicated ratings Frequency = GRPs or Gross OTS Reach

Reach v/s Frequency Frequency Reach New/complex message Newsy message Increase usage Increase awareness Maintenance Launch Low involvement Promotions During seasons During seasons

However….. Frequency is an average, not an absolute number Audience duplication implies exposure to the message at varying levels A few high numbers may bring up the avg, while a few low ones may pull it down The only way to guard against unbalanced frequency is to look at Effective Reach, Effective Frequency and Frequency Distribution

What is Effective Frequency/Reach? Both a necessary part of the same concept Effective Frequency is… the amount of frequency necessary for ads to be effective in communicating expressed in terms of a minimum pre-determined level (3+,4+etc) Effective Reach is.. the percent of audience reached at each effective frequency increment

What is Frequency Distribution ? An array of reach according to the level of frequency delivered to each group Frequency % reached % reached at least at each level once or more often 1 19 67 2 14 48 3 10 34 4 8 28 24 5 6 16 6 4 11

Media Planning : Art or Science MYTH : Media Planning is a Science, it is all about numbers FACT : Media Planning is an Art, it is all about Strategy It consists of a series of decisions made to answer the question for advertisers : What is the best means of delivering advertisements to prospective purchasers of my brand or service?

Strategic Decisions need to be taken e.g. Who should be our primary targets? Users/ Non users? Heavy, medium or light users? How many prospects do we need to reach and how many times ? What reaction should we take as a result of media used by competitors ? Use same media mix as competitors ? Allocate same weight as competitors ? Ignore competitors ?

Strategic Decisions need to be taken e.g. In which markets/regions should the ads appear? What pattern of geographic weighting should we use ? Should we weight by GRPs or money ? Where? What pattern of scheduling ? Continuity / flighting / pulsing ? When should we weight more heavily ? Does media have to support promotions ? How much of budget for promotional support ? What media mix ?

The Media Planning Process Reviewing the media brief Competitive analysis Who are we talking to ? Prioritization of markets Media objectives Effective reach and frequency Media strategy Choice of media Choice of vehicles Scheduling patterns

What should the brief contain ? Category / brand history Competitive universe, competitive activity, sales & share trends, , brand positioning Marketing objectives General - volume/ share /trial goals, changes vs last year Specific – launches/relaunches, extensions, etc . Role of advertising Awareness, image, learning, action or response

What should the brief contain ? Source of business Current brand, competitive brand, alternative products Target audience Demographics, psychographics, consumption patterns, purchasers, influencers, etc Creative strategies Creative objectives, strategies, tone, execution

What should the brief contain ? Purchase / Usage data Awareness tracking Regional priorities Seasonal priorities

What should the brief contain ? Other communication plans Consumer promotions, direct mail, trade activity, co-operative activity, public relations Distribution issues Problem outlets/markets, influence of advertising pressure Creative units available For each media Budgets

Competitive Intelligence Reported expenditures Competitors’ spending patterns, scheduling strategies/ tactics, geographic skews, etc Creative executions Positioning, complexity of message, target audience, communication objectives Market intelligence Likely happenings, degree of success of past competitive strategies, etc

Why are Media Objectives so important?

Why are Media Objectives so important? Because they establish the criteria for evaluating the media plan

Proper Media Objectives... are consistent with brand’s marketing objectives and strategies relate directly to the established advertising role are expressed in actionable and measurable terms are written plainly and simply

Impacts the brand’s business Reaches a substantial portion of the target audience Sustains the business with a continuous presence Helps gain at least 5% share Delivers effective reach levels 20% higher than last year Provides consistent support round the year, except for 50% extra weight during launch Develop a Media Plan that….

The Marketing Objectives - Media Objectives Link Continually Question How will this media plan help accomplish my marketing objectives?

Marketing variables may affect media Target audience Communication goals Increase market share Steal from competitors Increase current volume Marketing Factor Effect on Media Introduce new product Change in product distribution Geography Timing Communication goals Geography

Media Objectives need to be established to answer …... Who? Target Audience Where? Geography When? Scheduling How Often? Communication Goals

Identifying The Target Audience Demographic variables Sex, income, age, SEC, occupation, marital status, etc Socio-psychographic variables Lifestyles, attitudes, etc Product usage variables Heavy/medium/light or non-users What is our source of business? Category/competitors, sole/primary/secondary/non-users Need to address multiple segments End consumers, decision makers, influencers, buyers

What do we want the Target Prospect to do? Try for the first time Repurchase Switch brands Learn a new use

How would the Target be defined if we wanted to steal share from the Competitor? 18-24 14 13 93 15 107 25-34 23 24 104 27 117 35-33 19 21 111 21 111 45-54 13 14 108 12 92 55-64 13 13 100 12 92 65+ 18 15 83 13 72 Our Brand % Users Index Competition % Users Index % Pop.

Common Problem: Targeting Own User When Strategy Calls For Stealing Share From Competition 18-24 14 13 93 15 107 25-34 23 24 104 27 117 35-33 19 21 111 21 111 45-54 13 14 108 12 92 55-64 13 13 100 12 92 65+ 18 15 83 13 72 Our Brand % Users Index Competition % Users Index % Pop.

How Would You Define This Target Audience? LDA – 24 15 16 106 32 200 25-34 25 30 120 27 108 35-44 19 20 105 15 79 45+ 41 34 81 26 63 Imported Beer Drinkers % Comp Index % Vol. Consumed Last 7 Days Index % Pop. Males/Age LDA is Legal drinking age

Common Problem: Targeting Users Without Considering Their Volume Imported Beer Drinkers % Comp Index % Vol. Consumed Last 7 Days Index % Pop. Males/Age LDA is Legal drinking age LDA – 24 15 16 106 32 200 25-34 25 30 120 27 108 35-44 19 20 105 15 79 45+ 41 34 81 26 63

What Do We Need To Prioritise Markets? Distribution Brand volumes Brand/category development Competitive advertising Past history of market’s performance Sales force input Local market quirks Media cost National delivery in local markets

Market Prioritisation The Techniques Sales Analysis Target Audience Dispersion Market Opportunity Index (MOI)

Market Opportunity Index (MOI) Brand Development Index (BDI) Ratio of brand consumption intensity to population intensity i.e . % local market brand sales % local market population Category Development Index (CDI) Ratio of category consumption intensity to population intensity i.e. % local market category sales % local market population Market Opportunity Index (MOI) Ratio of CDI to BDI

BDIs And CDIs Are Often Used To Help Evaluate Market Potential BDI Low BDI High CDI Low CDI High 0 100 50 150 200 200 50 0 Maintenance Markets (little growth) Key Markets (protect from competitors) No Potential for Growth Opportunity Markets (high growth potential) 150

How Would You Classify Priority Markets For Different Marketing Objectives? Source Business From Heavy users Competitive manufacturer’s brand New users Marketing Objective Priority Markets

How Would You Classify Priority Markets For Different Marketing Objectives? Source Business From Heavy users Competitive manufacturer’s brand New users High BDI & High CDI Low BDI & High CDI Marketing Objective Priority Markets

How Would You Classify Priority Markets For Different Marketing Objectives? Source Business From Heavy users Competitive manufacturer’s brand New users High BDI & High CDI Low BDI & High CDI Marketing Objective Priority Markets Low BDI & High CDI

How Would You Classify Priority Markets For Different Marketing Objectives? Source Business From Heavy users Competitive manufacturer’s brand New users High BDI & High CDI Low BDI & High CDI Marketing Objective Priority Markets Low BDI & High CDI Low BDI & High CDI

HOW OFTEN? COMMUNICATION GOALS

Reach, Frequency, Geography And Continuity Are Interrelated With a fixed budget , need to must decide which is most important... Frequency Reach Continuity Geography

Models For Setting Communication Goals Effective frequency Model Erwin Ephron’s Model Every multinational agency has developed its own model

Effective Frequency Model Likelihood of full communication (or response) increases as number of exposures increase Expressed as a minimum frequency level (e.g. 3+ or 4+ etc.) However all exposures have some value since different individuals will require different levels of frequency to understand the message The concept

Effective Frequency Model No standard frequency level appropriate for all situations Little industry research that can be applied to specific situations Effective frequency requirements are determined by applying judgment and common sense in a disciplined manner using the following factors Marketing Advertising Competitive The foundations

Factors In Establishing Effective Frequency Levels Marketing Life Stage Share Loyalty Advertising Advertising goal Message communication Message distinctiveness Campaign style Competitive Media “noise” level Editorial environment Total Established High High Awareness Simple Unique Continuing Uncluttered Complementary New Low Low Attitude shift Complex Common New Heavy clutter Neutral Factor Low Effective Frequency High 1 3 6 4 5 2 X X X X X X X X X Total is 35, divided by 9, equals 3.9 Therefore, the effective frequency is 4 1 2 6 4 10 12

Some Other Agencies Frequency Model Based on international experience Ready reckoner developed to take into account brand/advtg history, outlook of the target audience, competitive activity, support in other media, impact of advtg Advertising activity stage- major/minor innovation, maintenance Major Innovation Minor Innovation New brand Established brand High investment Low investment Large profit potential Limited profit potential New product form Traditional product form New real benefit No new benefit

Setting Frequency Targets- Frequency Estimator

How Much Effective Reach? As with frequency, effective reach goals are also determined by applying judgment and common sense in a disciplined manner They are established by assessing either Effective reach affordable within budget Levels needed to achieve marketing goals This can be estimated either on An absolute basis Versus competition Versus last year

Relationship of Reach & Frequency Reach and Frequency occur at the same time, but at different rates and in an inverse relationship As number of insertions/spots rises, reach also rises, but at a decreasing rate Beyond a point, reach starts to plateau As reach rises quickly, frequency tends to be low and vice versa

EF : Problems Reckoner generalised across all categories A lot of subjectivity involved in arriving at the number Pins frequency and trades on reach No link to any output of effectiveness, e.g. ad recall, brand awareness, etc

Erwin Ephron’s Shelf Space Model Disputes relevance of effective frequency today Brand selection influenced by advtg-hence reach consumers when they are ready to buy As purchases occur throughout the year,advertise continuously : ‘rent-the-shelf’, so brand message will be waiting THEREFORE, PLAN FOR WEEKLY REACH The concept

Erwin Ephron’s Model An advertising exposure is most effective close to the purchase - consumers are in a receptive frame of mind with an ability to act immediately Close to the purchase, one exposure is most effective Therefore…. Improve the cost effectiveness of advertising by shifting weight to weeks i.e use the frequency money to buy more weeks of advtg and reach more prospects ready to buy in those weeks

Erwin Ephron’s Model Run 60-85 TRPs/week Achieve weekly reach of 35-40% Achieve monthly reach of 65-70% Achieve quarterly reach of 80-85% The guidelines An ideal media plan runs for 52 weeks at max imum affordable reach levels The GRP and reach figures differ across markets

Erwin Ephron’s Model Model operates in marketing vacuum No consideration given to market share, distribution, or marketing objectives and strategies Maintaining awareness is not primary communication goal of most advertising campaigns Therefore frequency does play an important role in advertising efforts Frequency is important for creating long-term benefits of brand equity Problems

What role does competition play ? Brands compete for purchases, not teaching messages The learning theory emphasises repetition, advocates flighting to enhance short term learning ie brand awareness However ‘out of sight, out of mind ’ Therefore, competitive brands advertising continuously will eat into share of brands using flighting

Recency vs Eff Frequency Recency Large and familiar brands Categories with low purchase cycles - impulse led categories Effective Frequency When the consumer is being “taught” Highly competitive market situations Need to drive a marketing objective/ consumer promotion Cannot be generalised across brands, markets or creatives

Too many variables Separate research needed for print and TV advertising high and low involvement products new and familiar brands different levels of freq and exposure repetition, and for different creatives different effectiveness parameters

Establishing Communication Goals Separate for every individual task e.g. introductory versus sustaining periods heavy-up activity in local markets vs. national activity promotional vs. non-promotional periods separate target audiences

Timing Objectives Determine best times to advertise Weeks of year Days of week Times of day Establish a scheduling pattern that Achieves communication goals Minimizes non-advertising periods Recognizes competitive activity

Scheduling Patterns Continuity Flighting Media weight scheduled for many weeks throughout year Intermittent, with gaps in advertising Pulsing Continuous advtg with heavier weight in some months - flighting and continuity combined

Scheduling Patterns Continuity Pulsing Flighting Covers entire purchase cycle Constant reminder Improves media discounts Similar to above Allows for timing deviations Used due to budget limitations Sharp seasonal fluctuations Competitive advantage Affordability Affordability Consumers are always buying the product Consumers forget during non-advtg periods Pattern Pros Cons

Media Strategies Evolve from media objectives and describe how they will be accomplished Reflect specific course of action to be taken A matter of evaluating different media types and mixes to determine best way to achieve objectives within given budget

Which Media Do We Use, Why Or Why Not ? Sight, sound, motion Immediate, intrusive, impactful Broad reach\high frequency Cost efficiency Ambience and mood Pros Cons High total cost Limited target audience selectivity Long lead time Short lived messages Television

Which Media Do We Use, Why Or Why Not ? Target selectivity Good colour reproduction Pass along readers Long shelf life Broad coverage Detailed copy/depth of copy Skewed toward educated, upscale targets Pros Cons Limited impact Lacks immediacy Long lead time No warmth of human voice Magazines

Which Media Do We Use, Why Or Why Not ? Immediate high reach National/local flexibility Short lead time Ethnic appeal Timely/newsworthy environment Shopping/retail environment Facility of second reading Detailing of message Pros Cons High cost of national coverage Short issue life Non targeted readership Inferior reproduction quality No warmth of human voice Newspapers

Which Media Do We Use, Why Or Why Not ? High frequency\good reminder Excellent for mobile audiences Local coverage Rural penetration Music\sound effects Pros Cons No visual\no colour Fleeting messages Involuntary listening Radio

Which Media Do We Use, Why Or Why Not ? Geographic flexibility Topicality High OTS Good for simple copy\ pack identification Pros Cons Expensive Limited to simple messages Insufficient data on efficiency of medium Outdoor

Specific Use Of Each Medium Including Rationale, e.g. Daytime High composition of women with children Most efficient daypart Extends plan continuity Prime High coverage Showcase environment Television

Specific Use Of Each Medium Including Rationale e.g. Broad reach titles Supplement and extend TV reach Efficient Women’s service titles Targets heavy users Provides frequency of exposure Food editorial provides synergistic environment Magazines

Media Vehicle Selection : Criteria Quantitative factors Target audience size Cost efficiency of delivered targets Based on cost per thousand readers\viewers or cost per rating point Circulation trends However, the cost efficiency criterion is most relevant for mass products; for high unit cost\specialised products, with narrow audiences, cost efficiency is more difficult to achieve The most appropriate vehicle for the message is not necessarily the most cost efficient

Media Vehicle Selection : Criteria Qualitative factors Compatibility of environment with the message Graphic/layout/production standards Advertising/edit ratio Extent of involvement levels Operational considerations Media/environmental constraints e.g. acceptability of ad Media opportunities e.g. packages, spl demographic editions Other factors Dealers’ opinions/stipulations on specific vehicles Sales promotions with obvious media implications

Scheduling Strategy Example Print and television scheduled to run simultaneously to leverage coverage and frequency of both media Run only during heavy use seasons Run a minimum of 80 TRPs/week. This allows us to achieve effective reach of 40 at the 3+ level

Media Strategies Should Include Four Elements Element One Broad selection of media to be used and rationale for their choice Element Two Specific use of media to be used (e.g. TV dayparts, magazine categories) and selection rationale Element Three Rationale for each vehicle’s use including quantitative and qualitative analysis Element Four Description of scheduling including when, where and at what levels

Monitoring & Feedback Evaluation of a Media Plan At the time of development During the campaign ( for course correction, if necessary) Post campaign

To Sum Up…. A Media Plan must evolve from and be fully integrated with Marketing, Advertising and Creative objectives

Media planning process

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