12 Media Planning Essentials ©2012 Cengage Learning. All Rights Reserved. The Transition to Part 4: Placing the Message in Conventional and “New” Media • Starting to study the “placement” phase of advertising and IBP • Focus is on using media and IBP tools that “reach” the target audience • Even a great message will be ineffective if it does not reach the proper audience Introduction: The Very Wide World of Brand Media Vehicles • The 2010 Super Bowl attracted 2.5X as many viewers as the 1967 Super Bowl, but cost 10X as much. • Agencies have become more diverse and offer digital and IBP services • While “new’ media get a lot of attention, “old” media still attract a lot dollars. • New media are merging with old. Very Important Changes in Media  1. Agency Compensation o o o 15 percent commission is essentially gone Most clients now pay on a fee-for-service basis Ad creation and placement not at same agency 2. More Media o o o o Traditional media lines are blurred Firms push “news” stories into media Movies/videos can be promotional vehicles Social “media” offer brand information, but how to “price” it is a question 3. Going Public o o Agencies are “leaner” now that they are public firms Agencies are looking for ways to turn short-term profits Very Important Changes in Media  4. Globalization o Today media exist in a transnational space— CNN to Al Jazeera o Search engines do not recognize national boundaries (except Google in China!) o The BRIC countries offer huge opportunity o Lack of standardized measurement makes pricing complex o Globalization is a way of thinking another challenge in “new media” Very Important Changes in Media  5. Free Content o o o o Internet information has consumers used to free content. Why buy a magazine full of ads for $4.50? Nontraditional media, which consumers enjoy, are attracting more dollars. Consumers are creating “brand material” even ads on the Internet. 6. Consumer in Charge o o o o E-commerce has revolutionized the way consumers consume. Marketers not solely in charge of brand. Consumer access to more info = more power in the channel. Consumers have more power in the transaction due to deal-proneness and price/cost transparency. Very Important Changes in Media  7. Hyper-Clutter and Ad Avoidance o Worse than ever on TV and in magazines o Consumers choosing no-ad channels/satellite radio and DVR ad skipping o Satellite radio is growing popularity—despite cost o Ad blocker filters are improving on Web o People are more willing to pay to avoid ads 8. Multicultural Media o Ethnic media on rise with ethnic population growth o Hispanic/Latin/Latino market growing the fastest o Asian market next fastest growing Latina.com 2002 Ethnic media are on the rise The Fundamentals of Media Planning • The “Big Pie”: wide range of promotional choices including media placement • Above-the-line: traditional measured media – TV, radio, magazines, newspaper, outdoor, etc. • Below-the-line: unmeasured media/IBP tools seen as more efficient – Internet search, shelf placement, coupons, events, instore promotions, etc. • Measured media on slow, steady decline • Key distinction – IBP is not a “media” placement but is coordinated with media placements Media Planning • Media Plan o Specifies media in which advertising message will be placed to reach a desired audience • Media Class o Broad category of media, such as TV, radio, or newspapers • Media Vehicle o Specific option within a class, i.e., Vogue magazine Media Mix o Blend of different media to reach target audience The Overall Media Plan Media Strategies • • • Reach the target audience Geographic scope of placement Geo-targeting More Media Strategies • • • • • • Reach and frequency Message weight Gross impressions Audience duplication Continuity Length/size of advertisement Media context Media Choice • Media efficiency (CPM, CPRP) Target Audience Media Planning: Strategies  • Reach the target audience o o Demographic, geographic, lifestyle/attitude define choices Single-source tracking services help identify effect of placements • Geographic scope of media placement o o o o o o o Geo-targeting of regions of high-purchase density Reach and frequency decisions Effective reach and effective frequency determination Message weight Gross impression calculation for impact Between vehicle duplication Within vehicle duplication Media Planning: Strategies  • Continuity: Continuous scheduling o Flighting o Pulsing o “Forgetting” function o • Media Context: o Editorial climate/ tone of media vehicle • Length or Size of Ads: Creative requirements o “Square root” law o Media budget o Competitive environment — may want to match size of budget and length of campaign of key competitors o Media Planning: Competitive Media Assessment • Assessment of how competitors are spending in media • “Share of Voice” is measure of one advertiser’s expenditures vs. others • Important when competitors are all focused on one narrow segment (i.e. heavy user product categories) Media Planning: Media Efficiency CPM = (cost per thousand) CPM-TM = (cost per thousand-target market) CPRP = (cost per rating point) Cost of media buy Total audience Cost of media buy Targeted audience X 1000 X 1000 $$$ For a program placement Program Rating Media Planning: Internet • Internet Media – Internet media are “Pull” media – Traditional media are “Push” media – Paid search is most potent tool • Interactive Media – Overused and ill-defined term – Includes kiosks to blogs to podcasts to Internet shopping sites – RSS is basis for interactivity • Multiway Communication – Consumers seek ads/brand contact Media Planning: Social Media • Social Networking – New paradigm • Marketer (brand) to consumer then consumer to consumer – Marketers can use social media a fraction of cost of traditional media – And, 2/3 of consumers visit social network or blog site • Social media are used to discuss brands – Social media used to create “buzz” or “viral” effect – Brand conversations are tracked with net promoter scores – Wikis mine and leverage brand communities Media Choice and Integrated Brand Promotions • Complicating factor: Firms using more IBP tools • Madison and Vine Media o Merging of entertainment and advertising o Also referred to as branded entertainment o Three primary approaches o Product placement o Story line integration o Original content © Chad Bushanan/Getty news Entertainment What approach to branded entertainment does Geico use with the “cavemen”? Media Choice Issues • Data Quality o o o o GIGO problem Cultural hang-up on numbers “Media” exposure is not a good measure of ad impact Firms are seeking alternatives to Nielsen data • Ads to Advertisers o Media firms use ads to attract advertisers • Media is more than a numbers industry o Personal relationships are still pursued Courtesy, Donner Advertising. Photos: Copyright Rausser/Getty Images; Photodisc/Getty Images Media firms sell themselves to advertisers. Contemporary Essentials in Media • Computer Media-Planning Models o Major firms offer data bases o Nielson, Arbitron, MRI, SMRB o Data is not standardized across media o But, media software firms offer products to help analyze markets and audiences to develop multi-media plans o Allows for wide range of possible buys • Making the buy o Securing electronic and print media space o Agency of Record purchases space o Each spring the “upfront” media buys occur when fall broadcast programming is announced o Some firms use a Media Buying Service In Defense of Traditional Advertising • There are just some things you can’t accomplish without traditional mass media ads. • The Super Bowl or Olympics deliver a truly mass audience. • Brand building still needs traditional ads . . . at least for a while longer. • Throwing around “new media” planning buzz words accomplishes much.