Media Planning and Buying

Do you have control of your clients PR & media budget? Are you able to buy media space for your clients? Are you aware of special features coming up relating to your clients product or service? Are you unsure of how media is planned and bought? Do you understand the terminology used in buying media?

 This talk sets out to:

Explain the media planning process Outline the tools available to plan with Define key terms used in the bought media environment Open the floor for questions throughout the discussion The subject matter is very broad, and therefore the more interaction I get from your side, the more focussed on your needs this session will become

Media planning defined

Media planning can be defined as:
Finding ways of reaching the right number of appropriate people; the right number of times; at the best time and place; with the right advertisement; at minimum cost; to achieve the brands/services objectives

The role of media planning is crucial to the effective expenditure of approximately R6 billion in advertising annually

TAKE SOME DEMOGRAPHICS, AND SOME GUT FEELING, SPRINKLE WITH JUDGEMENT AND STIR
Source: Media Week January 1993

Media Research
AMPS (All Media and Products Survey) sample 24 812 population 30 901 000
TAMS (Television Audience Measurement Survey) RAMS (Radio Audience Measurement Survey)

SABRE sample 2 000 business men & women (South African Business Research Evaluation) TGI sample 15 000 in two waves of 7 500 each (Target Group Index) ROOTS urban retail and readership - local community papers sample 20 000

Rate information
Media Manager
SARAD

Competitive Spend Analysis

Nielsen Adex

The More Commonly Used Media Terms

REACH
The number of or percentage of individuals, households, etc., potentially exposed to a medium or schedule at least once

The More Commonly Used Media Terms (cont.)

AVERAGE FREQUENCY
The AVERAGE OPPORTUNITIES to see, hear or read an ad amongst those reached

OR
The number of times ON AVERAGE a person within the target market, who has been reached is exposed to the advertisers message

The More Commonly Used Media Terms (cont.)

GRPs (GROSS RATING POINTS)
The summation of the exposure opportunities for all the elements in a media schedule

The product of reach and frequency

Used to express the tonnage of exposure generated by a campaign Universal measure (comparing apples with apples, but use with caution as media have different impact)

The More Commonly Used Media Terms (cont.)

ARS VERSUS GRPS
Amps ratings are the number of viewers, averaged across a time period and percentaged on the total number of individuals in the relevant group In essence, ARs fulfil the same role as GRPs The number of spots during a burst is not important, because different TV and radio spots deliver different AR and GRP levels at varying costs The main difference between ARs and GRPs is that the AR is a time weighted average. It is the average of the length of time that each person watched TV over a specified time

The More Commonly Used Media Terms (cont.)

EFFICIENCY VERSUS EFFECTIVENESS WHAT IS COST EFFICIENCY ?
Relates to efficiency of media delivery, and is usually expressed as CPP or CPM It is a method of comparing the value of different media for a specific campaign on a MONETARY basis

WHAT IS COST EFFECTIVENESS ?

It is a method of comparing the value of different media for a specific campaign on an ACHIEVEMENT OF OBJECTIVES BASIS

The More Commonly Used Media Terms (cont.)

CPP VS CPT
CPP is the cost of achieving one rating point or 1% reach in any given market. Extensively used in electronic media CPT refers to the advertising cost purchasing 1000 units of audiencei We think of a rating as a percentage of the population, but ratings are time weighted You could turn ratings into thousands by ignoring the fact that there are bits of people and simply multiply the universe by the rating This forgets that some people saw all of the event and some only saw 50% of the event Further, the peoplemeter universe changes daily, unless we look only at gender, age and language, therefore the calculation of thousands will differ depending on the universe

The More Commonly Used Media Terms (cont.)

PSCCM
Per single column centimeter Newspaper pages are divided into columns for advertising These do not correlate to columns for editorial, which vary depending on layout and editorial policy Generally broadsheets are 54cm high by 10 columns wide Generally tabloids are either 39cm high by 7 or 8 columns wide, depending on the publication group Sunday Times recently introduced modular advertising, where height needs to be a variable of 5cm Rates are worked out by multiplying rate by height, by column Rates for full colour, black & white, 1 spot, 2 spot. Generally what you see is what you are charged for, but should be confirmed with the publication in question

The More Commonly Used Media Terms (cont.)

SPONSORSHIPS
A sponsorship is the full or partial financing by the advertiser of a programme / feature or event, in exchange for brand / corporate awareness / association with / within that programme or event Generally sponsorships have the following elements
Opening Billboard an introduction to a TV / radio programme, which usually includes a mention of the sponsors and normally 10 or 15 in length Closing Billboard an closing of a TV / radio programme, which usually includes a mention of the sponsors and normally 10 or 15 in length Stings often attached to station promotion of the programme, 5 or 10 in duration (tagged) Commercial flighting during the programme & sometimes stings during the programme

The Development of the Media Strategy

The media Strategy Contains five basic elements:

Target Audience
Geographic Spending Scheduling Creative Considerations Media Weight / Delivery

WHO
WHERE WHEN WHAT HOW MUCH

The Development of the Media Strategy (cont.)

Always involves a series of trade-offs

The decision made for each element has a price tag

Trade-offs or compromises will be necessary The skill of media planning is to achieve the best balance of these dimensions relative to the campaign objectives

The Development of the Media Strategy (cont.)

CONTINUITY/TIME
(Longer campaigns, more bursts)

COVER / REACH
(More publications, another medium)

FREQUENCY
(More repetition, higher number of insertion)

DOMINANCE / IMPACT
(Longer commercials, bigger spaces, colour, special positions)

The Development of the Media Strategy (cont.)

Every Media Strategy document must include the following:
Marketing Environment Target Market Budget Regionality Timing / Seasonality Objectives including exposure objectives Strategy Conclusion

Marketing Environment
KEY ISSUES
Market share and size Pricing vs. competitors Competitive activity Clutter in the category? High/low interest Image/Commodity Brand Loyalty

Constructing the Target

The target market definition should be a brief, clear and workable statement of the group of people to whom the advertising is aimed The closer the match, the less money wasted on those not needed and the more efficient the campaign Who are we talking to? Use all available research sources (Psychographic, demographic, LSMS, Lifestyle, Product Usage, Geodemographic, Media usage) Regional skews Purchaser vs. user same or different people Quantify the target universe

LSMS
Social changes and the breakdown of community barriers resulted in crossover consumption of media LSMs came about to remove racial references from media planning unless they are relevant to the media plan There are 29 variables and positive and negative scores are allocated for each in order to measure your LSM level

LSMS
1 Hot running water
2 Fridge/freezer 3 Microwave oven 4 Flush toilet in/outside house 5 No domestic in household 6 VCR 7 Vacuum cleaner/floor polisher 8 No cell phone in household 9 Traditional hut 10 Washing machine 11 PC in home 12 Electric stove 13 TV set 14 Tumble dryer 15 Home telephone

16
17 18 19 20 21 22 23 24 25 26 27 28 29

Less than 2 radio sets in household

Hi-fi/music centre Rural outside Gauteng/W.Cape Built-in kitchen sink Home security service Deep freezer Water in home/on plot M-Net/DStv subscription Dishwasher Electricity Sewing machine Gauteng Western Cape Motor vehicle in household

Budget
How much money is available?
Does budget include / exclude VAT / Production / Promotions Cash flow timing Track real vs. inflated increase / decrease

Timing / Seasonality
When is the product purchased ?
How often ? Promotional timing (Do we need promotional advertising support pre / post / during promotional periods?) Will advertising have a greater effect at certain times of the year?

Objectives
If you dont know where you are going, and why, any road will take you there and you wont know when you have arrived! Tasks have to be set out in clear, unambiguous terms, with a broad outline of the ways in which they are to be carried out WHAT IS A MEDIA OBJECTIVE?
Objectives should be clear with regard to time and effect Media objectives should be specific to media

What Are Our Media Objectives

REACH SPECIFIC

DURATION
IMPACT

MEASURABLE
ACHIEVABLE

FREQUENCY
TIME PERIOD

REALISTIC

Strategy
(How to achieve our objectives)
Is a classical above the-line media route the answer or a combination of ATL media and BTL / promotional exposure? Inherent strengths/weaknesses of different approaches & media types What tactical opportunities are available? Is budget sufficient for the recommended route? Does client have preconceived ideas about media usage? Arrive at recommended plan of action Include broad media selection

Plan the Detail

The specifics of each medium recommended in the media strategy is planned Implementation may take the form of conventional advertising or the negotiation of promotional / sponsorship concept The plan details
Selection of media vehicles Selection of timing and phasing elements Selection of number of insertions-relates to GRPs Selection of programmes (TV/Radio) Allocation of budget

Media Buying
Traditionally the media department is divided into two clear functions, namely;
Media planning Media buying

Over the past 5 decades media buying has consisted mainly of a largely admin orientated function of scheduling, booking and administration of the media plan However, with recent developments including the advent of the media independent, media planners are often looked upon as custodian of the media strategy, formulators of the media objectives, while media buyers are the custodians of the actual campaign delivery

Media Buying (cont.)

There are a number of ways the media buyer can make a direct impact on the content of the actual media plan
Rate negotiation Budget and Rate monitoring Campaign monitoring Scheduling

The above factors have given rise to a new term implementation planning

Television A Working Timeframe

Airtime is always subject to availability Rate cards are received approximately 2 months prior On SABC to qualify for early booking discount the schedule has to be booked 5 weeks before a particular month Bookings should be made as early as possible due to limited availability Material deadline is 5 to 10 days prior For sponsorships, material is required earlier for approval Cancellation deadline is 15 - 28 working days or 100% penalty

Radio A Working Timeframe

Airtime is always subject to availability Booking deadlines vary from are 3 to 5 working days prior flighting Material deadlines vary from 2 to 5 working days prior to flighting For sponsorships or created features, the deadline is 2 weeks and for a competition 1 month The cancellation deadline is 10 to 28 days or a 100% penalty will apply Rate increases are generally advised 3 weeks to a month prior to implementation and different station groups increase rates at varied times of the year There are often more than one rate increase per annum with radio

Cinema A Working Timeframe

Cinema must be booked 3 to 5 weeks before first screening date on for 35mm and 10 days for digital A cinema week starts on a Friday 35mm final material must be delivered 3 weeks prior to first screening date in order for bulk prints to be produced Digital material must be delivered 2 weeks before first screening date to accommodate transfer and checking The cancellation period is 28 days to 6 weeks

Magazines A Working Timeframe

Booking as well as cancellation deadline is generally 6 weeks prior to scheduled month Material delivery deadlines are generally four weeks In the case of the weekly financial magazines, booking deadline is two weeks prior to issue date with material deadline ten days to one week prior to issue date 50% to 100% cancellation if after the booking deadline

Newspapers A Working Timeframe

Daily newspapers require 2 to 3 days for booking as well as cancellation Material delivery is 1 or 2 days before issue date Weekly newspapers should preferably be booked 7 working days before issue date Material delivery 3 days before issue date Cancellation deadline is the same as booking deadline

Outdoor A Working Timeframe

An outdoor contract must be signed at least 21 working days before application date Booking deadline is maximum 3 months prior or based on availability Contract renewal is at least 3 months prior to expiry Final material must be delivered 10 working days before application date in order to produce face Cancellation of a contract is not accepted with some media owners, while others require as much as 4 months Failure to advise non-renewal incurs 100% penalty

Monitoring The Plan

Once the plan has been booked, it requires constant monitoring of all aspects of the media plan The following four aspects need constant scrutiny
Budget Performance Environment The Brand

Media planning is an ongoing process, that means constantly challenging the status quo and looking for new solutions