This review session on Advertising Management aims

to develop your understanding on advertising

concepts, and its practical applications in crafting a
strategic and creative advertising campaign.

RMP MODULE ON ADVERTISING MANAGEMENT

Prepared by: Rodelyn Eileen G. Torres, MMC
Condensed from various authors- Belche, Wells, Lamb, and other internet resources
RMP Module on Advertising Management
Learning Outcomes/Objectives: (Part 1)

1. To understand the basic factors in advertising,

including types of advertising and facets model of
advertising effects.
2. To understand the process of advertising
management by knowing the structure of an
advertising agency, the key players, key positions,
mode of payments, and budget approaches.
3. To identify target audience segmentation and use
DAGMAR model in creating advertising goals and
objectives.
RMP Module on Advertising Management
Learning Outcomes/Objectives: (Part 2)

4. To develop creative proposition, big idea, selling

idea, and brand personality.
5. To understand the creative strategy approaches
and the different advertising techniques.
6. To know the basic of copy writing and the print ad
components.
7. To understand media planning and buying and
learn basic computation for print ad and TVC.
Summary of Learning Assessments
 Learning Assessment # 1 (Slide Number 15)
Using the Facets Model of Advertising Effects, discuss and relate your
favorite TV commercial. Also, kindly identify what type of advertising was
used.

 Learning Assessment # 2 (Slide Number 29)

Situational case: Your client wants to see your advertising agency office.
Can you provide him a drawing, illustration, or floor plan of your office
structure showing different departments and functions of key people?

 Learning Assessment # 3 (Slide Number 31)

Can you develop a market segmentation for a brand of milk tea?
Categorize market according to demographics, geographics, socio-
economic, and psychographics segmentation.

 Learning Assessment # 4 (Slide Number 37)

Develop a creative proposition and selling idea for a brand of MILK TEA.
Identify the benefits, promise, reason to believe, and USP.
Summary of Learning Assessments
 Learning Assessment # 5 (Slide Number 55)
Identify the advertising techniques used in the example print
advertisements and TVC’s.

 Learning Assessment # 6 (Slide Number 59 & 60)

• Identify the headlines, body copy, subhead, and
slogan/tagline of the given print ad.
• Identify the lead paragraph, body paragraph, and closing
paragraph of the body copy of the given print ad.

 Learning Assessment # 7 (Slide Number 73 & 74)

• Compute the SOV of MyPhone and Cherry Mobile
considering the provided data.
• Compute for the total print ad cost of MyPhone considering
the provided data.
 Five Basic Factors in Advertising
Although other
forms such as
public service
advertising use
donated space
and time.
1. PAID! 2. SPONSOR IS 3. REACHES A BROAD
IDENTIFIED! AUDIENCE!

To gain
awareness and
purchase
action

4. INFORMS AND 5. USE DIFF KINDS OF Although with the advent of internet
PERSUADES MASS MEDIA WHICH and interactive media, it has become
MAKE S IT NON- a personal and direct interaction with
PERSONAL the customers.
 Seven Most Common Types of Advertising

1. BRAND ADVERTISING – the most visible type of advertising. It

focuses on the development of a long term brand identity and image.
2. RETAIL ADVERTISING – focuses on the manufacturers who sell
their merchandise in a certain geographical area and announces facts
about products that are available in the local stores. It stimulates store
traffic and creates a distinctive image for the retailer. It can be LOCAL,
REGIONAL, and NATIONAL.
3. DIRECT RESPONSE ADVERTISING – use of any advertising
medium via phone, mail, or internet, to stimulate a direct sale.
4. INSTITUTIONAL OR CORPORATE ADVERTISING – it focuses
on establishing a corporate identity or winning the public over to the
organization’s point of view.
5. BUSINESS TO BUSINESS (B2B) ADVERTISING – marketing
communication sent from one business to another. Includes messages
directed at companies distributing products as well as industrial purchasers.
Ad placements are made in professional publications/journals.
6. NON PROFIT ADVERTISING- NGOs, charities, foundations, etc
use non profit advertising to solicit donations and other forms of events
and program participation to the general public.
7. PUBLIC SERVICE ADVERTISING- communicates a message on
behalf of a good cause. Also called PSA (public service announcements),
usually free of charge, and the media often donate time and space.
FACETS MODEL OF ADVERTISING EFFECTS
Drivers: Want/Desire,
Feelings, Likings,
Resonance

Drivers: Exposure,
EMOTION.
Selection, Attention. AFFECTION (Feel)
Interest/Relevance, Drivers: Motivation, Influence,
Awareness, Recognition Involvement, Conviction,
Believability/Credibility,
PERCEPTION PERSUASION Preference/Intention/ Loyalty
(See/Hear) (Believe)

Drivers: Trial, Buying, Contacting,

Advocating, Referral,
Drivers: Need, Cognitive
Prevention/Avoidance
Learning, Differentiation &
Recall COGNITION
BEHAVIOR (Act)
(Think)

ASSOCIATION Drivers: Symbolism, Conditioned

(Connect) Learning, Transformation
Learning Assessment # 1 – Using the Facets Model of Advertising
Effects, discuss and relate your favorite TV commercial. Also,
kindly identify what type of advertising was used.

What is your favorite

EMOTION.
TV commercial?
AFFECTION (Feel)
1. Brand Advertising
2. Retail Advertising
PERCEPTION PERSUASION 3. Corporate Advertising
(See/Hear) (Believe) 4. Direct Response Advertising
5. Public Service Advertising
6. Non Profit Advertising
7. B2B Advertising

COGNITION
BEHAVIOR (Act)
(Think)

ASSOCIATION
(Connect)
Advertising Management – complex process of using
various media tools to sell a product or service. The
scope and focus is geared towards IMC.

Recognized as a business process

IMC
(Integrated Importance of relevant audience
Multiple relevant audiences
Marketing
Communications Demand for accountability and
Demand for accountability
Measurement of Outcomes
ADVERTISING AGENCY is
an independent organization
of creative people and
business people who
specialize in developing and
preparing marketing and
advertising plans,
advertisements, and other
promotional tools.

BRAINSTORMING is a
meeting done by creative
people to come up with one
big idea.
 ORGANIZATIONAL STRUCTURE OF A
FULL SERVICE ADVERTISING AGENCY
ACCOUNT ACCOUNT PLANNING & CREATIVE DEVT & MEDIA PLANNING & INTERNAL AGENCY
MANAGEMENT RESEARCH PRODUCTION BUYING SERVICES

Media Media Traffic

Account Account Creative HR Finance
Planners Buyers Dept
Director Planners Director

Account Strategic Copywriter

Management Supervisor Specialist
Supervisor
Account Researchers Art Director
Executive
Art Producer

ACCOUNT ACCOUNT CREATIVE DEVT & MEDIA PLANNING

MANAGEMENT
• Account Director-
oversee the entire
operations of the account
management division.
• Management Supervisor-
provides leadership on
strategic issues and look
for new business
opportunities.
• Account Supervisor -
functions as a liaison
between client and
agency. Focus on the
clients needs and
develops points of view on
research and strategy.
• Account Executive –
repsonsible for day to day
activities and acts as a
project manager.
INTERNAL AGENCY
PLANNING PRODUCTION & BUYING
•Account Planners- •Copywriters- those •Media Planners- •HR - for staffing and
gathers all available who write creative ad those who plan the employment services
market intelligence copy frequency and •Finance – for
and acts as one voice •Art Directors- those placement of the ads. managing the
of the consumer who design ideas for •Media Buyers- those finances of the
•Strategic Specialist- the rc and tvc who negotiate with business operations.
prepares •Art Producers- media to get lowest •Traffic- coordination
comprehensive info those who convert rates & discounts. of account status and
on consumers wants, ideas and designs pending projects
needs, and into actual rc or tvc.
behaviors.
•Researchers- pool of
people task to do
research on the
internal and external
market.
Key advertising positions to remember…
ACCOUNT EXECUTIVE / ACCOUNT MANAGER
• Liaison between the client and the creative team to ensure that needs and goals are
being met on every project.

CREATIVE DIRECTOR
• Interpret client's communications strategy to develop proposed creative
approaches and treatments that align with that strategy to stimulate creative ideas
for and from everyone involved in the creative process

ART DIRECTOR
• Works with the creative director. Comes up with the BIG IDEA for the ad and has a
sense of graphic design judgment and technical knowledge of production .

COPY WRITER
• Ultimately responsible for the verbal or textual content, which often includes
receiving the copy information from the client. Generate creative ideas to represent
the proposition (the advertisement or campaign's key message)

TRAFFIC MANAGER
• Responsible for maintaining an advertising schedule, compiling reports for clients’
campaign , delivery and handling insertion orders and payments.

PROOF READER
• Checks the typeset copy and marks any errors using standard proof correction
marks. Take on some light copy-editing duties.
 TYPES OF ADVERTISING AGENCIES
1. FULL SERVICE 2. CREATIVE 3. MEDIA BUYING
AGENCIES BOUTIQUES SERVICES
• Has 4 functions: • Small agencies that • Agencies that specialize
focus mainly on in purchasing of media –
1.Account Management planning creative air time, ad space, etc.
2.Creative Services executions and ideas • Why do we need media
(includes print and with no media buying buying services?
broadcast production) services. • 1. Complex industry-
3.Media Planning tv, cable, print, radio,
4. Account Planning magazine
(includes internal • Big agencies usually • 2. Cost of maintaining
planning such as HR, seek services from media dept has
traffic, accounting) creative boutiques if escalated
they are already loaded • 3. Such services can
with accounts buy media at a low
cost because they
can group several
clients purchases
together and get
volume discounts.
Key Players in Advertising
Let us review the following top caliber advertising network agencies:

2011 Top Advertising Network 2011 Top Advertising Network

Agencies in the World Agencies in the Philippines
1. BBDO 1) BBDO/Proximity Phils.
2. Ogilvy & Mather 2) McCann Erickson Phils.
3. DDB Worldwide 3) TBWA/Santiago & Puno
4. Leo Burnett 4) JWT Manila
5. Young Rubycam 5) DDB Philippines
6. J. Walter Thomson 6) Ogilvy & Mather
7. TBWA 7) Lowe Inc
8. Ace Saatchi 8) Campaigns and Grey
9. Publicis 685 9) Leo Burnett Manila
10. EuroRSCG 10) Ace Saatchi
11. McCann Erickson
12. W+K
13. Campaigns & Grey
14. DraftFCB
15. Dentsu

Source: www.adweek.com
Now, let us review the following biggest spending
advertisers/client companies in the Philippines…
 Ad Agencies Have Skilled Specialists

Artists Writers Researchers

Photographers Media Analysts Other Skills

 How Agencies Are Paid by the Clients/Advertisers

Commissions Fees Retainers Performance Value Billing

• Traditional form • Comparable to • Amount billed per Base • Agency is paid for
of compensation the system by month is base on • Payment its creative and
based on the which advertisers the projected arrangement strategic ideas,
percentage of pay their lawyers amount of work based on the rather than for
media cost. and accountants. and the hourly client’s sales or % executions and
Usually, it is 15% Varies per rate charged. of marketing media
department Most commonly budget. placements.
regardless of the used by the PR
level of salary of agencies.
the person doing
the work.
Charges also
include travel
expenses,
standard fees,
etc.
How Agencies Gain Clients

Referrals Presentations

Solicitations

Public Relations Image, Reputation

 Why Agencies Lose Clients

Poor Unrealistic Personnel

Performance Demands Changes

Personality Poor
Change in Size
Conflicts Communication

Changes in Payment
Declining Sales
Strategy Conflicts

Conflicts of
Policy Changes
Interest
 Budgeting Approaches

• Many firms employ more

than one method
• budgeting approaches vary
according to the size and
sophistication of the firm.
Learning Assessment # 2 – Your client wants to see your advertising
agency office. Can you provide him a drawing, illustration, or floor
plan of your office structure showing different departments and
identify functions of each key people?

1st page – Illustration of your advertising office. Sample 2nd page – Sample only
only, label each divisions and describe the function.
Grouo Agency Name:
Group Leader:

Account Management
Account Director:
Strategic Planner:
Account Planning Creative Director:
Media Planner:
Account Executive:

Agency Logo

Entertainment Room You can make use of different illustrations for the org
Creative Division Media Planning chart such as geneology tree, photo album, film roll, etc.
 Target Audience Segmentation in Advertising
SEGMENTATION

4. Behavioral
1. Demographics 2. Geographic 3. Sociographics 5. Benefits Sought
Characteristics

1. Gender –
male,female, GLBT
2. Age – pre school 1. Social class-
1. International 1. Specific problems
children, tweens, (A,B,C,D,E) 1. Usage rates
2. National, solved by product
teens, gen y, gen x, 2. Income Status 2. Usage status
baby boomers, 3. State 2. Specific benefits
3. Lifestyle 3. Brand loyalty
seniors) 4. City sought
3. Personality
3. Education
4. Income

Psychographics/ VALs Segmentation (Values, Attitude, and Lifestyle Segmentation)

THINKERS BELIEVERS EXPERIENCERS (Fun- MAKERS
ACHIEVERS STRIVERS
(Altruist) (Devouts) Seekers) (Creatives)

• emphasize • value duty and • focus on • value • seek education,

social issues tradition. personal professional and technology, and
and societal enjoyment and material goals knowledge.
well-being. pleasurable more than the
experiences. other groups.
 TARGET MARKET
Learning Assessment # 3 – Can you develop a market
segmentation for a brand of milk tea? Categorize market according
to demographics, geographics, socio-economic, and psychographics
segmentation.

DEMOGRAPHICS, SOCIO-ECONOMICS & PERSONALITY

Gender
Age of Target Market

Education
Income
Social Economic Class
PSYCHOGRAPHICS & VALUES
DAGMAR – Defining Advertising Goals for
Measured Advertising Results

• Model developed by Russel Colley

for setting advertising objectives
and measuring the results of an ad
campaign.
• Communications effects are the
logical basis for advertising goals
and objectives against which
success or failure should be
measured.
Communication Task for DAGMAR Model:
• Communications task must be based on a hierarchical model of the
communications process with four stages:
1. Awareness—making the consumer aware of the existence of
the brand or company.
2. Comprehension—developing an understanding of what the
product is and what it will do for the consumer.
3. Conviction—developing a mental disposition in the consumer
to buy the product.
4. Action—getting the consumer to purchase the product.
How to become creative in developing a
positioning statement?

Establish a particular place in the

Positioning customer’s mind for the product or
service

Based on product attributes/

benefits, price/quality, use or
application, type of user, problem
solved
 CREATIVE PROPOSITION
& SELLING IDEA

BENEFIT PROMISE REASON WHY USP (Unique Selling

• What product can do • Benefit statement • Emphasize the Proposition)
for the user by that looks to the reason why you • Benefit statement
translating the future and predicts should buy that is both unique to
product features or that something good something, although the product and to
attribute into will happen if you the reason the user.
something that use the product. sometimes is implied
benefit the or assumed.
consumers.
Example:
BENEFITS:
1. CLEANSE! For detoxification = Tropical Citrus Flavor
2. POWER UP! For immediate energy = Apple Flavor
3. ENDURE! For stamina and sustained energy = Fruit Punch flavor
4. PROTECT! For immunity = Orange Flavor

PROMISE:
―Vitwater: Different Needs. One Solution. Beyond Basics‖
―It’s not just about the taste and refreshment‖
―The first enhanced flavored water with benefits‖

REASON TO BELIEVE:
1. It has fiber that helps flush-out the toxins in the body to promote
digestive health (CLEANSE)
2. Charged with B Vitamins that are used by the body for
metabolism and energy production. (POWER UP)
3. It has Ribose that helps enhance endurance, speed and recovery
from physical activities (ENDURE)
4. It has antioxidants like Vitamin A, C and E, Selenium and Zinc
that help boost (PROTECT)

UNIQUE SELLING PROPOSITION:

To males and females who are driven and lead an active lifestyle,
VitWater is a brand of enhanced water that contains the vitamins (like
Vitamin A, B, C, and E) and minerals (like Taurine, Selenium, and
Zinc)
that are essential to keep you going as everyday life becomes more
demanding. VitWater is simply water plus benefits!
BRAND PERSONALITY
A set of human
characteristics that are
attributed to a brand name.
A brand personality is
something that a consumer
can relate. An effective
brand will increase its brand
equity by having a
consistent set of traits. This
is the added-value that a
brand gains, aside from its
functional benefits.
Nescafe Dolce Gusto
He is visualized as a
young man belonging to
the upper middle class,
well-educated and a
professional. He is
ambitious and wants to
travel. His ambition is
backed by
assertiveness, and
competence to achieve
excellence.
Learning Assessment # 4 – Develop a creative proposition and
selling idea for a brand of MILK TEA. Identify the benefits,
promise, reason to believe, and USP.

BENEFITS:

PROMISE:

REASON TO BELIEVE:

UNIQUE SELLING PROPOSITION:

 Two Perspectives on Advertising Creativity

The ability to generate fresh, unique and appropriate ideas

that can be used as solutions to communication problems.

“Only artistic
“Its not
value and
creative
originality
unless it sells”
Suits Artists count”

STRATEGIST CREATIVIST
analytical, logical, unique, novel,
planner, goal- unexpected,
oriented, results original, out of the
driven box, out of this
world
•LOGICAL THINKING – Left brain thinking
•DIVERGENT THINKING – Right brain thinking
These 2 shall create SYNERGY
to get create effective advertising impact!
LOGIC+ CREATIVITY!
 Advertising Creativity

Creative Determining what the advertising

Strategy message will say or communicate

Creative Determining how the message

Tactics strategy will be executed
CREATIVE STRATEGY APPROACHES

HEAD & HEART SOFT & HARD SELL FRAZERS 6 TAYLOR’S

STRATEGY STRATEGY CREATIVE STRATEGY WHEEL
• Ads that speak to • Ads that sell hard STRATEGIES • Divided into
the head ( for which creates a • Creative strategy that is: Transmission and
cognition response base on •1. Pre-emptive Ritual Views
objectives), and logic and sell soft •2. Focus on USP • Transmission Views:
talks to the heart (for that targets emotion •3. Focus on brand (HEAD)
emotion objectives) to create a response image
•4. Focus on positioning • 1. Rational
base on attitudes,
•5. Focus on resonance • 2. Acute Need
moods, and
feelings.
(lifestyle and other • Routine
associations that
audience can identify) • Ritual Views
•Focus on affective and (HEART):
anomalous message( • 1. Ego
emotional and ambigous
message to break • 2. Social
indifference) • 3. Sensory
Let’s Make It Simpler…..

Creative Advertising
Strategy Approaches
HEAD HEART
Strategy Strategy
Informational &
Emotional
Factual
Advertising
Techniques
& Execution

Hard Sell Advertising Soft Sell

Tone & Mood
Different Types of Advertising Techniques:

1. Straight Sell or Factual

2. Scientific or technical
3. Demonstration
4. Comparison
5. Testimonial
6. Slice of Life
7. Dramatization
8. Animation
9. Personality Symbol
10.Fantasy
11. Humor
CREATIVE AD TECHNIQUES & EXECUTION
1. STRAIGHT SELL OR FACTUAL MESSAGE
Relies on a straightforward presentation of information about a
product/service, often used informational/rational appeals, where the
focus is on its product features/benefits.
2. SCIENTIFIC/ TECHNICAL EVIDENCE
Advertisers often cite technical information, results of scientific or laboratory
studies, or endorsements by scientific bodies or agencies to support their
advertising claims.
3. DEMONSTRATION

Designed to illustrate the key advantages of the product/service by showing it

in actual use or in some staged situation.
4. COMPARISON

offers a direct way of communicating a brand’s particular advantage over its

competitors or positioning a new or lesser known brand with industry leaders.
5. TESTIMONIAL
Where a person praises the product or service on the basis of his or her
personal experience with it. Often linked to Endorsement: a well-known or
respected individual such as a celebrity or expert in the product or service
area speaks on behalf of the company or the brand. The message is not
necessarily based on their personal experiences.
6. SLICE OF LIFE
Portrays a problem or conflict that consumers might face in their daily lives.
The ad then shows how the advertiser’s product or service can resolve the
problem .
7. DRAMATIZATION
Somewhat akin to slice-of-life execution in that it often relies on the
problem/solution approach, but it uses more excitement and suspense in
telling the story.
8. ANIMATION
Animated scenes are drawn by artists or created on the computer, and
cartoons, puppets, or other types of fictional characters may be used.
9. PERSONALITY SYMBOL
Involves developing a central character or personality symbol that can deliver
the advertising message and with which the product or service can be
identified.
10. FANTASY
The product or service becomes a central part of the situation created by the
advertiser. Cosmetics ads often use fantasy appeals to create images and
symbols that become associated with the brand.
11. HUMOR/ FANTASY
Humorous executions are particularly well suited to television or radio,
although some print ads attempt to use this style.
Learning Assessment # 5 – Identify the advertising techniques
used in the example print advertisements and TVC’s.

1. Straight Sell or Factual

2. Scientific or technical
3. Demonstration Play the compilation
4. Comparison of TVC’s and show
5. Testimonial the collection of print
6. Slice of Life advertisements for
7. Dramatization students’ activity.
8. Animation
9. Personality Symbol
(Separate ppt and
10.Fantasy
video files)
11. Humor
 Copy Writing Format
Visual, headline,
Attention subhead
Subhead, body
Interest copy
Body copy
Desire
Logo, slogan,
Action signature block,
reply device
COPY WRITER – person who writes AD COPY that shapes and sculpts the
words in an advertisement. He is usually branded as the LITERARY MASTER,
SAVY MARKETER, and the KILER POET!

COPY – text of an ad, or words people say in the commercial

Print Ad Components
Headline:
Words in the Leading Position of the Ad

Subheads:
Smaller Than the Headline, Larger Than the Copy

Body Copy:
The Main Text Portion of a Print Ad

Visual Elements:
Illustrations Such As Drawings or Photos

Layout:
How Elements Are Blended Into a Finished Ad
 How to Write Effective BODY COPY

BODY COPY

• The text of the ad. Primary role is to

maintain the interest of the reader.

LEAD PARAGRAPH

• The first paragraph of the copy

where people test the message and
see if they want to read it.

CLOSING PARAGRAPH

• Refers back to the creative concept

and wraps up the big idea
Learning Assessment # 6-A – Identify the headlines, body copy,
subhead, and slogan/tagline
Learning Assessment # 6-B – Identify the lead paragraph, body
paragraph, and closing paragraph.
 Media Planning & Buying
& Media Planning

Which way shall we go?

Prepared by: Lyn Torres (Marketing Department)

Condensed from various authors- Belch, Moriarty, and other internet resources
 Traditional Media Landscape

T - ELEVISION
R - ADIO
I - INTERNET
M - OBILE
P - RINT
What is a MEDIA PLAN?

Media Plan – written document that

summarizes the objectives/strategies,
pertaining to the placement of a company’s
brand. The ultimate goal is to find the most
appropriate and effective ways to deliver
messages to target audience.
Measured Media – evaluating the media using
metrics such as CPM (cost per thousand)

Contact Point/ Touch point– diverse ways

where people came into contact with a
brand through all types of traditional (tv,
radio, print) and non traditional media
exposures ( internet, mobile, OOH and
other alternative new media) .
Components of a Media Plan

Advertising
Plan

Media
Media Buying Evaluation
Planning

Target and
Media Media Scheduling &
Media Media Tactics Monitoring
Objectives Selection Mix Budgeting
Research
 DEVELOPING THE MEDIA PLAN

Difference between Media Objectives, Media Planning,

and Media Strategy
1. Media objectives - goals to be attained by the media strategy
and the program

2. Media planning - series of decisions involving the delivery of

messages to audiences.

3. Media strategy - decisions on how the media objectives can be

attained.
Difference between Continuity, Flighting, and Pulsing
of Media Scheduling

Continuity: refers to a continuous pattern of advertising, which may mean

every day, every week, or every month.

Flighting: employs a less regular schedule, with intermittent periods of

advertising and non-advertising.

Pulsing: actually a combination of the first two methods. Continuity is

maintained, but at certain times promotional efforts are stepped up.
How do we compute for SOV?

Share of Voice – measure of percentage (%) of total advertising spending by

one brand in a product category.

Hypothetical Example: Let’s say, approximately for 2010, the advertising

expenditures of Globe Telecoms was valued at 100M, while Smart was at
80M. To get the SOV, the company advertising expenses must be divided by
the total industry advertising expenditure.

Ex: Telecoms Industry – 180M

Globe Telecoms = 100 divided by 180M = 55% Share of Voice

Smart Telecoms = 80 divided by 180M = 44% Share of Voice
 USE OF INDEX TO DETERMINE MARKET POTENTIAL
INDEX- it is an indicator to know to whom shall a product will be
advertised.

NOTE: An index number of over 100 means use of the product is proportionately
greater in that particular segment.

BDI (Brand Development Index) – determines the sales potential

for the brand in the market area. The higher the BDI number, the
greater the potential that exists in a particular market.

CDI (Category Development Index) – determines the potential for

product development of the total product category in a given area.
Difference Between Coverage, Frequency, and Reach

*Coverage - potential audience that might receive the message

through the vehicle.
*Frequency- number of times when the receiver is exposed at least
once in a given period of time.
*Reach- Number of different audience members exposed at least
once in a given period.

GRP (Gross Rating Point) – combines the program rating and

the average number of times the home is reached during this
period.

TRP (Target Rating Point) – refers to the number of people in

the primary target audience the media buy will reach
BUDGET CONSIDERATIONS IN MEDIA PLANNING

Absolute costs of the medium or vehicle is the actual total

cost required to place the message.

Relative costs refers to the relationship between the price

paid for advertising time or space and the size of the
audience delivered; it is used to compare media
vehicles.
Do you have an idea how advertising in
newspapers are being computed?
• Top 3 National Newspapers Basic Information
Rate/ColCm Color Surcharges
Title Circulation Page Size M-Sat Sun +1C +2C +3C
Phil Daily Inquirer 270,375 9cols x 53cms 330.00 380.00 30% 60% 80%
Manila Bulletin 262,809 9cols x 53cms 315.00 370.00 30% 60% 80%
Philippine Star 245,520 9cols x 52cms 330.00 380.00 30% 50% 80%

Title Position Surcharges

Phil Daily Inquirer 20% pages 3,5,7, back & front pages
Manila Bulletin 30% pages 2,3,4,5,6,7,9, front & back, centerspread
Philippine Star 15% pages 3,5,7, back & front pages

Rate/ 4color Position FPFC

Title Page Size Issue Col Cm Surcharge Surcharge FPBW FPFC Back Page

Phil Daily Inquirer 9cols x 53cms M-Sat 330.00 80% 20% 157,410.00 283,338.00 314,820.00
Sun 380.00 80% 20% 181,260.00 326,268.00 362,520.00
Manila Bulletin 9cols x 53cms M-Sat 315.00 80% 30% 150,255.00 270,459.00 315,535.50
Sun 370.00 80% 30% 176,490.00 317,682.00 370,629.00
Philippine Star 9cols x 52cms M-Sat 330.00 80% 15% 154,440.00 277,992.00 301,158.00
Sun 380.00 80% 15% 177,840.00 320,112.00 346,788.00
Learning Assessment # 7-A – SOV Computation

For 2012, the advertising expenditures of

MyPhone was valued at 3M, while Cherry
Mobile was at 2M. What is the computed SOV
for MyPhone and Cherry Mobile respectively?

To get the SOV, the company advertising

expenses must be divided by the total industry
advertising expenditure.
 Learning Assessment # 7-B – Print Ad Computation

The brand manager of Mylphone is planning to come up with several print ad

executions which will feature all the latest handsets and unit models available
in their stores. How much budget should he allot for all its print ad executions
considering the following specifications:

1.Print ad size: 6 columns, 25 cms; Placement: Philippine Daily Inquirer,

Saturday edition. FP+2C
2.Print ad size: 9 columns, 40 cms; Placement: Philippine Star, Sunday
edition, FPFC+3C
3.Total Print Ad Cost amounts to Php ________________?
How About TV ad?
Cost Efficiency Measurements
• Cost Per Rating Point (CPRP or CRP): Measurement in money of a
medium’s cost to deliver one (1) rating point or one percent (1%) of
audience.
• Formula: CPRP = Cost of Medium/Program
Rating

• Example Umagang Kay Ganda vs Unang Hirit

– Umagang Kay Ganda
• UKG Rating : 5.0
• UKG Cost/30”: P20,870
• UKG CPRP : P20,870/5.0 = P4,174.00
– Unang Hirit
• UH Rating : 6.7
• UH Cost/30” : P19,700
• UH CPRP : P19,700/2 - P 2,940.30
Cost Efficiency Measurements
• Cost Per Thousand (CPM): Measurement in money of the price required
to deliver a thousand audience units such as listeners, viewers or
readers.
• Formula: CPM = Price of Medium x 1,000
Delivered Audience

• Example: Wowowee vs Eat Bulaga

Program: Wowowee
– Total Viewers: 656,573
– Cost/30” : P76,500
– CPM : (P76,500/656,573) x 1,000 = P116.48
Program: Eat Bulaga
– Total Viewers: 779,441
– Cost/30” : P110,000
– CPM : (P110,000/779,441) x 1,000 = P141.13