Advertising: Media Planning

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 Key Terms

Advertising- A paid-for form of communication.

Promotional Advertising- When the goal is to
increase sales.
Institutional Advertising- Used to create a favorable
image for a business.
Infomercial- A long advertisement that looks like a
talk show and is 30 minutes long.

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 KEY TERMS

Media- The agencies, means or instruments

used to convey advertising messages.
Print Media- Includes advertising in
newspapers, magazines, direct mail, sign and
billboards.
Transit Advertising- Any advertisement that
can be found on public transportation.
Broadcast Media- Advertising that
encompasses radio and television.

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 KEY TERMS
Online Advertising- A form of advertising that uses
either e-mail or the World Wide Web.
Media Planning- The process of selecting the
advertising media and deciding the time or space in
which the ads should appear.
Audience- The number of homes or people exposed to
an ad.
Impression- A single exposure to an ad.
Frequency- The number of times an audience sees or
hears and ad.
Cost Per Thousand- The media cost of exposing 1,000
readers or viewers to an advertising impression.

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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 IMC
IMC
AdvertisingPlan
Plan Plan
Plan

Media
MediaPlan
Plan Creative
Creative
Objectives
Objectives Plan
Plan
Strategies
Strategies
Execution
Execution

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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 clients budget will be

spent.

Media
MediaObjectives
Objectives

Media
MediaStrategies
Strategies

Media
MediaExecution
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 targets media consumption habits
helps define the media strategy.

Shotgun
Shotgun

Profile
ProfileMatch
Match

Rifle
Rifle
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 Market Coverage

The budget available often dictates the extent of

market coverage.

National
National

West
West Central
Central East
East

Category and brand development

Key
KeyMarkets
Markets indexes are used to set market
priorities
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 Applying a BDI

Region Sales % Popn % BDI

Atlantic 7.6 7.6 100.0
Quebec 21.5 23.9 89.9
Ontario 42.5 38.5 110.4
Prairies 13.4 16.8 79.8
B.C. 15.0 13.2 113.6
Total 100.0 100.0 ----

BDI = Sales % divided by Population %

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 Media Scheduling
Even Skip

Pulse Seasonal

Blitz Build-Up

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 Reach / Frequency / Continuity
Total audience exposed to a message
Reach
Reach one or more times in a period, usually
a week.

The average number of times a

Frequency
Frequency message has been exposed to an
audience over a period of time.

The length of time required to

Continuity
Continuity 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 Magazine Television

2. Class of Media Sports Network
3. Specific Medium Sports Illustrated CTV

When selecting a specific medium, CPM is a determining

factor.
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 Comparing Media Alternatives

CPM The cost of the ad divided by

CPM
the circulation (in thousands).

Magazine Cost Circ. (000) CPM

ROB $18,800 363.7 $51.69

National Post Business $15,010 311.3 $51.10

Canadian Business $14,000 80.5 $173.91

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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
The strengths and weaknesses of all media options
are evaluated.

Medium Pro Con

Television Impact High Cost
Reach Clutter

Radio Targeting Fragmentation

Frequency Message (Sound only)

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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

Outdoor Reach Creative Limitations

Frequency Low Targeting

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 TV Advertising Alternatives

Factors such as the budget available and market coverage

priorities influence television decisions. TV is expensive.

Network Spots
Selective Spots
Local Spots
Sponsorships
Branded Content

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 Radio Advertising

In radio all decisions are usually based on demographics.

1. Station format determines the audience profile.

2. Radio is ideal for reaching targets defined by age.
3. Radio is an important medium if a key market
strategy is recommended.

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 Newspaper Advertising
Local market circulation and readership make
newspapers an attractive medium.

1. Newspapers are ideal for a key market media

strategy.
2. Newspapers are attractive to national advertisers,
and national and local retailers.
3. Newspapers offer merchandising opportunities.

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 Magazine Advertising

Magazines are excellent at targeting precisely defined

audiences.

1. Magazines are a class medium instead of a

massmedium.
2. The clustering of ads has a negative influence on
message impact.
3. Magazines are ideal for profile matching media
strategies.

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 Out-of-Home Advertising
Outdoor is a passive medium but the message is very
visible.

1. Outdoor ads reach the same audience

frequently.
2. A wide variety of alternatives are available.
Outdoor can be virtually anywhere!
3. An ideal medium for shotgun media
strategies in key markets.

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 Navigational Metrics
These seven advertising metrics are all
navigational metrics. That is to say, they can
help you steer your program toward higher
profitability, by indicating which tactics
worked better than others, which lists worked
better than others, and so on.

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 This information in turn will cumulatively help
you more effectively gain your prospects
awareness, engagement, understanding, belief
and favor, which generally and theoretically,
and depending on the soundness of your overall
marketing strategy will result in higher
profitability. That is, it will deliver a higher
Return on Investment (ROI), often called
Return on Marketing Investment (ROMI) .
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 Reach is a measurement of the size of the
audience to whom you will
communicate. Frequency is the average
number of times your ads will be shown to an
individual or household. These are basic
metrics used almost universally by advertisers
of all sizes.

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 Gross Rating Points (GRPs) equal Reach times
Frequency. If you are new to advertising, you
will probably notice that this is one of the more
frequently used phrases in the office.
Target Rating Points (TRPs) are Gross Rating
Points times the ratio of the specifically
targeted audience to the total audience.

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 Impressions equal the number of exposures of
an ad or commercial to people or households
in your audience. Cost per Thousand (CPM) is
the cost to reach 1,000 people or
households. Cost per Point (CPP) is the cost to
reach one percent of the audience.

Money does matter a lot.
Advertising Budget is the amount of money
which can be or has to be spent on
advertising of the product to promote it,
reach the target consumers and make the
sales chart go on the upper side and give
reasonable profits to the company.
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 Before finalizing the advertising budget of an
organization or a company, one has to take a
look on the favorable and unfavorable market
conditions which will have an impact on the
advertising budget. The market conditions to
watch out for are as follows:
Frequency of the advertisement

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 Competition and Clutter
Market Share of the Product
Product Life Cycle Stage
Frequency of the Advertisement
This means the number of times advertise has been
shown with the description of the product or service, in
the granted time slots. So here, if any company needs
more advertising frequency for its product, then the
company will have to increase its advertising budget.

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 Competition and Clutter
The companies may have many competitors
for its product. And also there are plenty of
advertisements shown which is called clutter.
The company has to then increase their
advertising budget.

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 Market Share
To get a good market share in comparison to
their competitors, the company should have a
better product in terms of quality, uniqueness,
demand and catchy advertisements with
resultant response of the customers. All this is
possible if the advertisement budget is high.

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 Product Life Cycle Stage
If the company is a newcomer or if the product
is on its introduction stage, then the company
has to keep the budget high to make place in
the market with the existing players and to have
frequent advertisements. As the time goes on
and product becomes older, the advertising
budget can come down as then the product
doesnt need frequent advertising
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 .
When the market conditions are studied thoroughly,
then the company has to set up its advertising budget
accordingly. For setting advertising budget, there are
four methods:
They are as follows.
Percentage Of Sales: In this method, the budget is
decided on the basis of the sales of the product from
previous year records or from the predicted future sales.
This is a pure prediction based
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 method and best applicable to the companies which
have fixed annual sales. But if in case there is a
requirement for more promotional activities then this
method has a disadvantage because there will be
decrease in advertisements as the budget is fixed.
Affordability: this method is generally used by the
small companies. Only the companies which have
funds and can afford advertising opt for this method.
The companies can go for advertising at any time in
whole year whenever they have money to spend.
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 The amount spent also varies from time to time as
per the advertisements takes place.
Best guess: This method is basically for
newcomers who have just entered the market and
they have no knowledge or say they are not aware
of how the market is and how much to spend on
advertising. Thus, this method is applied by the
higher level executives of the company as they are
the only experienced people.

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