Advertising Budgeting, Media,

and Media Planning

Mkt 340
Prof. Bill White
The Advertising Budget
Setting the Budget
Percentage of Sales
Payout Plan
Competitive Budgeting
The Task or Objective Method
 What’s the objective?
 What type and how much media needed?
 Can we afford it?
Arbitrary
Administering and Protecting the Budget
Media Defined
The vehicles that carry the ads to the
target market.
Which is most important? Picking the
correct media or having great creative?
What are the types of media?
Examples of Nontraditional Media
ABC Inflight Airplanes
ActMedia Supermarkets
Aislevision Supermarkets
Aladdin’s Castle Malls
Beyond the Wall College posters
Channel One High schools
CineSpot Cinemas
CNN Airport Network Airports
Cover Concepts Book Covers High schools
Go Cards Health clubs, restaurants
Instant Coupon Machine Supermarkets
Military MediaBoards Military bases
Miller Airship Blimps
Resort Sports Network Resorts
Roadmark Fleet Advertising Trucks
Screenvision Cinemas
U College newspapers
Sample of a Syndicated Media List
MAGAZINES RADIO NETWORK TV CABLE NETWORKS
Allure Adult Contemporary American Gladiators Arts & Entertainment
American Baby All News America’s Funniest.. American Movie Classics
American Health All Sports America’s Most… Black Entertainment TV
American Hunter AOR/Progressive Rock Baywatch The Box
American Legion Black Beverly Hills 90210 Bravo
* * * *
* * * *
Working Woman Religious/Gospel Washington Week… TV Food Network
WWF Magazine Soft Contemporary Wild America USA Network
Yachting Spanish Wings VH-1
Yankee Urban Contemporary WKRP in Cincinnati The Weather Channel
YM Variety The X-Files WGN-TV

Source: Mediamark Research, Inc., Spring 1995.

Organization of the Media Function

Media planner
Media buyer
Media researcher
Important Trends in Media
Convergence
Interactivity
Creativity
Optimization
Key Media Terms
 Media plan: document that establishes how
media will be used to disseminate an advertiser’s
message, including objectives and strategy.
 Media objective: statement in media plan that
explains the goals of the plan; usually states how
many of the target will be exposed to advertising
messages in a given time period, and how often.
 Media strategy: statement in media plan that
outlines how objectives will be accomplished;
shows where and when advertising messages will
appear, and at what cost.
Media Planning
Media Planning = Selection + Scheduling
Factors Influencing Media Planning Decisions
 Target Market Profile
 Looking at Brand/Product Dynamics
 The Creative Execution
 Budget Considerations and Media Deals
 The Competitive Situation
 Availability and Timing Considerations
 Cost Efficiency (CPM = Cost per thousand (CPM): cost
of reaching 1,000 members of target audience with media
vehicle(s) or plan.)
CPM Formula and Example
Cost
CPM = X 1,000
Audience

Which is more cost efficient on a CPM basis?

A-- :30 TV Commercial in “Friends”
$250,000
CPM = X 1,000 = $12.50
20,000,000
B-- :30 TV Commercial in “Monday Night Football”
$300,000
CPM = X 1,000 = $10.00
30,000,000
Media Selection
Media are evaluated based on selectivity.
There are two types of selectivity:
 Class Selectivity is the ability of a medium to reach
the target market without waste.
 Geographic Selectivity is the ability of a medium to
cover a particular geographic area without spillover.
How would you rate the different major media
in terms of class and geographic selectivity?
Media Scheduling
Reach
(% of target audience with opportunity for exposure to
media vehicle(s) or media plan in a given time frame)

+
Frequency
(average number of times target is likely to be exposed to
the ad in a given time frame)

100%
The Difference between Reach
and Frequency
Media Scheduling (continued)

Reach
+
Frequency
+
Continuity
(how long the campaign runs—
continuous vs. flighting vs. pulsation)

100%
Reach, Frequency, and Continuity Relationships with a
Fixed Budget
Media Scheduling (continued)

Reach
+
Frequency
+
Continuity
+
Dominance/Impact
(the attention-getting ability of the media vehicle(s)
selected to run the ad)

100%
Evaluating the Media: Key Terms
 Rating point: the % of a given population group that uses a
specified media vehicle.
 Share: Households/persons using television (HUT, PUT): %
of homes or people watching TV at a given time.
 Gross rating point (GRP): total number of ratings for different
media vehicles.
 Gross impression: translation of GRPs into people; number of
audience exposures x number of times they will see or hear
vehicles.
 Cost per rating point (CPP): cost of buying one rating point in
a given media vehicle or type.
 Audience: number or % of homes or persons using a media
vehicle.
 Coverage: Same as reach – the % of homes or persons
receiving broadcast signal within specified area, or receiving
specific magazine or newspaper.
Evaluating the Media: Key Terms,
Continued

 Circulation: Total number of copies of a publication sold

through various forms of distribution.
 Readers per copy: average number of people who read
each issue of publication.
Types of Media Plans

 Geographic
 Local, spot, key market
 Regional
 National
 International
 Selective
 Combination
Sample Flowchart of a Media Plan
Evaluating the Media Plan
 Follow up—getting make-goods, tearsheets.
 Measuring the impact:
 Test consumer awareness of campaign before,
during, and after.
 Sales data.
 Compare actual reach/frequency figures to
proposed estimates.
 Syndicated Media Research Services
 Nielson, Arbitron, Simmons, Audit Bureau of
Circulation