Media Planning and

Buying
Understanding Media
 What is media?

Radio
Internet
Cinema
Television
Posters
Press
 What is media?
Word of Mouth
Events
Merchandise Sampling Point of Sale
Retail environment Radio DM
Internet Staff
Sponsorship Cinema
Television
Posters In-store
Press
Corporate Communications Point of Sale

PR Company vehicles
Packaging
Brand Figureheads
Ambient Product placement
Call centres
What is media
planning?
 “I know half the money I spend
On advertising is wasted, but I
Can never find out which half.”
- Anonymous
• 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 brand’s/service’s objectives

• The role of media planning is crucial to the effective

expenditure of approximately R6 billion in advertising
annually
 Media Planning process
A Media Plan is a Written Document that Summarizes the
Recommended Objectives, Strategies, and Tactics Pertinent to the
Placement of a Company’s Advertising Messages.

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 Situation analysis
Analysis is made of a company and its
competitors on the basis of :
 Size and share of total market
 Sales history, costs and profit
 Distribution practices
 Methods of selling
 Use of advertising
 Identification of prospects
 Nature of the product
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The Basic Goals That Direct Media Strategy Typically Focus on:
Setting Media Objectives
 Specifying Media Objectives

• 1. What proportion of the target audience should be

exposed to our message
“Reach”
• 2. How often should the target audience be exposed to
our message?
“Frequency”
-- “Motivational frequency”
-- “Effective reach and frequency”
 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 advertiser’s 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.)
• AR’S VERSUS GRP’S

– 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.)
• 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 WHO

• Geographic Spending WHERE

• Scheduling WHEN

• Creative Considerations WHAT

• Media Weight / Delivery 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 FREQUENCY

(More publications, (More repetition,
another medium) 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 16 Less than 2 radio sets in household
2 Fridge/freezer 17 Hi-fi/music centre
3 Microwave oven 18 Rural outside Gauteng/W.Cape
4 Flush toilet in/outside house 19 Built-in kitchen sink
5 No domestic in household 20 Home security service
6 VCR 21 Deep freezer
7 Vacuum cleaner/floor polisher 22 Water in home/on plot
8 No cell phone in household 23 M-Net/DStv subscription
9 Traditional hut 24 Dishwasher
10 Washing machine 25 Electricity
11 PC in home 26 Sewing machine
12 Electric stove 27 Gauteng
13 TV set 28 Western Cape
14 Tumble dryer 29 Motor vehicle in household
15 Home telephone
 
 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?
 What Are Our Media Objectives

• REACH SPECIFIC

• DURATION MEASURABLE

• IMPACT ACHIEVABLE

• FREQUENCY REALISTIC

• TIME PERIOD
 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
 When high frequency is required
• A new brand
• A smaller, less known brand
• A low level of brand loyalty
• Relatively short purchase and use cycle
• With less involved (motivated and capable)
target audiences
• With a great deal of clutter to break through
Specifying Media Objectives (cont’d)
• 3. How much total advertising is necessary to achieve
the reach and frequency objective?
“Weight” (GRPs/TRPs, Gross Impressions)
- FCB research: no awareness with <1000 GRPs
• 4. How to schedule the advertising campaign?
“Scheduling” or “Continuity”
- Continuous scheduling
- Pulsing
- Fighting
 Specifying Media Objectives (cont’d)

• 5. What is the least expensive way to

accomplish media objectives?
“Cost”: Absolute and relative costs
- CPM or CPP: Measures cost efficiency
• 6. Other considerations
-- Geographic coverage
-- Qualitative media environment
-- Recall research
 Developing and
Implementing Media
Strategies
 1. The media mix
• Single medium or multiple medium
• The
– objectives sought,
– the characteristics of the product or service,
– the size of the budget, and
– individual preferences etc
determine what combination of media will be used.
2. Target market coverage
Coverage
Full Market Partial Market Exceeding
Coverage Coverage Target Market

Population excluding target market

Target market

Media coverage

Media overexposure
 3. Scheduling
Objective of scheduling is to time promotional efforts so that
they will coincide with the highest potential buying times.

Continuity

Flighting

Pulsing

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
 4. Reach Vs Frequency
• Reach - Exposing potential buyers to the
message
• New brands or products need a very high level
of reach, since the objective is to make all
potential buyers aware of the new entry
• Frequency is the number of times one is
exposed to the media vehicle, not necessarily
to the ad itself
• Overstatement , rather ‘opportunities to see’
Program ratings
• Gross rating points = reach x frequency.
• GRPs are based on the total audience the media
schedule may reach; they use a duplicated reach
estimate.
• Target ratings points (TRPs) refer to the number of
people in the primary target audience the media buy
will reach—and the number of times.
• Effective reach- represents the percentage of a
vehicle’s audience reached at each effective
frequency increment.
• Determining effective reach.
MEDIA BUYING
 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
 Media buyers ability to negotiate
• Vehicle performance
• Unit costs
• Preferred positions
• Extra support offers
 Media Buying
Preferred Positions Extra Support Offers
• Locations in print media • Value-added media
that offer readership services
advantages – Contests
• Preferred positions often – Special events
carry a premium – Merchandising space at
surcharge stores
– Displays
– Trade-directed newsletters
 Media buying functions
• Provide inside information to media planner
• Selecting media vehicle
• Negotiating media prices
• Monitoring media vehicles
• Post campaign analysis
• Billing and payment
 Media Buying
Providing inside info
• Media buyers are important information sources for
media planners
• Close enough to day-to-day changes in media
popularity and pricing to be a constant source of inside
information
 Media Buying
Billing and Payment
• It is the responsibility of
the advertiser to make
payments to various
media
• The agency is
contractually obligated to
pay the invoice on behalf
of the client
Monitoring the Buy
• The media buyer tracks
the performance of the
media plan as it is
implemented, as well as
afterward
• Poorly performing
vehicles must be replaced
or costs must be modified
 Media Buying
Make-Goods Post-campaign
• A policy of Evaluation
compensating for missed • Once a campaign is
positions or errors in
handling the message completed, the
presentation planner compares
• Ensure that the the plan’s
advertiser is
compensated expectations and
appropriately when they forecasts with what
occur
actually happened
• Provides guidance
for future media
 Changes in Media Buying
• Media buying services
• Online media buying
• Global media buying
• Maintaining plan performance
• Scheduling and technical
problems
 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 media status and looking for new solutions
THANK YOU