Oct 3rd
Theories of Media Choice 1
u Working
theories of media professionals
u Consistent
genre preferences
u Dislikes
also expressed in terms of genres
u Genres
linked to demographics
u Least
objectionable choice
u Selection
of medium is habitual
u After
that, select the least objectionable
u Big
events may change habits
u Problem:
Genres not stable, multimedia, George Clooney
Common misperceptions
•
Primary role of media is to “crunch the numbers”
•
Media Planners have access to a special computer
that spits out media plan recommendations and flowcharts
•
All of an agency’s creative thinkers are working
in the creative department
•
Media’s contribution begins and ends with the
media plan
Media: A MESSAGE Delivery
System
Media exist primarily to deliver message content – entertainment
and information – to a vast audience.
Advertisers find media convenient and relatively inexpensive delivery
systems compared to direct mail or other channels that do not carry
entertainment and information.
Media planning
Media planning consists of the series of decisions made to answer the
question,
“What are the best means of delivering advertisements to prospective
purchasers of my brand or service?”
This definition is rather general, but it provides a broad picture of
what media planning is all about.
A process
Media planning is a series of decisions that provides the best possible
answers to a set of problems.
It is the planner’s recommended way to balance the many tradeoffs
within a given budget.
Finding the best solutions to a set of problems represents the main
task of planners, and this is what makes media planning such an intellectually
challenging activity.
Media plan
When all the questions have been asked and the decisions made, the
recommendations and rationales are organized into a written document called a media
plan.
The plan, when approved by the advertiser, becomes a blueprint for the
selection and use of media.
Once the advertiser has approved the plan, it also serves as a guide
for actually purchasing the media.
CHANGING FACE OF Media
Some marketers believe the traditional media forms such as television,
newspapers, magazines, and radio are passé.
Tv is still strong
Holiday electronic sales were strong over Black Friday weekend as
predicted and measured by several sources including the Consumer Electronic
Association (CEA) – particularly strong were LCD TV’s and HDTV’s. This, in addition to strong ratings and more
people staying at home in a tough economy, bode well for TV’s strength as a
marketing vehicle.
New media is fragmented
Although the Internet as a whole is now accessible to 86% of the US
population its fragmentation across thousands of sites makes it costly to
deliver advertising to large numbers of people with enough frequency to
communicate the message.
Mass media, especially the top rated television programs and large
circulation magazines such as People continue to define popular culture
in the United States and in the world.
Mass media is still essential
Mass media are essential to create broad awareness of new
products/services and to reinforce awareness of existing brands.
But today’s consumers want more information than can be communicated
with the traditional media.
Because they expect to get this information from the Internet,
marketing plans must consider how this medium, and especially search tools like
Google and Bing, will be used to build on the awareness that has been created
with mass advertising.
More targeted
Most of the questions about traditional media planning revolved around
how media can reach the right persons.
The “right” persons came from broadly aggregated data, such as “women
aged 18–49,” or “men aged 25–54.”
Audience fragmentation
Technology has made it economical to deliver content that appeals to
smaller groups of people.
Today the average home can receive 119 channels, up from 61 channels in
2000 and Cable television programs, can now be seen in 90% of U.S. HH’s.
This proliferation of viewing choices has significantly eroded the
audience to the traditional broadcast networks even though hours of viewing
have remained essentially constant.
Balancing comp and coverage
The result of fragmentation is a splintering of the audience among
channels whose content may or may not be relevant to advertisers.
For example, marketers of vacation destinations will certainly
advertise on the Travel Channel, but the majority of their customers never
watch it.
Although the target audience composition of the Travel Channel is very
high (just about all the viewers are interested in travel), its coverage is
very low – there are a great many travelers who never watch the Travel
Channel.
Composition
•
The percent of a media vehicle’s audience that
is within an advertiser’s target
Coverage
•
A definition of a medium’s geographical potential. Very similar to
reach, depends on which medium is being used.
CHANGING ROLE OF PLANNERS
As a result of technological advancements and audience fragmentation,
the role of media planners has changed in advertising and media agencies.
Today planning has become much more complex and important.
More challenging, creative than ever
Planners must know more about media, which have increased tremendously
over the past ten years, and know how the media plan can contribute to the
overall marketing plan.
And most important, planners must have an almost intuitive sense of
their target’s life so that they can select media that will expose the
advertising at the most opportune time.
Average households watch tv >8 hours/day
CAREERS IN MEDIA PLANNING
A media planning career can prepare you for many different roles,
including that of a media strategist, media researcher or media director at an
agency or client.
Benefits from a career in media
- An understanding of
marketing and media data and analytics.
- An understanding of
marketing strategy.
- An understanding of
the creative process and building of a knowledge base as to what works and
what doesn’t
- Some great lessons in
dealing with others. Everything is either learning, a negotiation, or
both.
- Learning to prepare
an effective written or verbal presentation.
Classes of media
Planners like to separate media into classes as a shorthand for the
capabilities and characteristics that derive from their physical form.
Typically, planners identify:
•
Traditional Media
•
Non-Traditional Media
•
Online Media
•
Specialized Media
TRADITIONAL MEDIA
Mass media such as newspapers, magazines, radio, and television are
especially well suited for delivering advertisements—as well as news,
entertainment, and educational content—to a widespread general (or mass)
audience.
Planners find mass media valuable because:
(1)
Such media are able to deliver large audiences
at relatively low costs
(2)
They can deliver advertisements to special kinds
of audiences who are attracted to each medium’s editorial or programming, and
(3)
They tend to develop strong loyalties among
audiences who return to their favorite medium with a high degree of regularity.
Over the years, traditional mass
media have developed systems and
practices that respond directly and efficiently to the marketing needs of
advertisers.
They get the bulk of the advertising dollars, and they are the meat and
potatoes of media planning. Online and the new digital media are joining them,
but, as of now, they have a long way to go before they will replace traditional
media.
TELEVISION
Television is the traditional mass medium that most people think of
first.
The digital revolution has resulted in a convergence of platforms on
which to watch their favorite programs.
While we may still call it television, “video” is a more appropriate term, with the only
difference coming from the platform on which it is displayed.
Nielsen refers to the “Three Screens” of video:
•
Conventional television
•
Streaming video displayed on a computer screen
•
Mobile that displays video content on a cell
phone
Although there may be little difference to the viewers, there are
substantial differences in the way their audiences are measured, and in the way
advertising is planned and bought.
AN INTRUSIVE CHARACTER
Broadcast media, such as radio and television, are least sought out by
consumers for the advertisements alone.
Broadcast commercials have an intrusive character, breaking into the
play or action of a program and compelling some attention to the advertising
message.
Whether a viewer will or will not watch a particular commercial is
determined more by the ingenuity and value of the message than by an
interesting program.
AD AVOIDANCE
As of summer, 2010, 37% of US homes have a DVR, and most viewers skip
the commercials of programs they have recorded.
However this negative effect on ad exposure affects primarily scripted
high-rated prime time programs, daytime soaps, and late night entertainment.
Very few people record news, sports, most cable channels and syndicated programs.
And even for the highly recorded prime time programs, the impact of
DVR’s has been greatly mitigated by the industry shift to the C3 rating which
reports the audience to the average commercial minute of a program that is
watched at normal speed live or within three days of telecast.
More on C3 in our class on media research.
NEWSPAPERS
Newspapers have news, entertainment, information, and catalog values
for their readers.
A newspaper generally has excellent readership of local news editorial
and advertising material, serving as a buying guide for readers who are looking
for many different kinds of products.
People often check newspaper ads immediately before their regular food
shopping day to find the best grocery bargains.
For frequently purchased products, where prices are prominently
displayed, newspapers can be a very effective selling medium.
SHIFT TO THE INTERNET
Although newspaper circulation is up 7.4% according to the latest
figures (2008 daily circulation: 50.7 million versus 47.2 million in 2000
(Editor & Publisher International Year Book), advertising revenue is down
dramatically due to the shift of classified advertising to the Internet.
As of summer, 2009, ad revenue to local newspapers was 12.0 billion
down 2% from$12.2 billion in 2000
(source: Nielsen Monitor-Plus).
Newspapers remain viable
Flat revenue after ten years of rising costs has forced bankruptcies,
editorial staff cutbacks, reduced publishing days and other problems.
Despite this, newspapers remain a viable media option that continues to
offer good value to advertisers.
Question
What are the top two categories of marketers according to spending in
Newspaper advertising?
Answer: Retail, Auto
MAGAZINES
Newspapers are relatively untargeted mass media. Magazines, on the other hand, are much more
selective in their ability to target advertising exposure.
Some, such as fashion, home and special interest publications, are
bought as much for their advertising as for their editorial matter.
Other more general interest publications, such as newsweeklies,
personality and sports magazines, appeal to readers who are looking for
interesting articles and stories rather than product information
Example of magazine categories
Women’s Service/Lifestyle
>
Broad coverage of women’s issues
•
Family Circle, Ladies Home Journal, Woman’s
Day, Oprah
Fitness/Health
>
Focuses on body image, health, diet, exercise,
etc.
•
Fitness, Shape, Self, Health, Prevention
Epicurean
>
Highlights cooking, leisure, travel,
entertaining, etc
•
Bon Apetit, Gourmet, Cooking Light
Sunday Supplements
>
Timely topics covered
•
Parade, USA Weekend, American Profile
Question
What are the top five magazines according to circulation?
Answer: People, Better Homes & Gardens, Readers Digest, AARP,
National Geographic
Out of home
•
Billboards are oldest form of traditional media.
•
Reach consumers before they enter a retail
store,
•
Provide reminder advertising
•
Proven to create broad immediate brand awareness
of new products.
Measurement
The medium has long suffered from inadequate measurement.
The Traffic Audit Bureau, using
GPS technology, aims to replace the old traffic count with modern measurement
that they hope will allow the medium to be planned in a way similar to
broadcast
WHAT’S OUT THERE?
Posters (30 sheet, 8 sheet),
Painted Bulletins
Transit: Bus/Bus Terminals, Commuter Rail, Subways
Street: Phone Kiosks, Taxis,
Painted Walls
Aerial: Sky Writing, Sleeve
Towing, Blimps
NON-TRADITIONAL MEDIA
Traditional mass media all engage in one-way communication—from the
source to the viewer/listener/reader.
Almost any other innovative way of delivering ad messages to consumers
is considered a nontraditional medium.
The most commonly used non-traditional media include television screens
in airport waiting areas, elevators, the top of gas pumps, in doctor’s offices,
and any other place where a video screen will display content to the public.
Non-traditional media also include
posters in health-clubs, signage on a golf course, banners at public
events. Other locations, public restrooms, the floor of grocery stores
Difficult to evaluate
There are measurements but not continuous.
Sponsored measurements so bit less objective
ONLINE MEDIA
The proliferation of online media options in the last ten years
justifies its own classification.
It includes any communications medium where there is a real-time
interaction between the user and the
content producer via the Internet.
Online media content is accessed with a web browser or device
functioning as a web browser.
So this includes conventional websites viewed on a personal computer,
streaming video, social media such as Facebook or Linked-In, Search Engine
Marketing (SEM) with Google, BING, etc., and web-enabled cell phones.
41% of U.S. internet Population has visited a social networking site
same as for traditional media,
two schools : integrated vs
specialized
Integrated ONLINE MEDIA
Simply another medium to be planned by the traditional media planning
group.
The downside of this approach is that online media and measurement
tools change so rapidly that it takes
full-time involvement to stay current. In the online world, six months is a
long time.
Separate ONLINE MEDIA
Create a separate online
Outsource the planning
SPECIALIZED MEDIA
Special-interest consumer magazines appeal to specific reader interests
such as skiing, money management, photography, or antiques.
Niche media: These magazines are read as much for their advertising as
they are for their editorial content.
B2B
A large category also exists to meet the specialized needs.
(physicians, wholesalers etc)
These media take the form of publications that contain editorial matter
pertaining to the specialized market, but they also include
trade shows, convention exhibits, cassette tapes.
Other specialized media:
handbills, direct mail, car cards that appear on buses or trucks, free-standing
inserts in newspapers (FSI).
Another specialized medium is the catalog.
not looked at with the same frequency as are mass media
Serve as shopping guides
One form of catalog is the telephone book
Plumbers, for example, might justifiably use telephone book advertising
exclusively, because plumbers are not usually called until an emergency arises.
On such occasions, the consumer will search ads in the Yellow Pages to
find a plumber but probably will not notice such ads at any other time.
The rise of the Internet and sources such as Craig’s List have severely
impacted the Yellow Pages and newspaper classified advertising.
PRINCIPLES FOR VEHICLE SELECTION
Trade of between largest audience reach & cost
It’s media planner’s responsibility to find a medium
- With an optimum
amount of frequency (or repetition)
- At the lowest cost
per thousand prospects reached (cost efficiency)
- With a minimum of
waste (or nonprospects), and
- Within a specified
budget
* Of
all the media decisions, one of the most important is selecting individual
vehicles. Planners tend to select one or more vehicles that effectively reach an
optimum number of prospects:
Audience Measurement for each medium
u National
TV:
u people’s
meter (w/ 5,000 homes)
u Nielsen
Media Research
u Who,
what, how long, when
u Local
TV:
u Diary
in all 210 DMAs (Designated Market Areas, “TV markets”)
u Diary
+ meter in top 53 DMAs
u Arbitron
and Nielsen
u DMAs:
a group of counties that get the majority of their TV viewing from the same
home market. (e.g., Baltimore DMA)
u Radio:
u Diary
in 270 radio markets
u Arbitron
PPM (portable people meter)
u Magazines
u Recent-reading
techniques w/ in-person interview and a long questionnaire about their product
use
u Mediamark
Research Inc. (MRI)
u Newspapers
u Yesterday
reading (“Which NP did you read yesterday?” --- typically use circulation
figures)
u ABC:
Audit Bureau of Circulation
u Audits
and reports the circulation of various publications
u Internet
u Use
national sample of 60,000 respondents
u Measure
the number of visitors, how long people stay in each page, how far they go, how
many times they return
u Nielsen/NetRatings
u ComScore
u Out-of-Home
u the number of cars passing each billboard on
the average day (“daily circulation”)
u Traffic
Audit Bureau
MEASUREMENT BASICS
u Ratings
u Represents an estimate of the audience that
has viewed a program or has tuned in to a program during a specific time period
u Percentage
of TV households viewed a particular TV show or radio program
u
u 
u HUT
(Households using Television)
u The
total percentage of homes in a market that are watching television at a given
point
u Number
of HUT will be the same throughout a day?
u Share:
The percentage of HUT (TV using homes) tuned to a particular program
u more accurate picture for TV viewing audience
data?
u rating is the major criteria that the
advertising and broadcasting industries use in most cases.
Determining Relative Cost of
Media-Print
Cost per thousand (Cost per Mille CPM)
* An important
decision in the development of the media strategy is estimating the relative
cost of advertising in various media.
The overall objective of the advertiser is to deliver the message to the
target audience at the lowest rate with the least waste. This slide shows how the cost of print media
is calculated. CPM refers to cost per thousand people reached and is calculated
for print media such as magazines by dividing the cost of the ad space by the
circulation and multiplying this amount by 1000.
Determining Relative Cost of
Broadcast
Cost per thousand (Cost per Mille CPM)
* An important
decision in the development of the media strategy is estimating the relative
cost of advertising in various media.
The overall objective of the advertiser is to deliver the message to the
target audience at the lowest rate with the least waste. This slide shows how the cost of print media
is calculated. CPM refers to cost per thousand people reached and is calculated
for print media such as magazines by dividing the cost of the ad space by the
circulation and multiplying this amount by 1000.
MEDIA MATH BASICS
Media requires strong basic math skills and an understanding of the
following concepts:
- Reach
- Frequency
- GRP’s
- Impressions
REACH
Reach is the percentage of the target audience exposed to your message
at least once
Reach can NEVER be over 100% (usually tops out at 97% or less depending
on media used)
FREQUENCY
Frequency is the average number of times a person is exposed to the
message
Reach and Frequency
A. Reach of One Program
Total market audience reached
B. Reach of Two Programs
C. Duplicated Reach of Both
D. Unduplicated Reach of Both
*Summary Overview
Since advertisers have budget constraints they are forced to make trade
offs between reach and frequency. They
must decide if they want the message seen and heard by more people (reach)
or by fewer people more often (frequency). This slide shows a representation of various
concepts associate with reach and frequency.
- Reach
of One Program – total audience reached by one program
- Reach
of Two Programs – total audience reached by two programs (including
duplicated reach)
- Duplicated
Reach of Both – duplicated reach only (those that were exposed more
than once)
- Unduplicated
Reach of Both – total reach less duplication (exposed only once)
Unduplicated reach indicates potential new exposures, while duplicated
reach provides an estimate of frequency.
Most media schedules consider both reach and frequency.
GROSS RATING POINTS (GRP’S)
•
The basic measure of media weight
•
A rating point represents the % of a
target audience reached by a single commercial or issue of a publication
•
GRPs or Gross Rating Points are the simple addition
of all rating points in a media schedule
•
People watch more than one show
•
Exposed to spots multiple times,
•
GRPs can, and usually do, exceed 100
Important to Know - GRPs are expressed as whole numbers….but they
really are percentages
1 GRP = .01
10 GRPs = .10
100 GRPs = 1.00, or 1
Formulas
Reach, Frequency and GRP’s are all interrelated
•
Reach x Frequency = GRP’s
•
Frequency = GRP’s/Reach
•
Reach
= GRP’s/Frequency
Reach
= GRP’s/Frequency
Helpful visual
•
GRPs = Reach times Frequency
•
Frequency = GRP’s over Reach
•
Reach = GRP’s over Frequency
GRPs also may be expressed as a media vehicle’s rating multiplied by
the number of commercial units airing in that vehicle
GRPs = Rating % X number of units
M18-34 rating for SportsCenter on ESPN is 1.8
Purchase 4 units in this program
Total M18-34 TRPs are 7.2 or 7 rounded
Impressions
An impression is a single potential exposure of a member of the target
audience to your ad message
That is, it is an expression of the number of pairs of eyeballs--or in
the case of radio, ears--that will be exposed to the media vehicle
While GRPs are represented as percentages, impressions represent
numbers of exposures.
Impressions are numbers of people, not percentages
Media buyers negotiate pricing based on impressions
Media buyers project the number of targeted impressions a media vehicle
will deliver and determine the cost they are willing to pay per targeted
impression (expressed in thousands)
[cost]/[impressions] = [$500,000]/[8,835] = $56.59
This calculation is a Cost Per Thousand or CPM
IMPRESSIONS EXPRESSED AS GRP’S
Rather than reporting that a spot on American Idol will deliver a
mind-boggling 9,425,000 Women 25-54 impressions, we would say that American
Idol has a 15.0 Women 25-54 rating.
[Impressions]/[W25-54 (Target) Population] = [9,425,000]/ [62,850,000]
= 15% or 15 rating
For a single telecast, the
rating equals the TRPs. For multiple
telecasts, TRPs equal the sum of the ratings for each telecast.
Two spots on this program will deliver a total of 18,850,000 W25-54
gross impressions, or 30 W25-54 TRPs.
Remember: TRPs represent the
total (weekly, monthly, campaign) impressions delivered by a media vehicle,
expressed as a percent of the population.
Another formula
GRPs x Total Target Population =
Impressions
100
GRPs = Impressions X 100
Total Target
Population
“Coverage”
u Number
of prospects delivered by a given medium.
u problematic,
and confusing term since “coverage” means different things for different
media forms
u Expressed
as a percentage of a market population reached by a given medium
u Magazine
u The
number of prospects who read a publication divided by the size of a target
market
u Target
market: women aged 35-49 (25 million)
u Readers
of Magazine A (2.5 million)
u Magazine
A’s coverage will be 2.5/25x100=10%
u High
coverage vs. low composition: can be waste of $
u Magazine
Example: 100 college students preparing graduate schools
u Towson
Univ: 65 college students (high coverage)
u Only
10 students are interested in graduate studies (low composition)
u Newspaper
u Number
of circulation figures as a percentage of the number of households in an area.
u Newspaper
coverage represents potential audience than actual exposure (readers).
u NP
coverage level should be at least 50% in local market for media planning.
u Local
TV and Radio
u The
number of homes with radio/TV sets within the signal area of a given station.
u All households that can receive a broadcast
signal are NOT necessarily tuned to a specific radio or TV station.
u Network
TV coverage:
u Not
that important since “rating” is a major criteria.
u Cable
TV coverage:
u a
percentage of U.S. households that can receive a cable network by any means.
u Internet
Coverage:
u All
members of U.S. households that have access to the Internet at home, work, or
college.
u Out-of-Home
Media Coverage:
u percentage
of the population that passes one or more of these out-of-home media in a given
period of time.
u 100
showing: giving everybody in a target market a chance to see the ad. However,
this doesn’t mean that every single person in a market viewed the ad. GRP is a
duplicated number.
Media math review
Reach = % of universe reached at least once
Frequency = average number of times reached
GRPs = the simple addition of all the ratings in a schedule
Impressions = total number of advertising exposures
CPM = cost to deliver 1,000 impressions
Useful link
http://www.thecab.tv/php/mediaCalc/index.php?id=cab
Useful links
Adweek.com
http://www.mediabuyerplanner.com/
Careers in Media Research
Questions
Frequency is defined as the number of times a member of the target
audience is exposed to the :
A)
Message
B) Media vehicle
C)
Source
“Duplicated reach” means the same person has been exposed to more than
one:
A)
Message
B)
Advert
C) Vehicle
D)
Medium
If an ad promoting the latest Brad Pitt movie is placed on two
televison shows, the total number of people exposed to the ad once is called:
A)
Duplicated frequency
B)
Duplicated reach
C) Unduplicated reach
D)
Effective frequency
E)
Overlapping coverage
Which of the following products will need to maximize reach,
particularly unduplicated reach, to create awareness for the product in as many
people as possible:
A)
Tide detergent
B)
Chanel 5 perfume
C)
Bounty paper towels
D)
Strawberry-flavored Jell-O
E) Band-Aid liquid bandages, a new product
Media Scheduling
Reach continued…
•
Measurement of audience accumulation
•
Audience is counted only once.
•
Measured after exposure, usually not estimation
•
Reach vs Rating and GRPs
•
GRPs can exceed 100% Reach can’t
•
Persuasion or Awareness may take more than one
exposure
•
Unfair to compare apple with oranges. One week
broadcasting rating with the reach of a monthly issue of a magazine.
Difference between Reach and
Frequency
Duplication of Impressions
u GRPs
and GI allow for the duplication of impressions
u Someone
might see more than one ad in your schedule
u Ex.
Survivor and X-Files
u Ex.
multiple episodes of X-Files
u Ex.
multiple ads in a single show
Reach and Frequency
GRPs = Viewers
Counted Once X
Average Number of Times They View
GRPs = Reach X Frequency
Reach is net unduplicated audience
Frequency is average number of exposures
Combining Reach and Frequency
Goals
Reach of an audience is
not sufficient measure of an advertising’s schedule’s strength.
For anyone to be considered part of the reached audience, he or she
must have been exposed more than once.
This theory combines reach and frequency elements into one factor known
as effective frequency.
The Concept of Effective Reach
u How
often does the target audience have an opportunity to be exposed?
u Effective
reach is based on the idea that an advertising schedule is effective only
if it does not reach members of target audience too few or too many times
Three Scheduling Methods
*Relation to text
This material relates to material on pp. 314-316 and Figure 10-16 of the text.
This material relates to material on pp. 314-316 and Figure 10-16 of the text.
Summary Overview
The primary objective of media scheduling is to time advertising efforts so that they will coincide with the highest potential buying periods. This slide shows the three scheduling methods available to the media planner:
The primary objective of media scheduling is to time advertising efforts so that they will coincide with the highest potential buying periods. This slide shows the three scheduling methods available to the media planner:
Continuity – continuous pattern of advertising; every day, every
week, or every month
Flighting – intermittent periods of advertising and no
advertising
Pulsing – combination of the first two; continuity is maintained
but at certain periods advertising is increased.
Use of this slide
This slide can be used to explain the various scheduling options available to the advertiser. The optimal scheduling schedule can be affected by buying cycles.
This slide can be used to explain the various scheduling options available to the advertiser. The optimal scheduling schedule can be affected by buying cycles.
A continuity schedule can be appropriate with food products,
household products and products consumed on an ongoing basis.
A flighting schedule is well suited to seasonal or other
products that are consumed mostly during certain time periods.
A pulsing schedule may be used for products that have little
sales variation from period to period, but might see some increase in certain
times such as cold beverages in the hot summer months.
Scheduling Methods
Continuous: an equal number of ad dollars are invested
throughout the campaign
Flighting: expenditures are varied and even stopped at
intervals. Meaning zero expenditures in some months.
Pulsing: some advertising is used during every period of the
campaign, but the amount of advertising varies from period to period.
Effective Reach in Advertising Practice
u 3-10
exposures during a media-planning period (typically 4 weeks)
u Using
multiple media
u Subjective
factors must be considered
Reach, Frequency, and Continuity Relationships with a Fixed Budget
Index Number
•
Standardized
way of looking at the likelihood of purchase at specific segments
•
Average
is 100, above means more likelihood, below means less
•
Makes
comparisons easier.
Percentage
of users in a demographic segment
Index Number= _______________________________________________
X 100
Percentage
of population in the same segment
Understanding the Market
Selection and Weighting Process
Category Development index
Category Development Index is similar to the BDI, except that it is
based on the percentage of sales of a product category, rather than a brand, in
a given market
Brand and Category Analysis
*Category Development Index
(CDI) which is another index that can be useful to marketers in
determining where to allocate the media budget.
It is computed in a manner similar to the BDI index, except that it uses
information regarding the overall product category rather than for specific
brands. This index uses the ratio of
the following variables:
Percentage of the total product category sales in a given market
Percentage of total U.S. population in the given market
By performing the mathematical calculation shown on the slide, the
advertiser is able to determine the potential for development of the total
product category in a given area.
Use of this slide
This slide can be used to explain the Category Development Index. When this information is combined with the BDI, a much more insightful promotional strategy may be developed. Beginning with the CDI, the marketer can first look at how well the product category does in a specific market area. Then a brand analysis would follow to see how well the brand is doing relative to its competitors. Together this information provides a clearer picture of where to allocate the media budget.
This slide can be used to explain the Category Development Index. When this information is combined with the BDI, a much more insightful promotional strategy may be developed. Beginning with the CDI, the marketer can first look at how well the product category does in a specific market area. Then a brand analysis would follow to see how well the brand is doing relative to its competitors. Together this information provides a clearer picture of where to allocate the media budget.
Understanding the Market
Selection and Weighting Process
Brand Development index
This index measures the number of cases, units, or dollar volume of a
brand sold per 1,000 population.
The BDI is representing sales potential.
The larger the sales in a market relative to population percentage, the
higher the BDI in that market.
* Relation to text
This slide relates to the material on pp. 310-311 and Figures 10-10 and 10-11 of the text.
This slide relates to the material on pp. 310-311 and Figures 10-10 and 10-11 of the text.
Summary Overview
Key questions to be answered in the market analysis stage are to whom shall we advertise, where (geographically) and when should we advertise and should we focus our efforts? There are several indices available to marketers to assist in answering these questions. One of these is the Brand Development Index (BDI) which is shown on this slide. It assists marketers in answering the question as to where to allocate the media budget. The index uses the ratio of the following variables:
Key questions to be answered in the market analysis stage are to whom shall we advertise, where (geographically) and when should we advertise and should we focus our efforts? There are several indices available to marketers to assist in answering these questions. One of these is the Brand Development Index (BDI) which is shown on this slide. It assists marketers in answering the question as to where to allocate the media budget. The index uses the ratio of the following variables:
Percentage of the brand to total U.S. sales in a given market
Percentage of total U.S. population in the given market
By performing the mathematical calculations on the slide the advertiser
would be able to determine the sales potential for the brand in that market
area. The higher the BDI number the
greater the potential that exists in a particular market.
Use of this slide
This slide can be used to explain the Brand Development Index. This index helps marketers factor the rate of product usage by geographic area into the decision of where to allocate their media budget.
This slide can be used to explain the Brand Development Index. This index helps marketers factor the rate of product usage by geographic area into the decision of where to allocate their media budget.
Brand and Category Analysis
High BDI
|
Low BDI
|
|
High CDI
|
High market share
Good market potential
|
Low market share Good market
potential
|
Low CDI
|
High market share
Monitor for sales decline
|
Low market share
Poor market potential
|
Relation to text
This slide relates to material on pp. 310-312 and Figure 10-12 of the text.
This slide relates to material on pp. 310-312 and Figure 10-12 of the text.
Summary Overview
This slide summarizes the use of the BDI and CDI indices as relates to market potential and market share. As the chart shows, high BDI and CDI means there is greater market share and greater market potential. The lower these two indices are, the lower the market potential. Knowing this information helps marketers decide where their ad dollars should be spent to achieve the desired outcome.
This slide summarizes the use of the BDI and CDI indices as relates to market potential and market share. As the chart shows, high BDI and CDI means there is greater market share and greater market potential. The lower these two indices are, the lower the market potential. Knowing this information helps marketers decide where their ad dollars should be spent to achieve the desired outcome.
Use of this slide
This slide can be used to further explain the use of the BDI and CDI indices. The following slide provides more details regarding the implications of these indices.
This slide can be used to further explain the use of the BDI and CDI indices. The following slide provides more details regarding the implications of these indices.
High BDI
|
Low BDI
|
|
High CDI
|
The market usually represents
good sales potential for both the product and the brand.
|
The product category shows
high potential but the brand isn’t doing well; the reason should be
determined.
|
Low CDI
|
The category isn’t selling
well but the brand is; may be a good market in which to advertise but should
be monitored for sales decline.
|
Both the product category and the brand are doing poorly; not likely
to be a good place to advertise.
|
*Relation to text
This slide relates to material on pp. 310-312 and Figure 10-12 of the text.
This slide relates to material on pp. 310-312 and Figure 10-12 of the text.
Summary Overview
This slide provides further insight into some of the inferences based on BDI and CDI data for a given geographic area. Some inferences regarding the market potential for the brand and the category are:
This slide provides further insight into some of the inferences based on BDI and CDI data for a given geographic area. Some inferences regarding the market potential for the brand and the category are:
High BDI/High CDI – good sales potential for brand and product
category
Low BDI/High CDI – category has high potential, but brand isn’t
doing well; determine why
High BDI/Low CDI – category is not doing well, but brand is; may
be a good market in which to advertise
Low BDI/Low CDI – both category and brand are not doing well,
not a good market in which to advertise
Use of slide
This slide can be used to further explain the use of the BDI and CDI data. Knowing this information helps marketers decide where their advertising dollars should be spent to achieve the most impact.
This slide can be used to further explain the use of the BDI and CDI data. Knowing this information helps marketers decide where their advertising dollars should be spent to achieve the most impact.
question
Who
would you target if you were the media planner on the Six Flags Great America
account?
How to read the mri report
There are 223.6 million adults
in the US.
48.6 million adults went to a
theme park in the last year
22% of adults went to a theme
park (48,618/223,555)
 |
There are 108 million adult men
in the US.
48.3% of adults are men.
 |
22.6 million men went to a theme
park last year.
46.5% of theme park visitors are
men (22,627/48,618)
21.0% of men went to a theme
park (22,627/107,966)
Theme park visitors are 4% less
likely to be men than the average adult. (21.0/21.7, also 46.5/48.3)
 |
12.7% of all adults are age
18-24 (28,431/223,555)
17.8% of theme park visitors are
age 18-24 (8,658/48,618).
21.7% of all adults visited a
theme park (48,618/223,555)
30.5% of adults 18-24 visited a
theme park (8,658/28,431).
Theme park visitors are 40% more
likely to be age 18-24 than the average adult (30.5/21.7 also 17.8/12.7)
Theme park visitors are 72% less
likely than average to be age 65+.
Things to consider
MEDIA PLANNING TARGET
•
For broadcast, base on demographics (usually
age/sex) of product users closest to marketing plan target
•
Magazine planning target can be custom defined
product users.
RELEVANT PRODUCT CATEGORIES
•
May have to create your own
•
How is the question asked? What units?
•
Timing -
was the product in broad distribution when survey was in the field?
TARGET AUDIENCE SIZE
•
Small enough to be focused but large enough to
be important
•
Covers substantial volume or opportunity
•
Sample size - at least 50 (no asterisks)
DEMOGRAPHIC SKEWS
•
Look for patterns (best seen in heaviest users)
•
Index over 110 or under 90
•
Consistent picture across demographics
•
Consistent with other research
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