Advertising Budgeting, Media, and Media Planning


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Advertising Budgeting Media and Media Planning

• Mkt 340
• Prof. Bill White

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The Advertising Budget

• Setting the Budget
• Percentage of Sales
• Payout Plan
• Competitive Budgeting
• The Task or Objective Method
• Whats the objective
• What type and how much media needed
• Can we afford it
• Arbitrary
• Administering and Protecting the Budget

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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

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Examples of Nontraditional Media

• ABC Inflight Airplanes
• ActMedia Supermarkets
• Aislevision Supermarkets
• Aladdins 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

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Sample of a Syndicated Media List

• MAGAZINES RADIO NETWORK TV CABLE NETWORKS
• Allure Adult Contemporary American
  Gladiators Arts Entertainment
• American Baby All News Americas
  Funniest.. American Movie Classics
• American Health All Sports Americas
  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.

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Organization of the Media Function

• Media planner
• Media buyer
• Media researcher

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Important Trends in Media

• Convergence
• Interactivity
• Creativity
• Optimization

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Key Media Terms

• Media plan document that establishes how media
  will be used to disseminate an advertisers
  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.

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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 1000 members of target audience
  with media vehicle(s) or plan.)

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CPM Formula and Example
Cost
X 1000
CPM
Audience
Which is more cost efficient on a CPM basis
A-- 30 TV Commercial in Friends
250000
X 1000 12.50
CPM
20000000
B-- 30 TV Commercial in Monday Night Football
300000
CPM
X 1000 10.00
30000000
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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

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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
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The Difference between Reach and Frequency
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Media Scheduling (continued)

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

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

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

100
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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.

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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.

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Types of Media Plans

• Geographic
• Local spot key market
• Regional
• National
• International
• Selective
• Combination

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Sample Flowchart of a Media Plan
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Evaluating the Media Plan

• Follow upgetting 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