Media Decisions and Planning

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Media Decisionsand Planning
Professor Jacob Hornik
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The Last Screen Left

IMPACT
CLUTTER
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The New media!?
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Media Planning
The Key task of advertising media planners is
to determine the best media schedule (mix and
timing) of advertising exposures for a certain
budget.
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U.S. AD EXPENDITURES BY TYPE OF MEDIA,
1997-2001
change,
1997 1998 1999 2000 2001
() 1997-2001 Newspapers 41,670 44,292 46,648
49,500 44,255 19.1 6.2
Magazines 9,821 10,518 11,433 12,370 11,09
5 4.8 12.9 Broadcast
TV 36,893 39,173 40,011 44,802 38,881
16.9 5.3 Cable TV 7,237
8,547 10,429 15,455 15,536 6.8
114. 7 Radio 13,491 15,073 17,215 19,295
17,861 7.8 32.4 Yellow
Pages 11,423 11,990 12,652 13,228 13,592
5.9 19.0 Direct
Mail 36,890 39,620 41,403 44,591 44,725
19.5 21.2 Business Papers
4,109 4,232 4,274 4,915 4,468
2.0 9.0 Billboards 1,455
1,576 1,725 5,176 5,134
2.4 252.9 Internet 600 1,050
1,940 6,507 5,752 2.6
858.7 Miscellaneous 23,940 25,523 27,571
32,083 29,988 10.1
25.3 TOTAL 187,529 201,594 215,301
247,472 231,287 100.0 27.4
in millions expenditures include all
commissions as well as art, mechanical and
production expenses. Figures for 2000 and 2001
are final at press time, projections for 2002
had not been released.
Source Universal McCann, N.Y.
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Media Selection Process
Media class Decisions (Product/message fit)
TV
Radio
Newspapers
Outdoors
Magazines
Vehicles Decisions (Match target market)
Newsweek
Playboy
Sports Illustrated
60 minutes Movie Tonight show
Placing Decisions
50 sec. spots
30 sec. spots
Cover
Full Page
1/4 Page
Color
B W
Media Schedule
Reach/Frequency
media
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Overview of the Media Decision-Making Process
Objectives
Strategies
Background Inputs
1. Target Market Definition 2. Media Mix 3.
Continuity 4. Contingencies 5. Alternatives
1. Marketing 2. Advertising 3. Media
Research
Integration
Planning
1. Consumer Research 2. Product Research 3.
Market Analysis 4. Competitive Situation
Marketing Mix
5. Product 6. Distribution Channels 7. Pricing 8.
Promotion
Implementation
Constraints and Uncontrollable Influences
1. Internal 2. External a. Competition b.
Economic c. Legal/Cultural
Environment d. Weather/Cataclysmic
Conditions e. Media Environment
Tactics
Evaluation
1. Vehicles 2. Units 3. Estimating and
Costing 4. Scheduling 5. Ordering 6. Bookkeeping

Audience and Market Impact
Media Contribution to Advertising Effectiveness
media
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Which Media Do It Best?
Media comparison
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Profiles of Major Media Types (1)
Medium Advantages Limitations Newspapers
Flexibility timeliness Good local marker
Short life poor reproduction quality
coverage broad acceptance high
believability small pass-along
audience Television Combines sight,
sound, and motion appealing High absolute
cost high clutter fleeting to the
senses high attention high reach exposure
less audience selectivity larger than
life Direct mail Audience selectivity
flexibility no ad comp- Relatively high
cost junk mail image etition within
the same medium personalization Radio
Mass use high geographic and demographic
Audio presentation only lower attention
selectivity low cost than television
nonstandardized rate structures fleeting
exposure Magazines High geographic and
demographic selectivity Long ad purchase lead
time some credibility and prestige
high-quality waste circulation no guarantee
of reproduction long life good
pass-along position.
readership
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Profiles of Major Media Types (2)
Medium Advantages Limitations Outdoor
Flexibility high repeat exposure low
Limited audience selectivity
cost low competition creative
limitations Yellow Pages Excellent local
coverage high High competition long ad
purchase believability wide reach
low cost lead time creative limitations
active search Newsletters Very
high selectivity full control Cost could run
away interactive opportunities
relatively low cost Brochures
Flexibility full control can dramatize Overprodu
ction could lead to
messages run away Telephone Many
users opportunity to give a personal Relatively
high cost unless touch volunteers
are used Internet High selectivity
interactive possibilities Relatively new media
with a low relatively low
cost number of users in some countries
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Out-of-Home Advertising
Outdoor Advertising

• Usually is billboards, or large-format posters.
• Reach consumer in their cars.
• Dominant visual with minimal copy 6 to 7 words.

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• Evidence of effectiveness of such advertising is
  limited but growing.
• - Building Brand Awareness, as well as enhancing
  recall.
• Peripheral Route of persuasion.
• Little to lose and more to gain by using this
  form of advertising.

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• Capturing key visual and audio information about
  a brand and distributing this info to customers
  as videotapes.
• Limited research to verify effectiveness of
  video advertising.

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Digital Product Placement
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SMS Advertising Effectiveness
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How to overcome Spam? Reduce
intrusiveness by
Personalization Soft-sale
approach Anticipated marketing
Limit message frequency
Enhance customer delight

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The Great Promise!

• Permission?
• Relevance?
• Rewarding?

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Value
Reward
(Delight)
Anticipation
Personalization
Future
Past
Present
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Anticipation Marketing
Subscribers expect the notification and recognize
this means of communications as a service
from their operator
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SMS Limitations Intrusive, SPAM issue,
Privacy Ad Agencies Reluctance
Response Rate
Technologies .
.
.
Professionalizm

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The language of the media buyer
Term
What it Means
Reach
The number of different people or households
exposed to an advertisement.
Rating
The percentage of households in a market that are
tuned to a particular TV show or radio station.
Frequency
The average number of times an individual is
exposed to an advertisement.
Gross rating points (GRPs)
Reach (expressed as a percentage of the total
market) multiplied by frequency.
Cost per thousands (CPM)
The cost of advertisement divided by the number
of thousands of individuals or households who are
exposed.
media
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Scheduling Strategies
Continuity
Flighting
Pulsing
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Advertising Repetition Strategies
Level
Rising
Falling
Alternating
Concentrated
Continuous
Intermittent
messages per day
Month
media
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An equal or relatively equal amount of
advertising dollars is invested throughout the
campaign
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Some advertising is used throughout the campaign
but the amount varies from period to period
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The advertiser varies expenditures throughout the
campaign and allocates zero expenditure on some
months
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Illustrative Media Research Methods

• Magazine audience measurement
• Simmons Market Research Bureau
• Mediamark Research, Inc.
• Radio audience measurement
• Arbitron ratings
• Television audience measurement
• Nielsen people meters

media
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INTERNET ADVERTISING
To E or not to be!
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Anne Busquet/American Express
Not Age of the Internet Is Age of
Customer Control
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Internet Advertising -- Categories

• 1. Banner Ads (53) Usually appear across the
  top of a web page Entice users to enter an
  advertisers Website.
• 2. Sponsorship Ads (30) Hybrid ads in popular
  sites that consumers visit frequently The deal
  between Yahoo and Amazon
• 3. Interstitials Ads (6) Pop up ads while
  users wait for a
• requested Web page to appear
• 4. Classified Ads (4) Similar to the
  (newspaper and
• yellowpages) classified ads Pull medium.
• 5. E-mail Ads (2).
• 6. Others (5) Developing forms of ads

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Internet Advertising -- Advantages

• Versatility -- Banners, pop-ups, audio, video,
  animation, etc
• Boundless -- No time and place boundaries
• Nonintrusive -- Relatively a medium of voluntary
  exposure
• Customization -- of content and potential for
  one-on-one advertising
• Upscaled Users -- Young, well-educated and earn
  high income

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Internet Advertising -- Advantages

• Low Separation -- Between site content and
  commercial content
• Flexible -- Information can be quickly and easily
  changed and updated.
• Pricing -- e.g. click-through pricing system
  (counter).
• Interactivity -- The most distinctive
  characteristic of Web advertising.

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Internet Advertising -- Disadvantages

• Low Click-Through -- Usually in the 2 range
  research shows that it is dropping
• Cognitive Medium -- Less suited for emotional
  advertising
• Customer Dominated Medium -- The user owns the
  Back Button.
• Radical Fragmentation -- Only top 0.01 of
  Websites generate sufficient revenues from
  advertising also, create media mix problems

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Internet Advertising -- Disadvantages

• Measurement -- Ad efficiency measurement problems
• Security and Ethics -- Privacy, security and
  confidentiality of users can be abused
• Attitude -- toward net advertising is becoming
  less favorable

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Internet Advertising -- Interactivity

• The degree to which a person actively engages in
  advertising
• processing by interacting with advertising
  messages and dvertisers.
• Person-Message Interactivity Can control the
  message by
• selecting, searching, editing, and modifying the
  form and content of
• message. Users can manipulate and customize the
  messages by
• altering colors, shapes, graphics, sounds and
  order of message
• contents.
• Person-Advertiser Interaction Consumers can
  provide feedback
• or personal information to the advertiser. The
  goal is to generate
• more sales through relationship (marketing)
  building.

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The 2Is Streamline Advancement Through The Stages
One Seamless Experience
2Is
2Is

• Personalized Website
• Loyalty program
• Permission e-mails
• Individualized offerings

Banner Ad (to promote awareness)
Website
User can setup the webpage according to personal
preferences, register for e-mails, give feedback,
make a purchase.
User clicks on banner to find out more.
Awareness
Exploration
Commitment
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• - How many people clicked through a
  particular web ad?
• - What are the demographic characteristics of
  these people?
• How many visited a particular Web site?
• What actions were taken following
  click-throughs or site visitations?

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• 1) Log File Analysis
• 2) Surveys of Sample Users Using Recall
  Measurement
• 3) Electronic Measurement of a Sample of
  Internet Users

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LOG FILE ANALYSIS -Examining server log
files. -Tracks machines. -Provides no
information about the people who request
particular files.
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Surveys of sample users using recall
measures - Using survey methods to obtain
information about consumers Web-site usage
activities along with demographic
psychographic characteristics.
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• Surveys of sample users using recall measures
• Problems
• Memories are fallible
• People overstate their usage of popular Web sites
  and understate usage of less-popular sites
• People often provide responses that put
  themselves in positive light

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• Electronic measurement of a sample of sample of
  users
• Media Matrix Nielsen Media Research
• -Software tracking meters

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Online Aids For Consumers Purchase Decision
Making(HaublTrifts. Marketing Science, 2000)
Two interactive decision aids 1. Recommendation
Agent Generates a personalized list of
recommended alternatives. Reduces consumers
search efforts for product information,
decreases the size but increases the quality of
their consideration sets, and improves the
quality of their purchase decisions. 2.
Comparison Matrix Designed to help consumers
make in-depth comparisons among selected
alternatives. Has also a favorable effect
on some indicators of decision quality. Summary
Interactive decision aids will drastically
improve the way in which consumers search
for product information and make purchase
decision.
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Internet Advertising -- Important Terms

• Visit An occurrence of URL request for a site
  by one unique visitor.
• Unique Visitor A single identifiable person who
  visits a site(s) during a measurement period.
• Total Traffic (of a site) Sum of all visits (to
  a site) during a measurement period.
• Reach (of a site) Percentage of unique visitors
  who visited a website at least once during a
  measurement period.
• Frequency (of a site) Average number of times
  of visits among those who visited a site during a
  measurement period.

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Banner Advertisement Effectiveness
Research Shows (e.g. Chang-HoanLeckenby, 2000)
1. Simple exposure to a banner ad without
clicking it will not influence peoples initial
attitudes and purchase intentions toward the
brand. 2. People will have a more favorable
attitude toward the brand and higher purchase
intention, if they click the banner ad and like
the target ad. 3. People will experience
negative brand attitude and purchase intention if
they click the banner ad and dislike the target
ad.
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Research Organizations on Web Ad Measurement

• Academic Institution
• Advertising Department at the University of Texas
  (www.utexas.edu/coc/admedium)
• Marketing Department at Vanderbilt University
  (www2000.ogsm.vanderbilt.edu)
• Stanford Persuasive Technology Lab
  (www-pcd.stanford.edu)

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Research Organizations on Web Ad Measurement

• Private Companies
• Nielsen/IPRO (www.ipro.com)
• Media Metrix, the PC Meter Company
  (www.mediametrix.com)
• RelevantKnowledge (www.relevantknowledge.com)
• NetCount (www.netcount.com)
• Internet Advertising Bureau (www.iab.net)
• DoubleClick (www.doubleclick.net)

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Internet Media -- Functional Differences

• Conventional Media serve as a Communication
  Channel
• Internet (new) Media function as Communication,
  Transaction, and Distribution Channels