Media Strategy

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Media Strategy
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Media Strategy

• Which media should we be in?
• What is the minimum effective frequency?
• How should one allocate advertising spend over
  time?
• Which media vehicle(s) should we use?

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Media Strategy

• Which media should we be in?
• Current practice
• Compare the characteristics of each medium with
  the characteristics necessary for achieving the
  desired communication objective(s)
• For example, if brand recognition is the key
  awareness objective then the medium must have a
  visual component. Thus radio is unsuitable and
  newspapers have a limited scope
• For generating recall awareness, we need high
  frequency and, thus, magazines may not be
  suitable as they cannot deliver the requisite
  frequency

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Media Strategy

• The current approach only looks at traditional
  media
• Integrated marketing communications seeks to
  integrate across all contacts
• Focus is on generic characteristics of media and
  their relevance for meeting the needs of the
  creative approachinward looking
• Need an approach that takes into consideration
  the preferences of the customer

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Media Strategy

• Phase 1
• Conceptualize exposure broadly as customer
  contact
• Identify a wide and potentially important set of
  contacts

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Beer Market in France
Media Strategy
Source Integration (1998)
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Media Strategy

• Phase 2
• Value potential contacts from the customers
  perspective
• Three key concepts
• Attractiveness
• Informativeness
• Credibility
• Contact value from the customer perspective
  creates a common customer impact metric across
  all brand contacts
• CPM is an input metric limited only to mass
  media. CCV (cost per contact value) is an output
  metric common across all brand contacts

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Beer Market in France
Media Strategy
1st Quartile
2nd Quartile
Source Integration (1998)
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Media Strategy

• Phase 3
• Assess how strongly the different brands in the
  category are associated with each contact

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Media Strategy
High Contact Value
Battlefield Contacts
Leadership Contacts
Maximize Appropriation
Dominate Or Defend
High Association with Category
Low Association with Category
Ubiquity Contacts
Potential Contacts
Disinvest
Invest In Future Gains
Low Contact Value
Source Integration (1998)
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Media Strategy

• Phase 4
• Select contacts within each category on the basis
  of fit with brand position

The medium is the message. Marshall McLuhan
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Media Strategy

• PG has implemented such a system globally
• Faced a budget cut of 20
• Review of contacts revealed
• Weakness of TV
• Packaging not effective
• Underutilizing recommendation by professionals
• Improved packaging
• Shifted resources to recommendation by
  professionals
• Reduced TV spend
• Increased volume by 10 in mature category with a
  reduced marketing communications budget

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Media Strategy
Reach
Budget
Number of cycles
Frequency
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Media Strategy

• Minimum effective frequency
• Time frame
• Threshold

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Media Strategy
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Media Strategy

• What are the determinants of MEF?
• Communication objective
• Target audience
• Competitive position
• Vehicle power
• Power of creative

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Media Strategy

• Different ways of determining MEF
• Rules of thumb
• Adjustments for various factors based on prior
  experience

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Media Strategy

• Different ways of determining MEF
• Rules of thumb
• Adjustments for various factors based on prior
  experience
• Share of market/share of voice analysis

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Media Strategy
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Media Strategy
Source www.news-record.com/advertising/advertisin
g/ratio.html
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Media Strategy
Share of Voice Premium Needed by a Follower
Brand to Maintain Market Share
Source Jones (1990)
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Media Strategy
Large Brands (gt15 Share)
Degree of Underinvestment ()
Objective
Source Jones (1990)
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Media Strategy
Implications for Ad Spending
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Media Strategy

• Different ways of determining MEF
• Rules of thumb
• Adjustments for various factors based on prior
  experience
• Share of market/share of voice analysis
• Analysis of historic data
• Market experiment

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Media Strategy
Relationship Between Awareness and GRP
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Media Strategy

• How to allocate advertising spend over time?
• New products
• Blitz
• Wedge

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Media Strategy
EXAMPLE LAUNCH OF SOAP BRAND
TV GRPs
SHARE OF VOICE
Source Ogilvy and Mather
TIME
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Media Strategy
Recent Launches
Source Ogilvy and Mather
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Media Strategy
Competitive Activity
Source Ogilvy and Mather
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Media Strategy

• How to allocate advertising spend over time?
• New products
• Blitz
• Wedge
• Reverse wedge

• Existing products
• Regular fmcg

• Long purchase cycle, long decision time

• Long purchase cycle, short decision time

• Seasonal priming

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Media Strategy

• Budget allocation
• Short term adjustments
• Need to look at MEF in a dynamic way

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Media Strategy

• Repetition and wearout

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Media Strategy

• Repetition and wearout
• How to decide when to refresh the campaign?
• Zapping data
• Market experiments

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Media Strategy
Probability of Zapping
Number of Exposures
Source Siddarth and Chattopadhyay (1998)
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Media Strategy

• Which media vehicle(s) should we use?

Source Assael and Poltrack (1991)
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Media Strategy
Source Assael and Cannon (1979)
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Media Strategy

• Are there qualitative media factors that affect
  vehicle selection?
• Editorial content

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Media Strategy

• Are there qualitative media factors that affect
  MEF?
• Editorial content
• Involvement

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Media Strategy

• Are there qualitative media factors that affect
  MEF?
• Editorial content
• Involvement
• Mood

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Media Strategy

• Are there qualitative media factors that affect
  MEF?
• Editorial content
• Involvement
• Mood
• Theme

Source Goodstein and Kalra (2000)
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Media Strategy

• Are there qualitative media factors that affect
  MEF?
• Editorial content
• Immediacy of need

• Level of clutter

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Media Strategy
Source Kent and Allen (1994)
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Media Strategy

• Are there qualitative media factors that affect
  MEF?
• Editorial content
• Immediacy of need
• Level of clutter
• Position within medium

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Media Strategy
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Media Strategy Summary

• Use consumer response to media as criteria to
  select the media to be used
• MEF should be determined from consumer data
  rather than gut feel
• Need to achieve a critical duration of spending
• Use direct matching to select specific
  vehiclesconsumer driven
• Consider qualitative aspects of vehicles from a
  consumer perspective