channel planning exam 2

Reach Formula

# of persons reached / # persons in universe x 100

What is the ratings formula?

# of viewer / HH watching a program ____________________________________________________ x 100 #HH or # person in universe

What is the magic number 3 frequency?

(1970s -1980s) Frequency 1: What is it? Frequency 2: What of it?/ So what? Frequency 3: Aha!/ Nay! (Start to process information to decide whether or not the message is relevant or interesting)

databases to help media planners determine target demo information

- MRI+ - Simmons National Consumer Survey (NCS)

Late Fringe TV Hours

11:00-11:35 pm

Share Formula

2 formulas : # of HH / Viewer watching a program _______________________________________________________ x 100 household using television Rating/HUT x 100

average frequency formula

2 formulas : GRP/Reach gross impressions/reach

Consumers do not retain an ad message until they have seen it at least ___ times

3

Early Fringe Hours

5-6:30pm

Prime Access TV Hours

6:30-8:00pm

Primetime TV Hours

8:00-11:00pm avg rating : 7.7 cost/:30 ($000) : 120.0

Daytime TV Hours

9 am - 5 pm. avg rating : 4.0 cost/ : 30 ($000) : 20.0

Segment audiences by ...

demographics activities and habits audience involvement influentials vs followers

What are the four components of media tactics?

description, cost, impressions, and rationales

4 Components of Media Tactics : Description

details what you are recommending, vary by the medium chosen.

Types of digital media and goals for Loyalty in purchase funnel model

direct email paid social

Types of digital media and goals for Consideration in purchase funnel model

display advertising mobile and/or tablet in-app consumer review/directories

100 GRP does not equal 100 reach because GRP includes ______ and is a # of impressions equal to the universe

duplications

Media Strategies

Give the answer to how you would achieve the media objectives; hould match specifically to them; refers to categories of media

GRPs : What is it? How do you calculate it?

Gross Rating Points : the sum of the ratings for a certain period of time You calculate it by adding all ratings together.

Television Ad Rates (By Guarantee) : Full Rate

Guaranteed to air on particular time (expensive)

Weaknesses of Earned Media

earned social media relies on consumer participation, and there are no guarantees that all consumers will love your brand all the time. in addition, earned media has many hidden costs that sometimes the client is challenged to recognize. creating earned media takes time and effort as well as investment in internal and external social media content generation and development.

Cost per View

efficiency of video ad (lower the better)

Network Television Ad Rates (by availability) : Upfront Market

full season advertiser has to commit to buy ads for a full season in advance. Fall (Sep.) shows bought in May/June Buy full network season (Sep -Mid-Apr) Popular programs can be purchase at a relatively inexpensive cost Accounts for 80-85% of all network prime time buy Guaranteed audience ratings

Targeting Methods : Lifestyle and Life Stage Segmentation

gain insight on your target audience by looking at their lifestyles and life stages. tools for assessing lifestyles and life stages are PRIZM and Spectra. Both of these research tools define lifestyle largely by where you live and how affluent you are. consumer patterns of behavior are sometimes dictated by where you are in your life.

Ratings Formula

impression/universe x 100

How to calculate index for digital media based on two percent vertical information?

index : % demo in target group/ % demo in base population x 100 percent vertical in target/percent vertical in total x 100

Over the Top (OTT)

is rising OTT means contents and channels delivered through Internet rather than through traditional cable/broadcast provider

Strengths of Earned Media

its "free" in the sense that clients are not "billed" for the earned media placement. it is fairly transparent in that the agency and client do not have to rely on ratings services to measure the impact. many consumers trust earned media more than they. trust a traditional message. in particular, people trust the recommendations from their friends rather than a traditional tv ad.

What are three main components of the Ostrow Model?

marketing factors that affect frequency copy factors that affect frequency media factors that affect frequency

Media ___ outline where you want to go. Media _____ outlet how to get there. Media _____ provide the specific details of how to get there.

objectives, strategies, tactics.

Types of digital media and goals for Conversion in purchase funnel model

paid search location-based targeting consumer review/directories

Types of digital media and goals for Advocacy in purchase funnel model

paid social

How do you calculate percent vertical of target?

percent vertical of target : specific media target audience/base 18+ target audience x 100

How to calculate percent vertical of total?

percent vertical of total : total base audience of specific media/base 18+ audience x 100

Impressions (mostly _____, _______ _____, ________) usually CPM

print, social media, Internet

Difference between Ratings and Share

rating is those who have operating sets (on or off) and share uses the population in which TV is actually on at that moment.

HUT/PUT

refers to the TV HH with a set turned on as a % of all TV HH; portion of HH using TV during a specific time expressed as a % Portion of household/audience using TV /medium during a specific time expressed as a percentage (NO % sign)

What does the quintile index mean?

represents either the heaviest/lowest usage for the group.

Impression

single person or HH exposed to medium (TV, radio, magazine) during single minute, quarter hour of the program; opportunity to see; no guarantee exposure of the ad. ex : # of people who are tuned in to Desperate Housewives but did not see the ad during the commercial break.

Types of digital media and goals for Awareness in purchase funnel model

streaming video/pre roll gaming streaming audio display advertising

CPM

the cost of reaching 1000 impressions; reported as $$ and cents; used to compare one media vehicle or medium to another

Ratings

the persons who see or hear a particular program, station, or network expressed as a % of all TVHH or operating radio receivers, whether they have a set on at that moment or not; portion of home/audience that is viewing a particular program based on universe

A website with a lower cost per click (cpc) rate means ...

the website is efficient in driving traffic

Share

those persons tuned to a particular program station or network as a % of all TVHH with sets turned on or HUT; measure of program popularity that is not affected by seasonality Portion of household/audience tune in to a specific program based on homes whose TV/medium is turned on (NO % sign)

databases to help media planners determine behavioral information

tools : MRI+ (TCU library), Simmons, case study data, primary research conducted by team Google Trends search, use info from seasonality & timing Mintel, other business databases (TCU library)

Common Key Performance Indicators (KPIs of Digital Media) : Click Through Rate

total clicks/total impressions x 100

Cost per Click (CPC) formula

total cost /total clicks

Cost per Action (CPA Formula)

total cost/total number of actions

What are the three different broadcast TV advertising rates (market) by availability?

upfront market scatter market opportunistic market

4 Components of Media Tactics : Cost

All tactics include cost. Costs are provided at the category level and at the tactic level. The cost for each element in the media plan should reflect the agency compensation agreement.

4 Components of Media Tactics : Impressions

All tactics will include the amount of the target reached. Showing impressions in the media plan for each tactic helps the marketer understand the target for which the impressions are calculated.

What is Spot Advertising?

Any advertising in selected geographic area(s) NOT available in national scale.

Channel Planning through Purchase Tunnel

Awareness : TV, Radio, Print, PR, Email Consideration : Digital Display, Video, Print, Social, Email Conversion : SEO, SEM, Email Loyalty/Advocacy : SEO, SEM, Retargeting

Network Television Ad Rates (by availability) : Opportunistic Market

Last minute buy left over slots of upfront and scatter Rates are usually most favorable (cheaper) Spot can be purchased a day before Less choice of program

Secondary research resources (database) to help you develop media mix strategies

MRI+, Mintel, ect.

Cost per Click (CPC)

Measure of efficiency (lower the better) Where payment of the ad only applies if the brands link has been clicked On

Difference between Media Strategies and Media Tactics

Media strategy is the broad strategy of using media, where tactics are the specific media vehicles.

What are the most common mistakes in MFP Flowchart? (not manually including list of vehicles)

Missing list of vehicles under each medium

TV Industry Trends

Mobile Users and Internet Users increasing TV Viewers slightly decreasing Age 65+ spend more time Live/DVR + time-Shifted TV

Factors Influencing Media Plan Budget

Monthly or quarterly reach and frequency goals Timing strategies Cost of media & size of target audience, # of spot markets Competitors move (competitive media spending analysis)

Click Through Rate (CTR)

Most commonly accepted metric to determine the effectiveness of a website at driving brand awareness. It is logical that a high CTR rate (i.e., high number of people clicking per each impression served) indicates that a campaign has a positive impact.

Brand Contact Audit Chart

Conducting research about brand contact points. Exploring current and prospect brand contact/touch points-Used as primary research tool to develop ... a) target consumer insight b) media strategies/tactics c) qualitative rationales

Personal Media Network (PNM) Grid

Conducting research about individual's media consumption pattern. primary research tool to understand your target's daily media usage pattern.

Channel Planning through the eyes of the consumer

Consumer Journey Map : Instead of using pre-determined sequence of consumer behavior (e.g. Purchase Tunnel), develop a new sequence that works better for your target consumer and product category (e.g. product consumers already knows or using it) Developing the new sequence is based on your research! Inspiration --> Research (Active) ---> Shopping ---> Purchasing ---> Doing

TRPs : What is it? How do you calculate it?

Target Rating Points : are the same thing as Gross Rating Points. The term TRPs is often used to refer to GRPs for a specific demographic, and reserve GRPs for households. we apply concepts of GRP to TRP when we are more concerned about our target audience than the overall audience.

Effective reach level

The percentage of the audience reached more than three times.

What is effective frequency?

The point at which the advertising frequency becomes effective or motivating. The desired minimum frequency level at which you want to advertise.

Frequency

The potential number of times people (or homes) are exposed to an advertising message over a given period of time (i.e. How many times we wish to reach target audience with our message?) Usually reported as an average (frequency)

4 Components of Media Tactics : Rationale

The rationale for a media tactic focuses on how it reaches the target, how cost efficient it is, and how it may benefit the brand through association.

TV HH

a household that has an operating TV set; the set may be on or off, because the term "operating" means that the receiving set works.

What is the Ostrow Model?

a theoretical model for estimating effective frequency. ostrow's model assumes that 3.0 as a benchmark or starting point for estimating frequency.

Ratings (_________ _____) usually CPP

broadcast media

Television Ad Rates (By Guarantee) : Preemptive Rate

cheaper than full rate but your spot can be taken away by other advertiser who will pay for more than you (not guaranteed).

Targeting Methods : Generations as a Target

consumers of the same generation are connected not only by age but by the various milestones they have reached together. some unifying characteristics can include music, fads, inventions, politics, and social movements. can be a very effective targeting approach. Members of these groups are connected not only demographically, but also emotionally and historically.

Common Key Performance Indicators (KPIs of Digital Media) : Conversion Rate

conversions to sales/total clicks x 100 varies by denominator

CPP

cost of reaching one rating point; reported as whole dollars

CPM Formula

cost/impressions x 1000

CPP Formula

cost/rating points total cost/total GRPs

Late Night TV Hours

After 11:35 pm avg rating : 3.0 cost/:30 ($000) : 120.0

How do you use the Ostrow model to determine/calculate the effective frequency level for your media plan?

Begin with the 3.0 benchmark and add or subtract from it based on the sum of the three parts. sum the totals for each of the parts to get three subtotals. see column of numbers on left, with subtotals. sum the results from the three subtoals.

Primary research tools to help you develop media mix strategies

Brand Contact Audit chart & Personal Media Network (PMN) Grid

Brand Communication Audit & Its Usage

Brand contact point (touch point/consumer aperture) The opportunities a brand has to come in contact with its consumers and the impressions it creates during these contacts. used as primary research tool to develop: Target consumer insight Media strategies/tactics Qualitative rationales

Network Television Ad Rates (by availability) : Scatter Market

Buying quarterly Typically buy quarterly (for advertiser who is unable/unwilling to buy a full season) Buy in September for the last quarter (October-December) Can be more expensive than upfront More flexible buy (don't have to commit full season) Based on the rules of supply and demand (high price when demand is high) Ratings are not usually guaranteed

Strengths of Owned Media

Control : allows you to control the message. there is no other media filter or context, so the message you deliver is a pure brand message. Timely : can be very timely. you can respond to a situation or consumer at any moment. you can be very topical and relevant. Lasting : allows you to have a lasting message. unlike other media, where you message is fleeting, you can maintain the same message for a long period of time. Personal : can be very personal and flexible. you can develop different messages for different targets. it offers he opportunity to be highly targeted and relevant to your consumer base. you can speak to consumers on a one-to-one basis. Cost Efficient : can be highly cost efficient. typically doesn't involve paying for media, so costs can be relatively low compared to other media choices.

What is needed for any media buying outside of MFP? What are the basic approaches to get this information?

Cost of each vehicle & Impression generated from each vehicle 1. Search (web search) impression related information (users of each vehicle of interest). 2. Estimated users of each vehicle or contact point will be the impression generated from each vehicle or contact point.

Television Industry Structure : Network

Distribution Level : (Broadcast, Cable, Satellite - sell ads = reps) ; buys exclusive rights to things; ex: ABC & Grey's Anatomy; after showing, sells rights back to syndication. Sell ads for national spot TV channel : ABC, NBC, ESPN, etc. Cable network = only have one channel of programming.

Weaknesses of Owned Media

Not Trusted : owned media is obviously providing a company or brand message. consumers know this so they may be skeptical of the message. this is particularly true when brands are engaging directly with consumers. if the brand says one thing and behaves differently, there is the potential for trouble. Time Consuming : owned media may not cost a lot in terms of media outlay, but it can be time consuming. this is especially true of manning digital assets such. as a fb page or twitter feed. developing continuous content takes time and dedicated people to do it. Lack of Consistency : owned media can have many owners. that can lead to a lack of consistency in the brand's voice.

Television Industry Structure : Local

Outlet level : (local affiliates) ; where the consumer might buy the product from; creates their own content; ex: news Sell ads for local spot KTVT = CBS affiliate in DFW

Reach

Percent of different homes or persons exposed at least once to an advertising schedule over a specific period of time. Number of different people/HH in the audience you try to communicate with advertising. although it is expressed as a % sign, no % sign for reach.

Rating

Portion of home/audience that is viewing a particular program based on universe (medium/vehicle's reach) NO % SIGN

Television Industry Structure : Syndication

Production level : (WB, Universal, Fox) Where product placement occurs; sell the rights to air the first showing of popular TV programs, etc. Sells ad for rerun programs such as Wheel of Fortune or Oprah.

How to calculate GRP with just reach and frequency?

REACH % x AVERAGE FREQUENCY

Daypart

Ratings by time of day.

Common Key Performance Indicators (KPIs of Digital Media) : Action Rate

Ratio of # of any actions (filling out a form, buy)

Relationship between GRP and Reach

Reach does not count duplication, GRP does.

Types of secondary and primary research resources to develop timing and scheduling strategies

Strategy: Specify your strategy by different objective/time frame based on your research about target's lifestyle and media consumption Primary research (Personal media network grid, Brand contact audit, etc.) Secondary research a. Situation analysis industry analysis part (industry seasonality, 4Cs analysis, competition analysis) b Ad$pender trend analysis c. Google Trends d. Your own primary research

Gross Impressions : What is it? How do you calculate it?

Sum of impressions provided by a list of media vehicles carrying an ad. Duplication or multiple opportunity to see Two ways: 1. run ad multiple times on one vehicle 2. run ad once or more on multiple vehicle.

Types of TV Advertising by Industry Structure

Syndication Network/National TV Spot Local Spot

3 Types of Scheduling Strategies : Flighting Schedule

This model is also called bursting. As the name suggests, this an absolute season based products model. The ads here run at very irregular intervals. Advertisements are for very shorter periods and sometimes no ads at all. The ads are in concentrated forms. So, the biggest advantage here is there is very less waste of funds as the ads run only at the peak time when the product demand is on high. Television and radio are the most used media types in this method. So the advertisers who cannot afford the year long ads, this is a best option. E.g. ads for warm clothes in Indian Market.

3 Types of Scheduling Strategies : Pulsing Schedule

This model is the combination of both continuity and flighting scheduling. Here, ads run whole year round but at a lower sidxe that means less ads, and heavy advertisements are preferred at the peak time. So this model has advantages of both the other models. Generally scheduling is fixed for a month. There are six types of scheduling method here : Steady pulse has fixed schedule for 12 months. Seasonal pulse has bunches of ads season wise. Period pulse regular basis ads. Erratic pulse refers to irregular ads normally used for changing old patterns. Start up pulse is used for new product with heavy advertisements. Promotional pulse refers to short period single use ads used basically for promoting products or events.

3 Types of Scheduling Strategies : Continuity Schedule

This model is very good option for the products or services which don't depend on season for advertisements. They run ads whole year round. The advertisements under this type run at regular and fixed intervals. The main advantage here is reminding about your products to the customers continuously. This model helps maintain a continuous and complete purchase cycle. This is a best model for the products having continuous demand all the year round. There can be a Rising Continuity in which some specific products are been advertised in the peak seasons for e.g. floaters are advertised more in rainy season while some products fall under a Falling Continuity in which either ads for new products are run or if there is any other change in the existing product.

TAI

Total Audience Impressions reach and frequency can be combined into single figure using this, but using numerical reach instead of percentage reach.

Uses of Brand Communication/Contact Audit

Understand TA 's behavioral characteristics better Develop media strategies and tactics to reach TA Develop qualitative rationale for TA Develop a consumer journey map

Estimate Impressions and Cost of Owned and Earned Media

Use Resources 1.SRDS via TCU library for medium or vehicle that has advertising inventory. 2.Check followers/users/unique visitors of social media account or websites

databases to help media planners determine psycho information

Using Mintel - Consumer lifestyle report by industry, generation, demographics, and themes Tools: Mintel (TCU library) and other public reports available online (e.g. Pew research, Census, Ad Agency Report on specific group of consumers such as Millennial consumer).

A website with a lower cost per action (CPA) indicates ...

a website is more efficient in generating sales, registrations, ect. and is therefore desirable.

What is Spot?

a) Commercial between programs b) means local media market (e.g.spot = local, network = national)

If the index is HIGH in quintile 4 or 5, it means the group is ________ average for ______ usage.

above, low.

Cost per Action (CPA)

action efficiency (lower the better) When advertiser pays each time user takes specific action, like becoming a fan or friend, posting to profile, looking at video, or playing a game -works best when a single action is desired

Targeting Methods : Behavioral Targeting

another way to target your market is by how its members behave. this type of targeting is very popular in the online world, where it is possible to track websites someone is visiting in real time. the idea of behavioral targeting is to have a relevant message for someone at the time it is most relevant to them - that is, when they are actually demonstrating or behaving in a way that indicates your brand is important to them.