Media Planning Midterm

The Purchaser V. Influencer/ Decision Maker Dynamic

In some product categories the primary shopper of the household may not make decisions alone (take into consideration) Others may have strong influence (children's cereal) Sometimes purchaser is not user (women buying men's personal grooming products) Must understand the Decision Making Unit This affects the media strategy to use when reaching the influencers/decision-makers

The Relationship of Marking, advertising, and media objectives

Often confusion about the difference between these and the role each play, yet very important to understand in order to develop effective advertising campaigns and media plans Marketing/Advertising/Media hierarchy Marketing: broad discipline; product, price, place, promotion and performance Advertising: paid marketing communications of all sorts, within promotion arm Media: the plan to achieve the advertising objectives

KPIs usually selected to provide more specificity for the objectives

Number of visits to a web page Number of downloads Average website conversion

Every time you add a new medium

you get more reach

Media Planning and Buying

- Media Planning answers the question, "what is the best combination of media to achieve a company's advertising campaign objectives?" - Media Planners choose the appropriate media to answer the above question - How do media planners do it? - Understand the business goals Develop appropriate media objectives to meet those goals Develop appropriate media strategies to meet the objectives - Media Buyers negotiate and purchase the media recommended by the planner -The buyer's goal is to reach the highest number of people in the target audience at the lowest possible cost

3 Media neutral compensation

- Old system: ad agency paid a commission (15%) on the amount of media it place for its clients - Agency incentivized to recommend expensive media, such as TV, in order to make high commissions - New system: compensation agreements based on professional services rather than media commission - Ensures media neutrality and rewards agencies for understanding broader range of media

4 Definition of media planning evolves

- Scope of media planning is broader - New media types such as : interactive, guerrilla, live, experience and more - Must be well versed in more media options - New position: Connection/Touchpoint planner (where they look first before buying, impulse buy or media that leads to purchase) - Identifies potential communication touchpoints prior, during and after purchase "360 degree view" places target audience at the center - Discover all the ways message impressions could be made during the day - Four types of media - discussed earlier (Paid Owned Earned Shared )

5 Unbundling and rebundling

- Take the media buying function away from creative, full-service agency and give it to a media buying service (unbundling) - Idea was to create buying clout to negotiate lower prices - Don't employ expensive talent so cost to hire less - However: Large media buying agencies don't plan/buy/support local media - Disconnect between the agency creating ads and agency placing ads - Buying only agency not necessarily good at developing creative new media ideas Led to "rebundling"

Four Dimensions of Audience Profiling

1. Demographics: easily measured and reported such as age, gender, race, education, HHI, number of children 2. Geographics: where they live 3. Psychographics: lifestyles, values, beliefs, interest, cultural associations, self-image 4. Behavioristics: buying motivation, buying style, media preferences

Nine Traits of a great media planner

1. Good with numbers - most strategies and tactics deal with numbers (Index, Percentages, Cost Efficiencies) 2. Creative thinker - coming up with new ways to deliver messages and add value (Valued added, Sponsorships) 3. Detail-oriented - managing large amounts of money effectively 4. Analytical - turns data into insights 5. Self-motivated and persevering - make multiple plans and see them through 6. Accountable - take ownership and be deadline driven 7. Team player - works well with others and understands their role 8. Good negotiation - comfortable and skilled at haggling 9. Good communicator - helps others understand the merits of a good strategy

Media Strategy Meets the Pareto Rule

70% of a product's or brand's sales will be generated by 30% of its customers (used to be 80/20) This 30% are called Heavy Users Marketers need to know them intimately Find more people like them Identify best media to reach them Find people who could become heavy users T This is why we develop profiles

Media Fragmentation

A redistribution of an advertising medium because of more available media alternatives - An example is the migration of millennials to social media - Americans have changed their consumption of media types - New advertising-supported media is not totally at the expense of older traditional media - Media growth has almost tripled in number in the past 20 years, don't rule stuff out - The media industry is adept at evolving, staying relevant, and staying ahead of their audience - The perception that traditional advertising media channels are dying is not accurate. Digital media has changed the impact of traditional media as well as enhanced the traditional media offerings -Fragmentation can be challenging as it spreads the audience over more vehicles. At the same time, fragmentation can make planning more effective because narrowed audiences are more alike.

10 Attribution

Attribution = crediting a certain advertising medium with producing a measurable result Identify which medium or media mix produces best result for least money Digital media brought attribution to the forefront because it is easily measurable Multi-touch attribution determines "lift" other media provide to baseline digital media Preferable to "last touch" methodology However, not perfect. No attribution model is perfect

Buying styles

Brand loyal Price shoppers Early adopters Laggards Need to know if a significant number of a brand's heavy users fall into a particular style

Business Objectives Overview

Business objectives are broad based and not discipline specific Found in business plans, mission and vision statements, annual reports and other strategic documents, pay attention to stay in tune with company/ understand the client Typically the account manager or strategic planner synthesizes the business objectives for the agency Examples: what do they want? Revenue generation - how do we make more money? Profit maximization - how do we make more profit? Minimizing turnover - how do we keep what we have? Becoming more eco-friendly - how do we have a more positive impact? Business objectives inform more specific marketing, advertising and media objectives

The utility theory of buyer behavior

Buying motivation is a subset of consumer behavior "Motivational Hierarchy" is the prioritized list of why people make purchase decisions It is a combination of rational and emotional If most users of a product have a similar hierarchy explaining their buying behavior this is helpful to the entire agency Dickinsonian model says every product and brand represents a bundle of utilities Rational Utilities: Form Performance Place Price/Value Possession Novelty Ingredient/Content Convenience Emotional Utilities How it makes me feel Self-concept Image Affiliation/approval Recognition/Status/Respect Intimacy Avoidance

Change in target audience Knowledge

Comprehension and understanding New product attributes, positioning, availability, corporate citizenship, etc.

7 Fusion and Privacy

Data Fusion = combining disparate databases to learn more about consumers product and media usage MRI and Nielsen MRI is one of the largest consumer research databases Nielsen measures consumers interactions with media (TV ratings, share) Cable TV providers using website visit data from their internet service for addressable ads Behavior online can be marketed to advertisers to increase their behavioral targeting capabilities Behavioral tracking = gathering digital media usage Behavioral targeting = customizing ads on websites and smartphones based on past navigation and purchase behavior

Media preferences

Databases tell us what media is consumed by our high potential audiences How people spend their discretionary time is important Develop the right media mix Develop the right weights assigned to each media category in the media mix Online media use behavioristic audience profiling Cookies, browsing history, analytics, IP addresses YouTube uses past likes/views when delivering ads

How to read MRI Data Tables and use Indexes

Demo/Geo (Demographic or Geographic) column with a variety of demographic and geographic subgroupings Total US '000. It starts with the total population for all the people being studied. The population of the Demo/Geo group is called "the universe." Universe of Female Homemakers is 85,377,000 All users/Heavy Users A '000 column is the actual population of people described in the heading. All Users 65 and older is 7,998,000. "All" users is defined as female homemakers who have used gelatin desserts, puddings, pie fillings in the past 30 days.

Geographics and Digital Media

Every internet connected device has an IP (internet protocol) address An audience can be targeted geographically by its IP address because companies aggregate IP address with zip code, state and city information from internet provider. Smart phones allow for geotargeting and location specific content

Change in target audience Attitude

Examples: increase in brand conviction, inclusion in consideration set, stronger loyalty Knowledge drives attitude; attitude drives behavior

Media Department within and agency

Full service agency working relationships Media and Account Service = client contact Media and Planning = connection planners and media mix Media and Creative = campaign strategy/creative use of media Media and Production = producing ads in correct format and delivering ads on time

Involvement theory of buyer behavior

High Involvement products: cars, houses, appliances, dressy clothing, jewelry High utility values in both rational and emotional areas Low Involvement products: soft drinks, usual brand of bread Lower overall utility values Knowing motivational hierarchy of target audience helps us find media vehicles with similar characteristics

1 Fragmentation

Horizontal: any audience has more choices on how to be entertained, obtain information - Vertical: more choices within a particular medium - Demographic: media habits for one target audience are significantly different from another target audience - Attention: engage with two or more media at the same time

Strategic and Tactical

How the media mix will be selected When the campaign will be executed (timing) These are often blended See page 33 for examples of media objectives by type

Sales performance is NOT the only way to evaluate advertising

Informing and conditioning the marketplace takes time All advertising does not produce an immediate result What about all the other Ps in the marketing mix? Is advertising the only problem or strength? The biggest controversy in advertising is some people (including clients) believe that sales performance is the only legitimate way to judge the value of an advertising campaign. There are three major assumption flaws: This idea assumes the market is ready to buy while ignoring the fact that markets develop over time. It takes strategic communications to inform and condition the marketplace. This idea assumes that all advertising stimulates direct response and will be immediately productive. This idea assumes everything else in the product mix (pricing, distribution, product design, service) is functioning perfectly, therefore places the blame solely on the advertising. Obviously these assumptions are wrong...

Psychographics

Media strategy involves matching the profile of the target audience with the profile of the media users Psychographics helps refine the audience and improve the matching process Lifestyles is the largest used trait and used to describe dominant themes in a persons life Values influence how people view the world and make decisions Beliefs are aligned with values: religion and politics are primary beliefs Interests are hobbies, sports, travel, cooking, reading, yoga, etc. Cultural association describes the sub culture person identifies with (not race which is in demographics)

Types of Media

Paid - Advertising placements in media where the client pays a fee (TV/Radio/Billboard/Print/Online Ads) Owned - media and content created by the client (Store Sign, Collateral, Owner's Website, Social Media) Earned - content shared with media (Press Release, YouTube Videos) Shared- what audience does with it, share with friends (note: many consider this to be part of earned media)

Fifth P

Performance

Paid Media Process

Research and Planning: determine the goals, develop the media objectives, develop the plan Negotiation and Buying: negotiate best price (everything negotiable!) and formalize contracts 3. Scheduling and Traffic: get the right ads to the right place on time 4. Campaign Management: monitor and adjust 5. Verification and Reconciliation: verify that contractual expectations met, reconcile what appeared and what was billed 6. Evaluation and Reporting: final report on what the plan achieved relative to the objectives

Demographics

Rule #1 of audience profiling: Knowing the characteristics of your heavy users makes it easier to find other people who have similar characteristics Demographic data reported by syndicated research companies like Simmons/MRI as well as the U.S. Census. Data is reported in tables Lets look at how to read those tables

Category Development Index (CDI) and Brand Development INdex (BDI)

Sales performance of a spot market critical factor in determining additional advertising support Category Development Index is a numerical indication of how good a metro market is for the sale of a specific product category (not a brand). A Brand Development Index is a numerical indication of how well a specific brand is selling in a spot market. Baseline is 100 Above 100 the category or brand is selling more in that market than population would warrant Below 100 the category or brand is selling less in that market than population would warrant

Strategic Impression Ratio (SIR) Weighting Model

Simplest weighting model In some situations there will be two target audiences in the media plan The audiences will require different media to reach them Must determine if one audience more important than the other and how much more important Ratio of Importance is the Strategic Impression Ratio and this impacts the media buying strategy

Characteristics of Spot Markets beyond total population

Size is not the only issue! Ten other criteria used to select spot markets for additional advertising support 1. Population of key demographics within the metro areas 2. All Category Volume (ACV) - the level of distribution a brand has in a spot market 3. Category Development Index (CDI) and Brand Development Index (BDI) 4. History of the spot market's responsiveness to past advertising efforts 5. Noise 6. Cost of local media 7. Regional product preference 8. Trade Support 9. Profitability of the market 10. Promotional prospects from local media

SIze of county by Alphabetical Code

Spot Market Ranker Ranking by TV household population Cum % of U.S. means Cumulative TV households Look at cum % at market 25

Spot markets and the significance of "25 Deep"

Spot Market Ranker Ranking by TV household population Cum % of U.S. means Cumulative TV households Look at cum % at market 25

Measuring and achieving objectives

Strategic Knowledge Experts (SKEs): have the knowledge, insight and authority to express and implement objectives Key Performance Indicators (KPIs): crucial success metrics, what are crucial metrics (i.g up 20%) Can be part of a Brand Health Model Found at all levels of objectives (business, marketing, advertising, media) Measure achievement/non-achievement

Audience Delivery

Target audience Exposure levels the campaign hopes to achieve Measurement dependent on media type

Target audience v. target market

Target audience for advertising Target market is specific to a metro-markets, a geographical characteristic

2 All Media have digital component

Television On-demand Product videos and microsites embedded Streaming Radio Streaming Verbal code in ads for smartphone; takes you to microsite Text codes in ads Newspaper QR codes Digital "apped" ads Online classifieds Magazine Augmented reality Audio and video messages embedded Companion web content Outdoor Smartphone interaction Location based

8 Consolidation

The 6 companies that own almost all the media Media conglomerates own companies in more than one medium Has impact on competition Has impact on content created Has impact on news coverage/balance Has impact on pricing Has impact on negotiating opportunities

Cost and Efficiency

The actual cost of the media Plan will have "efficiency targets" Objectives will includes terms like: cost per thousand impressions (CPM), cost per rating point (CPP), share of voice (SOV)

Paid Media

The focus of this book - Advertising that involves a paid placement - The media (where the ad runs) charge a price to carry a message

Behavioristics

The fourth method of profiling deals with Buying Motivation Buying style Media preferences

Ethnographic Research

The study of behavior within a cultural context Marketers are conducting research on their customers Advertising media are conducting research on their readers and viewers The hope is to find a match

The Use of Vals

The study of behavior within a cultural context Marketers are conducting research on their customers Advertising media are conducting research on their readers and viewers The hope is to find a match

What is an Impression

The theoretical and actual occurrence of someone being exposed to an ad. Delivered whether someone sees it or not (on tv but not looking) An opportunity to the see ad Not a guarantee that the ad is seen

Change in target audience Behavior

This is where "sales versus something else" looms large "Something else" could be: logging on to website, join a WOM campaign, sign up to receive emails, take a test drive

6 Creative Media

Today media planning is more than just placing ads Media planners work as partners within the agency to develop unique ways to engage target audience New media blurs line between content and advertising Identify new media placements to reach the target - Cosmopolitan to launch male grooming products? Attracting target audience

Product of Factors (POF) Weighting Model

Used to help analyze potential target audiences beyond only using indices Used when two different target audiences being considered and these audiences are quite different The same media cannot be used to reach both audiences POF Formula: Subgrouping Population x Product Usage Level* x (Index/100) = POF value This model allows you to compare the theoretical sales potential in each subgroup by including population and the usage level You can get a different answer than if you just look at indices alone

9 ROAS and ROIS

Want return on what they spend, money back/sales from ads Manage expectations sometimes for clients Makes sure you know what they want.what success looks like for them Return on Advertising Spending (ROAS) Return on Investment (ROI) What are advertisers getting for the money spent? This question is challenging to answer Marketing plan, advertising plan, media plan are all evaluated differently, thus ROIs are all different Media plan evaluation should be based on reaching target market efficiently Big issue: there is not a direct and hard connection between sales results and advertising Other components of the marketing mix help determine success (product, price, place) Delayed response to advertising External factors you can't control get in the way of consumers making a purchase

Weighting Models as Media Decision Tools

Weighting models are analytical tools that help media planners make decisions in three areas: Selection of target audience Selection of spot markets for local ad support Allocation of budget Establish "weights" or levels of importance for the components within the model Basically who you will target

Geographics

Where they live Identify high index neighborhood Zip code MRI and Simmons include information about regions of the country Other sources can go down to zip code and even individual level These terms used interchangeably Spot Markets- areas around it MSAs (Metropolitan Statistical Areas) DMAs (Designated Marketing Areas) Metropolitan Areas

Strategic & Tactical

media objectives address how the media mix will be selected and the execution of the media campaign.

Cost & Efficiency

media objectives refer to the actual cost of the media buy, how efficient the cost of the buy is in reaching the intended audience, or the brand's budget size compared within the product category. Terms like CPMs, CPPs, SOV are used.

Audience & Delivery

media objectives refer to the message exposure levels the campaign hopes to achieve within the targeted audience. These objectives identify the target audience and look to deliver impressions, rating points, reach percentages, frequency of message, and so on, to measure how much audience was delivered.