Media Plans

8/6/2019 Media Plans

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How to Achieve Your ObjectivesAND Improve ROI

Purpose:

To provide SHSMD members with information andresources for professional development

To help members increase value received for mediapurchases


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How to Achieve Your ObjectivesAND Improve ROI

John OlsonV.P., Director of Product Development

MediaMixNet, Inc.


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How to Achieve Your ObjectivesAND Improve ROI??

By allocating your resources smartly andstrategically (planning)

By negotiating effectively for media time andspace (buying)

Spend for the best returnView media expenditures as an investment


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Media buying = media planning.

what budget should be allocatedto achieve plan

Mediaplanningis primarily concerned with

the timing and frequency in whichthe audience is reached

who is targeted by the advertising andhow many of them are reached

what media types (TV, radio, etc.)are used to deliver the message


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Media buyingis primarily concerned with

How much to pay for the time andspace

Who to buy it from

What specific vehicles (stations, programs,publications) to buy


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Youreplanningto throw a dinner party

You plan your menu

You plan to serve salad, barbequedchicken, and apple pie

Heres an analogy.

You go out to buythe ingredients

How much to pay forthe lettuce,chicken, apples, sugar, crust andice cream (the pie was a la mode)

Decide what store to shop


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Agenda

Media planning considerations that canincrease effectiveness

Media buying strategies that can

reduce costs


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Value of a Written Plan

Helps you focus and allocate resources properly

Selecting target audience

Preparation for buying

Setting appropriate budgets

Defining objectives and strategies


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Selecting a Target Audience

Generally, the broader your audience, the more itwill cost to reach it

The harder to reach your target, the more it will cost

Younger harderto reach than older

Men harderto reach than women


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Selecting a target audience

Typical costs-per-thousand viewers,prime time local TV, 4th quarter

Men 18-34: $ 125

Women 18-34: $ 115

Men 25-54: $ 65 Women 25-54: $ 55


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Selecting a target audience

Generally, the broader your audience, the more itwill cost to reach it

True for geographic targets as well

Rememberthe 80/20 rule 80% of businesscomesfrom 20% of customers

There may be good reasons to go beyondcore audience, or primary service are, but knowtherisks

Going beyond core audience will reduce ROI


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Selecting a Target Audience

While its tempting to expand target audience andincrease opportunity

Look at potential ROI If it costs twice as much to reach anadditional segment, will that segmentbring in twice as much revenue?

Doing sowill either increase costs or

decrease delivery


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Developing a Plan

A plan helps to allocate scarce resources towardachieving objectives

Strategic allocation of resources can minimize

waste from spending too much ortoo little onmedia

Strategic media planning begins withsetting media objectives


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Setting Media Objectives

Howoften must our target see/hear our message?

What% of our target can we afford to reach withsufficient frequency?

Reach objective

Frequencyobjective


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Howmanyweeks must we be advertising?

Continuityobjective


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More is better than less


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More is (almost always) better than less

Reach The higher % we reach, the greaterthe volume opportunity

Frequency The higherthe frequency, the morelikely the message will be noticed & remembered Rule-of-thumb is 3-5 exposures minimum

Continuity The more weeks of support, the lessopportunity to forgetthe message

There is a pointof diminishing returns


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And more (almost always) costs more than less

So, most advertisers have to make tradeoffsamong the three objectives


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First priority should be at least a minimum level offrequency

Most messages must be seen at least 3-5x perperson

Media research (provided by media or agency)can provide estimates of frequency

People who have seen less than that dont count


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How much beyond minimum frequency isnecessary will vary

The less compelling the promise

The sooner you want a response.

The heavier your competitors advertising

The less interesting the creative

the more frequency you will need


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Setting reach goal

1. How many people must you persuade in order

toachieve marke

ting g

oals?

(what % oftarget market)

2. What % ofthose you reach might be persuaded?

Could depend on a numberof variables.


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Could depend on

% oftarget actually in market now for your service

Newness or uniqueness of youroffer

Strength/believability and urgency of youroffer

Degree of loyalty to you or competitor


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Setting reach goal - example

Goal of 2,500 new physician referrals

Need to reach 50,000 - 62,500

(50,000 x 5% = 2,500)

Convertto % oftarget

(i.e. if 100,000 HH in service area, we need to

reach 50 62.5% of them)

4-5% migh

tresp

ond

toadver

tising


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Setting continuity goals

How many weeks ofthe year should be included inthe plan depends upon

How seasonal is the business opportunity?(The more seasonal, the less need for continuity)

How many weeks ofthe year do competitors advertise?

How aggressive are your goals?

How big is your budget?


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Audience Delivery

Gross rating points (GRPs) are the basic unit ofmeasurement in media plans

#1

Reach x frequency = gross rating points

Twoways to understand GRPs

80% reachx 3.0 frequency240 gross rating points (GRPs)


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Audience Delivery

#2

GRPs = the numberof advertising impressionsachieved among a target audience

expressed as a % ofthattarget audience

240 GRPs = 240% ofthe target audience

i.e.

80% reached, 3x each on average

or 40% reached, 6x each on average

or 60% reached, 4x each on average


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Setting Budgets

Objective/Task Method

Set frequency/reach/continuity goals

Devel

op a plan

toachieve

them

Costoutthe plan


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Gross RatingPoints (GRPs)

How much is enough? How much is too much?

MMN recommends the following ranges for TV:

To

mot

ivate immedia

te ac

tionin a relatively shorttime:

125 225 GRPs perweek

For longerterm efforts:

75 -- 125 GRPs perweek


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Gross RatingPoints (GRPs)

How much is enough? How much is too much?

MMN recommends the following ranges for radio:

To

mot

ivate immedia

te ac

tionin a relatively shorttime:

150 250 GRPs perweek

For longerterm efforts:

110 --175 GRPs perweek


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Choosinganappropriate mix

Use of more than 2 media is best foronly the heaviestcampaigns

Adding another medium tends to increase budget

Need to achieve minimum weight levels ineach medium you use

A mix oftwoor more media is goodAddi

t

io

nal pro

duct

io

n co

st

s and creat

ive fees

Light users ofone medium (i.e. TV) tend to beheavier users ofothers (i.e. radioor print)

Increases reach and frequency


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Flighting

Flighting =

Concentrating support in certain weeks, and takinghiatus weeks.

Short hiatuses (1-2 weeks) are not detrimentaland help to extend budgets and increase continuity


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CommercialLength/AdSize

Shorter/smaller units are cheaperthan longer/largeronesin most media (radio sometimes an exception)

Noting levels peak in newspaper ads at around page

going larger d

oes n

otattrac

ta larger audience

Recall levels somewhat better for longer commercials,buton TV or radio, every ads a full page

Key consideration is thatthe ad is long/large enough totell your story. Maintaining effective frequency levels andcontinuity will offsettradeoffs from smaller/shorter units


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DaypartMixes

Explore several alternative daypart mixes in TV or radioto maximize your budget

Certain dayparts are bargains

In TV, early morning ne

ws pr

ograms, day

time,and early and late fringe

In radio, mid-days and weekends

Also, using more dayparts will increase your reachas well as extend your budget

The MMN Power Plannertool gives estimates of reachand frequency for alternative daypart mixes


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Setting Budgets

Plan to budget

Spend down available budget

Dont fall below minimum frequency or reach levels

Consider narrowing yourtarget audience

Cut weeks, cut secondary media types if necessary

Maintain reach and frequency goals


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Setting Budgets

Meet or Match Competition

Estimate media spending of key competitors

Budgetto match or exceed competitors


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Developing media strategies

What are the best times of year to advertise?

When are the greatestopportunities to gain newbusiness?

What is the competition doing?

Can I match, exceed or pre-emptthem?Use the same media or differentones?


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Evaluate & compare each media type against yourobjectives and budget

Reach is easierto build in broadcast TV,newspaper and outdoor

Frequency is easierto build in radio, cable TVand outdoor


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Evaluate & compare each media type against yourobjectives and budget

TV and radio are more easily targeted todemographic groups

Newspaper, outdoor and cable more easilytargeted geographically


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Evaluate & compare each media type againstyour objectives and budget

Price-of-entry tends to be highest in broadcast

TVRadio, newspaper, outdoor and cable more easilyallow you to achieve sufficient frequency against asubsetof yourtarget

(Fewer stations, board locations, smaller ads)


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The ideal

Dominate (with high frequency)


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The ideal


in enough media types and vehicles to

achieve high reach of the target audience


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The ideal

on an ongoing basis (continuity)





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The ideal


use support schedules in additional

media for emphasis





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The more realistic strategy



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at least one medium or vehicle


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use support schedules in additional mediafor emphasis


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The minimum

Advertise in one medium or vehicle

consistently throughout the year (continuity)


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Evaluating Alternative Plans

Variables to consider

Budget

Target AudienceCommercial Length/Ad SizesDaypart MixMedia Mix


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Evaluating Alternative Plans

Alternative plans should be compared based on:

Budget

FrequencyReachContinuityUse of desired media

Daypart MixUnit Mix


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Preparation for Purchasing

Your approved plan can serve as a requestfor proposals from the stations


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Preparation for Purchasing

This shows GRP goals by daypart and week, andtotal budget for the medium

You can give this to the station and ask for proposalsfor X% of the total


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Media Buying Strategies

Timing

Start negotiations 6-8 weeks in advance, ifpossible

Make the sales rep the one to get nervous

Negotiation advantage goes to the partywith more time


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Timing

In broadcast or outdoor, last minute buyingcan force you to take whats left

at the sellers price.

Save some budget to take advantage of lastminute opportunities


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Maximizing Clout

Combine as many of your buys as possibleinto a single negotiation

Gives the media only one chance to winyour business

Makes your business larger and more attractiveto the media


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The Art of Executing the Plan

Negotiation Skills: Dont ask, dont get.

Be prepared towalk away. Shopping aroundthe plan Ask for value added opportunities

L l M di Pl i d B i


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Local Media Planning and Buying Informed Execution

Newspaper

Radio

Television

Cable Television

Outdoor


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Newspaper Buying Strategies

Take time to read the rate card andunderstand hidden opportunities

Only buy what you can afford. Flexible medium with many sizes to

accommodate any budget

Master contract for system or multipleservice lines

Ex. BJC Healthcare


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Newspaper Buying Strategies contd.

Reduced costs for special sections Health section/TV guide Shelf life

Drop circulation (and cost!) with zonededitions Frequency discounts/Weekly repeat

rate discounts Multi-paper discounts

Upfront vs. remnant Position


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Radio Buying Strategies

Share plan costs with your rep tohelp reach goals

Look at all day parts Fringe drive time; overnights

Narrow

hours

toachieve savings Guarantees on rotations

Reduce demographic waste onstations

Spectrum buying Balancing target Avoid key buying times of year


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Radio Buying Strategies (contd)

Multi-station negotiations vs. individualstations

Be sure it still achieves overall strategy fortarge

ting a cer

tain dem

ographic Look at stations otherthan the leader

Be prepared to leverage one stationsability to deliverto plans goals againstanother stations

Value added opportunities


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Television Buying Strategies

Look outside the box

Avoid spending on highly rated showsto delivertotarget, others do just asw

ell Look at new programming

Communicate top 3 desires andthen letthe reps showwhat elsethey have. Otherwise, you pay topdollar for picks.


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Cable TV Buying Strategies

Take all bonus runs Make a 10 second spot and logotag

available to stations

Request auto-fill at no charge Ask for no-charges to be scheduled intoorder


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Cable TV Buying Strategies

Buy program specific when available

Look at demographics of network


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Outdoor Buying Strategies

Location.

Location.

Location.

How to Achieve Your Objectives


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How to Achieve Your ObjectivesAND Improve ROI??

By touching more consumers and physicians,more often for the same or lower budget

By spending less money to touch the same numberof consumers with the same frequency

H t t h


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Howtotouch more consumersand physicians more often

forthe same or lower budget?

Try out alternative strategies

Look at

variations in

Daypart mixUnit mixMedia mix

Co

mpare differences inReachFrequencyContinuity


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Comparing alternative strategies

Hypothetical example using real data in amarket with population of 600,000 households

Clients traditional TV daypart mix is20% early news40% prime30% late news10% late fringe

4-week campaign

$50,000 budget


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MMN/Barnes-Jewish Hospital Case Study


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MMN/Barnes Jewish Hospital Case StudyBuying Results Comparison

Previous Plan MMN Plan MMN Difference

RadioTRPs

1050 1248 +19% more TRPs

RadioCost-per-ratingpoint

$99.00 $68.10 -31% lower C

PP

TotalRadioCost

$104,060 $85,000 $19,060 savings

MMN/Barnes Jewish Hospital Case Study


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MMN/Barnes-Jewish Hospital Case StudyBuying Results Comparison

Previous Plan MMN Plan MMN Difference

Newspaper

# papers

used

2 7 5

Key newspapers added to schedule

# insertions

per

newspaper

4 in Post-Dispatchand 5 in News

Democrat

10 each in Post-Dispatchand News-Democrat,

6 in the Telegraph

8 each in the St. Charles,South County, Oakville-

Mehlville and SouthwestJournals

Double the # insertions in largestnewspapers

Strong frequency in 5 additional papers

Total

Newspaper

Cost

$11,500 $31,100 Radio savings

Invested in

additional newspaper

Total

Campaign

Cost

$115,560 $116,108 Significantly more media weight for the samebudget

M di Pl i


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Media Planning

Local Media Planning Tool Power Planner

Accurate cost estimates for all local media

Full glossary of media terms and tutorials to guideyou through the process seamlessly

Instant planning based on established rules

Accurate audience delivery data for TV and radio

Documents

Media Plans