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Media Media Strategies: Strategies:
An Advanced Discussion
Television Bureau of AdvertisingTelevision Bureau of Advertising
The Media Pie
- Erwin Ephron for TVB
There’s never enoughmoney to advertise:
• at effective weight
• to all of the country• for most of the year
That problem defines your job as a media planner.Allocation.
Spending a limitedresource for greatest total effect.
Think of the media budget as . . .
A beautiful pie . . .
And media planning as . . .
Dividing-up the pie . . .
The pieces are. . .
WEIGHT
TARGETING
CPMUNIT SIZE
GEOGRAPHY
WEEKS
The size of the portions determines the media plan.
And the size of each slice will determine the size of other slices.
THE MEDIA PIE
1. WEIGHT LEVELS
TRP’s, reach and frequency
Research shows each Rating point added produces less response than the one before.
Source: Adworks 2, A major study by MMA, IRI and Nielsen Media Research which examined 800+ packaged goods brands.
This argues for moderate weekly GRP weight and more continuous advertising.
Scanner sales data paints a similar picture.
It shows reach is cost-effective, while repetition (short-interval frequency)is not.
Probably because whenpeople are in the market a single message can influence brand choice.
And when they’re not in the market many messages will have little effect.
This is called RecencyPlanning.
It is a skimming strategy.
Since purchases are made continuously,
but we usually don’t knowwho is ready to purchase . . .
REACH
The idea is to talk toas many target consumers as possible
Over as many weeks as possible
C O N T I N U I T Y
REACH
PRINCIPLE
Today it’s “reach and continuity,” not “reach and frequency” in media planning.
Use *moderate weekly TRP’s.
*Approximately 50 TRP’s are the recommended minimum.
2. TARGETING
Demographics, user, usage
It’s easy to over-estimate how much demographyis worth to a brand.
Example
The target group isWomen 18-49. It has a purchase index of 115.
(It can’t index much higher because that’s63% of all women.)
A smaller target, likeWomen18-34 in 5+households, might indexhigher. . .
But it would not account for enough of a mass brand’s sales tobe useful as a target.
That is the TV targeting paradox.
Small targets don’tconcentrate enough sales.
But large targets don’tconcentrate sales enough.
The reason is most TVbrand demo-profilesare relatively flat.
In theory, demo-targeting cuts waste bybuying more prospectsper-dollar.
PRICING
Here’s how it’s supposedto work:
Prime time Men 18+ cost $30 a thousand.
$30$30
A brand targeting M 25-54buys Package A because ithas a higherM 25-54 comp.
Average M 25-54Package A
$30$30
…and gets more younger men per-dollar because it has targeted.
Average M 25-54Package A
The targeting dividend $30$30
But when sellers price onMen 25-54 . . .
$45$45
$30$30
The targeting dividendgoes to the seller.
$45$45
$30$30The targeting dividend
And that’s what happens today.
Higher target comp doesnot produce lower target CPM’s.
FOX WB NBCABCCBS
Sources: Nielsen NTI, Total Viewing Source Report andHH and Persons Cost Per Thousand Report, February 2003
% Comp
7671565052
CPM
63.2465.6753.8250.0451.14
Highest CompHighest Comp Highest CPMHighest CPM
MEN 25-54
Which shows targetingdoesn’t work the way it’s supposed to.
Another problem.
Reach, a primary goal, and targeting conflict.
Reach is bought withdispersion. Targetingrequires concentration.
That said, there are stilltargeting approacheswhich have great energy.
Recency, receptivityand geography areall powerful targetingtools.
PRINCIPLE
Look well beyonddemography totarget potential purchasers.
3. CPM VALUE
Reach, environment, attention
This is the twilight zoneof media planning.
Clearly there has been amove to cheaper media.In TV this has meant lowerratings and cable.
But as we gain in costefficiency are we losingvalue?
Agency researchshows that viewingduration (which favorshigher ratings) predictsattentiveness.
Sources: Proprietary agency research
Similarly, Print data shows that readers of lower CPM titles see fewer ads.
Sources: Ephron, Erwin, "Counting Calories – On the Need to Adjust Print
Readership Data," Worldwide Readership Research Symposium, Venice, 2001.
Lower CPM’s usually represent lower value. Buying a mix of daypartsis the best approach.
PRINCIPLE
TVB provides a PowerPoint presentation called “Value of Local Daypart Mix”. Contact [email protected] to arrange a preview.
4. UNIT SIZE
30- or 15-second messages
Choice of unit is a creative decision, forcedby pricing and budget..
15’s comprise close toone-third of national TVweight.
But, there’s a paradox.
Research usually findsshorter units are morerecall effective.
(Two 15’s provide greater total communication than one 30.)
But sales tracking shows15-second commercialsare less sales effective.
The conflict may be inthe way we use 15’s inour plans.
Even if two 15’s areworth more than a 30...
Even if two 15’s areworth more than a 30...one 15 is still worth less.
Don’t plan 15’s to make a budget appear biggerthan it is.
PRINCIPLE
That does not help acampaign.
5. WEEKS
Scheduling and weight
Research shows increasing marginal returns as weeks are added to a schedule
Source: Adworks 2
This suggests theoverwhelming value ofcontinuous advertising formost brands.
Recency also supports more weeks of advertising.
The recency goal is to intercept weekly saleswith a brand message.
In recency planning,lower weekly reach goals and more weeks are the most cost-effective.
But a 30 weekly reach (50 TRP’s) seems to be thepractical minimum.
Because the effects of less weight often can’t be read in the market...
…which means you don’t know if the campaign is working.
PRINCIPLE
A moderate weeklyreach goal results ina better performingschedule.
It intercepts morepurchases, because itallows more weeks ofadvertising.
6. GEOGRAPHY
National, spot or some combination.
Before we look atGeography, lets review what’s happened to the media planning pie.
1.WEIGHTShould be moderate togenerate more weekly reach.
2. TARGETINGNo longer provides substantial cost-savings.
3. CPM’SRequires a mix of day parts.
4. UNIT SIZEAre often reduced to to help stabilize CPM’s.
5. WEEKSHave become highestpriority in planning.
Both weeks and weeklyreach are key recencyplanning goals.
But most brands can’tafford both when costs are increasing fasterthan budgets.
The remaining option is to target Geography.
And that brings us to spot planning.
6. GEOGRAPHY
Targeting with spot
Every brand hasgeographic areas ofopportunity.
These are spot marketswhere advertising ismost likely to producesales.
They can be identifiedby BDI, CDI, brand share,growth or absolutevolume.
Let’s begin with the mostfamiliar measure, BDI, the market’s per-capita indexof brand purchase.
BDI is calculated bydividing a DMA’s share of brand sales by its share of US population.
A market like Dallas,containing 3% of a brand’s sales and 2% ofthe population wouldhave a BDI of 150.
For most brands, marketscomprising a third of theUS, will have a BDI index of 130 or higher.
This is far greaterselectivity than demosprovide.
The following maps illustrate:The following maps illustrate:
•In Red: The portion (best 1/3) of the US that generates the highest BDI or CDI.
•In the text box: A comparison of thatBDI/CDI to the best age demo index.
Pasta Sauce
Best 1/3 of U.S.Best 1/3 of U.S. 135135Best Age DemoBest Age Demo 112112
Source: IRI Infoscan special tabulation/MRI
Chevy Blazer
Best 1/3 of U.S.Best 1/3 of U.S. 156156Best DemoBest Demo 122122
Source: Polk Special tabulation/MRI
Financial Planning
Best 1/3 of U.S.Best 1/3 of U.S. 140140Best Age DemoBest Age Demo 114114
Source: MRI Special tabulation
Barbecue Sauce
Best 1/3 of U.S.Best 1/3 of U.S. 133133Best Age DemoBest Age Demo 106106
Source: IRI Infoscan special tabulation/MRI
And there’s a bonus.
Since geographyand demographyaren’t linked, thebenefits are cumulative.
A brand with a BDI of 115 for Men 18-49 and 130 forBoston...
Will index at 150 among Men 18-49 living in Boston(1.15 x 1.30).
But BDI spot is one dimensional.
A brand, depending on it’scircumstances, should consider targeting...
• Category sales (CDI)• Competitive vigor (share)• Brand growth (% change)• Brand volume (dollars)
Alone, or in combination.
There is evidence thatspot should also focuson high Share andGrowth markets.
And that it should be used to add weeks,not weight.
This is a far more advanced approach to Media planning.
DMA market-value datafor planning spot are widely available.
• IRI or AC Nielsen Brand Track for packaged goods• Polk for automobiles• IMS for Rx drugs
And MRI special tabs for awide range of products andservices.
TVB can help you locatethe data.
PRINCIPLE
Spot should be used inhigh potential marketsand be planned toadd weeks, not weight.
ConclusionGeography is the missing planning strategy for many TV brands.
TVB offers Advertisers and Agencies TVB offers Advertisers and Agencies (planners or buyers) a full range of (planners or buyers) a full range of information information about Local about Local Television:Television:
The Resource Channel on the The Resource Channel on the TVB web site was created for TVB web site was created for advertisers and agencies. advertisers and agencies. We invite you to browse and We invite you to browse and learn more about:learn more about:
Planning and Buying Spot TelevisionPlanning and Buying Spot Television Local Broadcast TV vs. Other MediaLocal Broadcast TV vs. Other Media EDI: Enabling the Business ProcessEDI: Enabling the Business Process
Thank YouThank You..
See you on the TVB web site See you on the TVB web site www.tvb.orgwww.tvb.org
A note for presenter: A note for presenter: “ “Media Planning…” was created for Media Planning…” was created for
the Advertiser/Agency Resource the Advertiser/Agency Resource Channel on the TVB web site. For Channel on the TVB web site. For more on planning and buying Spot more on planning and buying Spot and additional presentations such and additional presentations such as “Comparative Values in Local as “Comparative Values in Local Television” and “Alternate Television” and “Alternate Delivery Systems,” please visit the Delivery Systems,” please visit the Channel or contact TVB. Channel or contact TVB.
Thank you