NYU_ Campaign 2 Final

It is the horizontal axis % of total population that a media vehicle represents: 11.3% of CNN viewers own toyotas

verticle axis % of the media vechicles target audenice over the media vechicle total audeince . 25% of toyota owners have watched CNN in the past 7 days

its composition of a specific media vehicle in relation to the overall target audience,it reflects market dybanic and where to advertise becasu eof interest

1. analyze client objectives
2. formulate media objective and strategy
3. Determine media selection and content developement
4. mesure the results

ad and brand awareness
reach/frequency
engagement

engagement
calls/leads
% response
orders/sales/ conversion
CPO ( cost per order) CPS ( cost per sales)

its the brand population of potential customers
tells how many customers are out there
it determines how close we can come to contact everyone
to add or subtract they must be same demo

designated market area- national or local

households using television
-% of households using their TV at a certain time
Share tuned into a certian show

Gross Ratign point
cost of purchasing one rating point.
media cost/GRP
Describes tv by day part, quarter, market , demo

The number of copies of a publication solf through all channels

Readers per copy
# of invidual readers of a certain issue
Total audeince- total # of individuals reading a publication

total response/total circulation x 100

total cost/total calls or leads
effciency comparison

Total sales/response x 100

total costs/total sales

Communicate brand attributes
Enhance Image
Contradict competitive messaging
Introduce new line extensions and alternate brand consumption considerations
Expand product distribution
Support current sales
Drive brand growth

Media”:
Forms the platform upon which all marketing communications are delivered
Generally represents the largest marketing expense
Has a direct correlation with brand success or failure

Effective use of media impacts the ability to deliver brand goals

How and where the budget is allocated is just as critical a decision as the creative that airs
There is a direct co-dependency between the effectiveness of the media plan and the creative
Strong creative delivered in the wrong media will be ineffective
A well targeted media plan delivering weak creative will also be ineffective

Media planning is concerned with how to use advertising time and space most effectively (and efficiently) to contribute to the achievement of marketing objectives
Typical media objectives/goals include (but not limited to):
Awareness (Reach/Frequency)
Engagement
# of Responses / Sales

Objectives:
What role will media have in the communications plan?
Acquisition/lead development
Awareness/brand building
Strategies:
What overall approach will be taken to achieve the business and media objectives?
How will the marketing variables be taken into consideration/employed?

These questions can typically be answered by one or a combination of the following:
Syndicated research
Client data/model
Other research (i.e., focus groups or other research based findings)

Audiences can be expressed in two ways:
The number of contacts (impressions)
The percentage of contacts (rating)

Impressions refers to the number of target contacts generated through a single message in a single vehicle

Gross Impressions refers to the summation of target contacts generated through messages in several vehicles
E.g. an entire ad campaign (TV ad + Mag ad + Radio ad + Billboard)

We call summed impressions Gross Impressions because they double (triple, quadruple, etc.) count people, and are DUPLICATIVE
To net out the duplication, we will eventually learn the concepts of reach and frequency

Formula: HUT X Share = Rating

Formula: Average Rating X # of Units = GRPs/TRPs

Reach
The number of different people who are exposed to one or more vehicles in a media schedule
Reach is an unduplicated number
Reach = GRPs / Frequency

Frequency
The average number of times those reached are exposed
Frequency = GRPs / Reach

CPM = (Cost / Audience) x 1,000

CPP = Media cost / GRPs

CPPs are used primarily to describe television:
They vary by daypart
They vary by quarter
They vary by market
They vary by demograp

The cost to purchase a single unit or announcement
Cost Per Unit = Cost Per Point x # of Rating Points

Primary Reader: A reader who purchases a magazine or is a member in a household where the publication is purchased

Pass-along Reader: A reader of a publication which he/she did not purchase

In-Home Reader: Primary or Pass-along reader who reads the publication at home

Out-of-Home Reader: Primary or Pass-along reader who reads the publication out-of-home. For example, at work, at the doctor’s office, or an airplane.

The percent of a total demographic group that is reached by a single issue of a magazine

Coverage = (magazine’s demographic audience / total demographic population) x 100

The percent of a magazine’s total audience that a particular demographic group represents

Composition = (magazine’s demographic audience / magazine’s total audience) x 100

Front-end
Response Rate (RR)
Cost Per Response (CPR)
Back-end
Percent Conversion
Number of Sales
Cost Per Sale / Order
Orders per Thousand (OPM)
Lifetime Value (projections)

Offer
Positioning
Unit
Response device
Creative
Fatigue
Presence of competitive advertisers

DVRs (digital video recorders)
Broadband video
Advanced TV
iTV (enhanced, VOD, ichannels)
Targeting/Buying (Google, Admira)
Addressability (Visible World, Navic)
Increased rating accountability

Direct response TV is a low cost medium featuring advertisements designed to generate immediate response.
In order to qualify for a direct response rate, the commercial must present an offer using a toll free telephone number, mail or a url as a response vehicle

Network TV
A group of stations joined, either by direct ownership by the Network (O&O’s – Owned & Operated) or by affiliation (Network affiliates), to nationally broadcast the same programs
Cable TV
Programming is sent via satellite to local cable operators (MSO’s) who then forward the programs to households via wires
Syndication
Programming is distributed via individual stations that are not otherwise joined. Usually, programs air in different time periods and/or dates in each market

Network TV Strengths
Network TV delivers the highest ratings overall
National coverage
Capability to instantly achieve high, broad reach
100% penetration of all television homes
Advertisers can select programs to reach particular target audiences
Audience guarantees (for upfront buys)
Network TV Weaknesses
Need to have a sufficient budget just to enter the game
Although cost efficient on a CPM basis vs.. other media, high out-of-pocket costs
Not to mention production!
Long lead times for purchase
Long term commitment
Limited inventory (vs.. print)
Most desirable inventory typically sells out first

Cable TV refers to programming which is transmitted to households via cables, fiber optics, or satellites
Cable networks receive their distribution through their affiliation with cable companies, better known as MSO (Multiple Systems Operators)
Well-known MSO’s include: Time Warner Cable, Comcast Cable Communications and Cox Communications
Types and number of channels received is determined by provider

Cable is national television
Cable TV approaches penetration of Network TV

ADS (Alternate Delivery System)
Includes DirecTV, Dish Network (satellite)

Cable enjoys dual revenue stream
Revenue from both advertisers and subscribers

Cable TV Strengths

Can capture niche audiences with cable
Enhanced Targetability
Dominant outlet for Kids advertising

Innovation
Cable continues to push the envelope with technological advances
Goes beyond traditional television boundaries and allows for more imagination
e.g. Website tie-ins promoting interaction between consumer and brand
As a result, added-value readily available in cable
cable TV Weaknesses:
Overall, smaller ratings than Network TV, but gaining
Due to the large number of choices, fragments viewing and limits reach

Advertisers commit dollars in the TV marketplace “upfront”
Networks sell 80-85% of their annual inventory in the Upfront Marketplace
Negotiations are done with all advertisers and all networks participating in the upfront within a short period of time (weeks)
The dynamics of the negotiations are determined by supply and demand in the marketplace
The upfront is bought from Q4 – Q3 the following year
Timing & Commitments (general percentages)
4Q - 100% firm
1Q - 75% firm
2Q – 50% firm
3Q - 50% firm
Cancellation options are usually exercised between 75 to 60 days before the start of the quarter

Scatter Market
Additional inventory can be purchased after the upfront if inventory is available
Typically Scatter costs come at a premium over the upfront

Pros
Long term commitment
Protection from volatile marketplace
Guaranteed audience delivery
Access to desired programming
Flighting flexibility (buy now, move later)
Moves must be within quarter
Some budget flexibility via cancellation options
Upfront pricing historically lower than scatter
Efficiency
Long lead time
Need to commit in advance of finalization of all marketing plan components
Limited cancellation options

National TV purchases made quarter-by-quarter
For brands who do not want to participate in the upfront
Also used to pick-up incremental weight
Referred to as short-term buys
Best to submit scatter needs prior to quarters upfront option dates
Avoid scatter premiums

Pros
Tactical flexibility
Better execution
Creative strategy may be more developed
Budget flexibility
Wait until you are ready to spend
Program opportunities not announced in the Upfront
Ability to benefit from a soft marketplace
Cons
At the mercy of the marketplace
No audience guarantees
Once order is placed, it’s non-cancelable
Prices usually inflated vs.. upfront purchases
Limited access to desired programs
Shorter lead-time reduces chances of successfully moving inventory
Can have difficulty achieving weekly GRP requirements thus impacting brand and lead goals.

Pre-emption is affected by three major factors:
Competition for airtime
General advertising seasonality: clearance rates vary by quarter
Local, national or world events
Political

Rating - Percentage of individuals or homes tuned to a program

GRPs (Gross Rating Points) - Sum of ratings delivered by an advertising schedule (against HH’s)

TRPs (Target Rating Points) - Sum of ratings delivered by an advertising schedule (against specific target segments – A25-54)

Reach - Number of different individuals or homes exposed to a message at least once (%)

Frequency - Average number of times individual or household is exposed to an advertising message

HUT - Households using television (%)

Pre-emption - When spot does not air due to inventory being allocated to advertisers paying higher rates

Clearance - Amount of DRTV schedule that airs after pre-emptions