Introduction to Advertising Class Notes: Chapter 7 Outline

					Organization of the Media Function 1. Media Planner o To supervise all areas of the advertising campaign as it relates to the media function o Part of their job to  Anticipate future trends in communication  Keep agency management  Clients abreast of major changes o Contemporary media planners  Have added the role of marketing specialists to their other duties 2. Media Research o Coordinates both primary and secondary research data o Functions as a support group for media planners o Responsible for gauging and anticipating future trends in media o Responsible for estimating the likely audience for new magazines or television programs 3. Media Buying o Executes the overall media plan o Select and negotiate specific media placements o Responsible for monitoring post-placement executions o Have established units to research and buy internet advertising or to construct client websites o Media function has been driven by changes in the number of media options as well as by the increasing expenditures in media o The financial risk associated with media-buying mistakes o In 2005, total advertising expenditure were over $271 billion o Media Planners, in 2015, will have to provide clients with o buying rationale o budget efficiencies o measurable audience delivery The New Media Function o provide an as assessment of the future of media planning and buying o most important o Convergence  Primary trend of the next five years  The blending of distribution, content, and/or hardware from a number of media companies to create a new or significantly expanded communication system  May even expand promotional opportunities for advertisers  A trend of the present, and even more so of the future o Interactivity  Future of advertising will be controlled to a great extent by the audience  Will allow buyers and sellers to deal on a one-to-one basis with communication and products tailored to the interests of specific households and individuals  Change the media function and the creative process o Creativity  In “permission marketing” era the need for attention-getting creative techniques and interest building advertising formats will be greatly diminished  Media planners  Need to think of and evaluate new and different media options to build additional exposure to consumers in effective and efficient ways  Media expertise is becoming increasingly important in developing and evaluating entertainment and experience marketing opportunities  Innovative uses of nontraditional media are generally designed to work with the more traditional media campaign for a brand  Reebok  Hired 500 college students to wear temporary tattoos containing the Reebok logo and the slogan “The pain train is coming.” On their foreheads

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Placed these students around the 26.2 mile course of the Boston Marathon (sponsored by ADIDAS) Four different brand messages illuminated on the sides of the Prudential Building in Boston during the race

Engagement  The ability of an advertising vehicle to deliver a receptive audience to the audience in it  Media guru, Erwin Ephron  Engagement is the “hand-off of attentive consumers from media content to advertising” Media Unbundling and Independent Media-Buying Firms o Common approach to the media function o Refers to the establishment of agency media departments as independent units apart from their traditional role as departments in full-service agencies o First U.S. media-buying company, Time Buying Services founded in 1960 o Early independents o Concentrated on television, had most negotiable rates and major medium for most clients o Premise was for media experts to obtain better commercial rates than could be obtained through full-service agencies o New focus on the media function major disagreements o Where media planning should take place  Some argue that by divorcing planning strategy from buying tactics you lose many of the efficiencies promised by the new emphasis on media o Degree of coordination between creative and media strategy o Number of factors that led to the era of unbundling o Integrated marketing  Advertising agencies were not the only source of communication expertise  Gained specialization in diverse areas  Large companies often hired PR firms, sales promotion agencies, and direct-response companies in addition to the Advertising agency o Cost factors  As cost of media time and space escalated, clients gave more attention to the media-buying function  Primary problem of achieving media cost efficiencies is that the goal of low cost is largely contradictory to the current move toward specialized media o Globalization  Without strategic media planning, global brands could not achieve worldwide recognition/dominance o Complexity of the media function  Companies are demanding that this advertising be monitored and coordinated with event marketing opportunities, sales promotion, and PR o Profitability  Compete for clients’ media account even when another agency handles the creative side o Unbundling has given media executives a greater role in the overall planning of advertising strategy o Has highlighted the importance of media as part of the advertising mix Basic Media Strategy o Media planners have uses a building block strategy to develop a media schedule o The first or second “blocks” were relatively easy to determine o Most Nat’l advertisers used network television or magazines as the dominant medium o Change in Media Placement o Qualitative factors of media  Working with the creative team to understand the qualitative core attributes of each medium to their TA

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Core values interact with advertising messages to enhance or diminish the advertising  Experienced media buyer must be able to look beyond personal media preferences and determine the media vehicle that will best reach prospects o Fading distinctions among media  Technology is creating an environment where distinctions among media are fading o Media accountability  Networks also have distinctive brand identities that appeal to certain demographics and buyer categories  Advertising accountability means that businesses want to be able to link their advertising to specific sales of their brands o Value-added opportunities  A way to encourage advertisers to spend more money while providing them with things that have worth to the advertiser  Can be anything from product placements, event sponsorship or remote broadcasts  Limited only by the collective imagination of the media planners and the media sales representatives Consumers will have much greater control over communication outlets, selecting only those entertainment, information, and advertising messages they want Target Audience o Media plan encompasses a number of factors involving both marketing strategy and advertising tactics  Aimed not only at fiding demographic niches but also at identifying consumer needs and the product benefits that meet these needs  Required that media plans maximize delivery of prospects as opposed to people of households  Media Planners, until recently: tended to concentrate on overall audience delivery by various media o Most common measure of efficiency during a period is CPM  CPM= (Ad Cost * 1000) / circulation o Primary communication considerations by media planners  Creative predispositions of audience  Qualitative environment of the message  The synergistic effect  The creative approach o Possible weighted CPM adjustments to take into account communication factors  Probability of exposure to a medium  Advertising exposure weights to equalize the probability of an advertisement being seen  Communication weights to equalize the probability of an advertising message communicating  Frequency of exposure weights in the same medium o High levels of audience involvement with a medium are positively related to advertising response  Attempts to address this relationship in the media-planning process  Give accurate estimates to the value of the audiences of various media Claritas’ Potential Rating Index by Zip Market (PRIZM) o Shortcoming of many audience analysis methods is that they consider only a single variable o Media planners realize that a multivariable approach is often needed to correctly identify a particular target segment o One of the most innovative methods: Potential Rating Index by Zip Market  System developed by the Claritas Inc. PRIZM NE divides the population into fourteen social groups

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 Primary variables for determining these social groups are lifestyles and income Communication Requirements and Creative Elements o Manner in which art directors, copywriters, and media planners have begun to engage in the process at the strategic level rather than simply seeing their role as executing someone else’s advertising plan o Value-added opportunities, necessary for both the creative and media teams to know what opportunities are most desirable for a brand to pursue o Major criticism of advertising execution was that media and creative functions did not have enough knowledge of what each area was doing within the campaign strategy o Cooperation has been necessitated by the convergence of media outlets, new media technology, and greater opportunities for interactive approaches to audiences Geography- Where is the product distributed? o Geographical considerations are among the oldest factors in buying media o Planner may be dealing in ZIP Codes and block units, or even individuals o Media planners not only need to know where prospects are located but also how consumers in different areas rate in terms of current and future sales potential o Common method of relating sales, advertising budgets, and geography is brand-development index(BDI) o regional differences in product usage require many firms to develop a secondary, localized media plan to supplement hteir national media schedule o research data that allows advertisers to define their markets and media technology more narrowly to reach these segments become more readily available o we will see an even greater use of localized media Media Tactics: Reach, Frequency, Continuity, and Budget o media planner deals with four primary elements in developing the final media schedule 1. Reach  also called coverage  the number of different people exposed to a single medium 2. Frequency  The number of times that each person in the audience is exposed to the media schedule 3. Continuity  The length of time over which a campaign will run or the length of time that reach and frequency will be measured  Important that the continuity over which these elements are measured be clearly stated 4. Budget  The major constraint of any advertising plan  Core consideration in all media planning is the budget  The overriding constraint on the total weight of the advertising schedule is the budget o Planner must determine the most efficient and effective media to achieve already determined marketing and advertising objectives o Value of each media vehicle should be measured according to three criteria  the cost of the vehicle  the number of target market members or the weighted target market quality of the audience reached by the vehicle  the effectiveness of the advertising exposures the vehicles deliver  the communication or qualitative component o Reach, frequency, and continuity must be balanced against the demands of a fixed budget o The media planner has control over reach and frequency o Budget is a strategic decision largely determined by the client o The length of most campaigns is 1 year o Must also consider the balance between the least-expensive media (efficiency) o Thos most able to communicate the core message and reach the best prospects (effectiveness)

A medium is not efficient if it is not first effective at communicating the message to the target audience o Media planning has changed with a move from the goal of audience accumulation to one of measuring the effectiveness of audience reached The Media Schedule o Final steps in the media-planning process is the development of a detailed media schedule o The calendar or blue print for the media portion of the campaign o The schedule must offer in specific detail exactly o what media will be bought o when they will be purchased o how much time or space will be used for each advertisement or commercial o concern level of broadcast buys is time availability o process of broadcast buying has improved in recent years through the introduction of electronic data interchange (EDI) o a means of connecting the agencies, clients, and media involved in the buying process in a paperless system that allows the exchange of insertion orders and electronic invoicing o more efficient than former approaches to media buying, but it also significantly reduces errors by decreasing the number of people involved in the buying and billing process o another electronic media-buying process is available on the Internet o Flighting o One of the most used advertising scheduling technique o Consists of relatively short bursts of advertising followed by periods of total or relative inactivity o Factors to be considered before use  Competitive spending  Timing of flights  Advertising decay  Secondary media o Less extreme form of flighting is called pulsing  Use advertising more or less continuously throughout the year but with peaks during certain periods  Peaks coincide with primary sales periods or a special promotion during contests or sweepstakes o The Pressure of Competition o Media planner must not only develop an effective campaign for a product but also do so in a way that distinguishes his or her client’s brand from the competition o Primary fuctions of an advertising agency is to bring an objective voice to the table o Key point is that advertisers should undertake a thorough and candid appraisal of all aspects of the competitive situation o A media buyer becomes an integral member of the campaign team o The Budget o Advertisrs and their agencies have reacted to this cost squeeze by instituting more stringent cost controls and accountability for their advertising dollars o In response to increases in advertising costs, advertisers are more precisely defining their prospects to cut down on waste circulation and are negotiating more aggressively with media for time and space o o o o o o Media planner: Responsible for the overall strategy of the media plan. Media buyers: Execute and monitor the media schedule developed by media planners. Convergence: The blending of various facets of marketing functions and communication technology to create more efficient and expanded synergies. Engagement: The delivery of attentive consumers from a media vehicle to the advertising. Media plan: The complete analysis and execution of the media component of a campaign. Cost per thousand (CPM): A method of comparing the cost for media of different circulations. Also, weighted or demographic cost per thousand calculates the CPM using only that portion of a medium’s audience falling into a prime-prospect category.

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Potential Rating Index by ZIP Market (PRIZM): A method of audience segmentation developed by Claritas Inc. Value-added opportunities: Extra things a medium will do for or provide to an advertiser that add value to the purchase of time or space in the medium. Brand-development index (BDI): A method of allocating advertising budgets to those geographical areas that have the greatest sales potential Frequency: In media exposure, the number of times an individual or household is exposed to an advertising vehicle for a specific brand within a given period of time Media schedule: The detailed plan or calendar showing when advertisements and commercials will be distributed and in what media vehicles they will appear. Flighting: Flight is the length of time a broadcaster’s campaign runs. Can be days, weeks, or months—but does not refer to a year. A flighting schedule alternates periods of activity with periods of inactivity.


				
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