Advertising Media Strategy by rrj74306

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									         ADV. MEDIA STRATEGY & TACTICS
                 COURSE NOTES
                    FALL 2003




Topic

   Planning/Buying Individual Media             1-28

        Newspapers                                  1
        Magazines                                   8
        TV                                         11
        Radio                                      16
        Outdoor, Transit                       20, 23
        Direct Mail, Other Media               26, 28

   Comparison of Advertising Media (Summary)      29

   Media Schedule Comparions/Selection            30

   Model-Based Media Planning Process          31-32
Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003                      Page 1

             PLANNING/BUYING MEDIA -- NEWSPAPERS

I. CLASSIFICATION (7 Categories)

A. Daily

       Total --- _______ in U.S. [about 70% are chains]

       Predominantly ________ (in $)

           -- Use of dailies (and weeklies) is logistically prohibited for national
               advertisers

       National (daily) newspapers include:


B. Sunday -- around 840

       Do people read Sunday papers differently from dailies? How?




C. Weeklies -- around 7,500

       Two types (rural and suburban) and their media implications:




D. Special Interest

       Include foreign language, religious, African-American, labor,
   financial papers, etc.

       Have magazine-like characteristics:



       Noted for audience selectivity.

E. Supplements or Supps [Sunday magazines]



                                           2
National (________, __________, _________)

Local [Most]




                             3
Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003                  Page 2



F. Sunday Comics

       National (Metro-Puck)

       Local -- Bought thru "_________"


G. Pre-Print Advertising/Inserts -- typically distributed through supplements

       Magazine-like color reproduction

       Two Color Options (Strengths/Weaknesses)


           ROP (Run-of-Paper or Run-of-Press):



           Pre-print inserts:



       Current examples: multi-page inserts, free-standing inserts (FSI), cards,
       envelopes, product sample, etc.




                                           4
Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003      Page 3

II. WHY OR WHY NOT USE NEWSPAPERS?

       Read the textbook and fill in the space following




                                           5
Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003   Page 4




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Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003               Page 5

III. TACTICS OF BUYING NEWSPAPERS


A. Who provides newspaper information?

       Circulation information:

       Audience information:

       Rates (cost) information:


B. What ad sizes are available?

       SAU (Standard Advertising Unit) system for determining ad sizes and
       rates: [See handout]


C. Advertising Rates -- Column inch is the basis


   1. Column inch (New, SAU-based) vs. Agate line (Old System)

       One column inch = 1 column (width) by 1 inch (depth)

       One column inch = ____ agate lines.


   2. Open Rate vs. Flat Rate

       Flat rate:

       Open rate:




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Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003                Page 6

   3. Short Rating and Rebating:

       _______: advertiser pays for the rate difference when the volume or
       space actually purchased is less than that signed for the year; ________:
       vehicle pays for the rate when the actual purchase is more than that
       singed for.

       Examples:
       Suppose you contracted for                                   inches of buy in
       LA Times. If you, however, end up buying                           inches,

       a) How did you contracted for? How much did you buy (in column inches)?




       b) Which rate system is applicable to your buy? How much are you short?
       [assume $48 column inch rate for 8,000 column inches of buy, $45 for 10,000
       and $43 for 12,000]




       c) how much rebate would you get if you end up buying 12,000 column
       inches?




                                           8
Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003                Page 7

   4. Color Rates ("extra" charges to be added to the B&W rates)

       -- Note the color "add-on" charge applies to ______________


D. Vehicle Comparisons by CPM

   CPM =




IV. SOME ADDITIONAL MATTERS/SIGNIFICANT TRENDS


A. Rate Differential: National advertisers pay _______% more than retailers.


B. Newspaper Readership [done yearly by SMRB] -- who reads newspapers?

    ____% of all adults read a daily newspaper

   Readership vary by selected demographics:

       45 to 64 -- 68/69% [vs. 18-24 -- 57%]
       Graduate college -- 75% [ vs. 41% did not attend H.S.]
       $50K+ HH income -- 75% [vs. 44% less than $10K]

       Summarizing the pattern of newspaper readership (in your own words):




                                           9
Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003              Page 8

                                     MAGAZINES
I. CLASSIFICATION -- 3 Categories:

A. Consumer magazines-- ______ vehicles & ____ editorial classes

B. Farm (Agricultural) publications

C. Business publications [separate SRDS]

   1. Industrial

   2. Merchandising (Trade)

   3. Professional


II. WHY OR WHY NOT USE MAGAZINES?

       Read the textbook and fill in the space following




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Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003   Page 9




   Additional Characteristics:

   1. Relatively "easy to buy" medium, why?

       a.

       b.

       c.


   2. Guaranteed circulation -- Rate base:




                                           11
Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003             Page 10

III. TACTICS OF BUYING MAGAZINES

A. Who provides magazine information?

   1. Circulation:

       Consumer magazines:

       Farm Publications:

       Business Publications:


   2. Audiences (extensive audience data is available for consumer magazines):



   3. Rates:




C. Some Important Terms

Total Audience = Primary + Secondary (Pass-Along) Audience


       Primary Audience:


       Secondary (Pass-Along) Audience:


       How helpful are they to a media planner?


D. Vehicle Comparisons by CPM



    CPM =




                                           12
Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003   Page 11

                                     TELEVISION

I. CLASSIFICATION -- 6 Categories

   Network:

   Cable Network:

   Syndication:

   Spot National:

   Spot Local:

   Non-network or Local Cable:


II. WHY OR WHY NOT USE TELEVISION?

   Read the textbook and fill in the space following




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Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003   Page 12




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Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003                    Page 13



A. Some data illustrating TV's ability to deliver broad coverage of audiences:

   • TV Households -- ____% of all households in U.S.

   • Multi-set ownership -- 65%

   • Cable -- ____%

   • Average percent of households using TV [ ______ ]:

       Weekday -- ____%
       Primetime -- ____%

       If you use "Roadblock;" networks + cable networks, what % of population will
       you get?

   • Average Program Ratings:

           Daytime --
           Primetime --


B. Additional Characteristics:

   1. Large dollars outlay required (especially, for network)... yet CPM can be low

           Average PT :30 sec -- $              [CPMs -- $   -$      ]

           Top-rate shows -- $

   2. Complex medium to buy - why?

           a.

           b.

           c.

           d.


   3. In primetime, HH's TV usage varies across seasons: {see Marketer’s Guide
to Media}




                                           15
Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003   Page 14

III. TACTICS OF BUYING TELEVISION

A. Who provides television information?

   Audience (ratings):     Network --

                           Spot --

   Cost/Rates:             Network --

                           Spot --



B. Costing a TV Buy

   Examples




                                           16
Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003   Page 15

IV. More Trends on TV (Marketer’s Guide to Media)




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Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003   Page 16


                                         RADIO
I. CLASSIFICATION

   A. Network -- Wired vs. Nonwired

   B. Spot

   C. Local


II. WHY OR WHY NOT USE RADIO?

   Read the textbook and fill in the space following




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Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003                Page 17




A. Some data regarding radio's reach potential:

   • ___% of all HHs have at least 1 radio set; average # of sets per home = 6

   • Radio reaches ___% of people 12+ each day; ___% in a week

B. Additional Characteristics:

   1. Can get audience selectivity

           By Daypart:

           6-10 am -- Morning Drive (AMD) [most expensive daypart]
           10-3 pm -- Daytime (DT)
           3-7 pm -- Afternoon Drive (PMD) [next most expensive]
           7-midnight -- Evening (ET or NT)

           -- Why are drive times more expensive?



           By Station "Sound" Format -- Adult Contemporary Rock (ACR),
                 Country & Western (CW), News/Talk .....




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Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003                  Page 18

III. TACTICS OF BUYING RADIO

A. Who provides radio information?

   1. Audience:

           Network --

           Spot --

   2. Cost or Rates:

           Network --
                 But, cost estimates are available by ad agencies
                 [:30s in network radio are 50% of :60s]

           Spot --
                  Frequency discounts [6 per week,13 per week, etc.]
                  Cost estimates are also available
                     [:30s in spot radio are about 80% of :60s]

B. Vehicle Comparison by CPM




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Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003   Page 19

IV. More about Radio {See Marketer’s Guide to Media}




                                           21
Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003                  Page 20

                                       OUTDOOR

I. CLASSIFICATION ["STANDARDIZED" OUTDOOR] -- 3 Categories


A. Posters (46% of volume)

   -- Produced in large quantities

   -- 30-sheet and bleed are common ["horizontal' in layout]

       Some examples (to see):

   -- Junior Posters/Panels (to reach pedestrians) ["vertical"]


B. Painted Bulletins (54%, more money is spent)

   -- Individually painted and priced
           [bigger in size and higher in price]

   -- Characterized by special designs

           Some examples (to see):

   -- Rotary Plans:




C. Spectacular

   -- Custom-built (electronic or non-electronic) displays using extensive lighting,
     movement, and intricate designs


           Some examples (to see):




                                           22
Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003   Page 21

II. WHY OR WHY NOT USE OUTDOOR?

   Read the textbook and fill in the space following




                                           23
Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003                    Page 22

III. TACTICS OF BUYING OUTDOOR

   -- Buy either from local plant operators or thru chains

   -- Buying posters and other classes differ


A. Posters (Illuminated vs. Non-illuminated)

   1. Buy according to _______________

   2. Three most popular buys are 100, 50, 25 GRPs

           What does 100 GRPs mean?

           100 GRPs or Showing = 100% delivery of the local population??




   3. Base buy is _________


   4. Cost/Rates:

       a. Sources for precise costs:

           -- cost estimates for buying top 10, 20, . . . , 100 markets available

       b. Example:



B. Painted Bulletins/ Spectacular (Most are illuminated)

   1. Priced by individual unit

   2. Base Buy is __________

   3. No standard basis for setting rates




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Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003                   Page 23


                                        TRANSIT

I. CLASSIFICATION ["STANDARDIZED" TRANSIT] -- 3 Categories


A. Interior Transit:


B. Exterior Transit:

       Standard sizes: tailgaters (back), headlighters (front), king-size, queen,
          traveling displays (sides), Bus-O-Roma (top)

C. Station Posters:




II. WHY OR WHY NOT USE TRANSIT?

   Read the textbook and fill in the following




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Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003             Page 24

   Some Important Characteristics:

   1. Exterior:

       a.


       b.



   2. Interior:

       a. Longer copy can be used


       b. High frequency can be built


III. TACTICS OF BUYING TRANSIT


A. Buy from local transit systems [or thru media reps]

B. Base buy for transit advertising is ____
      [frequency discounts available for longer contracts]

C. Priced based on


   1. Exterior: "________" -- 100, 50, 25, like outdoor posters



   2. Interior: "________" -- full, half, quarter, double run


D. Costing a buy [Interior and Exterior]


   -- Who provides cost information for transit?

       Cost estimates for buying top markets are available




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Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003   Page 25

IV. More on Outdoor and Transit Trends




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Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003               Page 26

                                     DIRECT MAIL

I. INTRODUCTION/CLASSIFICATION

-- How does the term direct mail differ from direct marketing?



-- Direct mail has not been classified any further.


II. WHY OR WHY NOT USE DIRECT MAIL?

    1. Does not interact with editorial matter -- May be an advantage or
       disadvantage. Why?




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Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003   Page 27

III. TACTICS OF BUYING DIRECT MAIL

A. Who provides direct mail information?

    1. Audience or Circulation:


    2. Cost/Rates: SRDS Direct Mail Lists
         Cost is shown $ amount per thousand names


B. Costing of Direct Mail [3 components]

   1.

   2.

   3.

        [3 approaches]:

        a.

        b.

        c.




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Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003   Page 28

                                    OTHER MEDIA
1. Specialties

   a.   Calendars
   b.   Wearables
   c.   Writing instruments
   d.   Others

2. Directories

   a. Yellow Pages (significant volume increase)
   b. Business Directories

3. Motion Picture Advertising

   a. "Commercials"
   b. Theater programs

4. Sporting Events

   a. Scoreboards
   b. Programs
   c. Posters

5. Shopping Carts and Bags

6. Airplanes [banners] and Blimps

7. (Bus) Benches and Shelters

8. In-store Media

   a. Island displays
   b. Check-out counter signs and monitors
   c. In-store television and radio
   d. Store receipts

9. Video Cassettes

10. Channel One

11. Kiosks




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Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003                         Page 29


COMPARISON OF ADVERTISING MEDIA (Summary)

              Broadcast TV     Cable TV          Radio       Magazines   Newsp     Newsp.    Outdoor Transit    Direct
Criteria    National Local National Local National Local (National)               Magazines                      Mail
_______________________________________________________________________________________________________________
Audience
Selectivity   Good    Good    Good    Good     Good    Good     Better    Good      Poor      Poor       Poor      Best

Reach
Potential        High     High      Low      Low      Average Average    Average        Low       Low      High     Average     High

Speed of Aud.
Accumulation     Fast     Fast     Fast      Fast       Fast    Fast       Slow         Fast      Fast     Slow      Slow       Fast

Geographic
Flexibility      Poor    Good      Poor      Best       Poor   Good       Good          Good     Good      Best      Good       Best

Lead time
needed to buy    Long    Shorter   Long     Shorter     Long   Shorter     Long         Short    Long      Long      Long      None

Ad Exposure     Mostly   Mostly    Mostly   Mostly      Yes     Yes         No           No       No        No        No        Yes
Control          Yes      Yes       Yes      Yes
                                                                         Primarily
Location at                                           Mostly   Mostly    in home;
time of          Mostly  Mostly  Mostly Mostly        out of   out of    heavy out    in home; Primarily   Out of   Out of    Primarily
exposure        at home at home at home at home       home     home       of home    out of home in home   home     home      in home
_____________________________________________________________________________________




                                                                  vii
Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003                Page 30


MEDIA SCHEDULE COMPARISON BY CPM AND CPM/ ER


   1. Use CPM/TM (Cost-per-Thousand Target Members), whenever possible


       a.


            Example: See handout "Comparing Alternative Media Schedules"


            CPM Schedule =



       b. If CPM is used as the sole schedule evaluation criterion, which
          schedule (in the handout) is the preferred choice?



   2. CPM/TM/ER (Cost-per-thousand Target Members Effectively Reached)


       a.



       b. If CPM /ER is used, which schedule is the preferred choice?




                                           i
Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003               Page 31

MODEL-BASED MEDIA PLANNING PROCESS

       -- Guidelines for Implementing the Plan through a computerized a media
       planning program such as Media Flight Plan



   1. Choose targets (MFP will only let you choose demographic groups)


   2. Set media (reach and frequency) objectives by month


   3. Allocate $ (or GRPs) by month


   4. Choose media (considering the factors discussed in the JBT textbook --
      these factors will be the reasons why the media are chosen)


   5. Set overall initial media mix and allocate weights to the media
      (considering the brand’s needs, targets, set media objectives, competitive
      usage of media, and other necessary factors)


   6. Determine mix and weights by month


   7. Allocate $ (or GRPs) for each medium by month


   8. Verify or modify decisions on mix, weights, and $ (or GRPs) for each
      month (this is a sort of "acid test" and will serve to give you an idea of
      what a workable, executable plan is like)




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Com 452, Adv. Media Strategy, Ju-Pak Notes, Fall 2003                   Page 32

   Note: Step 8 may be repeated till the best plan with all the details is
   worked out


       a. given $ (or GRPs) in each medium to spend


       b. make specific buys using MFP by month -- e.g., network TV daytime
       100 GRPs, magazines 30 GRPs, etc.


       c. find likely reach and frequency (i.e., see estimated performance part in
          the MFP)


       d. compare with the set monthly reach/frequency objectives (i.e., see
          theoretical needs in the MFP. If likely reach and frequency are well
          below the set objectives, go to Step 10; if not, go to either Step e or Step
          9.


       e. modify (i.e., change ad types/options or units/GRPs bought) and begin
          again from b




   9. Modify (scale down) the target and/or media objectives and go back to
      Step 1 or 2, and begin again. If no further improvement is warranted, go
      to Step 10


   10. Print every output for the month.




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