Offering Media Alternatives Evaluating and Selecting Media

Offering Media Alternatives

Evaluating and Selecting Media Vehicles TV • Target audience • Rating • Share • Dayparts • Reach • Frequency • CPP/Sec • Advertising clutter • Channel reputation • Ad position • Available discounts

Strengths TV SWOT Analysis Weaknesses • Builds relationships with audience, has impact on different emotions: audial, visual and dynamic • Increases brand awareness because it provides fast and high level of reach. • Has effect in a short period of time • Persuasive medium • Part of home and have high impact within home • Measurable • High production cost • High clutter • Waste investment for small sized target audiences Opportunities Threats • Sponsorship opportunities • Rise of digital media • Provides customized content for • Intense usage of competitors from the focused target audience same product category

Evaluating and Selecting Media Vehicles Print • Reach • Net Sales • Target Market • Pass-along readers • CPT • Editorial features • Special editions • Color reproduction • Geographic flexibility • Positioning opportunuties • Advertising clutter and product protection • Advertising copy checking and product restrictions • Response to coupons, information or recipes • Available discounts

Evaluating and Selecting Media Vehicles Print Contd. . . • Writing tone • Reader respect • Leadership in media class • Believability

Newspaper SWOT Analysis Strengths Weaknesses • Give detailed information • Immediacy • Trustworthy relationship with newspaper/ trust attribution to brand • Regional flexibility in most of the countries • Possibilty of low production quality • Short shelf life • High cost in the use of big and colorful advertisements • Reach in a short period of time • Flexibility in size, format and use of space Opportunities Threats • More target group oriented through the increase on newspaper sections and supplements • Complementary of other media • Provide more impact and recall for large sizes • Loyal readers of specific publications • Fragmanted audiences • Circulations of some newspapers do not depend on sales • Clutter

Magazine SWOT Analysis Strengths Weaknesses • High reader participation for particular magazines/ interactivity • Relationship identified with the magazine • Long-lived messages • Detailed visual usage: More detailed information • Not easy to use as much as TV after making decision • Slow in building reach Opportunities • Coupon distribution for database support • Being subject-oriented: travel, music, cinema, sport • Adaptation of visual changes into the magazine content • Relationships through sponsorship, PR and advertorial content • Sampling Threats • Clutter • Variety and plurality of magazines

Evaluating and Selecting Media Vehicles Radio • Target audience • Format • Reach • Radio listenership • Ad position • Second price

Radio SWOT Analysis Strengths • High reach in breakfast time • Personal contact through favorite DJ’s and the programs with high participation • Flexibility • Ability to reach in a short time • Provides frequency Opportunities • Special sponsorship opportunities: Breakfast time • Completing each other with TV: a good way to extend campaign duration with low budget • Opportunity to broadcast your advertisement before shopping time • Thematic channels for niche target audiences • Regional flexibility • Opportunity to listen in the car Weaknesses • It can be background medium • Easy to be distorted, impossible to go back • Limited measurability • Difficult to have a long term reach Threats • Fragmentation • Clutter

Evaluating and Selecting Media Vehicles Cinema • Ticket sales • CPT • Target audience • Popularity of the films • Places of the movie theaters • Ad position

Cinema SWOT Analysis Strengths • High impact Weaknesses • Low level of reach in total • Young audience • Long-term use Opportunities • Cinema packages • Foyer activities • Product placement in movie theaters Threats • Video s and DVDs

Evaluating and Selecting Media Vehicles Outdoor • Visibility • Traffic flow • Place • Target audience • CPT

Outdoor SWOT Analysis Strengths Weaknesses • High impact • Long preparation phase • Closeness to point of sale • Expensive • Branding medium • Difficult to measure • High level of reach and frequency • No detail in advertisements • Difficulty in focusing a specific target audience Opportunities • Creative application opportunities • Innovation • Special printing techniques • Improvement of material quality Threats • Used for competition • Difficulty in evaluating its impact

Ambient Media • New breed of out-of-home products and services determined by some as non-traditional or alternative media. • Can be used in conjunction with mainstream traditional media, or used equally effectively as a stand-alone activity. • Ambient media in a larger scale define the media environment and the communication of information in ubiquitous and pervasive environments. • Good for brand awareess and top of mind recall within target audeinces. • Ambient media can produce mass attention in centralized locations, or directly interact with consumers during normal every day activities.

Ambient Media Examples • • • Backs of car park receipts Hanging straps in railway carriages Handles of supermarket trolleys Projecting huge images on the sides of buildings Slogans on the gas bags of hot air balloons ….

Evaluating and Selecting Media Vehicles Internet • Target audience • Impression • Click through rate • CPT

Making the Media Buys

Key points in media buying and negotiation • • • Negotiation Skills Media dynamics Objective of the buy Costs vary History of buying Media trends Good relations with media representatives Fair negotiation Last-minute opportunities Added value Mutual respect

Types of Media Buying • Cpp/sec. or GRP based • Package • Bulk buying • Stand by • Barter

Factors in determining the size of an advertising budget • Assesing the task of advertising • Long and short term goals • Profit margins • Degree of product usage • Difficulty in reaching target markets • Frequency of purchase • Effect of increased sales volume on production costs • New product introductions • Competitive activity

Setting the budget Main issues to know while setting the media budget • Beginning of the marketing year • Net budget Gross Budget includes agency commission and VAT. Gross Budget=Net Budget+Agency Com. +VAT

How much money is available for media? Ex: The client says they have 200. 000 USD. The budget is gross. What is the net budget? (AC is 15% including media agency and creative agency commission) Net Budget= 200. 000/1. 15/1. 18=147. 383 USD

How much money is available for media? Ex: The client’s gross media budget is 75. 000 USD. What is the net budget? (AC is 3% including only media agency commission) Net Budget= 75. 000/1. 030/1. 18=61. 700 USD

How much money is available for media? Ex: Media planner’s net newspaper budget is 25. 000 USD. What is the gross budget for the client? (AC is 3, 5%) Gross Budget= 25. 000*1. 035*1. 18=30. 532 USD

Calculating Budgets of Each Medium Measured channel: Tv Budget = cpp/sec. x GRP x Avg. Film Sec. Example: We are planning to get 800 GRP in one month. Our cpp/sec. is 6, 8 USD, and our avg. film length is 15 sec. What is our tv budget for measured channels? Tv budget= 6, 8 x 800 x 15=81. 600 USD

Calculating Budgets of Each Medium Non measured channel Tv Budget = sec. price x Avg. film length x # of spots per day x # of days for non measured channels Example: We are planning to use NTV for 30 days with a 30 sec. advertising film. Second price for NTV is 7 USD, and we will use 4 spots per day. What is the budget for NTV? Tv budget for NTV= 7 x 30 x 4 x 30=25. 200 USD

Calculating Budgets of Each Medium Newspaper Budget = price of one clm. cm. x clm*cm x # of insertions Example: We will use Hurriyet in our plan. One clm*cm for Hürriyet is 30 USD. The size of our ad is 5 clm*25 cm. We will have 2 insertions in Hurriyet. What is the budget? Budget = 30 x 125 x 2=7500 USD

Calculating Budgets of Each Medium Radio Budget = second price x radio spot second x # of spots per day x # of days Example: Sec. price for Power Fm is 10 USD. We have a radio spot for 30 sec. Our plan is using 5 spots per day for 20 days. What is the radio budget? Budget=10 x 30 x 5 x 20= 30. 000 USD

Calculating Budgets of Each Medium Outdoor Budget = unit price x no of bb. x # of weeks Example: One billboard costs 50 USD for one week in Istanbul. We will buy 500 billboards for 2 weeks. What is the budget? Budget=50 x 500 x 2 =50. 000 USD

Calculating Budgets of Each Medium Internet budget= cost per thousand for planned impressions*(planned number of impressions/1000) Example: Cost per thousand impressions in Superonline movies web page is 2 USD for a 300*250 pixel banner. What is the budget if we plan to get 1. 200. 000 impressions from this page? Budget= 2*(1. 200. 000/1000)=2. 400 USD

Calculating Budgets of Each Medium Example: We will advertise for Algida Magnum in May. Media mix we are planning to use is as follows: • TV: Measured channels with 7, 8 USD cpp/sec, 850 GRP, 30 sec advertising film; Non measured channels with 10 USD for one second, 4 spots per day for 30 days. • Outdoor: 200 Billboards for two weeks. Unit price for one billboard is 50 USD • Radio: Spot length: 30 sec, one sec. price=5 USD, 15 days, 5 spots per day • Newspaper: 4 clmn*25 cm ad, 48 USD per one clmn*cm, 5 insertions What is our gross budget for Magnum in May if the agency commission is 3%?

Calculating Budgets of Each Medium Calculating the budget of each medium: TV: Measured channels: 7, 8 USD x 850 GRPx 30 sec. = 198. 900 USD Non measured channels: 10 USD x 30 sec. x 4 spot x 30 days = 36. 000 USD • Outdoor: 200 billboards x 50 USD x 2 weeks = 20. 000 USD • Radio: 30 sec x 5 USD x 15 days x 5 spots = 11. 250 USD • Newspaper: 4 clmn x 25 cm x 48 USD x 5 insertions = 24. 000 USD Total net budget= 198. 900 + 36. 000 + 20. 000 + 11. 250 + 24. 000 = 290. 150 USD Gross budget = 290. 150 x 1, 030 x 1, 18 = 352. 648 USD

Thank you…