Topic Media Objectives Basic Components see Media Workbook

Topic: Media Objectives Basic Components (see Media Workbook #26) 1. Reach, Frequency (and GRPs & GIs) & effective reach/frequency, if desired 2. Continuity (advertising timing pattern) 3. Specification of Targets (primary, secondary) 4. Special Geographic Emphasis (national vs. spot or national with regional/spot-heavy up) Also basic are: n Restrictions/Implications from Budget, Creative Strategy, Sales promotion

Topic: Media Objectives 1. Reach, Frequency, ER, EF (and GRPs, GIs) a. Specify reach and frequency, (and GRP) goals desired for each month or each flight or each quarter or overall campaign period on average e. g. , January: R = 80%, F = 5 Quarter 1: R = 80% F = 7 Overall campaign R = 70%+, F = 6

Topic: Media Objectives 1. Reach, Frequency (and GRPs) b. Example of Reach and Frequency Goals 1. Achieve a minimum reach level of 80 with adults women aged 35 -54 during the two introductory months 2. Maintain at least 50% reach in each advertising period and maximize when sales promotion runs (in February and October) 3. Maximize reach and frequency during sales peaks (September – November)

Topic: Media Objectives Basic Components C. Definitions Reach and Frequency n % of different targets or households exposed to a vehicle or schedule at least once over a specified (typically 4 -week in broadcast) period = Reach n average # of times the reached households or target are exposed to a schedule over a specified (typically 4 -week in broadcast) period = Average Frequency

Topic: Media Objectives Basic Components GRPs and GIs Both indicate gross delivery of (ad or vehicle) exposures §Gross Impressions (Gis) are expressed as an absolute number e. g. , 240 million GIs n Gross Rating Points (GRPs) are expressed as a percent (of total population or) target population e. g. , 2400 GRPs

Topic: Media Objectives Basic Components C. Definitions Effective Reach and Frequency n The number or a range of exposures required to produce a desired impact (e. g. , sales, brand awareness, brand liking, . . ) -- 3+, 4+, 3 -10, = Effective Frequency n Number or % or targets exposed the required number of times = Effective Reach

Topic: Media Objectives Basic Components Relationship among Reach, Frequency, GRPs, & GIs § GIs: Reach (as number) X Average Frequency § GRPs: Reach (as percent) X Average Frequency § With reach and frequency goals set, you’d know how many GRPs should be bought.

Topic: Media Objectives Basic Components v Reach X Frequency = GRPs Example Period Q 1 Reach 80 Frequency 6 GRPs 1440 = 80 X 6 X 3 Q 2 60 7 1260 = 60 X 7 X 3 Q 3 80 5 1200 = 80 X 5 X 3 Q 4 50 8 1200 = 50 X 8 X 3

Topic: Media Objectives Basic Components 1. Reach, Frequency (and GRPs) d. How to Set Reach and Frequency Goals -- The desired levels will depend on various situational factors § Reach Decided according to the awareness level (goal) set -- e. g. , 2400 GRPs/80% reach 70% awareness? Set equal to or higher than the main competition

Topic: Media Objectives Basic Components 1. Reach, Frequency (and GRPs) d. How to Set Reach and Frequency Goals -- The desired levels will depend on various situational factors § Reach Emphasized When anything new is introduced - new distribution, new product features, new ad copy, new sale promo, new packaging, new marketing/advertising objectives

Topic: Media Objectives Basic Components 1. Reach, Frequency (and GRPs) d. How to Set Reach and Frequency Goals -- The desired levels will depend on various situational factors § Frequency Emphasized When the competition is intense The question is: how much frequency is necessary

Topic 3 -1 A: Media Objectives B. Basic Components 1. Reach, Frequency (and GRPs) d. How to Set Reach and Frequency Goals Other Marketing Factors to Consider: Product Life Cycle, Breadth of Target, Purchasing Cycle, Budget

Topic: Media Objectives Basic Components d. How to set reach & Frequency Goals § Product Life Cycle (PLC) u For products in the introductory stage of Reach product life cycle, _____ tends to be more important. F e. g. Toyota Matrix, u For established products in later life cycle stages such as maturity stage Frequency _____ tends to be more important. F e. g. Tide, Pillsbury Cookie Dough, Coca Cola

Topic: Media Objectives d. How to set reach & Frequency Goals § Breadth of Target Market u If target is broadly defined demographically or geographically, Reach _____ would be more important. target is narrowly defined, Frequency _____ would be more important. u If

Topic: Media Objectives d. How to set reach & Frequency Goals § Purchasing Cycle (PC) u For products with short PC (e. g. , ), Frequencymay be more important; For products _____ Reach with long PC (e. g. , ), _____ may be more important.

Topic: Media Objectives D. How to set reach & Frequency Goals §R/F objectives must also give adequate consideration to: budget, promotional needs, stage of the campaign

Topic 3 -1 A: Media Objectives 1. Reach, Frequency (and GRPs) e. How to Set Effective Reach/Frequency Goals Joseph Ostrow’s Model (pp. 249 -252): Marketing Factors, Copy Factors, Media Factors May discard some of Ostrow’s categories and add your own categories (see GS #21)

Topic: Media Objectives 2. Continuity a. Three Basic Continuity Strategies: Continuous: advertising effort remains relatively constant throughout Flighting: advertising effort varies over the campaign period, with some periods of time receiving no advertising ("HIATUS") Pulsing: advertising effort is notably varied with some advertising during every period

Topic: Media Objectives 1. Continuity b. How to determine continuity strategy n Factors to consider u Seasonality of Sales u Purchase Cycle u Product Life Cycle u Budget u Others – Competition, Ad Goals,

Topic: Media Objectives 2. Continuity n When Is Each Continuity Strategy Useful? Continuous: Short PC, Mature PLC, Reminder Campaign Goals, Lack of Brand Loyalty , Media Discounts, Better Vehicle Choices & Ad Positions, Intense Competition, Flighting: Seasonal Products or with Limited Budget, Long PC, Ability to Build Frequency/Familiarity for a Short Time, Introductory PLC Pulsing: Best, safest approach for products sold year round, those with distinctive seasonality of sales, Intense Competition,

Topic: Media Objectives 1. Continuity n Other Consideration in Ad Scheduling u When sales are greatest or lowest u When competitors advertise

Topic: Media Objectives 3. Putting the R/F components Together § Budget Recap Table

Topic : Media Objectives D. Budget Re-Cap (Example)

Topic: Media Objectives B. Basic Components Example: Time Period Media Goals 1. Jan / Feb Reach Frequency 80% (Hi) 5 (Med) 2. Mar / Apr 60% (Med) 7 (Med) 3. May -- -- 4. Jun / Jul / Aug 50% (Med) 3 (Lo) 450 50 X 3 mo. 5. Sep / Oct / Nov 80% (Hi) 9 (Hi) 2160 80 X 9 X 3 mo. 6. Dec -- -- Campaign Ave. = GRPs Cal. (R X F X Months. ) 800 80 X 5 X 2 mo. 840 0 0 Total GRPs= 60 X 7 X 2 mo. -- --

Topic: Media Objectives B. Basic Components 3. Putting the Basic Components Together § Do your decisions above reflect your planned objectives? § What could be some of the reasons for the low reach/frequency goals in Period 4? How about “hiatus’ in May and December? § How do you calculate campaign average?

Topic 3 -1 A: Media Objectives Guidelines in Setting Goals -- Fundamental tradeoffs • Maximizing reach, frequency, and continuity is an unattainable goal. Because of budget constraints 1. How can tradeoffs be made between reach & frequency? 2. How can tradeoffs be made in determining continuity strategy

Topic 3 -1 B: Media Objectives More Terms and Calculations: § Frequency Distribution § Effective Reach, Effective Frequency § GRPs, GIs § Relationship among Reach, Frequency, GRPs, and GIs

Topic 3 -1 B: Analytical Terms & Decision Criteria Reach, Average Frequency, Freq. Distribution § Frequency (or Exposure) Distribution 0 exposures 1 exposures 2 exposures 3 exposures ------- total population 10 20 15 5 § # persons or households reached? 50 § % reached? 20 + 15 + 5 = 40 40 X 100 = 80 50

Topic 3 -1 B: Analytical Terms & Decision Criteria Reach, Average Frequency, Freq. Distribution § Average Frequency 0 exposures 1 exposures 2 exposures 3 exposures ------- total population 10 20 15 5 50 n Average Frequency? = # of total exposures that occurred # reached (20 X 1)+ (15 X 2)+(5 X 3) = 40 20+30+15 65 = = 1. 62 40 40

Topic 3 -1 B: Analytical Terms & Decision Criteria Reach, Average Frequency, Freq. Distribution n How are reach and frequency used in media planning and buying? u used in setting media objectives (e. g. , 75% reach and 3 frequency in January) & in evaluating value of a schedule (Does this media schedule deliver the set reach and frequency goal within the budget? )

Topic 3 -1 B: Analytical Terms & Decision Criteria Relationship among Reach, Frequency, GRPs, & GIs n With a given level of GRPs, R/F are inversely related Example 1: If you buy 120 GRPs, and avg. frequency of exposures among target should be 6 in June, what will be your campaign’s reach in that month? GRPs = 120 AF = 6 R 20 = Example 2: Given the budget for a GRPs of 120, if you have to reach at least 40% of target, what frequency can you expect the schedule to deliver? GRPs = 120 R = 40 AF = 3

Topic 3 -1 B: Analytical Terms & Decision Criteria GIs and GRPs n GIs = (GRP/100)X Pop. GRPs for a media schedule = sum of all ratings delivered in the schedule Example: Assuming the population base of 93. 1 million TV homes, what GRPs and GIs will this schedule deliver? 40 + 60 + 50 = 200 GRPs; 37 m+56 m+47 m = 187 m GIs Prog. Rating # Spots GRPs GIs A 20 2 20 X 2=40 0. 4 X 93. 1 M=37. 24 M B 15 4 15 X 4=60 0. 6 X 93. 1 M=55. 86 M C 25 2 25 X 2=50 0. 5 X 93. 1 M=46. 55 M D 10 5 10 X 5=50 0. 5 X 93. 1 M=46. 55 M

Topic 3 -1 B: Analytical Terms & Decision Criteria Relationship among Reach, Frequency, GRPs, & GIs n n What happens if you raise GRP level? As GRPs are added, reach will builds at a decreasing rate while frequency will build at an increasing rate.

Topic 3 -1 B: Analytical Terms & Decision Criteria Relationship among Reach, Frequency, GRPs, & GIs § GRPs or GIs include duplication of audience: GIs: Reach (#) + Duplication (#) GRPs: Reach (%) + Duplication (%)

Topic 3 -1 B: Analytical Terms & Decision Criteria Relationship among Reach, Frequency, GRPs, & GIs § Audience duplication info is necessary to estimate reach Reach: GIs - Duplication (all in #) Reach: GRPs - Duplication (all in %)

Topic 3 -1 B: Analytical Terms & Decision Criteria Effective Reach & Frequency § Presentation Effective Frequency: Effective Reach: