SEM1 3.08 Guided_Notes-R.20Burds[1].docx

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GUIDED NOTES 3.08 - PE - Manage media planning and placement to enhance

return on marketing investment

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PI - Determine advertising reach of sport/event media

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PI – Calculate media costs

I. Advertising Reach and Frequency

a. Reach and frequency are both _________________________ measures of advertising – often used to determine costs of media

i. _________________________ is the # of times you wish to expose a targeted audience to your advertisements

ii. _________________________ is the #of people in a targeted audience exposed to an ad or campaign at least one time during a designated time period

iii. _________________________ is found by dividing the target audience exposed to the ad by the total target audience

iv. Reach % = TA ÷ TTA

1. Example: The total target audience for the Carolina Tar Heels Football team is 1,500,000 and those exposed during an ad campaign is 375,000

2. _________________________÷ _________________________ = 25% 3. So ______________ of the total target audience saw the ad at least one time

v. _________________________, subscriptions or _________________________ are best used to determine & calculate reach data

vi. _________________________– is effective for consumer convenience goods like toothpaste (simple features)

vii. _________________________ - # or % of consumers in a targeted audience exposed to an ad a specific minimum # of times (more appropriate for targeted SEM consumers) WHY?

II. Media Costs – How to determine?

a. _________________________ (size of the audience) i. Is the most significant factor affecting media costs

ii. In most cases, the _________________________ the media vehicle’s audience, the

_________________________ the cost of advertising space or time will be. b. _________________________: Price lists showing rates for space or time

c. Production costs vary a lot across different _________________________

i. High-quality _________________________ and _________________________ ads cost a great deal to produce

ii. While _________________________ and _________________________ ads are relatively inexpensive to produce

d. __________________________________________________ of ad i. _________________________, (day, night, drive time)

ii. _________________________ of ads in print and broadcast media – what shows e. Available discounts

i. _________________________ – frequency of purchase - _________________________

f. _________________________

i. narrowly defined audiences demand higher rates g. _________________________

i. credibility & prestige may influence consumers reaction to an ad h. _________________________

i. high quality = higher costs

III. Media costs types – Absolute and Relative

a. _________________________

i. What is the total expenditure for an ad

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2. Cost for _________________________ and _________________________ purchased a. Check rate cards found in Standard Rate & Data Service (SRDS) directories for

time & space costs b. _________________________

i. To determine if one media type is more efficient or cost effective over another ii. Use _________________________ - based on cost per thousand

1. Often used in _________________________ and internet iii. Use _________________________ - based on cost per rating point

1. Often used in _________________________ media and outdoor

iv. Use _________________________ – based on gross rating points across a media platform

IV. Media costs – How to calculate?

a. Cost per thousand (CPM)

i. Multiply cost of the ad by _________________________ then divide by the number of people receiving the _________________________ (reach)

ii. CPM = _________________________________________________________________

b. Example:

i. Cost of ad is $50,000 ii. Total audience is 2,000,000

1. (_________________________ x _________________________) = $50,000,000 2. (_________________________ ÷ _________________________) = $25.00 c. Cost per rating point (CPRP) _________________________

i. Calculated to determine 1% of audience

d. __________________________________________________ (GRP)

i. (GRP) = (Reach (x) frequency) - to determine GRP and 240 GRP’s used as a standard of measurement

ii. The cost per GRP is determined by _________________________ the total advertising expense by the __________________ of gross rating points

iii. (GRP) cost = (Expenses ÷ GRP) e. Example:

i. Total advertising expense is $20,000 ii. The gross rating points for the show is 210

1. $20,000 ÷ 210 = $95.24

V. Media costs for different mediums

a. _________________________

i. Rates – how determined

1. _________________________ and_________________________ are primary factors – great for locals

2. less for local ads vs. national advertisers

3. information given through use of _________________________

ii. Types of rates

1. _________________________ – wherever newspaper places the ad 2. _________________________ – used for one time placement 3. Sliding scale rates – more ads will cost less per ad

4. _________________________ – ads and free standing insert (FSI) will lower rate 5. Volume and consistency rates/discounts

iii. Costs

1. Tend to be _________________________ than other print media 2. Position preferences

a. Example: SEM advertiser wants ad placement in sports section instead of food or employment opportunity section

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b. _________________________

1. Circulation and target market are _________________________ factors for rates that reach specific readers for advertisers

1. __________________________________________________ rates 2. Volume and consistency rates/discounts

3. __________________________________________________

iii. Costs

1. Tend to be _________________________ than other print media 2. _________________________ – front and back cover, inside front 3. _________________________

4. Full bleed pages

5. _________________________

6. Spreads

c. _________________________

i. Most effective way to promote a _________________________ to the public ii. _________________________ production lead time

iii. Rates – how determined

1. _________________________ audience rating & time are the major factors, (Nielsen ratings) are GRP for television – advertisers will ask for this data

2. _________________________ (cost-per-point) x Nielsen ratings determine TV ad costs 3. _________________________ and _________________________ change based on

local factors iv. Types of rates

1. _________________________ – prime time vs. other

2. National network, _________________________ or local network v. Costs

1. Are _________________________ than any medium

2. _________________________ - morning, afternoon, prime time, late night 3. _________________________ – peak winter season

4. _________________________ of ad impact ad & production costs d. _________________________

i. Effective for local & regional markets – _______________________________________

ii. Relatively short production lead time – ________________________________________

iii. Very good to hit your demographic target market iv. Rates, how determined

1. _________________________ & _________________________ are the major factors 2. Less than _________________________ but can still be expensive

v. Type of rates

1. Offer the _________________________ of any medium 2. Run of schedule – (all __________ types lower costs)

3. _________________________ (TAPs) total audience plans

4. _________________________ and ________________________ rates/discounts vi. Costs

1. Are _________________________ than TV media 2. _________________________ – morning/evening drive 3. Production costs & ad

4. ://www.bestradiocommercials.com/?http gclid=CN64k8z73bICFQsFnQodMH8AtA

e. _________________________

i. Very popular 3rd_{to television and newspaper}

ii. Rates – how determined

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1. _________________________ – cost per 1000 impressions 2. _________________________ – cost per click

iv. Cost

1. _________________________ ads may be very cost effective 2. _________________________ – text, image, multimedia 3. _________________________ – banner, pop-up etc. 4. Placement in browsers

5. _________________________

f. _________________________ (outdoor and transit)

1. _________________________ based on ad’s visibility, its location and population in area

1. http://clearchanneloutdoor.com/rates /

iii. Costs

1. _________________________

2. _________________________

3. Illumination/movement/3D

iv. Production costs - _________________________

v. Types of out-of-home

1. __________________________________________________ – Spectaculars (as seen here) - Transit advertisements like subway, cabs, hot air balloons or busses

2. __________________________________________________ – very good at

promoting an event throughout a metropolitan area – draws a lot of attention and is seen by a lot of consumers

g. _________________________

1. Vary based on what you _____________________________________________

1. Allows advertisers to target a _________________________ with the most cost effective manner but preparation time is _________________________ than radio and newspaper ads

iii. Costs

1. __________________________________________________ rates 2. Production costs

3. __________________________________________________

4. __________________________________________________

5. Total costs can vary and at time be very expensive

VI. Selecting advertising media – Why

a. Selection of media is _________________________ because it is the _________________________

expenditure of an ad budget

b. Choosing the most _________________________ is essential to provide the most effective ad campaign

c. Must select the _________________________ (s) that reaches the target market

VII. Factors impacting your media selection

a. _________________________

i. Your overall goal of advertising b. _________________________

i. Identify their media-usage habits

ii. You _________________________ waste circulation c. _________________________

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d. _________________________

i. Most companies will have constraints that impact your selection- you can’t do everything you want

e. _________________________

i. Nature of product

1. _________________________ or _________________________ may need demonstrating resulting in media selection – TV or magazines

2. Other products need different _________________________

3. Provide examples for each media type f. _________________________

i. Location, place or _________________________

ii. Coverage should be same as product availability g. _________________________

i. Television and magazines require the _________________________

ii. Daily newspapers and radio require the _________________________

h. _________________________ media factors

i. Measured _________________________

1. Different _________________________ and types and believed the most important factor

ii. Measure __________________________________________

1. Total cost (varies by medium)

2. ____________________________________ (reaching potential prospects) 3. Advertisers use CPM, CPRP and GRP

i. _________________________ media factors

i. Not as easy to measure as _________________________

ii. _________________________

1. Medium’s believability to consumers – take seriously iii. _________________________ environment

1. Each type appeals to a _________________________ group of consumers

2. The _________________________ or _________________________ of the media vehicle should compliment product

3. _________________________ of clutter can impact your ad – less is more

4. _________________________ – impression an ad will make on the target market consumer

j. _________________________

k. _________________________

i. Reaching a _________________________ audience and exposing them at least

_________________________ to your advertisement (reach) 1. Example: Advertising during The Super Bowl

l. _________________________

i. Reaching a _________________________ audience more often to drive home the message (frequency)

1. Example: Multiple Renaissance Festival advertisements in newspaper, radio and TV in the Charlotte market

VIII. Buy advertising space/time

a. _________________________

i. Choose a _____________________/______________________ type to reach your goals ii. Contact advertising manager

b. _________________________

i. Rate cards

ii. _________________________ and/or rating numbers c. __________________________________________________

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ii. Make sure you can _________________________ your target market d. _________________________

i. _________________________ message ii. Pre-production process

e. _________________________

i. Go for the numbers (CPM)

ii. Adequate reach & _________________________

iii. _________________________ services iv. Negotiate the best price

f. _________________________

i. ____________________________ - placement

ii. __________________________________________________

iii. Reach & frequency g. _________________________

h. Confirmation of ad run

i. _________________________

j. _________________________

i. Review for _________________________

ii. Propose additional strategies

IX. Choose appropriate media vehicles for sports/events

a. __________________________________________________

i. Advertising goals

ii. _________________________ target audience iii. Competition

b. _________________________ media options & total costs

i. List all ______________________ and _____________________ effectiveness and costs c. Select the _________________________ and _________________________

i. Review quantitative and qualitative factors

ii. Select one that has _________________________, place & ______________________

d. Determine the _________________________ and _________________________ strategies

i. Select degree of continuity desired

ii. Should be chosen based on _________________________ needs and type of product iii. _________________________ – ads on a regular basis

1. Good for everyday products like groceries

iv. _________________________ – intermittent scheduling

1. Great for _________________________ promotions like events 2. Great for introducing new products or events

v. _________________________ – combination, low then high