Advertising Budgeting, Media,

and Media Planning

The Advertising Budget
Setting the Budget
Percentage of Sales
Payout Plan
Competitive Budgeting
The Task or Objective Method
 What’s the objective?
 What type and how much media needed?
 Can we afford it?
Arbitrary
Administering and Protecting the Budget
Media Planning
Media Planning = Selection + Scheduling
Factors Influencing Media Planning Decisions
 Target Market Profile
 Looking at Brand/Product Dynamics
 The Creative Execution
 Budget Considerations and Media Deals
 The Competitive Situation
 Availability and Timing Considerations
 Cost Efficiency (CPM = Cost per thousand (CPM): cost
of reaching 1,000 members of target audience with media
vehicle(s) or plan.)
CPM Formula and Example
Cost
CPM = X 1,000
Audience

Which is more cost efficient on a CPM basis?

A-- :30 TV Commercial in “Friends”
$250,000
CPM = X 1,000 = $12.50
20,000,000
B-- :30 TV Commercial in “Monday Night Football”
$300,000
CPM = X 1,000 = $10.00
30,000,000
Media Selection
Media are evaluated based on selectivity.
There are two types of selectivity:
 Class Selectivity is the ability of a medium to reach
the target market without waste.
 Geographic Selectivity is the ability of a medium to
cover a particular geographic area without spillover.
How would you rate the different major media
in terms of class and geographic selectivity?
Media Scheduling
Reach
(% of target audience with opportunity for exposure to
media vehicle(s) or media plan in a given time frame)

+
Frequency
(average number of times target is likely to be exposed to
the ad in a given time frame)

100%
The Difference between Reach
and Frequency
Media Scheduling (continued)

Reach
+
Frequency
+
Continuity
(how long the campaign runs—
continuous vs. flighting vs. pulsation)

100%
Reach, Frequency, and Continuity Relationships with a
Fixed Budget
Media Scheduling (continued)

Reach
+
Frequency
+
Continuity
+
Dominance/Impact
(the attention-getting ability of the media vehicle(s)
selected to run the ad)

100%
Evaluating the Media: Key Terms
 Rating point: the % of a given population group that uses a
specified media vehicle.
 Share: Households/persons using television (HUT, PUT): %
of homes or people watching TV at a given time.
 Gross rating point (GRP): total number of ratings for different
media vehicles.
 Gross impression: translation of GRPs into people; number of
audience exposures x number of times they will see or hear
vehicles.
 Cost per rating point (CPP): cost of buying one rating point in
a given media vehicle or type.
 Audience: number or % of homes or persons using a media
vehicle.
 Coverage: Same as reach – the % of homes or persons
receiving broadcast signal within specified area, or receiving
specific magazine or newspaper.
Evaluating the Media: Key Terms,
Continued

 Circulation: Total number of copies of a publication sold

through various forms of distribution.
 Readers per copy: average number of people who read
each issue of publication.
Types of Media Plans

 Geographic
 Local, spot, key market
 Regional
 National
 International
 Selective
 Combination
Sample Flowchart of a Media Plan
Evaluating the Media Plan
 Follow up—getting make-goods, tearsheets.
 Measuring the impact:
 Test consumer awareness of campaign before,
during, and after.
 Sales data.
 Compare actual reach/frequency figures to
proposed estimates.
 Syndicated Media Research Services
 Nielson, Arbitron, Simmons, Audit Bureau of
Circulation