Media Planning and Buying

Cain Knight 21116801

CW1 Industry structure and skills set individual Report

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Content Page:
1. Introduction 2. What are JICS? 2.1. BARB 2.12. HOW THEY OPERATE: 2.13. HOW AGENCIES BUY TV SPACE: 2.3. NRS: 2.31. HOW NRS OPERATE: 2.32. HOW AGENCIES BUY PRINT SPACE: 2.4. RAJAR 2.41. HOW THEY OPERATE: 2.42. HOW AGENCIES BUY RADIO SPACE: 3.Model Shannon and weaver 3.1. INFORMATION SOURCE: 3.2. CHANNEL: 3.3. RECEIEVR: 3.4. DESTINATION: 3.5. NOISE: 4. How do agencies position themselves? 4.1. SO WHAT CAN SMALLER AGENCIES DO TO POSITION THEMSELEVES 5. Digital 5.1. Click tale: 5.2. AB testing: 5.3. Weaknesses: 5.4. Digital and the future: 6. Conclusion 7. BIBLIOGRAPHY

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1.Introduction
This report will underline the process in which research surveys evaluate their data and how agencies used this data for planning and buying media. Digital media will also be discussed showing a clear understanding of how digital media values can affect the future in terms of marketing communications and how this will help advertisers understand their viewers, listeners and reader. Critical Insight to how agencies position themselves, linking the two together.

2.What are JICS?

The Joint industry committee also known as the JIC manages the four major media surveys, theses organisations are divided by the form of media that is being researched.

2.1BARB:
Broadcasters Audience Research Board is the official organisation that collects all research data relevant to television; this includes audience measurements, television ratings and television viewing behavior in the United Kingdom. BARB supplies the collected viewing data to broadcasters, advertisers and other interested parties which they then use to monitor channels or advertisement campaigns. 2.12. HOW THEY OPERATE: BARB selects panels in private homes across the UK and recruits each home to undergo evaluation, each home is represented on average as 5,000 TV homes, they then use these selected panels as representatives of all television households in the UK. To gain a more accurate insight to the UK viewer, taking in to account the continuous change in the population. BARB uses special metering equipment to measure changes in UK household characteristics making sure demographic and TV reception variables are considered, this is called time shifting. Over 30,000 devices are monitored across the panel of over 5,100 homes. This method can tell when the viewer has left the room, detecting when they are deregistered and no longer interacting with the Television; this is done with every person age 4+ within that panel making the data a lot more accurate. This however doesnt mean that the data is completely accurate as someone might be registered as viewing but not be interacting with the device, as people tend to leave the television running even if they are not engaged with its content. (Barb.co.uk, 2013) 2.13. EXAMPLE 1: Top ten viewed programs on BBC1: (Barb.co.uk, 2013)
Advertisers and broadcasters data will be much more accurate, giving a minute-by-minute reading of viewer statistics

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2.14. HOW AGENCIES BUY TV SPACE: Any channels that include adverts such as Channel 4, ITV, Channel 5 and Sky, sell TV space to media agencies. Media investment management operations such as Group M, - a collection of the top media agencies conjoined - buy media space in larger quantities, making the overall spend more cost effective. This helps the companies within group M save money, as they are able to buy TV space at a cheaper cost, therefore making more profit on their sales. This also allows the companies more flexibility in their pricing to clients with larger budgets. For instance, if an advertiser was willing to spend 10 million on TV space, Mediacom could offer a 10 % discount on its spend, whereas a company with a larger budget of 30 million could be offered a 30% discount, making the advertiser feel important and like they are receiving a much better offer. When buying TV space, agencies must consider the audience that their clients are targeting. For example, Maybelline - the womens makeup brand - would expect its adverts to be seen by a female audience. One option they could consider would be to buy by demographic, this means they could purchase TV space according to the required target market which in this case is a female audience. An audience could also be purchased by age or social grade (ABC1). However, buying a specific audience is the more expensive option. An alternative method would be to buy All Adults, this is useful when the brands target audience isnt a fixed demographic, often used by brands with a broad target audience. TV space is bought at a cost per thousand viewers or CPT. The CPT for a specific target audience could be as much as 10 times more expensive than buying All Adults. You can also buy TV space by daypart; this is when media space is sold in segments of the day, for example; daytime, at peak viewing time (early evening) or late night. The media houses or TV channels will pay the agency a 15% commission on any budget that it puts their way. 2.2.

NRS:

National Readership Survey also known as NRS provide authoritative research that gives the advertising trade insight to its audiences for print. Over 250 of Britains major newspapers and magazines are analyzed to show the size and deeper understanding of the specific audiences being assessed. This data can help advertisers to correctly direct campaigns at their required target audience and use newspapers and magazines that best fit.. 2.21. HOW NRS OPERATE: Since 1956 NRS have provided research in to prints consumer market using primary research methods. Each year a sample of 36,000 interviews and candidates over the age of 15+, are chosen at random, an interview is then conducted in the comfort of the individuals home. On average the interview will last 27 minutes and allows the NRS to gain a deeper understanding of how and what people read, this

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is done continuously every day of every month. As digital media is having a dramatic effect on the existence of todays print market, in September 2012 the NRS focused on the changing digital media age and incorporated this shift to its research providing a measurement of audience for both offline and online print audience. (Nrs.co.uk, 2013)

2.22. EXAMPLE 1:
(Nrs.co.uk, 2013)

Total number of print circulation in November 2013 for the daily newspapers.

2.23. HOW AGENCIES BUY PRINT SPACE:

Media buyers/planners and other types of agency purchase print space for their clients, there are different methods that can be used to buy print media space. Firstly, media agencies will approach newspapers and magazines with an ad campaign they wish to distribute, using the clients budget the agency will negotiate the best deal for the client, trying to capture the required target audience. Once the deal has been agreed the newspaper or magazine will pay the agency a 15% commission for that clients budget. This means that the client doesnt pay for the agencys services, the publishers do.

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All magazines/newspapers have ratecard prices which are used as a price guide for advertisers; however agencies will rarely pay the ratecard price but will negotiate the price based on their experience, budget amount and relationship with the publisher. Print media space is usually sold by size, such as half page, full page, and double page spread or even by the amount of columns and height in inches. Advertisers can also be placed in specific sections according to the audience they are targeting i.e. motoring or football if they are targeting male readers Print nearer to the front of the article tends to be more expensive as these are the pages that would be seen first by readers. Huge price reductions can be had for last minute space deals but the advertiser would need to have its advert creative ready at very short notice as the copy deadlines are often very tight. Salesmen for the newspapers would rather sell space last minute space at a heavy reduction, rather than not sell it at all. Newspaper space that isnt sold can also be offered to regular loyal clients with large budgets as an Incentive to keep them spending.

2.3. RAJAR:
Radio Joint Audience Research is responsible for the measurement of the UKs radio audience. Not only allowing radio stations to understand their listening audiences but also giving advertisers the knowledge of what advert would best fit each station. BBC daily survey and commercial Radios JICRAR survey partnered up in 1992 to form the company RAJAR, RAJAR was assembled to be the one and only Radio surveys in the UK the company is now a deadlock company meaning the shareholders BBC and Radiocentre have to agree any final decisions. (Rajar.co.uk, 2013)

2.31.HOW THEY OPERATE:

RAJAR is a non-profitable organisation that provides data for planning, buying and selling advertisements on commercial radio. There are three ways RAJAR collect research data, firstly there are write ins, a method where a respondent writes down the names of their favorite station and sends it in to be assessed. Second, each year approximately 110,000 respondents aged 15+ are asked to keep a weekly recorded diary of what they are listening to on the radio. This, along with the questionnaires and the write in method creates enough data to analyze. Using this method, a demographic profile can be created, however characteristics and personality cannot be assessed.

2.32. EXAMPLE 1: (Rajar.co.uk, 2013) September 2013 survey on the radios listeners.

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2.33. HOW AGENCIES BUY RADIO SPACE:

Like the other forms of media, marketing agencies will buy the airtime from the radio stations that best fits the demographic of the target market. By using RAJAR, agencies can see exactly which audience will hear their clients ads. Another new way of buying radio airtime has also emerged called bid4spots.co.uk. Bid4Spots is used by radio stations as a way to sell their distressed inventory (unsold airtime). The radio stations participate in an auction and bid against each other for an advertisers budget. The advertiser can specify its desired audience, the minimum and maximum CPT it is willing to pay and can also invite and exclude specific radio stations. Although this method is not recommended for a campaign that needs very specific planning as can sometimes be hit and miss, it can prove to be a very cost effective way of getting an ad heard. This shows that there are different ways of buying radio space and that different competitive forces can have an effect on the pricing, not only radio but for all other forms of media. Influences from the government may also affect pricing. (Barban and Cristol et al., 1976, p19)

3.

Model Shannon and weaver

Claude E. Shannon 1949

The model above displays the process of communication from agency to consumer, this basic linear model was created in 1949 and still plays a huge role in todays marketing communications. Claude E. Shannon published this model in an article called The Mathematical Theory of Communication, the model consists of six parts; information source, transmitter, channel, receiver, destination and noise.

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3.1 Information source:
This is where the message is produced, for example a TV ad being filmed and edited ready to be published.

3.2 Channel:
The message is then carried through channels, different forms of media, in this case onto TV.

3.3 Receiver:
The receiver is where the message is decoded; the audience will then receive the message, each individual interpreting the ad differently to the other.

3.4 Destination:
Where the message finally ends up. The result the ad has had on the viewer, if the ad had the desired effect on the viewer and the viewer interpreted the message as planned by the advertiser. This should result in the viewer taking some kind of action as intended by the advertiser.

3.5 Noise:
Any interference within the channel causing the message to be obscured, something the source has no control over. For example if the ad had interference causing the television to lose connection, if the viewer was distracted in anyway or if the message was lost in translation. The model has now been adapted creating a seventh part called feedback, this is the response from the Destination back to the information source, this can help marketers adjust future ads to best fit their viewing audience.

4.

How do agencies position themselves?

Media problems are marketing problems (Essentials of media planning p.9). This is how marketers feel so they try to understand the media communications the best they can. They can then begin to position themselves as skilled media communication agencies, with insight to what channels and methods best fit each clients message. This understanding will help to build client loyalty as the agencies know-how and decisions are trusted by the client, they want clients to feel that they are in expert, capable hands. A marketing agencys primary role is to satisfy the client and support them in achieving their business objectives. They present themselves as experts in their field by displaying a profound knowledge of media communication methods as well as keeping up with new trends and industry shifts. By quickly identifying and resolving any media issues their clients may face, advertising executives will feel that their substantial marketing/advertising budgets are in safe hands. All agencies position themselves as the best, or specialists in a specific area. One example would be Mediacom Mediacom is one of the world's largest media communication specialists . (http://www.groupm.com/global/mediacom) By using words like specialists and worlds largest, readers are instantly enticed as they feel they will get good results and therefore a good return on their investment.

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As Mediacom is one of GroupMs companies they can use bold statements such as the example used above, Mindshare have buying power over all competing companies as its clients budgets are joined with those of Maxus, Catalyst, Xaxis and other parties within Group M, overall giving them an enormous budget to negotiate with. This allows the group to use its extensive industry knowledge combined with its huge buying power to get better deals from the media platforms.

4.1. So what can smaller agencies do to position themselves?

Smaller agencies can position themselves as a more bespoke or boutique service, offering a more handson approach and leveraging on their expertise in planning rather than buying power. However, where pricing is concerned, they do have room for negotiation within their commission fees. Smaller agencies are often more suited to smaller advertisers with smaller budgets and could therefore target the low hanging fruit.

5.

Digital

The digital media mix % of revenue H1 2013

SOURCE: IAB / PwC Digital Ad spend H1 2013 Digital is the fastest growing platform of media and has become an extremely popular platform for advertising. Above the chart indicates that in 2013 digital generated 3.041bn, this shows that there is huge potential for money to be made. Digital communication can bring advantages that other forms of media cannot deliver. It can offer free communication platforms such as social media networks which can be exploited using creativity rather than a huge budget. Messages can easily reach a global audience, creating awareness quickly and efficiently. Digital accounts for 31% of a 17bn market; this shows that this modern form of media is going to quickly outgrow its competitors. Other advantages of using digital media would be the ability to understand complex customer behavior. Digital technology has enabled an advertiser to track and accurately measure the results of its marketing efforts, something has been lacking in the more traditional marketing methods. The digital age now provides advertisers with

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overwhelming amounts of data, sometimes more than they know what to do with. Companies such as Clicktale can easily track the behavior of online customers and practices such as A/B testing; can identify the effectiveness of page content.

5.1. Click tale: Heat maps are used to indicate how a user navigates a webpage. Red and yellow areas will
indicate where people tend to click or hover their curser most. This can be used to highlight the content that is of the interest to a user and what content will influence a user to take action. Advertisers can use this information to optimize their webpages and therefore increase the conversion of visits to the website into sales or registrations.

5.2. AB testing: AB testing is a way in which websites can be display two different pages to the same
audience and track which page/content, creates more awareness and interest allowing the advertiser to optimise the site accordingly. Digital is a brilliant form of media but there are still weaknesses to using this medium.

5.3. Weaknesses:
Information expires quickly, due to the vast quantity of data available online, regular updates to information and keeping up with the fast growing market is required to have an impact on viewers. More competitors within an easy reach of the customer The shift to digital means that users now expect things to happen much quicker. There is more pressure to satisfy the users expectations in a short amount of time. For example, a user could visit a webpage and if the page doesnt load within 5 seconds they could quickly move on to another website.

5.4. Digital and the future:

Nielsen is partnering with big companies such as Facebook to conduct cross platform analysis. Using Facebooks 30 million+ users opposed to 60,000 panels this analysis will provide much more accurate data on consumer behavior, making digital advertising much more effective and therefore more attractive. Nielsen has also launched methods of fusing OCR data with TV BARB data, this is called XCR. By combining the two data sets and overlapping the digital and TV audience an accurate and detailed assessment on viewers can be achieved. OXR is still a work in progress as Nielsen still has a lot to do to make the system robust.

6.

Conclusion

To conclude this report the finding shows how joint industry committees analysis mediums to understand the customer that uses them, with these finding marketers can target their campaigns accordingly to extract the best results. When its comes to understanding your audiences from a digital

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assessment the large quantity of users allow marketers to gain a greater insight to customers behavior with a deeper understanding. Analyzing these JICS along with buying methods agencies use to purchase media space, it is clear to see that the growing population love to access media through digital mediums, as digital is always advancing this market still has room for growth. In the graph bellow you can see the over a one year period the love that people have for devices showing a large increase in both tablets and smartphones. This goes to show that advising digitally can be retrieved whilst consumers are on the move, giving a market that can be reached at all times of the day.

The fast growth in smartphones and tables penetration.

Source: Ipsos Mori

7. Bibliography
Sorcha Garduce's presentation, SOURCE: IAB / PwC Digital Adspend H1 2013 Barban, A., Cristol, S. and Kopec, F. 1976. Essentials of media planning. Chicago: Crain Books. Shannon, C. and Weaver, W. 1949. The mathematical theory of communication. Urbana: University of Illinois Press. Barb.co.uk. 2013. How we do what we do - BARB. [online] Available at: http://Barb.co.uk/resources/reference-documents/how-we-do-what-we-do [Accessed: 29 Nov 2013]. Nrs.co.uk. 2013. National Readership Survey. [online] Available at: http://www.nrs.co.uk/ [Accessed: 29 Nov 2013]. Rajar.co.uk. 2013. RAJAR. [online] Available at: http://www.rajar.co.uk/ [Accessed: 29 Nov 2013].

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