You are on page 1of 19

Chapter 7

CHAPTER 7
___________________________________________________
_
MEDIA PLANNING ESSENTIALS
LEARNING OBJECTIVES
Students will be able to:
1.

Assess the role and responsibility of both client and agency in media
planning

2.

Differentiate between media objectives, media strategies, and


media execution

3.

Use media planning terminology

4.

Describe the steps involved in the media selection process

5.

Identify the factors affecting the size of an advertising budget

6.

Describe the methods of determining the size of an advertising


budget

CHAPTER HIGHLIGHTS
A.

Media Planning Process


Media planning is defined as the process of developing a plan of
action for communicating messages to the right people (target), at the
right time, and with the right frequency. The plan should flow logically
from the marketing communications plan. Media planners decide the
best medium or combination of media for delivering the message
within budget guidelines.
Several factors have complicated the media planning process: the
growth of digital media alternatives are now a key factor to consider as
are the changing consumption patters of the media. Blending the new
media with the old media is a present day challenge for most media
planners. With digital media the metrics are different. Consumers seem
to be engaged when they are online or using their cell phones and

Copyright 2015 Pearson Canada Inc.

96

Chapter 7

music players. With engagement comes an opportunity to deliver an


advertising message. At one time (with the mass media) the
advertisers were in control of when and where the message would be
received. In the digital era, consumers are in control of when and where
they receive messages. Media multitasking by consumers is another
factor influencing media selection decisions today.
Information provided to the agency is usually contained in some kind of
media brief. The brief contains all relevant background information
that could influence the direction of the agencys media
recommendations. Typical information embraces a market profile,
product media profile, target market profile, competitor media usage
profile, media objectives, and a media budget.
B.

The Media Plan


The media plan is a document that recommends how the clients'
advertising funds can best be spent to achieve their advertising
objectives. A media plan includes a precise definition of media
objectives, supporting strategic rationale, and tactical details.

C.

Media Objectives
The components of media objective statements are as follows:
1.
2.
3.
4.
5.

Who is the target market?


What is the advertising message?
Where are the priority markets?
When is the best time to advertise?
How many, often, long, involved?

Several examples of media objectives are included in the chapter.


D.

Media Strategy
Media strategy deals with how to best communicate a message
within budget guidelines. The various factors that influence the
development of media objectives and strategies include the following:
Target Market
A precise definition of the target (demographic, psychographic,
and geographic) has a positive influence on the efficiency of the
media plan. Compatible matches (e.g., the media that reaches the

Copyright 2015 Pearson Canada Inc.

97

Chapter 7

target best) can be recommended. In this regard three different


strategies are considered: profile-matching, shotgun, and rifle.
1. Shotgun - The advertising message is placed in a medium that
reaches a broad spectrum of people (e.g., a popular sitcom in
prime time reaches a wide variety of age groups, income groups
and so on). This strategy is typical of a product with widespread
appeal.
2. Profile-Matching - The advertising message is placed in media
whose readers,
Listeners or viewers have a profile that is reasonably close to the
profile of the brands target market (e.g., to reach the female head
of household who balances career with household responsibilities,
an advertiser might select Chatelaine magazine). See Figure 7.4
for an illustration of the reader profile for Financial Post Business.
3. Rifle - The advertising message is placed in a medium in which
the audience shares a common characteristic. Factors such as age,
income, and gender are irrelevant. It is the common characteristic
(e.g., a hobby, interest, or recreational activity) that makes the
medium attractive for advertising purposes). A middle-aged male
golfer probably subscribes to Golf magazine, so it would be a
logical choice for a rifle strategy.
Nature of Message
If, for example, factual details form the message, print options are
the only choice. If a demonstration is important or an emotional
response is desired, television and interactive media presentations
are options. If the message is brief, transit and outdoor advertising
are alternativesdifferent messages mean different media. Refer
to the vignette Right Message, Right Media = Greater Results
for Koodo for more details.
Reach/Frequency/Continuity/Flexibility
These factors are grouped together based on their
interrelationships in media planning.
Reach is the total, unduplicated audience potentially exposed to a
message at least once in a given period. Reach is expressed as a
percentage of the population in a geographic area.

Copyright 2015 Pearson Canada Inc.

98

Chapter 7

Frequency is the average number of times an audience is


exposed to a message over a period of time, usually a week.
Frequency may also be referred to as average frequency.
Reach multiplied by frequency produces impressions as in the
number of impressions made on the target. The weight or amount
of advertising in a market is expressed in terms of gross rating
points (GRPs). Reach (expressed as a percentage of people
reached) multiplied by frequency equals GRPs. The chapter
includes some examples of this concept.
Continuity is the length of time required to ensure impact on a
target audience through a particular medium.
Media planners must juggle the reach, frequency, and continuity
factors to obtain maximum benefit for the dollars invested in the
media. Advertisers stretch dollars over a full year by purchasing
media time and space in flights. Planners must be careful to
balance these three factors since there is a saturation point at
which additional placements of ads will be a waste of money. Also,
people get tired seeing the same message too often.
Ads are typically scheduled in flights (a pre-determined number of
weeks which are separated by periods where there is no
advertising). Over the period of a year a flight pattern that is
carefully justified by the media planners will be implemented.
There are times of the year when advertising will be heavy, light,
and even non-existent.
A more recent media timing theory is recency. With recency the
key issue is the timing of the advertising whereas with traditional
models the key issue is weight (reach and frequency). Reaching
consumers with the message when they are ready to buy is crucial.
Good creative can have an immediate impact on people.
Engagement
Engagement refers to the degree of involvement the consumer has
with the brand message. The combination of message (impact of
the message) and the media determine the degree of involvement.
People tend to be more engaged with certain media. For example,
they spend considerable and planned time reading newspapers
and magazines. While they watch television or surf the Internet
they may be less engaged since there is an inclination to do other
Copyright 2015 Pearson Canada Inc.

99

Chapter 7

things at the same time (multitasking). Media planners must


consider the degree of engagement desired in the context of the
media objectives and the nature of the message to be delivered.
Finding ways to move people from a medium like television to the
Internet (e.g., encouraging them to enter a contest online) is a
technique used to encourage engagement.
Market Coverage
How many markets will the advertising cover over the duration of
the media plan? Coverage plans are categorized as national,
regional, key market, or selective. Obviously, the budget available
has a large impact on this decision as does the level of distribution
of the product being advertised.
Best Time to Reach Target
Best time refers to the time of year, week, or day. Is prime time or
day time better? Are weekdays better than weekends? Is the
product seasonal in nature? Considering time and the availability
of media dollars, several scheduling options are available to
advertisers. These include: even schedule (uniform over a period
of time), skip (alternate timing), pulse (flights of predetermined
weight and length), and seasonal (heavy media in preseason),
build-up (low weight initially progressing to intensive weight), and
blitz (heavy weight in a short burst). The nature of the schedule
depends on the objectives of the campaign (e.g., RRSPs are
advertised seasonally while new products are launched with a
build-up of blitz schedule).
For insight into how various strategic factors work together refer to
the vignette Right Message, Right Medium = Great Results
for Boston Pizza.
Competitive Media Strategies
Competing media usage is assessed. Does an advertiser follow the
competitors' practices or develop a strategy employing different
media to reach the same target audience?
Media Alternatives

Copyright 2015 Pearson Canada Inc.

100

Chapter 7

What are the advantages and disadvantages of all options? Which


media is most suitable considering creative strategy, reach,
frequency, and continuity concerns? Presently, television and
newspapers get the lions share of advertising revenue. The growth
and influence of various interactive media alternatives has forced
many advertisers to shift advertising dollars in that direction and
away from the traditional media.
Budget

E.

All other factors are affected by the budget. A budget restricts the
use of media, the extent of coverage, and reach and frequency
levels. The end result is usually a concentrated media strategy
(one that uses a selective list of media) or an assortment media
strategy (one that use several mediaa multimedia campaign). .
Media Execution
Media execution fine-tunes the strategy into specific action plans
which are divided into the following areas: evaluating cost comparisons
of media alternatives, media scheduling, budget summaries that
outline spending details, and buying media time and space.
The media selection process involves a three-stage (funneling) decision
system (refer to Figure 7.10):
1.
2.
3.

General Type of Media - (e.g., magazine)


Class of Media within Type - (e.g., general interest or specific
interest magazines)
Particular Medium - (e.g., Canadian Living, Chatelaine)

To illustrate how media planners recommend a particular medium over


another, a CPM calculation is analyzed. CPM is defined as the cost
incurred in delivering a message to one thousand individuals. The CPM
calculation allows for easy comparison of magazines with different
circulations and rate structures. The formula for calculating CPM is as
follows:
CPM

Unit Cost of Message


__________________
Circulation (000)

The final stage of the media plan is to formulate the schedule (a


calendar showing the type and timing of all media activities) and
related budget summaries (spending by medium, time of year, etc.).
Copyright 2015 Pearson Canada Inc.

101

Chapter 7

Media plan details are illustrated in Appendix 1, the marketing


communications plan for Schick Quattro. Some organizations are
experimenting with media convergence strategies, a relatively new
concept.
Once the media plan is approved by the client, the media buyer
executes the plan. The media buyer negotiates the buy with media
representatives to obtain the most effective and efficient buy within the
guidelines of the plan. In television the buying pattern is referred to as
upfront buying or simply upfront. Agencies compete against each
other to obtain the key spots in network prime time. The demand for
the spot ultimately determines how much it will cost. Buying later on in
the year on a more random basis is called scatter buying.
Computers now play a major role in planning and buying media. Userfriendly software developed by BBM Canada, Nielsen Media Research,
and Telmar/Harris Media Systems lets media planners make reasoned,
detailed decisions. In the context of media planning, software allows
planners to maximize reach at the least amount of cost.
F.

The Media Budget


In striking a budget, the advertising manager is concerned with how
much to spend and how to allocate the funds (by medium, by region, by
time, etc.).
The factors affecting the size of an advertising budget are as follows:
1.

Size of Customer Base - Consumer products with mass target


markets rely heavily on advertising (larger budgets); whereas
industrial/business products with more concentrated targets have
smaller budgets.

2.

Competition - The degree of competition can force an advertiser


to spend more than desired. All advertisers sacrifice profit to
accomplish other objectives such as market share.

3.

Stage in Product Life Cycle - The critical stages are introduction


and growth. To accomplish awareness objectives in the introduction
stage and to counter competitive activity in the growth stage
requires a heavy advertising expenditure. In the mature stage,
emphasis shifts to profits, therefore, investment in advertising
should be reduced whenever possible.

Copyright 2015 Pearson Canada Inc.

102

Chapter 7

4.

Product Characteristics - The degree of uniqueness and


perceived value to potential customers influences the amount
invested in advertising. High interest unique selling points need to
be advertised heavily. Brands using the lifestyle approach tend to
spend heavily on advertising also. If brand USPs are marginal, the
brands objectives will determine the extent of advertising
required. For example, brands classified as followers do not have
the financial resources to advertise at a level similar to leaders or
challengers.

5.

Management Attitude - The size of the firm affects financial


resources available for advertising. Expense-oriented managers
are reluctant to invest in advertising while investment-minded
managers will spend to encourage long-term development.

The chapter presents a variety of budgeting methods with


appropriate illustrations. These methods include: percentage of sales,
fixed sum per unit sold, industry average, task (objective), and
advertising share/market share. For planning purposes, the task method
is most appropriate since it is not restricted by a sales figure. In effect,
the task method is used to generate sales rather than the reverse.
For an applied illustration of how the budget and media objectives
influence media strategy and media execution, refer to Appendix 1.
ADDITIONAL ILLUSTRATIONS OF KEY CONCEPTS
1.

Planning the Media Mix


Beware if you plan on reducing your television budget. There is little
doubt that the growth of the Internet has taken time spent with a
medium away from other media. But, a close look at the numbers
show that television has held its own over the past seven years. In 2006
adults spent 1.16 hours a day with the Internet and in 2012 it rose to
1.68 hours. In 2006 adults spent 4.24 hours with television and in 2012
the figure rose to 4.33 hours. You might say Lets keep the TV for
awareness and use the Internet for more targeted communications.
That would be a good mix.
Over the same period of time both print (newspapers and magazines)
and radio suffered gradual declining figures each year. Food for
thought!

Copyright 2015 Pearson Canada Inc.

103

Chapter 7

2.

Behaviour Change in Television Viewing


The CRTC says Canadians spent more time watching television or
listening to radio in 2011 than in previous years despite the
proliferation of non-traditional media. But they also say that people
increased their internet television watching to 2.8 hours a week from
2.4 the previous year. On a weekly basis Canadians watched an
average of 28.5 hours of television. Such a high figure is skewed by an
aging populationthe older one gets the more television you watch.
Source: http://marketingmag.ca/news/media-news/canadians-spent-more-timewatching-tv-listieng-to-radio-in-2011.

3.

Planners Must Adjust Thinking on Planning and Measurement


Metrics
Reach, frequency, continuity, and impressions were powerful
considerations when planning a traditional media plan. With the surging
importance of the Internet planners have to adjust to a new way of
thinking and in the process convince their clients there is another way
to measure things.
In the Internet world its not the number of people who visit a site thats
important. Rather, the amount of time people spend at a site is whats
important. For example, in 2012 Facebook users spent an average of 8
hours each week on the site. Visiting Facebook and other social
networks has almost become the default thing to do when a person is
bored. In fact, relieving boredom is the primary reason people go on
Facebook (according to one research study). Facebook also satisfies a
persons entertainment needs and offers an outlet for personal
communications and self-expression.
From an advertising perspective the potential for engaging the
consumer with a brand for an extended period (lets say minutes
instead of seconds) becomes an attractive proposition for advertisers.
Reaching the right audience for an extended period seems more
attractive that reaching a mass audience on television for a few fleeting
seconds (the audiences attention span considered). All of this sounds
good but social sites have yet to develop a good method of presenting
advertising to visitors. Constant experimentation with different models
is adding more confusion to the situation.

Copyright 2015 Pearson Canada Inc.

104

Chapter 7

Adapted from Brittany Fitzgerald, Facebook Study Explains Why We Still Spend So
Many Hours Stalking Each Other, The Huffington Post, May 7, 2012,
www.huffingtonpost.com and Abbey Klaassen, Why time spent on websites can be
just as important as views, Advertising Age, September 7, 2009, p. 17 .

4.

Some Thoughts on Media Strategy and Budgets


Cut! Cut! Cut! No its not a film were talking about, its the media
budget. How does an organization achieve its objectives when the trend
is to reduce media budgets? Here are a few tips to consider when
devising a media plan:

Target Prospect Most Likely to Buy Go beyond demographic


profiles and look at the benefits of behavioral targeting. If you
know purchase and usage behavior you can focus on television
programs with audiences having the highest composition of the
behavioral target (let's say medium to heavy users).

Focus on Geographical Markets that Matter the Most


many planners depend on low cost CPM efficiencies of national
media. In a national plan there is a tendency to under-deliver in
high priority markets. For example, consider the importance of
key urban areas in terms of population instead of the entire
country. Put the media weight where it should be.

Avoid Excessive Exposure maintaining weekly reach at


minimum effective exposure frequency levels helps avoid
excessive frequency and over-spending.

Spend When Return Will be the Greatest Consider recency


(see textbook for explanation) instead of the more common
flight pattern of typical media schedules. Knowing how to
optimally schedule spending across time will save money.

Avoid Over-spending in Any One Medium There is no


optimal media mix since the optimal mix will vary by the overall
spending level. Knowledge of media consumption patterns among
the primary target must be considered. For example, rushing to
the Internet is becoming common, but here must be a sound
rationale to do so.

Source: Joseph Abruzzo, How to Cut Media Spending without Hurting Sales,
Advertising Age, August 4, 2008, www.adage.com .

Copyright 2015 Pearson Canada Inc.

105

Chapter 7

5.

Plan Creative and Media Together


The media landscape is now more complex; consumers are now fully in
control of anywhere, anytime media access. Consequently, strategic
planning is now crucial as media planners provide insights and media
innovation.
Creative people have to appreciate the changes. Traditionally, media
planners have not worked alongside creative planners. They plan and
buy media without ever seeing the creative. Creative people lack media
knowledge; things like the phone as a medium, integrated crossplatform messaging or the increasing options within the digital
television environment.
We should be developing big ideas that can be carried cross-channel
and cross-platform, and which are offered in a way the consumer
chooses (or not) to receive the message. Coordination between creative
planners and media planners is essential given the changes that are
happening. This necessitates changes in culture in traditional adverting
agencies.
Further to the point, if digital agencies are working on the same project
as a traditional agency, they too must work together from the very
beginning. Clients should brief all of their agencies at the same time
and encourage cross-agency discussion. Delivering the same message
in a digital environment is possible but the strategy and execution
could be very different. Now, it is more common for the digital agency
to play a leading role in briefing sessions.

The Media Shift: Traditional versus Digital


Slowly but steadily media planners are recommending more balanced
strategies between traditional media and all of the digital media
platforms (laptops, tablets, mobile, video games and social media. As
well, other forms of communication such as Public relations and
experiential marketing are elbowing their way onto the front burner. In
short, what is happening to budgets is hard to explainso much is in a
constant state of flux!
Some advertisers are jumping into social media and viral campaigns (if
there is such a thing) simply because their competitors are doing it.
Many executives just cant get their mind around the difference
between traditional media and digital media in terms of how to

Copyright 2015 Pearson Canada Inc.

106

Chapter 7

measure their investment. A million people like our brand. So what,


many say. Show me some sales results or a lift in market share. In
terms of budget allocation some marketers are now in the 20% to 25%
range for digital media.
Media expert Sunni Boot of ZenithOptimedia explains things:
Traditional media continues to get the lions share because it continues
to generate the greatest results in terms of awareness, reach and
traditional ROI. However, traditional media is not being used in
traditional waysmore multi-platform executions are being seen than
ever before, and traditional media are leading the innovative ways of
using mobile, email, SMS, and sponsorships. She adds that many
media planners now consider online media part of traditional media.
In other words, media planners see no difference. But clients do! For
sure, this dilemma has to be resolved.
Source: Comments by Sunni Boot are from The Media Shift, Strategy, December
2008, p. 45 .

7.

Dont Forget About Radio


Other media are placing a lot of pressure on radio but radio has great
survival instincts. Many radio planners and buyers still say radio is an
effective tool in their kits. Since 2010 a total of $1.5 billion has been
spent on radio advertising annually in Canada ($13 billion in local
markets). Even as the Internets share has jumped from 3% in 2003 to
25% in 2012, radio has held its own in the market.
So why has radio survived and why must advertisers consider it? Radio
dominates in-car listening, with close to 66% of Canadians tuning in on
the road, according to Radio Engagement in Canada, a survey by
Vision Critical for the Canadian Association of Broadcasters. From an
advertisers perspective you have a captive audience in a car58% say
they listen closely when travelling in a car.
Other factors are also important. Radio is a local medium that is needed
for community information, news, traffic and sports. Over the years,
radio has proven to be a resilient medium, surviving everything that
was supposed to kill itvideo, CDs, satellite, and digital. Advertisers
shouldnt give up on radio.
Source: Matthew Chung, The Hits Keep on Coming, Strategy, November 3013, p. 17.

8.

The Future is Mobile

Copyright 2015 Pearson Canada Inc.

107

Chapter 7

Consumers are now using mobile devices for all the things they do on
their desktops and laptops. Essentially, mobile is the conduit for any
kind of content they want. For advertisers, new mobile formats and
targeting technology, such as location-based marketing, are providing
good opportunities to reach a fast-growing and moving audience. By
the numbers:

23 million Canadians are mobile phone subscribers


72% of mobile phone subscribers have a smartphone
The mobile market is equally split between females and males
43% use the Android
35% use Apple iOS

The smartphone audience by age covers all segments of the market:


Age Range
13 17
18 24
25 34
35 44
45 54
55 64
65+

% of Audience
7%
16%
22%
19%
18%
12%
6%

Mobile advertising revenues are growing fast. Advertising revenue in


2012 was $160 million in Canada and is projected to reach $240 million
in 2013.

9.

TV Viewers Distracted: Does the Message Actually Get


Delivered
If the TVs on and nobody is watching, does your ad make a sound?
Interesting question! A recent study by Canwest Global and Solutions
Research Group among female viewers revealed some interesting
information about viewing.
Viewer distraction is not new; people do leave the room, fall asleep or
engage n conversation when commercials are on. But, there are some
new distractions that advertisers must contend with. The study

Copyright 2015 Pearson Canada Inc.

108

Chapter 7

revealed that half of the women watching television also have a laptop
in front of them, 70 percent are on Facebook, and 65 percent use some
sort of wireless device at the same time. Under these circumstances will
a television commercial actually reach the viewer?
There is some good news. Since the introduction of PPM measurement
all kinds of viewing is measured; you might call it ambient viewing. For
example, three people may be watching television (different programs)
via the Internet in the same living room. The question remains though:
is anyone paying attention?
The study also revealed some insights into how women view television.
Some stations and cable channels are more attractive to them than
others and they pay more attention when viewing channels of higher
interest. Among these channels are the Food Network, HGTV, Mystery
TV, National Geographic and OLN.
Source: Jeff Beer, Canwest charts out difference between TV viewing and paying
attention, Marketing, February 11, 2010. www.marketngmag.ca .

10.

Strategy for Reaching Net Generation


The power and influence of the Internet cannot be denied, especially
when it comes to reaching the 11 to 31 year age groupthe Net
Generation. This group spends considerable time online researching
products they end up buying in stores. They always consult the Internet
before making a purchase. This behaviour doesnt show up in ecommerce data, but the practices strongly suggest that long held
tenets for reaching this group must change.
This group has grown up immersed in the Internet. They dont accept
the one-way approach; they have been immersed in two-way
communication since childhood. Raised in a world of advertising they
quickly detect spin when it comes their way. They are not impervious to
advertising but they are experts at filtering out unwanted messages
and fast-forwarding to skip commercials.
In short, the buying power of this group is such that they have the
power to change the way goods and services are bought and sold.
Marketers who adopt the Smart marketers ABCDE rules of marketing
stand to benefit with this groupanyplace, brand, communication,
discovery and experience.

Copyright 2015 Pearson Canada Inc.

109

Chapter 7

Adapted from Don Tapscott, Net Gen Transforms Marketing, Business Week,
November 17, 2008, www.businessweek.com .

ANSWERS TO END-OF-CHAPTER QUESTIONS


Review Questions
1.

In the media planning process the client is responsible for providing the
agency with relevant background information and a clear
representation of their objectives. The client analyzes the information
and develops appropriate strategies and executions to achieve the
objectives.

2.

Media objectives outline what the media plan will accomplish (a


guideline that considers who, what, where, when, and how to
advertise). Media strategies consider how best to advertise to reach the
target within budget. They delineate the best media alternatives. Media
execution refers to the specific media action plans (details on what
media, timing, and costs).

3.

The components of media objective statements and their explanations


are included in the chapter highlights section.

4.

In a profile-matching strategy, media whose target audience is similar


to the product's target market (demographics, psychographics, and
geographics) are chosen. In a shotgun strategy, more general media
are used to reach a wide cross-section of the population (e.g.,
advertising on a sitcom in prime time). In a rifle strategy, a medium is
selected that reaches a precisely defined target, usually on the basis of
a common interest (e.g., reaching golfers through Golf magazine).

5.

Reach, frequency, and continuity are interacting variables that


influence the media-planning process. Rarely is there an unlimited
supply of funds, so the three variables must be juggled in a way that
the objectives of the media plan are accomplished. For example, does
the planner recommend low reach, high frequency over a long period,
or high reach, lower frequency over a short period, or any other
combination?

6.

Gross rating points (GRPs) are an aggregate of total ratings in a


schedule, usually in a weekly period, against a predetermined target
audience. It is a description of audience delivery. Reach times frequency
equals GRPS.

Copyright 2015 Pearson Canada Inc.

110

Chapter 7

7.

Engagement refers to the involvement of the viewer of an ad with the


message (in any medium). The more engage the viewer the more likely
they are to see a message and pay more attention to it, at least spend
more time with it. If that is the goal of advertising then the message
and the media together will determine the degree of involvement.
Some media like newspapers and magazines get people more engaged
since they plan the time for reading. People may pay less attention
while watching television particularly during the commercial breaks. TV
may create awareness but not engagement. The media objectives will
help guide recommendations regarding what media to use.

8.

A key-market media plan purchases time and space in urban markets


that are identified as priorities. A selective media plan uses media that
reach a narrowly defined audience based on a common characteristic
important to the advertiser (e.g., Photo Life magazine reaches the
photography enthusiast).

9.

A pulse media schedule groups advertising into flights over a


predetermined period of time. The weight of advertising in each flight
may vary, hence the description pulsing. The combination of reach,
frequency, and continuity determines the overall weigh level for each
period.

10. A build-up media schedule has low media weight initially and gradually
builds to an all out campaign. A blitz schedule involves ha heavy
concentration of advertising initially and then it tapers off. Both
strategies are commonly used during the launch of a new product.
11. A concentrated media strategy recommends a selective list of media
(usually due to budget constraints) whereas an assortment media
strategy usually involves a multimedia campaign based on a larger
budget being available.
12. There are three stages in the media selection process: selecting the
general type of media, selecting the class of media within type, and
selecting the particular medium within class.
13. CPM stands for cost per thousand. It is a calculation used to compare
alternatives within a class of media (e.g., magazines). It is calculated by
dividing the cost by the circulation (in thousands). The lower the CPM,
the more efficient the alternative at reaching the intended target, at
least on a purely quantitative comparison.

Copyright 2015 Pearson Canada Inc.

111

Chapter 7

14. The key factors influencing the size of a budget are: size of customer
base, stage in the product life cycle, degree of competition, product
characteristics, and management commitment to advertising.
15. In the percentage of sales method of budgeting, the amount of goods
sold determines the budget. In the task method, the budget that is
recommended produces the sales. Which comes first: the chicken or the
egg?
16. There is a need for heavier advertising investment in the earlier stages
of the product life cycle as the objectives are awareness and trial. In
the mature stage advertising investment will be at a lower rate as the
goal is to make money rather than spend it. Investment in the mature
stage will be adequate to protect the brands market share position.
Discussion Questions
1.

Students must recognize the experience and expertise that is needed


to develop effective and efficient media plans. Clearly, the task should
be left to specialists at the various types of advertising agencies.
Consideration must also be given to the computer knowledge that is
required in today's media environment.

2.

Clients expect meaningful recommendations from the agency media


department for the commissions or fees they earn. It is doubtful that
the client is at the mercy of these recommendations, however. If the
agency-client relationship is built on trust, both parties will respect the
opinions of the other. Media plans are usually discussed and examined
in detail by the client prior to final approval.

3.

Which comes first: the budget or the media plan? Realistic clients
always have a figure in mind when it comes to advertising. Being profitmotivated, the client will be very cautious about how much is invested
in media advertising. On the other hand, clients also realize that an
effective media plan is built on achieving realistic objectives to which
costs can be applied. If they do not like the budget in this case, then
the objectives should be toned down. Agencies are accustomed to
working with a budget guideline as well as the need to tone down
aggressive objectives that cannot be achieved if adequate media
dollars are not available.

VIDEO CASE 1
Copyright 2015 Pearson Canada Inc.

112

Chapter 7

NineMSN

Time: 9:45
Key Issues
Strategies for Marketing a Website
Web Design Concepts
Digital Media Strategies
Nine MSN is a strategic partnership between channel Nine TV and MSN in
Australia. It is a website that communicates news content and a host of
other content of interest to consumers (shopping, entertaining, dining,
travel, etc.). The video initially focuses on some essential web design
concepts that encourage greater consumer engagement. It then introduces
the various media strategies that were employed to build awareness and
interest in the site. The communications strategy embraces mainstream
television ads on channel nine, the creation of a character called butterfly
man that is featured in commercials and video content, a viral marketing
campaign, email marketing and online advertising (banner ads).
Measurement and evaluation concepts are also introduced. The
effectiveness of the website is evaluated in terms of unique visitors, page
impressions or views, and time spent on the site (engagement).
Discussion Questions
1. Viral marketing: can it be planned or does it just happen? What is your
opinion?
2. Are the measurement techniques expressed in this video adequate for
measuring the success of a campaign? Do impressions and time spent
translate into product purchases?
3. Digital media communications seem to be the future of
communications. What role will mobile communications play in the
advertising mix? Do people pay attention to mobile ads? What is your
opinion?
VIDEO CASE 2
HSN: Direct and Online Marketing
Time: 6:30

Copyright 2015 Pearson Canada Inc.

113

Chapter 7

Key Issues
Media Planning
Media Trends
Media Integration
Direct-Response Advertising
Consumer Behaviour
This video portrays the growth of HSN, a digital television network in the
direct marketing business. The network is targeted at female shoppers who
control or influence 80% of purchases. In the context of media planning the
video shows how television is losing ground to digital media on many fronts.
Not to suggest that television is deadit continues to play a vital role in
creating awareness and interest in a brand. But, to get people to make
purchases there digital opportunities that make perfect sense, especially
when used in combination with television advertising. One of the attractions
of HSN is that customers willingly visit the network for specific content. They
are loyal visitors who will purchase goods. That has to be of high interest to
any branded good. Television advertising creates the awareness but
consumers today want to engage with brands before they purchase. Building
a stronger connection is important and thats a role that HSN can play in the
purchase decision process. HSN tells brand stories in different ways on
multiple platforms: laptops, tablets and mobile devices. Essentially, HSN is
an ideal medium for reaching the multi-tasking, multi-viewing female
consumer.
Potential Discussion Questions
1. What are some of the advantages of using a network like HSN for
selling branded goods?
2. What does the future of traditional television advertising? Will it be
fully replaced by digital advertising?
3. What does the future hold for any form of mass market advertising?

Copyright 2015 Pearson Canada Inc.

114

You might also like