Advertising Media Planning A Brand Management Approach, 3rd Edition By Larry Kelley, Donald Jugenhei

INSTRUCTORS MANUAL FOR Advertising Media Planning A Brand Management Approach, 3e Larry Kelley, Donald Jugenheimer, Kim Bartel Sheehan

INSTRUCTORS MANUAL FOR Advertising Media Planning A Brand Management Approach, 3e Larry Kelley, Donald Jugenheimer, Kim Bartel Sheehan

Instructor’s Manual Advertising Media Planning: A Brand Management Approach, 3rd edition Chapter 1. The Role of Communication in Advertising and Marketing •

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Advertising is part of the Marketing Communications. Marketers break up the Marketing mix into the four Cs (Commodity, Cost, Channel, and Communication). These four elements are analogous to the four Ps Reasons advertising media are critical to the success of your advertising — Advertising makes up most of the advertising budget (80–85 percent).

— A good media plan can ensure that the message reaches the right people at the right time and in the right mood.

— The message may be the most interesting part, but the media plan ensures the message’s success.

— Media are critical to the success of the brand.

— Executives do not understand media, but want to see their advertising running in the media.

— Media support product positioning; the positioning is meaningless without advertising media support.

— Media are changing. Dialogue-based messaging is replacing push-based messaging. As media outlets are consolidated, user-generated media is a collective response to perceived media control.

Media effectiveness is increasingly judged by how consumers use media, and how susceptible they are to a message.

Media are also judged based on return on investment, and the lift that each medium and vehicle gives to incremental brand sales.

Media inefficiency can result from excessive media overlap, frequency, and waste. Media planning can help advertising media planners avoid these inefficiencies by achieving the correct levels of exposure.

Advertising media planners need to navigate an evolving media environment in which print media shares have been shrinking and digital, social media growing.

Sample Questions 1.

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True or False: The message (including the theme, headlines, visuals, and copy) determines the success of an advertising campaign.

True or False: The difference between the executive’s perspective of the advertising plan and the advertising media planner’s perspective of the advertising plan is that the executive may not understand media, but wants to see the ad running.

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True or False: Advertising support is superfluous to product positioning; a product is positioned by consumer response regardless of an advertisement.

How has the consolidation of media outlets led to the rise of consumer-generated media?

True or False: Twitter, Facebook, and blogs, whereby consumers provide feedback to advertisers, represent push-based media.

True or False: Media efficiency is primarily determined by getting the best price for your advertising.

Answers 1.

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False True False As media outlets are consolidated, user-generated media is a collective response to perceived media control.

False False

Chapter 2. Outlining the Components of a Communication Plan •

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The difference between a communication plan and a media plan is the approach to solving the marketing problem. In the latter, the advertising is the solution, in the former, the advertising media is one of many alternatives to solve the problem. A communication plan considers the array of communication mix options.

A communication plan should be strategy neutral—it doesn’t assume one communication method is better than another when planning.

A communication plan features the following elements: — Executive Summary: How communication is tied to the business goals of a brand.

— Situation Analysis: The context for the plan, including a SWOT analysis.

— Marketing Objectives/Strategies, including business and brand objectives.

— Role of Communication: How communication will solve the problem.

— Communication Objectives: Target market, geography, season/timing, reach/frequency/continuity.

— Communication strategies, including the communication mix and scheduling.

— Communication tactics: Address each media vehicle.

— Communication Budget: Recap of the dollars by channel and by month.

— Communication Flowchart.

— Testing and Evaluation to show how the increase in media pressure might impact the market and solve the problem.

Sample Questions 1.

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What is the difference between an advertising media plan and a communication plan? a.

In a communication plan, advertising is the solution. b.

In a media plan, the advertising media is one of the many alternatives. c.

It depends on the marketing problem.

True or False: All communication plans derive from a marketing strategy.

Is setting objectives around the number of customers and sales an example of business objectives or brand objectives?

What are the “Big Four” communication objectives?

Name three communication components you would analyze against competing brands in the situation analysis section.

Answers 1.

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C False Business objectives (1) Target market, (2) geography, (3) season/timing, (4) reach/frequency/continuity Pricing, distribution, resources, and product differentiation.

Chapter 3. How Marketing Objectives Impact Communication Planning • • • • •

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An advertising media plan does not begin until you have first established objectives.

Objectives may be divided into marketing, communication, advertising, and media categories, and should be developed in that order.

A contingency plan should be developed after the media plan has been completed, and is an alternative plan and allows for transfers among media choices.

Media planning should answer questions on what types of people to target or the best locations in which to market.

In media planning, you start with your point of origin, your situation analysis, and then you set up your objectives. Afterwards, you work backward from your objectives to identify what is needed to meet your goals.

The stages in media planning include objectives and goals first, then strategies (or how to achieve your goals), and finally, tactics by which you implement your plans.

Advertising media are strategies, or ways for reaching media goals. Do not establish goals to use certain media.

Good objectives determine where you want to go with your efforts. Good objectives use the infinitive form of a verb, are quantifiable, and are consistent with other goals.

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In the best-case scenario, both the advertising message and the advertising media will be developed concurrently, so that each can draw on the capabilities of the other.

Sample Questions 1.

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Gordon’s Gumbo, a start-up company in the Gulf Coast region, is looking to gain brand recognition as a unique alternative to soup. Which of the following should Gordon’s Gumbo do first in their planning efforts: a.

Identify primary locations for billboards; b.

Choose between using a street-team guerrilla marketing approach or exposure in local broadcast media; c.

Identify the market entry point and establish marketing objectives for brand recognition and sales goals.

Which should come first, development of the advertising message or selection of the advertising media?

What is the difference between a contingency plan and a reserve fund?

True or False: In the research phase of your communication planning, you should include such questions as what advertising media should we use in the upcoming campaign?

Matador Media has decided to use Hulu as an outlet for raising awareness for its clients’ campaigns. This is an example of: a.

An objective b.

A strategy c.

A tactic

Answers 1.

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C Neither, both should be developed together.

A contingency plan is an alternative to the plan; a reserve fund is part of the advertising budget set aside for emergencies.

False B

Chapter 4. Working with a Situation Analysis •

A SWOT analysis is an assessment of the Strengths, Weaknesses, Opportunities, and Threats facing a brand. Strengths and weaknesses are internal. Opportunities and threats are external.

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A SWOT analysis must begin with a goal in mind, and should feature both marketing and communication elements that can impact the brand. Consumer trends and the consumer’s viewpoint of the brand should also be considered.

Sample Questions 1.

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What is the difference between a strength and an opportunity in a SWOT? What is the difference between a weakness and a threat in a SWOT? Writer’s Inc, a media firm, conducted a SWOT for a client that sells trophies and awards for juvenile sports leagues, and found there is a need for an awards-based company among sports leagues in a neighboring State. This represents a(n): a.

Strength b.

Weakness c.

Opportunity d.

Threat True or False: In developing a SWOT for an IMC plan, you should identify consumer trends that impact the brand.

If Pepsi increases its marketing budget by 50 percent, that could negatively impact Coke.

This is an example of a(n) __________ for Coke. a.

Weakness b.

Threat c.

Strength d.

Opportunity

Answers 1.

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A strength is internal; an opportunity is external.

A weakness is internal; a threat is external.

C True B

Chapter 5. Defining the Target Audience • • •

Defining the target market and audience are the most important elements in building an effective media plan.

A target market refers to the geographic market. A target audience refers to the media audience of a campaign.

The best place to begin to define the target is with the behavior you want to change.

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It is important to remember that not every target group can be reached in its entirety by media.

There are multiple ways to define a target audience: — Consumption, or the extent of usage (i.e., heavy users vs. light users). You should analyze usage by brand influences and category influences, as well as the gap between competitive brands.

— Lifestyle and life stage. Lifestyle segmentation may include where audiences live and how affluent they are. Life stage segmentation is dictated by age and life situation.

— Generations, or the way in which consumers are connected not only by age but by various milestones and periods of time. Some unifying characteristics include music, fads, inventions, politics, and social movements. Generation segmentation is effective via the emotional and historical linkage between audiences.

— Behavioral targeting, or how members behave and their activities toward the brand and outside of the brand’s context.

The brand should be considered based on the influences on the actual purchaser of the product. In the retail and service area, an employee exerts a huge influence and is key to customer satisfaction.

There are two main assumptions of ethnic diversity and media use. On the one hand, ethnic audiences attend to general market media. On the other, they use media tailored to their specific culture.

Two ways to plan for ethnic diversity in a media plan are: 1 a brand manager determines what percentage of the ethnic population is underdelivered by the general market media and make up that difference in ethic media, and 2. a brand manager determines what ethnic group to target and chooses media appropriately.

You should assess the cost impact of your target audience decision, and recognize that though harder to reach groups cost more, some media are designed to reach a narrow audience.

Sample Questions 1.

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What is the difference between a target market and a target audience?

In the purchase of children’s products (i.e., toys, video games, and breakfast cereal), who might be the most appropriate “influencer” of a brand purchase decision, and why?

True or False: The Pareto principle for heavy-users of your brand is that 20 percent of your product is consumed by 80 percent of your audience.

Targeting an audience based on those who remember Ronald Reagan declaring “Mr. Gorbachev, tear down that wall” is an example of:

5.

a.

Behavior targeting b.

Influencer targeting c.

Generational targeting d.

Geographic targeting True or False: An employee may be excluded from consideration as a brand influencer.

Answers 1.

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A target market refers to the geographic market. A target audience refers to the media audience of a campaign.

Children, because they influence their parents to purchase.

False C False

Chapter 6. Geography’s Role in Planning •

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One of the most common problems a brand manager faces is matching up marketing areas to media planning geography. Geographic planning should start with understanding market-area definitions, then an analysis of the brand’s strengths and weaknesses, and how to treat different market groups.

Media planners use the following geographic units: — Designated Market Area (DMA): A group of counties that get the majority of their television viewing from the same home market.

— Metropolitan Statistical Area (MSA): A metropolitan region designated by the U.S. Census.

— Nielsen panel data or IRI data to analyze sales information.

— Your store’s trading area, or the area in which your customers live and work.

The difference between business marketing and consumer marketing is that the decision process can involve more than one market. For example, a brand manager may have to develop a different strategy for users of the service vs. those living around the corporate headquarters.

Geography may be analyzed by two factors: brand development index (BDI), which tells how strong a market’s sales are in relation to its population size, and category development index (CDI), or the percentage of a category sales compared to the percentage of the population.

— CDI is a measure of potential, BDI is a measure of brand strength.

— Brand opportunity index (BOI) may be calculated by dividing the CDI by the BDI. Advertising has the best opportunity to grow a brand where it has a strong BOI.

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Distribution may be considered using the all commodity volume (ACV), or the percentage of the distribution channel in which the brand is available. Distribution may be further analyzed by doing a sales-per-distribution-point analysis, which looks at the sales-velocity-per-distribution percentage.

Television can be purchased on a DMA basis locally, or on a network television basis nationally. Cable television can be purchased locally, nationally, or regionally. Radio airtime is often purchased on an MSA basis.

The rule of thumb for calculating when television becomes more cost efficient than buying spot television is when the brand is available in approximately 2/3 of the states of the United States.

Sample Questions 1.

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What is the difference between a DMA and an MSA? Calculate the BDI for a brand that has 5 percent of its sales in city that has 3 percent of the population of the United States.

Let’s say Brand A has a CDI of 120 but a BDI of 80 in Chicago, and a CDI of 120 and BDI of 150 BDI in Boston. Calculate the BOI to determine whether the best opportunity for brand development is in Chicago or Boston.

Which one of the following is most likely to use a sales-per-trading-area analysis for evaluation? a.

Gordon’s Gumbo, a restaurant with multiple locations throughout the New Orleans area b.

Rocky’s Raccoons, an online taxidermy distributor that operates primarily as an Amazon.com merchant True or False: Cable is more efficient than broadcast television on a local basis.

Answers 1.

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DMA is a group of counties that get the majority of their television viewing from the same home market. MSA is a metropolitan region designated by the U.S. Census.

166.67 or 167 150 vs. 80: Chicago A False

Chapter 7. Seasonality and Timing

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Advertising commonly divides the year into quarters, and each quarter is considered 13 weeks long. The highest levels of competitive advertising come in the fourth quarter, even though consumers’ media usage goes up during the first quarter.

Consumer purchasing is often affected by weather, day of the week, or time of day.

Advertising media scheduling is also based on consumer susceptibility of a message at specific times, flexibility in your media buys allowing for quick tactical changes in media placements, your advertising budget, and your share of advertising vis-à-vis your competitors.

Determining when your advertising waves should run depends on the purchase cycle of your brand, the likelihood of brand-switching by customers, the anticipated levels of competitive activities, and the life cycle of your brand and product category.

Your advertising can induce an “irritation factor” which is a negative reaction to a surplus of advertising.

Political windows, or the time preceding primary elections, can impact the availability of advertising, and can keep an ad from running as scheduled. Negotiating media costs during political time periods is also limited.

Sample Questions 1.

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Joshua’s Jamas, a direct distributor of adult pajamas, would like to reach as much of its audience with the least competition from competitors and during the most appropriate season. The company has determined that the first and fourth quarters of the year are equally the most appropriate in terms of seasonality. Considering their other goals, which quarter should they choose to “heavy up” on advertising and why?

That customers in the Gulf Coast are more likely to purchase emergency preparedness products during the Hurricane months is an example of: a.

Flexibility b.

Susceptibility c.

Competitive advertising waves True or False: It is best to advertise as much as possible to reach your audience, even if that means scheduling more than enough advertisements to exceed the irritation threshold in most markets.

Why is negotiating lower advertising costs difficult during political windows?

Why is flexibility important during political windows?

Answers 1.

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First quarter, because all other things equal, it has the least competition.

B False

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Because political ads, which get precedent, limit how much a media outlet can make on an advertisement, and so they will be less likely to lower costs.

Because political ads take precedence.

Chapter 8. Competitive Analysis: Implications in Planning • •

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Contingency plans allow brands to react quickly to competitive threats.

Though a SWOT may be quick and effective in conducting a competitive analysis, other tools include: — Share of spending (SOS): How much your brand spends in relation to your competitors expressed as a percentage of total dollars spent in a category.

— Share of voice (SOV): Actual impressions delivered as a percentage of the total category impressions, taking into account the delivery for each medium.

After determining SOS or SOV, Share of Market (SOM) is determined by dividing the market share into the share of spending.

Media strategy may be developed using competitive spending analysis, in which a brand manager will determine which media outlets the brand has the best opportunity to stand out from competitors.

Advertising-to-Sales Ratios are calculated by dividing the total advertising expenditures by the total amount of brand sales, or revenue.

A trend-line analysis allows the brand manager to see the rate of spending over time, and can be compared to sales growth in the category to determine the vitality of the category.

Marketing mix modeling is a statistical process of combining robust consumer data into a multivariate statistical analysis of influences on spending to determine what aspects of the marketing mix are most effective.

Sample Questions 1.

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Reports that offer quick and current data on a competitor’s broadcast advertising is known as: a.

A topline report b.

An impression report c.

A marketing mix model What is the difference between Share of Voice and Share of Spending?

Parker’s Apparel, a fashion designer, wants to determine whether it should increase advertising spending, or maintain its spending levels. The brand has a 30 percent market share with a 15 percent share of category spending. Based on these numbers, should they increase spending or maintain the current ratio?

True or False: Like other media, estimated costs and scheduling for a given competitor can be determined for Search Engine Marketing (SEM).

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Brand A wants to analyze Brand B’s advertising spending. Brand B is a $300 million brand but spends $20.5 million on advertising. Calculate the advertising-to-sales ratio.

Answers 1.

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A Share of spending is the percentage of total dollars you spend in a category. Share of voice is the actual impressions delivered as a percentage of the total category impressions.

Increase spending.

False 6.8 percent

Chapter 9. Creative Strategy: Implications in Planning •

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Creative often applies only to copywriting, but is not limited to those who write and illustrate ads. A better term would be message strategies or message functions, to include the research, production, and management that goes into creative strategy.

The creative department may think mostly in terms of creativity rather than in terms of strategic media choices.

A creative strategy requires decisions on creative necessities, including motion and demonstration, the use of visuals, coupon distribution, and specificity of information.

When providing information, media choices will depend on audience familiarity, or how familiar the audience is with your product, service, or advertising theme, message complexity, legal requirements about the message, and the level of depth of the information needed.

Creative strategy also requires decisions on the weights and patterns of the advertising.

Every media plan must make critical decisions on efficiency vs. impact (i.e., whether to spend money on a large advertisement or spread the money out over farther reaching but smaller advertisements).

Sample Questions 1.

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What is the difference between the creative department’s approach to the message and the advertising media planner’s approach to the message?

What are three creative necessities in producing a message?

What are three factors that influence the information you impart in a message?

What are the trade-offs of an efficiency vs. impact message decision?

True or False: More than one brand can have the largest budget with a product or service category.

Answers 1.

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The creative department may think mostly in terms of creativity rather than in terms of strategic media choices.

(1) Motion and demonstration, (2) the use of visuals, (3) coupon distribution, (4) specificity of information.

(1) Audience familiarity, (2) message complexity, (3) legal requirements.

Spending a lot of money on reach may limit how many ads per medium and the impact of each ad, spending money on large/long ads will limit the size of audience or reach.

False

Chapter 10. Working with a Communication Budget •

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Every budget is put into the context of the total sales or revenue of the company.

Allocating the communication budget is the key strategic item in meeting the overall communication objective.

Once the communication budget has been determined, the advertising manager reviews four categories: 1.

Working dollars: Dollars allocated to programs that will impact the market.

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Non-Working Dollars: Dollars allocated to the creation of the programs.

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Contingency Dollars: Situational dollars set aside as a cushion for potential cost overruns.

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Agency compensation.

More working dollars leads to greater market success, so the need is to optimize the working percentage of the communication budget.

Allocation is driven by each brand’s marketing and communication objectives.

Sample Questions 1.

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True or False: The CEO decides what percentage of the company’s sales will be devoted to marketing and to communications.

Calculate the percent of total sales allocated by a company to advertising that spends $6 million on advertising with a total annual revenue of $225 million.

Cape Horn Clothiers has allocated $4 million to paid media and promotions, $1 million to producing the messaging, and $500,000 to compensate Writer’s Inc., their agency of record. How much has Cape Horn allocated for working dollars? a. $5.5 million b. $4 million c. $1 million

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d. $500,000 What is the difference between working and nonworking dollars?

True or False: There is one right way to allocate communication dollars.

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True 2.6 percent or 3 percent B Working dollars are money devoted to an activity that is directed outward or impacting the marketplace, nonworking dollars are allocated to the creation of programs False

Chapter 11. Setting Communications Objectives • • •

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Communications objectives are reduced to the Big Four dimensions: Reach, Frequency, Continuity, and Impact.

The brand’s product purchase cycle is the lead factor in determining how many weeks you advertise.

Advertisers approach message distribution based on two theories: primacy vs. recency.

Recency prescribes that consumers react to purchase opportunities of a recent message; primacy, that consumers react to the first message in a category. Recency theory is the current priority in the advertising industry.

Once you have established your brand’s purchase cycle, you should establish reach and frequency goals.

Target reach goals are usually set at 80 percent or lower, because the point at which it is difficult to get incremental reach is at 80 percent.

Target frequency is often based on the average-frequency concept, or the number of times a consumer may see a brand’s message in a given time frame. Effective frequency is the number of times a consumer must see a message to retain the message, which according to research is at least three times.

Effective reach is a factor of effective frequency, it is the percentage of the audience reached more than three times.

Factors that influence effective reach include your brand maturity, awareness, competition, the newness of the copy, and the type of message.

Recency theory puts emphasis on being constantly in the market because it operates off of the assumption that advertising impressions should be as close to the point of purchase as possible.

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The debate between continuity of a message and impact of a message often comes down to the trade-off in the amount of weight in a purchase cycle vs. the number of purchase cycles with media weight.

Another way to approach communications goals is to start with the response you are trying to achieve and work backward.

Sample Questions 1.

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A brand wants to be the first to advertise its message in the market; this is an example of: a.

Recency b.

Primacy How many times do consumers have to see a message before they retain the message?

What is the difference between effective frequency and effective reach?

Let’s say you are a seeking to reintroduce a brand into the market with new competitive elements to the brand and you want to reach your audience as close to the point of sale as possible. Which would you use? a.

Frequency b.

Recency True or False: The concept of recency puts more emphasis on being constantly in the market.

Answers 1.

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B At least three times.

Effective frequency is the point at which the advertising frequency becomes effective or motivating. Effective reach is the percentage of the audience whose frequency is at least 3 times.

B True

Chapter 12. Establishing Media Objectives and Tactics •

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Media objectives outline where you want to go. Media strategies outline how to get there.

Media strategies are using categories of media, media tactics, using specific media vehicles.

Media strategies take two forms: (1) the media mix, or the combination of media you envision will achieve the objectives, and (2) media scheduling, or when you recommend deploying media.

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The best way to organize media strategies is to match them to the four media objectives: target, geography, seasonality/timing, and reach/frequency.

Media tactics include four components: 1.

Description, or the details you are recommending. Descriptions vary by the medium chosen.

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Costs, at both the category and tactics levels.

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Impressions, or the amount of target reached. Impressions are increasingly the measurement standard for reach in tactics.

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Rationale for the tactics you recommend.

Sample Questions 1.

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What are the four components of media tactics?

The Exfoliator, a revolutionary new health and beauty product, plans to advertise primarily via media that attracts teenage girls, including magazines, websites, and television programming. This is an example of: a.

Media strategy b.

Media tactic Why should a media planner develop three or more alternative plans?

True or False: Planning based on Gross Rating Points (GRPs) is a media tactic.

Media mix and media scheduling are components of the a.

Media strategy b.

Media tactics

Answers 1.

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(1) description, (2) cost, (3) impressions, (4) rationale.

A Because there is more than one way to meet the objectives outlined.

True B

Chapter 13. Learning the Language of Media Planning • • • •

Media are the go-betweens, the facilitators that make it possible to deliver a message.

A media vehicle is a single media outlet.

The advertising unit is the individual advertisement.

Four concepts that underlie most advertising are: 1.

Reach (R), including numerical and percentage reach.

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Frequency (F), including frequency of insertion and frequency of exposure.

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Impact an advertisement has on the audience, which is based on headline, illustration, body copy, and other message components.

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Continuity, or the scheduling of the advertisement and the way in which subsequent messages build on the gains of previous insertions.

Audience may be considered in the following ways: — Copies printed vs. People in the Audience. Copies printed is the actual number of publications distributed, while total audience is the circulation multiplied by the number of readers per copy.

— Accumulative Audience (or Cume). The total number of different audience members you have reached.

— Unduplicated audience. The total audience size if your advertising is in a combination of media vehicles.

The difference between accumulative audience and unduplicated audience is accumulative audience is based on advertisements in a single vehicle, whereas unduplicated audience is the total number of different people exposed in a combination of media vehicles.

Television Households (TVHH) are the number of households with an operating television. Households using television (HUT) are the number of households with a television turned on as a percentage of all television households.

Audience percentage measurements are based on ratings and share. A Rating refers to the persons who see or hear a particular program as a percentage of all TVHH. A Share is those persons tuned to a particular program station or network as a percentage of all HUT. Rating and share involve the same people, those tuned to a program, but rating is based on percentage of all households and share is a percentage of households with a television on.

Rating tells how the time or space segment fares with the total potential audience in the marketplace, share tells how well a media vehicle competes with other vehicles in the marketplace.

In print media, ratings are commonly discussed as coverage.

Gross Rating Points (GRPs), or the sum of ratings for a certain period, are measured by multiplying reach (as a percentage) by frequency. A single rating point reaches one percent of the audience.

Target Rating Points (TRPs) are GRPS applied to the target audience, and should be higher than GRP figures.

Total Audience Impressions (TAI) are a figure of numerical reach, rather than percentage, and are calculated by multiplying reach as a number by frequency.

The term impression (IMP) represents every time a piece of advertising is seen or heard.

An audience impression is a member of the audience being exposed to your advertising

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one time. Total impressions can be used regardless of medium. The Internet has made total impressions a more meaningful and scrutinized number.

Online terminology includes unique visitors to a site (or unduplicated audiences), ad clicks (a user’s click on an ad that results in the user being redirected to another Web site), click rate, or the number of clicks divided by total number of ad impressions, clickthroughs (taking an action on an ad) and mouse-overs (placing a cursor over an ad without clicking), and conversions (the action people take based on an ad).

The best place to start with understanding the media universe is to understand your consumer universe and convey that universe to the media team so that everyone is on the same page.

Sample Questions 1.

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Gordon’s Gumbo calculates its reach using numerical instead of percentage reach.

Gordon’s Gumbo uses a.

GRPs b.

Total audience impressions True or False: Total impressions are a measure that can be used regardless of the medium.

Calculate the GRPs of a campaign that featured 4 placements and reached 15 percent of the population.

True or False: Calculating audience impressions counts members of the viewing audience whether it’s the same person or a new audience member viewing the ad in a given period.

Which one of the following tells how well a media vehicle competes with other vehicles in a given marketplace? a.

A share b.

A rating c.

An impression

Answers 1.

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B True 60 GRP True A

Chapter 14. Learning about Media Costs

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There are two types of cost analysis: absolute costs and relative costs. The first question to be asked is “What can I do effectively for the dollars I have to invest?”

It can be difficult to compare one media vehicle to another because you must take into account the advertising unit rates or prices along with the reach or impressions that they deliver. The comparison can be made using CPM (cost per thousand) by dividing the advertising rate by the circulation and multiplying it by 1,000.

CPMs, used in every media analysis from print to broadcast to online, can be weighted using an impact score for each medium.

Cost-per-point (CPP) compares broadcast vehicles on the basis of how much it costs to reach one percent of the audience, and is derived by dividing the cost by the rating. CPP allows you to quickly figure costs by taking into account the size of the market.

Cost-per-click (CPC), used in online media, is calculated by dividing the media cost by the number of clicks obtained. Cost-per-lead (CPL) is also used. Some online planners use cost-per-action (CPA), or the cost of generating a sale, acquiring a customer, or making a transaction.

Production costs may be calculated using various methods, including cost-plus (or the production cost plus a certain percentage (15–20 percent) depending on type of work, time-based compensation, performance-based compensation, the value of the overall work, and other fees, including the costs of public relations work.

Sample Questions 1.

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4.

5.

Magazine A, which has a circulation of 500,000, charges $15,700 for an advertisement.

Magazine B, which has a circulation of 750,000 charges $20,500 for an advertisement.

Which one represents the most cost-effective choice for placing an ad?

Radio station A costs $6,700 per commercial unit and reaches 5.2 percent of your audience. Radio Station B charges $7,100 per commercial unit and reaches 6.1 percent of your audience. Which one is the most cost-effective choice for placing an ad?

True or False: The more sales generated by the advertising, the lower the production costs.

Jiminy’s Parasols compensates its advertising agency based on the impact of its uses of different advertisements. If the agency places more print than radio ads, Jiminy’s compensates the agency more than if it places more online media ads. This form of compensation is: a.

Value-based b.

Performance-based c.

Time-based d.

Cost-plus Evaluating public relations work is often based on earned-media, which incurs little to no media costs. How would you evaluate public relations work?

Answers 1.

2.

3.

4.

5.

Magazine A Radio Station B False A Using performance-based or value-based measures is a possible answer, but time spent working on the account is the most common valuation method.

Chapter 15. General Characteristics of Media • •

•

•

• • •

The most commonly used characteristics in advertising media analysis and selection are audience qualities and media attributes.

Audience qualities include: — Demographics, Psychographics, and Sociographics — Audience involvement with the medium, and audience activities and habits (i.e., certain media types and vehicles reach certain audiences in certain ways) — Classification of audience as influentials vs. followers — Audience lifestyle, or the way that an audience’s lifestyle impacts people’s tendency to purchase certain kinds of products.

Media Attributes include characteristics of the mass media, themselves, including cost, cost efficiency, reach, frequency, irritation factor, advertisement characteristics (i.e., color, motion/demonstration), scheduling, exposure, flexibility, availabilities, coverage, selectivity, responsiveness, and relevance.

Scheduling in waves can help avoid the irritation factor and can keep an advertising campaign fresher for a longer time. Flight saturation is the high point in the wave, hiatus is the low point of advertising intensity. The sustaining period is a moderate period of advertising after a wave.

“Avails” are available time slots in broadcast media.

A media planner should consider the coverage of a medium, or the extent to which certain media do a better job of covering certain audiences.

Media planners also consider how an audience is portrayed through the media. From these portrayals, the audience members learn what kinds of people are being targeted and what uses and benefits they might gain from purchasing a service or product.

Sample Questions 1.

When you consider media based on the way consumers interact with or consider a media type, you are considering

2.

3.

4.

5.

a.

Responsiveness b.

Selectivity c.

Waves d.

Coverage Bob’s Buns, a local restaurant that has built its brand around healthy hamburgers, wants to target people based on their value of purchasing healthy products, regardless of the cost. To assess its audience, Bob’s Buns would use a.

Demographics b.

Pyschographics c.

Selectivity True or False: An audience member places himself or herself into an advertising message, regardless of the audience portrayed in the advertisement.

True or False: Scheduling in waves can increase the irritation factor.

What is the advantage of a slice of life commercial vs. a straight-sell ad in appealing to an audience member’s lifestyle?

Answers 1.

2.

3.

4.

5.

A B False False Slice of life helps the audience member put himself or herself into the ad based on personal activities.

Chapter 16. Broadcast Media • • •

•

•

Broadcast media refers to television and radio media.

Television stations are often joined together in chains called networks and affiliated network stations.

Television commercial announcements vary in type, and include participations, or commercials within the body of a program announcement; spot advertisements, or commercials between programs; and sponsorships, or advertising that sponsors an entire television program.

The cost of television advertising depends on the size of the audience, which varies by station, program, and time of the day. An advertiser can pay a full rate to guarantee having an ad at a particular time, or risk paying a preemptible rate that is cheaper but can be taken away by an advertiser who is willing to pay more.

Unsold time decreases in price as the station tries to sell it at bargain prices.

• •

•

•

• • •

•

•

Cost comparisons are made using CPM or CPP. Discounts can be attained for scatter packages, in which an advertiser earns a discount for multiple purchases.

Television advertising buying starts in the upfront period in advance of the new season, followed by scatter buying of the programs still available and then opportunistic buying for the leftover slots. Advertisers can request an “out” for a program that is cancelled early.

Television viewing audiences may be measured in terms of DMAs, or the entire area where most of the households receive their television from a certain market, households using a TV (HUT), persons using a TV (PUT), and ratings, or the percentage of all television households viewing a particular station, program, or network.

Rating and share count the same audience—those with sets on and tuned to a particular program, station, or network—but the difference is that a share is the percentage of TVs turned on, whereas a rating is the percentage of all television households.

A GRP is the sum of all ratings for all the programs on which you advertise. A TRP is the sum of all ratings for your target group.

Ratings surveys occurs four times a year (usually in November, February, May, and August) in the largest markets, and are known as rating “sweeps.”

A projected audience is calculated by taking the rating survey percentages and projecting them onto the total audience numbers to estimate how many households or persons are viewing.

The commercial break when commercials are run is called a pod. If your commercial is run improperly, you will be offered a “make-good” which is an opportunity to run the commercial again in an equivalent time slot. You may also cancel the buy, instead.

As with any advertising medium, you should buy the times and spaces that best match your needs, not necessarily that which the sales rep is pushing or that has an attractive packaged price.

Sample Questions 1.

2.

3.

4.

The highest-rated radio listening time is referred to as a.

Drive time b.

Shift time c.

Late evening time True or False: Television advertising has a high mortality rate.

A variety of broadcast advertising slots is referred to as: a.

Spot advertising b.

A scatter package c.

Sponsorship What is the difference between participations and spot advertising?

5.

Galoshes R’ Us calculates its audience reach by comparing reach to the number of households that have a television set on during its advertising. Galoshes R’ Us is using a.

Rating b.

Share c.

Projected audience

Answers 1.

2.

3.

4.

5.

A True B Participations are commercials within the body of a program, spot ads are between programs.

B

Chapter 17. Print Media • •

•

• •

•

•

Print media include newspapers and magazines.

Two types of newspaper advertising are classified advertising, or want ads at the back of the newspaper, and display advertising, which is marked by larger sizes and found throughout the rest of the newspaper. The boundaries between the two are disappearing, as newspapers will accommodate classified displays, which are larger announcements but considered classifieds.

The Standard Advertising Unit (SAU) was developed to establish standard sizes of newspaper advertisements in response to the lack of uniformity in page size of newspapers.

Newspaper space is usually sold by the column-inch, which is a space measurement one column wide by one inch high.

Advertising rates are divided into several categories, including flat rate (no discounts), open rate (highest rate charged before discounts may be applied), combination rate (a lower advertising rate to advertisers who use more than one paper in the chain), and short rate, or the difference in cost when an advertiser fails to earn the discounted rate.

Discounts may be earned for quantity, frequency, and continuity. The difference between frequency and continuity is that frequency applies to the total number of ad placements; continuity, to the regularity of placements.

Newspaper circulation is defined in terms of paid circulation, the number of copies that were delivered to paying readers, and the number of readers who actually read the publication. Newspapers provide advertisers proofs, or advanced copies of the advertisement, and tearsheets, or pages torn from the actual newspaper.

• •

• •

•

•

•

• •

•

•

Advertising frequency is defined as advertising often, repetition is defined as placing the same ad more than once.

Many advertisers believe that an advertisement on a right-hand page and in the front of the publication draws the most attention, and thus they often specify “right-hand page, far to the front.” Research shows that these factors are not significantly better in newspapers.

Co-op ads share the costs between the local retailer and the manufacturer or wholesaler, in an effort to take advantage of having a local retailer place an ad at a lower local rate.

Magazine circulation is defined in terms of primary audience, or those persons who receive the publication by subscription or purchase, and secondary (“pass-along”) audience, or those who get the publication from someone else. Audience designations also include “cumes” or total number of persons who see or hear an ad at least once in a single magazine, unduplicated audience, all the persons who are exposed to an ad at least once in a combination of vehicles (“net reach”), and duplicated audience (“dupes), who are those persons exposed more than once to an ad. Total audience impressions refers to the sum of every ad exposure by the entire audience.

The difference between frequency and repetition is that frequency is the number of times people are exposed to an advertisement, whether or not the ad is repeated, and repetition is using the same advertisement more than once, whether or not it is done frequently.

Advertisers look for premium position in consumer magazines, though research has found that placement makes little difference. Readership of an ad is the subject of the ad, the interests of the audience, and the size and frequency of exposure to the ad.

There are three sizes for magazine ads: (1) Life-sized page (the largest size), (2) Timesized page (the size of Time magazine), and (3) Digest-sized page, the size of a Reader’s Digest.

To test various versions of an ad, an advertiser may ask for a split run and place different versions of the ad to different divisions of the audience.

Business publications are categorized as vertical (those that reach all levels within a single industry) and horizontal (those intended for a single job function within a crosssection of industries. Business publications may also be categorized as industrial publications, institutional publications, professional publications, and merchandising publications (categories that may not be mutually exclusive).

Advertising pricing is defined in terms of bulk rates (quantity discounts), and frequency rates (frequency discounts). Most magazines charge premium prices for cover positions and preferred positions.

Business publication circulations can be categorized as free circulation and paid circulation, as well as controlled circulation and uncontrolled circulation. Distribution paid circulation is where a publisher sells the magazines in bulk to a business, and then provides them for free.

•

Frequency is essential for successful business publication advertising, and position is also an important factor. Advertisements are more effective in the front one-quarter of the publication, as well as on the right-hand page and when facing another advertisement.

Sample Questions 1.

2.

3.

4.

5.

How is the importance of advertising “position” different between consumer magazines and business publications?

Brand X would like to reach a wide audience specializing in a specific job function.

Which type of business publication would it choose? a.

A vertical publication b.

A horizontal publication True or False: Getting a right-hand, far to the front position in People magazine or the New York Times, is more effective advertising than any other position.

Why is it important to know the difference between primary audience and secondary audience?

True or False: Dupes are those people who have been enticed to take an action based on a print media advertisement.

Answers 1.

2.

3.

4.

5.

For business publications, right-hand, front position is important, for consumer magazines premier position is not important.

B False Primary audience is an identifiable number, secondary audience varies and is estimated at best.

False

Chapter 18. Out-of-Home Media • •

•

Out-of-Home media includes outdoor advertising, transit advertising, and digital advertising opportunities.

Outdoor advertising consists of billboards and permanent signs. The standard-sized billboard is a 24-sheet or 3-sheet poster. Billboards smaller than the standard size are referred to as “junior panels.”

Outdoor advertising is often purchased in showings, though it is shifting to GRPS. The standard buy is 100 GRP over a four-week period. A buy of 200 GRP does not necessarily achieve twice the audience impact as 100 GRP, it only means you will be using twice as many billboards.

• •

•

Transit advertising uses the inside and outside of a transit vehicle and station.

Transit advertising is sold by a showing or a “run.” A full showing has one card inside every vehicle in the system, a half showing allows for one card in every other vehicle.

Double and triple showings are also common.

Digital out-of-home media often refer to moving or changing advertising, such as video screens, and are often referred to as “dynamic media.”

Sample Questions 1.

2.

3.

4.

5.

True or False: A showing of 100 in outdoor advertising guarantees you will reach 100 percent of your audience.

Excellence Media has chosen to use outdoor media for its advertising, and would like to choose the option with the most captive audience. Which media option would be best, transit or billboard advertising?

How many sheets of printed paper does it usually take to produce a standard-sized billboard? a.

24 b.

3–6 c.

30 What is the rationale in buying a double or even triple showing in transit advertising?

True or False: A billboard buy of 200 GRP is a guarantee of twice the audience impact of buying 100 GRP.

Answers 1.

2.

3.

4.

5.

False Transit.

B Because passengers often sit in one car and in one seat, more showings allow opportunities for more passengers to take a card or view the ad.

False

Chapter 19. Digital Media •

•

78 percent of Americans are connected to the Internet on average of nine hours a day.

People use the Internet for “directed activities” such as searching for information, social reasons, or for entertainment.

The primary purpose of most digital advertising is to direct people to online sites that are of interest and value to them. Some ads direct people to online storefronts or etail sites.

• •

•

•

•

• •

Many websites track their own statistics, including daily visits, country of origin, time spent on a page, and whether the visitor is new or returning.

The biggest challenge to brand planning in the digital sphere is to keep up with the opportunities and tactics. Some of the most popular tactics include Search Engine Marketing (SEM), or promotion of websites via visibility in search engine results pages, display and banner advertising, online classifieds, rich media ads (which provide an interactive online experience), and mobile advertising and applications.

Most advertising online is placed through advertising content networks, which connect advertisers to websites. There are three types: 1.

Vertical networks: Those that clearly identify which websites are part of the network.

2.

Blind networks: Those that do not provide information on where ads will run.

3.

Targeted networks: Use consumer click stream data to target using search-based, contextual, or behavioral targeting.

Search-based targeting places ads based on what customers are searching for online.

Contextual targeting provides users with ads about a subject that is of particular interest to them, determined based on customer navigation history. Behavioral targeting monitors the behavior of an individual as he or she moves from site to site.

Digital advertising revenue is generated from both impression-based (CPM) and performance-based (CPC) measures. With CPM, an advertising planner estimates the number of impressions that an ad will generate against a target and a cost is assigned to the impressions. With CPC, the advertiser will only pay for the people who click on the advertisement.

The bid method adds complexity to buying advertising online.

Digital media advertising pricing is shifting to engagement pricing, which is based on attention delivered rather than impressions.

Sample Questions 1.

2.

LoveMyBrand, an online retail site, regularly uses a search engine marketing approach in which it has no influence on the results, and search engine results are based on how relevant a search engine believes the site is to a search query. This is an example of a.

Organic results b.

Paid results c.

Local results Which content network provides the most direct way of buying advertising online? a.

Vertical network b.

Blind network c.

Targeted network

3.

4.

5.

True or False: Every email sent to a potential or current customer may be considered email marketing.

What is the difference between the CPC and the CPM method of allotting money for digital advertising?

True or False: Adults use the Internet, on average, more than kids do.

Answers 1.

2.

3.

4.

5.

A C True CPM is allotting money for impressions, CPC is allotting money in a bidding format.

False

Chapter 20. Social Media • •

•

•

• •

•

Social media include most types of Internet-based applications that focus on interactivity and that allow the creation and exchange of content created by both users and brands.

Marketing messages on social media sites are more appropriately dialogues between a brand and a consumer, rather than a one-way top-down message from the brand to the consumer.

Social media advertising is used to build communities of users focused around the brand wherein positive word-of-mouth may develop. A social media advertising campaign must have consistent involvement driven by someone who is participating in the social networking site.

Social Networking Sites (SNS) are a predominant category of social media and include social networking sites, micro-blogging sites, and multimedia sites. Advertisers may also use blogs, review sites, and geo-social networks (which use GPS to engage users via a “check-in” option).

A primary value of SNS is that, at a minimum, they track followers and give some indication of the level of engagement.

Advertiser involvement on SNS may be categorized as initial level of involvement, in which a brand may set up a simple site and populate it with content, the second level, whereby advertisers create targeted advertisements for SNS, including Facebook, Twitter, and YouTube, and the third level, whereby an advertiser utilizes a social ad, which incorporates user interactions that the consumer has agreed to display and to share.

Social ads are similar to viral videos, which spread through Internet channels quickly.

The key challenge to social advertisements is the ability to sustain the community around them.

•

• •

In addition to CPC and CPM pricing, other pricing options on social media include costper-install (advertiser pays per download), cost-per-action (advertiser pays for each specific action taken), and cost-per-engagement (advertiser pays each time engagement takes place).

Geo-social networking, also known as lo-so (location social) operates based on audiences checking in and receiving incentives, such as badges and awards for frequency.

Instead of interrupting a user experience, brands need to find ways to be part of a user experience when they participate on SNS.

Sample Questions 1.

2.

3.

4.

5.

True or False: A traditional top-down advertiser to consumer promotional message is effective for social media advertising.

How is brand advertising different in an SNS than traditional broadcast media?

Vintage Village, an antiques collector and trader, has chosen to establish its social media presence via “promoted tweets” and targeted ads on Facebook. Vintage Village is at the __________ level of involvement a.

Initial b.

Second c.

Third True or False: Viral videos require extensive traditional advertising support.

How do you think advertising might move beyond traditional one-way directed messages to weave itself into a user’s entire Web experience?

Answers 1.

2.

3.

4.

5.

False SNS allows more effective tracking of followers and indication of brand engagement level.

B False Answers may vary, but should reflect the need for advertisers to channel user-generated content, dialogue and other two-way communication forms for a brand to interact with its users.

Chapter 21. In-Store Media • •

About 75 percent of brand choices are made in the store.

In-store advertising benefits from the tendency for consumers to buy on impulse and make decisions at the point of purchase.

•

•

•

There are three types of in-store advertising 1.

Mass in-store messages, which display the same information to all customers, and include shelf-talkers, banners, and floor signs. Ads on shopping carts may also be used.

2.

Personal messages, which provide an interactive experience where the consumer can get information appropriate for a purchase decision, including digital out-ofhome advertising of targeted messages at specific locations and times and interactive kiosks, or stand-alone structures that provide consumers information.

3.

Loyalty programs, which issue a “membership card” to an individual shopper for rewards.

Measurement of in-store media involves an assessment of both exposure to the message and reaction to the message, and includes: — Traffic counters that measure the actual number of people who enter a store — Video recognition systems that count the number of people who walk past a certain place in a store — Ceiling-based cameras that assign a unique numerical ID to each customer and track their movements through the store.

The average supermarket in the United States hosts 6,000 trips per week and the average trip has 1.25 people doing the shopping. Thus, the average exposure of an in-store sign per week is 7,500.

— The average frequency for an in-store campaign can be calculated by multiplying 1.5 times the number of weeks the campaign runs.

Sample Questions 1.

2.

3.

4.

5.

Your local Foodie Mart has an average 4,500 trips per week to the store, and an average 1.5 people doing the shopping. Calculate the average frequency for an in-store campaign that lasts 6 weeks.

True or False: In-store media are relatively less expensive compared to other media.

What is the primary advantage of in-store media?

Let’s say you are an advertising media planner for Hot Shots, a sports equipment retailer.

How would you sell your CEO on the sales potential of an in-store media campaign, rather than a less expensive Internet banner-ad media campaign, even though the in-store media campaign costs more?

True or False: In-store media can be customizable for personal consumer needs.

Answers 1.

2.

9 False

3.

4.

5.

Recency: 75 percent of brand choices are made in the store.

Answers may vary, but should include a reference to the theme that most brand choices are made in the store.

True

Chapter 22. Direct Response •

•

•

•

•

• •

•

• •

Direct response is different from other media in two ways: 1.

Direct response media is an interactive marketing system that links the buyer and seller directly, and 2.

It has an immediate and measurable response, and is measured based on the transaction rather than the reach.

The rise of direct response is tied to the use of database marketing, which allows marketers to build and maintain a vast amount of information on current and prospective customers, and enables them to profile and segment customers. Databases facilitate customer relationship management programs (CRM), which are commonly tied to direct response.

Marketers often segment customers through the RFM (recency, frequency, and monetary) method. RFM is used to identify the best customers and the ones most likely to buy again.

Advertising that asks the consumer to provide feedback directly to the sender is direct response advertising. Examples include infomercials for television, coupons or toll-free numbers in print, directories, “take-ones” and catalogues.

Direct response media has its own measurement system and currency. Rather than CPM, direct response is measured by cost-per-response in which every media vehicle purchased is based on a behavioral response. This may mean reaching fewer consumers overall but reaching more active consumers.

Rather than negotiate CPM, the media buyer will negotiate cost-per-lead or sale.

Direct response advertisers view each media purchase in two ways: 1.

How much did they make for each advertisement, and 2.

The learning gained from each media placement for future optimization.

The media purchase strategy for direct response is to save the dollars rather than purchase media inventory where you will not make a profit, which is contrary to traditional brand strategy. In direct response, you purchase media with weak demand because you are likely to gain a favorable rate and better profit.

Determining the optimum creative message, offer, and size or length are key variables that direct response advertisers continually test.

Three types of creative units in broadcast include short form (30–60 second commercials), long-form (2–5 minute commercials), and paid programming.

Sample Questions 1.

2.

3.

4.

5.

What two elements distinguish direct response from other type of media?

What is the primary basis for success in direct response advertising?

Which one of the following does the direct response media buyer NOT evaluate media on? a.

Cost b.

Response c.

Reach Explain why coupons may be considered a direct response advertisement.

True or False: In direct advertising, the media buyer sacrifices reach for cost efficiency.

Answers 1.

2.

3.

4.

5.

(1) It links the buyer and seller directly, and (2) it has an immediate and measurable response based on the transaction.

Driving down the cost per lead in a sale.

C Because it can link the buyer and seller directly, and it is measurable based on the transaction.

True

Chapter 23. Alternative Media •

•

•

Alternative media are those opportunities that are generally not part of the primary targeted campaign but are used for a special one-time promotion, to reach a specific (and hard-to-reach) audience, to deliver a message through a nontraditional media channel.

Alternative media is often equated with guerilla marketing, which is an unconventional system of promotions that relies on time, energy, and imagination rather than a big marketing budget.

Alternative media types include: — Ambient media, or messages delivered via an object allowing consumers to be exposed to the message while using the object. These objects are common from restaurants and stores that feature messages from the establishment on the package (i.e., a coffee cup sleeve).

— Public space marketing, in which messages are placed on sidewalks using nonpermanent techniques.

— Wait marketing, which uses media channels to reach people while waiting in line.

— Word-of-mouth advertising, which involves distribution of a message from one person to another, and can happen organically or through paid vehicles.

—

•

Street marketing, which delivers messages to a specific audience via a team either performing a service or distributing a product at a venue. In street marketing, consumers are encouraged to spend time engaged in the marketing experience to receive branded messages.

Measuring alternative media vehicles requires the firm to generate the data you receive, itself.

Sample Questions 1.

2.

3.

4.

5.

What type of alternative media would a Flash Mob be classified as? a.

Word of mouth b.

Public space c.

Wait marketing d.

Street marketing Ambient media is most comparable to a.

In-store media, such as videos at a checkout b.

Billboards c.

Specialty outdoor media like taxi tops When an advertiser places a branded message on the bag used for carrying the product out of the store, this is known as a.

Ambient media b.

Wait marketing c.

Public space marketing d.

Word of mouth What is the main difference between alternative media and traditional media?

True or False: Alternative media must often be done in the absence of any strong metrics other than those provided by the medium itself.

Answers 1.

2.

3.

4.

5.

D C A Answers may vary and may include specialty audience, nontraditional media channel, and temporary promotion.

True

Chapter 24. Ethnic Media

• •

Ethnic media refers to the media vehicles that target particular subgroups of the population.

Ethnic media may be found in most of the traditional media vehicles, for example: — Television networks like Univision and Telemundo cater to the Spanish-speaking audience; — Radio stations promote certain religious group or political contributor values; — Newspapers are also aimed at certain ethnic groups; — Magazines like Soap Opera Weekly or The Oprah Magazine cater to specific audiences.

Sample Questions 1.

2.

3.

4.

5.

True or False: Ethnic media are defined as media produced by certain ethnic groups.

For what purpose would a media buyer use ethnic media in a campaign?

True or False: Ethnic media is limited to only media targeted to different ethnic groups.

Why is the Internet a primary growth area for ethnic media?

True or False: There are many more opportunities for ethnic media via radio than television.

Answers 1.

2.

3.

4.

5.

False To target particular subgroups of a population.

False Foreign language and special interest content is more readily available.

True

Chapter 25. Sponsorships •

•

•

A sponsorship is a unique marketing relationship between an advertiser and an event or organization in which the brand provides funds, resources, or services to the event or organization in return for brand association at the event or organization.

Sponsorships are different from other media purchases in several ways: — Sponsorships are a marketing as well as an advertising activity — Sponsorships may contain a media schedule or they may not — Sponsorships are single focused — Sponsorships represent a large time or dollar commitment.

Types of sponsorships include: — Team sponsorships, in which a brand receives exposure at a sports event.

— League sponsorships, in which the league considers the brand its “official” brand.

— — • •

Event sponsorship, or short duration sponsorships based on a single event.

Performer sponsorships in which the brand funds a performance for brand recognition.

Sponsorship costs vary depending on whether they are national, regional, or local, long term or short term, and whether they contain a media schedule or not.

The overall value of a sponsorship is often based on factors other than the direct media cost. A media planner should evaluate a sponsorship based on: 1. the appropriateness of the target audience, 2. the popularity of the event over time, 3. the other sponsors at the event, and 4. each element in the sponsorship package.

Sample Questions 1.

2.

3.

4.

5.

True or False: Sponsorship is often based primarily on the direct media cost.

Which one of the following audiences might be most susceptible to sponsorship advertising? a.

Commuters b.

Attendees to a surf competition in southern California c.

Couch potatoes True or False: One advantage of sponsorship is that it is an inexpensive option for advertising.

How are sponsorships different than other media purchases?

True or False: The sports sponsorship market is almost one-third the size of the advertising market.

Answers 1.

2.

3.

4.

5.

False B False Answers may include: limited options for sponsorship, both advertising and marketing activity, single-focused, and media schedule may not be most important aspect.

True

Chapter 26. Sales Promotion • •

Sales promotion is used to stimulate short demand for a product, and is a direct inducement that offers extra incentives to accelerate the product’s movement.

There are two types of sales promotion:

Trade promotion, also called “push marketing,” whereby the manufacturer seeks to secure the cooperation of the retailer by offering incentives to the retailer to feature its products.

2.

Consumer promotion, also called “pull marketing,” whereby brands persuade consumers to buy or request the brand now. The idea behind a consumer promotion is to incur sales in the short term.

Sales promotion is a catch-all for a variety of marketing communication activities, and includes couponing, sampling, media celebrity tie-ins, and sweepstakes (i.e., games, and contests).

The media role for couponing is to find the most effective means of distributing the coupons.

Sampling is one of the most effective methods for new products, but it can be costly.

The most common objectives are to gain consumer trial, reward brand loyalty, encourage a consumer to trade up, and to stimulate the consumer to buy more of the brand.

The more successful you are with sales promotion, typically the more money you spend.

The counterpoint to success is that you are not selling the product at full price, and if you discount too much, you erode your profit margin.

For sales promotion programs, the media team must estimate the success rate of the promotion, usually as the number of consumers who take advantage of the offer.

The future of sales promotion is driven by the constant need for marketers to drive shortterm sales, and consumer reception to a discount or a deal.

1.

•

• • • •

• •

Sample Questions 1.

2.

3.

4.

5.

In the United States, what percentage of coupons is actually redeemed? a.

1 percent b.

30 percent c.

75 percent True or False: Coupons are dispensed at a grocery store based on the category you purchased but for a brand you didn’t purchase.

What is the difference between push marketing and pull marketing?

Dragon Dental, a toothpaste manufacturer, offers a discount for TooMuchStuff-Mart to sell their product at a cheaper rate. This is an example of a.

Push marketing b.

Pull marketing True or False: The goal of sales promotion is to increase sales in both the short-term and the long term.

Answers

1.

2.

3.

4.

5.

A True Push marketing is activities designed to get the cooperation of the retailer. Pull marketing is activities to get consumers to request the brand.

A False

Chapter 27. Publicity •

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Publicity is usually intended to supplement regular advertising, and is a specialized activity utilizing unpaid mass media outlets as well as other channels to spread favorable news about the company, product, or service, and so on.

Because the media space and time are not purchased, there is little control of how the news will be used.

Publicity is often gained through special events, but they are complicated and scheduling a special event just for publicity may lead to failure and animosity from news personnel.

It is critical that publicity use the same themes and message content as does the advertising to ensure continuity.

Too often, publicity campaigns will operate in a vacuum, separate from advertising. This wastes the synergistic effect that can be gained.

Sample Questions 1.

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What is the role of the publicist in helping a publicity campaign?

What is the main trade-off in choosing publicity over other paid media?

Kettles, an old-fashioned popcorn company, wants to stage a publicity event in which people have a popcorn fight in a large public area. Will this be well received by media personnel? Why or why not?

Why should publicity feature the same message and theme as the rest of the advertising messages?

True or False: Because web distribution is often free, all web advertising is publicity.

Answers 1.

2.

3.

4.

5.

A publicist uses personal contacts to ensure media are used.

Media and message control.

No, it is not newsworthy and may be considered “just publicity.”

So that there is continuity from the advertising to the publicity and back again.

False

Chapter 28. Preparing an Advertising Media Plan •

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Preparing an advertising media plan requires thinking through the logic of the plan, sensible progression from one stage to another, fully explaining and justifying every recommendation, and meeting stated objectives.

An advertising media plan should feature an executive summary, a competitive analysis of your major competitors, your brand’s market situation, objectives and goals, media strategies and tactics, media promotions and logistics, continuity plans, calendar, budget, and integrated marketing.

Your objectives should feature marketing objectives, advertising objectives that support the marketing objectives, and media objectives that are consistent with the advertising objectives.

Your media strategies should feature target markets, target groups, and target audiences, as well as the media types.

Remember that advertising media are ways of achieving ends and are not objectives in and of themselves.

Sample Questions 1.

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3.

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5.

What is the difference between a target market and a target audience?

True or False: Media objectives are set before advertising objectives.

What is the difference between a media strategy and a media tactic?

Bob’s Buns has set goals for the amount of sales they will earn in the first quarter of the year. Bob’s Buns has set a.

Marketing objectives b.

Advertising objectives c.

Media objectives What is the difference between a media unit and a media vehicle?

Answers 1.

2.

3.

4.

5.

A target market is limited to a geographic area. A target audience is the media audience within a target market.

False Media strategies are the plan; media tactics are the implementation of the plan.

A A media vehicle is a media type, a media unit is the length, size, or usage dimensions of the media type.

Chapter 29. Evaluating an Advertising Media Plan

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The format should take you through the entire process from the background information on which the plan was based to the current situation, and on through the goals and objectives, strategies and plans, methods and support activities.

The objectives section should only include what is to be accomplished.

Three targets should be considered: target markets (geographic areas for advertising), target groups (types of people the advertising will reach), and target audiences (the people who will be reached through advertising). Targets should be described in both prose and numerical components.

The strategies are the plans that will be used to achieve campaign objectives. The reasons for using each medium must be spelled out in detail.

In the budget section, allocations to the media and markets should be explained and justified.

Toward the end of the media plan, there should be a contingency plan, with details on what will be done if the proposed plan is not working as anticipated.

There should also be a schedule showing what advertising will be running during each phase of the campaign (often in the form of a flowchart).

Throughout the advertising media plan, the following standards should be considered: — Data sources should be provided.

— Tables and figures should relate to the plans and objectives.

— Terms should be clearly defined.

— The plan should not be too general or oversimplified.

— The plan should be started with ample time to complete it.

— The written plan should use good grammar and correct spelling and punctuation.

— Justification is key to the successful media plan.

Sample Questions 1.

2.

3.

4.

5.

Leapin’ Lizards, a new holiday toy, would like to launch a campaign for the holidays, produce a media flowchart for its release.

What is the key to a successful advertising media plan?

Spicy Squirrel, a local restaurant, would like to reach potential customers who are between the ages of 24–40, married, and of an upper-class income. This is their a.

Target market b.

Target group c.

Target audience True or False: Information about your competitor should not be included in the advertising media plan.

Where in the media plan are the types of media to be used discussed? a.

Objectives

b. c.

Targets Strategies

Answers 1.

2.

3.

4.

5.

Answers will vary but should include a combination of media, weights for each medium, time span, and overlapping uses of various media.

Justification of the plan.

B False C

Chapter 30. Impact of Media Ownership on Advertising Execution •

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Large conglomerates allow the media planner to buy all needed services (i.e., public relations, advertising, digital media, research, and production) from the same corporation.

— However, this might also lead to cutting corners where work overlaps and problems of due diligence occur.

Large media conglomerates also incur potential problems, as they render news perspectives narrow and often have only one viewpoint on issues. It also raises political power issues.

Small advertising agencies and local broadcasters may have trouble competing with large conglomerates.

Sample Questions 1.

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5.

What are the benefits of a large advertising conglomerate for the media planner?

Why might large media conglomerates present a problem to viewing audiences?

What are the potential issues of a large advertising conglomerate that owns or controls the advertising agencies it uses?

What is a media conglomerate?

True or False: Economies of scale are easier to attain using an advertising conglomerate.

Answers 1.

2.

3.

4.

5.

The media planner can buy all the needed services from one place.

They lead to narrow news perspectives and credibility and power issues.

Cutting corners where work overlaps and problems of due diligence.

Multiple media-related businesses controlled by the same media holding company.

True

Chapter 31. Developing Test Plans • •

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Test plans are a relatively safe and low-cost way to learn what works and what does not for your brand.

There are two reasons to test the market: 1. to gain knowledge about a new product or line extension in a limited area before national roll-out, and 2. to test different marketing-mix strategies for an existing brand.

There are no hard-and-fast rules about proper testing but standards include: 1.

Using at least two test markets in addition to a control market, 2.

Selecting markets geographically dispersed and representative of the United States, 3.

Selecting markets that cover 3 percent or more of the country, 4.

Running testing for at least six months; and 5.

Testing media-weight levels by increasing the weight level by a minimum of 50 percent.

One of the most important elements in test marketing is selecting the right markets in which to test. The market should be representative of the population base of your brand and may range from .2 percent to no more than 2 percent of the United States.

The media you choose should be representative of the normal market (i.e., 4 television stations, no more than 10 percent cable penetration, a good range of radio stations, and so on.)

You should try to avoid spill-in, which is when television signals from one market may be seen in another market. You should also consider the issues airing your commercials in one market and having them seen in another market where consumers can’t get your product.

You should choose a test market in which you have a solid distribution and that have average sales characteristics. BDI and CDI will help you establish the criteria for a test market.

When you are developing a test plan, you should start with how your plan will ultimately be executed.

There are two ways to translate national media plans into local test plans: 1.

Little USA or Little America, which assigns each test market the average national rating-point level. This technique assumes that the local market will behave similarly to the whole United States.

2.

As It Falls, in which each test market’s media delivery is based on what that delivery would be if the plan were to be implemented nationally. The purpose of As It Falls is to replicate as precisely as possible the actual national plan that would be implemented.

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Little USA is best used when the advertiser is testing a new brand and has no benchmark; As It Falls is preferable for a brand with good historical sales data because it is closer to what will actually happen once the plan is implemented nationally.

When translating national media to the local level, national media have their own nuances.

— Network television purchases are usually made within an actual program.

— Cable television is difficult to translate locally because local cable operators sell advertising only on selected channels.

— Magazine placement may not be able to offer a large enough circulation for a test market edition and so you may need to find publications that are similar in nature to what you plan on scheduling.

— Magazines usually only allow full-page advertisements to be in a test market edition.

Small tactical tests may be used to isolate the variable to be tested and have test and control markets.

The point of testing is to continually add to the brand’s knowledge base, and test marketing is one consistent method of doing just that.

Sample Questions 1.

2.

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5.

The toy company manufacturer for the new holiday toy, Leapin’ Lizards, would like to roll out its new product using market testing. As a new product, which test method should it use? a.

Little USA b.

As It Falls A Japanese clothes manufacturer would like to test its potential in the U.S. market.

Which test method should it use? a.

Little USA b.

As It Falls ReadALot, a bookstore chain, would like to test its new holiday half-price campaign, in which consumers can buy a book and get a second book half-price. Which market test method would it use? a.

Little USA b.

As It Falls What is the inherent problem of spill-in when devising a test market plan?

What is the purpose of using a test market and a control market in your testing?

Answers 1.

A

2.

3.

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5.

B B Your product may not be available in the spill-in markets.

To isolate the variable to be tested.

Chapter 32. Agency Compensation Structures • • •

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Even if the media is not the direct measure of compensation, it usually forms the basis for other forms of compensation.

The advertising budget is a barometer of the agency’s compensation, and the media budget is typically the lion’s share of the advertising budget.

There are three fundamental methods for developing agency compensation: 1.

Commission-based: This philosophy is based on the success of the advertising— the greater the success, the more the client would spend and the more the agency would make. The potential conflict of interest is that it is in the agency’s best interest to maintain and grow advertising budgets.

2.

Fee-based: This is the most common method, and is based on the agency’s estimate of how many people and how much time those people will spend working on the client’s account. The agency charges the client based on the time it takes to do the work. Fee-based models require that media be placed at net or without commission. The agency is usually rewarded for efficiency. The downside is there is no reward for the agency doing a great job.

3.

Value-based: This is based on the value delivered, in which the agency basically says, “Pay us for what we generate and not the activity that we do.” Value-based compensation puts the agency and client on common ground, but few clients embrace it because it is daunting to have to determine the actual impact of advertising on the business.

While it is incumbent upon the media strategist to develop the right plan for the client, it is equally as important to understand the economic impact of that plan on the agency.

This requires considering the following aspects of media execution: — National media are more time efficient to purchase than local media; — Online display and search engine marketing are both highly measurable, but you need agreement with the client on the parameters of the analytics prior to a purchase; — Promotional media require a coordination fee be built into the program; — The media strategist must keep one eye on what is right and one eye on what is profitable.

The agency makes money via four main components: 1.

Revenue from the client, via fees, commissions, and interest income.

2.

Salaries and benefits, including payroll, worker hours and corresponding benefits.

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Agency overhead, including operational expenses of the agency.

Profit, including gross or pre-tax profit (or the money made after subtracting the costs from the revenue but before subtracting taxes), and net profit, or the profit reported after taxes.

Most agencies target 50 percent salary-to-revenue percentage. Above 60 percent means the agency will not make much money, below 45 percent means the agency is not staffed properly.

Media is a key aspect of the costs that an agency controls.

Sample Questions 1.

2.

3.

4.

5.

XYZ Brand has agreed to a compensation structure with its agency in which the agency puts a number on the program or idea it proposes. This compensation method is: a.

Value-based b.

Commission-based c.

Fee-based Which of the following revenue components does the agency manage? a.

Revenue from the client b.

Overhead c.

Personnel salaries d.

A and B e.

B and C True or False: Retained earnings are built from net profit.

Which type of profit does the media team impact? a.

Net profit b.

Gross profit Which one of the following forms of compensation operates based on the philosophy: “Pay us for the ideas we generate, not what we do”? a.

Commission-based b.

Fee-based c.

Value-based

Answers 1.

2.

3.

4.

5.

A E True B C