DEVELOP A MEDIA PLAN FACILITATOR MANUAL WITH SIMULATED ONLINE BUSINESS ASSESSMENT BSBADV507B

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1 DEVELOP A MEDIA PLAN FACILITATOR MANUAL WITH SIMULATED ONLINE BUSINESS ASSESSMENT BSBADV507B

2 Precision Group (Australia) Pty Ltd 9 Koppen Tce, Cairns, QLD, info@precisiongroup.com.au Website: BSBADV507B Develop a Media Plan ISBN: Copyright Notice No part of this book may be reproduced in any form or by any means, electronic or mechanical, including photocopying or recording, or by an information retrieval system without written permission from Precision Group (Australia) Pty Ltd. Legal action may be taken against any person who infringes their copyright through unauthorised copying. These terms are subject to the conditions prescribed under the Australian Copyright Act Copying for Educational Purposes The Australian Copyright Act 1968 allows 10% of this book to be copied by any educational institute for educational purposes, provided that the institute (or the body that administers it) has given a remuneration notice to the Copyright Agency Limited (CAL) under the Act. For more information, info@copyright. com.au or visit for other contact details. Disclaimer Precision Group has made a great effort to ensure that this material is free from error or omissions. However, you should conduct your own enquiries and seek professional advice before relying on any fact, statement or matter contained in this book. Precision Group (Australia) Pty Ltd is not responsible for any injury, loss or damage as a result of material included or omitted from this material. Information in this module is current at the time of publication.

3 Table of Contents 2 Legend 3 Qualification Pathways 4 Qualification Rules 5 Introduction 7 BSBADV507B/01 Define Media Requirements Key Points Identify the target audience characteristics from the advertising brief and prepare a detailed consumer profile which uses the same terms as those used to describe media audiences Analyse product market factors to determine the reach and frequency requirements of advertising media selected Analyse the creative requirements of the advertising message and determine the media implications Identify media merchandising requirements from the advertising brief Confirm the media budget and identify legal and voluntary constraints 17 True or False Quiz 19 BSBADV507B /02 Select Media Vehicles Key Points Weigh up the relative merits of identified media vehicle alternatives taking past media performance into account Evaluate and test new or alternative media vehicles with other advertisers and against proven vehicles Select media vehicles that target the required audience, meet media requirements and fulfil merchandising requirements within budget Select media vehicles that meet the creative, reach and frequency requirements of the advertising message to be achieved within the budget Ensure selected media vehicles meet legal and ethical requirements 25 True or False Quiz 27 BSBADV507B/03 Determine the Media Schedule Key Points Ensure the duration and timing of the media schedule meet the requirements of the advertising brief Determine the distribution of messages over the duration of the schedule to meet the requirements of the advertising brief Create a media schedule to the satisfaction of the advertiser Develop alternative media schedules for the advertiser within the budget Determine testing schedule for the media plan and continually modify media plan in accordance with results obtained 33 True or False Quiz 1

4 35 BSBADV507B/04 Produce a Media Plan Create a media plan which defines the media requirements of the advertising brief and provides evidence to support each requirement Specify the recommended media and vehicle/s, and the rationale for their selection in the media plan Ensure the media plan contains a budget allocation per medium per advertising period Identify the anticipated impact of the advertising and measures to assess its effectiveness in the media plan 43 True or False Quiz 44 Summary 45 Bibliography 47 Assessment Pack Use considered risk taking in your grey area...and others will follow you! Legend This symbol indicates the beginning of new content. The bold title matches the content of the competency and they will help you to find the section to reference for your assessment activities. Activity: Whenever you see this symbol, there is an activity to carry out which has been designed to help reinforce the learning about the topic and take some action. This symbol is used at the end of a section to indicate the summary key points of the previous section. This symbol is used to indicate an answer to the Candidate s questions or notes to assist the Facilitator. 2

5 Qualification Pathways There are always two choices. Two paths to take. One is easy. And its only reward is that it s easy. Source Unknown This unit of competency is provided to meet the requirements of BSB07 Business Services Training Package although it can be used in a range of different qualifications. The BSB07 Business Services Training Package does not state how a qualification is to be achieved. Rather, Registered Training Organisations are required to use the qualification rules to ensure the needs of the learner and business customer are met. This is to be achieved through the development of effective learning programs delivered in an order that meets the stated needs of nominated Candidates and business customers. 3

6 Qualification Rules You re either part of the solution or part of the problem. Eldridge Cleaver Qualification requirements include core and elective units. The unit mix is determined by specific unit of competency requirements which are stated in the qualification description. Registered Training Organisations then work with learners and business customers to select elective units relevant to the work outcome, local industry requirements and the qualification level. All vocational education qualifications must lead to a work outcome. BSB07 Business Services Training Package qualifications allow for Registered Training Organisations (RTOs) to vary programs to meet: Specific needs of a business or group of businesses. Skill needs of a locality or a particular industry application of business skills. Maximum employability of a group of students or an individual. When packaging a qualification elective units are to be selected from an equivalent level qualification unless otherwise stated. 4

7 Introduction Whether as an individual, or as part of a group, real progress depends on entering whole-heartedly into the process and being motivated to make you a more deeply satisfied human being. Source Unknown This unit of competency is about being able to interpret an advertising brief to develop a media plan within a given budget. It will help you with the skills you need to demonstrate competency for the unit BSBADV507B Develop a Media Plan. This is one of the units that make up the Certificates in Business. This manual is broken up into four sections. They are: 1. Define Media Requirements 2. Select Media Vehicles 3. Determine the Media Schedule 4. Produce a Media Plan At the conclusion of this training you will be asked to complete an assessment pack for this unit of competency. The information contained in this resource will assist you to complete this task. On competent completion of the assessment, you will have demonstrated your ability to develop a media plan in your organisation. 5

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9 PART 1: Define Media Requirements Key Points Section 1 When defining the media requirements of an advertising campaign, you need to look at: Indentifying the target audience characteristics from the advertising brief, and then preparing a detailed consumer profile based on a media audience. Analysing the market factors to determine reach and frequency requirements. Analysing the creative requirements of the message. Identifying media merchandising requirements. Confirming the budget as well as any regulatory implications. 7

10 Part 1: Define Media Requirements Media Planning In this manual, we will be examining the processes associated with developing a mass media plan for advertising. This means we will be considering television, radio, newspapers and magazines for the most part. Other forms of media are often not considered to be mass market media although Internet is getting closer to being considered this way. As a media, the internet has only recently come into its own perhaps the last 10 years have shown considerable levels of growth in the market as an advertising media. The internet is unique in that it offers mass market potential for both advertising and for actually making transactions. Your consumer can simply click on a link and actually make a purchase, which is unique in advertising. The internet also allows for a significant amount of information to be offered to the end consumer instantly, another unique aspect of the internet as a medium. The first thing that needs to be done when writing a media plan is to examine the marketing situation facing an organisation. This involves: Examining the market and the position of the organisation in relation to the competition Determine what information the consumers need to know to make a purchasing decision Determine how other brands are positioning themselves in the marketplace. The next stage is to develop a set of marketing objectives (or examine objectives that have been provided to you). The objectives will drive the advertising message and allow the creative individuals to develop something that works for your organisation. Some examples include: Increase brand awareness Changing perceptions of a brand Getting consumers to trial a specific brand. After the advertising objectives are identified the media objectives are decided. This involves taking the following decisions: Media Selection Calculating Reach Frequency of Exposure Cost Efficiency. Analysing the Market The most important job of the media planner is deciding which media vehicles will best reach the prime prospects for a given product. The entire media planning function must focus on a clear market profile and remember that it is prospects, not readers or listeners, who are of primary importance to the advertiser. 8

11 Part 1: Define Media Requirements The media planner is bombarded with a wide range of media from which to choose in this modern media environment, so making a decision among the media can be quite difficult. One very common way of achieving this goal is to look at the media from the point of view of the exposure it gives your advertising to your target market. The Weight CPM (cost per thousand) is the most common method used to calculate this important measure. The CPM is a means of comparing media costs among vehicles with different circulations. The formula is stated as: CPM = (ad cost * 1000) / circulation Vegetables Australia is a national industry magazine. It has a circulation of 6,532 and a full page rate of $2,060. This means the CPM is: CPM = (2,060 * 1000) / 6532 CPM = $315 This is very different to a mass market magazine which may have a CPM of as low as $10. Let s now assume that you want to target only potato farmers and assume that 45% of readers grow potatoes. This means that the number of readers who grow potatoes is The CPM to reach these readers is: CPM = (2060 * 1000) / 2939 CPM = $701 So, when you weight the CPM by a specific demographic group, you will notice that you are concentrating on ONLY the audience that you wish to target. This means that you have a solid means of comparing two advertising opportunities based on the weighted CPM for your specific target market. To return to our Vegetables Australia example, we realise that all potato farmers are not alike. They differ in terms of education, income, farm size, other crops grown, geographic location and lifestyle. Obviously all of these must be considered on a number of bases. Let s now consider another important factor when evaluating advertising opportunities the issue of uniform delivery. When we develop a target market, we often make it quite broad and simply assume that everyone in that market is identical. If you are developing a campaign for a specific model of car for example you might aim it at females aged This is an extremely broad target market and a 44 year old mother is very different than a 19 year old university student! This means that you need to take a different approach. One such approach has you defining the market on a much more specific basis for example let s make our target market for the car females aged with incomes over $55,000 a year who are not yet married. The difficulty with doing this is that you may find it difficult and too expensive to find a media vehicle that can reach such a narrowly defined market especially when you work out the potential weighted CPM for such an opportunity. 9

12 Part 1: Define Media Requirements The second approach is much simpler realise that this uniform delivery is never going to happen, so plan for it in advance. When you are dealing with target marketing, it is important to remember that your target market is really a number of different individuals, rather than a completely homogenous group. Some of those people will be valuable to your brand, others will not be. You need to recognise that in order to deliver advertising that targets a broader range of people in terms of media delivery that no media vehicle is ever perfect. Communications Requirements and Creative Elements The next consideration that you need to make is the communication objectives of a specific advertising campaign and how these may impact on the schedule and plan that you produce for that campaign. Media planners need to look out from the numbers and realise that the ad must actually communicate a message to the market. It is not just about reaching the right person - it is also about providing the right delivery vehicle for that specific message. This requires coordination between the creative individuals and media planning functions, so that one can complement the other in a way to build a coherent and effective campaign. You are looking not just to expose people to your advertising; you are looking at Effective Exposure. Effective Exposure differs from exposure in that it recognises that there is often a limit to the number of times someone may be exposed to an advertisement before it no longer becomes effective, so the effective exposure works by trying to find the right balance in the campaign. In order to do this you might consider whether your target market is likely to: Think that an advertisement is entertaining Think that an advertisement can be helpful Consider the number of advertisements an individual is likely to read Consider the depth to which the reader will read an advertsiement Consider whether the viewer will turn the channel over during the ad break. Thinking this problem through, and making sure that we look at the quality of the exposures that our advertisement is receiving, the key question then is: Does the better exposure that we are providing actually make our market more likely to do what we are aiming for? In essence, will those target market individuals, who are more likely to actually view or read the advertising that we are providing, lead to a better chance of making a sale or not? 1. Look at the actual vehicle for delivery who are we going to? For example a newspaper goes to subscribers and to casual buyers. 2. Determine the number of readers who may receive the advertisement by being passed along or look at multiple listeners for radio advertising. 10

13 Part 1: Define Media Requirements The business that considers itself immune to the necessity for advertising sooner or later finds itself immune to business. Derby Brown 3. Then measure the number of people from this total market who actually get to see the ad. 4. And finally, eliminate those who are not prospects. Efficiency Versus Effectiveness Now that we have gone over the basics of target marketing and calculating effective exposure, we can move on to look at some of the major advertising tactics and how these are related. We will consider three major factors: We can characterise the difference between reach and effective reach as follows: Reach Frequency Continuity. 11

14 Part 1: Define Media Requirements Reach refers to the number of people who see your message. Frequency is the number of times that the message is delivered to the target market over a given period of time. Continuity is the length of time your media schedule is set to run over. Generally speaking advertising media planners cannot emphasise all of these factors at once, and so must look at ways of altering the spread of their advertising according to the budget that they have been provided. This can be quite a balancing act, trying to get the proportions correct, and the media planner must also consider: The efficiency of a media schedule that is the cost The effectiveness of the media schedule the media plan that reaches the highest number of the target market. Below, we have shown a number of possible media plans. Plan 1 - Budget $1,000,000 R F C Product - Chewing Gum Strategy - maximise reach for the duration of a year long campaign. Sacrifice frequency to expose highest possible level of prospects. Plan 2 - Budget $1,000,000 R F C Product - End-of-Year Automobile Sale Strategy - short-term blitz campaign to reach a relatively small number of prime prospects as many times as possible 12

15 Part 1: Define Media Requirements Plan 3 - Budget $1,000,000 R F C Product - Top-of-the-Line jewellery collection Strategy - continuing campaign to reach selected prospects many times. These three strategies are quite different ways of allocating an identical budget and each manages to achieve something quite different. For the most part, media planners must only consider reach and frequency as the continuity is generally affected by the budget set and this cannot be easily changed. So, if you need to increase frequency you may have to reduce the continuity so the budget is not blown (as an example). When building a media schedule, it is generally most useful to start with the frequency. You will start by thinking carefully about your target market and use this to attempt to find a way to determine the minimum number of exposures that you feel will be needed in order to make the desired impact on your target market. Let s say that our $1,000,000 budget can potentially purchase 2,000,000 exposures. The exposures could be brought in a number of ways, so long as the total number of exposures is 2,000,000. So you might: Buy 5 exposures each reaching 400,000 prospects Buy 1 exposure that might reach all 2,000,000 prospects Buy 20 exposures each of which will reach 100,000 prospects in your market. Thinking these options through, you may notice that if we begin to purchase higher numbers of exposures, we may risk not getting all of our prospects to see the message rather we may get 100,000 prospects seeing it multiple times. This is why effectiveness is becoming a much more important part of media planning than simply getting the exposures. Exposure is good, effective exposure is better. In order to assist with this goal, there are two more measures which are often used by media planners: Effective Reach Effective Exposure. 13

16 Part 1: Define Media Requirements A simple way of thinking about effective reach is to determine the number of people in an audience who are able to actually recall the message being delivered after it has been delivered to the end user. There are a few types of reach that you may like to think about: Reach can be defined as the percentage of your audience who have been exposed to your advertising at least once. Reach can be thought of as the percentage of your audience who are aware of your message. The basic difference between reach and effective reach is as follows: Reach = effective reach + empty reach Where: Reach = number of people who see your message at least once (remember this may mean they ONLY see the message once). Effective reach = those in the audience who have been exposed to your message enough times (even if only once) to allow them to be able to recall your message. Empty reach = those people in the audience who have seen your message but have no recall of the message at all. Effective frequency is very similar to effective reach in that it allows you to eliminate the problem of empty message delivery. Effective frequency works to try and determine the number of times that an individual must be exposed to a given message before they become aware of the message and are able to recall the message being given. This is a critical figure to the media planner. By determining the minimum number of times that someone must be exposed to a given message before they are able to recall it, you are able to better define the type of schedule that is required to provide the advertiser with the results that they desire (after all message recall is a critical factor). It can also serve to reduce budgetary constraints. If we understand that after 5 exposures someone has the desired level of recall, anything above this level is just a waste of the advertiser s money. This would be relatively each to accomplish if we were only dealing with one media, but very few advertising campaigns only utilise one media. This means we must look at the issue of media overlap: Target Audience Females 18+ Reach % Media A 35 Media B 20 Media C 11 Media D 17 Duplicated Total Reach 83 14

17 Part 1: Define Media Requirements The man who stops advertising to save money is like the man who stops the clock to save time. Source Unknown If we totalled the reach figures for the various media we will use you will see that you get 83% of the target audience of females aged 18+. But this is unlikely to be particularly valid since you will have some people who see the message in more than one place. A lack of any such duplication is very rare, so you may find that a more typical reach percentage is likely to be something along the lines of the table below. A lack of duplication would be highly unlikely. A more typical outcome of this schedule would be: Target Audience Females 18+ Reach % Media A 21 Media B 17 Media C 9 Media D 3 Unduplicated Total Reach 50 The media is an overwhelming large proportion of any good advertising campaign. Therefore, as a media planner, it is crucial that you have a handle on controlling this money. Generally speaking, the costs of media advertising has been growing faster than the rate of increase in a given audience, so using your budget in the most effective manner has become increasingly important. The Budget In any advertising campaign, the media schedule takes up the largest proportion of the actual budget. So, the media planner is responsible for controlling and effectively allocating the money in a way that can allow the organisation to meet the needs of the client. Getting effective exposure is the key to effective advertising. 15

18 Part 1: Define Media Requirements Activity One Successful advertising usually begins with a narrow identification of the target market. Explain, in relation to how this affects advertising media decisions. Facilitator s Notes for Activity One Discuss with the Candidates how identifying the target market accurately allows a media planner to decide the right media vehicles and tactics to take for a given product. Without this information, it is difficult for a planner to know where to advertise. Narrowly defined target markets allow for specific tactics to be undertaken. 16

19 Part 1: Define Media Requirements Section 1 - True or False Quiz True False National television advertising is a niche media. National television is a broad medium, not a niche one. Only large advertisers can emphasise reach, frequency and continuity. Unduplicated total reach is the most important measure. Risks Reach should = effective be continually reach + empty monitored. reach. Advertising objectives allow everyone involved in the process to ensure they are on the same page. CPM stands for cost per thousand. The principle of effective reach is related to the concept of effective frequency. Uniform delivery becomes a problem when you are dealing with narrowly defined target markets. The internet is now a major player for advertising dollars. Exposure to advertising is enough to ensure communication objectives are reached. Exposure is good, effective exposure is better. 17

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