ADVANCED MEDIA PLANNING

Transcription

1 ADVANCED MEDIA PLANNING

2 ADVANCED MEDIA PLANNING by JOHN R. ROSSITER Australian Graduate School of Management and PETER J. DANAHER University of Auckland, New Zealand " ~ SPRINGER SCIENCE+BUSINESS MEDIA, LLC

3 Authors John R RossÎter Peter J. Danaher ISBN ISBN (ebook) DOI / Library ofcongress Control Number: Springer Science+Business Media New York Originally published by Kluwer Academic Publishers in 1998 Softcover reprint of the hardcover 1 st edition 1998 All rights reserved. This work may not be translated or copied in whole or in part without the written permission ofthe publisher (Springer Science+Business Media, LLC, 233 Spring Street, New York, NY 10013, USA), except for brief excerpts in connection with reviews or scholarly analysis. Use in connection with any form of information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed is forbidden. The use in this publication of trade narnes, trademarks, service marks and similar terms, even if they are not identified as such, is not to be taken as an expression of opinion as to whether or not they are subject to proprietary rights. Printed on acid free paper springer. corn

4 To my Mother; Olive, with love. J.R.R. To my wife, Felicity, and children, James and Cecily. P.J.D.

5 TABLE OF CONTENTS PREFACE ACKNOWLEDGEMENTS xi xiii CHAPTER 1. MEDIA STRATEGY: AN INTRODUCTION 1.1 Basic Parameters of the Media PLan Reach versus Frequency I Geographic Reach versus Frequency Reach versus Number of Advertising Cycles Frequency versus Number of Advertising Cycles Advanced Media Plan Parameters Reach --+ Individual Continuity --+ Timing Frequency --+ Effective Frequency --+ Dominance Effective Reach Active Effective Reach Advertising Cycle 10 CHAPTER 2. REACH PATTERNS Reach Patterns for New Products Blitz Pattern Wedge Pattern Reverse-wedge/PI Pattern Short Fad Pattern Reach Patterns for Established Products Regular Purchase Cycle Pattern Awareness Pattern Shifting Reach Pattern Seasonal Priming Pattern Combining Reach Patterns Summary Perspective 23 CHAPTER 3. EFFECTIVE FREQUENCY Input and Output Concepts Insertions and Exposures Disposition to Purchase Minimum and Maximum Effective Frequency Minimum Effective Frequency (MEFfc) 26

6 viii CONTENTS Maximum Effective Frequency (MaxEFfc) Average Frequency is Uninformative Estimating Minimum Effective Frequency MEFfc Estimation Formula Ad Unit Adjustments to MEFfc MEFfc and MaxEFIc for Direct-response Ads and Promotions CHAPTER 4. CARRYOVER AND OTHER FREQUENCY DECISIONS Effective Reach and Active Effective Reach Effective Reach During the Advertising Cycle Active Effective Reach Changes to MEF/C During the Campaign MEFfc and "Outer" Target Audience Change "Maintenance" and "Inner" Target Audiences Retailer Support Short-term Tactical Adjustments in Frequency Very Short-term Scheduling 46 CHAPTER 5. MEDIA SELECTION Pre-classification of Media Types Mass Media Point-of-decision (P-O-D) Media Direct-response (DR) Media Mass Media Selection Visual Capacity Frequency Capacity Message Processing Capacity The Campaign's Primary and Secondary Media Media Selection for Small-audience Advertisers Business-to-business Advertisers Local Retail Advertisers Summary of Media Selection CHAPTER 6. MEDIA DATA, DUPLICATIONS, AND STRATEGIC RULES Media Data Television Print Radio Single-source Data Pseudo Single-source Data Duplication Within and Between Vehicles Typical Vehicle Duplications Exact Vehicle Duplications Approximate Vehicle Duplications Cross-media Duplications 70

7 CONTENTS ix 6.3 Strategic Rules Reach Rule Frequency Rule Reach and Frequency Rule The Rules for Reach Patterns CHAPTER 7. IMPLEMENTING AND OPTIMIZING THE MEDIA SCHEDULE Media Models Media Mania s Models An Illustration of Reach and Frequency Strategies Eligible Vehicle Selection Implementing a Reach Strategy Implementing a Frequency Strategy Comparing the Two Strategies Optimizing Schedules Media Budget Setting 84 APPENDIX: MANUAL FOR MEDIA MANIA 87 REFERENCES 101 INDEX 107

8 PREFACE This book is a "how to and why" presentation of advanced media planning. It is intended for marketing managers who are responsible for advertising and for professional media planners in advertising agencies and media-buying specialist companies. Approximately 90 percent of advertising dollars are spent in media and this is a good reason for marketing managers to acquire a sound understanding of media planning. Media planners, the professionals, should need no urging to increase their knowledge in today's complex media world. And although this book provides an advanced approach to media planning, the basics are covered as well, making the book suitable for trainees. Much of the strategic thinking in this book comes from the first author's comprehensive advertising text (Rossiter and Percy 1997), which is a useful companion volume, and readers of that book will recognize some of the material. The opportunity to work with Peter Danaher, a specialist media modeler, provided the impetus for the present book. It extends the strategic ideas and offers far more detailed coverage of media plan implementation. Peter also contributed the media planning computer software, Media Mania, supplied with this book. Media planning consists of (1) formulating a media strategy to deliver the creative so as to best meet the brand's advertising objectives, and then (2) implementing the strategy in an accurate and cost-effective manner. Why "advanced" media planning? Media planning is still too conventional (Priemer 1986,1987, 1989, 1990) and advancement is needed (Rossiter and Percy 1987, 1997) along the following lines. (1) Media strategy, at a basic level, comprises the joint decisions of who or whom to reach (loosely called "reach") and how often to reach them in terms of number of exposures (loosely called "frequency"). While reach and frequency are not incorrect, they are certainly too simplistic for modern media planning. This book introduces the advanced concept of reach patterns in making the reach decision, and develops the advanced concept of effective frequency in making the frequency decision. Reach patterns are an entirely new concept. Effective frequency, while not new, needs proper definition and an operational formula for its calculation, both of which are provided here. Other new concepts are also introduced and shown to be necessary for choosing an appropriate media strategy. (2) Media plan implementation, the other half of media planning, has become somewhat of a mathematical science. Nevertheless, if managers have put thought and effort into developing the media strategy, then they should want to be sure that it is accurately implemented. This requires the marketing manager to gain a handson understanding of media selection and of how media implementation models work. Most media planners use proprietary computer programs for media plan implementation which are probably not as accurate as more recent models. This book addresses

9 xii PREFACE implementation firstly from a qualitative "strategic rules" perspective, showing broadly how to construct the plan to achieve the media strategy. Implementation of the media plan is then considered quantitatively, with the aid of new media models developed by the second author. This book therefore aims to promote a better-indeed advanced-understanding of media strategy and implementation for marketing managers and media planners. The book consists of seven chapters, a computer software disk for the media models, and a user-manual appendix. Effectively, the presentation is in two parts corresponding with the two overall stages of media planning: media strategy (Chapters 1 to 4) and media plan implementation (Chapters 5 to 7 and Appendix). In the first chapter, new strategic definitions are presented which can replace many traditional media concepts, and the fundamental trade-offs in media planning are reviewed. The second explains reach patterns. The third defines effective frequency and then provides a formula for the estimation of minimum effective frequency for particular advertising situations. The fourth looks at effective reach and carryover, as well as tactical changes in frequency requirements. The fifth covers media selection, which is the choice between media types, and also the use of more than one medium when multiple media are thought to be the most effective choice for a campaign. The sixth discusses media data for media vehicles, and specifies strategic rules for achieving the media strategy via vehicle selection. In the seventh chapter, computer-model implementation of the plan is explained. This chapter is followed by the user-manual appendix for the book's media planning computer disk. Thanks are due to Julie Kaczynski, Kluwer's business acquisitions editor, Dordrecht, who was the authors' encouraging and patient advocate, to Jo Groom, Kirsty Davies, Rebecca Butcher, Mary 0' Sullivan, and Jocelyn Sorensen for their superb work on the book's manuscript and production, and to Michael Tantrum for computer programming.

10 Xlll ACKNOWLEDGEMENTS The authors and publisher wish to acknowledge the co-operation of McGraw-Hill publishers (The McGraw-Hill Companies, Inc.) in granting permission to draw material from the book by John R. Rossiter and Larry Percy, Advertising Communications & Promotion Management, 2nd edition, New York: McGraw-Hill, The authors also wish to acknowledge the assistance of a research grant from the American Academy of Advertising to the first author in which enabled this work to begin. Here is the publication from it.