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Media, Advertising and
         Consumers
         LECTURE 4 - Media Planning




Sunday, 27 December 2009
How Audiences Choose Media




Sunday, 27 December 2009
Audience Reactions to Media
         (                )



Sunday, 27 December 2009
Audience Reactions to Media
              Audience pays attention only to their interested
              information at the medium.
              Sometimes they may waste time in some less interested
              content for some purposes (       ). For example, they
              may watch less interested TV program while waiting for
              their favorite ones to come, or they leaf through a
              magazine while waiting for someone at a hair salon.
              The degree of attention to an advertisement is worth
              studying.


Sunday, 27 December 2009
Strong Feelings (                                       )

              the media images such as authoritative (          ) and
              provocative (      ), as found in a central government
              radio channel, or warm/cold, as created by various
              programs in a TV channel.
              Other media images include strong/weak (               ),
              confusing (       ) and negative (       ), etc.




Sunday, 27 December 2009
TVB
         Promotion TVC

Sunday, 27 December 2009
Loyalty (                    )


              habit developed because of interest in particular media,
              e.g. some prefer reading newspaper than internet
              news.




Sunday, 27 December 2009
Usage Behavior (                                   )


              some audience use media immediately, other use them
              during free time or even do not use them when free
              media approaches, e.g. free subscription copy of
              magazine.




Sunday, 27 December 2009
Varied Relationships
         (                )

              casual relationship if the content is uninterested, e.g. a
              sport team always loses games, or intense (             )
              relationship if the content is attractive, e.g. the winning
              sport team or a popular artiste (       ) is featured.




Sunday, 27 December 2009
Varied Relationships
         intense relationship if the content is attractive

Sunday, 27 December 2009
Audience Reactions to Media
         (                )

              It should be noted that mass media (           ) may not
              create closer relationship than specialized media (
                   ), e.g. teenagers seem uninterested in reading
              newspaper.
              In fact, small market segments, to which specialized
              media target, can account for large proportion of sales.




Sunday, 27 December 2009
small market segments
         specialized media target

Sunday, 27 December 2009
How Audiences Process
         Information in Media



Sunday, 27 December 2009
How Audiences Process
         Information in Media

              Even an audience interested in the content of a media,
              it does not mean they are interested in the
              advertisement being carried. They may pay less
              attention to advertisements because:




Sunday, 27 December 2009
...
                      .....................................................................

Sunday, 27 December 2009
...
                      .....................................................................

Sunday, 27 December 2009
How Audiences Process
         Information in Media


              they do not want the product or brand (
                                     )




Sunday, 27 December 2009
they do not want the product or brand
         (                           )

Sunday, 27 December 2009
they do not want the product or brand
         (                           )

Sunday, 27 December 2009
they do not want the product or brand
         (                           )

Sunday, 27 December 2009
How Audiences Process
         Information in Media


              they have great deal of the brand or product
              knowledge (                                  )




Sunday, 27 December 2009
How Audiences Process Information in Media
         (                           )

Sunday, 27 December 2009
How Audiences Process Information in Media
         (                           )

Sunday, 27 December 2009
How Audiences Process
         Information in Media


              low quality, creativity or memorability of the ad
              message. (
                           )




Sunday, 27 December 2009
low quality, creativity or memorability of the ad message.
         (
                           )
Sunday, 27 December 2009
low quality, creativity or memorability of the ad message.
         (
                           )
Sunday, 27 December 2009
How Audiences Process
         Information in Media


              they are overloaded with information (   )




Sunday, 27 December 2009
How Audiences Process
         Information in Media

              Despite the above reasons, buying behavior of the
              audience may be influenced when changes have been
              made to the content or advertising message, e.g. a
              new editorial column or new creative advertisement is
              launched.




Sunday, 27 December 2009
new creative advertisement is launched


Sunday, 27 December 2009
new creative advertisement is launched


Sunday, 27 December 2009
People have short-term memory on the information
              from media; no matter it is the content or
              advertisement. The traditional way of extending the
              memory period is buying media vehicles repeatedly, i.e.
              increase the advertising frequency.

              (Cultivation Effect -
                           )



Sunday, 27 December 2009
Some media planners believe this is the ONLY way that
              the memory and hence the ad effectiveness be
              extended by buying the ad in the right time, in the right
              amount and to the right markets.




Sunday, 27 December 2009
strategic media planning (   )




Sunday, 27 December 2009
strategic media planning (             )

              careful media selection and timing (
                            )




Sunday, 27 December 2009
strategic media planning (             )

              careful media selection and timing (
                            )

              creative message and media (
                )




Sunday, 27 December 2009
strategic media planning (                   )

              careful media selection and timing (
                            )

              creative message and media (
                )

              ad placement in markets where sales opportunities are
              best. (                           )




Sunday, 27 December 2009
strategic media planning (                   )

              careful media selection and timing (
                            )

              creative message and media (
                )

              ad placement in markets where sales opportunities are
              best. (                           )

              repeated advertising. (         )



Sunday, 27 December 2009
Media Planning and Marketing Mix




Sunday, 27 December 2009
Media play a significant role in the selling process when
              advertising is required, i.e. when the Promotion element of
              the marketing mix is concerned.




Sunday, 27 December 2009
Media play a significant role in the selling process when
              advertising is required, i.e. when the Promotion element of
              the marketing mix is concerned.

              Media do not work alone because they are part of a team
              of selling variables, and their role is to control the efficient
              delivery of advertisement, i.e. targeting the right prospects
              (     ).




Sunday, 27 December 2009
Media play a significant role in the selling process when
              advertising is required, i.e. when the Promotion element of
              the marketing mix is concerned.

              Media do not work alone because they are part of a team
              of selling variables, and their role is to control the efficient
              delivery of advertisement, i.e. targeting the right prospects
              (     ).

              On the other hand, some quality for a particular medium
              can help target the right segments, e.g. a home-living
              magazine can help a furniture advertisement find the right
              targets.



Sunday, 27 December 2009
furniture advertisement
         IKEA

Sunday, 27 December 2009
Exposure: A Basic Advertising
         Measure (            )




Sunday, 27 December 2009
Definition


              Exposure (           ) means “open eyes (or
              listening ears) facing the medium.” It measures
              how many people look into or read a vehicle.




Sunday, 27 December 2009
Sunday, 27 December 2009
Sunday, 27 December 2009
Sunday, 27 December 2009
Some Highlights
               It may differ for each medium.
               For example,
               exposure is counted if one says he/she read the
               publication,
               but it is counted only if one receives a people meter
               and presses the correct TV channel button during the
               survey period.
               For internet, it is counted when an ad banner, pop-up
               ad or page of content from a website is served.


Sunday, 27 December 2009
Some Highlights

              Exposure does not reveal how many people have
              actually read the advertisement. It underestimates (
                ) the true audience size.
              However, it is most readily (    ) available data that
              can measure the advertising extent (     ) because it is
              necessary to be exposed to a vehicle before anyone
              can see an advertisement




Sunday, 27 December 2009
Other Advertising Measures




Sunday, 27 December 2009
Vehicle Exposure
         (           )


              Exposure to TV or Print Media (Not ads) (
                           )




Sunday, 27 December 2009
Vehicle Exposure
         (           )

              Exposure to TV or Print Media (Not ads) (
                           )


              Open eyes facing a vehicle (or opportunities to see ads)
              (                      )




Sunday, 27 December 2009
Circulation (Print Media)
         (       )

              No. of Copies Distributed (                 )


              People or families receiving newspaper vehicles (no
              exposure counted) (           /                     )




Sunday, 27 December 2009
Circulation (Print Media)
         (       )

              No. of Copies Distributed (                 )


              People or families receiving newspaper vehicles (no
              exposure counted) (           /                     )

                                       /



Sunday, 27 December 2009
Sunday, 27 December 2009
Advertising Exposure
         (           )


              No. of Ads exposed per issue or per TV program
              (                                      )




Sunday, 27 December 2009
Advertising Exposure
         (           )

              No. of Ads exposed per issue or per TV program
              (                                      )


              A gross (or crude) counting of total no. of ads exposed
              in a vehicle (                                   )

                                         ...


Sunday, 27 December 2009
Advertising Exposure
         (           )

              No. of Ads exposed per issue or per TV program
              (                                      )


              A gross (or crude) counting of total no. of ads exposed
              in a vehicle (                                   )
                                         ...
                           (                             )


Sunday, 27 December 2009
(1)




                           (2)




                           (3)

Sunday, 27 December 2009
Supplementary Information




Sunday, 27 December 2009
Advertising Perception
         (               )

              No. of ads that consumers remember having seen in a
              vehicle (                       )


              The smallest amount of communication remembered of
              ads in a vehicle (
                   )

                                                            ~

Sunday, 27 December 2009
Advertising Perception
         (               )


              Game (Work Hard, Play Hard)



Sunday, 27 December 2009
Sunday, 27 December 2009
Sunday, 27 December 2009
Sunday, 27 December 2009
Sunday, 27 December 2009
Sunday, 27 December 2009
Sunday, 27 December 2009
Sunday, 27 December 2009
Sunday, 27 December 2009
Sunday, 27 December 2009
Advertising Perception
         (               )




Sunday, 27 December 2009
Advertising Perception
         (               )

                           9




Sunday, 27 December 2009
Advertising Perception
         (               )

              HP

              衞



              APPLE INC. iMac



              OLAY

              NIKE



Sunday, 27 December 2009
Advertising Communication
         (         )


              The total amount of recalled material from ads in a
              vehicle (                                           )




Sunday, 27 December 2009
Advertising Communication
         (         )

              The total amount of recalled material from ads in a
              vehicle (                                           )


              Feedback from ad messages in vehicles (
                                                            )
                           Feedback
                                                       ~



Sunday, 27 December 2009
Advertising Communication
         SMS Feedback

Sunday, 27 December 2009
Advertising Communication
         SMS Feedback

Sunday, 27 December 2009
Response Function (Media Effectiveness)




              No. of responses to specific advertising in a vehicle
              (
                )




Sunday, 27 December 2009
Response Function (Media Effectiveness)


              No. of responses to specific advertising in a vehicle
              (
                )


              The effects of advertising on consumers (responses
              such as (1) sales, (2) brand awareness, (3) attitude
              change, and (4) recall of messages)

                                        (              ...)
                                 (1)        (2)
                           (3)                (4)

Sunday, 27 December 2009
Response Function (Media Effectiveness)


Sunday, 27 December 2009
Response Function (Media Effectiveness)


Sunday, 27 December 2009
CPM (Cost Efficiency)



              Cost to reach 1,000 audience




Sunday, 27 December 2009
CPM (Cost Efficiency)


              Cost to reach 1,000 audience
              Budget required to targets to the potential customers.
              (                            1000                    )


                               CPM




Sunday, 27 December 2009
Response Function




Sunday, 27 December 2009
Definition


              Response function shows what percent of the people
              who are exposed to an ad varying numbers of times
              are expected to respond to that ad.
              (                                      )


                           Response Function



Sunday, 27 December 2009
Definition


              Response function shows what percent of the people
              who are exposed to an ad varying numbers of times
              are expected to respond to that ad.


                           Response Function




Sunday, 27 December 2009
Response function

Sunday, 27 December 2009
Exposure            Responding




         Response function

Sunday, 27 December 2009
Response function seems to be a more meaningful (          )
              and accurate (        ) measure, but deciding what percent of
              those people will respond is a subtle (      ) judgment that
              depends on:




Sunday, 27 December 2009
Response function seems to be a more meaningful (          )
              and accurate (        ) measure, but deciding what percent of
              those people will respond is a subtle (      ) judgment that
              depends on:

                   the product being sold (             )




Sunday, 27 December 2009
Response function seems to be a more meaningful (          )
              and accurate (        ) measure, but deciding what percent of
              those people will respond is a subtle (      ) judgment that
              depends on:

                   the product being sold (             )

                   the ad’s creative quality (              )




Sunday, 27 December 2009
Sunday, 27 December 2009
Sunday, 27 December 2009
Response function seems to be a more meaningful (          )
              and accurate (        ) measure, but deciding what percent of
              those people will respond is a subtle (      ) judgment that
              depends on:

                   the product being sold (             )

                   the ad’s creative quality (              )

                   the medium in which the ad appears
                   (                        )




Sunday, 27 December 2009
Response function seems to be a more meaningful (          )
              and accurate (        ) measure, but deciding what percent of
              those people will respond is a subtle (      ) judgment that
              depends on:

                   the product being sold (             )

                   the ad’s creative quality (              )

                   the medium in which the ad appears
                   (                        )

                   a variety of other factors (                 )



Sunday, 27 December 2009
Measuring Advertising
         Cost-Efficiency



Sunday, 27 December 2009
Measuring Advertising
         Cost-Efficiency
              The cost-efficiency of an advertisement is usually expressed in
              Cost Per Millie (=thousand), or CPM. It is the cost to deliver to
              1,000 people or homes, i.e. dividing cost by the audience
              delivery and multiplying by the quotient of 1,000.
              (              CPM
                        CPM=$37;        CPM=$34 ->
                                )
              The audience base can be circulation, homes reached,
              readers, or number of audience members of any kind of
              demographic or product usage classification.



Sunday, 27 December 2009
Sunday, 27 December 2009
True Data...
                             Circulation




Sunday, 27 December 2009
CPM of Apple Daily (FP4C) =
                           180,000 / 298,777 x 1,000=
                                   $1,659.87




Sunday, 27 December 2009
True Data   ...




Sunday, 27 December 2009
Coverage         True Data
                           ( No. of Audience)
                                                ~




Sunday, 27 December 2009
CPM

              	        Cost of 30-second commercial: 	$1,100

              	        No. of households delivered at 2:00pm:	 77,000

              	        $1,100 x 1,000/77,000	=	 $14.29




Sunday, 27 December 2009
Sunday, 27 December 2009
Sunday, 27 December 2009
Sunday, 27 December 2009
Sunday, 27 December 2009
Sunday, 27 December 2009
Sunday, 27 December 2009
Sunday, 27 December 2009
...




Sunday, 27 December 2009
CPRP (Cost per rating point)

              	        Cost of 30-second commercial: 	$1,100

              	        Rating at 2:00pm	:	 8

              	        $1,100 /8=	$137.50




Sunday, 27 December 2009
Sunday, 27 December 2009
Since each medium is measured differently, CPM is
              most typically applied to vehicles within a single
              medium. If difference is sought between use of CPM
              and CPRP for TV/radio,

                   CPM is used to compare the efficiency of individual
                   vehicles (CPM                         ), while

                   CPRP is to calculate the cost of an entire TV/radio
                   broadcast plan (CPRP
                       ).



Sunday, 27 December 2009

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Mp Week 3

  • 1. Media, Advertising and Consumers LECTURE 4 - Media Planning Sunday, 27 December 2009
  • 2. How Audiences Choose Media Sunday, 27 December 2009
  • 3. Audience Reactions to Media ( ) Sunday, 27 December 2009
  • 4. Audience Reactions to Media Audience pays attention only to their interested information at the medium. Sometimes they may waste time in some less interested content for some purposes ( ). For example, they may watch less interested TV program while waiting for their favorite ones to come, or they leaf through a magazine while waiting for someone at a hair salon. The degree of attention to an advertisement is worth studying. Sunday, 27 December 2009
  • 5. Strong Feelings ( ) the media images such as authoritative ( ) and provocative ( ), as found in a central government radio channel, or warm/cold, as created by various programs in a TV channel. Other media images include strong/weak ( ), confusing ( ) and negative ( ), etc. Sunday, 27 December 2009
  • 6. TVB Promotion TVC Sunday, 27 December 2009
  • 7. Loyalty ( ) habit developed because of interest in particular media, e.g. some prefer reading newspaper than internet news. Sunday, 27 December 2009
  • 8. Usage Behavior ( ) some audience use media immediately, other use them during free time or even do not use them when free media approaches, e.g. free subscription copy of magazine. Sunday, 27 December 2009
  • 9. Varied Relationships ( ) casual relationship if the content is uninterested, e.g. a sport team always loses games, or intense ( ) relationship if the content is attractive, e.g. the winning sport team or a popular artiste ( ) is featured. Sunday, 27 December 2009
  • 10. Varied Relationships intense relationship if the content is attractive Sunday, 27 December 2009
  • 11. Audience Reactions to Media ( ) It should be noted that mass media ( ) may not create closer relationship than specialized media ( ), e.g. teenagers seem uninterested in reading newspaper. In fact, small market segments, to which specialized media target, can account for large proportion of sales. Sunday, 27 December 2009
  • 12. small market segments specialized media target Sunday, 27 December 2009
  • 13. How Audiences Process Information in Media Sunday, 27 December 2009
  • 14. How Audiences Process Information in Media Even an audience interested in the content of a media, it does not mean they are interested in the advertisement being carried. They may pay less attention to advertisements because: Sunday, 27 December 2009
  • 15. ... ..................................................................... Sunday, 27 December 2009
  • 16. ... ..................................................................... Sunday, 27 December 2009
  • 17. How Audiences Process Information in Media they do not want the product or brand ( ) Sunday, 27 December 2009
  • 18. they do not want the product or brand ( ) Sunday, 27 December 2009
  • 19. they do not want the product or brand ( ) Sunday, 27 December 2009
  • 20. they do not want the product or brand ( ) Sunday, 27 December 2009
  • 21. How Audiences Process Information in Media they have great deal of the brand or product knowledge ( ) Sunday, 27 December 2009
  • 22. How Audiences Process Information in Media ( ) Sunday, 27 December 2009
  • 23. How Audiences Process Information in Media ( ) Sunday, 27 December 2009
  • 24. How Audiences Process Information in Media low quality, creativity or memorability of the ad message. ( ) Sunday, 27 December 2009
  • 25. low quality, creativity or memorability of the ad message. ( ) Sunday, 27 December 2009
  • 26. low quality, creativity or memorability of the ad message. ( ) Sunday, 27 December 2009
  • 27. How Audiences Process Information in Media they are overloaded with information ( ) Sunday, 27 December 2009
  • 28. How Audiences Process Information in Media Despite the above reasons, buying behavior of the audience may be influenced when changes have been made to the content or advertising message, e.g. a new editorial column or new creative advertisement is launched. Sunday, 27 December 2009
  • 29. new creative advertisement is launched Sunday, 27 December 2009
  • 30. new creative advertisement is launched Sunday, 27 December 2009
  • 31. People have short-term memory on the information from media; no matter it is the content or advertisement. The traditional way of extending the memory period is buying media vehicles repeatedly, i.e. increase the advertising frequency. (Cultivation Effect - ) Sunday, 27 December 2009
  • 32. Some media planners believe this is the ONLY way that the memory and hence the ad effectiveness be extended by buying the ad in the right time, in the right amount and to the right markets. Sunday, 27 December 2009
  • 33. strategic media planning ( ) Sunday, 27 December 2009
  • 34. strategic media planning ( ) careful media selection and timing ( ) Sunday, 27 December 2009
  • 35. strategic media planning ( ) careful media selection and timing ( ) creative message and media ( ) Sunday, 27 December 2009
  • 36. strategic media planning ( ) careful media selection and timing ( ) creative message and media ( ) ad placement in markets where sales opportunities are best. ( ) Sunday, 27 December 2009
  • 37. strategic media planning ( ) careful media selection and timing ( ) creative message and media ( ) ad placement in markets where sales opportunities are best. ( ) repeated advertising. ( ) Sunday, 27 December 2009
  • 38. Media Planning and Marketing Mix Sunday, 27 December 2009
  • 39. Media play a significant role in the selling process when advertising is required, i.e. when the Promotion element of the marketing mix is concerned. Sunday, 27 December 2009
  • 40. Media play a significant role in the selling process when advertising is required, i.e. when the Promotion element of the marketing mix is concerned. Media do not work alone because they are part of a team of selling variables, and their role is to control the efficient delivery of advertisement, i.e. targeting the right prospects ( ). Sunday, 27 December 2009
  • 41. Media play a significant role in the selling process when advertising is required, i.e. when the Promotion element of the marketing mix is concerned. Media do not work alone because they are part of a team of selling variables, and their role is to control the efficient delivery of advertisement, i.e. targeting the right prospects ( ). On the other hand, some quality for a particular medium can help target the right segments, e.g. a home-living magazine can help a furniture advertisement find the right targets. Sunday, 27 December 2009
  • 42. furniture advertisement IKEA Sunday, 27 December 2009
  • 43. Exposure: A Basic Advertising Measure ( ) Sunday, 27 December 2009
  • 44. Definition Exposure ( ) means “open eyes (or listening ears) facing the medium.” It measures how many people look into or read a vehicle. Sunday, 27 December 2009
  • 48. Some Highlights It may differ for each medium. For example, exposure is counted if one says he/she read the publication, but it is counted only if one receives a people meter and presses the correct TV channel button during the survey period. For internet, it is counted when an ad banner, pop-up ad or page of content from a website is served. Sunday, 27 December 2009
  • 49. Some Highlights Exposure does not reveal how many people have actually read the advertisement. It underestimates ( ) the true audience size. However, it is most readily ( ) available data that can measure the advertising extent ( ) because it is necessary to be exposed to a vehicle before anyone can see an advertisement Sunday, 27 December 2009
  • 51. Vehicle Exposure ( ) Exposure to TV or Print Media (Not ads) ( ) Sunday, 27 December 2009
  • 52. Vehicle Exposure ( ) Exposure to TV or Print Media (Not ads) ( ) Open eyes facing a vehicle (or opportunities to see ads) ( ) Sunday, 27 December 2009
  • 53. Circulation (Print Media) ( ) No. of Copies Distributed ( ) People or families receiving newspaper vehicles (no exposure counted) ( / ) Sunday, 27 December 2009
  • 54. Circulation (Print Media) ( ) No. of Copies Distributed ( ) People or families receiving newspaper vehicles (no exposure counted) ( / ) / Sunday, 27 December 2009
  • 56. Advertising Exposure ( ) No. of Ads exposed per issue or per TV program ( ) Sunday, 27 December 2009
  • 57. Advertising Exposure ( ) No. of Ads exposed per issue or per TV program ( ) A gross (or crude) counting of total no. of ads exposed in a vehicle ( ) ... Sunday, 27 December 2009
  • 58. Advertising Exposure ( ) No. of Ads exposed per issue or per TV program ( ) A gross (or crude) counting of total no. of ads exposed in a vehicle ( ) ... ( ) Sunday, 27 December 2009
  • 59. (1) (2) (3) Sunday, 27 December 2009
  • 61. Advertising Perception ( ) No. of ads that consumers remember having seen in a vehicle ( ) The smallest amount of communication remembered of ads in a vehicle ( ) ~ Sunday, 27 December 2009
  • 62. Advertising Perception ( ) Game (Work Hard, Play Hard) Sunday, 27 December 2009
  • 72. Advertising Perception ( ) Sunday, 27 December 2009
  • 73. Advertising Perception ( ) 9 Sunday, 27 December 2009
  • 74. Advertising Perception ( ) HP 衞 APPLE INC. iMac OLAY NIKE Sunday, 27 December 2009
  • 75. Advertising Communication ( ) The total amount of recalled material from ads in a vehicle ( ) Sunday, 27 December 2009
  • 76. Advertising Communication ( ) The total amount of recalled material from ads in a vehicle ( ) Feedback from ad messages in vehicles ( ) Feedback ~ Sunday, 27 December 2009
  • 77. Advertising Communication SMS Feedback Sunday, 27 December 2009
  • 78. Advertising Communication SMS Feedback Sunday, 27 December 2009
  • 79. Response Function (Media Effectiveness) No. of responses to specific advertising in a vehicle ( ) Sunday, 27 December 2009
  • 80. Response Function (Media Effectiveness) No. of responses to specific advertising in a vehicle ( ) The effects of advertising on consumers (responses such as (1) sales, (2) brand awareness, (3) attitude change, and (4) recall of messages) ( ...) (1) (2) (3) (4) Sunday, 27 December 2009
  • 81. Response Function (Media Effectiveness) Sunday, 27 December 2009
  • 82. Response Function (Media Effectiveness) Sunday, 27 December 2009
  • 83. CPM (Cost Efficiency) Cost to reach 1,000 audience Sunday, 27 December 2009
  • 84. CPM (Cost Efficiency) Cost to reach 1,000 audience Budget required to targets to the potential customers. ( 1000 ) CPM Sunday, 27 December 2009
  • 86. Definition Response function shows what percent of the people who are exposed to an ad varying numbers of times are expected to respond to that ad. ( ) Response Function Sunday, 27 December 2009
  • 87. Definition Response function shows what percent of the people who are exposed to an ad varying numbers of times are expected to respond to that ad. Response Function Sunday, 27 December 2009
  • 89. Exposure Responding Response function Sunday, 27 December 2009
  • 90. Response function seems to be a more meaningful ( ) and accurate ( ) measure, but deciding what percent of those people will respond is a subtle ( ) judgment that depends on: Sunday, 27 December 2009
  • 91. Response function seems to be a more meaningful ( ) and accurate ( ) measure, but deciding what percent of those people will respond is a subtle ( ) judgment that depends on: the product being sold ( ) Sunday, 27 December 2009
  • 92. Response function seems to be a more meaningful ( ) and accurate ( ) measure, but deciding what percent of those people will respond is a subtle ( ) judgment that depends on: the product being sold ( ) the ad’s creative quality ( ) Sunday, 27 December 2009
  • 95. Response function seems to be a more meaningful ( ) and accurate ( ) measure, but deciding what percent of those people will respond is a subtle ( ) judgment that depends on: the product being sold ( ) the ad’s creative quality ( ) the medium in which the ad appears ( ) Sunday, 27 December 2009
  • 96. Response function seems to be a more meaningful ( ) and accurate ( ) measure, but deciding what percent of those people will respond is a subtle ( ) judgment that depends on: the product being sold ( ) the ad’s creative quality ( ) the medium in which the ad appears ( ) a variety of other factors ( ) Sunday, 27 December 2009
  • 97. Measuring Advertising Cost-Efficiency Sunday, 27 December 2009
  • 98. Measuring Advertising Cost-Efficiency The cost-efficiency of an advertisement is usually expressed in Cost Per Millie (=thousand), or CPM. It is the cost to deliver to 1,000 people or homes, i.e. dividing cost by the audience delivery and multiplying by the quotient of 1,000. ( CPM CPM=$37; CPM=$34 -> ) The audience base can be circulation, homes reached, readers, or number of audience members of any kind of demographic or product usage classification. Sunday, 27 December 2009
  • 100. True Data... Circulation Sunday, 27 December 2009
  • 101. CPM of Apple Daily (FP4C) = 180,000 / 298,777 x 1,000= $1,659.87 Sunday, 27 December 2009
  • 102. True Data ... Sunday, 27 December 2009
  • 103. Coverage True Data ( No. of Audience) ~ Sunday, 27 December 2009
  • 104. CPM Cost of 30-second commercial: $1,100 No. of households delivered at 2:00pm: 77,000 $1,100 x 1,000/77,000 = $14.29 Sunday, 27 December 2009
  • 113. CPRP (Cost per rating point) Cost of 30-second commercial: $1,100 Rating at 2:00pm : 8 $1,100 /8= $137.50 Sunday, 27 December 2009
  • 115. Since each medium is measured differently, CPM is most typically applied to vehicles within a single medium. If difference is sought between use of CPM and CPRP for TV/radio, CPM is used to compare the efficiency of individual vehicles (CPM ), while CPRP is to calculate the cost of an entire TV/radio broadcast plan (CPRP ). Sunday, 27 December 2009