Strategy doc. considerations and direction

1. Media Planning and Buying

2. • Do you have control of your clients PR & media budget?
• Are you able to buy media space for your clients?
• Are you aware of special features coming up relating to
your client’s product or service?
• Are you unsure of how media is planned and bought?
• Do you understand the terminology used in buying
media?

3. • This talk sets out to:
– Explain the media planning process
– Outline the tools available to plan with
– Define key terms used in the bought media
environment
– Open the floor for questions throughout the
discussion
– The subject matter is very broad, and therefore the
more interaction I get from your side, the more
focussed on your needs this session will become

4. Media planning defined
• Media planning can be defined as:
– Finding ways of reaching the right number of appropriate
people;
– the right number of times;
– at the best time and place;
– with the right advertisement;
– at minimum cost;
– to achieve the brand’s/service’s objectives
• The role of media planning is crucial to the effective
expenditure of approximately R6 billion in advertising
annually

5. “TAKE SOME DEMOGRAPHICS, AND
SOME GUT FEELING, SPRINKLE WITH
JUDGEMENT AND STIR”
Source: Media Week January 1993

6. Media Research
• AMPS
(All Media and Products Survey) sample 24 812 population
30 901 000
– TAMS
– (Television Audience Measurement Survey)
– RAMS
– (Radio Audience Measurement Survey)
• SABRE sample 2 000 business men & women
(South African Business Research Evaluation)
• TGI sample 15 000 in two waves of 7 500 each
(Target Group Index)
• ROOTS
urban retail and readership - local community papers sample 20 000

7. Rate information
• Media Manager
• SARAD

8. Competitive Spend Analysis
• Nielsen Adex

9. The More Commonly Used Media Terms
• REACH
– The number of or percentage of individuals, households,
etc., potentially exposed to a medium or schedule at least
once

10. The More Commonly Used Media Terms
(cont.)
• AVERAGE FREQUENCY
– The AVERAGE OPPORTUNITIES to see, hear or read an
ad amongst those reached
OR
– The number of times ON AVERAGE a person within the
target market, who has been reached is exposed to the
advertiser’s message

11. The More Commonly Used Media Terms
(cont.)
• GRPs (GROSS RATING POINTS)
– The summation of the exposure opportunities for all the
elements in a media schedule
– The product of reach and frequency
– Used to express the “tonnage” of exposure generated by a
campaign
– Universal measure (comparing apples with apples, but use
with caution as media have different impact)

12. The More Commonly Used Media Terms
(cont.)
• AR’S VERSUS GRP’S
– Amps ratings are the number of viewers, averaged across a
time period and percentaged on the total number of
individuals in the relevant group
– In essence, ARs fulfil the same role as GRPs
– The number of spots during a burst is not important,
because different TV and radio spots deliver different AR
and GRP levels at varying costs
– The main difference between ARs and GRPs is that the AR
is a time weighted average. It is the average of the length
of time that each person watched TV over a specified time

13. The More Commonly Used Media Terms
(cont.)
• EFFICIENCY VERSUS EFFECTIVENESS
• WHAT IS COST EFFICIENCY ?
– Relates to efficiency of media delivery, and is usually
expressed as CPP or CPM
It is a method of comparing the value of different media for a
specific campaign on a MONETARY basis
• WHAT IS COST EFFECTIVENESS ?
– It is a method of comparing the value of different media for a
specific campaign on an
ACHIEVEMENT OF OBJECTIVES BASIS

14. The More Commonly Used Media Terms
(cont.)
• CPP VS CPT
– CPP is the cost of achieving one rating point or 1% reach in any
given market. Extensively used in electronic media
– CPT refers to the advertising cost purchasing 1000 units of
audiencei
– We think of a rating as a percentage of the population, but ratings
are time weighted
– You could turn ratings into thousands by ignoring the fact that there
are “bits” of people and simply multiply the universe by the rating
– This forgets that some people saw all of the event and some only
saw 50% of the event
– Further, the peoplemeter universe changes daily, unless we look
only at gender, age and language, therefore the calculation of
thousands will differ depending on the universe

15. The More Commonly Used Media Terms
(cont.)
• PSCCM
– Per single column centimeter
– Newspaper pages are divided into columns for advertising
– These do not correlate to columns for editorial, which vary
depending on layout and editorial policy
– Generally broadsheets are 54cm high by 10 columns wide
– Generally tabloids are either 39cm high by 7 or 8 columns wide,
depending on the publication group
– Sunday Times recently introduced modular advertising, where
height needs to be a variable of 5cm
– Rates are worked out by multiplying rate by height, by column
– Rates for full colour, black & white, 1 spot, 2 spot. Generally what
you see is what you are charged for, but should be confirmed with
the publication in question

16. The More Commonly Used Media Terms
(cont.)
• SPONSORSHIPS
• A sponsorship is the full or partial financing by the advertiser of a
programme / feature or event, in exchange for brand / corporate
awareness / association with / within that programme or event
• Generally sponsorships have the following elements
– Opening Billboard – an introduction to a TV / radio programme, which
usually includes a mention of the sponsors and normally 10” or 15” in length
– Closing Billboard – an closing of a TV / radio programme, which usually
includes a mention of the sponsors and normally 10” or 15” in length
– Stings often attached to station promotion of the programme, 5” or 10” in
duration (tagged)
– Commercial flighting during the programme & sometimes stings during the
programme

17. The Development of the Media Strategy
The media Strategy Contains five basic elements:
• Target Audience WHO
• Geographic Spending WHERE
• Scheduling WHEN
• Creative Considerations WHAT
• Media Weight / Delivery HOW MUCH

18. The Development of the Media Strategy (cont.)
• Always involves a series of trade-offs
• The decision made for each element has a “price tag”
• Trade-offs or compromises will be necessary
• The skill of media planning is to achieve the best
balance of these dimensions relative to the campaign
objectives

19. The Development of the Media Strategy (cont.)
CONTINUITY/TIME
(Longer campaigns, more bursts)
COVER / REACH FREQUENCY
(More publications, (More repetition,
another medium) higher number of insertion)
DOMINANCE / IMPACT
(Longer commercials, bigger spaces,
colour, special positions)

20. The Development of the Media Strategy (cont.)
• Every Media Strategy document must include the
following:
– Marketing Environment
– Target Market
– Budget
– Regionality
– Timing / Seasonality
– Objectives including exposure objectives
– Strategy
– Conclusion

21. Marketing Environment
• KEY ISSUES
– Market share and size
– Pricing vs. competitors
– Competitive activity
– Clutter in the category?
– High/low interest
– Image/Commodity
– Brand Loyalty

22. Constructing the Target
• The target market definition should be a brief, clear
and workable statement of the group of people to
whom the advertising is aimed
• The closer the match, the less money wasted on those
not needed and the more efficient the campaign
• Who are we talking to?
• Use all available research sources
– (Psychographic, demographic, LSMS, Lifestyle, Product
Usage, Geodemographic, Media usage)
• Regional skews
• Purchaser vs. user – same or different people
• Quantify the target universe

23. LSMS
• Social changes and the breakdown of community
barriers resulted in crossover consumption of media
• LSMs came about to remove racial references from
media planning unless they are relevant to the media
plan
• There are 29 variables and positive and negative scores
are allocated for each in order to measure your LSM
level

24. LSMS
1 Hot running water 16 Less than 2 radio sets in household
2 Fridge/freezer 17 Hi-fi/music centre
3 Microwave oven 18 Rural outside Gauteng/W.Cape
4 Flush toilet in/outside house 19 Built-in kitchen sink
5 No domestic in household 20 Home security service
6 VCR 21 Deep freezer
7 Vacuum cleaner/floor polisher 22 Water in home/on plot
8 No cell phone in household 23 M-Net/DStv subscription
9 Traditional hut 24 Dishwasher
10 Washing machine 25 Electricity
11 PC in home 26 Sewing machine
12 Electric stove 27 Gauteng
13 TV set 28 Western Cape
14 Tumble dryer 29 Motor vehicle in household
15 Home telephone

25. Budget
• How much money is available?
• Does budget include / exclude VAT / Production /
Promotions
• Cash flow timing
• Track real vs. inflated increase / decrease

26. Timing / Seasonality
• When is the product purchased ?
• How often ?
• Promotional timing
(Do we need promotional advertising support pre /
post / during promotional periods?)
• Will advertising have a greater effect at certain times
of the year?

27. Objectives
• If you don’t know where you are going, and why, any
road will take you there and you won’t know when
you have arrived!
• Tasks have to be set out in clear, unambiguous
terms, with a broad outline of the ways in which they
are to be carried out
• WHAT IS A MEDIA OBJECTIVE?
– Objectives should be clear with regard to time and effect
– Media objectives should be specific to media

28. What Are Our Media Objectives
• REACH SPECIFIC
• DURATION MEASURABLE
• IMPACT ACHIEVABLE
• FREQUENCY REALISTIC
• TIME PERIOD

29. Strategy
(How to achieve our objectives)
• Is a “classical” above –the-line media route the
answer or a combination of ATL media and BTL /
promotional exposure?
• Inherent strengths/weaknesses of different
approaches & media types
• What tactical opportunities are available?
• Is budget sufficient for the recommended route?
• Does client have preconceived ideas about media
usage?
• Arrive at recommended plan of action
• Include broad media selection

30. Plan the Detail
• The specifics of each medium recommended in the
media strategy is planned
• Implementation may take the form of conventional
advertising or the negotiation of promotional /
sponsorship concept
• The plan details
– Selection of media vehicles
– Selection of timing and phasing elements
– Selection of number of insertions-relates to GRPs
– Selection of programmes (TV/Radio)
– Allocation of budget

31. Media Buying
• Traditionally the media department is divided into two clear
functions, namely;
– Media planning
– Media buying
• Over the past 5 decades media buying has consisted mainly of a
largely admin orientated function of scheduling, booking and
administration of the media plan
• However, with recent developments including the advent of the
media independent, media planners are often looked upon as
custodian of the media strategy, formulators of the media objectives,
while media buyers are the custodians of the actual campaign
delivery

32. Media Buying (cont.)
• There are a number of ways the media buyer can make
a direct impact on the content of the actual media plan
– Rate negotiation
– Budget and Rate monitoring
– Campaign monitoring
– Scheduling
• The above factors have given rise to a new term …
implementation planning

33. Television – A Working Timeframe
• Airtime is always subject to availability
• Rate cards are received approximately 2 months prior
• On SABC to qualify for early booking discount the
schedule has to be booked 5 weeks before a particular
month
• Bookings should be made as early as possible due to
limited availability
• Material deadline is 5 to 10 days prior
• For sponsorships, material is required earlier for
approval
• Cancellation deadline is 15 - 28 working days or 100%
penalty

34. Radio – A Working Timeframe
• Airtime is always subject to availability
• Booking deadlines vary from are 3 to 5 working days prior flighting
• Material deadlines vary from 2 to 5 working days prior to flighting
• For sponsorships or created features, the deadline is 2 weeks and
for a competition 1 month
• The cancellation deadline is 10 to 28 days or a 100% penalty will
apply
• Rate increases are generally advised 3 weeks to a month prior to
implementation and different station groups increase rates at
varied times of the year
• There are often more than one rate increase per annum with radio

35. Cinema – A Working Timeframe
• Cinema must be booked 3 to 5 weeks before first
screening date on for 35mm and 10 days for digital
• A cinema week starts on a Friday
• 35mm final material must be delivered 3 weeks prior to
first screening date in order for bulk prints to be
produced
• Digital material must be delivered 2 weeks before first
screening date to accommodate transfer and checking
• The cancellation period is 28 days to 6 weeks

36. Magazines – A Working Timeframe
• Booking as well as cancellation deadline is generally
6 weeks prior to scheduled month
• Material delivery deadlines are generally four weeks
• In the case of the weekly financial magazines,
booking deadline is two weeks prior to issue date with
material deadline ten days to one week prior to issue
date
• 50% to 100% cancellation if after the booking
deadline

37. Newspapers– A Working Timeframe
• Daily newspapers require 2 to 3 days for booking as
well as cancellation
• Material delivery is 1 or 2 days before issue date
• Weekly newspapers should preferably be booked 7
working days before issue date
• Material delivery 3 days before issue date
• Cancellation deadline is the same as booking
deadline

38. Outdoor – A Working Timeframe
• An outdoor contract must be signed at least 21 working
days before application date
• Booking deadline is maximum 3 months prior or based
on availability
• Contract renewal is at least 3 months prior to expiry
• Final material must be delivered 10 working days before
application date in order to produce face
• Cancellation of a contract is not accepted with some
media owners, while others require as much as 4
months
• Failure to advise non-renewal incurs 100% penalty

39. Monitoring The Plan
• Once the plan has been booked, it requires constant
monitoring of all aspects of the media plan
• The following four aspects need constant scrutiny
– Budget
– Performance
– Environment
– The Brand
• Media planning is an ongoing process, that means
constantly challenging the status quo and looking for
new solutions