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THE WHY'S AND HOW'S OF MEDIA MIX The OTS problem: Developing comparable crossmedia measures of ad exposure. The CPM target model. The value of APX in print planning. The media-weighting problem. Using attentiveness, involvement and message receptivity as media-specific values. Media-mix and campaign effectiveness: What ROI (return on investment) modeling tells us about mixing-media. Using modeling to find the price-elasticity crossover points of media effects. Cross-Platform and media synergies. Is the sum worth more than the parts?
Media Strategy
Essential Parameters of the Plan Reach Frequency Number of Advertising Cycles for the Year Media categories to use
Frequency
BUDGET
# of Advertising Cycles
Over the entire planning period
It is better to sell some people completely than many people not at all.
(Rossiter and Percy, 1987,1997)
Media Selection
Three stages of the media plan implementation
Media Selection Media Vehicle Selection Development of the Schedule of Advertising Insertions in the Vehicles
Adding too much of anything in media brings lessened response This phenomenon is called diminishing marginal utility and affects everything that is done in planning
+12%
88.5 79.1
16.7
33.3
50.0
66.7
83.3
100.0
Response
Media Dollars
Online
Reach %
Television
1. After a certain reach point, each additional media dollar achieves less consumer response and build reach at a much slower, and costlier rate
$ Investment
Media Concentration
vs.
Media Dispersion
A concentrated strategy is also an "all-eggs-in-one-basket" strategy. If the particular ad is not well received or the particular media category only reaches a fraction of the intended target audience, then it will perform poorly
2. Higher frequency and repetition within that media category 3. Used when there is a concern to share space with competing brands, leading to confusion among consumers 4. High SOI/SOV. Dominant advertiser
Mix Strategy: Media Concentration vs. Media Dispersion Hypothetical Media Mix and Share of Investment for 3 Competing Brands
Competing Brand A B C Total Spend Television $400,000 $600,000 $0 Magazine $250,000 $250,000 $0 Direct Mail Internet $200,000 $0 $0 $200,000 $300,000 $0 $600,000 $900,000 Total Spend $1,150,000 $850,000 $600, 000 $2,600,000
$1,000,000 $500,000
Brands' SOI in Each Media Category A B C Total % 40% 60% 0% 100% 50% 50% 0% 100% 100% 0% 0% 100% 33% 0% 67% 100% 44% 33% 23% 100%
The media concentration approach is often preferable for brands that have a small or moderate media budget but intend to make a great impact.
Develop a table that lists the vehicle candidates in rows and the characteristics in columns Rate each of the characteristics of each vehicle on a scale of 1 to 3 and obtain an average index. The best media vehicles to choose are those with the highest index numbers
Selection of Media Vehicle Based on Quantitative and Qualitative Characteristics V1 V2 V3 V4 Qn1 3 1 1 1 Qn2 2 2 3 1 Qn3 1 2 3 2 Ql1 3 2 1 1 Ql2 1 2 1 2 Ql3 1 3 3 1 Index 1.8 2.0 2.0 1.3
All three categories of media (mass, direct response, and point-ofpurchase) serve a different role in moving the customer from brand awareness to brand interest to purchase intent to actual purchase and then to re-purchase
An integrated campaign, can combine different categories such as TV ads to introduce the product, Internet media to provide one-to-one information, and instore displays to drive sales
Advertising Media
(Ma
(Media for Ad
Consumer
Communication E Brand Awareness Reco Brand Recognition News Maga Outdo FSI (f POP Brand Recall Radio News Brand Attitude Reco Low Involvement/Informational Radio
Nature of Product and target audience Any product or service sold to a broad or Product or service that is well known and Products or services with broad target au
25,365.
48,950.
81,554.
$27,812.00 100%
$103,277.00 $82,382.00
29%
$128,951.00
23%
100%
$251,520.88 $84,000.00
64%
$53,700.96
21%
$69,000.00
44%
$59,646.00
56%
70%
$9,391.00