♟️Advertising Strategy Unit 11 – Media Planning & Buying Strategies

Key Concepts in Media Planning

• Media planning involves strategically selecting and scheduling media placements to reach target audiences and achieve advertising objectives
• Reach refers to the total number of unique individuals exposed to an advertising message within a specified time period
• Frequency indicates the average number of times an individual within the target audience is exposed to an advertising message during a campaign
• Gross Rating Points (GRPs) measure the total exposure an advertising schedule generates, calculated by multiplying reach and frequency ($GRPs = Reach \times Frequency$)
• Share of Voice (SOV) represents the percentage of total advertising exposure in a market that a particular brand or campaign receives compared to its competitors
• Effective Frequency is the minimum number of exposures required for an advertising message to have a desired impact on the target audience
• Media mix optimization involves allocating budget across various media channels to maximize campaign effectiveness and return on investment (ROI)
• Continuity, Flighting, and Pulsing are different scheduling patterns used in media planning to distribute advertising exposure over time

Target Audience Analysis

• Defining the target audience is crucial for effective media planning, ensuring that advertising reaches the right people with relevant messages
• Demographic segmentation categorizes the audience based on age, gender, income, education, and occupation to identify key characteristics and media consumption habits
• Psychographic segmentation goes beyond demographics to consider attitudes, values, interests, and lifestyles (AIOs) of the target audience
• Behavioral segmentation focuses on audience behaviors such as product usage, brand loyalty, and media consumption patterns
• Audience insights can be gathered through primary research methods like surveys, focus groups, and interviews, as well as secondary sources such as industry reports and syndicated data
• Creating detailed buyer personas helps media planners understand the target audience's needs, preferences, and decision-making processes
  • Personas include demographic, psychographic, and behavioral attributes
  • They also outline media consumption habits and preferred channels
• Audience data from various sources (website analytics, social media insights, CRM databases) can be integrated to create a comprehensive understanding of the target audience

Media Channels and Platforms

• Traditional media channels include television, radio, print (newspapers and magazines), and out-of-home (billboards and transit advertising)
  • Television offers broad reach and visual impact but can be expensive
  • Radio provides local targeting and cost-efficiency but lacks visual elements
  • Print allows for detailed information and targeted placements but has limited reach and declining readership
  • Out-of-home offers high visibility and geographic targeting but limited message complexity
• Digital media channels encompass various platforms and formats, such as display advertising, search engine marketing (SEM), social media, mobile, and video advertising
  • Display advertising includes banner ads, rich media, and native advertising on websites and apps
  • Search engine marketing involves paid search ads (pay-per-click) and organic search engine optimization (SEO)
  • Social media platforms (Facebook, Instagram, Twitter) enable targeted advertising based on user demographics, interests, and behaviors
  • Mobile advertising includes in-app ads, mobile web ads, and location-based targeting
  • Video advertising spans platforms like YouTube, connected TV (CTV), and over-the-top (OTT) streaming services
• Multichannel and omnichannel strategies integrate multiple media channels to create a seamless and consistent brand experience across touchpoints
• Media channel selection depends on factors such as target audience preferences, campaign objectives, budget, and creative requirements

Budgeting and Cost Considerations

• Setting a media budget involves allocating funds to various media channels and tactics based on campaign goals and available resources
• Share of Voice (SOV) budgeting allocates budget to maintain or achieve a desired share of advertising exposure relative to competitors
• Objective and Task (OT) budgeting determines the budget by defining specific objectives and estimating the costs associated with achieving those objectives
• Percentage of Sales (POS) budgeting sets the media budget as a fixed percentage of past or projected sales revenue
• Affordable budgeting allocates funds based on what the company can afford, without considering specific objectives or market share
• Cost per Thousand (CPM) is a common metric used to compare the cost-efficiency of different media vehicles, calculated by dividing the cost of the media placement by the number of impressions delivered, expressed in thousands ($CPM = Cost \div (Impressions \div 1000)$)
• Cost per Click (CPC) and Cost per Acquisition (CPA) are performance-based metrics used in digital advertising to measure the cost of driving specific actions (clicks or conversions)
• Negotiating favorable rates and value-added opportunities with media vendors can help optimize the budget and maximize ROI

Media Buying Process

• Media buying involves purchasing advertising space and time from media owners and publishers to execute the media plan
• Request for Proposal (RFP) is a document sent to media vendors outlining the campaign requirements, target audience, budget, and desired outcomes
• Media vendors respond to the RFP with a proposal detailing their offerings, rates, and any value-added opportunities or unique features
• Evaluating and comparing vendor proposals based on factors such as audience reach, targeting capabilities, cost-efficiency, and alignment with campaign objectives
• Negotiating with selected vendors to secure the best rates, placements, and added value while ensuring transparency and accountability
• Insertion Orders (IOs) are legal contracts that specify the terms of the media buy, including ad placements, dates, rates, and performance expectations
• Trafficking refers to the process of delivering creative assets (ads) to the media vendors and ensuring they are properly displayed according to the IO specifications
• Monitoring and optimizing the media buy throughout the campaign to ensure it is delivering the desired results and making adjustments as needed

Measurement and Metrics

• Measuring the effectiveness of media investments is essential for evaluating campaign performance and informing future planning decisions
• Reach and frequency metrics assess the extent to which the target audience was exposed to the advertising message
• Gross Rating Points (GRPs) and Target Rating Points (TRPs) measure the total exposure generated by the media plan, with TRPs focusing specifically on the target audience
• Click-through Rate (CTR) measures the percentage of ad impressions that result in clicks, indicating the ad's ability to drive engagement and traffic ($CTR = (Clicks \div Impressions) \times 100$)
• Conversion Rate measures the percentage of ad clicks or interactions that result in a desired action, such as a purchase or lead generation ($Conversion\ Rate = (Conversions \div Clicks) \times 100$)
• Return on Ad Spend (ROAS) evaluates the revenue generated by the media investment relative to the cost of the advertising ($ROAS = Revenue \div Ad\ Spend$)
• Brand lift studies measure the impact of advertising on brand awareness, perception, and purchase intent through surveys or other research methods
• Attribution modeling helps determine the relative contribution of different media touchpoints to conversions or sales, informing budget allocation and optimization decisions

Emerging Trends in Media Planning

• Programmatic advertising uses automated technology and data-driven algorithms to buy and optimize media in real-time, enabling more precise targeting and efficiency
• Addressable TV advertising allows for household-level targeting on connected TV (CTV) and over-the-top (OTT) platforms, delivering personalized ads to specific audience segments
• Influencer marketing leverages the reach and credibility of social media influencers to promote brands and products through sponsored content and partnerships
• Contextual targeting aligns ad placements with relevant content based on keywords, topics, and sentiment analysis, ensuring ads appear in brand-safe and suitable environments
• First-party data strategies prioritize the collection and activation of owned audience data (website visitors, CRM databases) for targeting and personalization, as third-party cookies become less viable
• Cross-device tracking and identity resolution aim to create a unified view of the customer journey across multiple devices and platforms, enabling more seamless and consistent messaging
• Interactive and immersive ad formats, such as augmented reality (AR) and virtual reality (VR), offer new ways to engage audiences and create memorable brand experiences

Case Studies and Real-World Applications

• The "Share a Coke" campaign by Coca-Cola personalized product packaging with popular names and phrases, using a multichannel approach (TV, social media, experiential) to drive engagement and sales
  • The campaign resulted in a 2% increase in soft-drink sales and a 7% increase in Coke consumption by young adults
• Procter & Gamble's "Like a Girl" campaign for Always challenged gender stereotypes and empowered young women through a series of digital videos and social media activations
  • The campaign generated over 90 million views, 12 billion media impressions, and a 50% increase in purchase intent among the target audience
• The "Dumb Ways to Die" campaign by Metro Trains Melbourne used a viral video and mobile game to promote rail safety, targeting young people with a humorous and shareable approach
  • The video reached 46 million views within two weeks, and the campaign contributed to a 21% reduction in rail accidents and deaths
• Airbnb's "Live There" campaign showcased unique travel experiences and local accommodations, using a combination of digital video, social media, and out-of-home advertising to inspire travelers
  • The campaign drove a 13% increase in bookings and a 16% increase in revenue, with a 320% return on advertising spend (ROAS)