Media Planning and Buying
TYBMM
SEM V
Revised syllabus
2015-16
Edition I
By: Dr Hanif Lakdawala
haniflakdawala@gmail.com
MODULE
I
1. AN
OVERVIEW OF MEDIA PLANNING:
Media planning: is an important component of the promotional
strategy formulation. Selection of appropriate media is important not only to
reach the desired target audience but also to ensure best utilization of
promotional expenditure.
The Media
Plan—the goal of the media plan is
to find a combination of media that will enable the marketer to communicate the
message in the most effective manner possible at minimum cost
Media planning entails finding the most
appropriate media platform to advertise the company or client’s brand/product.
Media planners determine when, where and how often a message should be placed.
Their goal is to reach the right audience at the right time with
the right message to generate the desired response and then stay
within the designated budget. .
Definition
one: the process of deciding how to most
effectively get your marketing communications seen by your target audience.
Definition
Two:
A process for
determining the most cost-effective mix of media for achieving a set of media
objectives.
•Goal: maximize
impact while minimizing cost
•Media is often
the largest MC budget item
Definition:
Three:
The design of a
strategy that shows how investments in advertising time and space will
contribute to achievement of marketing objectives.
Definition
four:
Media planning
is about determining the best Media Mix (i.e., the best combination of one-way
and two-way media) to reach a particular target for a particular brand
situation.
Media
Planner- The person at the advertising agency who
develops and executes your media plan.
2.
Basic Terms and Concepts:
Given at the end of the notes
3.
Various functions of
Media Planning in Advertising?
1. Proper media planning enables
the selection of the right media: selection of the right media
is crucial in the entire planning process. How best can I reach my target audience? Is the question kept in mind?
2. It helps to allocate the advertising funds to the right
products in the right media: for example, ads for chocolates will be placed in a slot
where there is maximum children viewer ship. And channels like Nickelodeon,
Cartoon Network or between 5-7 pm
when most children watch cartoons.
3. It indicates the period or the season in which the
advertiser need to concentrate advertising efforts: for example all the paint
advertisements concentrate on the festive seasons. A few months before the
festival like Diwali the ads are released.
4. It helps achieve the advertising
objectives.
- It minimizes wastages of advertising funds: when money is used in the right direction there are minimum wastages. A media plan helps the ad agency to obtain approval form the client. Proper media planning will help the advertiser to reach the right target audience. It helps to finalize the frequency of advertisements: how many repetitions of the advertisement should be done and are required also specified in a media plan.
Media Buyer responsibilities:
Media Buyer is
responsible for purchasing media space or time, as well as developing the
campaign and researching how it will be most effective for the client. Their
mission is to find a combination of media that will enable the marketer to
communicate the message in the most effective manner possible at the minimum
cost.
1. Providing inside info
Media buyers are
important information sources for media planners. Close enough to day-to-day
changes in media popularity and pricing to be a constant source of inside
information
2. Selecting Media Vehicles
Choose the best
vehicles that fit the target audience’s aperture. The media planner lays out
the direction; the buyer is responsible for choosing specific vehicles
3. Negotiation
Media buyers
pursue special advantages for clients. Locate the desired vehicles and
negotiate and maintain satisfactory schedule and rates
4. Preferred Positions
Locations in
print media that offer readership advantages. Preferred positions often
carry a premium surcharge
5. Billing and Payment
It is the
responsibility of the advertiser to make payments to various media
The agency is
contractually obligated to pay the invoice on behalf of the client
6. Monitoring the Buy
The media buyer
tracks the performance of the media plan as it is implemented, as well as
afterward. Poorly performing vehicles must be replaced or costs must be
modified
7. Make-Goods
A policy of
compensating for missed positions or errors in handling the message
presentation. Ensure that the advertiser is compensated appropriately when they
occur
8. Post-campaign Evaluation
Once a campaign
is completed, the planner compares the plan’s expectations and forecasts with
what actually happened. Provides guidance for future media plans
Role of Media Planner:
Media
planners perform the following basic functions:
- Conduct media research
- Determine media objectives and strategies
- Determine the media mix
- Do the actual media buy
5. Media
planners work within advertising agencies or media planning and buying
agencies. They enable their clients to maximise the impact of their advertising
budgets through the use of a range of media.
6. Media
planners combine creative thinking with factual analysis to develop appropriate
strategies to ensure that campaigns reach their target audiences as effectively
as possible.
7. They apply knowledge of media and
communication platforms to identify the most appropriate medium for building
awareness of a clients brand. Some agencies may combine the role of planner
with the role of media buyer. Media planners usually work on several projects
at the same time, often for a number of different clients.
8. Working
with the client and the account team to understand the clients business
objectives and advertising strategy.
Liaising with the creative agency team, clients and consumers to develop
media strategies and campaigns. Making decisions on the best form of media for
specific clients and campaigns. Undertaking research and analyzing data. Identifying target audiences and analysing
their characteristics, behaviour and media habits.
9. Presenting proposals, including cost schedules
to clients.
10. Recommending
the most appropriate types of media to use, as well as the most effective time
spans and locations.
11. Working
with colleagues, other departments and media buyers either in-house or in a
specialist agency.
12. Making
and maintaining good contacts with media owners, such as newspapers, magazines
and websites.
13. Managing client relationships to build respect
and trust in your judgment.
14. Proofreading advertisement content before
release.
15. Maintaining detailed records and evaluating
the effectiveness of campaigns in order to inform future campaigns.
Challenges in
Media Planning:
1. The media landscape continues to evolve at
breakneck speed. This is hardly headline news; agencies are all too aware of
the huge impact that digital technologies and shifting consumer behaviours have
had on their marketing campaigns over the last ten to 15 years.
2. For decades, TV reigned supreme in the advertising world.
Media agencies' main tasks were isolated to planning or buying campaigns across
a narrow selection of channels. Only ten years ago, the first smartphone was
yet to be released, Facebook was unavailable to public users and Twitter was
three months away from launching. Now we have Apple Pay, wearables and a range
of other technologies disrupting the status quo, with consumers now more likely
to see ads on a vertical screen than a horizontal one.
3.
Clearly, media agencies must
adapt quickly if they want to stay relevant in such a rapidly changing
environment. Organisations
not only need people with a wider set of skills than ever before but also
innovative tools that empower employees to perform an increasingly challenging
job.
4.
In a world of big data, marketing automation and
programmatic advertising, agencies need people who possess talents across much
wider areas. Strategists, data
analysts, content producers, developers, econometricians and search technicians
are just some of the varied skill sets on show at high-performing agencies.
5.
However, finding the
right talent is just part of the process and no one is strong in all these
specialisations. Media agencies must therefore take a more strategic approach
across the entire organisation - a task that is often easier said than done.
6. Unfortunately,
the media strategy decision has not become a standardized task. A number of
problems contribute to the difficulty of establishing the plan and reduce its
effectiveness.
7. These
problems include insufficient information, inconsistent terminologies, time
pressures, and difficulty measuring effectiveness.
8. Insufficient Information: While a great
deal of information about markets and the media exist, media planners often
require more than is available. Some data are just not measured, either because
they cannot be or because measuring them would be too expensive. For example,
continuous measures of radio listenership exist, but only periodic listenership
studies are reported due to sample size and cost constraints. There are
problems with some measures of audience size in TV and print.
9. The timing of measurements is also a
problem; some audience measures are taken only at specific times of the year.
This information is then generalized to succeeding months, so future planning
decisions must be made on past data that may not reflect current behaviors.
There are no data on the audiences of new shows, and audience information taken
on existing programs during the summer may not indicate how these programs will
do in the winter because summer viewership is generally much lower. While the
advertisers can review these programs before they air, they do not have actual
audience figures.
10. The lack of information is even more of
a problem for small advertisers, who may not be able to afford to purchase the
information they require. As a result, their decisions are based on limited or
out-of-date data that were provided by the media themselves or no data at all.
11. Inconsistent Terminologies: Problems
arise because the cost bases used by different media often vary and the
standards of measurement used to establish these costs are not always
consistent. For example, print media may present cost data in terms of the cost
to reach a thousand people (cost per thousand, or CPM), broadcast media use the
cost per ratings point (CPRP), and outdoor media use the number of showings.
Audience information that is used as a basis for these costs has also been
collected by different methods. Finally, terms that actually mean something different
(such as reach and coverage) may be used synonymously, adding to the confusion.
12. Time Pressures: It seems that
advertisers are always in a hurry—sometimes because they need to be; other
times because they think they need to be. Actions by a competitor—for example,
the cutting of airfares by one carrier—require immediate
response. But sometimes a false sense of urgency dictates time pressures. In
either situation, media selection decisions may be made without proper planning
and analyses of the markets and/or media.
Media
Brief:
The
media brief is an invaluable resource that answers all of the preliminary
questions that we need in order to research, plan, and present the best
possible media program to achieve our clients’ objectives.
The
media brief can be referred to as a checklist for the media planners to help
them prepare a media plan for a client organization.
A
good media brief should ideally include the following.
1.
Marketing information checklist: This
should reflect the marketing objectives and proposed strategies, product
characteristics, distribution channels, brand category, expenditure level and
ad expenditure of close competitors, ad expenditure on the brand for the
current, previous years and proposed appropriation.
- The objectives: The media brief must indicate the objective or objectives the proposed advertising is trying to accomplish. This must clearly indicate whether the objective is to introduce a new product, increase awareness about the existing brand, reinforce the current position, reposition the current brand, relaunch a declining brand, elicit direct response, improve or enhance the companies reputation or change the peoples attitudes towards the company, brand or product category. It would also indicate the source of business i.e. the target audience profile of the current users, proposed users etc.
- Product category information: It is pertinent for the media planner to have thorough knowledge of the product category and the positioning of the brand being handled. This helps in assessing the strengths and weaknesses of the brand and also helps in setting achievable targets. The information deals with the following broad areas—category definition, competitive brands, market share of various brands, sales volumes of each brand etc—to determine the scheduling pattern.
- Geography/Location: The media brief helps the planner in knowing his media markets. In other words; if the product is available in only the metros, then the planner will restrict his media options to those vehicles which reach the target audience in the metros. In case, however, the product is being launched on an all country basis, the media planner although keeping in view the holistic approach will also keep in mind the consumption pattern in various geographical locations for giving relative weightage to work areas, where the product usage is more. Besides this he will also keep in view the brand development index, sales volume and local market problems and opportunities.
- Seasonality/Timing: Information regarding seasonality of the product is an important consideration for the media planner. In the Indian context where there are extreme climates in different parts of the country at the same time, some products are season specific. The sale of woolen products is always there in the hilly regions especially, Himachal Pradesh and higher reaches of Utter Pradesh, while in southern India, except probably in some parts of Karnataka, woolen products are generally not available. The North experiences severe cold for some months, hence one sees a spurt in advertising Besides, the planner should keep track of the sales patterns, influence factors such as festivals, holidays and the weather, spending considerations, specific sales promotions drive and cl0.ient mandated spending constraint, etc.
- Target Audience: A profile of those who buy the existing product category as also those who buy competitive brands is a very important consideration for the media planner. Buying habits must also include information about buying cycles, purchase points, frequency of purchase, etc. this helps the planner to know the consumer characteristics by category, brand and competitor; demographics—age, income, education, occupation and motivation; special market segmentations like doctors, architects, children, etc. As also media usage data for heavy users, light users of various media vehicles.
Media Audit
Media auditing is the practice of checking that the
media that a client has bought is in the right places, at competitive prices.
Being in the ‘right places’ is critical here: firstly, the audit has to
establish that the media was transmitted, and if that is so, then that its
placements are appropriate for the target audiences, environments and tasks
that the advertising client needed for his brands. To take an extreme example,
there is little point in advertising denture fixative in a kids’ TV programme, however cheaply the airtime in
that programme has been bought.
Why media audit?
Media is typically the single largest line-item in the
marketing budget (the making of the ad itself is typically about a sixth of the
size of the media spend). For some organizations, media space or time (ie
airtime on the TV or radio) is actually the single biggest purchase they make –
ahead of any single raw materials cost. Because the sums involved are large,
and because they can be cost-controlled via a media audit, it is simply good
business practice.
Who uses media auditing?
In some markets, it is easier to answer who doesn’t!
Most major advertisers use media auditors in markets where developed solutions
are possible. Most of the Ad-Age Global
At the basic
level, media audits help marketers to check media rates they’re paying vis a
vis the competition. At a tactical level, media audits can report on the efficacy
of media plans for a given time period. This includes suggesting alternate
media options available to replace / supplement the existing mix.
And finally at a
process level, media audits can track processes deployed at the marketer’s end
and map them vis a vis “best practices” in the industry, minimizing.
Thus, a media
audit can be seen as a periodic review of the constantly evolving media scene
from the advertiser's viewpoint.
Scope of Media Audit
An independent
media audit team acts as independent consultant to brand marketers.
To assess
whether the marketer’s media agency & their offering are aligned to the
business needs of the client. In order to that a media audit team provides the
following services:
· Process Audit
· Planning Audit with New Media Options
· Buying Audit
Thus Media Audit
scrutinizes processes of media buying, scheduling, planning, rates across media
and compares it with a benchmark. Media Audit essentially examines whether
client got what it ordered, and if you they are paying for what they intended.
There is various aspect of Media audit.
a. Financial Audit: This audit essentially examines whether client got what it ordered, and if they are paying for what was intended.
a. Financial Audit: This audit essentially examines whether client got what it ordered, and if they are paying for what was intended.
Another aspect
of financial audit is the payment. Client pays Media Buying Agency (MBA), who
in turn pays the media supplier. Did client money reach them, and did it reach
on the due date? That involves reconciliation between what client paid for and
where it went. Apart from this, there is also a need to check if the authority
is being exercised correctly.
b. 'Return of rebates and discounts': The second type of audit is
what is called 'return of rebates and discounts', which some media owners give
the MBA directly for space or airtime bookings in excess of a certain volume.
So MBAs push
advertisers to spend on a given medium or channel to gain volumes, and thus
rebates. It is called agency volume discount. Advertisers would want that
discount passed back to them, in proportion to their spends.
c. critique: The third
aspect media audit is a critique on the way media planning has been done by the
agency.
Media audit examine if where client advertised was correctly optimized, both in terms of cost and in terms of thinking. A critique can, therefore, go into the kind of media chosen and then make qualitative assessments and comments. The media auditor audits the media plan to examine if the plan was fair and optimum.
Media audit examine if where client advertised was correctly optimized, both in terms of cost and in terms of thinking. A critique can, therefore, go into the kind of media chosen and then make qualitative assessments and comments. The media auditor audits the media plan to examine if the plan was fair and optimum.
NCCS
Grid
New Consumer Classification System (NCCS)India
It was almost three
decades ago that socio-economic classification (SEC) was introduced in the
country to classify consumers into different groups. Over time, flaws were
noticed in the system. That's when the industry decided to revise the consumer
classification system and introduce the New Consumer Classification System
(NCCS), which, in many ways, is better than the SEC.
What is NCCS? NCCS
is used to classify households in India . It was co-developed by
Market Research Society of India (MRSI) and Media Research Users Council (MRUC)
and classifies households on two variables:
i.
education of the chief wage earner and
ii.
The 11 consumer durables owned by the
household from a predefined list.
What are the 11 consumer
durables listed in NCCS? Why only these 11?
The 11 durables (as on
date) are Electricity Connection, Ceiling Fan, Gas Stove, Refrigerator, Two
Wheeler, Washing Machine, Colour TV, Computer, Four-wheeler, Air Conditioner
and Agricultural land (in rural areas). Research showed that it is an adequate
classification. This list will be relooked after a certain period of time.
The 11 shortlisted durables were
identified as the best discriminators of the ‘purchasing power’ of a household
after evaluating the series of variables,
MODULE II
Sources
of Media Research
1.
Neilson Clear
decision (NCD for Print): NCD enables advertising
agencies, media companies and marketers to quickly and easily access data to
pinpoint markets, channels and target groups. Clear Decisions goal is to
help clients more accurately identify and profile key audiences in order to
make better media decisions and generate better return-on-investment results.
Clear Decisions offers a simple, flexible interface design that provides the
quickest path to the most frequently used analyses, requiring far fewer steps
to extract insights. Clear Decisions also provides flexible report
formats, custom templates, and hundreds of presentation ready charts. Along
with the data analysis tool used by advertising agencies, publishers,
broadcasters, marketers, and other media companies.
2.
Broadcast
Audience Research Council (BARC): BARC
(Broadcast Audience Research Council) India
is an industry body, to design, commission, supervise and own an accurate,
reliable and timely television audience measurement system for India
BARC measures viewership habits of India India
India
a.
Time shifted viewing: Metrics of programs that are recorded
and viewed later. It observe VOSDAL+7,
i.e. Viewed on Same Day as Live + 7 days after.
b.
Simulcast viewing: Details of programs broadcast
simultaneously on more than one channels – viewership of every individual
channel can be reliably tracked.
c.
Viewing as per the New SEC (NCCS): Details as per the new classification
based on the education of Chief Wage Earner of the family and the number of
durables owned by the home from a predefined list of 11 durables.
BAR-O-meters: The BAR-O-meters BARC place in their
metered homes are compact and use the latest technology. They have a
3rd-generation OLED display (being more easily visible, this facilitates
interaction between the viewer and the bar-o-meter) and an embedded SIM to
automatically upload viewing data (tie-ups with leading GSM operators ensure
wide coverage). As they are indigenously manufactured, they cost almost
one-sixth the price of imported meters, which lets us deploy a lot more of them
to measure viewership.
3.
Audit Bureau of Circulations (ABC): Dictionary of Marketing Terms for: Audit
Bureau of Circulations (ABC), independent nonprofit auditing organization
formed in 1914 whose membership is composed of advertisers, advertising
agencies, and publishers of newspapers, magazines, and web sites that sell
advertising space. Its purpose is to audit and validate print media circulation
claims and Internet traffic figures for the benefit of its members. Relied upon
as a principal information source by media planners, the bureau publishes annual
Audit Reports that detail the findings of its auditors as well as semiannual
Publisher’s Statements.
The Bureau issues ABC certificates every six months to
those publisher members whose circulation figures confirm to the rules and
regulations as set out by it. Circulation figures that are checked and
certified by an independent body are an important tool and critical to the
advertising business community.
4.
Research and analysis of Media (RAM): RAM is an international media research
company working with online surveys and analysis of advertising and editorial
content for media companies, media consultants and advertisers worldwide. With
hundreds of media clients and about 1000 publications in 18 countries, RAM
provides the industry with cutting edge metrics of how ads, articles and other
media communication are consumed and understood – and what kind of impact it
has. RAM’s vision is to provide easy to use advanced IT solutions and be the
world’s leading supplier of knowledge-based and cost efficient analysis
services for media companies. With probably the largest reference database in
the world for media, RAM compare measured results against standard values in
order to evaluate the results achieved. In a period of over 10 years, RAM has
carried out over 50 million interviews of ads and editorial content in order to
measure the effectiveness of the communication and the database is continuously
growing. RAM was founded in 2001 with its headquarters in Stockholm , Sweden United
States , Research and Analysis of Media of Americas Inc.
and subsidiaries also in Norway
and Finland London for
the UK & Ireland and most recently in Germany
5.
ComScore Digital: ComScore is a global media measurement and analytics company providing marketing data and analytics to many of
the world's largest enterprises, media and advertising agencies, and
publishers. With the introduction of Unified Digital Measurement (UDM) in May
2009, comScore implemented a solution to digital audience measurement that
organically blended both panel and census-based measurement approaches into a
single unified methodology. comScore has developed this proprietary methodology
to calculate audience reach in a manner not affected by variables such as
cookie deletion and cookie blocking/rejection to help reconcile longstanding
differences between the two measurement approaches.
ComScore Digital is
a competitive intelligence tool that allows agencies, advertisers & publishers
to quantify and evaluate the overall display advertising landscape.
What advertising
insights does Ad Metrix offer?
·
Sophisticated
advertising metrics for over 10,000 sites and 60,000 advertisers/products
·
2 years of advertising
data in monthly, quarterly, annual or custom time ranges
·
Millions of
advertising creative with advanced analysis and downloading capabilities
How does Ad
Metrix present its advertising insights?
·
11 Quick Reports,
including sales prospects, new advertisers, ad clutter, etc.
·
Advanced reports, such
as advertising by ad type/format, publisher demographics, etc.
·
Comprehensive
advertiser/product dictionary and comScore Media Metrix integration
MODULE
III
Media
planning process:
These steps
are essentially the same as those presented in the decision sequence model
presented in Chapter 1, except now they are involved directly with media
decisions. These steps include: market analysis, establishment of media
objectives, media strategy development and implementation, and evaluation and
follow-up.
Media planning is the process of
designing a course of action that shows how advertising space and time will be
used to contribute to the achievement of the marketing and advertising
objectives.
The media plan is created by the
media planner from information about the market and prospective customers.
Media decisions are primarily based on the creative strategy established for
the campaign and the characteristics of the target market. Through market
research, facts about the target market are accumulated and generalized into a
consumer profile. This along with the basic copy strategy and copy requirements
is analysed by the media planner, taking into account the size of the
advertising budget.
This analysis is followed by
matching the audience characteristics of various media with the consumer
profile and by evaluating the adaptability of the physical format of the media
to copy requirements. Finally, through the exercise of judgment concerning
dimensions of coverage, reach, frequency, continuity, ad size... the media plan
emerges.
With all the advertising decision
making the ultimate responsibility for choosing media rests with the
advertising/ brand manager.
The Media Planning Steps:
The process of
developing the media plan involves a series of steps. These steps includes five
steps as under:
There are 7 steps in the Media planning process:
- Situation analysis Market strategy Plan
- Media objectives
- Media strategies
- Selecting Broad Media Classes
- Selecting Media Within Class
- Budget, Media Buying and Media Vehicle selection
- Evaluation
Step one: Market analysis and Target market analysis:
The goal of a
market analysis is to determine the attractiveness of a market and to
understand its evolving opportunities and threats as they relate to the
strengths and weaknesses of the firm. Detailed situation analysis is done find
out the following information:
David A. Aaker
outlined the following dimensions of a market analysis:
•
1. Market size (current and future)
2. Market growth rate
3. Market profitability
4. Industry cost structure
5. Distribution channels
6. Market trends
7. Key success factors
8. Market Size
2. Market growth rate
3. Market profitability
4. Industry cost structure
5. Distribution channels
6. Market trends
7. Key success factors
8. Market Size
Step 2: Setting media objectives:
Media Objective:
Media
objective Outline what the media plan is expected to accomplish. Because the
media objectives tell what is to be accomplished, they do not mention specific
media selection yet. Media selection is at the strategy level; objectives
deal only with what is to be done. E.g. Use media that will provide broad
national coverage to support national sales and distribution.
Basic Goals for
Media Objectives
1.
Connection: the right media with the intended
target audience (challenge is there is a lack of reliable research on the new
media and sometimes there isn’t a perfect vehicle to reach the target
audience).
2.
Reach and Geography:
which areas do you want to cover, national, regional, local or a
combination?
3.
Timing:
tries to answer the question, “When is the best time to place a message
before the target audience?” Timing decisions relate to factors such as
seasonality, holidays, days of the week, and time of day.
4.
Frequency and Duration: How long to advertise? The length
depends on a number of factors: the advertising budget; target audience use
cycles (the time between purchase and repurchase); and competitors advertising
campaigns. The object is to find media where the advertiser’s voice is not
drowned out by competitor’s voices - share of voice.
5.
Size, length or position of
ad: what has greater stopping power gets the
message across the best and is affordable for the duration we need?
There are broadly five elements in media objective
statements:
a. Target
Audience
b. Reach
c. Frequency
d. Message
Weight
e. Message
Distribution
a. Target Audience: who to reach
Which
is the audience for our product? This happens to be the most important consideration
in the media decisions. The media
planner first examines their market plans and advertising plans. These provide
them details about the audience in terms of age, religion, sex, education –
these are demographic characteristics.
It can be
describe in terms of their income and occupation. Audience can also be
described in psychographics terms – activities, interest, and opinions forming
a life style, personality traits, and brand preferences. After having a
complete picture of our target audience, media planner undertakes the study of
the media’s readership in terms of demographic, economic and psychographics
terms.
Agencies
conduct their own media research. Even media itself provides a demographic
profile of their readers. There are readership surveys to guide us. Media
Planner has to select those media vehicles whose demographic profile matches
the target audience of product. First they target product to a segment of the
market. Then they have to select that media vehicle which reaches this segment.
b.
Reach
Reach
indicates a percentage of target audience who is exposed at least once in a
given period to a particular media vehicle. It does not matter how many times
they actually see or hear the ad message.
Def: The net unduplicated number
of people that the plan covers at least once in the defined period
Thus Reach can be defined as the total number of different people
(or households) exposed to the advertising schedule during a specified time
Reach can be expressed as either a percentage or as a raw number.
e.g. reach at least 70% of target audiences during
time that computer buying is at its highest.
Effective
reach is an extension of target marketing and is defined as the percentage
of an audience that is exposed to a certain number of messages or has achieved
a specific level of awareness. The Effective reach describes
the quality of the exposure, measuring the number or percent-age of the
audience who receive enough exposures to truly receive the message. Some researchers maintain three OTSs over a
four-week period.
Determinants of Effective Reach
1.
More prospective customers are reached
by a media schedule using multiple media rather than a single medium.
a.
To determine effective reach, the
media planner must think about the core audience, second tier prospects, third
tier prospects, etc.
b.
Another
influencing factor is the number and diversity of media vehicles used
c.
Reach
can be increased by diversifying the day parts used to advertise.
c.
Frequency
Frequency refers to the number of times the receiver is exposed to the
media vehicle. Also Frequency refers to the number of exposures to the same
message that each household supposedly receives. Frequency is important because
repetition is the key to memory.
Average frequency: gives the average number of times people or
households in our target audience are exposed to a media vehicle.
Average frequency means that the
average household is exposed to the message (x.) times. Since frequency may differ for
different set of households the average frequency is
Average frequency = total
exposure for all households
Reach
EFFECTIVE FREQUENCY: Is
defined as the minimum number of times a communication must be exposed to a
viewer/potential consumer to positively impact on that consumer’s buyer /
purchasing behaviour. Thus Effective Frequency is the average number of times a
person must see or hear a message before it becomes effective (between a
minimum level that achieves awareness and a maximum level that becomes
overexposure that leads to “wear out” and irritates customers).
When the concept
was developed by Michael Naples of Lever, it was interpreted as meaning that
the effective frequency for any product communication was 3 times.
- 1st time: Startle or provide the message that this communication has something to say
- 2nd time: Recognise communication
- 3rd time: Comfort, familiarity & acceptance
Average Frequency = Total Number of Exposures
Total
Audience Reach
If
1500 people in the target audience tune in an FM radio programme 3 times during
a four week period, and 1500 people tune in 6 times, the calculation would be
Total Number of exposures = (1500 x 3) + (1500 x 6)
= 13,500
Total audience
reach = 1500 + 1500
= 3000
Average
frequency = 13500 = 4.5
3000
In
our example, we reach 3000 people 4 ½ times on an average. It does not
necessarily mean that everyone has 4.5 exposures. It is just an average.
Generally, a single exposure may not work either in creating an awareness or
provoking someone to buy.
Continuity: refers to the
duration of an advertising message or campaign over a given period of
time. While frequency is important to
“create” memory, continuity is important to “sustain” it.
High frequency is required:
1.
When the message is not easy to remember
2.
When the direct order from people is desired as a
result of a given advertisement
3.
When competitor is using higher frequency to reach the
same segment of the market .
4.
When product or brand differentiation is low from that
of competitor
5.
When a reaction is desired within a limited time
period
Conventional
wisdom considers effective frequency to be three or more opportunities-to-see
(OTS) over a four-week period, but no magic number works for every commercial
and every product. The concepts of
effective reach and frequency are controversial, but virtually all agencies use
them. Most studies of the advertising
response curve indicate that incremental response to advertising actually
diminishes — rather than builds — with repeated exposures. The optimal frequency concept moves the focus
of media planning from exposure effectiveness to effective exposures per
dollar.
d.
Message Weight:
Message weight: media
planners often define media objective by the schedule's message weight, the
total size of the audience for a set of ads or an entire campaign. Message weight can be expressed as:
1.
Advertising
impression or OTS: possible exposure of the advertising message to one
audience member, sometimes called an opportunity to see (OTS). OTS is measuring the strength of the medium/its efficiency
at reaching and conveying a message to consumers.
The number of
times a specific advertisement is delivered to a potential customer.
The term,
"Opportunities to see", is used to clarify that all reported
audiences are not the same. In magazines, a reader has recognized the magazine
and some editorial to prove that they read the magazine. In local TV, viewers
watched five minutes out of the quarter-hour in which the ad ran -- these are
not necessarily comparable measures of audience. Media planners/analysts will
often then adjust the OTC by some noticing adjustment: what percentage of each
vehicle is actually likely to notice the ad. OTS clarifies that no further
adjustment has been made to the gross audience estimates, that it is the number
of people who have read the magazine not the number who read a particular ad.
An OTC is
generated every time someone picks up a copy, and that can be more than 10
times the circulation.
2.
Gross
Impressions: the total number of potential exposures (audience size by the
number of times the ad message is used during a period). As gross impressions
are often expressed in millions and are awkward to handle, media planners
prefer to use percentages — or a rating, for example, a rating of TV households
is the percentage of homes exposed to an ad medium. A rating of 20=20% of the households with TV
sets; television households, or (TVHH).
Each exposure is counted as one impression.
E.g.
suppose an advertiser puts advertisements on a programme of a TV channel viewed
five times by 6000 people in the target audience and seven times by 6000 people
in a four week period. Also suppose during the same four week period, the ad is
put another programme of a second TV channel viewed 3 times by 3000 people in
the target audience, the gross impressions would be:
Gross
impression = (6000 x 5) + (6000 x 7) + (3000 x 3) = 81000
3.
Gross
Rating Points (GRPs) and Gross Viewership per thousand (GVT):
In advertising, a gross rating point (GRP) or Gross Viewership in thousand (GVT) is a measure of the size of an advertising campaign by a
specific medium or schedule. It does not measure the size of the audience
reached.
The total weight of a specific media schedule,
computed by multiplying the reach, expressed as a percentage of the population,
by the average frequency. GRP or GVT if the sum of all rating points delivered
by the media vehicles carrying an advertisement or campaign.
Thus Gross
Rating Points (GRPs) equal Reach times Frequency, expressed as a percentage.
Whereas Gross Viewership in thousand (GVT) equal
Reach times Frequency, expressed as per thousand.
GRPs or GVTs measure
the total of all Rating Points during an advertising campaign. A Rating Point
is one percent of the potential audience. For example, if 25 percent of all
targeted televisions are tuned to a show that contains your commercial, you
have 25 Rating Points. Media planners calculate total Reach, average Frequency,
and GRPs as part of the planning of a campaign. The goal is to obtain the
highest possible GRPs at the lowest possible cost, while remaining focused on
the target market. After the campaign, you can calculate actual Reach x
Frequency = GRPs to produce a permanent record.
The Simple Formula to Calculate GRPs
Gross Rating
Points (GRPs) = Reach % x Frequency
Print example
50 reach X 5 insertions = 250 GRPs
Broadcast example
6 (rating) X 5 (frequency) = 30 GRPs
The Simple Formula to Calculate
GVT
GVT = Reach (000s) x Frequency
5. Message Distribution:
Message-distribution
objectives define where, when, and how often advertising should appear. To
answer these questions, a media planner must understand the following:
- Audience size – simply the number of people in the medium's audience. In print media, for example, Audit Bureau of Circulation actually counts and verifies the number of subscribers (circulation) and multiplies by the number of readers per copy (RPC) to determine total audience.
- Recency planning is based on the belief that most advertising works by influencing the brand choice of consumers who are actually ready to buy. This would suggest that continuity is the most important objective.
Recency theory refers to the
belief that advertisements and promotions are most effective when they air
immediately prior to the time of decision, and that the influence of ad
exposure diminishes with time. Exposure to fast food ads, for example, is
optimal when it occurs just before dinnertime, and exposure to movie ads is
best just prior to the movie release.
Step
3: Media Strategy
The
media strategy describes how the advertiser will achieve the stated media
objectives: which media will be used, where, how often, and when. Advertisers develop media strategies by
blending the elements of the media mix. When formulated correctly, it enables
an advertiser to rise above the clutter of ads, and stand out in the
competition.
Media
strategy expects media planners to be creative in using the media. The use of
the media should complement and supplement each other. The ad should be
consistent with the editorial environment of the media. The placement should be
strategic. The media’s creative potential is fully used.
The ad should provoke readers to look at it
more than once. It should be engaging enough, say incorporation of a crossword
puzzle in the copy of the ad. We can use non-traditional media like a Tamasha
show or a magic-show. Media can be used to build credibility.
Factors Influencing Media Strategy
a)
Target Market
Profile
b)
Nature of the
Message
c)
Geographic
Market Priorities
d)
Timing of
Advertising
e)
Reach/Frequency/Continuity
Media
strategy has to cover decisions taken in the areas of:
a.
Geographic selectivity
b.
Cost efficiency of the
selected media.
c.
Media selection
d.
Scheduling of the ads
a. Geographic
Selectivity:
Media
strategy is based upon market coverage. If the product is marketed nationally, then
media planner will select all-India newspapers and magazines.
However,
if the market is limited to a particular region, then media planner selects
vernacular media popular in that region. In this way, we do not waste our
resources by advertising our product in the regions in which it is not
available.
Media
planners have to ensure how strong a product is in a particular geographical
region and advertise more in high potential areas.
Marketers
may measure the sales strength in particular market by making use of two ratios
– the brand development index and the category development index.
Brand
Development Index: indicates the sales potential of a
particular brand in a specific market area.
To
determine BDI, a market’s brand sales percentage is divided by the total
population percentage of that market multiplied by 100.
The brand
development index (BDI) measures the sales strength of a brand in a particular
area.
BDI = Percentage of brand’s total all – India
Percentage
of total Indian population in the market
This
index enables a media planner to allocate the media budget by setting his
priorities.
Category
Development Index: indicates the sales potential of an
entire product category.
To
determine CDI, a market’s category sales percentage is divided by the total
population percentage of that market and multiplied by 100.
It
measures the sales potential of product category. Thus it takes into account
the potential of all competitors selling the same category.
CDI = Percentage
of product category’s total all India
Percentage
of total Indian Population in the market
These
numbers over 100 are considered good but comparing the BDI to the CDI provides
the most insight.
Brand
and Category Analysis
b. Cost Efficiency of Media Vehicles:
Finally, media planners analyze the cost
efficiency of each medium. A common term
used in media planning and buying is:
- Cost per thousand (CPM),
which is based on the medium's total audience (ad cost divided by the
number of thousands of people in the audience). However, media planners
are more interested in cost efficiency, which relates to the cost of
exposing the message to the target audience rather than to the total
circulation (percentage of total audience held by the target market times
the subscriber base = the cost per thousand to reach the targeted market).
The media planner must evaluate each medium’s advantages and disadvantages,
using all the criteria to determine:
- How much of each medium’s
audience matches the target audience.
- How each medium satisfies the
campaign’s objectives and strategy.
- How well each medium offers
attention, exposure, and motivation.
d. The
media planner may want to calculate the cost per rating point (CPRP) or cost
per point (CCP) of different broadcast programs. This is done the same way as cost per
thousand, except you divide the cost by the rating points instead of the gross
impressions.
Media Scheduling
Media
scheduling decisions are the decisions about the timing, continuity and size of
the ads. We have to see when to advertise, for how long, and for what time
period. We have to see the size and placement of our ad.
Timing:
Advertising message can be timed in four ways depending upon our objectives
I.
To time the message in such a way that
the customers are most interested in buying that type of a product, e.g.,
fridges in summer, soft drinks in summer, woolens in winter, gift items during
Deepavali.
II.
To time the message in such a
way that it stimulates demand in the lean period, e.g., ice creams in winter,
holiday resorts in monsoons.
III.
To time in such a way that it by-pass
competitive campaigns, e.g., Pepsi commercials are to be aired when there are
no Coke commercials.
IV.
To time in such a way that the message
is carried by the media when the audience is receptive to it, e.g., household
products in the afternoon slot of TV when housewives watch TV.
The
importance of time element must be understood in the purchase behavior of the
customer by doing suitable research.
Most Organizations Use One of These
Three Scheduling Strategies
Three Scheduling
Methods
1. Continuity: When an ad is
run in the media for a long period without any gap, we are using continuity
scheduling. It is used for those products, which are in demand round the
years. The ads are in the form of reminder.
2. Alternative
to continuity is fighting where advertising runs for some period and then
there is a gap, and again it runs for some period. The interval between two
advertising runs comes after a flight. The message can be schedule to
correspond to peak purchasing periods or at a time when the audience is most
receptive.
When
we have a media mix alternative flights are adjusted in such a way in different
media that overall continuity is achieved.
3. Pulsing is another option.
It
represents a consistent low-level advertising activity, and addition of pulse
to make a high-level of advertising during certain periods. A pulse is a period of intense advertising
activity. The pulses can occur at the start while launching a new product.
There can a promotional pulse of one shot, e.g., financial advertising of a
company’s issue. Bursting is a
technique for scheduling TV ads. Here the commercial is repeated on the same
channel time and again to reinforce the message for a short period.
Write short note on timing
and duration as Media strategies:
Timing and Duration as Media
strategies
Timing:
•
a. Steady
schedule or continuous
•
b. Flight
•
c. Pulse
Duration:
•
a. Reach
•
b.
Frequency
•
c. GRP
•
d. CPRP
•
e. CPT
•
f. BDI
•
g. CDI
c. Selecting the Media
An
advertiser can choose a single medium or a mix of media to take its message to
the target audience. Media mix – a combination of several media is used when it
is not possible to reach the target audience by one single medium adequately
and with a good impact.
Marketers
segment a market, and a suitable media can be chosen to match a specific
segment. Creative execution becomes varied when a media mix is used. In a media
mix, one medium can be used to promote a product and the other as reminder,
thus reinforcing each other. A combination must be synergistic, where the sum
total of effects is greater than the sum of individual medium’s effect.
Each
media has a particular readership or viewer ship. We have to understand the
size and the characteristics of the readership or viewer ship.
We
have to match the target audience of our product to the demographic
characteristics of the readers/viewers of the media as far as possible. Media
research helps us in this matching the product and the media.
Each
medium has different alternation value. But attention given to a medium
also depends upon the message and its execution. Each medium has a motivation
value whereby it stimulates readers to respond. Each medium has its own editorial
environment provided by its contents which surround the ad
This
environment should be compatible with the product and its benefits. The
environment should also be consistent with the mood of the desired audience. A
commercial of an air-line is not consistent with the news of an air-crash.
The
audience mood is not conducive to the reception of the message. Several media
provide an environment of respectability. We have to consider the placement of
the ad and the editorial material and keep on changing the same if necessary.
Our
competitors also via with us for the attention of the same target audience. We
must understand their media strategy, budgets and mixes. It helps us in setting
our strategy correctly. We can confront them head on. We can change the media
mix. We can bypass a media selected by them. We can change our geographic
allocation.
A Share of
Voice is a brand's or group of brands' advertising
weight expressed as a percentage of a defined total market or market
segment in a given time period. The weight is usually defined in terms of
expenditure, ratings, pages, poster sites etc.
A
competitor’s share of voice can be studied. It is given by:
Share of voice = Brand Expenditure
Product Category expenditure
We
have to decide whether we can match a competitor’s share of voice or exceed it.
We can use another medium in which there is a large share of voice for us.
We
should not forget that we never buy media. We only buy audiences. The client
pays the agency to buy the audience attention to his brand.
Share of Mind: degree to
which a particular brand is associated with the general product
category. Often a consumer will ask for a product by the specific brand name
rather than the general name- for example, a person wanting facial tissues may
ask for Kleenex. When this happens, the consumer is making
a brand association.
Size and Placement
The
decisions about the size of the ad and its placement are also important in
scheduling. There are several size options in print media right from a small
portion of the page to a full page to several pages.
In electronic media, we have options to select
commercials for various lengths of time, 10-seconds, 30-seconds or 60-seconds.
The size decision is based upon our objectives, the creative execution
necessary, the budget and the reach and frequency decisions.
A
full-page ad does not cost twice the half-page ads. It is less than that. By
sacrificing the size of the ad, we can save costs but we miss on attention. But
we can buy more ads of lesser space if we sacrifice size, and thus a higher
frequency objective may be satisfied by reducing the size. The small ads can be
made more effective by having suitable layouts and copy.
Placement
of the ads in the medium also affects the impact of the ad. Covers are the
preferred medium for their impact in magazines.
The
placement near important editorial matter is also preferred. Media charge
slightly higher if we specify a particular position and so we must do a proper
cost-benefit analysis.
d. Cost Efficiency of selected Media:
The
cost of advertising in various media must be analysed properly. We have to
compare the cost of different media. It helps us select the best media to
optimize our objectives.
Cost
per thousand (CPM) is one yard-stick to compare the costs of
different media. It is the cost of reaching a thousand persons.
The formula for CPM is:
Cost
per Thousand = Cost of media unit
x 1000
Gross
Impression
To
illustrate, if we take a full page ad at a price of Rs. 50000 in a magazine to
reach one lac people, our CPM would be
Cost per Thousand = 50000 x
1000
100000
= Rs. 500
CPRP: Cost per rating point
The
cost of reaching one percent of the target population. CPP is calculated by
dividing the cost of the schedule by the gross rating points. National and
regional advertising buyers frequently use this cost efficiency measure, since
it can be applied across all media.
The
cost per rating point is used to estimate the cost for TV advertising on
several shows.
Cost
per rating point = Commercial time
cost
Percentage of audience.
Step
4: Selecting Broad Media classes
Media plan
evaluation is a crucial final step to check whether the planned media.
programme conforms to the objectives as set for it. .
Selecting broad media classes
Purpose: To determine
which broad class of media best fulfils the criteria. Involves comparison and
selection of broad media classes such as newspapers, magazines, radio,
television, and others. The analysis is called intermediate comparisons.
Audience size is one of the major factors used in comparing the various media
classes.
Selecting media within classes:
Purpose: To
compare and select the best media within broad classes, again using
predetermined criteria. Involves making decisions about the following:
1. If
magazines were recommended, then which magazines?
2. If
television was recommended, then
i.
Broadcast or cable television?
ii.
Network or spot television?
3. If
radio or newspapers were recommended, then
a.
Which markets shall be used?
b.
If network, which program (s)
c.
If spot, which markets?
d.
What criteria shall buyers use in making
purchases of local media?
What criteria shall buyers use in making
purchases of local media?
a.
Media use decisions-
Broadcast:
b.
What kind of
sponsorship (sole, shared, participating, or other)?
c.
What levels of reach
and frequency will be required?
d.
Scheduling: On which
days and months are commercials to appear?
e.
Placement of spots: In
programs or between programs?
Media use decisions-Print:
a.
Number of ads to appear
and on which days and months.
b.
Placements of ads: Any
preferred position within media?
c.
Special treatment:
Gatefolds, bleeds, color, etc.
d.
Desired reach or
frequency levels/
Media use decisions-Other media
1. Billboards
i.
Location of markets and
plan of distribution
ii.
Kinds of outdoor boards
to be used.
2.
Direct mail or other
media: Decisions peculiar to those media.
The Media Mix
Media
mix means the advertising strategy encompasses the use of more than one type of
advertising media to get its message across the target audience. A combination
of media types is known as the media mix. No advertiser can rely only on one
medium to reach his audience.
Even
a small advertiser having a small media budget has thousands of media from
which to choose. A typical media mix for consumer products, such as a soft
drink, will include television, outdoor, POP and even the print media. this
combination plays a crucial role in reaching the maximum number of consumers at
the minimum cost.
Once
a media plan is ready, the decision is to be made about the media mix.
Selecting the media mix involves several considerations.
Factors
considered while selecting a media mix
The
media plan which is derived from the marketing and advertising plan has set a
broad framework for media decisions. The execution of this plan depends upon
the following considerations:
1.
Budget:
A choice of media will depend to a large extent upon the size of the
advertising budget. Certain media types may be too expensive for the funds
available. For example: the cost of national transmission over Doordarshan may
be too high for an advertiser. The cost of maintaining a neon sign cannot be
afforded by small budget advertisers.
2. Competitor’s
Strategy:
Media decisions of one advertiser are influenced by the competitor’s strategy.
Some years ago only large advertisers used television in India
3. Frequency
v/s Reach. As explained in the earlier section,
frequency and reach are important considerations in the media plan. Frequency
refers to the number of times the advertiser reaches the same person, while
reach refers to the total number of people covered. The greater the frequency
with which you reach the same person through media selection, smaller the reach
will be and vice –versa (assuming a limitation in the size of the budget). An
advertiser will need to know the quantitative data about media audience in
order to make more accurate frequency and reach decisions.
For
example: If an advertiser uses radio, he may be able to afford to broadcast the
advertising jingle every 30 minutes, and this increases the frequency of the
radio listeners exposure to the advertised message. But the reach of this
message is limited and will not cover those who are not listening to the radio.
With the same budget, the advertiser can buy less radio time, place a few insertions
in the print media and buy some television time. This combination will reduce
the frequency at which an individual consumer is exposed to the advertised
message but will increase its reach. Thus, there is always a trade-off between
these two considerations.
4.
Increasing distributors’ support: Although consumer media are
selected primarily to affect the consumer, the impact of media upon
distribution channels, that is the middlemen, is also important. Effective use
of advertising media lends support to the middlemen’s selling efforts.
Middlemen are more likely to support a brand that has greater exposure in the
local media. Retailer sometimes runs their own tie-in advertising along with
the producer’s advertisement, in the same media.
5.
Continuity: A decision must be made about how long an
advertisement campaign should be run on one media. There is a cumulative
advantage from continuity, as a greater audience will be reached in Terms of
both frequency and coverage by advertisements continually placed in one medium.
The same medium will have some new audience. For products such as toothpaste,
soaps, that are frequently re-purchased, continuity is a more important
consideration. But products that are purchased infrequently may find it more
suitable to use a variety of media in order to reach varied audience. For
example: the ads of Sintex water tanks.
6. Flexibility: The
ability of the media to adapt to changing and specific needs of advertisers is
flexibility. Certain media allows such flexibility with respect to the
advertised message, the geographical coverage and the ad budget For example:
the times of India Delhi , it
may use the Delhi
7. Franchise
Position: Advertisers
using a particular medium over a period of time may enjoy special franchise
positions. Special page positions in magazines and newspapers may be reserved
for them. For example: The back page of Business India may be booked by Bajaj
Auto while the inside back cover of India Today may be booked on a long term
basis by Wills Filter Cigarettes.
8. Standard
of Acceptance and Codes of Ethics: Most media vehicles have codes
of ethics that set the standards of acceptance.
9. Cost
per Thousand: This is the most important consideration while
making media decisions. Although the cost is considered while fixing the
budget, the concept of cost per thousand is the accepted norm for measuring the
media effectiveness. The formula for computing cost per thousand is equal to
Price of the medium to the advertiser/Delivered audience (in thousands).
This
formula has certain limitations. The delivered audience may not be the same as
the prospective customers. Adjustments to arrive at the prospective customers
are possible but this is not always easy to compute. Secondly, there is no data
available to find out whether the delivered audience has actually seen or heard
the advertised message.
10.
Creative considerations: Creative considerations such as the
quality of reproduction, the colour effect, special effects, have to be
considered. The medium must be appropriate for the ad message. For example: The
ads for ice cream would be reproduced better in colour and therefore black and
white newsprint is not appropriate. Media decisions have to be made in
consultation with the creative team that has actually produced the ad. Within
the medium selected, decisions related to unit buying, is also influenced by
the creative team. There is a constant tug-of-war between the creative team and
the media team . the creative team wants larger space, more TV and radio time
and superior quality of POP material, while the media team along with the
finance department of the client looks for
economy and maximizing the effect of every rupee spent on the media.
11.
The medium and Target Consumer Match: The media mix
has to reach the target consumer. It the advertiser wants to reach men between
25 and 55 who are professional, the Economic Times will be obviously a more
appropriate choice than Femina. But sometimes matching consumer profiles with
media characteristics becomes a lot more difficult. For example: Media planners
will find it difficult to decide which kind of households can be reached by the
Hindi feature film TV slot v/s the 9 O’clock serial slot. A thorough analysis
of the target market will help in making this match and will reduce wastage of
media expenditure.
12. Language: In India
13. Prestige
of media:
It is said that the prestige of the advertising medium is transferred to the
advertised product. When an ad appears in times of India
14. The
Editorial Environmental:
Since the broadcast media , that is the radio and TV media, are government controlled, they are not perceived to have
independent editorial policies. But the print media enjoys the freedom of press
and each publication has its individual editorial philosophy. The editorial
environment in turn influences reader profile. Advertisers would like to place
their ads in publication having an appropriate editorial environment. For
instance, the ads of political parties have appeared in various newspapers
while the ads promoting brand name of liquor tend to use men’s magazines as their
vehicles.
15.
Nature of the product or services and nature of the market to be covered: Some
products have niche markets and a special direct advertising medium will be
suitable for them. For example: Detergents for washing machines can be used
only by people having washing machines, but daily consumer products have a
wider market and hence may use mass media.
The
geographical extent of the market has also to be considered. Is the market
local, national or international for example: The ads of Air India
16.
Availability of Media Time and Space: Media time and
space have to be booked in advance. When an announcement is to be made
immediately, the advertiser has little choice but use the available media time
and space. Most popular media slots have to be booked months in advance. Media
buying has become an important component of media planning due to the cost
constraints and increase in competitive activity.
Step
VI: Budget and Media Buying
Budget
Allocations: classifies spending my
medium, region, and time of year
Media Buying
a.
Occurs once plan
is approved
b.
Buyers work with
media representatives to negotiate final prices for the various activities
Competitive Strategies and Budget Considerations: Advertisers always consider what competitors are doing,
particularly those that have larger advertising budgets. This will affect the media, mechanics, and
methodology elements of the media mix.
It sometimes makes sense to use media similar to the competition's if
the target audiences are the same or if competitors are not using their media
effectively. Media planner should
analyze the company’s “share of voice” in the market place.
Share of voice (SOV): is
the total volume of advertising a brand own in a market. SOV is defined as an individual brand’s percent
of the total spending for the category for a specific time period. Percentage of advertising for one brand in a
particular product category as compared to other brands in the same category.
If five different brand names advertise in one product category and the
percentage of advertising for one of them is 60% of the total volume of
advertising in that product category, that brand will have the greatest share
of voice (in that product category).
Share of Market: SOM
is the same brand’s percent of total sales for the new category for the same
time period.
Share
of Voice vs. Share of Market:
Most mature markets
are in a state of equilibrium where SOV and SOM do not generally change in a
major way. An individual brand is in a
relative state of equilibrium when its SOV approximates its SOM. Equilibrium exists with the competition when
the primary market share leaders stay within ten percentage points of each
other’s SOV.
The market leader’s SOV can be less than its SOM. However, when SOV falls disproportionately
low, the marketer is vulnerable to challenges. Decreases in SOM among
established brands (those with at least 13% SOM) start to occur when a brand’s
SOV consistently drops below its SOM by 4% or more. Smart marketers investment
spend (SOV slightly exceeds SOM) to some degree to deter attack. To show major gains in SOM, you must create
or exploit disequilibrium …using advertising spending as an offensive weapon,
based upon an analysis of the competitive situation.
To show increases in
SOM, SOV must be double that of the leader for approximately 18 months and
should equal approximately 25% of the total spending for the category. To gain SOM, it is best to target markets or
products where competition is under spending (not protecting their SOM.) Marketers must resist the lure of cutting ad
spending to generate short-term profits.
Cutting spending too much means you lose the competitive war.
Media buyers
work in advertising and media agencies negotiating, purchasing and monitoring
media space on behalf of their clients. They aim to reach the highest number of
people in the target audience at the lowest possible cost.
Chosen media may
include newspapers, magazines, posters, internet, television and cinema. Media
buyers work across a range of media or specialise in one particular area. They
often work on more than one client account at a time.
In some full
service agencies, offering both creative and media, the role of media buyer is
often combined with media planner.
Typical
work activities
Media buyers
work closely with media planners. Media buying and planning activities may be
combined in one role, particularly at the early stages of a career.
Typical work activities of Media buyers
include:
- working on a range of client accounts at the same time, often juggling various projects and deadlines;
- identifying the target audience for a particular media campaign and deciding how best to communicate to that audience;
- keeping up to date with industry research figures, including distribution figures (newspapers and magazines) and audience figures (TV and radio);
- monitoring buying strategies;
- liaising and building relationships with clients and media sales companies;
- negotiating with media sales companies to obtain the best rates and most appropriate media spaces in online, broadcast and print advertising;
- liaising with media sales people to adjust media schedules in response to audience figures;
- booking individual media spots, pages, posters, internet banners, broadcast adverts, etc.;
- ensuring that the adverts run accurately so the desired media message is seen and heard by consumers;
- client reporting and budget management, including preparing costings for clients and producing spending updates throughout the campaign;
- collecting and analysing sales and consumer data;
- undertaking research using a wide range of specialist media resources;
- monitoring the effectiveness of the campaign - this data may also be used to monitor future campaigns;
- supporting the media manager and other colleagues.
Step Seven: Evaluation
Media plan
evaluation is a crucial final step to check whether the planned media.
Programme conforms to the objectives as set for it. .
Module
IV
Criterion
for selecting Media vehicles
1.
Reach: The net
unduplicated number of people that the plan covers at least once in the defined
period.
- Frequency: Frequency refers to the number of times the receiver is exposed to the media vehicle. Also Frequency refers to the number of exposures to the same message that each household supposedly receives. Frequency is important because repetition is the key to memory.
- Gross Rating Points (GRPs) or Gross Viewership per thousand (GVT): the total weight of a specific media schedule, computed by multiplying the reach, expressed as a percentage of the population, by the average frequency. GRP / GVT if the sum of all rating points delivered by the media vehicles carrying an advertisement or campaign.GRP / GVT unit costs decrease the more GRPs/ GVT are bought.
Thus Gross Rating
Points (GRPs) equal Reach times Frequency, expressed as a percentage.
GRPs = Reach % x Frequency
Gross Viewership per thousand (GVT) equal
Reach times Frequency, expressed in thousand.
GVT = Reach
(000’s) x Frequency
GRPs / GVT measure the total of all Rating Points during
an advertising campaign.
- TVT Ratings or Impressions (000): Number of individuals in 000s of a target audience who viewed an "Event", averaged across minutes. Also known as TVT. The word TRP (Television Rating Point) has now been reworded as TVT (Television Viewership In Thousands). TV show ratings have now started coming in thousands instead of percentages. Earlier, ratings for shows ranged from 0.4 to 4.5, now they range from 750 to 7,000 and more — basically indicating viewership in actual numbers.
- Cost per thousand: Cost per thousand (CPM) is one yard-stick to compare the costs of different media. It is the cost of reaching a thousand persons.
The formula for CPM is:
Cost
per Thousand = Cost of media unit
x 1000
Gross
Impression
To
illustrate, if we take a full page ad at a price of Rs. 50000 in a magazine to
reach one lac people, our CPM would be
Cost per Thousand = 50000 x
1000 = Rs. 500
100000
- CPRP: The cost of reaching one percent of the target population. CPP is calculated by dividing the cost of the schedule by the gross rating points. National and regional advertising buyers frequently use this cost efficiency measure, since it can be applied across all media.
The cost per rating point is used to estimate the cost for TV advertising on several shows.
Cost per rating point = Commercial
time cost
Percentage of audience.
- Waste:
When an ad reaches the consumers whom the advertiser does not want to
reach.
- Circulation: A newspaper's circulation is the number of copies it distributes on an average day. Circulation is one of the principal factors used to set advertising rates. Circulation is not always the same as copies sold, often called paid circulation, since some newspapers are distributed without cost to the reader.
- Pass-along rate (Print): A newspaper's readership, on the other hand, is almost always a higher number, since it's the newspaper's total circulation multiplied by the average number of people who read each copy. For example, various members of a household may eventually read the same copy of a newspaper or a publication might be passed around from person to person in an office. This "pass-along" rate is generally thought to be about 2.5 readers.
For example, if your newspaper's circulation is 50,000 total
readership would be 50,000 x 2.5 or 125,000.
The fact that readership does not equal circulation is confusing to
many prospective advertisers and you may find competitive publications taking
advantage of that misunderstanding to look bigger than they really are.
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MODULE V: Selecting suitable Media options and Media
Buying
Media Buying and Media
vehicle selection
Media Buying in Detail
Types of Newspapers Advertising
1. Display
advertising: To distinguish advertising from
editorial matter, display advertising is designed comprising the
copy, the layout, and the visuals. These ads come in all sizes. They are placed
all over in a newspaper, depending upon the policy of that paper. Display
advertising is national or local.
2. Co-operative
advertising: Local ads can be inserted on cost sharing basis
between the manufacturer and retailers – co-operative advertising. Local
display advertising is charged a lower tariff than the general display
advertising.
3. Classified ads: are
small ads charged in terms of number of words, and putting the message in
several categories or classes such as employment, real estate, matrimonial,
automobiles and so on.
Classified
ads can be classified display ads, where bold letters, illustrations,
borders and other visual elements are used.
Newspaper
also put a pre-printed ad insert in the paper. The paper with the insert
is delivered to the reader. It is just a method of distribution for
advertisers. It can be geographically selective and cost-effective.
Placing the Ad in the Newspapers
We
have to fill an insertion order while placing the ad. This order gives
specific date(s) on which the ad is to be published, the rate at which it is to
be published, and production details preparatory to the publishing of the ad.
Agencies provide newspapers the ad material in finished form.
If a
small advertiser expects the newspapers to compose the ad, the newspapers first
create a proof which is to be checked by the advertiser for correctness.
Once the ad is run, a tear-sheet which is an actual page torn from the
newspaper in which the ad was run is sent to the advertiser. It is a proof of
publishing as per requirements. If there is an error, the advertiser or its
agency can ask for rate adjustment or free insertion.
Print Media Buying
a. Newspaper
buying:
Characteristics of Newspapers
1. Immediacy.
Newspapers offer the greatest advantage of conveying the message quickly. They
are flexible and so the advertising copy can be written very close to the time
it goes to press. This characteristic is especially useful while launching new
products or making public announcements. The advertisements can thus have a
powerful new emphasis. For example. When the manufacturer of Good Knight
launched “HIT” mosquito repellent, half page ads were inserted in the Times of
India to announce this launch.
2: Selectivity. This
is one of the greatest advantages in the Indian context. The advertiser can
select the geographical area over which the message is to be communicated as
also the language. Newspapers offer split-run facilities using which
advertisers can test different campaigns in different geographical areas.
3. Newspapers
Mechanical Requirements. Newspapers come in standard and
tabloid sizes. Advertising space in newspapers is sold on the basis of columns
and inches.
Most
newspapers are largely printed on newsprint (a coarse paper stock) by high
speed presses. Therefore there are limitations on the kinds of illustrative
materials that can be effectively reproduced. Newspapers have recently begun
offering colour supplements. For
example, the Saturday Times of the Times of
India
In
addition to innovative colour techniques, newspapers are adding other features
to attract advertisers. Flexform advertising offers the advertiser the
opportunity in any conceivable shape. Those parts of the newspaper page not
containing the advertisement are filled with editorial matter. For example, the
ads of Cinthol Lime, lime Lite and Liril have used the technque. Such
unconventional layouts, surrounded by editorial matter are hard for the reader
to ignore.
4. Variety:
Most newspapers present a suitable variety of material to provide an
interesting mix for a wide range of readers. A typical newspaper has sports,
financial pages, society news, city news, shopping columns, comic strips and
other features. Some pages are widely read by women, other by men interested in
business news, and so on. An advertiser can select a target market by placing
his advertisements in certain sections or pages of the paper.
5. Penetration:
Morning newspapers are read by almost all the literate people. The readership
is much more than the circulation. For example, the Times of India
6. Types
of newspaper: There are a wide variety of newspapers to choose
from. Advertisers who wish to make announcements would use morning newspapers.
For example, public issue of shares and debentures. The copy in the morning
newspapers has to be short and attractively illustrated. The evening newspaper
can be used to advertise family products such as refrigerators, television sets
and cupboard, which require detailed explanation and long copy including
special offers and hire-purchase schemes. Specialty newspapers such as The
Economic Times can be used for business-to-business communication such as
advertisements of SKF ball-bearing, HCL computers, and so on.
Advantages of Newspapers as an
Advertising Medium
1. Prestige. The
prestige and respectability of the newspaper is transferred to the advertised
product/service.
2. Segmentation.
Editorial content of the newspaper influences the type of its readers and thus
offers segmentation of the market. For example, “the Independent” claims that
its readers are young decision-makers, highly educated and professional, while
the Times of India has greater appeal among the middle and older age groups.
The characteristics of selectivity and variety explained above increase the
newspaper’s advantage in market segmentation.
3. Flexibility. The
newspapers offer tremendous flexibility to advertisers. When it is raining in Bombay , it may be hot in Delhi Bombay
newspapers can be used to advertise raincoats and umbrellas, the Delhi Bombay
4. Split
Run Facilities. Technique used to
test the effectiveness of advertising copy. Two different versions of the same
advertisement are printed in the same press run of an issue of a particular publication, so that some of the
copies contain one version of the ad and the others contain the other version.
The publication is distributed normally, but the distribution of the advertisements
is split according to the request of the advertiser. Some advertisers split
their run in alternate bundles; others prefer to split by geographic location
or by subscription versus newsstand sales. The purpose of the split run is to
compare the effectiveness of the two alternate ad copies. Advertisers will take
advantage of this option when they desire to learn which of two elements used
in the advertising will achieve the desired objectives. Elements that are often
tested are prices, copy appeal, layout, type of illustration, coupon offered or
no coupon offered, or premium or rebate offered or not. The results of
split-run testing are revealed by the number of responses to each
advertisement. The split-run option is offered as a convenience to advertisers.
However, not all publications offer this option.
5.
Keying the advertisement. It is possible to key the advertisement
and attach a mail order coupon in order to measure its effectiveness.
6.
Measuring Reach. The Audit Bureau of circulation (ABC) gives the
readership and circulation figures and therefore it is possible to measure the
reach of different newspapers.
7.
Mobility.
Newspaper can be carried and read anywhere, while travelling, at the place of
work, in library, inn doctor’s waiting room and so on.
Limitation of Newspapers as an
Advertising Medium
Despite
the above advantages newspapers have the following limitations:
1.
Limited coverage. In India
2. Short
Life.
It is often said “as stale as yesterday’s newspaper.” A newspaper has a very
limited life and therefore advertising will have little impact beyond the day
of publication.
3.
Hasty reading. Studies indicate that people spend about 30 minutes
on the paper. This means that the ad must make its impression quickly or it
will fade.
4.
Cost.
It is an expensive medium that is unsuitable for small advertisers especially
the morning English newspapers such as the Times of India.
5. Poor
Reproduction. Most of the pages are in black and white and the
colour advertisements are not as well reproduced as those in magazines.
Therefore we rarely find food and fashion ads in newspapers.
6. Demonstration
and Display. It is not possible to demonstrate product usage as
in television commercials.
Factors
affecting the choice of newspapers are as follows
1. Circulation and Readership
It is important
to know who will notice our ad. Reach of a newspaper is given by circulation, which
is the number of copies distributed each day for a daily or each week for a
weekly. Paid circulation means the subscribed copies sold on stalls. Controlled
circulation means free copies distributed. The circulation is certified by a
body Audit Bureau of Circulation (ABC).
2.
Contract rate or earned rate is based on
agreement.
It gives a scheme of the number of ads or the amount space to be bought for
earning a discount. If this condition is not satisfied an additional charge is
levied called the short rate.
Basically,
ad rates are ROP – run of press, and ads can be placed anywhere on any page.
But for special position, we have to pay more. If the same publication house
publishes more than one newspaper, it can offer a combination rate which
is lesser than the rate of buying in each individual media.
3. Split Run
Facilities.
Many
newspapers offer split run facilities. The split run test is a service used for
testing print advertisements in which the media cooperate with an advertiser in
allowing the same space for two or more copy variations to appear in systematic
rotation through the entire circulation. This permits simultaneous circulation
of two or more advertisements in identical editorial surroundings with
comparable audiences.
4
Advertising Rates. Most advertisers are constrained by
their budgets and thus a newspaper that offers a competitive rate is most
attractive. Publishing groups such as the Times of India offer special rates
for booking space in several newspapers from the same group. (for example, an
advertiser would get a competitive rate if he placed ads in the Times of India,
Navbharat Times, The Economic Times and the Illustrated Weekly.
5.
Space Available. When the advertisement is to be published urgently,
space availability may be the only determinant. The positions available in the
newspaper are also of a prime consideration. The front page is the most
attractive commands the highest rate. Certain other positions close to a
popular section are also sought after by advertisers.
6. Language. This
consideration is closely related to the profile of the readers. For products
that have local markets, regional language newspapers are attractive. When an
advertiser wants to appeal to a specified ethnic group he may use regional
language newspapers. For example, a music group catering for Dandia Raas
enthusiasts would find Gujarati newspapers the most suitable medium.
7. Colour. Many newspapers offer colour supplements
which are more attractive than the black and white section. Advertisers are
willing to pay higher rates to enjoy the colour advantage.
8.
Time of Issue. Morning newspapers attract advertisers of new
products who make announcements that require immediate attention. The copy is
short and it has less technical information. Afternoon newspapers attract
advertisers of household products and entertainment, while Sunday newspapers
attract a great deal of advertisers catering for women (colour ads of Garden saris),
children (ice-creams), men (industrial products).
9.
Editorial Policy. This factor plays a crucial role in
today’s changing political scenario. Newspapers that are pro-government may
find it easier to attract advertisers. Advertising in anti-establishment
newspapers would imply that the advertiser is against the government and this
may create problems such as delay in granting license and so on. Some
newspapers are owned by political groups such as “Samna” by the Shiv Sena in Maharashtra . This also influences the reader profile.
b. Magazine buying:
Magazine
are of three types – general interest magazines like India Today
and Outlook or business magazines like Business India, Business World
or Business Today or special magazines for niche markets like
Eastern Pharmacist for pharmacists. Professional journals are
also specialized magazines like the journal for chartered accountants, company
secretaries and costs and works accountants. The advertisements at the top left
and top right hand of a newspaper are called ears.
Advantage of Magazine Advertising
The
newspapers and magazines have different advantages though both belong to the
print media.
The
peculiar advantages of magazines are:
1. Demographic
selectivity: Every magazine
has a different audience whose demographic and psychographic characteristics
are different. Thus Femina is a magazine for young women, whereas Savvy
is a magazines for mature women. Manohar Kahaniyan has a typical
audience of north Indian middle class. Each magazine thus helps us to target at
a particular age group, gender group and income group. Special interest
magazines provide a specific audience.
2. Geographic
Selectivity: Some magazines have all-India circulation like India
3. Creative
Flexibility: High fidelity
reproduction is a speciality of magazines on account of their superior quality
of paper and printing. They also provide opportunities for innovative adds like
pop-up ads, sample-bearing ads, scented ads, outside inserts as
booklets.
16. Durability
of Message: Magazines are
kept for a longer time, and are read again and again. More time is devoted to
reading a magazine. It means that the chances of the ad message being seen are
more in magazines. As the magazines is preserved for a longer time, the message
has a durability of longer duration.
Disadvantages of Magazines Advertising
In
spite of several advantages, magazines have many drawbacks as advertising
media.
1. Lead
Time Longer: The ad material
will have to be submitted much in advance because a magazine requires elaborate
production plan. The lead time is sometimes 90 days before the release of an
issue. It is difficult to change the message on account of changed circumstances
and contingencies. These days magazines are trying to shorten the lead time as
much as they can.
2. Limited
Reach and Frequency: Magazines have limited reach as far as
the total number of households are concerned. To reach a larger audience, it is
necessary to buy a lot of magazine space. As their periodicity is either a
month or a fortnight or a week, it is difficult to have higher frequency. To
overcome this drawback, a media planner uses several magazines or adds other
media to supplement magazine ads.
3. No
Sound and Motion: Magazines rely
upon the printed copy and visuals to convey the message, and lack the sound of
radio or motion of TV which makes these audio-visual ads greatly effective.
Magazine
buying:
Factors affecting the choice of Magazine are as
follows
While
planning magazine ads, we have to consider factors like circulation and
readership, ad rates, placement of ads, special facilities given by the
magazines.
1. Circulation
and Readership: Circulation
figures indicate the number of people who will get to see the ad. But circulation
for magazines keeps on fluctuating. The ad rates are based on guaranteed
circulation. It is the figure of those least number of copies which will be
delivered. Primary readership of a magazine is the readership of
actual buyers or subscribers. Secondary readership get to read
the magazine as it is passed on by the primary readers. Secondary readership
is a matter of research. It always exceeds the circulation. (ABC) Audit Bureau
of Circulation certifies a magazines circulation.
2. Magazines
Ad Rates: The rate card shows the rate to be paid
and production specifications. It also spells out agency’s commission policy
and provides other relevant information. There are separate rates for Black and
White and colour ads. The rates increase depending upon the number of colour
used. Bleed ad has its background colour spread all over the page till its
edges. It carries an extra charge. Magazines offer a variety of sizes –
full-page, half-page, quarter-page ads. Fractions of a page in several
combination can be offered. Gatefold ad opens like a safe, when its two
folds are opened. It occupies an extra-wide page.
Run-of-press ads are placed anywhere. The
basic rates quoted by a newspaper entitle the ad to a run-of-paper (abbreviated
ROP) position anywhere in the paper that the publisher chooses to place it,
although the paper will be mindful of the advertiser's request and interest in
getting a good position. An advertiser may buy a choice position by paying a
higher, preferred-position rate, which is similar to paying for a box seat in a
stadium instead of general admission. A cigar advertiser, for example, may
elect to pay a preferred-position rate to ensure getting on the sports page. A
cosmetic advertiser may buy a preferred position on the women's page. There are
also preferred positions on individual pages. An advertiser can pay for the top
of a column or the top of a column next to news reading matter (called full
position).
Each newspaper specifies its
preferred-position rates; there is no consistency in this practice.
Preferred-position rates are not as common as they once were. Now many papers
simply attempt to accommodate advertisers that request a position, such as "above
fold urgently requested."
a.
Preferred-position Rates: each newspaper specifies its
preferred-position rates.
b.
Combination Rates: A number of combinations are available
to advertisers. What they all have in
common is the advantage of greatly reduced rates for purchasing several papers
as a group.
c. Multiple
Rate card: Many Newspapers offer a number of rate
cards for different categories of advertisers.
3. Audience
Selectivity: As we
noted earlier, the audience niche reached by a publication is normally the
starting point for evaluating a magazine. Successful magazines tend to appeal
to relatively audience segments, especially compared to the general magazines
of the 1950s such as Life, Look, and The Saturday Evening Post.
However, today even the largest – circulation publications have an identifiable
editorial focus. Sports Illustrated, TV Guide, and Modern Maturity all
reach millions of readers but concentrate on relatively few topics.
The
closest publications to the general – circulation magazines of the past are Reader’s
Digest and the newspaper – distributed supplements USA Weekend and Parade.
However, it is apparent that the typical consumer magazine reaches a particular
demographic or lifestyle category. The combination of clearly defined demographics
and compatible editorial environment make magazines important to many
advertisers, either as the primary building block of a media schedule or as a
valuable supplement to other media.
4.
Exposure to a company’s primary target audiences. Magazines
can reach narrowly defined audience segments, especially among high – income
households. There is no question that magazines represent the most efficient
means of reaching a significant segment of affluent prospects. Furthermore, the
majority of this audience are not heavy users of other media. Therefore, when
the marketing objective is to reach affluent customers, magazines will almost
always play a central role in the advertising plan.
For
more and more national advertisers, the decision is not one of deciding between
magazine and television, but rather how to use hem as complementary media. A
study commissioned by the MPA found the following:
The
combination of print and television produces greater communication of brand
attributes than print alone or television alone.
The
selection of a brand versus its competitors increases more when print and
television are used in conjunction with each other than when television or
magazines are used separately.
It is
evident that advertisers must plan their creative strategies and executions to
strengthen and enhance the communication objectives for both media. The
complementary advantages of combining magazines and television are greatly
reinforced when creative strategies are complementary for both media.
5. Long
life and creative options. A TV commercial
is over in 30 seconds, we whiz by a highway billboard so quickly that only a
fleeting glance is possible, and the average newspaper is in the recycling bin
before we leave for work. In this disposable media world, magazines stand alone
as a tangible vehicle. Magazines are often used as reference sources. Articles
are clipped, back issues are filed, and readers may go back to a favourite
magazine numerous times before finally discarding it. Advertisers potentially
benefit from each of the exposures.
Magazines
also offer advertisers a wide range of flexible formats such as double-page
spreads, bright colours, even product sampling. Magazines are particularly
suited to long copy. Discussions of detailed product attributes for automobiles
and appliances as well as advertising for financial services all lend
themselves to magazines.
6. Qualitative
factors. Advertisers buy magazines based on their
ability to deliver a particular audience at a reasonable cost. However, more
than any other medium, magazines depend on less easily measured, qualitative
criteria that advertisers traditionally look for in magazines are the
following:
7.
Credibility. Many consumer magazines are considered the leading
authority in their field. Car owners look to Road & Track, hunters
to Sports Afield, stockholders to Fortune, and gardeners to Southern
Living as sources of reliable information. As we discussed earlier, it is
this position of magazines as authoritative sources that led to so many
cross-media spinoffs into other media. Sometimes the relationship between media
credibility and advertising is direct. For example, the Good Housekeeping Seal
has been used by Good Housekeeping magazine for more than 50 years as a
method of endorsing products that are advertised in the publication. In other
cases, the connection is less obvious but nevertheless an important part of the
qualitative selling environment of magazine advertising.
8.
Compatible editorial environment. When a person picks up Golf
Digest, Glamour, or PC Computing, there is little doubt about their
interests. These same readers also watch prime-time television, listen to the
radio on the way home from work, and see numerous billboards each day. However,
it is difficult o anticipate what they are thinking about on these moments. On
the other hand, specialized magazines can practically guarantee a synergism
between reader and editorial content.
9.
Reader involvement. The average reading time for a consumer
magazine is 52 minutes. More importantly, the more highly educated a reader,
the more thoroughly he or she reads a magazine. Studies show that readers with
a college degree are exposed to the average magazine page more frequently and
also are more likely to see the advertisements. Reader involvement is related
to the credibility and editorial relationship that readers develop with their
favorite magazines. While not easy to quantify, these factors play a role in
determining in which medium advertisers will invest their dollars.
10. Long
closing dates. Unlike the
spontaneity of radio and newspapers, magazines require a long lead time between
when advertising material must be submitted and when the ad will run. For
example, a magazine advertisement may run 8 to 10 weeks after an advertiser
submits it. This long lead time makes it difficult for advertisers react to
current marketing conditions either in scheduling space or developing
competitive copy. The long closing dates are one reason why most magazine copy
is very general.
11. Ad
Banking. While not an inherent disadvantage of all
magazines, ad banking is a practice that some advertisers do not like. Ad
banking is the practice of publications such as National Geographic to
cluster (or bank) all the advertisements toward the front and back of the
publication. Advertisers fear that banking creates advertising clutter and
makes it less likely that their advertising will gain high readership. Some
advertisers exclude such publications from their media schedules.
12.
Availability of partial
runs editions: advertisers buying not the entire circulation but a
part of the circulation. On a national scale, magazine
demographic and geographic editions meet the same demands of large advertisers.
It is very rare that a national magazine does not offer some type of regional
or demographic breakout of its total circulation. These special editions are
called partial runs and are very common and important to magazine
advertising.
Demographic
Editions.
Major magazines routinely offer advertisers those pin codes with the specific
SEC. Advertisements can limit their ads to subscribers in those areas.
Vocational
Editions.
A magazine may identify professionals or executives among its readers and allow
advertisers to purchase a partial-run directed only at these readers.
Geographic
edition:
The oldest, and still most available, form of partial-run is the geographic
edition. Depending on the publication, a magazine may offer a combination of
city, state, or regional editions.
One
advantage of geographic editions is that they can be used for both
subscriptions and newsstand sales, whereas both demographic and vocational
editions are confined to subscribers. It is extremely common for even
relatively small circulation magazines to offer some form of partial-run
advertising.
Split-Run Editions
It is
a special form of the partial-run edition. Split-run editions normally are used
by both advertisers and publishers for testing purposes. The simplest form of
split-run test is where an advertiser buys a regional edition ( a full-run is
usually not bought because of the expense) and runs different advertisements in
every other issue.
Each
advertisement is the same size and runs in the same position in the
publication. The only difference is the element being tested. It may be a
different headline, illustration, product benefit or even price.
Partial-run and split run editions offer a number of benefits
to advertisers.
1.
Geographic editions allow advertisers to offer products only in areas where
they are sold.
2. Partial-run
can localize advertising and support dealers or special offers from one region
to another. As advertisers, increasingly adopt local and regional strategies,
the partial-run advantages will become even more apparent.
3.
split-run advertisement allows advertisers to test various elements of a
campaign in a realistic environment before embarking on a national rollout.
4.
Regional editions allow national advertisers to develop closer ties with their
retailers by listing regional outlets. This strategy also provides helpful
information to consumers for products that lack widespread distribution.
Partial-run editions also have disadvantages:
1.
CPM levels are usually much more expensive
than full-run advertising in the same publication and close dates can be
as much as a month earlier than other advertising.
2. In
the case of demographic editions, the lack of newsstand distribution for these
advertisements can be a major disadvantage if single-copy sales are significant
for the publication.
3.
Some publications bank their partial-run advertising in a special section set
aside for such material.
SPOT BUYS:
When national
advertisers buy time on local stations the practice is known as spot television
or spot buys. The term comes from the fact that advertisers are spotting their
advertising in certain markets as contrasted to the blanket coverage offered by
network schedules. Spot television demonstrates two primary disadvantages
compared to network buys.
1. It requires a
great deal more, planning and paperwork than network since each market must be
bought on a one-to-one basis.
2. It is
normally more costly on a CPM basis.
Various Kinds of rebates, discounts and rates offered in print media
buys
- Scatter buys
- Upfront buys
- Make goods
- Spot buys
- Bulk discounts
- Full buy or
partial run
- Scatter buys
- Upfront
- Reach
c.
Television Buying
Merits and Demerits of TV Advertising
Special
Merits of TV:
1.
TV
has immense impact:
No other medium can ever complete TV as far as
effective presentation is concerned. It attracts attention immediately.
Computer graphics has made it still more effective. It arouses interest in the
product. In print ads, these two steps require deliberation. Here it comes
spontaneously. TV commercials and sponsored programmes are impactive; even when
the viewer is temporarily not before the set.
2.
Excellent Quality of Production: TV’s
sponsored programmes and DD programmes have been improving in terms of quality
content wise as well as product wise consistently over a period of time.
The
agency exercises overall supervision. We have cadre of TV producers now.
Sometimes the movie moghuls themselves produce a TV serial (e.g. Sagar produced
Ramayana and B. R. Copra the Mahabharat). So skilled hands this medium.
Some
sponsored programmes are lavishly made. They do a lot of outdoor shooting. But
most of the programmes are indoor shot programmes.
3.
Retailers also watch TV: Both consumers and distributors are TV
viewers. The retailers might miss out the ads in print media. But they are
exposed to TV ads. Thus they fell inclined to stock these products. Nand
Kishore Khanna & Sons, a local firm making Homacol liquid soap has
definitely improved its distribution after TV advertising. The single medium
does a double job.
4.
It is a Comprehensive Technique: In
TV, there is a unique blend of sight, colour, movement, sound, timing,
repetition and presentation in the home. Put together it has more attributes
than any other medium. It, therefore, produces quick results. Only the product
should be a nationally marketed consumer product.
5.
Evocation of Experience: it
stimulates the experience of using and owning the product.
6.
Demonstration:
Product benefits can be shown most effectively by TV. Benefits may accrue over
a period of time. But by using the technique of time compression, product
benefits can be shown in a 10 second spot.
7.
Animation: It
is possible to vest the product/logo with human qualities. Animated characters
do not alienate us.
8.
Image Building
9.
Emotional Content: TV
triggers off nostalgia, tenderness, generosity kindness and such other emotions.
The special effects enhance the impact. ‘You have to be extremely genuine on
TV.
Special Demerits of TV Ads
1.
It takes time to produce
commercials and sponsored programmes: This
medium requires planning and deliberation. The consent for sponsorship is hard
to come by. It lacks the flexibility of press and radio. If not rightly
produced, the ads look very crude. But once produced as per our requirements,
these ads can be repeated over a period of time (Nirma ad).
2.
It is a transient medium: Here
the commercial flickers for a few seconds and goes off the air. We work over
hard with insistent jingles and repeated sales message. Sometimes, the
commercial is repeated frequently. TV ads alone may not be sufficient. They
need supportive ads in other media. More than one or two spots are necessary to
be as noticeable as one insertion in print.
3.
Time gap to purchasing: If
TV advertisement sinks into the mind, it is okay. But otherwise, a mind that is
well prepared for buying a certain product cannot do so immediately because
there is a night to go by and only next morning the action can be taken. By that
time, we might not have kept the product in mind. The ‘buy now’ pressure
exerted on the TV viewers is totally wasted because the stimulus is often lost
by the following morning. This is one of the reasons why TV needs a very high
frequency to sustain the impact.
4.
An immobile medium:
Radio can be listened to either in car or while walking. Newspapers are read in
locals, in offices and at many other locations. Right now, TV is watched only
at home. It requires a captive audience. It penetrates the home. This is an
advantage as well as a disadvantage.
5.
Difficult to gain enquiries: TV
restricts itself to typical purchases. Detailed enquiries cannot come. It is
difficult to note either the telephone number or the address. Another major
problem is that too much is compressed in a TV commercial lasting for a few
seconds. It is a digest, and is easily assimilated and absorbed. At first
viewing, there is novelty. But on absorption, this wears off. On repeated
viewing, it becomes monotonous. Everything is anticipated. This problem can be
overcome if we can serialize a commercial. It is better to produce several less
ambitious films than to produce one super production. Slight changes make all
the difference in results.
6.
Time Constraint: In a
few seconds, we can put forward only one selling proposition.
7.
Production Costs: Cost
of producing a commercial is high as compared to costs of the print production.
The paying capacity of the client, the prevailing rates in the market, the
nature of the product, and the commercial values of the programme that
accompanies the commercial determine the final production cost.
8.
Hardware Capability: The
T.V. set of the viewer and its technical capability determine the overall
impact of the commercial. Cinema can afford the luxury of long shots, but not a
T.V commercial. All commercials should be tested in real life situations,
mostly on portable B & W sets. The colour reproduction is controlled in the
print media, but on colour T.V. set the capability of the set itself determines
the colour reproduction.
9.
Statutory Controls: T.V.
commercials have to conform to a broadcast code strictly.
10. Fragmentation
of Audiences: All channels
have a diversity of programmes to attract viewers. They intend to penetrate the
viewers of other channels by a diverse programme mix. This channels penetration
at the same time gives programme options. This naturally leads to fragmentation
of audiences and lower regularities of viewer ship. I is difficult to convey a
message in such a situation. It can prove a blessing in disguise for the print
media. The relationship with T.V. is extremely flirtatious.
11. Effect
of Clutter: the viewer ship of commercials is less than the viewer
ship of the programme which accompanies them. The lengthier the chain of
commercials, the less is the viewer ship. Several studies in India
Factors affecting the choice of Television are as
follows
1. Television Rating Point: TV advertisers’ evaluate the medium according
to the delivery of certain target audiences. In the case of networks and large
affiliates, advertisers tend to look for exposure to fairly broad audience
segments. The basic measure of television of Television is the rating point.
The rating expressed as a percentage of some population (Usually TV households),
gives the advertiser a measure of coverage based on the potential of the
market.
2. Share of audience:
Percentage of radio
or television sets tuned to a particular station or channel during a given
period. Formula: Radio (or TV) rating x 100 ÷ Number of Radio (or TV)
sets.
The
share is defined as the percentage of households using television that are
watching a particular show. It is used by advertisers to determine how a show
is doing against its direct competition.
3. Up-Front and scatter Buys:
Up-Front
Buys: a term indicating that an advertiser has
purchased advertising for the coming broadcast year in an early buying season,
typically for the benefit of lower rates and CPM guarantees. Purchase of TV time by advertisers
during the first offering for the coming season by networks. Media buyers
purchasing the slots in advance.
Among
the major up-front trends are:
a.
Greater demand for time
b. Agency using
computer models called optimizers which provides additional data to major
prime-time advertisers, which gives them confidence to spread their budget.
c.
Globalization
d.
Special events
scatter
Buys:
The up-front season is followed by a second phase known as scatter plan buys.
Scatter plans are usually bought on a quarterly basis or on a Ad-hoc or as and
when required throughout the year.
They
are designed for larger advertisers who want to take advantage of changing
marketing conditions or, more often, for smaller advertisers who are shut out
of upfront buys. Generally, scatter plans will sell at a higher CPM than
up-front spots because there is less time inventory and smaller advertisers do
not have the leveraged to negotiate the CPM levels of larger networks.
4. Spot Television or Spot Buys
When
national advertisers buy from local or regional stations, the practice is known
as spot television or spot buys. I.e. purchase of time from a local or regional
station, in contrast to purchasing from a national network.
The
term comes from the fact that advertisers are spotting their advertising in
certain markets as contrasted to the blanket coverage offered by network
schedules.
The
primary disadvantages of spot television are that it requires a great deal more
planning and paperwork than National Network since each market must be bought
on a one-to-one basis and it’s more costly on a CPM basis than National Network
buys.
Primary purpose for Spot Buys:
1. To
allow network advertisers to provide additional GRP’s in those markets with the
greatest sales potential.
2. To
provide businesses with less than national or uneven distribution, a means of
avoiding waste circulation incurred by network Television.
3.
Spot buys allow network advertisers to control for uneven network ratings on a
market-by-market basis.
4.
National advertisers can use spot to support retails and provide localization
for special marketing circumstances.
5. Negotiation:
Negotiation
is the key to the Television buying. Since each advertising package is unique
to a particular advertiser, there are no rate cards for network television advertising.
In Negotiation process advertisers negotiate for time across a number of
Television options.
6. Pre-emption rate:
A
considerable portion of spot TV advertising time is sold on a preemptible
(lower-rate) basis, whereby the advertiser gives the station the right to sell
a time slot to another advertiser that may pay a better rate for it or that has
a package deal for which that particular spot is needed
7. Run of Schedule (ROS)
An
advertiser can earn a lower rate by permitting a channel to run commercials at
its convenience whenever time is available rather than in a special position.
8. Product protection:
Every
advertiser wants to keep the advertising of competitive products as far away
from its commercials as possible. This brings up the question of what
protection against competition an ad will get. Although some station say that
they will try to keep competing commercials 5 to 10 minutes apart, and
guarantee that they will not run them back to back.
9. Stripping:
A program scheduled at the same time each day,
typically Monday-Friday.. Scheduling
a syndicated program on a five-day-per-week basis. That is, they will run “ Balika Vadu” or “any television content”,
Monday through Friday in the same time slot. This practice is called stripping
since the show is stripped across a time period. It is cost efficient to buy
fewer shows for multi-showings and allows a station to build a consistent
audience for selling commercials to potential advertisers. Channels do not want
huge rating or audience composition swings from one day to another.
Difference between SOA and rating
point system
•
SOA: No of people who have switched on to a
TV.
•
Total households watching TV x 100
Total
TV Household
•
Rating
Point: No of people who have
switched onto a TV Prog
Total household watching a particular prog x 100
Total TV
Household
d.
Radio Advertising:
Commercial
radio in the Indian context has certain inherent characteristics. Its strengths
lie in:
1. Offering
local coverage on its medium wave channels
2. Permeating
all economic and social strata, thereby reaching the masses
3. Its
daily frequency, offering scope for continued messages
4. Broadcasting
throughout the day so that message may be repeatedly broadcast
5. Reaching
un-educate village folk who do not read print publication
6. When
the message is to be carried to a large number of people who speak different
languages, radio is a most suitable medium which admirably does the job at the
least cost.
7. In
a country like India
In
radio, the news service is continuous; unlike TV where we receive news in the
morning transmission, and again in the network programme in the evening, which
is wide spacing. To the advertisers, news breaks on radio are the peak
listening points when it pays to advertise.
8. Radio
commercial can be produced quickly and is not so costly also. It can be
repeated over a period of time. Radio thus is afforded by even small firms.
9. Radio
Creativity and Flexibility
Unlike
other out-of-home messages, radio commercials are not static but can be changed
almost immediately to reflect different market conditions or new competition.
The personal nature of radio, combined with its flexibility and creativity,
makes it a powerful medium for all types of advertisers and product categories.
One
of radio’s greatest strengths is its flexibility. Copy changes can be made very
quickly. When marketing conditions suddenly change, you can react instantly
with radio.
The
short lead time in production and copy changes is an enormous benefit to
advertisers who may need last-minute adjustments to their sales messages.
10.
The ability to anticipate or react to changing conditions cannot be
underestimated.
11.
The simplicity of radio can be a major advantage in making tactical marketing
decisions. Radio’s sense of immediately
and flexibility, all at a cost within the budget of even the smallest
advertiser, has made it an important part of the strategy of many advertisers.
Commercial radio, however, suffers from
the following weaknesses;
1. It
is an audio medium only; hence it affects certain essential elements of
communication
2. Certain
operational limitation are imposed; for example, the minimum period of a
fortnight reduces the medium’s flexibility
3. Limited
commercial time available. Only 10 percent of time availability restrict the
frequency of message exposure
4. Limited
availability of commercial radio. There are only 28 radio stations offering
commercial broadcasting against 300 in a country.
5. There
are possibilities of distortion in communication. Precision of script- writing
is a very challenging task. In TV, vision accompanies the words and so there is
no misunderstanding.
6. We
know what is ‘Khurram Khurram’ Papad on TV commercial but the concept is
transmitted poorly on radio. Word pictures are necessary on radio.
7. There
is a overselling in place of precise explanation. It is a real hazard. Much is
at stake on the announcer’s presentation who has to do hard-selling job. An
insistent voice really irritates. TV does this job effortlessly.
8. Repetitions
are monotonous. Radio is also a transient medium with no durability of message.
Audience research of radio is really grey area. In India
BUYING RADIO
Before radio
salespeople can convince clients to buy the medium, they must put themselves in
the place of individual clients to determine how radio will accomplish their
marketing and advertising goals. The successful salesperson must approach the
sale from the client’s point of
view. At one time, radio held a unique role in the media schedule of most
advertisers. Generally, radio accomplished one of three functions for an
advertiser:
It
supplemented other media to add weight to a schedule. It is particularly valuable for special sales or to react to unanticipated
marketing conditions.
Radio was
valuable as a niche medium. As we have seen, radio
often reaches market segments that are not heavy users of other media. For
example, for many teenagers radio is the primary medium, while print is very
ineffective.
For a few
retailers, especially smaller stores or those with narrowly segmented
clientele, it was their only medium.
Today,
advertisers continue to use radio for each of these marketing and advertising
objectives. However, the radio salesperson finds that the medium landscape is
full of new competitors, each claiming to accomplish many of the same tasks as
radio. The localized strategy adopted by many national advertisers, led media
such as television to see the advantages of competing for local dollars as well
as selling added local weight to national advertisers.
At one time,
radio competed only with newspapers for local dollars. Today, radio finds
Yellow Pages, local cable outlets, broadcast stations, outdoor, direct mail,
free shoppers and specialty books for real estate, automobiles, etc. – all
trying to get a share of the local advertising dollar. All of these competitors
have a visual element that radio lacks. It has never been more important for
radio to develop creative strategies to overcome this major disadvantage.
The radio
salesperson must become a marketing consultant, a partner with a client in
showing how radio can solve the problems. A central element in successful radio
sales “is an understanding of other media-not merely to identify and take
advantage of a competitor’s weak spots, but to be able to speak from an
informed, objective point of view about the strengths and weakness of all the
media, and to work with the client in developing the most productive marketing
plan.”
It is clear that
clients buy radio as a part of overall media strategy. Radio, or for the matter
any medium, is rarely purchased on an individual basis. The client and the
media salesperson must view the media plan as a synergistic one in which each
medium complements with others. Unless radio can create a value to the other
media, it is unlikely it will be a part of media schedule. Fortunately, radio
offers unique characteristics that will allow it to be considered for at least
a secondary role in the advertising plans of virtually all advertisers.
USING RADIO
RATINGS
Radio also uses
ratings and shares and calculates them in the same way as of the TV ratings.
However, the audiences and programming of radio mandate that ratings be used in
a way much different from the way ratings are used in television. In this
section, we will discuss some uses of ratings that are unique to radio.
Among the
primary differences between the use of ratings in television and radio are the
following:
Radio
advertisers are interested in broad formats rather than programs or more
narrowly defined television scatter plans.
Radio ratings
tend to measure audience accumulation over relatively long periods of time or
several dayparts. Most TV ratings are for individual programs.
The audiences
for individual radio stations are much smaller than television, making radio
ratings less reliable.
Since most radio
stations reach only a small segment of a market at a given time, there is a
need for much higher levels of advertising frequency compared to other media.
FM Broadcasting
Radio, as
perhaps you are aware, is a way of combining sound waves with an
electromagnetic wave. It was introduced by Reginald Aubrey Ferguson, an
engineer from Canada
Who Are the
buyers of outdoor media? They are tobacco companies, tyres and soft drink
companies, consumer goods companies (80 p.c. business), financial advertisers
(20 p.c. business). No where else in the world, financial advertising is done
by outdoor media. Cinema hoarding have become a thing of the past.
e.
OUTDOOR ADVERTISING
Media that reach
prospects outside their homes-like outdoor advertising, bus and taxicab
advertising, subway posters, and terminal advertising — are part of the broad
category of out-of-home media.
Media that
reaches prospects outside of their homes is called out-of-home media. There are more than 30 different types of
out-of-home media generating $5.2 billion in annual revenues in 2000. The most common out-of-home media are
on-premise signs.
It is the one
medium that carries a message 24 hours a day, seven days a week, day and night,
and without interruption. It's never
turned off, zipped, zapped, put aside, or left unopened. In addition, it's big. Some experts now refer to billboards as the
last mass medium.
Outdoor Advertising is the best place
to reach consumers because it can’t be turned off, has an incredible footprint
across India
and can be extremely targeted. An outdoor billboard is always there,
every time the target group step outside.
Outdoor
Advertising is so much about the audience and as such, the best companies can
deliver key messages in the best locations. The “best” locations are
simply a measurement for the type of audience in that area, (purely, customer
segmentation). By being able to drill down to this level of granularity,
advertisers can benefit even more by providing creative advertising to a very
specific demographic.
Outdoor advertising includes various types
of promotional displays, from highway billboards to transit posters and arena
placement, all geared towards communicating a message to the public.
Out-of
home media include outdoor posters (Billboards, Painted Bulletins and on-and-of
premise signs of all descriptions. Whatever may be the slight difference in the
interpretation; all outdoor ads have no editorial vehicle to carry the
messages.
The
viewer has to incur no expenditure, nor has he to make any effort to see an
outdoor advertising, where as this is not so with other media. An ad message is
not brought to the audience; it is audience who go the message, though they
view it in the course of their other activities. Outdoor ads offer repeat
opportunities for looking at the ad messages, either at the same place on an
identical Billboard at another location.
Forms of outdoor advertising
I.
Billboard:
What is a Billboard?
Billboards are advertisements
that provide information to passing vehicles and pedestrians. These large
formats out of home advertising structures typically found in high traffic
areas and are viewed at distances of 50 feet or more. There are a few types of
billboards and their sizes usually depend on the speed of traffic and distance
from the person viewing it.
Types of
billboard:
1. Bulletin: A billboard on a highway or expressway is commonly called a bulletin.
Bulletin billboards are usually located in highly visible, heavy traffic areas
such as expressways, primary arteries, and major intersections. With extended
periods of high visibility, billboard advertisements provide advertisers with
significant impact on commuters. This is the largest standard out of home advertising
format, usually measuring at 11x48 in overall size.
2. Poster: A billboard on a secondary roadway where
traffic is 30 mph - 50 mph is commonly called a poster. A poster is usually
about half of the width of a bulletin. Target local audiences with these billboards, which
are highly visible to vehicular traffic and are ideal for the introduction of
new products/services. Marketers use posters to achieve advertising objectives
and increase brand awareness by placing multiple units in strategic locations
while lowering the cost per thousand impressions. This is a standardized poster
format, typically measuring 12'3" x 24'6"; formally known as a
30-Sheet Poster. Posters have a
"local" presence and can target demographic or geographic target very
effectively. Posters are closer to street and traffic. Posters were originally
called 30 sheet posters because they were once 30 pages of paper posted with
glue on the billboard. Poster billboards are usually campaigns that
last 4 to 8 weeks. These posters advertising campaigns are much more locally
focused and can target demographic or geographic areas. Posters
are often called the “workhorse” out of home advertising because they provide
wide distribution and continuity of a message. Excellent for providing instant
consumers awareness for seasonal promotions, special events and new product
launches.
Due to their inexpensive price, they can be used
for long term advertising campaigns and can easily fit in most ad budgets.
Campaigns can be easily targeted based on geographic and demographic criteria.
They provide deep market penetration to reach
both pedestrian and vehicle traffic at or near point of purchase locations.
Posters are extremely cost efficient and lower the CPM (cost per thousand
impressions) when added to an existing advertising campaign. Posters are
digitally/screen printed on recyclable vinyl.
3. Premier Panels, &
Premier Squares: Premier Panels offer greater copy area by converting a
standard 30-Sheet Poster panel into a 300 sq.ft. vinyl surface, affording copy
area of 12’3” H x 24’6” W. Premier Square is a stacked Poster, wrapped with
vinyl, to create a unique “square” format that is designed to draw attention to
the advertiser’s message.
4. Digital Billboards (14' high x 48'wide, 10.5'
high x 36' wide, or similar sizes). Digital billboards are a broadcast type of
media for outdoor allowing advertisers to target their audience and
flexibility. Digital Billboards offer tremendous creative flexibility
allowing up-to-the-moment message opportunities. Unlike static displays,
creative displays can be changed monthly, weekly, daily or hourly from a
computer terminal. Digital Displays offer high-impact, crisp full-color
definition and image quality. With the ability to immediately customize the
advertising messages time-sensitive messages such as one-day promotions,
special events, Amber and news alerts can be instantly promoted.
5. Wallscapes - (over 700 sq feet)
very large format outdoor advertising that is usually in metropolitan area or a
landmark location for extended viewing. Wallscapes are generally the signature
piece in an outdoor campaign and create a lasting impression. Wallscapes are
the largest of all the outdoor advertising products and can be several stories
tall and wrap an entire side of a building. Wallscapes
create maximum impact of the advertising message and are often the crown jewel
of an advertising campaign. The message becomes a dramatic landmark and reaches
both pedestrian and vehicle traffic with massive impact, sometimes from great distances.
These mammoth advertising displays create instant top of mind awareness and dramatic impact. Because building designs come in such a wide variety, wallscapes can have unusual shapes and sizes which help draw the attention to them. Sides of buildings in urban and downtown areas, major highways and heavily traveled primary roads. Typically produced on vinyl or vinyl mesh. Programs are usually long term.
These mammoth advertising displays create instant top of mind awareness and dramatic impact. Because building designs come in such a wide variety, wallscapes can have unusual shapes and sizes which help draw the attention to them. Sides of buildings in urban and downtown areas, major highways and heavily traveled primary roads. Typically produced on vinyl or vinyl mesh. Programs are usually long term.
6. Spectaculars: As
the name implies, outdoor spectaculars are large, usually unique, displays
designed for maximum attention in high traffic areas. They consist of special
lighting or other types of ingenious material and innovations. In some cases,
they utilize a building as the canvas for the message. The cost of spectaculars
is very expensive and both production and space rentals are normally negotiated
on a one-time basis. The minimum contract period for most spectaculars,
however, is usually a year.
Other
types of out of home
II.
Kiosks
Advertisers are extensively using pole kiosks,
electric pole kiosks to reach their audience while they are out of home,
whether on the roads, exhibitions or trade fairs. It is an outdoor medium that
supports consecutive message display with affordability. Advertisements of this
sort are constantly before the eyes of observers on the streets, be it
vehicular or pedestrian. Kiosks are placed in a sequence of poles that allow
for repetitive advertising and hence result in higher registration.
The kiosks are
automatically lit by the lighting on the pole above them but you can also use
specially designed back-lit box type kiosks for greater visibility .
Pole kiosks can
be effectively used to advertise a local shop or store in the vicinity of the
pole. They can be even used to give out store directions using arrows to lead
the prospect to your store.
They enjoy a
quick turnaround time, that is, they can be changed in a short span of time.
They offer flexibility with respect to creative applications and ad content.
They even support complete flow of communication of a particular campaign,
being a string of information, right from introduction to benefits to contact
information that can be placed sequentially on successive pole kiosks.
Compared to the
billboards these kiosks are very small in size, so the message has to be to the
point and legible to fast moving traffic. It should not exceed more than 3-4
words per kiosk and be spread over to 2-3 consecutive boards or kiosks if it is
long. Campaigns using 3-5 consecutive boards should have some consistency and
must appear and communicate as a single campaign.
III.
Street Furniture
From the beginning of each morning to the end of the day's
rush hour and into the evening's entertainment, the streets are busy, making
them a perfect selling opportunity. Street Furniture enables advertisers to
connect with consumers on a face to face level and provide broad-based coverage
in many markets or a single neighborhood. Product options are abundant ranging
from telephone kiosks, urban panels, news racks, beach kiosks, bus benches, to
trash receptacles and more. Street Furniture is visible to pedestrian and
vehicular traffic offering a high reach and frequency for brand awareness or
point-of-purchase opportunities
The following are the advantages of the
outdoor media:
1.
The outdoor offers long life.
2. It
offers geographic selectivity. Billboards give us the flexibility to vary the
ad message to suit a particular segment of the market. An advertiser can use
this medium nationally, globally, by region, by market and even by specific location
within those markets.
3.
The advertiser can incorporate the names and addresses of his local dealers or agents at the bottom
of the poster. These dealer imprint strips are called snipes.
4.
The outdoor offers impact. Shoppers are exposed to last minute reminders by
outdoor advertising when they are driving down to the stores or a shopping
centre. Outdoor displays are in large size and in bright colour, and have a
provocative message- all of which make a good impact on prospective customers.
5. Outdoor
advertising allows for a psychedelic display of the product, trademark and
slogan.
6.
Life-like Visuals and Lifestyle Advertising: New technology makes it easier to
advertise the branch on hoardings. It reinforces the TV and Print advertising.
Outdoor
alone among all other media generates for the local governments and civic
bodies.
Outdoor advertising has the following
limitations:
1.
Since the copy of billboard ads must be brief, it places a limitation on
getting the message across to the prospect in enough words. This brevity has
made outdoor advertising merely supplementary advertising. The print or
broadcasting media are mainly relied upon to deliver longer messages.
2.
Outdoor advertising is non-selective in the sense that the audience who get the
exposure are people of all ages, sexes, educational and socio-economical
levels. There is no selectivity of a particular type of audience.
3.
Outdoor advertising when employed on a national basis is relatively expensive.
4.
Blind spot is the most dangerous thing that advertiser fear when it comes to
outdoor advertising. The term is used to refer to a campaign that is sustained
for a long -time. The question is how to continuously create novelty in
hoardings. Amul has overcome blind spot syndrome.
5.
There is a problem of getting the reliable data on the number of people who
actually see an advertisement.
6.
Price of message decay: Most advertisers find that it takes more and more money
every year to advertise. Message decay has emerged as a major problem for all
advertisers.
7.
The outdoor advertising industry is mainly a local business operation. Several
individual firms run by a single businessmen, own posters and painted display
location. In cities, town and in road sides, which sell those individual
location for outdoor advertising to advertiser.
8.
Normally, the sale of a location is for a certain period of days or weeks or
months. There are also large firm owning large number of locations. Selvel and
Advertiser are some of the names that are popular in outdoor location selling
business. There are few chain of firms operating in this business.
9. With a regard
to the location of outdoor advertising, let this point be stated clearly that
its value is only in its location. In order to be effective the angle of the
billboard from the road, and such other accepts has helped in gaining better
attention of the motorist, are important.
Transit advertising
What
It Is
Transit advertising is
advertising placed in or on modes of public transportation or in public
transportation areas. Using this method of advertising, ads can be placed
anywhere from on the sides of buses, trains and taxis, to inside subway cars,
inside bus stations and near train or bus platforms. The main purpose of
transit advertising is to reach riders and acquaint them with your brand.
Importance
Transit advertising is
important because it can provide high visibility for your product on a daily
basis. Also, your audience may not necessarily be able to ignore your ads as
they would, for example, by fast-forwarding through a television commercial or
radio advertisement, or flipping past a magazine ad. Many times, it may be hard
for a person to ignore an ad they are sitting across from on a train or bus,
simply because it's in their direct line of view. Also, transit advertising
guarantees your small business a varied audience by age and income.
Definition
Advertising that
appears inside and outside on public transport vehicles, in waiting areas, and
at stations and terminals.
•
Transit is
targeted at the millions of people who are exposed to commercial transportation
facilities, including buses, taxis, commuter trains, elevators, trolleys,
airplanes, and subways.
•
The
increased number of women in the work force, audience segmentation, and the
rising cost of TV advertising
Types of transit advertising:
•Transit advertising is typically advertising
placed on anything which moves, such as buses, subway advertising, truckside,
and taxis, but also includes fixed static and electronic advertising at train
and bus stations and platforms.
•Airport advertising, which helps businesses
address an audience while traveling, is also included in this category.
Municipalities often accept this form of advertising, as it provides revenue to
city and port authorities.
•Transit advertising is a great value that gives
a high visibility with a consistent daily audience. It’s economical and
instantly effective without wasted circulation.
Transit provides a number of advantages to advertisers and, although
still a small medium by total advertising standards, has grown at a significant
rate in the past several years. Estimated revenues for transit are
approximately $300 million.
The popularity of transit advertising are due to a number of factors:
Transit prices have low overall cost and CPM levels. Transit prices are even lower than traditional
outdoor.
Transit reaches prospects in the market place and is attracting an
increasingly upscale audience as public transportation becomes more popular in
many cities. In the case of interior signs, advertisers are reaching a captive
audience of riders who average almost 20 minutes per trip. The nature of
transit audience allows somewhat longer messages than outdoor signs.
The repetitive nature of the transit audience quickly builds high levels
of frequency over relatively short periods.
Transit advertising provides a low-cost option for reaching a mobile,
urban audience. With likelihood that mass transit will be more popular in the
coming years; the growth of transit advertising is assured.
Added to its ability to reach this audience is the fact that municipal
governments are seeking new sources of revenue and transit advertising rental
space is one that is readily available.
Types of Transit advertising:
1. Shelter advertising
With traditional out of home media facing falling revenues and legal
restrictions, shelter advertising is a major growth area. Shelter advertising
is normally used as a complementary medium to outdoor posters. It has the
advantage of being able to be used in areas where zoning regulation ban
outdoor.
In addition, shelter messages reach not only bus riders but vehicular
traffic. In fact as much as 90- percent of the total shelter audience is
vehicular.
Shelter advertising has three major advantages:
a. It is an extremely inexpensive medium. CPM levels are among the lowest of any advertising medium. It is also
similar to other out-of –home media in that it generates high reach and
frequency in a short time.
b. Advertisers can use shelter advertising to target specific markets. For example, a packaged good may use shelters in front of supermarkets
or jeans wear on the college campus.
c. Shelter advertising is illuminated for 24- hour reach and provides maximum exposure
and awareness. With 4x6 signs, shelter advertising provides
stopping power for both pedestrian and vehicular traffic. Unlike other media,
it rarely suffers from clutter from other competing messages.
It is obvious that shelter advertising, although accounting for a small
portion of all advertising revenues, will continue to grow at a faster rate
than overall advertising expenditures.
As new product categories come into the medium, we may even see larger
increases in the shelter sector. Finally rather than facing the regulatory
problems of outdoor, the revenues generated by shelter posters are often shared
with municipal transit companies, making the medium a revenue producer to many
cities facing tight budget
2. Interior cards or car cards
Buses and subways usually have overhead and wall mountings for
advertising. Local trains also have advertising space on their walls. These are
especially useful when catering for specific target group such as women. The
ads can be placed inside the women’s compartments of the local trains.
Unlike the posters which cannot be read at length commuters in train
have ample time to reach the ad. And therefore a longer copy can be used.
Situational-specific advertising can also be used, for instance Godrej has used
car cards very effectively. Car may be spoilt and disfigured by mischievous
youngsters. The train route is drawn and below that the product is advertised.
This ensures that commuters referring to the map will notice the product for
its marvel soap.
Godrej used the ad line “After the hot sticky journey you need the
creamy freshness of Marvel.” The main disadvantage of this medium is that the
ads environment is not pleasing for most commuters and is not a very
pleasurable experience. This may put them in hostile frame of mind.
3. Exterior Posters.
Buses also have display ads on the outside space.
BEST buses rent out the entire bus that can be attractively painted with
the ad message. Dipy’s Jams was the first product that used the BEST as an
advertising medium. Since then several products have used this medium
effectively.
This medium is not useful during the rainy season as maintenance cost
increases. It has also not succeeded in rural areas and semi-urban areas where
the state transport buses ply. This is because the roads are so dusty that the
buses get very dirty and the advertised message loses its appeal.
4. Station and Bus shelter and Bus and Railway Ticket
Point-of-purchase advertising
About Point-Of-Sale (POS) Advertising
and Great Design Examples
Definition: Marketing materials or advertising placed
next to the merchandise it is promoting. These items are generally located at
the checkout area or other location where the purchase decision is made.
Point-of-sale or also known as POP
(Point-of-Purchase) advertising
is category in Marketing communication specialized for sales promotion to
attract shoppers. This kind of advertising serves as a promoter-reminder for
the loyal customers and also can be used for promotion of special events. The
goal is to create short-term impact preserving the long-term brand name and
short increase of selling products. The POS communication attempts to influence
customer buying decisions, and also presenting the products to new customers to
convey primary brand benefits. In today’s Advertising industry using the latest
technology, creativity overcomes the standards.
Using this
kind of promotion requires careful coordination with the marketer’s sales
statistics. This research is must-do for every Advertising agency in order to
deliver effective Point-of-sales brand promotion.
Most common noted results in POS promotion is to draw
consumers attention to the brand that is presented. To remind and maintain
purchase activity among loyal customers and attracting new ones. Also, to
stimulate trial use for the promoting brand in target audience that uses
competitive brands. The most important thing is to maintain the brand image
that is developed already by advertising. The time frame for using POS
advertising usually is predefined by the campaign and the story behind it.
Also is good to know that Point-of-sale or
Point-of-purchase strategy belongs to the category Direct Marketing.
Thus POP is Advertising that is built
around impulse purchasing and that utilizes display designed
to catch a shopper's eye particularly at the place where payment is made, such
as a checkout counter. There are various types of point-of-purchase displays,
including window displays, counter displays, floor stands display bins, banners of any kind, and all types
of open and closed display cases. Generally, these displays are created and
prepared by the manufacturer for distribution to wholesalers or retailers who
sell the manufacturer's merchandise. Often, a manufacturer will discount the
cost of merchandise or in some other way compensate the retailer for using a
point-of-purchase display.
MAJOR TYPES OF POP
1. Signs differ from displays in that the messages on
them are more general. They may serve notice that a given brand is being
promoted or simply direct shoppers to an area of the store where a product is
on sale. Signs attached to a display may include price or other information
about the product.
Shelf media, such as
shelf-talkers and shelf strips, may be attached to existing fixtures, and they
don't take up precious floor, wall, or counter space.
2. Windows Displays.
These are very popular methods used by chemists’ department stores
showrooms. In fact the term “Window Shopping” has been used to describe “the
pull“these attractive window-displays exert on every passes-by.
Window display contents are used by manufactures to promote retailers to
display their products attractively. At present Wipro’s BabyCare product have
grabbed window displays at chemists outlets.
3. Displays Cards.
These are elaborate cut-out models that are placed outside the retail
outlet or placed near the cash-counters.
Frooti, a tetra bricks pack soft drink used this medium effectively.
Huge cut-outs of the model
drinking Frooti were placed besides boxes filled with hay and foorti packs.
This gave an impression that Foorti was as fresh as mangoes.
4. Wall Displays.
Here the folders may be stringed placed across the wall
5. Merchandising of Racks and Cases.
The manufactures may supply the display racks for their products. The
round jar of Cadbury’s Eclairs placed besides the cash counters the racks to
display Maggi Soups and the huge hamper with Maggi Noodles swinging at the
doorway of the retail outlets are striking examples.
6. In store Commercials.
This is the latest form of P.O.P advertising. The commercials are viewed
by consumers within the store and act as sales people trying to effect a sale.
Electronically operated display panels near cash counters or small screens near
shelf-spaces can be used to exhibit the commercials. These are common in
supermarkets.
Advantages of P.O.P Advertising
1. It is the last advertising opportunity before the purchase and
therefore the manufactures has to hardsell.
2. The P.O.P material is generally similar to the press and TV
advertisements and therefore acts as a reminder of mass advertising.
3. It provides information and identification of the brand its image.
4. the most important advantage is that it increases the sales turnover
and makes their outlets attractive.
5. Retailers recognize the value of P.O.P as it increases the sales
turnover and makes their outlets attractive.
6. Sales promotion contents can be successful by P.O.P material, for
example: A retailer may display the latest Pepsi promotional campaign.
7. At times it can be economical and convenient for the retailer to use
P.O.P material, for Example: A manufacturer may be willing to supply one with
advertising for his brand, at a cost lower than a retailer would pay for one
without advertising. In short P.O.P advertising acts as a dealer aid as well as
stimulant for consumers.
8. Manufacturers need not depend upon retailers to push their brands as
the P.O.P acts as a pull technique.
9. As organized retail such as Big Bazar increases, self service will
become the order of the day. This increases the importance of P.O.P advertising
Limitations of P.O.P Advertising
1. With growing competition manufactures are fighting for limited retail
spaces. This increases the clout of retailers.
2. P.O.P material is useful only when it is placed at a high level or in
an attractive manner. This may not be always possible.
3. A clutter of too many P.O.P materials may confuse the consumer.
4. Retailers are not too bothered about installing the display and when
one salesman installs the P.O.P materials, the next salesman from the next
sales firm replaces the display with his own. This limits the life of the P.O.P
materials.
5. Wall displays and signs may get damaged or may deteriorate.
6. Display racks may misused by stocking it with competitive merchandise
7. Retailers usually do not pay for P.O.P material and therefore may not
use it correctly and effectively.
- Large
manufactures having a long term relationship with the retailers and
financial clout may enjoy premium places for their displays to the
disadvantage of smaller manufactures
f.
Cinema Advertising
Now, over a
century old, the Indian film industry is worth Rs. 13,000 crore. Nearly 30
films across 10 different languages are released every week. Experts point out
that an estimated 3.5 billion tickets are sold annually and an average Indian
visits the theatre thrice every year. It has also built up a great eco-system
for brands to interact with audiences.
In-cinema
advertising refers to on-screen and off-screen branding that consumers see in theatres.
Many mainstream brands today are using in-cinema advertising and have upped
spends after realising the impact. In the on-screen space, a brand can run the
traditional 30-, 45- or 60 second promos or 10-second static slides giving
information.
The interactive
use of on-screen space has clicked too. Nokia designed a short film for the
Lumia. In it, the protagonist, who is trapped in a maze, calls a person from
the audience to help him out. The activation-cum-on-screen film ends with the
protagonist coming out in person and gifting the viewer a Nokia Lumia.
In the
off-screen space, there is a mind-boggling variety of options ranging from
seats, audi name(or door), lobby, wall, floor, box office, security check
point, popcorn counter, lift, kiosk, product display, staircase, washroom,
ticket jackets, interactive zones or kiosks, poster box and sampling.
Piramal
Healthcare partnered with Big Cinemas across 100 screens and placed the I-Sure
(an ovulation test kit) communication in women's washrooms. The dialogue
between the brand and the consumer happened very well.
Cinema delivers
unparalleled impact as brands play with the senses of the consumer." A
brand manager is upset if the consumer switches channels, closes a browser or
chooses the YouTube ad skip button but he is happy at a theatre because it does
not allow the consumer this luxury.
Brands get a
captive audience glued to the screens. Brands, however, get to know who they
are interacting with and that the chances of spillover are less. Cinema gives you
a unique audience in every show and we can advertise in select geographies with
different propositions. In 2012-13, for instance, 9XM ran campaigns in 100
Cinemax screens (now PVR) in the Hindi-speaking markets to promote its Bade
Chhote characters. Since it played Bollywood music, theatres were the perfect
destination."
The medium
allows even the small retailer to advertise and play longer ads that could be
prohibitively expensive on TV. The effect, however, may not be the same.
"It is not a frequency building medium. The cinema screen acts as an
ancillary to any large TVC. Theatres are great for sampling. Samsung, for
instance, placed small fridges in the aisle next to the seats in PVR's Gold
Class filled with eatables and encouraged viewers to consume the products and
judge the efficacy of the fridge.
There are many
reason why in-cinema advertising was not explored much in the past. Single
screen theatres used print rolls that were prone to damage, expensive to
produce and had to be distributed individually to each theatre.
These theatres
were not designed for off-screen branding and mostly reported incorrect
footfall numbers. Piracy also lead to several single screens shutting down. All
that has changed. The emergence of multiplexes and their rapid expansion to
tier I and II cities is a big reason why this change has begun. In 2013, growth
came from tier II and III cities. PVR added 60 screens, Inox 21 and Satyam
Cineplex (now Inox) 12 that year.
In 2013,
Interactive Television also launched Cinema Auditing and Monitoring (CAM)
Report, a proprietary tool to ensure transparency in the audit of Cinema
advertising. It is the only third party monitoring system available in the
country for Cinema advertising. The monitoring is carried out in top 8 cities
covering 200 screens which contribute approximately 60 per cent of the cinema
ADEX in a given week.
Multiplexes have
better ambience and good picture quality and drew SEC A, AB, A+ audiences back
to the theatres. A KPMG report points out that the occupancy levels for major
multiplexes rose from 23-27 per cent in 2011 to 30 per cent in 2013. PVR claims
to get more than 72 million viewers annually, while Big Cinemas gets 40
million.
Other
developments have changed the movie-going experience. Digitisation has improved
film quality. Digital prints cost less than analogue and are easy to
distribute. Today, viewers in big and small cities get to see the show on the
day of release. Kick, for example, was released simultaneously in 4,000
screens. Producers push films on as many screens on Day One but their shelf
life is low.
Multiplexes
monitor footfalls and provide brands with a log of the ad (when, where and how
many times it played) thereby bringing transparency. Most multiplexes have a
capacity of 200-500, giving them the flexibility to run small ticket films,
giving more options to the advertisers.
When it comes to
in-cinema advertising, are there watertight compartments? Do regional brands
advertise
The fact that a
movie is regional, Bollywood or English does affect advertisers' decisions.
Most brands tend to go for larger Hindi releases with assured eyeballs.
Advertising depends on the resources available, not whether the movie is
regional, Bollywood or Hollywood
g. Digital medium in India
The internet is one of the
emerging mediums in India
Advantages:
Effective targeting – the internet as a medium poses
an advantage in this aspect as the kind of people visiting a site or surfing the
web can be determined and defined much better and easier then other mediums.
However, one must remember that majority of the people on the net are educated
and from urban backgrounds. So it makes sense only for those who are looking at
this target audience to advertise on the net.
Eg. It doesn’t make much sense
for lifebuoy to advertise on the net.
Flexibility of execution - theoretically, internet as a
medium provides one with a good amount of flexibility of execution. One can
communicate its message in the form of print or one can create a whole
audio-visual experience or even set up a virtual tour experience of the
product.
Eg. Many tour operators have a
virtual tour site of different countries. Products like mobile phones can be
seen from all angles because of 3-D animation.
one-to-one with consumers: The primary attraction of the
Internet is its ability to deal one-to-one with consumers. In theory, business
and consumers can buy products, exchange product information, and acquire
valuable research with the touch of a computer key. In practice, the Internet
remains an experimental medium with vast underutilized potential
Growth: However in future
one expects the medium to grow across sections of society. The Internet is the
ultimate research tool, with its ability to measure exactly how many people
used the medium and or purchased a product The Internet is among the most
flexible media, with an ability to immediately change copy in reaction to
market and competitive conditions.
Reach: one of the main advantages of the medium is that it
exposes you to the world. The knowledge you can obtain from the internet is
close to infinite. Anyone in the world can see your website; see your ad [even
if it is a little banner on a small site]. It is also a medium where you can
communicate to a specific target audience.
Cheaper medium to advertise: It is a relatively cheaper
medium to advertise.
Disadvantages:
To this point, the Internet is
mostly promise rather than performance. It is difficult to determine the effectiveness
of the service because it is largely experimental in a commercial sense.
Connectivity with respect to India
Despite the growing popularity
of the Internet as a means of informal communication, many consumers are still
reluctant to use the service for purchasing products and services. In
particular, consumers seem reluctant to give their credit card numbers over the
Internet, even though secure sites are available.
The sheer number of commercial
and non-commercial web sites makes it difficult for consumers to know what is
available or, once know, have much time to spend with any single site.
The limitations are that it is
not widespread in the country. It is almost redundant for rural advertising.
The fact that you cannot do more than animations of a website is a
disadvantage.
There are several other
disadvantages but over a period of time this medium is bound to emerge as a
strong force in media planning.
MODULE VI: COMMUNICATION MIX
Communications Mix are the means by which firms attempt to
inform, persuade, and remind consumers, directly or indirectly, about the products
and brands they sell. What is Communication
Mix: “Communication
Mix” is aimed at not only creating awareness about the product/service but also
at persuading the customer to use and experience it.
Communication Mix is also called
as “Promotion Mix”. The Communications Mix is the specific mix of advertising, personal
selling, sales promotion, public relations, and direct marketing a company uses
to pursue its advertising and marketing objectives. Promotion involves disseminating information about a product, product
line, brand, or company. It is one of the four key aspects of the marketing
mix.
1. Advertising: Any paid form of non-personal presentation and promotion of ideas, goods,
or services by an identified sponsor.
2. Personal selling: Personal presentation by the firm’s sales force for the purpose of making
sales and building customer relationships. Communication processes in which
sales associates help customers satisfy their needs through face-to-face
exchanges of information.
3. Public relations: Building good relationships with the company’s various publics by
obtaining favorable publicity, building up a good "corporate image",
and handling or heading off unfavorable rumors, stories, and events. Public Relations (PR).
4. Direct
marketing: Direct communications with carefully targeted individual consumers to
obtain an immediate response and cultivate lasting customer
relationships.Direct marketing is the use of consumer-direct channels to
reach and deliver goods and services to customers without using market
middlemen.
5. Sales promotion: Short-term
benefits or incentives to encourage the purchase or sale of a product or
service.
6. Events: A
promotional activity such as festival, sporting event, concert or other
activity that draws the right people
and gets your message across in the best way possible.
7.
Sponsorship: Sponsorship is about providing money to an event, in turn the product or
company is acknowledged for doing so. Sponsorship helps the company improve its
image and public relations
within the market.
8. Viral
Marketing: Viral marketing occurs when consumers pass on or recommend
product/company/website to others. This could be via email, or bulletin boards
or word of mouth.
Viral marketing may
take the form of video clips, interactive Flash games, advergames, ebooks, brandable software, images, text messages, email messages,
or web pages. The most commonly utilized transmission vehicles for viral
messages include: pass-along based, incentive based, trendy based, and
undercover based. However, the creative nature of viral marketing enables an
"endless amount of potential forms and vehicles the messages can utilize
for transmission", including mobile devices.
The ultimate
goal of marketers interested in creating successful viral marketing programs is
to create viral messages that appeal to individuals with
high social networking potential (SNP) and that have a high
probability of being presented and spread by these individuals and their
competitors in their communications with others in a short period of time.
9. Merchandising: Merchandising refers to the methods, practices and operations conducted
to promote and sustain certain categories of commercial activity. The term is
understood to have different specific meanings depending on the context.
Merchandise is sale goods at a store
.
10. Word-of-Mouth Marketing: Word of mouth, or viva voce, is the passing of information from person
to person by oral communication, which could be as simple as telling someone
the time of day. Storytelling is a common form of word-of-mouth communication
where one person tells others a story about a real event or something made up.
Oral tradition is cultural material and traditions transmitted by word of mouth
through successive generations. Storytelling and oral tradition are forms of
word of mouth that play important roles in folklore and mythology. Another
example of oral communication is oral history—the recording, preservation and
interpretation of historical information, based on the personal experiences and
opinions of the speaker.
Oral history
preservation is the field that deals with the care and upkeep of oral history
materials collected by word of mouth, whatever format they may be in.
In
marketing, word-of-mouth communication (WOM) involves the passing of
information between a non-commercial communicator (i.e. someone who is not
rewarded) and a receiver concerning a brand, a product, or a service.
When WOM is
mediated through electronic means, the resulting electronic word of mouth
(eWoM) refers to any statement consumers share via the Internet (e.g., web
sites, social networks, instant messages, news feeds) about a product, service,
brand, or company.
If the
sender of word-of-mouth communication is rewarded than this process is referred
to as word-of-mouth marketing, which relies on the added credibility of
person-to-person communication, a personal recommendation. Using WOM as an
opposing force to commercially motivated word-of-mouth marketing has been
coined Proconsumer WOM.
11. Interactive marketing: Interactive Marketing refers to the evolving trend in marketing whereby
marketing has moved from a transaction-based effort to a conversation.
Interactive marketing features the ability to address an individual and the
ability to gather and remember the response of that individual” leading to “the
ability to address the individual once more in a way that takes into account
his or her unique response.
Interactive
marketing is not synonymous with online marketing, although interactive marketing
processes are facilitated by internet technology. The ability to remember what
the customer has said is made easier when we can collect customer information
online and we can communicate with our customer more easily using the speed of
the internet. Amazon.com is an excellent example of the use of interactive
marketing, as customers record their preferences and are shown book selections
that match not only their preferences but recent purchases.
12. Mobile Marketing: Mobile marketing is marketing through wireless handheld devices, such as cellular
telephones, and m-commerce or mobile commerce involves completing a
transaction via the cell phone.
13. Telemarketing: Telemarketing is a method of direct marketing in which a
salesperson solicits prospective customers to buy products or services, either
over the phone or through a subsequent face to face or Web conferencing
appointment scheduled during the call. Telemarketing can also include recorded
sales pitches programmed to be played over the phone via automatic dialing.
14. Brand
identity: How a
business wants a brand's name, communication style, logo and other visual
elements to be perceived by consumers. The components of the brand are created
by the business itself, making brand identity the way in which a business wants
consumers to perceive its brands, not necessarily how it is actually perceived. Brand identity is different than brand
image, which is what consumers actually think. It is constructed by the
business itself. A negative gap between brand identity and brand image means a
company is out of touch with market sentiment, which will make selling its
products more difficult. The brand image held by consumers can reach a point at
which a business or product has to rebrand itself or risk not bringing in
sales.
15.
Corporate identity: A
corporate identity is the overall image of a corporation or firm or business in
the minds of diverse publics, such as customers and investors and employees. It
is a primary task of the corporate communications department to maintain and
build this identity to accord with and facilitate the attainment of business
objectives. It is usually visibly manifested by way of branding and the use of
trademarks.
Corporate
identity comes into being when there is a common ownership of an organizational
philosophy that is manifest in a distinct corporate culture. At its most
profound, the public feel that they have ownership of the philosophy. Corporate
identity helps organizations to answer questions like “who are we?” and “where
are we going?” Corporate identity also allows consumers to denote their sense
of belonging with particular human aggregates or groups. In general, this
amounts to a corporate title, logo (logotype and/or logogram) and supporting
devices commonly assembled within a set of guidelines. These guidelines govern
how the identity is applied and confirm approved colour palettes, typefaces,
page layouts and other such.
16.
Point-of-purchase advertising: Displays, signs, structures, and devices that are promotional, and are
used to identify, advertise, or merchandise an outlet, service, or product and
serve as an aid to retail selling. The key word here is promotional. Merely
stocking a shelf with soap or cereal doesn't make for POP. Nor does a sign that
says "Meat Department."
MAJOR TYPES OF POP
1. Signs
2. Shelf media, such as
shelf-talkers and shelf strips, may be attached to existing fixtures, and they
don't take up precious floor, wall, or counter space.
3. Windows Displays.
4. Instore Commercials.
5. Standees
17. In film
advertising: In-film advertising, in
its most effective form, is about a brand being a part of the cinema's content. Many global brands are now turning to this medium for the sheer impact
that a movie can make on its audiences. A brand using
the medium of cinema to promote its message. A number of marketers are now
using movies to project the core values of their brands.
18. Transit
advertising: Advertising
that appears inside and outside on public transport vehicles, in waiting areas,
and at stations and terminals. Transit is targeted at
the millions of people who are exposed to commercial transportation facilities,
including buses, taxis, commuter trains, elevators, trolleys, airplanes, and
subways. The increased number of women in the work
force, audience segmentation, and the rising cost of TV advertising.
19. Ambient
Advertising: Ambient
Advertising definition is: The placement of advertising in unusual and
unexpected places (location) often with unconventional methods (execution) and
being first or only ad execution to do so (temporal). Newness, creativity,
novelty and timing are key themes in ambient advertising. This definition is
deliberately narrow and attempts to exclude ‘mainstream’ advertising Implicit
in this definition are that Ambient is a moveable and somewhat subjective term
and will shift according to the advertising norms of the day.
Ambient Advertising
Ambient
Advertising definition is: The placement of advertising in unusual and
unexpected places (location) often with unconventional methods (execution) and
being first or only ad execution to do so (temporal).
Newness,
creativity, novelty and timing are key themes in ambient advertising. This
definition is deliberately narrow and attempts to exclude ‘mainstream’ advertising
Implicit in this definition are that Ambient is a moveable and somewhat
subjective term and will shift according to the advertising norms of the day.
One of the
fundamental premises of Ambient is that the world is an advertising stage.
Everything is a potential advertising medium—sides of cows, rockets, golf-hole
cups etc.
Ambient was
first used in relation to advertising in 1996 by Concord Advertising, a UK
It evolved from
a need to apply a single term to what was an increasing request from clients
for ‘something a bit different’ in their advertising. Clients, concerned with issues of
cut-through, competition, decreased effectiveness and disinterested audiences
wanted (and still want) advertising ‘with bite’ from their agencies.
This push by
clients for something different saw agencies placing ads in unusual places,
such on as floors, petrol pump handles and backs of toilet doors - previously
not considered as locations for advertising.
Such campaigns
did not fit neatly into existing categories like out-door, print, radio or
television and hence anew term was coined. Unusual locations are considered a
defining characteristic for Ambient advertising.
However,
‘unusual locations’ lose their point of difference with repetition and time,
and so cease to be something different.
This suggests two things.
Unusual location
is not the only point of difference for Ambient. The method of execution is
often unusual as well.
Holographic
projections, role-plays and graffiti are a few examples of this and certainly
fit within the ‘something different’ imperative
This suggests
two things. Unusual location is not the only point of difference for Ambient.
The method of execution is often unusual as well.
— Messages on the backs of car park receipts
— Hanging straps in railway carriages and on the
handles of supermarket trolleys
— Projecting huge images on the sides of
buildings
— Slogans on the gas bags of hot air balloons
— Ambient media in the field of advertising are
often mixed with ambient media developed based on ambient intelligent
technology
Aperture’ Marketing
Aperture: The best place and time to reach a person in the target market
group.
An aperture is
the ideal moment for exposing consumers to an advertising message. It is the
moment for exposure effective advertisement when interest and attention are
high. Media planner is responsible from locating the aperture opportunity
Definition: Aperture is
the ideal moment for exposing consumers to an advertising message. When the
consumer is in the purchasing mode, when the consumer is in the information
mode (the search corridor).
In either case,
advertising works best when interest and attention are high. Interest and
attention are high.
Even the most
brilliant message will fall on deaf ears if the target is not ready to listen
and in a position to act. For example, a person vaguely aware of depression
might pay little attention to a TV ad prompting one to your doctor" about
an anti-depression drug.
There are simply
too many steps the consumer must take--from deciding to actually do something
about the problem, to making the doctor's appointment, to actually visiting the
doctor and asking for the prescription. Thus, the doctor's office would seem to
be a better location to deliver the message.
But even a
well-crafted anti-depression product ad in the doctor's waiting room may not
motivate the patient to broach the subject if those patients are engaged in
activities such as filling out paperwork or reading tired magazines. Ironic as
it may seem, in the waiting room their minds are not focused on their health
condition.
But take that message to a location only 50
feet away--to the physician's exam room--and then you've found the right moment
to prompt this very personal discussion, right in the location where doctor and
patient interact.
Bringing three
dimensions of targeting together--the right consumer at the right time in the
right place--is the discipline we like to call aperture marketing.
Aperture is a
term borrowed from photography to describe the opening of a lens. In marketing,
the aperture is the opening of the consumer's mind to grasp your message and
take action based on that message, in the perfect moment of time captured by a
well-crafted program. This is the aperture moment.
Aperture
moments can vary widely according to the product,
category, brand and consumer. If you
identify and leverage these moments, you can assure yourself an audience that
engages in and acts on the message you provide. Moreover, you've honed your
medium not only to the best consumer, but the best moment, so you can afford to
bring optimal resources to bear at that precise moment.
Effective
aperture marketing requires, before anything else, thorough consumer research that
allows the marketer to glean insights into the dimensions of time and place
that make up an aperture and consumer involvement with a decision.
Without such
understanding, consumer targeting becomes decidedly one dimensional, resulting
in flat approaches that may not break through to the consumer, and often don't
deliver results for the marketer.
Armed with an
understanding of aperture marketing, savvy marketers can directly influence
targeted customers at the precise time and place that involvement and intensity
with the brand are at a peak.
MODULE VII:
Six
Successful Strategies for Negotiation
When doing business we don’t have a choice as to
whether or not we negotiate. The only choice we have is how well we
negotiate. We all go through some sort of negotiation each day. We
promote products, services, thoughts: supervisors use negotiating skills to
motivate employees, set budgets and timelines, employees negotiate for
promotions and raises, parents negotiate with their children to clean up and spouses
negotiate each time they decide how to manage their time or finances.
Here are six important strategies that may be
used for negotiations in business but pertain especially to the negotiating
process:
1. The negotiating process is continual,
not an individual event.
Good negotiating outcomes are a result of good relationships and relationships
must be developed over time. Because of that, good negotiators are
constantly looking for opportunities to enhance the relationship and strengthen
their position. In some cases, the result of the negotiation is
determined even before the individuals meet for discussion.
2. Think positive. Many negotiators underestimate themselves
because they don’t perceive the power they have inside of themselves accurately.
In most negotiating situations, you have more power than you think. You
must believe that the other party needs what you bring to the table as much as
you want the negotiation to be a success. Also, be sure that that
positivity is visible during the negotiation. Be aware of the tone of
your voice and non-verbal body language while interacting with the other party.
3. Prepare. Information is crucial for negotiation.
Research the history, past problems or any sensitive points of the other
party. The more knowledge you have about the situation of the other
party, the better position you’ll be in to negotiate. The most important
part of preparation is Practice! The study of negotiation is like golf or
karate. You have to practice to execute well.
4. Think about the best & worst
outcome before the
negotiations begin. Don’t be upset if things don’t go your way. In
these instances, it’s a good time to reevaluate all positions and return to the
table. In most cases, as long as you know the highest and lowest
expectations of each party a middle ground can usually be reached in the
overlapping areas.
5. Be articulate & build value. This is key, and it’s what separates the
good negotiators from the masters. When you have a strong belief in what
you’re negotiating for, you will shine. Become a master at presenting
your thoughts and ideas so that others see the value.
A tip on how to do that well:
·
Be direct
when presenting a situation. Be clear about what is expected.
Discuss ways to apply how it can happen.
·
Don’t
simply talk about what needs to happen. Discuss the consequences – how
your solution will be beneficial to the other party.
6. Give & Take. When a person gives something up or
concedes on part of a negotiation, always make sure to get something in
return. Otherwise, you’re conditioning the other party to ask for more
while reducing your position and value. Maintaining a balance will
establish that both parties are equal.
Central to the
art and science of persuasion understands three goals for which everyone is
aiming. The art and science of persuasion is often discussed as though changing
people’s minds is about using the right arguments, the right tone of voice or
the right negotiation tactic.
But effective
influence and persuasion isn’t just about patter, body language or other
techniques, it’s also about understanding people’s motivations.
In the scrabble
to explain technique, it’s easy to forget that there are certain universal
goals of which, at least some of the time, we are barely aware. Influence and
persuasion attempts must tap into these to really gain traction.
Six Principles of Influence
Principle #1: Reciprocation
Reciprocation recognizes that people feel
indebted to those who do something for them or give them a gift. For marketers,
the implication is you have to go first. Give something: give information, give
free samples, give a positive experience to people and they will want to give
you something in return. The
reciprocation principle explains why free samples can be so effective. People
who receive a free, unexpected gift are more likely to listen to a product’s
features, donate to a cause, or tip a waitress more money. The gifts do not
have to be expensive or even material; information and favors can work.
Principle #2: Social Proof
When people are uncertain about a course
of action, they tend to look to those around them to guide their decisions and
actions. They especially want to know what everyone else is doing –especially
their peers.
“Laugh tracks on comedy shows exist for
this very reason,” Testimonials from satisfied customers show your target
audience that people who are similar to them have enjoyed your product or
service. They’ll be more likely to become customers themselves.
A similar principle applies to television
commercials that say: “If our lines are busy, please call again.” Instead of
saying “Operators are standing by.” The first response implies that other
people like your offer so much that the phone lines are busy, which may
persuade others to act similarly.
Principle #3: Commitment and
Consistency
People do not like to back out of deals.
We’re more likely to do something after we’ve agreed to it verbally or in
writing. People strive for consistency
in their commitments. They also prefer to follow pre-existing attitudes, values
and actions. People want to be both consistent and true to their word. Getting
customers or co-workers to publicly commit to something makes them more likely
to follow through with an action or a purchase.
Ask your team members if they’ll support
your next initiative and say why. Getting people to answer ‘yes’ makes them
more powerfully committed to an action. For instance, don’t tell people:
“Please call if you have to cancel.” Asking “Will you please call if you have
to cancel?” gets customers to say yes, and measurably increases their response
rates.
Age matters: The older we get, the more
we value consistency. And that makes it harder for older people to make a
change. Researcher Stephanie Brown co-authored a 2005 study titled “Evidence of
a positive relationship between age and preference for consistency,” published
in the Journal of Research in Personality. The study confirmed the belief that
older people become “set in their ways.” The solution? Praise them for making
good past decisions, based on the information they had at the time. Then find
ways to stress the consistent values connecting old actions and purchases with
values underlying any new actions or purchases.
Principle #4: Liking
“People prefer to say ‘yes’ to those they
know and like,”. People are also more likely to favor those who are physically
attractive, similar to themselves, or who give them compliments. Even something
as ‘random’ as having the same name as your prospects can increase your chances
of making a sale.
“One of the things that marketers can do is
honestly report on the extent to which the product or service – or the people
who are providing the product or service – are similar to the audience and know
the audience’s challenges, preferences and so on. So, for instance, sales
people could improve their chances of making a sale by becoming more
knowledgeable about their prospects’ existing preferences.
Principle #5: Authority
People respect authority. They want to
follow the lead of real experts. Business titles, impressive clothing, and even
driving an expensive, high-performing automobile are proven factors in lending
credibility to any individual. Giving the appearance of authority actually
increases the likelihood that others will comply with requests – even if their
authority is illegitimate.
When people are uncertain, they look
outside themselves for information to guide their decisions. Given the
incredible influence of authority figures, it would be wise to incorporate
testimonials from legitimate, recognized authorities to help persuade prospects
to respond or make purchases.
Principle #6: Scarcity
In fundamental economic theory, scarcity
relates to supply and demand. Basically, the less there is of something, the
more valuable it is. The more rare and uncommon a thing, the more people want
it. Familiar examples are frenzies over the latest holiday toy or urban campers
waiting overnight to pounce on the latest iPhone.
“The tendency to be more sensitive to possible
losses than to possible gains is one of the best-supported findings in social
science.” Therefore, it may be worthwhile to switch your advertising campaign’s
message from your product’s benefits to emphasizing the potential for a wasted
opportunity:
- “Don’t miss this chance…”
- “Here’s what you’ll miss out on…”
In any case, if your product or service
is genuinely unique, be sure to emphasize its unique qualities to increase the
perception of its scarcity.
MODULE VIII
DIGITAL MEDIA PLANNING:
1.
Various Digital channels
a.
Search
engine optimization is
a methodology of strategies, techniques and tactics used to increase the amount
of visitors to a website by obtaining a high-ranking placement in the search results page
of a search engine (SERP) -- including Google, Bing,
Yahoo and other search engines. Search engines have
two major functions: crawling and building an index, and providing search users
with a ranked list of the websites they've determined are the most relevant.
i.
Crawling
and Indexing: Crawling
and indexing the billions of documents, pages,
files, news, videos, and media on the World Wide Web. Links allow the
search engines' automated robots, called "crawlers" or
"spiders," to reach the many billions of interconnected documents on
the web. Once the engines find these pages, they decipher the code from them
and store selected pieces in massive databases, to be recalled later when
needed for a search query. To accomplish the monumental task of holding
billions of pages that can be accessed in a fraction of a second, the search
engine companies have constructed datacenters all over the world. These
monstrous storage facilities hold thousands of machines processing large
quantities of information very quickly. When a person performs a search at any
of the major engines, they demand results instantaneously; even a one- or
two-second delay can cause dissatisfaction, so the engines work hard to provide
answers as fast as possible.
ii.
Providing
Answers: Providing
answers to user queries, most frequently through lists of relevant pages that
they've retrieved and ranked for relevancy. Search engines are answer
machines. When a person performs an online search, the search engine scours
its corpus of billions of documents and does two things: first, it returns only
those results that are relevant or useful to the searcher's query; second, it
ranks those results according to the popularity of the websites serving the
information. It is both relevance and popularity that
the process of SEO is meant to influence.
How do search engines determine
relevance and popularity?
To a search engine, relevance
means more than finding a page with the right words. In the early days of the
web, search engines didn’t go much further than this simplistic step, and
search results were of limited value. Over the years, smart engineers have
devised better ways to match results to searchers’ queries. Today, hundreds of
factors influence relevance. Search engines typically assume that the more
popular a site, page, or document, the more valuable the information it
contains must be. This assumption has proven fairly successful in terms of user
satisfaction with search results.
Popularity and relevance
aren’t determined manually. Instead, the engines employ mathematical equations
(algorithms) to sort the wheat from the chaff (relevance), and then to rank the
wheat in order of quality (popularity).These algorithms often comprise hundreds
of variables. In the search marketing field, we refer to them as “ranking
factors.
b.
Search engine marketing (SEM) is a form of Internet marketing that involves the promotion of
websites by increasing their visibility in search
engine results pages (SERPs)
primarily through paid advertising. The
concept behind Search Engine Marketing is quite simple: when a consumer or
business person searches the Web through either a text box or by clicking
through a directory hierarchy, he or she is in "hunt mode." This
psychological state is unique because it signals to the search engine (and to
marketers) that the person is looking for information, often of a direct or
indirect commercial nature.
Marketers
understand that this "hunt mode" means that the searcher may very
well be at the beginning, middle, or end stages of the buying cycle. When
someone is researching a product or service to satisfy an immediate or future
need they are in an unusual state: they desire relevant information and are
open to digesting and acting on the information at their fingertips, all made
possible by a search engine. This makes search engine results some of the best sources
of targeted traffic, whether this traffic originates from "organic"
unpaid search listings or paid advertising listings.
Many
marketers think of search engines as delivering the search results or SERP
(Search Engine Results Page) in the form of purely textual results. The truth
is that search results can be any mix of text, images, video, audio, or other
file formats. In the United States, search engines don’t simply include Google,
Yahoo and Bing; they also include commerce sites such as eBay and Amazon, as
well as specialty search engines such as YouTube and Hulu for video, restaurant
search engines, "people" search engines such as LinkedIn, or online
business directories for local results, including IYPs (Internet Yellow Pages)
and sites such as Yelp, Angie's List, and others.
All search engines
use algorithms to attempt to provide the most relevant results to each
searcher, taking onto account not only the search keywords used but also the
searcher’s location, device, operating system, previous search behavior, and
even identity. The better any specific search algorithm for paid or organic
(unpaid) results is, the happier the searcher is with the results. Because
search engines compete for the attention, eyeballs, and ears of searchers,
there is great incentive for constant improvement and innovation.To leverage
the power contained within this targeted traffic source, marketers must
understand how to effectively use both paid and organic SEM and have realistic
expectations about what they can expect each methodology to achieve.
c.
Email
marketing: “Email
marketing is way to target customers through email. As we send direct mail
through the postal service, in email marketing messages are sent via email.”
Standard
Definition: “E-mail is the most
effective way to promote any product or service online. It is a direct &
simple way to communicate with customers, prospects and subscribers. Email
marketing is one of the most trusted & popular online marketing channel
available for marketers. It is best medium to show your interest into customers
which indicates that you care about them & want to work with them.”
Types of
Email: There are two major types of email.
i.
Transactional: Transactional emails are
expected messages that are received after a specific action has taken place.
When a customer makes purchase on your website, you send an email to confirm
order & give them further details. If you fill out a form to register for
an event, then you receive a thank you email which includes further information.
Other examples of transactional emails are: welcome message, account
information, order or purchase status, payment confirmation, invoices etc.
These emails are highly personalized and the whole content is dedicated to user
action. That’s why transactional emails have high click through rate (CTR).
There is no unsubscription link.
ii.
Promotional: Promotional emails are sent
to promote product & service. These emails contain offer, coupons &
sales to acquire customers. They could be informational like newsletters or
announcements of new product for increasing sale and brand awareness.
Personalization of these emails is very low. Promotional emails are template
based. You must create offer clear & add special graphics because customers
don’t have time to read your email. It contains sense of urgency & clear
call to action (CTA) like, “Shop Now” or “Buy Now” etc. There is an
Unsubscription link.
Email
List: To build a email
marketing list,
it’s very important to know what is the difference between, opt-in, double
opt-in and Not opt-in.
Opt-in:
When a user sign up on your website through the sign up form. The information
(Name and email id) is added to email list. There is no need of confirmation.
It’s the fastest way to build list because users don’t need to remember to
click a confirmation link. If you buy a product from a store and provide your
email address, you are considered a single opt-in and eligible to receive email
messages about the store.
Double
opt-in: After the sign up process an email is generated to user. This email
requires the user to click a link in the email in order to confirm that he/she
is the owner of the email address and does want to receive emails from you. The
email address will be added to your list only after the link is clicked. A
double opt-in process help to build a strong and quality list.
Not
opt-in: This is purchase list from third party/affiliate or a list which
generated from web search. The subscribers or contacts on this list will not
have specifically requested to receive emails from you, so your emails will be
considered as unsolicited email or SPAM.
Email
Marketing Terminology
i.
Unsubscribe: When a subscriber
unsubscribes, this indicates that the individual no longer wishes to receive
emails from your business. People can easily unsubscribe by clicking the
“Unsubscribe” link.
ii.
Cost per email
open (CPO): In the Cost per
Open (CPO) email campaigns, email marketing service providers charge clients on
the basis of number of opens achieved. Email campaign open rate is defined as
the percentage of unique opens achieved post the campaign. This parameter gives
the number of emails that are actually viewed by the respondents. Email open rates are a crucial factor
to consider, when the goal of brand is to do more than just brand awareness. To
make the Cost per Open model a success, brands need to communicate their message very
effectively to the target audiences.
iii.
Cost per email
sent (CPS): Negotiation for
1000 eamil send based on the hiring of email marketing service provider
triggering for qualified and targeted bases.
iv.
Cost per Visit:
Cost Per Visit is online advertising ad model based on where advertisers pay
for the delivery of a targeted visitor to the advertiser’s website. Meaning the
publisher is only paid when a user goes to a website (or blog or form, etc).
v.
Cost per click:
Pay-per-click (PPC), also called cost per click (CPC), is an internet
advertising model used to direct traffic to websites, in which an advertiser
pays a publisher (typically a website owner or a network of websites) when the
ad is clicked. Cost-per click is important because it is the number that
is going to determine the financial success of the paid search campaigns.
Advertisers return on investment, whether its over- or underpaying for
each action, will be determined by how much the advertiser is paying
for clicks, and by what kind of quality advertiser is getting for that
investment. Since the overall ROI of the campaigns is determined by how much
advertiser is paying for clicks and the quality of traffic they’re bringing in,
it is important to think about cost per click in terms of both cost and value.
The basic objective is to identify and target clicks that
are both inexpensive and valuable.
vi.
Cost per transaction: In
this pricing model advertiser pay only after a valid transaction is registered
from the website. This is ideally suited for websites dealing with costly
products or services. There might be genuine leads but actual customers are few
and therefore, Cost per transaction is suitable for the high involvement
category products.
vii.
Cost per form
fill or cost per lead (CPL): Cost per lead, often abbreviated as CPL, is an online
advertising pricing model, where the advertiser pays for an explicit sign-up
from a consumer interested in the advertiser's offer. It is also commonly
called online lead generation. A lead is an individual that has
expressed interest in your product or service by completing a goal.
d.
Retargeting/Remarketing:
Retargeting:
Definition: Retargeting is the general term
that refers to online search and display ads that target users based on
cookies. Advertisers cookie users based on a visit or action and then serve ads
to them as they browse the internet via display placements or search via paid
search ads.
Retargeting is most often used to describe online ad
placements and display ads, served based on a user’s activity on website. A
user comes to the website, a cookie’s
set and advertisers can now target ads to them on other sites they visit, hence
the term retargeting. What makes
retargeting so appealing is that it’s done through third party networks like
AdBrite and the Google display network, giving advertiser the opportunity to
reach users wherever they are, on millions of sites. Within the realm of
retargeting, marketers can choose from a variety of different
channels/targeting strategies as well.
Here’s how it works: A consumer comes to website and his or her browser gets
tagged —- which just means that the small text files known as cookies, specific
to each particular computer, get added to advertising list. As the individual
continues surfing the web, clicking on various sites, ads get displayed on
their particular browser. These ads are only shown to these consumers who have
visited the concerned site, which means you’re only advertising to people who
already have some interest in the company, and the user is seeing ads for
products and companies relevant to their interests. So essentially, remarketing
targets relevant consumers and reinforces their exposure to your site.
What is Remarketing?
Definition: Remarketing has
historically been a general term that refers to collecting user information and
using it to market or remarket to them later. This has most often been done using
direct mail or email. Google has borrowed this term for their version of
retargeting campaigns that are run directly inside the AdWords platform
Simply put, remarketing is Internet advertising to people who
have visited website but haven't converted. “Remarketing”
is typically the term used to describe re-engaging customers with email. In our
world, remarketing is used to describe shopping cart abandonment email
campaigns, upsells/cross sell emails (think those very personalized Amazon
emails you get after you’ve bought a product) and lifecycle marketing emails.
Here’s an example of an Amazon upsell
remarketing email based on your browsing history:
The biggest difference between retargeting and remarketing is the strategy that's used to reach
potential customers who have left your website without making a purchase. While retargeting typically relies on cookies dropping
ads, as described in the explanation above, remarketing usually uses email.
OK, so we’ve established that “retargeting” uses display
advertisements as the primary medium and that “remarketing” uses email. That
is, unless you’re Google. Larry & Sergey, FTW.
It’s not just Amazon
who thinks email remarketing is a sound strategy. 25% of the Internet Retailer
1000 (the top 1000 retailers in the world by revenue) send shopping cart
abandonment email to their customers.
Remarketing is
becoming popular for many reasons. For example:
·
Reduced
cost per impression
·
Better
conversion rates
·
Improved
ROI
·
Precise
targeting
·
Cost
effective branding
e. Mobile advertising
(WAP & APP)
Mobile advertising is a form of advertising via mobile
(wireless) phones or other mobile
devices. It is a subset of mobile
marketing.
According to Business Insider report it is estimated that mobile app
install ads accounted for 30% of all mobile advertising revenue in 2014, and
topped $4.6bn in 2015, and over $6.8bn by the end of 2019. Other ways mobile advertising can be
purchased include working with a Mobile Demand
Side Platform, in which ad impressions are bought in real-time on an Ad exchange.
The Mobile
Internet is quite simply a name given to the Internet when you access it from a
mobile device, like a smart phone or a tablet. It's essentially the same
Internet you would access from a desktop computer. However, because a smart
phone is clearly much different from a desktop computer in both its size and
its features many websites have created unique versions that are designed
to display better on a mobile device than the traditional website would.
WAP: Mobile
websites are often referred to as WAP sites. WAP stands for Wireless
Application Protocol, which is a standard that is used to guide how the mobile
version of a website is designed, created, and displayed. Some mobile
websites, including m.WXOW.com, have unique device detection
capabilities. This means that the mobile website is able to identify not
only that you are using a mobile device, but what kind of device you are
using. The mobile website is then modified so that it displays in the
best format possible for your specific device. One advantage of this is
that the mobile website is accessible from a wide variety of mobile devices;
there are a LOT of different types of cell
phones out there! Another advantage is that the user does not have to
download a program to their mobile device in order to view the website. All
they need is a data connection and a mobile browser, which is a standard
feature that is pre-installed on many phones sold today.
"App" is
a short name for application. For the most part an application is about
the same thing as a program and is downloaded and installed on your
phone. Because each application is designed especially for the device on
which it is installed, an app is usually able to offer unique features that
take advantage of what that device has to offer. However, this uniqueness
also means that an app designed for one type of device or operating
system (for example, iPhone's iOS) will not work on another (for
example, an Android phone) and a separate app needs to be developed. Apps
often have many features that will work based on the information stored on the
device, however some parts may require a connection to the Internet in
order to provide updates. This is especially true for most apps from news
organizations as their primary content is constantly being updated.
2.
Various types of digital
a. Display Advertising ads and its
various Ad formats
What is a display ad?
Display advertising is a type of advertising that
is located on websites. It can be seen in a wide range of different formats and
contains items such as texts, images, flash, video and audio. The main purpose
is to deliver general advertisements and brand messages.
They
can be along the top of web pages such as the traditional banner ad,
or the larger text billboard, they can also be videos. These types of ads
appear on distinct sections of the site that are specifically reserved for paid
advertising and are aimed at generating a quick conversion.
The
wider banner ads generally perform better than their tall, narrow counterparts.
According to Google, the most
effective display ads are 336×280
or 300×250 pixel rectangles, 300×600 pixel half-page ads, and 728×90 or 320×110
pixel banners.
Display has come to include the many newer,
more interesting and engaging digital ad formats you can find on the web pages
you visit.
These include:
- lines of text, similar to search ads, that appear next to articles you’re reading
- images displayed above, below or to the side of the content you’re viewing
- ads that engage the user with animation or interactivity, either within the ad space or by expanding to take over part or all of the page you’re on.
- shown before, during or after a video clip
Why use display
Advertising:
- Various studies study indicate that Indian internet users spend 48% of their web time on content sites . So when ads are placed on a content site, its increases odds that consumers will take notice and absorb the message.
- In the last year alone, total website page views have gone up 12%, and total page visits per user are up 6%.
- Display ads can be shown on sites where and when users are thinking about what to buy.
- Display ads allow advertisers to offer coupons and other incentives crucial for driving sales. Furthermore, most display companies offer a suite of solutions to help find the consumers who are most likely to convert in the first place.
- Display ads can be tracked and evaluated in more ways than any other media.
- From signup forms to user tracking and beyond, display offers many ways to build your database of potential customers – and drive them to take action.
- Data and reporting available makes it easy for marketers to fine-tune their display message with every click, conversion or interaction.
- While a search ad may help a customer in search of a particular item, what if someone isn't aware of the product or service, even though may have a need for it? Display ads helps connect with reach people further up the purchase funnel.
- Display can help search efforts by getting in front of consumers during their normal web activities, then triggering them to search for product or service.
- Display ads sit within the content a user is looking for; search ads are designed to drive users away from the page on which they’re displayed.
- Unlike simple text ads, display ads give message the power of sight, sound, motion and interactivity.
- Because they’re visual in nature, display ads can maintain the look and feel that users have come to associate with the brand.
b. Video
Advertising and its various Ad formats
The term video advertising
encompasses online display advertisements such as Mid-Page Units (MPUs) that
have video within them, but it is generally accepted that it refers to advertising that occurs on
Internet television. It is served before, during and/or after a video stream on
the internet.
The advertising units used in this
instance are pre-roll, mid-roll, and post-roll and all of these ad units are
like the traditional spot advertising you see on television, although often
they are "cut-down" to be a shorter version than their TV
counterparts if they are run online.
Broadcast websites such as Sky.com
and itv.com have such advertising on their sites, as do newspaper websites such
as The Telegraph, and The Guardian. In 2010, video ads accounted for 12.8% of
all videos viewed and 1.2% of all minutes spent viewing video online.
In July 2014 Facebook paid an
estimated $400 million to acquire LiveRail, a video advertising distributor
which uses Real-time bidding to place more than 7 billion video ads a month.
Video ad formats:
According to Interactive Advertising Bureau (IAB) guidelines, there
are three types of video ad formats:
Linear
video ads -
More commonly known as pre, mid and post-roll ads, linear ads take over the
full video player space. The ads are presented before, in the middle of, or
after the video content is consumed by the user, in very much the same way a TV
commercial can play before, during or after the chosen program. They're linear
because they run in line sequentially with the content, for example a pre-roll
will appear as (ad-video); a mid-roll will be (video-ad-video) and a post-roll
will appear as (video-ad). Linear ads can be 15 or 30-seconds long and do not
allow for fast forwarding through the ad.
Non-linear
video ads -
the ads run concurrently with the video content so the users see the ad while
viewing the content.
Interactive
Video Ads:
These ads completely take over the screen and pause the video content while
they play. They allow a variety of interactions, like clicking for more information,
signing up for a newsletter etc., and are usually a mix of video, animation or
static images as well as interactive elements. They can show up before, during
or after the content plays and are generally 15-30 seconds in duration.
Overlay
Video Ads:
These ads run simultaneously with the video content, usually in the form of an
interactive banner ad in an overlay. Clicking on these ads pauses the content
and the ad opens in a full screen player. Generally, a non-linear video ad will
run for 5-15 seconds before rotating to another ad or reducing in size.
Companion
ads Companion
ads, by definition, play alongside the video. They are displayed in the web
page around the video player and often take the form of display banner ads.
They offer a persistent visual for a brand or product while the video is being
watched, without taking up video player space. They can include text, static
images or rich media. commonly text, or skins that wrap around the video
experience.
c. Types of
social media (Text + Visual, FB, Twitter, Instagram, Snap Chat etc)
THE 9 TYPES OF SOCIAL MEDIA
Before you start
getting heavily involved in any type of social media marketing, it is important
to understand all the different types of social media that are available and
the pros and cons of each.
1. Social Networks or Relationship Network – Services that allow you to connect with other people of similar
interests and background. Usually they consist of a profile, various ways to
interact with other users, ability to setup groups, etc. The most popular are
Facebook and LinkedIn.
While personal relationship networks aren’t the oldest
type of social media, they can be called the most defining of them all. These
channels were one of the first ones to offer public mini-sites, which later
became known as profiles, with extensive information about the user, and most
often require them to register with their real name. Relationship networks
allowed us to keep all our communications in one place, on our Walls, Timelines
or private messages, and share updates with our entire networks in one click.
They vary from professional relationship networks that help you find work,
connect with other professionals in the field, and share recommendations, to
romantic relationship networks that help you find single users in your area.
2. Bookmarking Sites –
Services that allow you to save, organize and manage links to various websites
and resources around the internet. Most allow you to “tag” your links to make
them easy to search and share. The most popular are Delicious and StumbleUpon.
In the early days of the Internet (think “Hosting your
own site on Geocities” era), content discovery online was a difficult task.
Nowadays, there is a plethora of interesting, useful and enlightening content
online, and sifting through all of it on your own is simply impossible. Of
course, search engines like Google come in very handy when you know what to
look for, but when you only have a vague idea of content you’d like to read or
watch, there’s bookmarking sites. These are web services like StumbleUpon,
Pinterest, and Flipboard, where users collect content from elsewhere on the
Internet, and save it to their account on the platform. This content can be
private or public, and shared with other users. Often, these bookmarking sites
will then suggest content similar to the links or images you have already saved
on the network.
3. Social News or discussion forum – Services that allow people to post various news items or links to
outside articles and then allows it’s users to”vote” on the items. The voting
is the core social aspect as the items that get the most votes are displayed
the most prominently. The community decides which news items get seen by more
people. The most popular are Digg and Reddit.
Discussion forums are one of the oldest types of
social media. Before we connected to our first university friends on The Facebook,
we discussed pop culture, current affairs, and asked for help on forums.
Perhaps it’s that unquenchable desire to get a share of collective knowledge
that accounts for the wide reach and numerous users on forums such as reddit.
“The front page of the Internet,” as well as other forums like Quora and Digg,
seldomly require the person’s real name to register and post, allowing for
complete anonymity, if desired.
4. Media Sharing –
Services that allow you to upload and share various media such as pictures and
video. Most services have additional social features such as profiles,
commenting, etc. The most popular are YouTube and Flickr.
This type of social network is defined by the primary
type of media shared among users. Facebook and Twitter have amazing video and
image-sharing capabilities; however, the majority of posts shared on these
channels contain text. For channels such as Flickr or Instagram, however,
images are the main focus—users have to choose, upload and edit image files
before proceeding with anything else, such as captions or mentions of other
users. Similarly, with sites such as YouTube and Vimeo, or apps like Vine and
Snapchat, video is the primary mode of communication.
5. Microblogging –
Services that focus on short updates that are pushed out to anyone subscribed
to receive the updates. The most popular is Twitter.
6. Blog Comments and Forums – Online forums allow members to hold conversations by posting
messages. Blog comments are similar except they are attached to blogs and
usually the discussion centers around the topic of the blog post. There are
MANY popular blogs and forums
Keep in mind
that, while these are the 6 different types of social media, there can be
overlap among the various services. For instance, Facebook has microblogging
features with their “status update”. Also, Flickr and YouTube have comment
systems similar to that of blogs.
7. Interest-based networks
One of the most wonderful opportunities presented by social media is
the ability to find people with common interests, no matter how niche these
hobbies may first appear to be. In addition to Facebook and LinkedIn Groups and
Google+ communities, there are whole networks dedicated to exploration of
interest—such as Last.fm for musicians and music lovers, and Goodreads for
authors and avid readers.
8. Online
reviews
Location-based
review services such as Yelp and Urbanspoon are getting more traction as
personal social networks adopt
geolocation, and more users choose to consult the Internet along with their
friends for recommendations of best dining spots. There are sites to review
anything from hotels, restaurant or your latest employer—and user reviews have
more weight than ever before. Sites like Airbnb and Uber, the biggest service
providers in the emerging sharing
economy, rely largely on host and driver reviews, respectively, to determine
who benefits from the service.
9. E-commerce
Last but not least, a big trend emerging across all types of social
media is the ability to view and purchase desired goods with a click of a
button. Sites such as Polyvore aggregate products from different retailers in a
single online marketplace, and services like Etsy allow small businesses and
individual crafters to sell their products without an existing brick-and-mortar
location. Over the past year, e-commerce elements have been adopted by many
networks whose primary functionalities place them in different categories, such
as Pinterest, Twitter, and Facebook.
MODULE IX
Digital Media Buying
1.
Buying Digital
Advertising: An Overview Paid media, Owned media and Earned media)
What
is earned, owned & paid media? The difference explained.
Think of earned,
owned and paid media like a tripod. Each element is an important part of the
whole and all contribute to a complete digital marketing strategy. The
illustration above outlines each element's role and how they work together to
form a cohesive marketing mix.
Earned, Owned and Paid Media Defined:
Earned media: If owned media sites are the destination then
earned media is the vehicle that helps people get there. What good is a website
or social media site if no one is seeing or interacting with it? That's where
earned media comes in. Earned media is essentially online word of mouth,
usually seen in the form of 'viral' tendencies, mentions, shares, reposts,
reviews, recommendations, or content picked up by 3rd party sites. One of the
most effective driving forces of earned media is usually a combined result of
strong organic rankings on the Search Engines, and content distributed by the
brand. First page rankings andgood content are typically the biggest drivers.
Rankings on the first page of the search engines place your owned media sites
and content links in a position to receive higher engagement and shares, which
is why a good SEO strategy is crucial. When it comes to brand content,
interesting, informative content can come in all shapes and sizes. Whether it
be a blog, infographic, video, press release, webinar or e-book, the bottom
line is that the content has to be worthwhile in order to receive the valuable
earned media; which is why a great content strategy is also important.
Owned media: Owned media
is any web property that you can control and is unique to your brand. One of
the most common examples is a website, although blog sites and social media
channels are other examples of owned media properties too. Channels like social
media and blogs are extensions of your website, and all three are extensions of
your brand as a whole. The more owned media you have, the more chances you have
to extend your brand presence in the digital sphere.
Paid media: Paid media is a good way to promote content
in order to drive earned media, as well as direct traffic to owned media
properties. Paying to promote content can help get the ball rolling and create
more exposure. Social Media sites like Facebook, Twitter and LinkedIn offer
advertising that could potentially help boost your content as well as your
website. Another way to gain more exposure for your content is to pay
influencers to tweet or share your links, impacting the reach and recognition
your pieces receive. Using retargeting, Pay Per Click and display ads is an
effective and more direct way to drive searchers to your owned media sites like
your website, to help increase traffic and/or conversions.
Key Takeaways
• All three elements, owned, earned and
paid are important to a digital strategy. It's up to you to evaluate these
three themes and decide where to allocate your resources to make the most sense
for your brand.
• Owned media sites are an extension of
your brand and create additional avenues for people to interact with your
brand. When it comes to owned media, as long as you can keep up with the
maintenance, the more the merrier.
• Earned media is the equivalent of
online word of mouth and is the vehicle that drives traffic, engagement and
sentiment around a brand. While there are different ways a brand can garner
earned media, good SEO and content strategies are the most controlled and
effective.
• Paid media is a great way to promote
content in order to generate more earned media and can also be used to drive
traffic directly to your owned media properties.
While each element
has its own role, using all three together will make your digital media
strategy that much more effective. Need help with your digital strategy?
Contact us!
2. Direct buys
from the websites:
DIRECT CAMPAIGNS
Direct
campaigns are predetermined ad deals. A direct campaign is a fixed transaction
between one brand and one website with defined orders: a set time frame, a
fixed campaign budget/spend and a guaranteed impression amount. The main
characteristic is that direct campaigns are one-time, guaranteed deals from the
brand to the publisher. The brand pays the publisher to serve ads on its
website.
Oftentimes
direct campaigns are negotiated between the publisher and the individual brand
(or the brand’s representing ad agency or trading desk). Usually the brand asks
for a proposal request from the publisher, which outlines the types of ad units
the site can run, ad inventory in the desired campaign flight (or time period),
and rate or campaign spend. If the brand decides to move forward with the campaign,
a formal Insertion Order (IO) will be sent to the publisher, outlining final
campaign specifications
Key Benefits to a Direct Digital Ad Buy:
·
Placement of your ad around
specific content :A direct buy allows you to
go directly to the website and place content where you want it. So if you know
your audience likes sports, you can place your ads directly on sports. Or, if
you are trying to align your brand with a sports tea m, you can place your ads specifically around
the content for the team. Programmatic finds your audience. A direct buy gets
the specific content you want.
·
Premium placements: A direct buy will allow you to place your ads in premium spots
throughout the website. Premium spots could be the first content block on the
page, a takeover, transitional, etc. A premium placement on the site typically
interrupt the user’s path and forces them to see your advertisement. Typically
these type of placements are not run through programmatic offerings, and thus
make a direct buy necessary to place.
·
Premium or non-standard IAB
ad sizes: Almost all sites will have a
300x250, 728x90 and 160x600. However, publishers will often have larger ad
sizes, even non-standard IAB ad sizes, to help advertisers stand out on the
website. The Interactive Advertising Bureau (IAB) is an advertising business organization that develops
industry standards.
·
Creative: A publisher may be able to handle larger ad load size then
what a DSP or ad network will allow. What does this mean for you? Bigger,
better, more engaging creative. The creative could capture emails, have
multiple hot spots to click on, play a video, load a map, have animation, and
so forth. In other words, if you can think it up, the creative can be
accomplished. The more capabilities an ad has, the larger the file size, the
larger the load size. Thus making it too large for most programmatic ad
systems. Direct buy is best place way to place it.
·
Results: Direct buys – utilizing the right ad size, creative and placement –
will typically outperform programmatic buys. In our own research we have seen
CTR’s from a direct buy two to three times better than a programmatic buy.
·
Relationship: When you place a direct buy, instead of working with an
algorithm, you are most likely working with a person. A person who knows what creative
is performing well, what size is the most compelling, and what placement gets
the best results. The person on the other end of the direct buy will work for
you to help you succeed.
NON-GUARANTEED
The
word non-guaranteed has slowly replaced the dreaded term “remnant” in digital
ad speak. Many professionals prefer using “remnant” because non-guaranteed
campaigns represent any available ad impressions that are not transacted in the
traditional direct campaign manner. Others refer to this type of campaign as
programmatic, or decision-based buying.
Unlike
the fixed characteristics of direct campaigns, non-guaranteed ad buys are
indirect transactions between brands and publishers. In direct campaigns, the
publisher is transacting directly with the brand (or its representing media
agency/trading desk) for a one time chunk of a website’s inventory. For
non-guaranteed, the publisher works with intermediary ad companies to reach
these brands. The intermediary ad companies act as the middlemen between publishers
and brand dollars to facilitate the buying and selling of ads. These
intermediaries are also known as ad exchanges, ad networks and SSPs (which we
define in our digital advertising
terms glossary).
These
non-guaranteed demand sources buy on behalf of the brand. Rather than a fixed,
one-time deal, these sources serve open-endedly and as long as the publisher
enables them to do so at negotiated rates. We blend our ad setup through direct
campaigns and non-guaranteed sources, which we organize through managed
demand stacks.
3. Programmetic Buying: [DSP (Demand
side platform) or RTB (Real time bidding)]
What is Real-time bidding?
Real-time bidding refers to the buying and selling of online ad impressions through real-time auctions that occur in the time it takes a webpage to load. Those auctions are often facilitated by ad exchanges or supply-side platforms.
Real-time bidding refers to the buying and selling of online ad impressions through real-time auctions that occur in the time it takes a webpage to load. Those auctions are often facilitated by ad exchanges or supply-side platforms.
How does it work?
As an ad impression loads in a user’s Web browser, information about the page it is on and the user viewing it is passed to an ad exchange, which auctions it off to the advertiser willing to pay the highest price for it. The winning bidder’s ad is then loaded into the webpage nearly instantly; the whole process takes just milliseconds to complete. Advertisers typically use demand-side platforms to help them decide which ad impressions to purchase and how much to bid on them based on a variety of factors, such as the sites they appear on and the previous behavior of the users loading them. Adidas might recognize that a user has previously been on its site looking at a specific pair of shoes, for example, and therefore may be prepared to pay more than Amazon or Best Buy to serve ads to him. The price of impressions is determined in real time based on what buyers are willing to pay, hence the name “real-time bidding.”
As an ad impression loads in a user’s Web browser, information about the page it is on and the user viewing it is passed to an ad exchange, which auctions it off to the advertiser willing to pay the highest price for it. The winning bidder’s ad is then loaded into the webpage nearly instantly; the whole process takes just milliseconds to complete. Advertisers typically use demand-side platforms to help them decide which ad impressions to purchase and how much to bid on them based on a variety of factors, such as the sites they appear on and the previous behavior of the users loading them. Adidas might recognize that a user has previously been on its site looking at a specific pair of shoes, for example, and therefore may be prepared to pay more than Amazon or Best Buy to serve ads to him. The price of impressions is determined in real time based on what buyers are willing to pay, hence the name “real-time bidding.”
Why does it matter?
Historically, advertisers used websites as a proxy for their ads. If they wanted to reach sports fans, they would buy ads on a sports-related site, for example. The advent of RTB has enabled them to target their ads to specific users instead, as per the Adidas example above.
Historically, advertisers used websites as a proxy for their ads. If they wanted to reach sports fans, they would buy ads on a sports-related site, for example. The advent of RTB has enabled them to target their ads to specific users instead, as per the Adidas example above.
RTB is the same as programmatic
advertising, right?. RTB is a type of
programmatic advertising, but not all programmatic advertising uses RTB. Some
“programmatic” or technology-driven ad platforms let publishers sell their
inventory in advance for a fixed price, as opposed to auctioning it off. This
is sometimes referred to as programmatic direct or programmatic guaranteed.
3.
a. Compensation methods
Compensation
methods (Remuneration), Pricing models and business models used for the
different types of internet marketing, including affiliate marketing,
contextual advertising, search engine marketing (including vertical comparison
shopping search engines and local search engines) and display advertising.
Predominant compensation methods in affiliate
marketing
The following
models are also referred to as performance based pricing/compensation model,
because they only pay if a visitor performs an action that is desired by the
advertisers or completes a purchase. Advertisers and publishers share the risk
of a visitor that does not convert.
a.
Cost Per Action Advertising: Cost
per action (CPA), also known as pay per action (PPA) and cost per conversion, is an online
advertising pricing model where the advertiser pays for each specified action - for example, an impression, click,
form submit (e.g., contact request, newsletter sign up, registration etc.),
double opt-in or sale. Cost
per action advertising generally involves less risk for advertisers than other
advertising techniques. Since you only pay when you get a lead or a sale, you
are protecting yourself from potential eyeballs that won’t convert, as well as
click fraud. Those possibilities can put a dent in your pocketbook fast. At the same time, you are ensuring that you
only pay when you have money coming in, or when the prospect for money coming
in is relatively great.
b.
Pay-per-sale (PPS) - (revenue share):
Cost-per-sale (CPS). Advertiser pays the publisher a percentage of the
order amount (sale) that was created by a customer who was referred by the
publisher. Revenue sharing. Compensation methods (Remuneration), Pricing models
and business models used for the different types of internet marketing, including
affiliate marketing, contextual advertising, search engine marketing (including
vertical comparison shopping search engines and local search engines) and
display advertising.
c.
Pay-per-lead
(PPL)/pay-per-action (PPA): Cost-per-action or cost-per-acquisition (CPA),
cost per lead (CPL). Advertiser pays publisher a commission for every visitor
referred by the publisher to the advertiser (web site) and performs a desired
action, such as filling out a form, creating an account or signing up for a
newsletter. This compensation model is very popular with online services from
internet service providers, cell phone providers, banks (loans, mortgages,
credit cards) and subscription services.
d.
Pay-per-call:
Similar to pay per click, pay per call is a business model for ad listings in
search engines and directories that allows publishers to charge local
advertisers on a per-call basis for each lead (call) they generate (CPA).
Advertiser pays publisher a commission for phone calls received from potential
prospects as response to a specific publisher ad. The term "pay per
call" is sometimes confused with click-to-call, the technology that
enables the "pay-per-call" business model. Call-tracking technology
allows to create a bridge between online and offline advertising. Click-to-call
is a service which lets users click a button or link and immediately speak with
a customer service representative. The call can either be carried over VoIP, or
the customer may request an immediate call back by entering their phone number.
One significant benefit to click-to-call providers is that it allows companies
to monitor when online visitors change from the website to a phone sales
channel. Pay-per-call is not just restricted to local advertisers. Many of the
pay-per-call search engines allows advertisers with a national presence to
create ads with local telephone numbers. Pay-per-call advertising is still new
and in its infancy, but according to the Kelsey Group, the pay-per-phone-call
market is expected to reach US$3.7 billion by 2010.
e.
Pay-per-install
(PPI): Advertiser pays publisher a commission for every install by a user
of usually free applications bundled with adware applications. Users are
prompted first if they really want to download and install this software. Pay
per install is included in the definition for pay per action (like
cost-per-acquisition), but its relationship to how adware is distributed made
the use of this term versus pay per action more popular to distinguish it from
other CPA offers that pay for software downloads. The term pay per install is
being used beyond the download of adware.
f.
Pay-per-click
(PPC) or Cost-per-click (CPC): Advertiser pays publisher a commission every
time a visitor clicks on the advertiser's ad. It is irrelevant (for the
compensation) how often an ad is displayed. commission is only due when the ad
is clicked. See also click fraud.
5. Advertising via Premium Publishers:
Definition:
“For the audience, “premium” means a media experience that the
audience pulls toward them — a premium publisher is one readers or
viewers actively seek out, or are in a relationship with in some meaningful
way. This is not purchased traffic or link bait; this is a deep and ongoing
connection. “It’s mainly about what is most important to someone — the
popularity of content, the value or utility an experience provides, the
uniqueness of a particular perspective or voice. What is “premium” to one brand or publisher may very
well not be valued the same way by others, and you need to have a focus to
define it appropriately.
Today, advertisers and publishers no longer have to discuss
and negotiate every single ad campaign, the ad networks and a plethora
of other adtech services automated the majority of the human labour of direct
selling. This is called programmatic advertising. However, many of the premium
publishers - a fuzzy definition but essentially meaning publishers of high
quality and high value content - were long unconvinced of the advantages of
automating their ad inventory sales process because of fears of low CPMs,
especially on mobile where a universal tracking cookie is not available.
The inevitability of programmatic
But today it seems no one can avoid programmatic anymore,
which is a good thing. The fact is that selling ad inventory directly is
hopelessly cumbersome and fails to take advantage of numerous advantages in
terms of targeting and optimization. What we see now is that more and more
premium (mobile) publishers start to adopt programmatic through so called
private marketplaces (PMP).
In PMPs premium publishers and advertisers can come
together to mutually benefit from the advantages of programmatic advertising.
Publishers can set floor prices, blacklist/whitelist brands, regulate supply,
and offer better targeting and transparency capabilities through unique first
party data. Advertisers can be sure their ads are shown on high quality outlets
(ensuring brand safety), buy inventory enriched with data on the per impression
level, and can do so without having to pick up the phone once, saving
tremendous amounts of work hours.
6. Advertising via Networks and
Exchanges:
The current online display ad marketplace is
significantly more fragmented and complex compared to the advertising
marketplaces of the past. When ads are available on a global scale in a
marketplace as big as the internet, mechanisms must come into place to help
simplify it for buyers and sellers. Thus, the invention of ad networks and ad
exchanges came to be. So what are ad networks and ad exchanges anyway?
Ad Networks Collect and Sell
Ad networks were created to help marketers who were
trying to collect inventory from a seemingly infinite number of websites and
publishers. Marketers didn’t have the time or resources to cherry pick ad
impressions from each website, so ad networks were created to present a large
collection of inventory so marketers could buy impressions quicker, easier, and
cheaper. Ad networks are not created equal. Some choose to focus on reach and
quantity while others boast the quality of the spots they sell. Either way, ad
networks can be a bit skewed – networks aggregate inventory from many
publishers and then mark it up and sell it to profit.
Ad Exchanges Makes Variety Available
The ad exchange could potentially be compared to a
stock exchange. While it’s not exactly similar, it does serve as a platform to
increase the efficiency of the online ad market by making ad impressions
readily available so marketers can search for and choose the ads they want at
the price that’s right for them. Like demand-side platforms, ad exchanges seek
to add stabilization and transparency to the ad network systems, which caught
criticism in the past for being monetized to serve interests of sellers. At the
moment, it isn’t able to function like an exact exchange because there is not a
natural balance of supply and demand in the online ad marketplace.
Ad Exchange vs. Ad Network
If an ad network is like a closed group of privately
traded ads, an ad exchange could be compared to an open network where buyers
can see all the options available. However, ad networks often come to ad
exchanges to buy bulk ad impressions to re-sell, which does create a level of
inequality in the ad exchange market. Overall, an ad exchange can be seen as
offering variety, while ad networks offer specialized groups of ads that cater
to a marketer’s needs. Ad networks may take the trouble out of searching, but
they also display inaccurate costs to include profit for the network providers.
The key to making the online ad marketplace run
smoothly is transparency and reliable Marketing Intelligence. Once buyers and
sellers are able to see where profit is being made and make decisions based on
where an ad impression will appear, the quality of the publisher, and the
profit margin, transactions can go smoothly, just as they do in any other
exchange. At AdClarity we strive to achieve this very goal by bringing honest
data so agencies, publishers, and advertisers can use it to get the best deal
possible.
7. Affiliate Network ( Clickbank, Commission junction, adfuncky,
7search.com)
Deninition:
An affiliate
network is an intermediary
between affiliates (publishers)
and merchants (or business purpose websites) in the context of an affiliate marketing program.
An affiliate network acts as an intermediary between
publishers (affiliates) and merchant affiliate programs. It allows website
publishers to more easily find and participate in affiliate programs which are
suitable for their website (and thus generate income from those programs), and
allows websites offering affiliate programs (typically online merchants) to
reach a larger audience by promoting their affiliate programs to all of the
publishers participating in the affiliate network.[1]
Traditional affiliate networks enable merchants to offer
publishers a share of any revenue that is generated by the merchant from
visitors to the publisher's site, or a fee for each visitor on the publisher's
site that completes a specific action (making a purchase, registering for a
newsletter, etc.). The majority of merchant programs have a revenue share
model, as opposed to a fee-per-action model.
a. clickbank is an affiliate program network...this
means that they are the middle station between affiates and the real product
sellers. ClickBank is a
privately held online marketplace for digital information products. It aims to
serve as a connection between digital content creators and affiliate marketers,
who then promote them to consumers.
b.CJ Affiliate by Conversant (formerly Commission Junction) is an online advertising company
owned by Conversant, Inc. operating in the affiliate marketing industry, which
operates worldwide.
c. Adfunky is a fast growing ad network and
digital media company founded in 2008 by Internet veterans to boost the results
of advertisers, agencies and publishers with a powerful cocktail of technology,
boutique-like service and expertise.
d.
7search.com:
7Search is a Pay-Per-Click network connecting advertisers who want to reach
targeted online audiences with publishers who want high-quality advertisers to
occupy their open ad positions.
8. The Local
Publishing Market:
Digital advertising spends are increasing due to the
increasing budgets to engage customers through the digital medium. This is also
backed by Continued allocation of spend from e-commerce companies and a
significant rise in consumption of video on-line, a category that tends to
attract much higher CPMs. Video has moved up the charts, driven by new
launches such as Hotstar, much better monetization across platforms and high
CPMs on premium content. This category should continue to see significant
growth till 2020 as more and more premium content is monitised on OTT
platforms. We have already seen almost every TV player is out with an Over the
Top Video service.
With
the growing smartphone penetration, content consumption behavior is now being
driven by smartphones. This has led to increase in mobile advertisement spends
which has reflected a significant growth. In 2015, mobile advertising spends
were estimated to be at INR 9 billion, is now expected to grow at a CAGR of
62.5 percent to reach INR 102.1 billion by 2020.
Definitions:
1) Average frequency: The number of average opportunities to see (OTS). It is calculated
by dividing gross reach by net reach.
Average issue readership: An estimated number of people who
Average issue readership: An estimated number of people who
2) Below-the-line: Advertising that uses controlled delivering techniques like
telemarketing, point-of-sale in shops, direct mail, public relations etc. This
falls below an arbitrary demarcation line between the ad media that pay
commission to ad agencies and those who do not.
3) Bleed: When the printed area of an ad extends to the border of the page rather than being set in a box or limited by white margins. Printing to the edge of the page, with no margin or border. Block. Consecutive broadcast time periods.
4) Break bumper: A TV commercial in the form of the sponsor’s logo, restricted to a maximum of 10 seconds at the start and end of a commercial break.
5) Burst strategy: An ardent phase of advertising within a concentrated period of time.
6) Clutter: A term describing a high intensity of competing ad messages that
consumers happen to come across in a given time period.
6) Cooperative advertising: When the expenditure of an ad, placed by a retailer who is promoting the manufacturer’s brand, is shared by both of them.
7) Cost per thousand (CPT): The cost borne by the advertiser to reach 1,000 people in the target audience.
8) Cover
date: Cover date refers to the date displayed on
the covers of magazines. However, this is not necessarily the true date of
publication.
In India
9) Exposure: Exposure of a target audience to an ad expressed as an opportunity to see (OTS) or opportunities to hear (OTH).
10) Full Run: Buying the entire circulation of the
magazine
Gross Rating Point (GRP): A unit of audience measurement, commonly used in the audio-visual media, based on reach or coverage of an ad. A single GRP, usually, represents 1 per cent of the total audience in a given region.
Gross Rating Point (GRP): A unit of audience measurement, commonly used in the audio-visual media, based on reach or coverage of an ad. A single GRP, usually, represents 1 per cent of the total audience in a given region.
11) Off-the-page
advertising: Advertising products/services in the
print media that invite consumers to purchase by filling in a coupon (cut out
from the ad), by ringing up a number or by accessing a website given in the ad.
12) Frequency. The
number of times that an average audience member sees
or hears an advertisement; the number of times that an individual or household is exposed to an advertisement or campaign (frequency of exposure); the number of times that an advertisement is run (frequency of insertion).
or hears an advertisement; the number of times that an individual or household is exposed to an advertisement or campaign (frequency of exposure); the number of times that an advertisement is run (frequency of insertion).
13) Pulse: A pulse is a period of intense advertising activity. The pulses can occur at the start while launching a new product. There can a promotional pulse of one shot, e.g., financial advertising of a company’s issue.
14) Reach: Percentage or number of target audience that has had an exposure to an ad or a campaign at least once within a designated period.
15) Cumulative reach. The number of different households that are ex-
posed to a medium or campaign during a specific time.
posed to a medium or campaign during a specific time.
16) Share of voice: Each advertiser’s GRP expressed as a percentage of the total GRPs of all the advertisers belonging to a specific product /service category.
17) Split run: A facility offered by a publication that allows advertisers to run different copies in different parts of the publication’s circulation area.
18) Spot Buys: When national advertisers buy time on local stations the practice is known as spot television or spot buys. The term comes from the fact that advertisers are spotting their advertising in certain markets as contrasted to the blanket coverage offered by network schedules. Spot television demonstrates two primary disadvantages compared to network buys.
It requires a
great deal more, planning and paperwork than network since each market must be
bought on a one-to-one basis.
It is normally more costly on a CPM basis.
19) TRP (Target Rating Point): A unit of TV audience measurement based on coverage. A single TRP represents 1 per cent of the targeted viewers in any particular region.
19) TRP (Target Rating Point): A unit of TV audience measurement based on coverage. A single TRP represents 1 per cent of the targeted viewers in any particular region.
20) Wastage:
When an ad reaches the consumers whom the advertiser does not want to reach.
21) Wearout:
The level at which an ad campaign loses its effectiveness after repeated
exposures.
: Charges resulting from the recalculation of an advertiser's rate
after failing to fulfill contract stipulations.
23) Agency of Record: An
advertising agency, appointed by an advertiser, with full authority to
negotiate, contract and provide insertion instructions to the media on the
advertiser's behalf.
24) Audience
Duplication
: A measurement of the overlap of audience between different media
(external) between successive issues, or broadcasts of the same medium
(internal).
25) Gatefold: Double or triple-size pages, generally in magazines, that fold out
into a large advertisement.
26) Gross audience
: The audiences of all vehicles or media in a campaign, combined. Some
or much of the gross audience may actually represent duplicated audience.
27) Gutter
: The inside page margins where a publication is bound. The inside
margins of two pages that face each other in a print publication.
28) Milline
rate: Used to determine the cost effectiveness of
advertising in a newspaper; reached by multiplying the cost per agate line by
one million, then dividing by the circulation. Also referred to as Milline.
29) Opportunities
To See (OTS): OTS is, the number of times the
publications/spots in the schedule are (potentially) seen by the target
audience. Thus Opportunity to See (OTS) is a
single opportunity to view an ad—used interchangeably with exposure and
impression.
30) Run-of-schedule: A station's option to place a commercial in any time slot that they
choose.
31) a. Share
of voice: A competitive analysis of a product's advertising
exposure within a specific category or market. Analyses commonly are based on
the number of printed pages or the total amount spent.
31) b : Share
of Mind:
Marketers try to maximize the popularity of their product, so that the
brand co-exists with deeper, more empirical categories of objects. Kleenex, for
example, can distinguish itself as a type of tissue. But, because it has gained
popularity amongst consumers, it is frequently used as a term to identify any
tissue, even if it is from a competing brand
One of the most
successful firms to have achieved pervasive mind share is Hoover
For example, it
is common to hear people refer to any soft drink as a "coke",
regardless of whether it is actually produced by Coca-Cola or not. The term
"cola" would be a more accurate term.
32) Split
33) Up-front
Buys: The purchasing of broadcast or print
advertising early in the buyings
34) Run-of-press
or Run-of-paper (ROP): A newspaper publisher's
option to place an ad anywhere in the publication that they choose, as opposed
to preferred position.
35) Infomercial:
A commercial that is similar in appearance to a
talk show, news program, or other non-advertising program content. Infomercials
are the broadcast equivalent to an advertorial.
36) Insertion
Order: An agency or advertiser's authorization for
a publisher to run a specific ad in a specific print publication on a certain
date at a specified price.
37) Pass-along
Readers: A reader that becomes familiar with a
publication without purchasing that publication. These readers are taken into
account when calculating the publication's readership, or total number of
readers.
38) Preferred
Position: A position in a printed publication that
is thought to attract most reader attention and is sold at a higher rate. (E.g.
The back cover of a magazine.)
39) Run-of-press
or Run-of-paper (ROP): A newspaper
publisher's option to place an ad anywhere in the publication that they choose,
as opposed to preferred position.
40) Spread: (1) A pair of facing pages in a periodical; or (2) an
advertisement printed across two such pages.
41) Tear
Sheets: A page cut from a magazine or newspaper
that is sent to the advertiser as proof of the ad insertion. Also used to check
color reproduction of advertisements.
42) Make Goods - Adjustments made by a publisher to an advertiser to make up for a
shortfall in contracted ad impressions or errors.
43) Ride-Along:
Ride-Alongs (RALs), similar to Package Insert
Programs, ride in tandem with outgoing mail packages; however, they are not
necessarily with purchased goods. Advertisers still receive the benefit of a
name list mailing and high opening rate, while delivering their message to
targeted consumers. RALs are essentially various communications sent by a
company with which the recipient has a pre-existing relationship. These
mailings have special offers from the sponsoring company. By advertising in
RALs, marketers can reach consumers based on similar demographics or common
interests.
44) Indian readership survey: It is the largest media survey database source
for demographics, media habits and product/ brand usage. IRS was created in
1995 by media Research Users Council (MRUC) AND ORG Marg. MRUC is a non-profit
body of advertising media and
45) Split
run. Testing two or more print advertisements by
running each
only to a portion of the audience, usually in a single issue.
only to a portion of the audience, usually in a single issue.
46) Share of audience. The
percentage of sets-in-use (and thus of HUT
or of HUR) that are tuned to a particular station, network, or pro-
gram .
47) Share of voice (SOV). The proportion of advertising expenditures that are made for a brand versus competitive brands. It’s a competitive analysis of a product's advertising exposure within a specific category or market.
or of HUR) that are tuned to a particular station, network, or pro-
gram .
47) Share of voice (SOV). The proportion of advertising expenditures that are made for a brand versus competitive brands. It’s a competitive analysis of a product's advertising exposure within a specific category or market.
Analyses
commonly are based on the number of printed pages or the total amount spent.
48) Run of paper (ROP). Advertising that is positioned anywhere in a publication, with no
choice of a specific place for the advertisement to appear.
49) Run of schedule (ROS). Broadcast commercial announcements that can
be scheduled at the station's discretion anytime; in some cases, the advertiser can specify or request certain time periods; for ex-
ample, ROS10:00 a.m. - 4:00 p.m.
Monday - Friday.
49) Run of schedule (ROS). Broadcast commercial announcements that can
be scheduled at the station's discretion anytime; in some cases, the advertiser can specify or request certain time periods; for ex-
ample, ROS
50) Open
rate: The maximum rate charged by a magazine.
51) Road block
: Method of scheduling broadcast commercials to obtain maximum reach
by simultaneously showing the identical advertisement on several different
channels.
52) On sale date: The
date when Magazine hits the stand which is different from cover date.
53) Duplication: The
estimated number of people who read two or more given publications. A
duplication table measures the crossover of readership
54) Opportunities
To See (OTS): OTS is, total number of times the
publications / spots in the schedule are (potentially) seen by the target
audience. OTS = Readership x insertions
55) Short
rate: Charges resulting from
the recalculation of an advertiser's rate after failing to fulfill contract
stipulations.
56) Gutter: The inside
page margins where a publication is bound. The inside margins of two pages that
face each other in a print publication.
57) Stripping: A TV
scheduling format where programmes are broadcast on the same regular time slot
throughout the week.
58) Pulse: pulse is a period of intense advertising activity. The pulses can occur
at the start while launching a new product. There can a promotional pulse of
one shot, e.g., financial advertising of a company’s issue
