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The Right Media Mix
And Risks of Getting It Wrong
June 27, 2013
Half the money I spend on advertising is wasted;
the trouble is I don’t know which half.
- John Wanamaker
Media Landscape
What is “media”?
What is “media”?
$297,981,778
Louisiana Television Spending in 2011
U.S. Major Media Ad Spending, by Media, 2009-2015
billions
2009 2010 2011 2012 2013 2014 2015
TV $53.8 $59.0 $60.5 $65.0 $65.0 $67.0 $68.0
Internet $22.7 $25.8 $28.5 $32.6 $36.0 $40.5 $44.5
Newspapers $24.8 $22.8 $21.4 $20.7 $20.2 $20.0 $19.8
Radio $14.3 $15.3 $15.7 $16.4 $16.7 $17.1 $17.2
Directories $10.3 $9.3 $8.2 $7.3 $6.5 $5.7 $5.0
Magazines $15.5 $14.7 $13.9 $13.2 $12.6 $12.1 $11.6
Outdoor $5.9 $6.1 $6.4 $6.8 $7.1 $7.4 $7.6
Total $147.3 $153.0 $154.6 $162.0 $164.1 $169.8 $173.7
Media Landscape
Establishing Goals
Types Of Goals
Establish Differentiation
Promote Services, Location(s)
Communicate Values, Awards
Awareness, Belief, Opinion
Lead Generation – Phone Call, Email, Forms
Location Traffic
Sales
Share Of Voice
Quantifying Goals
Media is about communicating with audiences.
To achieve success for any campaign the correct amount of
people must act appropriately.
How many people will it take to embrace your organization’s
services?
Hospital Client Goal: Fill 100 Beds
Quantify the goal:
Average hospital stay is 3 days
365 days / 3 = 121.66 patients per bed
121 patients x 100 beds = 12,166 people annually
Parish population of 228,000
5.3% of parish must get admitted annually
Client Goal: Fill 500 Seats
Quantify the goal:
500 people are need to attend a VIP event
Direct mail is the preferred tactic
Previous campaigns have netted a 2.5%
response rate
20,000 direct mail pieces should be dropped
(20,000 pieces x 2.5% return = 500 Attendees)
Media Landscape
Establishing Goals
Understanding Audiences
Not a one size fits all, must break down by life stage
– 18-24
Women needing regular checkups
– 25-40
Primary segment for pregnancy and family services
– 40-50
– 50+
Rotate creative based on:
Campaign (Maternal Fetal Health, OB/GYN, breast
cancer)
Seasonality (Breast Cancer Awareness Month, Mommy
to Be Expo)
Site (BabyCenter for Pre-Natal/Family
Service/Pediatrician)
Women’s Services
By using research tools to identify
demographic segments for targeting
services, we can see that the
audience for digestive disorders has
a slight female skew but primarily
affects adults over the age of 45
years.
Next step would be to overlay
demographic segment with lifestyle
statements.
Identifying Demographic Segment
Source: Simmons, Fall 2008, full year
Consulted
Gastroenterologist
in last 12 months
Ailments:
Digestive
Disorders
Total Sample 100 100
GENDER: MALE 84 75
GENDER: FEMALE 115 123
AGE: 18 - 24 29 56
AGE: 25 - 34 52 84
AGE: 45 - 54 123 108
AGE: 55 - 64 145 111
AGE: 65+ 155 138
M18 - 24 12 37
F18 - 24 47 76
Male 25 - 34 26 51
Female 25 - 34 75 114
Male 35 - 44 81 83
Female 35 - 44 63 90
Male 45 - 54 104 87
Female 45 - 54 142 130
Male 55 - 64 142 81
Female 55 - 64 147 141
Male 65+ 115 97
Female 65+ 187 171
Media Landscape
Establishing Goals
Understanding Audiences
Media Mix
Consumers use media channels at varying degrees of intensity
and for various reasons.
Its critical to understand the role that each media channel
plays within a consumer’s life and life stage.
Daily Time Spent with Media According to U.S.
Consumers, 2010-2012
hrs:mins
2010 2011 2012
TV 5:27 5:06 5:05
Internet 2:34 2:56 3:07
Radio 1:52 2:00 1:50
Video games 0:26 0:39 0:48
Newspapers 0:20 0:19 0:18
Magazines 0:15 0:14 0:14
Mass reach, product launch, efficiency, visual, influence
Traffic builder, targeted, frequency, promotional
Informational, targeted, graphic impact, influence
Local traffic builder, targeted, promotional, immediacy
Saturation coverage, impact, geographical
Immediacy, targeting, tracking, optimization, flexible,
two-way mass medium
Promotional, impact, WOM, sampling
Conversational, engaging, WOM
Broadcast TV Cable TV Radio
National Local National Local National Local
Audience
Selectivity
Good Good Good Good Good Good
Reach Potential High High Low Low Average Average
Speed Of
Audience
Accumulation
Fast Fast Fast Fast Fast Fast
Geographic
Flexibility
Poor Good Poor Best Poor Best
Lead Time
Needed To Buy
Long Shorter Long Shorter Long Shorter
Advertising
Exposure
Control
Mostly yes Mostly yes Mostly yes
Mostly
yes
Yes Yes
Location At
Time Of
Exposure
Mostly at
home
Mostly at
home
Mostly at
home
Mostly
at home
Mostly out
of home
Mostly
out of
home
Magazine Newspaper Outdoor Transit Interactive
Audience
Selectivity
Better Good Poor Poor Good
Reach Potential Average Low High High Average
Speed Of
Audience
Accumulation
Slow Fast Slow Slow Good
Geographic
Flexibility
Good Good Best Best Good
Lead Time
Needed To Buy
Long Short Long Long Shorter
Advertising
Exposure Control
No No No No Yes
Location At Time
Of Exposure
Primarily in
home; heavy
out of home
In home and
out of home
Out of
home
Out of
home
In home and
out of home
Reach and Frequency
REACH: The percent of different people or households exposed to
a specific media schedule within a given period of time, expressed
as a percentage
An unduplicated or net audience
Can be used to refer to a single media property or a media
schedule
FREQUENCY: The average number of times a target audience or
household is reached by a media schedule
Industry average for planning is a minimum of 3x average
frequency
It gives you a sense of how much media delivery will be
generated
If your brand has something new today or is using a media
class for the first time, reach should be emphasized
Emphasize frequency if your product competes in a highly
competitive market or is purchased frequently
Reach & Frequency can be used to compare alternatives
within a media mix and judge different combinations of
media forms
Underlying assumptions:
The more often people are exposed, the more likely they are to learn and retain information
Too many exposures can bore, annoy or have no incremental increase in learning
The more time between exposures, the more likely they are to forget what they learned
Reach and Frequency
Share of Voice: the amount of spending in a market in a category
Can be defined by brand, product set, etc.
When planning for a campaign in a highly competitive arena, you
need to analyze what the competition is doing.
If you have sales figures among the competitive set, you can analyze
SOV (Share of Voice) versus SOM (Share of Market)
Start with requesting competitive spending reports
Gauge if you are running sufficient levels, what your share of voice is in
the market and what is needed to be to “shout louder”
You might be able to request competitive spending by products, by
month, by quarter, by tactic, by market, etc.
Share of Voice – Competitive Analysis
Continuity:
- Relatively low media weight
- Continuous (or near continuous)
on-air presence
- Typical for recency approach
Flighting:
- High media weights
- Short bursts
- Typical for frequency optimization
Pulsing:
- Combines the advantages of
flighting and continuity
Other strategies:
- Others are possible, choice
depends on objectives and
given situation
Scheduling Strategies
Media Landscape
Establishing Goals
Understanding Audiences
Media Mix
Tracking and Measuring
-
5
10
15
20
25
30
35
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
Ad Spend
ER Visit
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
Sandwich
Board
Sidewalk Chalk
Skywriting
Building Mural
Pageviews
Impressions
Pageviews
Media Landscape
Establishing Goals
Understanding Audiences
Media Mix
Tracking and Measuring
Risks of Getting It Wrong
Potential shakeup in healthcare category ad spending and noise
due to Obama Care
4,996,074
LA’s population in 2020
(+9.95%)
Healthcare is one of the fastest
growing verticals for online
advertising
The rise in “neighborhood medical centers” will increase pressure on
the current hospital business models and impact consumer perceptions
and behavior.
A growing Louisiana will continue to need healthcare solutions, and will
turn to someone.
The saturation of information, opinions and referral options on the
internet (I.E.: WebMD, Social Media, Blogs) will continue to shape
consumer’s decision making process.
Will they be turning to your organization for that solution?
A misaligned media mix is more than wasted money.
It’s a missed opportunity to capture a new customer. Or continue to
build experiences with an existing customers.
Getting the media mix wrong is lost business that you may never get
back.
Media Landscape
Establishing Goals
Understanding Audiences
Media Mix
Tracking and Measuring
Risks of Getting It Wrong
Parting Words
Establish quantifiable goals
Find your audience
Understand their communication habits
Own a media channel
Utilize unique tactics
Track and measure
Optimize against goals
Thank you
www.morganandco.com
www.facebook.com/MorganAndCoMedia

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The Right Media Mix: Understanding Audiences and Tracking Results

  • 1. The Right Media Mix And Risks of Getting It Wrong June 27, 2013
  • 2. Half the money I spend on advertising is wasted; the trouble is I don’t know which half. - John Wanamaker
  • 6.
  • 7.
  • 8.
  • 9. $297,981,778 Louisiana Television Spending in 2011 U.S. Major Media Ad Spending, by Media, 2009-2015 billions 2009 2010 2011 2012 2013 2014 2015 TV $53.8 $59.0 $60.5 $65.0 $65.0 $67.0 $68.0 Internet $22.7 $25.8 $28.5 $32.6 $36.0 $40.5 $44.5 Newspapers $24.8 $22.8 $21.4 $20.7 $20.2 $20.0 $19.8 Radio $14.3 $15.3 $15.7 $16.4 $16.7 $17.1 $17.2 Directories $10.3 $9.3 $8.2 $7.3 $6.5 $5.7 $5.0 Magazines $15.5 $14.7 $13.9 $13.2 $12.6 $12.1 $11.6 Outdoor $5.9 $6.1 $6.4 $6.8 $7.1 $7.4 $7.6 Total $147.3 $153.0 $154.6 $162.0 $164.1 $169.8 $173.7
  • 11. Types Of Goals Establish Differentiation Promote Services, Location(s) Communicate Values, Awards Awareness, Belief, Opinion Lead Generation – Phone Call, Email, Forms Location Traffic Sales Share Of Voice
  • 12. Quantifying Goals Media is about communicating with audiences. To achieve success for any campaign the correct amount of people must act appropriately. How many people will it take to embrace your organization’s services?
  • 13. Hospital Client Goal: Fill 100 Beds Quantify the goal: Average hospital stay is 3 days 365 days / 3 = 121.66 patients per bed 121 patients x 100 beds = 12,166 people annually Parish population of 228,000 5.3% of parish must get admitted annually
  • 14. Client Goal: Fill 500 Seats Quantify the goal: 500 people are need to attend a VIP event Direct mail is the preferred tactic Previous campaigns have netted a 2.5% response rate 20,000 direct mail pieces should be dropped (20,000 pieces x 2.5% return = 500 Attendees)
  • 16.
  • 17. Not a one size fits all, must break down by life stage – 18-24 Women needing regular checkups – 25-40 Primary segment for pregnancy and family services – 40-50 – 50+ Rotate creative based on: Campaign (Maternal Fetal Health, OB/GYN, breast cancer) Seasonality (Breast Cancer Awareness Month, Mommy to Be Expo) Site (BabyCenter for Pre-Natal/Family Service/Pediatrician) Women’s Services
  • 18. By using research tools to identify demographic segments for targeting services, we can see that the audience for digestive disorders has a slight female skew but primarily affects adults over the age of 45 years. Next step would be to overlay demographic segment with lifestyle statements. Identifying Demographic Segment Source: Simmons, Fall 2008, full year Consulted Gastroenterologist in last 12 months Ailments: Digestive Disorders Total Sample 100 100 GENDER: MALE 84 75 GENDER: FEMALE 115 123 AGE: 18 - 24 29 56 AGE: 25 - 34 52 84 AGE: 45 - 54 123 108 AGE: 55 - 64 145 111 AGE: 65+ 155 138 M18 - 24 12 37 F18 - 24 47 76 Male 25 - 34 26 51 Female 25 - 34 75 114 Male 35 - 44 81 83 Female 35 - 44 63 90 Male 45 - 54 104 87 Female 45 - 54 142 130 Male 55 - 64 142 81 Female 55 - 64 147 141 Male 65+ 115 97 Female 65+ 187 171
  • 20.
  • 21. Consumers use media channels at varying degrees of intensity and for various reasons. Its critical to understand the role that each media channel plays within a consumer’s life and life stage. Daily Time Spent with Media According to U.S. Consumers, 2010-2012 hrs:mins 2010 2011 2012 TV 5:27 5:06 5:05 Internet 2:34 2:56 3:07 Radio 1:52 2:00 1:50 Video games 0:26 0:39 0:48 Newspapers 0:20 0:19 0:18 Magazines 0:15 0:14 0:14
  • 22. Mass reach, product launch, efficiency, visual, influence Traffic builder, targeted, frequency, promotional Informational, targeted, graphic impact, influence Local traffic builder, targeted, promotional, immediacy Saturation coverage, impact, geographical Immediacy, targeting, tracking, optimization, flexible, two-way mass medium Promotional, impact, WOM, sampling Conversational, engaging, WOM
  • 23. Broadcast TV Cable TV Radio National Local National Local National Local Audience Selectivity Good Good Good Good Good Good Reach Potential High High Low Low Average Average Speed Of Audience Accumulation Fast Fast Fast Fast Fast Fast Geographic Flexibility Poor Good Poor Best Poor Best Lead Time Needed To Buy Long Shorter Long Shorter Long Shorter Advertising Exposure Control Mostly yes Mostly yes Mostly yes Mostly yes Yes Yes Location At Time Of Exposure Mostly at home Mostly at home Mostly at home Mostly at home Mostly out of home Mostly out of home
  • 24. Magazine Newspaper Outdoor Transit Interactive Audience Selectivity Better Good Poor Poor Good Reach Potential Average Low High High Average Speed Of Audience Accumulation Slow Fast Slow Slow Good Geographic Flexibility Good Good Best Best Good Lead Time Needed To Buy Long Short Long Long Shorter Advertising Exposure Control No No No No Yes Location At Time Of Exposure Primarily in home; heavy out of home In home and out of home Out of home Out of home In home and out of home
  • 25.
  • 26. Reach and Frequency REACH: The percent of different people or households exposed to a specific media schedule within a given period of time, expressed as a percentage An unduplicated or net audience Can be used to refer to a single media property or a media schedule FREQUENCY: The average number of times a target audience or household is reached by a media schedule Industry average for planning is a minimum of 3x average frequency
  • 27.
  • 28. It gives you a sense of how much media delivery will be generated If your brand has something new today or is using a media class for the first time, reach should be emphasized Emphasize frequency if your product competes in a highly competitive market or is purchased frequently Reach & Frequency can be used to compare alternatives within a media mix and judge different combinations of media forms Underlying assumptions: The more often people are exposed, the more likely they are to learn and retain information Too many exposures can bore, annoy or have no incremental increase in learning The more time between exposures, the more likely they are to forget what they learned Reach and Frequency
  • 29. Share of Voice: the amount of spending in a market in a category Can be defined by brand, product set, etc. When planning for a campaign in a highly competitive arena, you need to analyze what the competition is doing. If you have sales figures among the competitive set, you can analyze SOV (Share of Voice) versus SOM (Share of Market) Start with requesting competitive spending reports Gauge if you are running sufficient levels, what your share of voice is in the market and what is needed to be to “shout louder” You might be able to request competitive spending by products, by month, by quarter, by tactic, by market, etc. Share of Voice – Competitive Analysis
  • 30. Continuity: - Relatively low media weight - Continuous (or near continuous) on-air presence - Typical for recency approach Flighting: - High media weights - Short bursts - Typical for frequency optimization Pulsing: - Combines the advantages of flighting and continuity Other strategies: - Others are possible, choice depends on objectives and given situation Scheduling Strategies
  • 31. Media Landscape Establishing Goals Understanding Audiences Media Mix Tracking and Measuring
  • 34.
  • 35. Media Landscape Establishing Goals Understanding Audiences Media Mix Tracking and Measuring Risks of Getting It Wrong
  • 36. Potential shakeup in healthcare category ad spending and noise due to Obama Care 4,996,074 LA’s population in 2020 (+9.95%) Healthcare is one of the fastest growing verticals for online advertising
  • 37. The rise in “neighborhood medical centers” will increase pressure on the current hospital business models and impact consumer perceptions and behavior. A growing Louisiana will continue to need healthcare solutions, and will turn to someone. The saturation of information, opinions and referral options on the internet (I.E.: WebMD, Social Media, Blogs) will continue to shape consumer’s decision making process.
  • 38. Will they be turning to your organization for that solution? A misaligned media mix is more than wasted money. It’s a missed opportunity to capture a new customer. Or continue to build experiences with an existing customers. Getting the media mix wrong is lost business that you may never get back.
  • 39. Media Landscape Establishing Goals Understanding Audiences Media Mix Tracking and Measuring Risks of Getting It Wrong Parting Words
  • 40. Establish quantifiable goals Find your audience Understand their communication habits Own a media channel Utilize unique tactics Track and measure Optimize against goals