GUIDED NOTES 3.08 - PE - Manage media planning and placement to enhance return on marketing investment • PI - Determine advertising reach of sport/event media • PI – Calculate media costs

I. Advertising Reach and Frequency a. Reach and frequency are both _________________________ measures of advertising – often used to determine costs of media i. _________________________ is the # of times you wish to expose a targeted audience to your advertisements ii. _________________________ is the # of people in a targeted audience exposed to an ad or campaign at least one time during a designated time period iii. _________________________ is found by dividing the target audience exposed to the ad by the total target audience iv. Reach % = TA ÷ TTA 1. Example: The total target audience for the Carolina Tar Heels Football team is 1,500,000 and those exposed during an ad campaign is 375,000 2. _________________________÷ _________________________ = 25% 3. So ______________ of the total target audience saw the ad at least one time v. _________________________, subscriptions or _________________________ are best used to determine & calculate reach data vi. _________________________– is effective for consumer convenience goods like toothpaste (simple features) vii. _________________________ - # or % of consumers in a targeted audience exposed to an ad a specific minimum # of times (more appropriate for targeted SEM consumers) WHY?

II. Media Costs – How to determine? a. _________________________ (size of the audience) i. Is the most significant factor affecting media costs ii. In most cases, the _________________________ the media vehicle’s audience, the _________________________ the cost of advertising space or time will be. b. _________________________: Price lists showing rates for space or time c. Production costs vary a lot across different _________________________ i. High-quality _________________________ and _________________________ ads cost a great deal to produce ii. While _________________________ and _________________________ ads are relatively inexpensive to produce d. __________________________________________________ of ad i. _________________________, (day, night, drive time) ii. _________________________ of ads in print and broadcast media – what shows e. Available discounts i. _________________________ – frequency of purchase - _________________________ f. _________________________ i. narrowly defined audiences demand higher rates g. _________________________ i. credibility & prestige may influence consumers reaction to an ad h. _________________________ i. high quality = higher costs

III. Media costs types – Absolute and Relative a. _________________________ i. What is the total expenditure for an ad 1. __________________________________________________ 2. Cost for _________________________ and _________________________ purchased a. Check rate cards found in Standard Rate & Data Service (SRDS) directories for time & space costs b. _________________________ i. To determine if one media type is more efficient or cost effective over another ii. Use _________________________ - based on cost per thousand 1. Often used in _________________________ and internet iii. Use _________________________ - based on cost per rating point 1. Often used in _________________________ media and outdoor iv. Use _________________________ – based on gross rating points across a media platform

IV. Media costs – How to calculate? a. Cost per thousand (CPM) i. Multiply cost of the ad by _________________________ then divide by the number of people receiving the _________________________ (reach) ii. CPM = _________________________________________________________________ b. Example: i. Cost of ad is $50,000 ii. Total audience is 2,000,000 1. (_________________________ x _________________________) = $50,000,000 2. (_________________________ ÷ _________________________) = $25.00 c. Cost per rating point _________________________ i. Calculated to determine 1% of audience d. __________________________________________________ (GRP) i. (GRP) = (Reach (x) frequency) - to determine GRP and 240 GRP’s used as a standard of measurement ii. The cost per GRP is determined by _________________________ the total advertising expense by the __________________ of gross rating points iii. (GRP) cost = (Expenses ÷ GRP) e. Example: i. Total advertising expense is $20,000 ii. The gross rating points for the show is 210 1. $20,000 ÷ 210 = $95.24

V. Media costs for different mediums a. _________________________ i. Rates – how determined 1. _________________________ and_________________________ are primary factors – great for locals 2. less for local ads vs. national advertisers 3. information given through use of _________________________ ii. Types of rates 1. _________________________ – wherever newspaper places the ad 2. _________________________ – used for one time placement 3. Sliding scale rates – more ads will cost less per ad 4. _________________________ – ads and (FSI) will lower rate 5. Volume and consistency rates/discounts iii. Costs 1. Tend to be _________________________ than other print media 2. Position preferences a. Example: SEM advertiser wants ad placement in sports section instead of food or employment opportunity section 3. _________________________ requirements or including (FSI) free standing inserts 4. _________________________ - 2 different ads produced at same time b. _________________________ i. Rates – how determined 1. Circulation and target market are _________________________ factors for rates that reach specific readers for advertisers ii. Types of rates 1. __________________________________________________ rates 2. Volume and consistency rates/discounts 3. __________________________________________________ iii. Costs 1. Tend to be _________________________ than other print media 2. _________________________ – front and back cover, inside front 3. _________________________ 4. Full bleed pages 5. _________________________ 6. Spreads c. _________________________ i. Most effective way to promote a _________________________ to the public ii. _________________________ production lead time iii. Rates – how determined 1. _________________________ audience rating & time are the major factors, (Nielsen ratings) are GRP for television – advertisers will ask for this data 2. _________________________ (cost-per-point) x Nielsen ratings determine TV ad costs 3. _________________________ and _________________________ change based on local factors iv. Types of rates 1. _________________________ – prime time vs. other 2. National network, _________________________ or local network v. Costs 1. Are _________________________ than any medium 2. _________________________ - morning, afternoon, prime time, late night 3. _________________________ – peak winter season 4. _________________________ of ad impact ad & production costs d. _________________________ i. Effective for local & regional markets – _______________________________________ ii. Relatively short production lead time – ________________________________________ iii. Very good to hit your demographic target market iv. Rates, how determined 1. _________________________ & _________________________ are the major factors 2. Less than _________________________ but can still be expensive v. Type of rates 1. Offer the _________________________ of any medium 2. Run of schedule – (all __________ types lower costs) 3. _________________________ (TAPs) total audience plans 4. _________________________ and ________________________ rates/discounts vi. Costs 1. Are _________________________ than TV media 2. _________________________ – morning/evening drive 3. Production costs & ad 4. http://www.bestradiocommercials.com/?gclid=CN64k8z73bICFQsFnQodMH8AtA e. _________________________ i. Very popular 3rd to television and newspaper ii. Rates – how determined 1. _________________________ popularity - browser iii. Types of rates 1. _________________________ – cost per 1000 impressions 2. _________________________ – cost per click iv. Cost 1. _________________________ ads may be very cost effective 2. _________________________ – text, image, multimedia 3. _________________________ – banner, pop-up etc. 4. Placement in browsers 5. _________________________ f. _________________________ (outdoor and transit) i. Rates – how determined 1. _________________________ based on ad’s visibility, its location and population in area ii. Types of rates 1. http://clearchanneloutdoor.com/rates/ iii. Costs 1. _________________________ 2. _________________________ 3. Illumination/movement/3D iv. Production costs - _________________________ v. Types of out-of-home 1. __________________________________________________ – Spectaculars (as seen here) - Transit advertisements like subway, cabs, hot air balloons or busses 2. __________________________________________________ – very good at promoting an event throughout a metropolitan area – draws a lot of attention and is seen by a lot of consumers g. _________________________ i. Rates – how determined 1. Vary based on what you _____________________________________________ ii. Types of rates 1. Allows advertisers to target a _________________________ with the most cost effective manner but preparation time is _________________________ than radio and newspaper ads iii. Costs 1. __________________________________________________ rates 2. Production costs 3. __________________________________________________ 4. __________________________________________________ 5. Total costs can vary and at time be very expensive

VI. Selecting advertising media – Why a. Selection of media is _________________________ because it is the _________________________ expenditure of an ad budget b. Choosing the most _________________________ is essential to provide the most effective ad campaign c. Must select the _________________________ (s) that reaches the target market

VII. Factors impacting your media selection a. _________________________ i. Your overall goal of advertising b. _________________________ i. Identify their media-usage habits ii. You _________________________ waste circulation c. _________________________ i. Most will use the same media so look for alternatives d. _________________________ i. Most companies will have constraints that impact your selection- you can’t do everything you want e. _________________________ i. Nature of product 1. _________________________ or _________________________ may need demonstrating resulting in media selection – TV or magazines 2. Other products need different _________________________ 3. Provide examples for each media type f. _________________________ i. Location, place or _________________________ ii. Coverage should be same as product availability g. _________________________ i. Television and magazines require the _________________________ ii. Daily newspapers and radio require the _________________________ h. _________________________ media factors i. Measured _________________________ 1. Different _________________________ and types and believed the most important factor ii. Measure __________________________________________ 1. Total cost (varies by medium) 2. ____________________________________ (reaching potential prospects) 3. Advertisers use CPM, CPRP and GRP i. _________________________ media factors i. Not as easy to measure as _________________________ ii. _________________________ 1. Medium’s believability to consumers – take seriously iii. _________________________ environment 1. Each type appeals to a _________________________ group of consumers 2. The _________________________ or _________________________ of the media vehicle should compliment product 3. _________________________ of clutter can impact your ad – less is more 4. _________________________ – impression an ad will make on the target market consumer j. _________________________ k. _________________________ i. Reaching a _________________________ audience and exposing them at least _________________________ to your advertisement (reach) 1. Example: Advertising during The Super Bowl l. _________________________ i. Reaching a _________________________ audience more often to drive home the message (frequency) 1. Example: Multiple Renaissance Festival advertisements in newspaper, radio and TV in the Charlotte market

VIII. Buy advertising space/time a. _________________________ i. Choose a _____________________/______________________ type to reach your goals ii. Contact advertising manager b. _________________________ i. Rate cards ii. _________________________ and/or rating numbers c. __________________________________________________ i. Determine all costs for your _________________________ strategy ii. Make sure you can _________________________ your target market d. _________________________ i. _________________________ message ii. Pre-production process e. _________________________ i. Go for the numbers (CPM) ii. Adequate reach & _________________________ iii. _________________________ services iv. Negotiate the best price f. _________________________ i. ____________________________ - placement ii. __________________________________________________ iii. Reach & frequency g. _________________________ h. Confirmation of ad run i. _________________________ j. _________________________ i. Review for _________________________ ii. Propose additional strategies

IX. Choose appropriate media vehicles for sports/events a. __________________________________________________ i. Advertising goals ii. _________________________ target audience iii. Competition b. _________________________ media options & total costs i. List all ______________________ and _____________________ effectiveness and costs c. Select the _________________________ and _________________________ i. Review quantitative and qualitative factors ii. Select one that has _________________________, place & ______________________ d. Determine the _________________________ and _________________________ strategies i. Select degree of continuity desired ii. Should be chosen based on _________________________ needs and type of product iii. _________________________ – ads on a regular basis 1. Good for everyday products like groceries iv. _________________________ – intermittent scheduling 1. Great for _________________________ promotions like events 2. Great for introducing new products or events v. _________________________ – combination, low then high 1. Good for _________________________ consumers about your product 2. Coca Cola uses this strategy