Media strategy and media budgets

Extract

[...] on trade Regression Analysis Based on historical patterns of sales and advertising It is important to isolate the carry over impact of previous advertising Impact of creative and media mix should be considered Impact of other marketing variables must be factored The competitor's advertising and other environmental factors must be considered The Problems Calls for statisticians Measuring the carry over effect of advertising is difficult Lack of variability of advertising data other than seasonality effect Lack of data on confounding factors competitor's actions Data may be faulty, inadequate, expensive to procure Percentage of Sale method of budgeting may have been adopted Optimal Repetition Frequency Number of consumers to be Reached to achieve the sales objective X Number of ad exposures - Frequency needed for each consumer in a purchase cycle for the advertising objective to be met. [...]

[...] pages Copy execution Ads that resemble editorial are read more Scheduling & Timing Decisions Media schedules are based on and reflect Advertising Objectives reach' or ‘shift in attitude' And on how quickly Attitude is likely to decay Scheduling strategies detail the media strategy Flighting alternating bursts with periods of inactivity Long purchase cycle products when wear-in and wear out is slow high peaks of recall are required seasonal sales Pulsing continuous base level advtg. augmented by intermittent bursts - Frequently purchased products when decay is fast continuous levels of high recall are not needed Continuous or Even limited advertising spread out evenly Rarely purchased services and products quick decay, high levels of recall are not needed Media Buying Media Buying - space / time can be through The Media Buying Houses / AOR (agency on record) The creative agency In-house Rates are negotiable depending on the supply and demand Upfront buys Scatter buys Rates vary with specificity of the spot / position RODP run of day part - TV ROT run of time - radio ROP [...]

[...] Sales is also affected by: The type of creative The selection of media The selection of markets The advertising impact on is sales immediate Difficult to predict shape of graph and spends' parameters) - linier / curved / S shaped The market is a dynamic environment and this relationship changes through time Getting Past the Problems of Marginal Analysis Various Budgeting Decision Rules Percentage of sales All you can afford Competitive parity Objective and task Data based response function approaches Field experimentation Split-cable testing Regression analysis Optimal repetition frequency Budgeting Decision Rules Percentage of sales Does not consider the dynamic brand situations and leads to - established brands over spending young new entrants under spending repositioned brands under spending All you can afford -The premise Sales are independent of / the cause of advertising expense Competitive parity -The wrong assumptions Industry is spending at the optimum level Each Company's needs are not unique Objective and task approach Assumes a causal flow from advertising to sales Market Experimentation Advertising spends are deliberately and systematically varied across areas. [...]