-Media types -Media selection -Media scheduling [SLIDE 1] The first media decision is that of deciding which medium – the channel used to convey the message to the target market – should be used for the advertising campaign. There is rarely a single medium used, so all the media must be evaluated. Media planning is the series of decisions advertisings make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target audience. Let us discuss the three key areas of media planning: -Media types -Media selection -Media schedule [SLIDE 2] There are many types of media, and as will be described, a number have begun to overlap due to broadband access to the Internet. The main types of media are: -Newspapers -Magazines -Radio -Television -Internet -Outdoor media -Alternative media [SLIDE 3] Newspapers are one of the oldest forms of mass media. As there are not many town criers, we can consider it the oldest medium available other than graffiti. While some newspapers, such as USA Today, the Wall Street Journal, and even the New York Times and Washington Post have national exposure, the vast majority of newspapers are local, focused on news in a narrow geographic area. Newspapers, therefore, provide broad coverage in that area, so they can reach many consumers, but it is hard to target narrow demographics. Unlike magazines and the Internet, advertisements are typically limited to black and white. While the growth of the Internet has put many newspapers out of business, people mistakenly think that means newspapers only target an older demographic. However, studies have shown that newspaper web sites attract a broader age group and can be of interest to advertisers who are not only interested in Baby Boomers. One way to manage costs in newspaper advertising is with cooperative advertising, an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer’s brand. [SLIDE 4] Magazines, like newspapers, began in the print world but also have been moving to the Internet to retain customers and gain new ones. The first advantage of print magazines over newspapers is the use of color for imagery, as usually newspapers remain black and white. The second advantage is that magazines focus on specific customer segments, better segmenting the market. AARP, National Geographic, Better Homes & Garden, and O all have specific demographics that advertisers can use to better target their markets. The result of that targeting is that there is a higher cost per contact for magazines compared to newspapers, but a potentially lower cost of acquisition due to a higher percentage of the target market per contact [SLIDE 5] Radio is a medium that allows for significant segmentation through the many stations for different types of music and talk. In addition, given the limited range of radio broadcasts, like newspapers radio is typically geographically limited. The result is that local advertisers can heavily use radio, contributing to over 75 percent of radio station revenue. As with newspapers, radio lends itself well to cooperative advertising. The spread of broadband access has meant that radio is seeing pressure from music streaming services such as Spotify, Pandora, and IHeartRadio. However, while many customers like the customizability of streaming services, there is a subscription cost to avoid advertising and to access advanced features. In recent years, radio revenue has grown slightly while consolidation has resulted in fewer independent vendors. [SLIDE 6] Television as a medium includes broadcast (both networks and independent stations), cable, and satellite television. A key advertising method used both in television and in movies is product placement. A manufacturer or retailer can pay the production company to display a good or service in a movie or a television episode. Advertising costs vary widely with television, depending on viewership. For instance, the American football Super Bowl charges far more than does a late-night movie broadcast on a local, independent, station. The variety of cable stations sees the same cost variability. As advertisements have very limited life in television, repetition matters. Digital Video Recorders (DVRs) are technology provided by cable companies that let customers record shows for later viewing (time shifting). One marketing challenge with them is that it is easier for customers to skip advertisements than it is during a live broadcast. The Internet section will describe a key change in television viewing, supported by broadband Internet access. One advertising tool used in television is the infomercial, a 30-minute or longer advertisement that looks more like a television talk show than a sales pitch. [SLIDE 7] Internet advertising began before the Web, but the addition of a graphical layer grew the dollars being spent. Heavily-visited web sites can charge more for advertisements. Search Engine Marketing (SEM) and Search Engine Optimization (SEO) are key methods of Internet advertising. SEM is the process of paying search engines such as Google and Bing to display an ad when a search term is used. SEO is optimizing text on a web site so that the site shows up higher on the search results. Advergaming is placing ads in web based, mobile, console, or other handheld games. Streaming services, already mentioned, are also changing television. While digital video recorders (DVRs) allowed customers to record programming from their service providers, over-the-top (OTT) media have overtaken DVRs as a tool. Companies such as Netflix and Amazon provide shows directly to customers via a subscription that is separate from that of the cable company. The Internet is changing society at large and so has a major impact on marketing. Just as with other media, advertisers can charge for ad placements, but payments are more complex. While the others charge based simply on the number of views, with some demographic information which can adjust prices, the Internet has more options: -Pay-per-view (PPV): the same as other media. -Pay-per-click (PPC): money paid for the prospects who click on the ad. [SLIDE 8] Outdoor, or out-of-home, advertising is seen by people many times a day. They show up on Billboards, buses, bus stops, sports stadium, and in many more places. As outdoor media have a very broad audience, they are usually used to advertise convenience products, both goods and services. Outdoor advertising can also be locally customized, meaning that they are heavily used by local businesses. [SLIDE 9] The previously-described media channels do not describe all channels, just the main ones. Advertisers are always working on new methods of reaching the target audience. A few years ago, advertising started showing up in shopping carts, replacing the simple store name with an additional revenue stream that can catch the attention of a shopper. In-store kiosks can help advertise specific brands and help shoppers quickly order items. Some marketers have even begun helping companies replace the ubiquitous telephone "hold" music with ads, movie trailers, and more media that might keep a customer’s interest. [SLIDE 10] There are many factors involved in media selection. The key factors are: -Media mix: combination of media to be used for a promotional campaign. -Cost-per-contact: cost to reach one member of the target market. -Cost-per-click: Internet cost for a person clicking on an online ad. -Reach: the number of people in a target market exposed to an ad at least once during a specific length of time. -Frequency: the number of times an individual is exposed to the ad during a specific length of time. -Audience selectivity: the ability of the medium to reach a precisely-defined market. -Flexibility: the frequency with which the ad can be changed during a campaign. -Noise level: how much distraction from the ad exists in the medium. -Life span: How long does the message last. Radio needs repetition since the ad is quickly gone. -Media fragmentation: the variety of media options can make it difficult to find the right channel to best reach the target market. [SLIDE 11] After choosing the appropriate media, the marketer must plan when the ads appear. A media schedule is the designation of the media to be used, insertion dates, and length of advertising. There are four types of media schedules: -Continuous: advertising is run steadily throughout the advertising period; used for products in the later stages of the product life cycle. -Flighted: ads are run heavily every other month or every two weeks to achieve a greater impact with an increased frequency and reach at those times. -Pulsing: Uses continuous scheduling throughout the year coupled with a flighted schedule during the best sales periods. -Seasonal: runs advertising only during times of the year when the product is most likely to be used.