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Media buying

Week 9, class 1 — March 19, 2013

Stacy Forster

on 3 March 2015

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Transcript of Media buying

Media buying
How do you select media?
Base decisions on
What media does your target use?
How much can you afford?
"Media departments are no place for guessing. With millions – even tens of millions – of dollars at stake, clients want hard data showing that their budgets are being well spent."
– MediaBank media
buying executive
total number of impressions
Gross impressions =
Gross impressions
1 million copies
read by 2 million people
GI=2 million
1 million copies
read by 2 million people per issue
3 times
GI=6 million
total number of exposures
Gross ratings points =
GRP is a different measure of exposure
gross rating points = rating x insertions
or frequency x % reached
then add total of all vehicles
Effective frequency
Effective frequency is the
optimal point of repeat exposures for an ad
One person's opportunity to be exposed to an ad one time
Overall reach: Percentage of an audience (household) out of the total number of people (household) who see it at least once

Target reach: Percentage of an audience out of the total number of the target audience
Frequency: Total number of times an audience is exposed to an ad
The rule of thumb is a
minimum of 3 exposures
Too much exposure means people will get sick of it
Too little exposure means people won't remember it
Varies by message complexity
Varies by strategic goals
Cost per thousand
Indicates the cost to expose 1,000 audience members to an ad
Use to compare within a medium
Indicates the cost in relation to ratings
Cost to deliver an ad to
1% of the population
Cost for one gross rating point (GRP)
Cost per point
Understand your budget
Decide what media vehicles to use
Determine which media are in line with strategy
Allocate money for impact media
Allocate the rest of the budget
Divide the amount allocated by cost per point
Calculate gross rating points
Distribute gross rating points across the year
Repeat the process for other media
Total media budget: $50 million
Two Academy Award ads: 2 x $1 million = $2 million
Six College Bowl game ads: 6 x $350,000 = $2.1 million
Two Super Bowl ads: 2 x $2 million = $4 million
Two months of outdoor: 2 x $1.7 million = $3.533 million
Impact media
Local prime time TV: 35% of remaining budget
.35 x 38.367 million = $13.429 million
$13,428,450/33,103 CPP = 405 rating points
Place 100 in March, 75 in May, 75 in October
and 155 in December
Leaves $24.938 million

Repeat process for other media
Diagram media buys in flow chart
Traditional media
Total spent on impact media = $11.633 million
Amount remaining = $38.367 million
Total media budget: $50 million
Total Unduplicated Reach and Frequency
Choose media with greatest reach within target population, add those with most incremental benefit
Percentage of an audience exposed at least once
CPM = cost x 1,000 / readership
CPP: cost of ad / program or issue rating
Share of voice
Compares your budget to competitors'
Your product represents 25% of the market
You want to spend 25% share of voice in category
to remain competitive

Total ad spending in category = $50 million
25% is $12.5 million
$305,000 ad in People magazine x 1,000

43.6 million readers
= $7.00
$320,000 for ad on The Voice

5 rating
= $64,000
(GRP may be more than 100 because of duplicates)
Survivor: Household rating = 6
Insertions = 8
GRPs = 48
American Idol: Household rating = 9
Insertions = 8
GRPs = 72
Amazing Race: Household rating = 7
Insertions = 8
GRPs = 56
Total GRP = 176
$209,805 ad in US magazine x 1,000

13,566,000 readers
= $15.47
Based on gross impressions
Used to measure size of audience reached
A measure of the total amount of the advertising exposures produced by a specific media vehicle or a media schedule during a specific period of time. It is expressed in terms of the rating of a specific media vehicle (if only one is being used) or the sum of all the ratings of the vehicles included in a media schedule. It includes any audience duplication and is equal to the reach of a media schedule multiplied by the average frequency of the schedule.
— The American Marketing Association
share of voice
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