|The complexity and proliferation of new technology, target marketing techniques, and the sheer number of media options have changed the advertising media function in recent years. This changing process includes increasing demands for cost control and efficiency. Accountability for advertising costs is more important than in the past. There is a trend towards localized media strategies, as well as the expansion of global markets.
Future trends in media will include:
Organization of the Media Function
A. Media Planner. Supervises all areas of the advertising campaign as it relates to media function
Few areas of marketing and advertising have experienced the change demonstrated by media planning in the last decade. The media has been driven by the changes in the number of media options as well as the by the increasing expenditures in media, and the financial risk associated by media-buying mistakes.
In 1999, total advertising expenditures were 185 billion. In 2005, this figure will increase to 264.3 billion, an increase of 43%. The media planner of 2010 will be dealing with media outlets that probably don’t exist today. It is an unbelievably complicated environment.
2005 (in millions)
The New Media Function
As the media adapts to new technology and methods of planning, there are a number of trends that set the tone for these changes and provide an assessment of the future of media planning and buying. Among the most important are convergence, interactivity, creativity, and optimizers.
Media planners use optimizing computer programs to budget advertising funds to those commercial spots that deliver the greatest number of prospects at the lowest cost per viewer (based on a mathematical technique developed by Harry Markowitz in the 1940’s) The job of the media planner is is to make a number of qualitative decisions about audience response and demographic value of an audience. In addition to television, we will soon see optimizing programs applied to magazines, radio, and other media in the near future.
Media executives must be analytical, creative, and strategic in their approach to the media process. A knowledge of statistics, mathematical skills, and organized thinking are minimum requirements for media planners. For those with the interest and competency, media planning offers an extremely exciting, lucrative, and challenging career in advertising.
The Media Plan - The complete analysis and execution of the media component of a campaign.
* CPM means cost per thousand. The CPM is a means of comparing media costs among vehicles with different circulation. Sample:
|CPM=ad cost x 1000, divided by circulation
Assume that McCall’s magazine has a circulation of 4.2 million and a four color page rate of $115,000. It’s CPM is calculated:
McCall's CPM = $115,000 x 1000 divided by 4,200,000 (circulation)
Answer - $27.38 Cost per Thousand for the ad
|Top 5 United States Media Specialist Companies (1998)
Company Billings (in millions)
Top 5 Worldwide Media Specialist Companies (1998)
1. Reach (also called coverage) is the number of different people exposed to a single medium or, in the case of a multimedia campaign, the entire media schedule. It may be expressed as the number of prospects or as a percentage of your target audience.
2. Frequency is the number of times that each person in the audience is exposed to your
3. Continuity is the length of time over which a campaign will run or the length of time that reach and frequency will be measured.
4. Budget is the major constraint of any advertising plan. The core consideration in all
Flighting is one of the most used advertising scheduling techniques. It consists of relatively short bursts of advertising followed by periods of total, or relative inactivity.