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- Reach: The ability of any medium to effectively reach
people in any target audience tapers off at any point. This varies
by medium, but anyone who has spent time with media modeling via
tools like Telmar and IMS will see that, for most media
types, there is a point of diminishing returns where it takes a
significant increase in dollars to add more reach to the plan
within the same medium. For many media types, that level is at
65-70% reach within the medium. Going from 70% reach in some media
to 80% reach involves a significant incremental budget.
And, while reach is being added, most of the weight is going
against consumers who have already been exposed to the message an
adequate number of times. Adding a second medium can often produce
quantum leaps in target audience reach and better distribution of
frequency.
A good exercise if you have your entire budget in one medium is
to take 1/3 of the budget and allocate it to the medium of second
choice for your category and compare the resulting reach and
effective reach results.
- Message distribution: Even the most effective piece of
communication loses impact after a certain number of exposures.
This is often referred to as burnout. A look at frequency
distribution of the campaign will often shed light on the point of
diminishing returns against your target.
- Communication characteristics: Different media have
varied communications characteristics and relying on a single
medium is often limiting. Media building blocks are needed to
address many of a brand's goals. An example is when TV is the
primary medium but is so expensive that a brand cannot afford TV
all of the weeks of the year. For many advertisers, print is often
used as the base media to provide continuity. Online has many
characteristics of print in this scenario. Portal deals, keywords
and other tactics can provide continuity of messaging at lower
CPMs than TV. Also, like print, online provides significant weight
against the lighter quintiles of TV viewing, reaching that upscale
consumer who does not get enough frequency in most TV only
campaigns.
- Target lifestyle: More and more media is consumed in an
impressionistic manner. People gather bits of data from different
sources to construct the whole picture. (See Mediasmith's Anvil from July 15, 2003 for more
information on this.) This phenomenon is especially true among
younger demographics. The same is true with advertising messages.
- Surround sound is a tactic that is often used to
address the above lifestyle realities. With a surround sound
strategy, the campaign attempts to reach the consumer at different
points in their day e.g., morning radio or TV news, news,
business, resource or shopping web sites during the day,
out-of-home advertising during the afternoon commute and prime
time or late night television. Through a strategy like this, each
impression builds on the other by reaching the consumer in a
different frame of reference and making each incremental
impression more effective.
Media Allocation Models
Both IMS and Telmar have the capability to provide research
across all media. Most media people use these vendors to get
information such as reach and frequency analyses for one or two
media. The powerful optimizers and allocation models within these
sources can be of great assistance in finding the right level of
interactive within the overall media mix.
Where Online Complements Other Media
For decades, contextual placements have been the hallmark of many
campaigns. For example, putting golf equipment ads on golf
tournament TV shows and in golfing magazines.
The Web has a great availability of contextual placements. Today,
in addition to buying ads from sites that are related to what you
are selling, you can buy contextual keywords from organizations like
Google and Sprinks who will place your advertising on other sites
where there is related editorial.
Listing web addresses in ads (especially print) allows people to
more fully explore a company's products, find store locations and
get more product or service info. Advertisers often can start the
sales process through such a prompt.
As mentioned above, you can reach light consumers of other media,
especially television. A simple quintile analysis using MRI or Simmons data will show
you this.
The Web is especially effective at reaching people during the
day. In fact, it has been established that young, high income, high
education consumers' total online media consumption exceeds that of
TV. For more on this go to the Online Publisher's Association OPA Media
Consumption Study from January of 2002.
Another factor is that the Web can reach people when they have
actually started the buying process (i.e., looking for a car,
planning a trip, buying a house, etc.). Much of this market is
served either by search or by "in-market" sites, defined as the
places on the Web that a given category of buyers go to for
information prior to making a purchase. For example, in the
automotive arena, The Kelly Blue Book site, Edmunds.com, AutoWeb,
AutobyTel, Cars.com or MSN Auto are all scoured by many who are
shopping for a new or used car or truck.
Industry Work Being Done
Standards are important. In the early days, the Internet industry
had so many factions that standards were elusive. Today, there are
many industry efforts working towards standardization. Groups like
the ARF's Online
Media Council (full disclosure, Dave Smith is chair of this
council), the Media Ratings Council, the AAAA's, the IAB, the OPA, iMedia and
other organizations are contributing to standards.
Some examples:
- The MRC, AAAA's and IAB announced on 9/24/03 their
collaboration on the issuance of new, more detailed guidelines for
interactive advertising campaign measurement (impression
definition). See MediaPost's Media Daily News of 9/24/03 for the
full story.
- The ARF continues to work with the research companies (UCMs),
the third party ad servers (SCMs) and the media reporting
companies like Telmar and IMS to study related issues and
encourage standards. (See Online R/F and GRP series articles
within MSN Agency
Relations).
- Ad units: The major sites have worked with the IAB to
standardize ad unit offerings. The Universal Ad Package is the latest example of
this.
- Best practices: For more information on best practices work,
click on best practices within the MSN Agency Advantage for a
wealth of information and studies.
Resources
Many of the companies listed in this article are resource rich.
If you do nothing but follow the links in this article and check out
the resources on the various sites, you should have enough resources
to last you a lifetime in the media business. Of course, there are
other sites too.
Next month we'll get into the topics of ROI, payout and media
efficacy.
With help from the expert, David L. Smith, we provide regular
updates on developments in online reach/frequency. He'll help you
understand the issues and how they affect your online media
decisions.
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David L. Smith is President and CEO of Mediasmith,
Inc.
David L. Smith is a nationally known expert in the areas of
new media application, media strategy and media planning. A
thirty-nine year veteran in the advertising media management
arena, Smith has a major involvement in national committee
work to establish and refine standards in metrics, business
practices and financial issues for Interactive advertising
with organizations such as the AAAAs, IAB, OPA and the ARF. He
currently chairs the Online Media Council for the ARF.
A University of Washington graduate, Smith is married with
a twelve-year-old son; plays guitar; and is a gourmet Chinese
cook. He is an active member of the Board of Directors for the
San Francisco Boys Chorus. You'll find him at the office early
most mornings unless he is traveling with his
family. |
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Karen T. McFee is Executive Vice President of Mediasmith,
Inc.
Karen T. McFee has twenty-five years of experience in
advertising media management with Foote, Cone and Belding,
Ketchum Advertising and Hawk Media. As Executive Vice
President of Mediasmtih, Inc. Karen has become a recognized
expert in optimizing the execution of media to secure the best
of what's available for the client. Her account experience
includes retail, food, business-to-business, apparel, travel,
entertainment, media and technology with broad expertise
across all media categories.
Karen is a graduate of Northern Illinois University, is
married with one child, and enjoys travel and photography in
her free time. |
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