how to develop media budgets
TRANSCRIPT
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How Much? How to
Develop Media Budgets
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T O D A Y ’ S S P E A K E R S
Marlea Clark
• SVP, Marketing
• 20 years in Marketing and Publishing
Kathleen Jahnke
• Associate Media Director
• 10 years Multi-Channel Media Planning Experience
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W H E R E T O B E G I N ?
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A G E N D A
CONSUMER
A N A L Y Z E T H R E E K E Y A R E A S T O D E V E L O P B U D G E T S
BUSINESS MARKETPLACE
VS.
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CONSUMER
BUSINESS
MARKETPLACE
CONSUMER
BUSINESS
MARKETPLACE
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I D E N T I F Y T H E C O R E T A R G E T C O N S U M E R
1. Concentrate your media budgets on
reaching the core target consumer
2. Avoid waste on those that will not
convert to purchase
3. Niche vs. broad target audiences will
require varying budgeting levels
A C O N S U M E R - C E N T R I C A P P R O A C H W I L L B E T H E F O U N D AT I O N T O T H E
M E D I A P L A N A N D B U D G E T D E V E L O P M E N T P R O C E S S
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C O N S U M E R P A T H W A Y I S N O N - L I N E A R
CAMPAIGN
QUALITY
C O N S U M E R S U S E M U L T I P L E M E D I A S O U R C E S A N D T H E I R
AT T E N T I O N I S S C AT T E R E D A C R O S S T H E M
8Source: GfK MRI Spring 2014, Women 25-34 with children
A N A L Y Z E T A R G E T ’ S M E D I A C O N S U M P T I O N
MEDIA QUINTILES
T A R G E T ’ S M E D I A U S A G E W I L L I N F O R M M E D I A I N V E S T M E N T S T R AT E G Y
INTERNET ACCESS
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CONSUMER
BUSINESS
MARKETPLACE
CONSUMER
BUSINESS
MARKETPLACE
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S T A R T W I T H C L E A R L Y D E F I N E D M E D I A O B J E C T I V E S
B U D G E T S C A N VA R Y D E P E N D I N G O N U L T I M AT E G O A L O F T H E C A M PA I G N ;
T O G E T T H E M O S T F R O M M E D I A B U D G E T S , A L I G N M E D I A S T R AT E G I E S T O
M E D I A O B J E C T I V E S
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C O N S I D E R R E T A I L E R I M P E R A T I V E S
M A N D AT E D R E T A I L E R S U P P O R T C A N D R I V E M E D I A I N V E S T M E N T C H A N N E L S ,
E S P E C I A L LY F O R I N C R E A S E D I N V E S T M E N T I N N AT I O N A L T V A N D P R I N T
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E S T A B L I S H K E Y T I M I N G
• Does the brand need continuous support throughout the year or is there key seasonality?
• Media costs can increase based on heavy demand in certain quarters
K E Y T I M I N G C A N A F F E C T W E I G H T L E V E L S A N D P R I C I N G
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D E F I N E K E Y G E O G R A P H I C P A R A M E T E R S
L O C A L C A M PA I G N S W I L L Y I E L D L O W E R O U T O F P O C K E T C O S T S
B U T C A N L E A D T O L E S S E F F I C I E N C Y O V E R A L L
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CONSUMER
BUSINESS
MARKETPLACE
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2
3
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Media Investment and Share of Voice
Channel Investment, particularly digital
Messaging Quality
T O D A Y ’ S A G E N D A
A N A L Y Z I N G Y O U R C O M P E T I T O R S ’ M E D I A A C T I V I T Y C A N P R O V I D E A
B E N C H M A R K F O R B U D G E T S E T T I N G
AGENM A R K E T P L A C E A N A LY S I S
Brand Size, Stage and Whitespace
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E V A L U A T E C O M P E T I T O R S ’ M E D I A I N V E S T M E N T & S O V
1. Share of Voice (SOV) is the relative fraction of
ad weight an advertiser uses within a defined
market over a specified time period
2. Multiple studies have established the
relationship between SOV and Share of
Market (SOM) and confirm that a brand’s SOM
will tend to equal its SOV
3. Furthermore, all things being equal, a brand
whose SOV is greater than its SOM is more
likely to gain market share
I N C R E A S E D S H A R E O F V O I C E W I L L D R I V E S H A R E O F M A R K E T
Source: How Share Of Voice Wins Market Share: New Findings From Nielsen And The IPA Databank
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C H A N N E L I N V E S T M E N T M A T T E R S
1. A study by Millward Brown found that brands
that grow their digital SOV are more likely to
increase their market share over time.
2. Measuring digital SOV encompasses more
than simply measuring the exposure that
brands pay for; it also includes owned and
earned media
3. Brands must consider competitive positions
across all digital touchpoints to drive SOV and
SOM
I N C R E A S E S I N D I G I T A L S O V A R E M O R E L I K E LY T O L E A D
T O O V E R A L L M A R K E T S H A R E G A I N S
Source: Millward Brown “Are You Getting Your Fair Digital Share?” 2011
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C A M P A I G N Q U A L I T Y C O U N T S
Source: Direct Marketing News, “Has the Relationship Between Reach and Engagement Changed?, 2011, and How Share Of
Voice Wins Market Share: New Findings From Nielsen And The IPA Databank
Reach
Engagement
1. Using the right copy is critical to drive returns
for both traditional and digital media
2. Campaign quality is the most significant driver
of consumer-generated media, therefore it is
especially important for digital campaigns to
utilize engaging creative
3. Digital SOV includes paid, owned and earned
media, therefore an engaging digital strategy
that drives earned reach is essential
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O T H E R C O M P E T I T I V E C O N S I D E R A T I O N S
BRAND SIZE MATTERS
Market leaders drive greater returns from SOV than challengers
Therefore, it is especially important for small brands to have campaigns with above-average effectiveness
NEW PRODUCT INTRODUCTIONS TAKE A GREATER BUDGET TO BREAK INTO THE MARKET
Guidelines suggest that a new product needs to be launched with a S O V that is 2 X the desired S O M
However, newness delivers higher gains and sees higher return on increased SOV to SOM ratio
Brands in younger categories with less competition fared better than those in mature categories
FIND THE WHITESPACE
Evaluate your competitors’ entire media strategy to find ways to breakthrough
Source: How Share Of Voice Wins Market Share: New Findings From Nielsen And The IPA Databank
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O U T S M A R T , D O N ’ T O U T S P E N D
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T H A N K Y O U
New York
276 5th Ave
Suite 407
NY, NY 10001
212.673.4500
Westport
1221 Post Rd. East
Suite 201
Westport, CT 06880
203.256.0880
womensmarketing.com
Thank you for joining this webinar, part of our How Media Builds Brands series
Have questions or want to learn more?
Contact Marlea Clark at