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280 TARPs (57%80% 1+) is the range where reach is optimised with maximum efficiency 1+ $/Reach Approach Universal McCann ? Establish the point where 1 only reach generation is overtaken by frequency (2+) ? Establish the range where reach is maximised while cost/reach is most efficient ? Establish the point where 2 only reach is overtaken by frequency (3+) ? Establish the point where daily reach can be maxmised ? Establish the point where 4weekly reach is maximised 010203040506070809020 40 60 80 100 120 140 160 180 200 220 240 260 280 3001 + R e a c h 3 + R e a c h 2 + E x c l u s i v e R e a c h60% 1+ is the maximum point where more 2 only reach is generated than 3+ frequency (140 TARPs) Approach Universal McCann ? Establish the point where 1 only reach generation is overtaken by frequency (2+) ? Establish the range where reach is maximised while cost/reach is most efficient ? Establish the point where 2 only reach is overtaken by frequency (3+) ? Establish the point where daily reach can be maxmised ? Establish the point where 4weekly reach is maximised 051015202530S u n M o n We d T h u F r i S a t1 + R e a c hAt 150 Tarps/week, daily reach can be maxmised with 2 Peak spots/day (1 x Sat) 65% Weekly Reach Approach Universal McCann ? Establish the point where 1 only reach generation is overtaken by frequency (2+) ? Establish the range where reach is maximised while cost/reach is most efficient ? Establish the point where 2 only reach is overtaken by frequency (3+) ? Establish the point where daily reach can be maxmised ? Establish the point where 4weekly reach is maximised 92%68%84%88%0204060801 0 01 2 01 4 01 6 01 8 0W k 1 W k 2 W k 3 W k 4Tarps0%1 0 %2 0 %3 0 %4 0 %5 0 %6 0 %7 0 %8 0 %9 0 %1 0 0 %Reach %T a r p s R e a c h4 weekly reach is maximised at approx 92%% which would require 153 Tarps per week Approach Universal McCann The Teens Range Tarps ? Establish the point where 1 only reach generation is overtaken by frequency (2+) 120 ? Establ。 Radio Advertising Financial Analysis Incremental Volume Model Estimate N/A TV Advertising Spending Lire (M) 17,324 3,134 Total Italy Year Ago = 52 weeks ending 4/27/97 Spending Efficiency* Cost/Incr. Unit TV Radio 1,721,935 255,739 TV Radio TV Radio TV Effectiveness Varies by Medium Universal McCann Event / Sponsorship Christmas 1319 Mainthrust 1319 / HCM Mainthrust Event / Sponsorship Christmas 1319 Mainthrust 1319 / HCM Mainthrust Future Consumption Immediate Consumption TV Effectiveness Varies by Channel ? France: Impact of marketing activities different in immediate vs. future consumption channels Universal McCann 10% 4% 20% 7% 7% 5% Immediate Holland Future Turkey Immediate Future Switzerland Immediate Future Advertising Contribution is Higher in Immediate Consumption Channels Universal McCann Remended Action Consider the quality of copy (. CPR, CRR) in media weight decisions. Consider type of message and source of volume in media mix and media weight decision. Current Beliefs / Behaviors Challenging Evidence The objective is to reach the target group at an efficient cost. All media offer similar volume contribution effect. Message is a secondary consideration. Copy quality and type has a significant effect on media driven volume. Ad driven volume varies significantly between consumption channels. Beliefs About Media Mix Universal McCann Current Beliefs / Behaviors Challenging Evidence Remended Action Program tonality enhances the effectiveness of the mercials. Little evidence exists to quantify the added value. Synergy with environment results in higher cost per reach. Buy programs based on: Reach contribution Cost per reach point Attention Beliefs About Program Environment Universal McCann Search For Reach Universal McCann The Triangle of Media Variables Continuity Which can also look like this….. Universal McCann The Triangle of Media Variables Continuity But the 4th variable is……………. Budget Continuity Universal McCann Recency Planning ? New Learnings Conclude : – 1 OTS within 7 days of purchase represents the most effective munication with a consumer (both in terms of sales and awareness). – Further exposures have an effect, but this has been shown to be a clear case of diminishing returns. First Exposure = Reach Further Exposure = Frequency Source : John Philip Jones ARF 1994/Erwin Ephron JAR 1995 Universal McCann Advertising Seekers Impactful Salient Creative Involving Environments 1 OTS Within 7 Days Plan for Reach Maximise Single Exposure Coverage Within 7 Days of a Potential Purchase Universal McCann TWeRPs Universal McCann Back to Recency “ No, there is a window of advertising opportunity preceding each purchase. Advertising?s role is to influence the purchase. Media planning?s job is to place the message in that window”. Source : E. Ephron Universal McCann Back to Recency “ Advertising needs continuity because not being there with a message is like being ?outofstock? “ Source : H. Krugman Universal McCann Reinvest to Maximise Time on Shelf ? Reduce the weight of media bursts : – Reach builds quickest at low TVR levels ? Reinvest to provide continuity : – Must ?rent the shelf space? all of the time reach consumers when they are ready to buy. ? Maximise Total Weekly Reach Points (TWeRPs) across the year. Universal McCann TWeRPs Total Weekly Reach Points 0