Journey from Concept to Creation : target market

Broadcast Media (Part One).

Adman — Mon, 04 Aug 2008 05:57:00 GMT

In my last blog, I mentioned that it is appropriate to think in terms of Gross Rating Points (GRPs) – not the number of spots to be purchased – when planning broadcast media buys. Here is a short demonstration using "WXYZ TV" a mock, top-ten ACNielsen DMA network affiliate.

Suppose you want to advertise a new anti-aging, fat-burning, sun-screening, appetite-reducing, muscle-toning, beautifying, sun-tanning, skin cream product (using all natural ingredients, of course) that is proven to eliminate cellulose, varicose veins and love-handles while adding years to one's life. Extensive research indicates that the primary target market is Women 18+, stay at home moms. Your client wants to first run the ads in a top-ten, spot television market before going national.

So you call the network affiliates in your test market and request availabilities (avails) in the DMA for the Female 18+ demographic -- believing that you need to run the commercial 30 times because your client -- who recently attended a one-day beauty business seminar -- told you so. You take a look at the Morning and Daytime day-parts for your Female 18+ demo for the fourth quarter.

[Television viewers are typically loyal to programs as opposed to stations. Nevertheless, I am using availabilities from a single station for demonstration purposes. The numbers are representative of an actual "top-ten" broadcast TV market.]

As you can see in the above "avail," the Female 18+ demo has dramatically different ratings and rates depending on the program. The cost per rating points (CPPs) are also quite different...even among programs specifically targeted to women.

In the avail, Program "A" (top-rated morning show 1) and program "B's" (morning show 2) adjacent time periods have different numbers when comparing 9a-10a (1.9 rating) vs. 10a-11a. (1.4 rating). The gross rate for the 9-10a slot is $350, considerably higher than the $265 rate for the 10a-11a time period... yet the CPP and CPM are lower for the 9-10a slot. This is a better buy for the Female 18+ demo as you would be reaching 44.2 thousand vs 32.1 thousand at a lower ($7.92 vs $8.26) cost per thousand (CPM).

An even better comparsion is made when comparing Program "F" (soap opera) vs Program "G" (homemaking show) which represent programming specifically targeting women. Program "F" gets a 2.7 rating for Females 18+ (reaching 64.4 thousand) while Program "G" only gets a 0.7 rating for the same demo (17.4 thousand). Program "F" has a lower CPP of $203.70 vs $250.00 for Program "G" So, Program "F" is a much better buy -- if you can afford it at $550. This simple comparison should be enough to discredit the absurd idea of buying media based on a predetermined number of spots for the simple reason that the same number of spots on one program vs another can yield vastly different reach at dramatically different costs.

A far more viable approach would be to determine how many viewers you can afford to reach with effective frequency. Since the minimum generally accepted frequency is three times, you might want to consider shooting for an even better frequency of four times. If you bought 400 GRPs, you could reach virtually 100 percent of Females 18+ viewers in your DMA with an average frequency of four times. Assuming an average morning and daytime CPP of around $220 (based on your avails) your budget would be $88,000. It would be much more common (trust me) to purchase around 100-150 GRPs per week. So, let's assume that you propose to your client that they purchase 250 GRPs for a two-week flight. At an average CPP of $220, this would result in a budget of $55,000.

A much quicker method for determining average CPPs would be to refer to SQAD. Since SQAD (pronounced "squad") is based on actual buys, it has the added benefit of providing you with a good indicator of what is actually being negotiated and paid vs what is presented by the respective stations on their avails. In addition to being a helpful negotiating tool, SQAD might also be helpful in determining desirable test markets based on average CPP data -- in consideration of buying power index data and other marketing research. At Davis Advertising, Inc., we strive to beat SQAD by a significant amount.

Your job as a media buyer is now cut out for you -- get your client as much "bang for the buck" as possible by negotiating rates and developing a schedule -- using avails from a variety of broadcast (and cable) stations -- that will improve the numbers significantly, maximizing effective reach and frequency...based on both quantitative and qualitative insight. That will be the subject of an upcoming blog.

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Media (Introduction).

Adman — Sun, 04 May 2008 20:43:00 GMT

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I was honored to serve as the final judge in the 2008 DECA, International Career Development Conference (ICDC) in Atlanta this past Monday and Tuesday in the “Advertising Campaign” category. The events were held at the Georgia World Congress Center and the awards session was at the Georgia Dome.
It was an awesome experience. On Tuesday, I evaluated twenty 20-minute advertising campaign final presentations from the top high school marketing students in the world.
This was a truly humbling experience and I was impressed to say the least. It was virtually impossible to determine which of these student teams best deserved to be in the top ten -- much less the top three finalists! But, ties were not allowed and there had to be three top teams selected. ALL of the students who made it to Atlanta should be VERY proud!
There was a relatively clear first place winner. This team's "situation analysis" actually included a “SWOT” (Strengths, Weaknesses, Opportunities & Threats) analysis based on their "secondary research." As did most of the others, they defined their primary and secondary target markets in demographic, psychographic and geographic terms. Their objective was specific, workable, measurable and attainable. Their budget was realistic and comprehensive -- including development costs, production costs, media costs and agency commissions. They certainly showed evidence that they understood some of the basics of the “Journey from Concept to Creation!”

Of course, I was thinking about how these high school students could have REALLY impressed me if only they had been reading my blogs! Hopefully next year’s students are reading?

One thing that really impressed me, in addition to the SWOT analysis, was that they mentioned running television spots in the “early fringe” time period. Plus, they actually spoke in terms of FREQUENCY! – gasp! They also referred to radio formats as Contemporary Hit Radio (CHR), Adult Contemporary (AC), Album Oriented Rock (AOR), etc. They certainly knew how to impress the Adman with advertising industry terminology.
Regarding my blog topic -- I am convinced that there are gazillions (possibly even googillons) of dollars totally wasted by those who are not educated on a few basic principles of media planning and buying. I have heard comments from inexperienced prospective clients (who could use a lesson or two from high school DECA kids) that go something like, “We think we should buy 30 spots on WXYZ TV.” After recovering from my “client from hell red flag alert,” I attempt to educate them. Puhleeze listen carefully -- it AIN'T about how many spots you are buying! 30 spots on one station is NOT the equivalent of 30 spots on another. Plus, different dayparts (Early Fringe vs Primetime for example) can reach dramatically different numbers of viewers! It IS about how many impressions (as measured by ACNielsen) you are making on your target market (reach). And it is also about reaching your target market a sufficient number of times (frequency).
This leads to the basic, fundamental formula of broadcast media buying – Reach x Frequency = Gross Rating Points (GRP’s). So, when establishing a broadcast television media budget, it is prudent to first determine the average cost per rating point (CPP) for your target market in your market(s) -- as defined by the Nielsen Designated Market Area (DMA). Then determine how many impressions you can afford to make with sufficient frequency (generally a minimum of three times). Then figure on the conversion rate (generally in the two or three percent range) that is typical for your industry…while considering the added value of BRANDING your product or service in the market.
Now, when I hear something like, “We are budgeting for XXX GRP’s per week, based on the average CPP of $XXX (according to SQAD) in the target DMA for our Adults 25-54 demo…” I am as pleased as a DECA student after winning first place in the DECA ICDC awards session at the Georgia Dome in the Advertising Campaign category... celebrating by getting wet from the fountains at the Centennial Olympic Park after visiting the Georgia Aquarium and the World of Coke... with a front row seat at the NBA playoffs in the Phillips Arena watching the Atlanta Hawks beat the Boston Celtics... while enjoying Georgia peanuts and a Coke... with tickets for the studio tour at CNN..followed by tickets for "The Lion King" at the Atlanta Civic Center... or perhaps another show at the Fabulous Fox Theater...or Six Flags over Georgia...or the Stone Mountain Laser (and fireworks) Show? -- While it may sound like alphabet soup to you -- to the seasoned media professional it is music to the ears…

To be continued...

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Color.

Adman — Fri, 29 Jun 2007 06:42:00 GMT

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I was doing a demo recording for a friend a few years ago. The subject of choosing colors came up while I was working on the CD cover design. I remember her saying that she was impressed with my taste in choosing a good color scheme, claiming that it is a talent that few men possess. While there is "method to the madness" of choosing compatible colors for use in design work, I didn’t mention it to her at the time. I preferred to let her believe that I had creative talent that few men possess. Anyway, while an exhaustive study of color theory could fill many books, I will cut to the chase and try to offer a concise and useful overview.

Specifying color is largely a matter of understanding the color wheel – first developed by Sir Issac Newton (a man) in 1667 – which is centered on a logically organized sequence of pure color hues. It was refined by Albert H. Munsell (another man) in 1905 (Munsell introduced the concept of Hue, Chroma (Intensity or Saturation) and Value). The order of colors on the color wheel follow the order of colors seen when light is shown through a prism. The color wheel is made up of three primary, three secondary, and six tertiary colors – a total of 12 basic hues. The three primary colors are red, yellow and blue. Mixing them creates the secondary colors; green, orange and purple. The Tertiary Colors are formed by mixing a primary color with a secondary color. They are yellow-orange, red-orange, red-purple, blue-purple, blue-green and yellow-green.
When specifying color, it is necessary to understand how color impacts people. Here are a few examples:

*   Color choices should reflect your target market (women -- far more "color conscious" than men -- like red while men like blue) as well as the other strategic factors mentioned in my blogs, depending on the mood you want to convey and the emotional response you want to elicit.
*   Color choices should reflect the culture and religion where your work will be seen as color can have different meanings in different parts of the world (there is no proven “universal reaction” to colors). For example, white is associated with death in eastern cultures as black is in the west.
*   An object shown in a bright color looks larger than the same object shown in a dark color. Bright color "radiates," drawing the eye outward and expanding the object. If you are selling "size," you might consider using a brightly colored sample of the merchandise.
*   Hermann Rorschach, the Swiss psychologist found that cheerful people are more responsive to color while melancholy people respond better to shape. If you want to limit your market to those who have a more serious interest, you might want to keep the color subdued as color allows the viewer to be somewhat more passive... weeding out lukewarm prospects.
*   Color has been proven to be far more effective (up to 70%) in advertising than black and white... the added cost in printing color is marginal by comparison.

Red is considered to be a “Hot” color. It can stimulate physical activity and sexual desire… passion, aggression and anger. It can make people feel hungry and increase respiration and blood pressure. You can use it for emphasis, although it was drilled into my head in art school that yellow is the “most advancing color” – it will draw the eye first. Yellow can symbolize joy, happiness, wealth, hope, weakness, greed and friendship. Yellow and Black symbolize danger or caution. White is purity and truth. Violet is royalty... and loneliness. Green is fresh and fruitful... envy and guilt. "True blue" is fidelity. In fact, every color has symbolism that can be used to affect your market (color can also be used to implement principles of design, but it is subordinate to shape).
Blue, Green and Blue-Green are considered to be “Cold” colors. They denote coldness, cleanliness and freshness -- explaining why these colors are so popular in laundry detergent package design. Warm colors are based on red but “softened” and suffused with orange and yellows. Cool colors are based on blue and suffused with reds and yellows. Warm colors cheer and stimulate while cool colors calm and relax.
Combinations of warm grays and cool grays are often used for shadows in renderings; usually resulting in more a realistic look when compared to using black. Artists also use a color’s complement to create shadows (sunlit objects in nature will have shadows with a hint of the object color's complement). When you stare at a color and then look at a white sheet of paper you will see a "ghost" of the color's complement.
While any color can be combined (as in nature) if you choose the correct value and intensity, aesthetically pleasing color combinations have been found to lie with colors on opposite ends of the color wheel (complements), equidistant from each other (triads), those that lie on either side of the color (blended) or on either side of the complementary color (split complementary). The closer colors are on the color wheel, the more harmonious they are. Colors on opposite sides complement each other. Use of color in design should be mostly harmonious or mostly complementary; mostly cool or mostly warm. There are numerous color schemes -- achromatic, monochromatic, analogous, complementary, triadic, rectangular, pentagonal, etc. Achromatic schemes consist of blacks, whites and neutral grays. Monochromatic schemes are based on one color and its various tints and shades. Analogous schemes are three colors that are adjacent to each other on the color wheel. The Primary color scheme is made up of the three primary colors… strong and energetic, it is often used in designs targeting children. Secondary color schemes are also strong and energetic but more sophisticated.
Here are a couple of links that help to make the task of color specification easier, if not a "no brainer." Check out Color Blender and Kuler. They are awesome resources for specifying color. With tools like these, (and my blog) there is simply no reason for not having beautifully spec'd color schemes in your designs. Of course if you are a woman you won't need them.

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A big, wet, French kiss.

Adman — Wed, 19 Jul 2006 04:40:00 GMT

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Any creative director with half a brain should understand the importance of defining the target market. If you are not “two fries short of a Happy Meal®” you should know that to produce great creative work you need to understand everything you can about your target audience. You should know your target market very well… intimately well… so well that you can feel free to plant a big, wet, sloppy, French kiss right on their ruby red lips. Ok… maybe not. At any rate, you should at least get to know your target market in both quantitative and qualitative terms.

Any creative director who ever enjoyed a burger and fries (I’m trying to eat healthier myself) should know that you need to define your target market demographically. The major ratings services such as Nielsen®, Arbitron® and Birch® have very specific “demos” that are used in presenting program availabilities (avails) and radio station rankings (rankers). They are broken down into specific pre-defined groups such as Adults 18-49, Women 25-54, etc. Broadcast media is negotiated and purchased according to these demographic breakouts so it is logical to use them in defining the market quantitatively.

As far as qualitative information, a well-defined target market can include psychographics (personality, interests, attitudes, opinions, lifestyles), socioeconomics (economic activity and social life) and geodemography (location dynamics). This might include “buying power index” information (BPI); lifestyle clusters (Boomers, Yuppies, Gen X, Empty Nesters, etc.); beliefs, attitudes and values (BAV); activities (golfing, boating, bungee jumping, nose picking, nail biting, music, nightlife, travel) and numerous other criteria that is available through various media resources.

Is your target market business-to-business or consumer? How do you reach them, where do you reach them, what creative appeals will they be most receptive to? ... How does the product/service benefit them… What is the best way to communicate with them. How do you get their attention… arrest their interest… create desire within them… motivate them to take action? These questions cannot be answered properly until you have defined your target audience in writing.

Defining the target market will affect your creative work in infinite ways; including the graphic treatment, photography, artwork, font selection, motion graphics, color scheme, page-style, creative appeals, copy points, shooting venues, location scouting, talent selection, brand personality, camera-work, editing, music, sound design/effects/foley, burgers, fries, hotdogs, milk shakes, sushi :-) , etc. While you don’t need a degree in marketing research to understand your market, it can’t hurt to know some of the basics. Who knows, your target audience might even start a love affair with you... er... at least with your creative work anyway.