Planning an Ad Campaign

Prof. Sita Ramakrishnan

Ad Campaign
Series of ads that share a single idea
and theme and which are directed at a
particular segment of population i.e
target market.
They are aimed at achieving a common
objective.
Broadcasted through several media
channels which make IMC.

Process of Planning Ad Campaign

Joint effort of advertiser and agency.
Advertiser provides product related
information and agency collects market
related information.
Steps in planning are:
1. Research inputs: To understand
customers, competition, product, etc.

2. Target market: Identifying TG is very

important.
3. Campaign objectives: Use of media
varies as per objectives.
4. Ad Budget: Needs to be fixed as per
factors like availability of funds, nature
of product, nature of customers,
competitors, area covered, etc.

5. Message: The theme and appeal of the

campaign. Helps in positioning the
product in the market.
6. Media selection: Depends on ad budget,
nature of product, nature of customers,
competitors, etc.
7. Media scheduling: Indicates time and
frequency for each media to run the
campaign.

8. Client approval
9. Campaign execution: Campaign plan is
put into action.
10.Feedback: Post campaign tests to
determine campaign effectiveness.

DAGMAR
DAGMAR is the abbreviation of the theme
Defining Advertising Goals for Measured
Advertising Results.
Proposed by Mr. Russel. H. Colley.
As per this model, advertising has to perform a
particular communication task and the task has
to be accomplished among a well-defined
audience within a specified amount of time.
It is a model of purchase process beginning at
a point where the prospect does not know that
a particular product exists in the market.

 Advertising must carry a consumer through 4

levels of understanding from Unawareness to
Action. The stages are:
Awareness, Comprehension, Conviction, Action.
DAGMAR also specifies what constitutes a good
objective:
- Concrete and measurable
- Target Audience
- Benchmark and degree of change sought
- Specified time period

Communication objectives

To create awareness
To build or reinforce attitudes
To develop brand image
To develop brand loyalty
To educate consumers
To counter competitors claims
To persuade target audience

Sales objectives

To increase sales
To increase market share
To increase profits
To gain new customers
To expand distribution network
To enter new markets

Process of setting objectives

Analysing the product

Identifying the target customers
Analysing market conditions
Analysing competition
Identifying marketing problems
Setting/redefining objectives
Creating a campaign
Media selection
Implementation of the campaign
Review

Factors determining ad budget

Objectives of the campaign

Competition
Quality of campaign
Type of TG
Frequency of ads
Type of media
Type of product
Size of advertiser
Past expenditure

Management philosophy
Stage of PLC
Market size
Availability of funds

Methods of Preparing Ad Budget

3 types:
1. Fixed methods
2. Task method
3. Subjective methods

1. Fixed Methods:
a. Percentage of sales method:
- Certain percentage of sales is amount
spent on advertising.
- Budget linked to sales of previous year.
- Popularly used.
- Easy to calculate.
- Provides justification to ad expenditure.
- Normally 2-5% of previous years sales is
amount allocated for advertising.

b. Unit of sales method:

- Budget calculated on the basis of amount per
unit of product sold in the previous year.
- Considers volume of sales of previous year.
- Eg: Automobile advertisers may use this method.
c. Competitors Expenditure Method:
- Considers competitors budget.
- Justified as competitor is selling similar product
under available mkt conditions.
- A new manufacturer can use this method to
understand the advtsg levels to be used.
- Not scientific.

d. Market share method:

- Basis of mkt share.
- Fair and easy method.
- Advertising budget should match the market
share of brand.

2. Task Methods:
- Defining advertising objectives
- Determine amount required for meeting
objectives
- Determine whether amount is affordable
- Finalise & approve the budget
- Budget execution
- Follow-up

3. Subjective methods:
a. Arbitrary method:
- No criteria used for determining budget.
b. All you can afford method:
- Budget made on basis of companys assets
or profits. Tries to avoid wastage by keeping
close control.
c. Go for Broke method:
Whatever funds are available, are spent on
advertising.

Media Planning
Purpose of media planning is to select
the right media to reach the right
audience so as to have the desired
response.
Careful media planning delivers advtsg
message effectively at the lowest cost.
Has to address the foll questions:
- Whom to reach?
- Where are they located?
- What is the message?
- When to run the ads?

Importance of media planning

Helps in selecting right media
Right allocation of funds
Helps to achieve advtsg objectives
Minimises wastage of funds
Helps in obtaining client approval
Facilitates reaching the right audience
effectively
Indicates period for which advertising is
required to be done

Process of Media Planning

1. Deciding the target market:
- Process starts after deciding the target
market.
- Based on age group, male vs female,
language, cultural & social background,
etc
2. Deciding the media objectives:
- Stated in terms of Reach, Frequency,
GRPs, etc.

3. Choosing the media types:

- Media habits of the target market are considered.
- Major media types include print-newspapers,
magazines, tv-satellite, DD, Radio, Outdoor,
Cinema etc.
4. Selecting specific media vehicles:
- Specific media vehicles within each media type
has to be selected.
Eg: If magazines, then whether business mags or
womens mags; if business mags, then whether
Business World, Business India, Outlook Business,
etc.

5. Allocating funds:
- Funds have to be allocated to each
media type & vehicle.
- Decision regarding the number of units
of each media vehicle.
6. Media scheduling:
- Programming of media insertions.
- Media scheduling strategies depending
on nature of product, stage of PLC,
advertising objectives, etc.
7. Placing the ads
8. Follow-up

Media Objectives
Reach:
- Measures number of different audience members
exposed at least once to a media vehicle in a given
period.
- Unduplicated audience.
- Campaigns success depends on its ability to reach
as many people as possible.
- Audit Bureau of Circulation (ABC) conducts reach
percentage studies of different media.
Eg: Out of 100 households, if 30 have been exposed
to the ad message, then reach of the ad is 30%.

 Frequency:
- Number of times the audience is exposed to the
advertising message during a given period.
Avg Frequency= Total Exposure of all Households
Reach
- Both reach & frequency help in understanding
impact & influence of media on consumers.
Eg: If total no of exposures is 1000 and reach is 50,
then the avg frequency will be 1000/50=20.

 Gross Rating Points (GRPs):

- Combination of Reach & Frequency.
- Shows how many potential audience members
may be exposed to a series of commercials during a
period.
- GRP=Reach X Average Frequency
- Total audience the media schedule may reach.
- Duplicated reach estimate.
Eg: If the 9pm slot reaches 75% of households an
average of 3 times within 4 weeks of the plan, then
GRP=75 x 3 = 225

 Continuity:
- Refers to timing of ads in the media.
- It shows how the budget has been
allocated across different time periods in
a year.
- Changes from product to product.

Factors influencing Media choice

Product characteristics
Target audience
Competitors advertising
Distribution coverage
Ad objectives
Ad budget
Media image
Media cost
Media selectivity
Media reach
Media flexibility

Developing Media Strategy

Media strategy is a media plan designed
to achieve media objectives.
Describes how advertiser will achieve
desired objectives.
Important points:
- Media mix
- Period
- Frequency
- Place

 Elements of Media Strategy are:

1. Money (Funds):
- Budget amount and allocation of
advertising funds.
- Allocation is done media-wise, areawise, period-wise and product-wise.

2. Markets:
- Possible target audience of a media
plan.
- May be local, regional, national or
global.
- May also include trade intermediaries.

3. Media:
- All communication vehicles that are
available to the marketer to promote
the products.
- Includes all forms of advertising
media like tv, radio, press, cinema,
internet, digital and other
communication elements like
personals selling, publicity, PR etc.

4. Methodology:
- Mechanical considerations like
amount of time/space required, size
or length of ad, media scheduling
strategy, quality of ad, etc.

Media Scheduling
Refers to timing and frequency of
advertisements across a specific
campaign period.
Scheduling helps in better
implementation of plans and also
facilitates monitoring and review of
media plan.
Major activity of media planners.

Media Scheduling Strategies

1. Flighting: Heavy advertising for a
particular period followed by hiatus
(break) followed by heavy advertising.
2. Bursting: Heavy advertising during a
particular period followed by normal
levels of advertising during the rest of
the year.
3. Pulsing: Heavy advertising followed by
limited advertising followed by heavy
advertising.

4. Seasonal: Heavy advertising during

season and no advertising otherwise.
5. Teaser step-up: As season approaches,
advertising starts on a lower scale and
picks up as the season peaks.
Advertising is the greatest at the peak
of the season.
6. Teaser Step-down: Heavy advertising as
season approaches and slowly reduces
as season comes to an end.

7. Steady: Equal amount on advertising

every month.
8. Alternate month: Advertising in
alternate months.