Every businessman agrees that only properly planned advertising works good.
So do you if you are reading this article.
In this article, we learn:
- On media planning in theory: I will give definitions, I will describe the stages, I will share textbooks.
- On media planning earlier and now: TV, newspapers, radio, outdoor and its highness the Internet.
- The main indicators of the effectiveness of an advertising campaign on the Internet.
- How to do real calculations in an Excel table.
Media planning is the process of choosing channels for advertising (placement), the purpose of which is to maximize the effectiveness of an advertising campaign.
The result of this work is a media plan - a document (table, file, presentation) which contains a plan of promotional activities.
Media plan makes it more efficient:
- Choosing an advertising goal.
- Defining advertising costs.
- Scheduling workload timing of your employees.
- Developing our brand.
As you know, media planning is strategic (3-5 years of temporary planning), tactical (1-3 years) and operational (7-120 days). Regardless of time limits, the media plan itself includes 5 basic components:
- Collection of basic, fundamental data.
- Definition of goals.
- Identifying target markets.
- Working with various media, determining their ratio.
- General conclusions on the work.
Step 1. Data collection
For example, recently a regional vegetable-growing company, Botanica, appeared in a neighbouring town Volzhsky. So far, Poland, Turkey and Krasnodar have been operating on the market, as well as a part of the Caucasian suppliers. Accordingly, the company determines the volume of its sales and explores its competitors (suppliers, sales channels, etc.).
With the help of supervisors, it checks brand attitudes at points of sale.
Strategy is possible when your business has goals, your marketing department (or a brave marketer) has goals, your communications (any banner, a radio clip in the morning, a leaflet at the metro) have a goal. Such renowned classic marketing authors F. Kotler and emphasize the importance of goal setting prior to budget planning, not to mention advertising process observing.
Regardless of the communication channel, you must formulate a goal.
For example, increase the number of registrations on landing page by 20% via advertising”.
Or "Through advertising, increase sales in the next quarter by 30%."
And here 3 key point to keep in mind: Strategy, Tactics and “Here and Now”. Make your strategic goal form a tactical one and the actical goal form the communication steps. And then you will not have “The sales figures plummeted in October, because the banners hadn’t been working!”
For example, a company aims at 20% of the market share and a profit level of at least $10,000 per month. To do this, the company has to expand the consumer base from 500 people to 1,000. With advertising on social networks and targeted promotional videos, the company increases brand loyalty. The company also increases the product awareness via the contextual and targeted advertising on promotions and discounts on Google.com and its advertising partners via Google ads.
After buying at a discount consumers are captured by the company in order to organise the targeted email campaign with additional discounts.
Media mix a plan for the integrated use of various advertising channels to effectively fulfill the purpose of an advertising campaign. There are 3 points in creating a good media mix.
- Who is your target audience?
- Car owners aged 20-25.
- Great, you on the radio "Young driver"
The classical media planning included three main channels of advertising: TV, radio and print media. However, the online advertising market over the past years has grown to a huge cash flow.
As eMarketer said in 2019, worldwide digital ad spending will rise by 17.6% to $333.25 billion.
According to the eMarketer in some countries digital has already become the dominant ad medium.
You should strictly divide advertising into 5 large segments:
- PPC campaigns;
- display advertising;
- video ads;
- publications on social networks, blogs and news websites, working with influencers;
- email campaigns.
You can order teasers on websites or articles on the forums.
You can order posts in communities with your target audience or launch a viral video before a video on Youtube.
You can order PPC Campaigns in Google or Bing or order WhatsApp-newsletter.
All of these are directly related to your product (service) and your target audience.
For effective advertising media mix we should use the results of the analysis of the brand and entire market.
Our priorities are maximum coverage of target audience and maximum conversion.
2) Choose the secondary advertising channels
Therefore, spending a part of the budget on secondary advertising channels allows it to be determined.
Step 5. Analysis of the results
A) understand its effectiveness;
B) estimate the deviations and make corrections before the next advertising campaign.
I propose to consider the key performance indicators of an advertising campaign. The first classical indicators are:
- Profitability of an advertising campaign.
- Price per thousand contacts.
- Cost per click.
- Click through rate.
- Lead cost.
- Number of new consumers.
- Average check size.
1. Profitability of an advertising campaign
It is important to correctly track the impact of adver tising on the sale of goods. To track the offline sales influence use the new product packaging, and the easiest is the new price for the product.
$5,000 for a 3-month period.
ROMM = ($70,000 / $5,000) х 100% = 1,400 % (super!)
2. Price per thousand contacts
For example: you spent $5,000 on targeted advertisements on Facebook and reached 3,000,000 people.
CPT = ($5,000 / 3,000,000) x 1,000 = $1.66
3. Cost per click
CPT is used to determine the cost of coverage, and CPC is used to determine the cost per click of a potential buyer.
For example, you spent on advertising in Google Ads $2,500 per quarter and received 800 clicks on your site.
CPC = $2,500 / 800 = $3.125 (expensive, of course!)
4. Click through rate
It very useful to determine if “this damned ad” works or not.
CTR = number of clicks on advertising / number of ad impressions * 100%.
For example, you launched a media campaign on Youtube. Three ads were showed 10,000 times, and there were 900 clicks on them.
CTR = 900 / 10 000 * 100% = 0,09% (too small to talk about good advertising, the best CTR for video ads is about 1%).
5. Lead costLead is not a promotional contact, but people interested in your product (service). Here we do not expect clicks, but work with real people.
A visit could result in a call or request.
In general, leads are most often considered when selling services.
The cost of attracting the lead (Cost Per Lead) is calculated easily.
CPL = advertising campaign budget / number of leads.
6. Number of new customers
We create effective advertising media plans. We carefully analyze the results and draw conclusions. Call INTERVOLGARU and we make audit of your advertising campaign.