Buying Media From An Investment Perspective

By Jeff Hilton, Integrated Marketing Group, 2003

When you consider the money and labor you invest in planning, negotiating and buying media advertising space, it can quickly add up. Individual companies in the natural products space spend anywhere from thousands to millions of dollars each year on media advertising and promotion. Often times it is considered a “necessary expense” but not expected to contribute concretely to revenues and profit.

I recently heard a CEO of a moderately large company say that he advertises because he has to, not because it works. That, I think, is a sad statement. No company should be spending media dollars unless they are seeking to meet a specific goal or objective for which advertising is an appropriate tool. And those expenditures should be expected to produce returns like any other corporate expense. Granted, I understand that the effects of media advertising are difficult to assess, since media is one of several interactive factors in the marketplace influencing sales. But there are ways to measure response and return on the media investment, and any company not holding those expenditures accountable is overlooking a significant stewardship.

Evaluating and Picking the Right Media Vehicles
There are a dizzying array of media opportunities available in the marketplace. The first step is to consider what you want your media advertising to accomplish. Media advertising can:

• Create awareness
• Reinforce brand image and positioning
• Generate leads or referrals
• Encourage trial
• Build Web site traffic
• Alter an attitude or point-of-view
• Entertain or amuse
• Build brand equity

Based upon desired objectives, you can then develop a media strategy to effectively and efficiently reach your target audience. Media selection is all about reach, frequency, message environment and cost efficiency. Let ’s consider those elements individually.

Choose Media Which Offer Adequate Reach
Reach is the number of different individuals or households exposed to your media message. You should be targeting a reach of approximately 60% with your total media schedule. In other words, the combined media in your plan should reach 60% of your target audience at least once during the campaign period.

Build Sufficient Frequency
Frequency is the average number of times an individual or household is exposed to your media message. It takes generally at least three exposures before the viewer or reader begins to register or comprehend your message. Many companies believe that they can run an ad a couple of times and achieve effective frequency. Frequency builds slowly. You will tire of your message long before your customers will. Remember that frequency is an average, so it is important to build adequate frequency into your media schedule.

Don’t Underestimate Message Environment
Whatever the medium, most consumers are content-driven in their consumption. In other words, they are there because of the content. No one reads a magazine looking for the ads. No one watches television for the commercials. Your message will be surrounded by content, and that content can have an impact on the recognition and recall of your message. Studies show that the more surrounding content supports or aligns with the message, the more likely consumers are to recall your message later. Carefully consider the programming or editorial content surrounding your message, and look for opportunities to associate yourself with supportive content. An effective print media plan should take into consideration the editorial calendars of the publications under consideration. An effective radio plan should consider the format, whether talk, news and information or classic rock.

Consider the Cost Efficiency of Media Options
It’s a simple mathematic equation. Take the cost of a particular media advertisement and divide it by the number of individuals potentially reached, then multiply that by 1,000. This will provide a cost per thousand consumers reached (CPM) for comparison against other vehicles. Consider that number in addition to other factors such as audience composition and message environment, and it will help you to make a smarter media selection than you might otherwise make.

Negotiate for Value-Added Opportunities
Walking away from a media buy without value-added benefits is like leaving half of your winnings at the Blackjack table. In addition to the space or time you purchase, you should ask for additional free or low-cost exposure opportunities for your brand. These can take many forms but might include:

• Bonus circulation
• Premium positioning in the program or publication
• Special customer mailings
• Event sponsorship or distribution
• New product announcements

There are many others, but you should expect the media to participate in maximizing your exposure. If they are reluctant, place your buy with someone else who offers that value.

Alternative Media Vehicles
One of the benefits of today’s highly segmented media environment is the number of alternative media choices beyond traditional print or broadcast options. Some of these creative media choices include:

• Mass transit
• Painted trucks or buses
• Hanging banners on buildings
• Traveling billboards
• Coffee sleeve sampling

The list goes on and on. These inventive media options allow you to showcase your brand in an unusual and unexpected format which often has a better chance of demanding consumer attention. They also tend to be more targeted and more affordable.

Measuring Response
Advertising should be accountable. Remember to provide some way for your customers to interact with your brand. Whether it’s a coupon, a free sample, a special Web site offer or a toll free number for information, these response devices provide a way to gauge reaction to your media messages. Tracking can be as simple or elaborate as you’d like, but in today’s competitive media marketplace, tracking is just smart business.

Carefully consider your investment in media. Make it work for you. Set reasonable objectives and hold it accountable. Then course correct as you go. It will pay big dividends.