Published May 2004

Optimize media mix by evaluating value, efficiency

Just when you thought it couldn’t get any worse — “POW,” a new medium emerges. Media fragmentation has made it more difficult for advertisers to generate a positive return on investment. Holy media plan, Batman, what do we buy now?

Not long ago, our smorgasbord of media was relatively small. Now advertisers must choose between 500-plus TV and radio stations, print publications galore and a cadre of other traditional media. Not to mention the countless on-demand, online and other interactive alternatives.

Another challenge is that simultaneous media consumption is on the rise — thereby diluting the impact of advertising. One study (by BIGresearch) reported that 60 percent of women often read magazines while watching TV.

Suffice to say, audiences will continue to splinter. So, how do you choose among the multitude of media? By evaluating both the “value” and “efficiency” of each vehicle that reaches your target market.

Value: Different media environments offer different values. A billboard may deliver a heavy traffic count, but you can only convey a short message (which may be all you need). Print, on the other hand, is an excellent venue for detail, but lacks the sound and motion allure of television.

Other value factors include the ad itself. A full-page, four-color ad will be noted by more readers than a quarter page black-and-white. You can tell a more in-depth story during a 60-second radio spot than a 30. Plus, some messages produce a better response than others. Based on your advertising objectives and budget, choose the medium (or mix) that is the most “value” appropriate.

Efficiency: After you’ve determined the best media
environment(s), narrow your list down to those that best target your market(s). Compare them based on composition, coverage and cost. Composition is the percentage that your target market represents of the media outlet’s total audience. Coverage is the percentage of the total target market the media outlet reaches.

If you are doing direct-response advertising (sale ends Sunday, Sunday, Sunday), which requires a high frequency of exposure, opt for an outlet with a higher composition. If you are building awareness over a longer advertising cycle, lean toward a vehicle with a higher coverage to extend your reach.

There is not a single cost formula that levels the playing field for all media, mostly due to the previously cited “value” factors. However, using a cost-per-thousand (CPM) metric provides a fair barometer for comparison.

• Formula: (Cost ÷ Audience) x 1,000 = CPM.
• Example: Cost of schedule is $2,500 divided by a total targeted audience reached of 50,000 = .05 x 1,000 = $50 CMP.

You don’t need the Caped Crusader to optimize your media mix — you may, however, want to consult a professional media planner. Because consumers are so fragmented by the growing number of media outlets, I suggest prioritizing “frequency” (number of ads) above “reach” (size of audience). Frequency of exposure is the best way to cut through the clutter.

Andrew Ballard, President of Marketing Solutions Inc. in Edmonds, develops brand leadership strategies for businesses and teaches strategic marketing through Edmonds Community College. He can be reached at 425-672-7218 or by e-mail to andrew@mktg-solutions.com.

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