Advertising Media Planning using In-depth Understanding of Consumers

Yomiuri magazine Ojo
Advertising Media Planning using In-depth Understanding of Consumers

Up till now, quantitative data, focusing on media contact rates, has been used for ad media planning. "However, not only quantitative data but also qualitative data is essential for media planning," says Hideaki Koizumi of SPI. We asked him a few questions about media planning which tries to understand consumers' psychology and behaviors.

- Qualitative analysis is starting to be talked about a lot for ad media planning, what exactly is meant by 'qualitative'?

Up till now, quantitative data has been used as the standard basis for choosing media at the media planning stage when focusing on mass media. However, we should also look at media from the consumer's psychology and behavior points of view. There are two ways to consider adopting qualitative data into media planning.

One is to consider that there may be an "index" available that measures the effects that strongly influence consumer psychology. The other is to try to come up with ideas for new analyzing methods for the media plan. In other words, explore using unique consumer insight research, just like an account planner does for advertising creative, and methodizing it for media planning.

We, SPI, want to eventually realize the development of analysis methodologies that take into account qualitative factors when doing media planning.

- Such a movement has not existed up till now?

'Recency Theory' has. But this theory is somewhat misunderstood. The theory goes that advertising only needs to reach each individual consumer once, but that continuity of the process is key. In other words, it's like a theory for maximizing reach. However, in actuality, this is not so. It is a theory based on a concept that 'the advertising message fulfills its function most directly to the consumer who is about to purchase'.

What this means, for example, is that nobody wants to buy toilet paper when they already have some. An advertising message sent at this time won't work effectively. The way of thinking is that when it (toilet paper) has run out that is when the advertising message has an actual effect. Though the timing of running out of toilet paper is different for different people, improving the reach as much as possible in such a situation improves the cost effectiveness. To sum up, 'Recency Theory' is allowing media to contact the purchaser when they really feel a desire and are in need. Otherwise, there is no effect.

Searching for Media that is Close to the Consumer

- How do you actually conduct media planning?

Firstly, there is a methodology just as there is with creative planning. There is a method of finding out some advertising medium in things not previously acknowledged as media before. For example, in the case of Nike likening a wire trash can in a park to a basketball basket. Another example is drawing an advertisement on a big lawn for a beer brand whose ingredients are all natural. These are examples of thinking of ideas for new and unique media. Same as with the account planning methodology, it's based on qualitative data.

To do this, first of all, it is necessary to understand the consumer themselves and to study which media can really reach the consumers. Specifically speaking, bringing out ideas from the analysis of the target consumer's daily actions. So, find the most suitable media by understanding how consumers lead their lives and with which media and when they have contact and with what sort of feeling or circumstance. The other method is by studying the brand's themes. For example, if there is a brand whose concepts are innovativeness and uniqueness, what are the most suitable media to express such concepts? Which medium can the target consumer feel the brand's innovativeness in the most impressive way? Is it an existing medium or a new medium? There may be a medium which can bring the advertisement much closer to the target consumer. Thinking in such a way is this methodology. We believe, with the incorporation of these two methods, media planning that grasps the true sense of consumer insights can be done.

Place Advertisements to Bring Advertisements Closer to the Target

- Do you actually investigate consumer behavior?

There is a view of 'brand contact' in integrated marketing communications (IMC) and brand theory, in which, instead of considering the receiver as a group of targets, consider the receiver as just one person, and then watch how the person leads their life with what kinds of behavior, with what kind of feeling.

Specifically, SPI has adopted what we call, 'A Day in the Life' method. This is a method, by which a media planner describes the profile of a consumer and one day of their life, diary-style, based on examining quantitative/qualitative data. For example, a 36-year-old businessman with an annual income of around 5 million yen lives in a condominium with a total of 4 family members. The wife's hobby is...describing what kind of person the target is in such a way. Also, examining media contact from when they get up in the morning until the fall asleep at night. First of all, they may look over the morning newspaper. And since not much time is available, they look over only topical articles, such as education and childcare related articles since the daughter is entering elementary school next spring, etc. This way, we examine the consumer's psychology, not just by what kind of media they have contact with, but also why they are having contact with some deep analysis.

By analyzing in this way, we can discover how consumers come in contact with what media, on what occasion, and with what kind of feeling. Through this, we can bring out the findings and ideas for media which do not easily turn up just by analyzing quantitative media contact data. For example, people who like foreign films tend to go to English conversation schools. Suppose that such people have a strong feeling for wanting to go abroad and come in contact with the outside world. If such things are seen, an idea such as putting up posters of foreign films at English conversation schools can come to mind.

- Can you please comment on how to place advertisements in truly effective places?

Up until now, it seems like the concept starts more from just placing advertisements in places full of people. But from now on, it will be necessary to have an idea as to how to bring the advertisement closer into someone's life. In the current media circumstances, without the idea of 'bringing advertisements to the target' rather than just 'placing advertisements', the advertisement's effect towards the consumer is diluted and does not work effectively. Moreover, the thing that does not work effectively on one person does not work on the masses either. We feel that it is the era of grasping the target as an individual person.

Qualitative Data Plays its Role as a Hypothesis Deviser

- But advertising still does play the role as an informer to a lot of people, right?

In actual media planning, quantitative facts are also incorporated. Qualitative data is applied to search for any distinguishing medium in the media planning phase and for each individual occasion. Later, we also always analyze cost efficiency from a quantitative point of view. But it is qualitative data that is used in the hypothesis devising phase.

In other words, in media planning, it is necessary to see not only the figures but also the brand as a whole and the consumers as well. Although a media planner has the image of a person who does a lot of calculations in front of a PC, there may be a mistake in only depending on figures.

- What exactly do you mean by that?

For example, there is a brand whose target is older people who play sports with younger people and who actively go abroad in spite of their age. What advertising medium is most effective for such a brand? If you use only CPM analysis to choose the medium that contacts people over 65 years of age, then magazines such as 'Sokai' and 'Kenko' come out on top of the list. With common sense it is easy to discover that such magazines are read by people who want to be healthy rather than healthy old people. But if you just pay attention only to the figures, sometimes you miss this point.

If you find out that the target has a behavior pattern of getting up in the morning and going to a sports club, sports clubs may be the most effective medium for strengthening the brand. In this way, qualitative data is adopted in the phase of generating ideas for finding a connection.

- Accordingly, you examine the consumer's actions diary-style, does this mean that you try to find something attractive within this?

It's better not to look at the individual factors piece by piece. Firstly, read them as a whole and look at what kind of person is the target. Then, use that as the basis for a concept. This way, there is a different outcome for the planning which is not based solely on media contact data figures.

Tendency of using Original Media in Order to Get Attention

- What is the reason for trying to conceive a new medium free from the former media framework?

I suppose there are two aspects. One comes from the trend of rigorous observation of the advertising effect. So, in actuality, which medium produces how much effect? For example, what is the effect of a newspaper advertisement compared to other media? Not only the effects of mass media but also the effects of flyers, outdoor ads, Internet ads, etc., are all observed using the same index. The concept is that it is necessary to analyze each of them properly. This trend has become fairly established.

The other one is the concept generated from account planning and consumer insight theory, the question of is quantitative study really enough? Usually media evaluation is based only on contact with people using such measures as GRP for newspapers and TV. However, it may be impossible to thoroughly fulfill the advertising purpose without understanding the consumer a bit more deeply. This is generated from the concept that, for example, when considering the media which leads to actual sales, there may be a medium that catches the consumer's heart apart from existing media.

- Do advertisers also actively work on applications of new media?

Though it's downright wishful thinking, advertisers often ask us if there is any method by which it can be justified since they want to reduce the use of existing media and instead run advertisements using new media including the Internet. They want to reduce the overall advertising budget but keep the effectiveness same as before. This, naturally, leads to the concept of adopting media never used before. In reality it does not work so easily. However, such attempts are actually increasing these days compared to before.

- But doesn't this lead to the choosing of only novel media?

Certainly when it comes to using media other than existing ones, there is a tendency to come up with something original and trying to find a topical or eye-catching media. But we don't think this as a 'big idea' in a true sense, or as an idea that truly grasps consumer insights. An original idea is not equal to good media planning. Current media planning also has the trend of being two extreme; either a reach oriented quantitative one, or an original one which pleases clients.

- Considering the qualitative aspect, will the media consequently chosen change?

Though objective thinking without being bound by the existing framework is basically adopted at the planning phase, it is true that mass media is overwhelmingly advantageous with consideration to its cost effectiveness. For a specific purpose, for example, for building recognition and/or sending specific messages, mass media can't be avoided. In some type of business and categories, only mass media can be enough. For example, confectionery is a product that can sell just once it is recognized. However, with consumer durables and/or B2B, it may not be applicable. In such cases, each medium generates its role individually.

We have experience of obtaining good results only with radio spots for a discount liquor shop. As we studied the reason, we supposed that people who go shopping by car frequently go to discount shops. Of course, there is also a possibility of the effect since the advertisement was heard while driving in a car. The background of the purchasing action should have the accumulation of past information obtained from advertisements on TV, in newspapers and in magazines. Still, the last push is the most effective, same as with the formerly mentioned 'Recency Theory'. The information accumulation effect is certainly based on mass media, though unexpectedly not many media can provide that last push.

Analyze Factors of Advertising Effects Objectively

- How do you analyze advertising effects?

For example, there is an evaluation method where, if you decide higher sales is the desired effect, you input the price of the goods, distribution rate, and quantity of applied ad media, as factors into a model formula, then examine how much each of those factors contributes to sales. In short, you find out what is effective to share of the market. As a matter of course, in general, price is the most effective factor (highest contribution rate). Even for companies/products who are mainly using TV advertising, using just flyers and having no TV advertising may follow as the second most effective factor. But since results are all different depending on the product, advertising creative, sales channels, etc., it's impossible to generalize.

The important thing is to objectively analyze various factors. And there will be the possibility of missing important factors by analyzing based mainly on existing media.

- What is the aim of the advertising effect?

Though it is eventually sales, we also analyze a specific index that leads to sales. For example, there are cases such as setting an index to the favorability and/or recognition rate of the brand, and then analyzing how much effect was generated by each medium towards such factors. Through several years of analysis like this, other aspects are also found. For example, the advertising efficiency of TV for some index was overwhelmingly good in the initial year of rolling out of the product. However, in the second year, newspapers improved their advertising efficiency a lot while TV lost its advertising efficiency. Through using celebrities for advertising in the initial year product recognition increased. However, product understanding became more important than recognition in the second year. Such changes can be seen as well.

Also, the advertising effect of each medium can vary significantly depending on short- or long-term purposes. Analyzing under a short-term purpose, the results can be that flyers are more effective than TV, just like in the aforementioned case.

- Should analysis based on both short- and long-term advertising effects be done and used depending on the case?

We also run a 'One Campaign', which it is commonly called when analyzing media distribution by allocation. Basically, it is studying a one year period; when, how much, on what, how and actually how much effect was found. Short- and long-term advertising effects can't always be judged without observation over some period of time. However, we basically believe that long-term effects can't be expected with a campaign which has no short-term effect.

Also, since various factors, including price, affects the analysis, there are cases of studying only advertising and separating it from other such factors. For example, when the new medium, which is not normally used is needed to be adopted for building the brand, that part is evaluated separately. It's case by case.

Drawing Ideas from the Contact Point between Consumers and Brands

- Going back to the planning issue, do you let 'creatives' participate in creative media development?

Not for now. This is about the basic concept of planning. It is difficult question indeed... Actually, I have experienced receiving stimulus for planning from the account planner of an advertising agency. But planning carried along by creative is problematic. Some account planners are not from the marketing field and have unique ideas, but they also have a tendency of taking the direction in an original way. A sense of balance is very important for media planners who conduct planning of advertising efficiency which is related to a company's performance.

- Is there a tendency to be at a loss in this current environment where anything can be media?

That's true. As I said in the beginning, with the qualitative planning part, it's necessary to thoroughly understand the consumer's situation and media contact within the consumers life to find the contact point between the brand message and the medium, and then search for the most suitable medium therein. It is actually a very traditional method indeed. However, it's somehow the most needed factor for a media planner at the moment.

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