Ao r
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The document discusses the history and evolution of media agencies and appointment of advertising agencies of record (AORs) in India. It covers key aspects of strategic media planning conducted by AORs such as consumer insights, objective setting, effective frequency setting, and various tools and models used. The roles and challenges of AORs in large media planning and buys are also summarized.
Ao r
- 1. Media Agency & AoR Business By Prof. Indrani Sen
- 2. History of AOR Until late 90s : Mostly full service agencies Mid 90s : Appointment of HTA by HLL & creation of Fulcrum, exclusive buying unit for HLL by HTA Late 90s : Emergence of AORs as buying agencies, planning retained with creative agencies Post y2k : Emergence of Media Agencies as Planning + Buying AOR, appointment of AoR across the country
- 3. Strategic Media Planning (SMP) Strategic Media Planning Implementation Planning g
- 4. Implementation Planning: Market Prioritization Sales targets Category and Brand Growth Market Share: CDI & BDI SOV vs. SOM Brand Task
- 5. Implementation Planning: Media Mix Selection Campaign objectives Product linkage Quality of media consumption Inter Media efficiencies Media multiplier studies Budget
- 6. Implementation Planning: Frequency Reckoners Marketing Factors Product Life Cycle /Loyalty/Purchase Cycle/Competitive Response Involvement/Brand Share Creative Factors exposure/length/Complexity Media Factors Category Clutter / Recent advertising / Environment / Continuity
- 7. SMP: Consumer Insights Lifestyles Attitudes User behavior Purchase behavior Media consumption intensity Affinity groups Brand Awareness Brand Attractiveness
- 8. SMP: Objective Setting Campaign tasks Brand Health Tracking Data Recall tracking Communication relevance tracking Awareness to Adoption Studies Future Purchase Intention tracking Usership Commitment Scores Cannibalization studies Conversions model
- 9. SMP: Effective Frequency Setting How many? Based on empherical research Robert Grass : 3 to 8 exposures Krugman : 3+ exposures Michael Naples : Proved Krugman Ehrenberg/Jones : 1 exposure Jones : Diminishing Returns Erwin Ephron : Recency Planning
- 10. History of Reckoners in India Pre AOR era : Krugman / Recency Post AOR era Unilever frequency reckoner Proprietary tools & processes Benchmarking
- 11. SMP: Awareness Modeling Useful for weight setting & Scheduling STAS models - Jones Adstock - S.Broadbent IRI Experiments - AdWorks One Adstock Budgets - Ephron
- 12. Mike Von Gonten X-10 experiments
- 13. Adstock effect
- 14. Proprietary Tools: Some Examples
- 15. TOOLS : CHOOSER, MAP, RADAR, IMnovations
- 16. CONSUMER INSIGHTS: IT ALL BEGINS HERE We discover the secrets that drive consumer behavior. We move far beyond the questions about what people want and start looking at what they care about. How they spend their time and money. And ultimately, how they define themselves. These are the Passion Groups. CONTACT INNOVATION: CREATING UNIQUE MEDIA PROPERTIES If we know who they are, what they want, and what they do, then we can unearth new ways to interact with them. If there isn't a media solution to our clients' problems, we create a solution. We develop unique media properties and will pursue the opportunity to create any environment. We are not afraid to be pioneers and explorers.
- 17. MINDSHARE ATG TOOLKIT AdSales TM - Econometric Modeling AdMind TM - Modeling Consumer Opinions AdInvest TM - Budget Allocation AdMix TM - Mixed Media Planning AdResponse TM - Response Curve Generator AdPhase TM - Media Phasing
- 18. Brand Asset Valuator Toolbox Libra: channel share optimizer FRED: frequency distribution model Playground: TV analysis system Planning and awareness programs Media over-spill optimizers TV budget allocation model Syndicated software
- 19. 7 I’s Media Process Media In Mind BrandScape Teleweighter Prophecy Cognito Total Impact Planner
- 20. Madison Madison Mcube Madison MPP(Ratings for new shows) Madison Town & Country Madison Adwise/ Analyser
- 21. Efficiency + Effectiveness Efficiency : Plans Buys Negotiations Extensions beyond mass media Effectiveness : SMP Systems Tools Activations Innovations
- 22. Strategic Nature of Media Buys Savings are central to the concept of AoRs Value ads make healthy brands & satisfied clients Innovations win customers & reviews Activations build on the customer relationships
- 23. Some TV buys 20000 secs on evening prime time band, 9000 secs on afternoon time band, 10000 secs on ROS IPL contract for 50 crores Sponsorship of new serial on a GEC Co-sponsorship of prime time news on all Hindi news channels Advertiser sponsored program on all Regional channels in South Imagine buying all this in one month.
- 24. Some Print buys 3,000 cc colour, 5,000 cc B/W 4 pg pullouts in leading dailies Page Sponsorships Event Promotions with publications Back Page contracts on lead magazines Advertorials Imagine buying all this in one month.
- 25. Scale IS everything Scale has changed life at the AOR Resource requirement The buy structure The negotiation process The time & effort The value ads The feedback / evaluation systems The Implementation systems
- 26. Type of buys Planned Annual Quarterly Campaign based Slabs Non-planned Overnight Distress Innovations
- 27. Planned buying Parameters Recent business worth Forecasted spend Buy structure Seasonality of spend Ad size & type Rate history with client Agency business record Client / Agency credit record Seller buyer relationships Negotiations
- 28. Non-planned buying Parameters Rate history / volume of business with client / agency Impact of innovation Negotiations
- 29. #1 in circulation, #1 in readership, BUT NOT IN PLAN Other factors Product linkage micro market analysis (SCR) Inter media cost efficiencies Proprietary media consumption tools Client priorities Agency priorities
- 30. Typical Brief to AoR Minimize non planned buys Demonstrate Innovative buying structure Campaign tasks are top priority Savings come next, but must deliver target savings
- 31. Evaporating Budgets Budget cut / fresh priorities Re-re-negotiated deals Internal readjustment Seller is still hopeful Buyer-not so sure…March is 4 months away Savings are still holy
- 32. AOR buying framework AoR business commitment Overall business worth Media Inflation on lead category media/vehicles Medium-wise split * Past inventory consumption * Knowledge of Past publication rates * Current rates of existing non-AOR clients * Competitive rates across markets
- 33. AOR buying framework AoR business commitment Essential pre-requisites Marketing Plan Annual / Quarterly plans Media Mix Media Objectives Vehicle Selection Volume requirement
- 34. AOR buying framework AOR business commitment … and when AOR deals are very demanding The AOR has a way with media sellers There is always a distress sale Plethora of media options Better planning
- 35. AOR buying framework AOR business commitment And in the event of a stalemate * Direct deals follow * Client enters deal making, with agency closely informed * Seller still comes back to AOR buyer post the deal for deal consumption
- 36. God is in the details Scheduling Monthly/Weekly/Daily Based on Plan requirement Deal Structure Previous post buy analysis Budget approved Un-consumed Inventory Expensive / Low cost inventory consumption Planning Implementation Planning Buying & Negotiations
- 37. Large Deals Not necessarily the best rates
- 38. Small Deals Not necessarily the worst either...
- 39. Big campaigns Mammoth tasks Big budgets Big trouble Buyer tasks becomes COMPLEX MAGIC.
- 40. Finally, March 31st Short on commitment Exhausted budget Delayed billing Minimal campaigns Next year planning starts Reconciliation, shortfalls New budgets, New hope, New commitments
- 41. Pitfalls: Conflicts National consolidation across media: Regional vs. Central Sales Teams of Media TREND #2
- 42. Pitfalls: Increased Accountability So, what did India Got Talents achieve last weekend? TREND #3
- 43. Pitfalls: Declining Trust Past failures of AoR in delivery Direct deals by clients Research pitfalls, effectiveness of tools questioned TREND #4
- 44. Profitability vs. People Investment Excellent tools Stressed workplace Quality of work ? TREND #5
- 45. Current trends Rate increase and clutter are driving investments higher Seller becoming intrinsic part of decision making Agency value addition is critical Deliver first, prove it & then claim Commissions are under pressure Media Agencies are setting up more and more specialized cells / subciddiaries working on fee basis
- 46. The business is still good and there is no threat in immediate future….