Tough times in South Africa as the Gross Domestic Product (GDP) decreased in Q1 2019 by 3.2%. It is tough times for the media sector as well, as marketers are demanding more value from their media investment and honestly, the pressure is on.
When looking at Nielsen’s Adex figures for the previous two years (2017 vs 2018), although total media industry investment increased by R1.2 billion in 2018, the growth is R400 million less than 2017. If the South African economy continues to struggle, the expectations of media investment in achieving marketing and business objectives will increase.
What is the media equation?
Is there a media math to marketing investment that is the answer to achieving business goals?
- Is media beyond numbers? Beyond reach and frequency
- What is the media equation? In line with marketing investment
- How can media solve or address marketing and business objectives? Can media provide an answer
Media practitioners should be right up there with stockbrokers and scientists because essentially media is a scientific game played with numbers. They say media is about art and science, well I say that science gives the art direction. Insights gathered from data analysis fuels creativity for effective media placements.
Media is a numbers game, well actually more than just numbers; the math goes beyond just booking media. The numbers include media spend ratio analysis in comparison to total channel objective or marketing objective rational. This includes intermedia and intramedia analysis. The numbers are also audience reach figures by target market, in addition to how much it would cost and lastly for what reason.
What is the function?
The media function is a complex operation for any business. Media as a part of the entire marketing ecosystem is very sensitive for any business, why is it complex? The main reason is because it has so many parameters. Media is an investment that must attribute returns for an advertiser.
Media, in its entire sense e.g. Above the Line (ATL), Through the Line (TTL), Below the Line (BTL) or Digital, involves complex operations such as billings, bookings and media inflation calculations in relation to media value and discount.
Lately we have seen a wave of marketers that have decided to bring media (mainly digital) in-house because of better operational efficiencies that support the overall business strategy.
(Source: Advertising Media Planning, 7th Edition, Jack Z Sissors and Roger B Baron)
Can there be an equation to the Media Math?
Media placements calculated to business objective ratios are necessary. This could mean how much brands invest in relation to competitors and the operating category.
The consumer is the focus of advertising and advertising is not cheap, hence it should perform to business objectives. I see media talent becoming business consultants in the near future because of that intricate understanding of media.
Can the extended equation be a Media Logic?
Beyond reach and frequency or lead generation through digital media performance marketing, is the logic or reason to the exposure.
(Source: Advertising Media Planning, 7th Edition, Jack Z Sissors and Roger B Baron)
Last check
Media is a marketing sub-function that is sensitive because it includes “capital” or “investment” which must bring in returns. The main duty for media placements is to equate to the marketing objective, which additionally is an overall business objective.
Here is my Media Equation:
Firstly, marketing objective that the media solves should be rated from a 5-point scale with five being the highest and zero the least.
Media Value = Marketing Objective x Media Budget/1000
If the marketing objective is very important, for instance if the objective is for media to drive product leads, then the formula can input marketing objective as 5 (highest priority).
The formula could look like this:
Media Value = Marketing Objective x Media Budget/1000
Marketing Objective = 5
Media Budget = R1 000 000.00
= (5 x R1 000 000.00) / 1000
= 5 000
= Media Value should drive 5 000 business leads.
Please note: This my own formula for Media Value.
From an efficiency perspective, all media specialists should not only be hybrid in media understanding, but also act as business consultants that use media touchpoints to solve complex business problems.
Sources:
Advertising Media Planning, 7th Edition, Jack Z Sissors and Roger B Baron
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Nkateko Mongwe is a media analytics, market research and data insights specialist. He is one of a few industry hybrid media insights strategists with all round experience from leading media owners, leading media agency group and at client side leading national brand. He is a contributing member of the IAB research council and the Publisher Research Council research committee. He was one of the judges of the yearly AMASA 2018 Awards. He featured in The Media magazine’s MOST Awards edition. A passionate, opinionated writer and media analytics presenter/speaker. @datainsights88
