budget_calculations_developing a media plan t1 2016.docx Reynolds 13/03/2016Understanding advertisingEstablishing a budgetWhile marketers use a number of different methods to calculate budgets, a common method is the Task orObjective based method – also referred to as Zero Sum calculation. This process takes the desired outcomeand works out what activities are required to achieve that outcome building up the total budget. Media vehicle/size/deliveryApproximate cost ( January 2015)Television100 TARPS nationally per week(TARPS = Reach x Frequencye.g. 50% reach x 2 times)$220,000Six good weeks (100 tarps) of national TV$1.32 MillionRadio1 radio spot per day M-F nationally on a network like TodayFM$22,000A heavy weight week of radio$110,000MagazinesFull page colour (FPC)Major women’s$30,000 – 36,200Full page colourFashion & Beauty$10,000 – $15,000Full page colourLifestyle Home & Garden$8,000 – $32,000Full page colourMen’s lifestyle$7,500 – $11,000Full pageKid’s$2,500 – $6,500Note: Double page spreads (DPS) are generally charged at aslight discount rather than 2 page cost. DPS cost is Full pagex 1.9So DPSMajor Women’s magazine$68,780 per spread.NewspapersVaries significantly depending on the size of the market(city/Town)Full page Mono (B/W)Major metro – General news(Monday through Friday)Sydney: $78,000Melbourne: $60,000Full page Mono (B/W)Major metro – General newsSaturdaySydney: $97,500Melbourne: $89,500Full page Mono (B/W)Major metro – Topic section(Monday through Friday)$26,000 – $43,000Full page colour loadingsFront page +100%First three pages +50%Prior to page 13 +40%OutdoorBus Shelters – Fortnight packageNational Heavy(850 sites @ $792 each)$673,200 per fortnight budget_calculations_developing a media plan t1 2016.docx Reynolds 13/03/2016 National Medium(650 sites @ $840 each)$546,000 per fortnightNational Light(500 sites @ $897 each)$448, 500per fortnightBus advertising in Sydney60 buses one poster $25,000 for a four week contract – Soldin minimum 4 week contract blocks.Roughly $105,000 for a nationalmetropolitan campaignBillboard super sites – 13m x 3m Sydney $15,000 each for afour week contract – Sold in minimum 4 week contractblocks.Media costs generally follow population so Melbourne &Sydney are similar. Brisbane and Perth less (roughly half) butsimilar & Adelaide less (roughly one quarter)So roughly 15 + 15 + 8 + 8 + 5.Roughly $50,000 for one site in eachcity for four weeks. Creative productionCosts vary depending on the creative approach and the quality of production. If celebrities are used thencosts for talent alone can be from tens of thousands to hundreds. Shooting locations film or TV candouble or triple the costs.General indication for basic production:• Production quality brand TV = $300-500,000• Production Radio = $10,000• Production Mags & Outdoor = $20,000Examples1. With a plan for a 3 month program using women’s magazines with full page ads in three differentpublications including Women’s Weekly –i.e. three ads per month for three months – the budgetwould have to be $267, 600 for media (3 x 36,200, 3 x 27,500, 3 x 25,500) plus $20,000 forproduction.2. Three months of TV nationally in a flighting schedule of three weeks on, two weeks off (3on-2off-3on-2off-3 on) a total on nine weeks on air would be $1.98 million plus a production allowance of$300,000.Major publishers:Bauer Media: http://www.bauer-media.com.au/Pacific Magazines: http://www.pacificmagazines.com.au/Pages/Magazines/Fairfax: http://adcentre.com.au/News Corp: http://www.newscorpaustralia.com/our-brands
