Considering Competition in Media Planning

Leonard M. Lodish
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Leonard M. Lodish: University of Pennsylvania

Management Science, 1971, vol. 17, issue 6, B293-B306

Abstract: A normative mathematical procedure for the media planning problem is proposed which explicitly considers the effect of competitors' media schedules. A predictive model is developed to evaluate expected market response due to an advertising media schedule considering the anticipated schedules of competitors as well as other major advertising phenomena. Heuristic search routines are used to select and schedule media with the objective of maximizing market response subject to budget limitations. The procedure has been applied on real problems. The market response model first divides people into market segments which are characterized by product class sales potential. Ads placed by the competing firms cause people in segments to be exposed to this advertising and thereby create a level of exposure value which decays over time in the absence of new exposures. The individual's response during a time period is a function of his retained exposure value for each competing firm and his market segment. Summing over individuals and over time to obtain total market response is approximated analytically using media coverage and overlap data that is relatively easy to gather and store.

Date: 1971
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