The interns were given an intern project and we had to create a "New Business Pitch" answering an RFP. In this document you will see the media plan for digital, Out of home, and TV. The budget breakdown and our competitor mix.
2. 1
Executive summary
R2C Group hopes to attain Spotify as a client and execute their media dollars in a strategic way.
The following document describes our agency and explains how we plan to utilize our media,
analytic, and creative tools to maximize success for Spotify. We began building our strategy by
conducting primary and secondary research to better understand the target audience. In order
to reach the “Modern Mixtapers” and “Plugged-Ins”, we recommend three channels: TV, Digital
(display and search), and Out of Home (OOH) digital billboards. For our media strategy, we
utilized MRI data and looked at the best performing media channels for our current internal
clients. For our creative direction, we chose the tagline “share the moment” to inspire people to
create, find, and share playlists with friends and other listeners. We believe there is a music genre
or playlist made for every person. Whether he/she can’t sleep, is having a party, or going on a
road trip, there is a playlist for every moment. R2C Group hopes to help Spotify convey that
message.
Agency Overview
Capabilities: R2C Group is the most data-driven creative and media agency you will ever meet.
We’re all about performance. We link brand strategy, creative, and production to dynamic media
buying and advanced analytics, achieving unbeatable success for our clients. We have proven
that it is possible to deliver on both sales and branding without making sacrifices. We call it
transactional brand building.
Locations:
Portland, Oregon
San Francisco, California
Philadelphia, Pennsylvania
Providence, Rhode Island
Number of full-time employees:
200 skilled employees
18 years in business
Profit of $425 million a year
In-house services offered: Our Portland office offers pre-production, production, and post
production services. We hire freelance directors who specialize in our client’s brand needs. The
San Francisco office specializes in digital strategy and analytics, allowing us to provide our clients
with up-to-date dashboards and reliable success measurements. Our Providence branch, called
MMSI, focuses on a pay-per-inquiry strategy.
Media Channels: Our aggressive media buying approach and optimization team are fueled by
advanced technology and deep relationships. We have an upper funnel, mid-funnel, and lower
funnel strategy when buying media. Upper funnel serves for high reach, strong programming
context, and a longer tail response. The mid-funnel approach is a good combination of reach and
frequency and provides response volume at scale. Lastly, the lower funnel approach provides
lower reach, good frequency, captures demand, and pays out. There is also limit to scalability.
3. 2
Meet the Team
Madi Budge
Madi Budge works on the Account Management team in the Client Services
Department. At R2C Group, Budge is involved in the effort to develop brand
strategies and optimize sales for five R2C Group clients: 23andMe,
Wargaming, Peloton, SoFi and SimpliSafe. Budge is trusted with the
creation of audience profiles, conducting advanced analytics and
organizing meeting times. In addition, Budge has knowledge in disruptor
brands, having analyzed the media habits of the top disruptor brands the
past three years, in which Spotify is included. On the Spotify account, Budge
and the rest of the client service team is the main point of contact. They are here to answer any
questions, concerns or comments and relay the information to others on the campaign. She and
her team strive to ensure the satisfaction of the client while simultaneously increasing brand
awareness and sales.
Mika Chesnutt
Mika Chesnutt is an Account Manager in the Client Services Department
at R2C Group. She works on the accounts of some of R2C’s longest clients,
BISSELL and Consumer Cellular. She helps the larger team consistently
deliver excellence and increase sales for these clients while developing
their brands, which ultimately keeps these clients coming back to R2C
Group. Chesnutt consistently checks in with the various departments to
ensure deliverables are met in a timely manner. She schedules both
internal and client meetings, performs analysis on current shows, and
constantly engages in conversations on how to optimize performance and build brand awareness
for her clients. On the Spotify account, the client services team is your day to day contact, here
to keep you informed throughout the process and answer any questions that may arise.
Brina Woolhiser
Brina Woolhiser works with the Creative Department in Portland as a
graphic designer, story boarder, and sometimes illustrator. She specializes
in illustrative motion graphics. Woolhiser has recently been working on
style frames for R2C clients: SimpliSafe, and SoFi. She also is greatly
involved in the visual research that goes into a creative brief that
determines the creative style. On the Spotify account, Woolhiser executed
the storyboards, mood boards, print ads, motion graphics editing, music
editing, and creative direction.
4. 3
Pearson Kunz
Pearson Kunz works as both a Senior and Post Producer in the Production
Department. For the Spotify campaign, he organized the logistics of the
shoot while also coordinating the post-production process. This includes
an involved role in the creation of edits as well as the supervision of the
music mixing and graphic pop-ups. Also, for this particular shoot, he acted
as the Director. Pearson ensures that all strategic messages originally
requested by the client are delivered in each spot both visually and aurally
– all within the specific time and aspect requirements of broadcasting. In
the past, he has worked Consumer Cellular and SoFi.
Zachary Cardinal
Zachary Cardinal works with production and is our Executive Producer/
Director of Photography for this spot. He works closely with our
production and post production team to bring our spots to life. He has
worked with clients such as Bissell, Humana, SoFi, Tax Act and Google. He
has budgeted for the spot but also works on set to put everything
together. On set he works with the Director and the production manager
to ensure a smooth production process and is your main contact on set
for related questions or inquiries.
Hosana Medhanie
Hosana Medhanie is a planner in the Media Planning Department in
Portland. At R2C Group, she often aids the other media planners with
analyzing data from different markets and media, creating weekly client
status reports, updating data for client daily files, and studying media
usage using Tracker and MRI. The clients she works with to determine the
types of media to implement include Humana, Wargaming, Lendio,
Premier Care, and Redfin. On the Spotify account, Medhanie did
preliminary research on Spotify and its competitors, as well as running
Kantar reports to compare competitor spending.
Deanna Nanni
Deanna Nanni is a planner in the Media Planning Department and an
Account Manager in the Client Services Department at R2C Group in the
Philadelphia office. Nanni works on a few clients including Adore Me,
Rebagg, Namely, and Total Gym. She is in charge of note taking per client
call she attends. She is in charge of sending out internal status reports,
setting up NCA’s, conducting research, and analyzing MRI data. On this
project she created a media plan using MRI data and utilized Tracker to
create a Response Index. Nanni allocated the 5 million dollar budget
5. 4
between TV, digital, OOH, and production. Lastly, she projected budget and optimizations for
Phase two planning. Nanni can answer any questions regarding the media plan and budgets.
Kayla Gonzales
Kayla Gonzales works with the Digital Department in San Francisco to
supply digital strategies and analytics insights to clients like Humana,
Consumer Cellular, and 23andMe. She specializes in creating and
updating dashboards that display campaign performance metrics.
Recently, she has worked with clients like Total Gym and Perfect Fitness
to monitor search and display campaigns. Gonzales also works with the
search and display teams to strategize optimal media partners and
budgeting. On the Spotify account, she created a digital strategy for
search and display campaigns. She also created a preliminary dashboard
that can be added to as the campaign begins. Gonzales will be happy to answer any questions
regarding digital strategy or performance measurement.
Allegra Reich
Allegra Reich is currently working in the Media Department at MMSI. At
MMSI, she often works with the media team to track daily client leads on
various media outlets as well as researching new media to contact. Reich
has been working with the newly acquired client Leesa. She has created
a specific case study regarding this client and the projected improvement
Leesa will face after collaborating with R2C Group. Because Leesa targets
a similar target to Spotify as well as satisfying specific consumer needs,
these results can be translated to Spotify’s performance when
collaborating with R2C Group.
Process
Strategic: R2C Group specializes in transactional brand building, a unique advertising approach
proven to substantially grow our clients’ businesses and achieve their brand goals. With an
accountable mandate of tying every single transaction back to the dollars invested in driving it,
we guarantee that our clients’ budgets will be used efficiently. Rooted in the advanced analytics
of direct marketing, the essence of the formula is proven: instant-action messaging, extremely
aggressive media, and daily decision-making insights. The result is lower cost brand growth.
Analytics: We provide leading edge analytics that deliver actionable performance insights daily.
We use state of the art proprietary analytics platforms such as Signal Link, Wavecast, and Brand
Pulse. All clients are provided with a personalized dashboard that reports key metrics and insights
into what media and strategy is working best for the campaign. With a dashboard that is
customized to each client’s needs, full transparency is guaranteed.
Media: R2C Group employs over fifty media buyers across all channels. R2C Tracker, our
proprietary media database, has $8 billion of sales data for thousands of campaigns covering
6. 5
every category and audience, allowing us to more effectively target. We also work throughout
the entire marketplace: General, DR, Digital, Upfront, Scatter, Performance, Programmatic,
Fixed, and ROS. Our buyers aggressively manage media daily – our teams and technology make
sure we can react to the fluctuations instantly. They are constantly navigating the marketplace
to gather insights, and the R2C Group compensation model incentivizes everyone when they
produce creative and plan/buy media that works.
Creative: Our creative model looks like a triangle.
We start with “The Hook”. We want to engage
the audience with a strong emotional or rational
idea. Then we ask “Why Buy?” Here, we supply
consumers with reasons to believe the message
and explain how we can solve their problems or
meet their needs. Next, “Prove You Are Telling
the Truth”: we provide the audience with
demonstrations, reviews, and testimonials to
instill trust and a sense of value. We then “Prove
Your Brand is Trustworthy” with guarantees,
endorsements, and justifications for the deal.
Lastly, we “Make Them Respond” by creating
urgency with a limited offer or a bonus, resulting
in an interaction with the brand that provides
both awareness and a potential sale.
Research Tools
In the discovery phase of our transactional brand building process, we use primary and secondary
research to develop a situation analysis of the brand. The competitive analysis includes media
spending, media types, messaging/offer review, spend by week/month/year, and commercial
lengths. The target audience profile includes demographics, media consumption,
psychographics, customer satisfaction, and customer segmentation. The primary research
includes brand momentum and image studies, attitude and usage studies, focus groups, and
ethnographies.
Our proprietary online research tool, MindReader, allows us to use customer attitudinal data to
help make decisions at all stages of campaign development. MindReader’s Attitudes and Usage
gives current profile of customers by identifying attitudes, perceptions, preferences and
usage/substitutions, informing the brand situation analysis and creative development. Concept
and Copy identifies the most appealing ad elements that best deliver brand communication goals
while driving purchase intent. Brand Pulse, the brand momentum and image study, gives a 360
degree view of advertising communications performance against the competition, guiding brand
positioning.
7. 6
Creative and Production
Research tools and process that will inform creative:
The process for designing integrated creative messaging that achieve response goals on
a CPA basis:
CPA Goal: $50-$70
The overall goal is to acquire between 70,000 and 100,000 new members.
We recommend using three different media channels in order to reach Spotify’s audience
at various touchpoints. Digital advertising offers an opportunity to effectively retarget
potential consumers and find “look-alike” audiences, expanding the reach of the brand
and increasing conversion volume. A well-developed TV strategy reaches a broad
audience, and will help drive digital performance and increase awareness of the brand.
Finally, out of home digital billboards will offer a dynamic point of interaction – we can
promote different songs/playlists for different holidays, driving mass amounts of
consumers to the application and website.
Creative length recommendation:
Television
o Budget: $2,540,000
o We recommend one sixty second commercial. Sixty seconds is needed to fully
immerse the viewer in the message and music. Shorter commercial lengths do not
8. 7
allow for as many songs to be prominently featured, which could possibly engage
the viewer or listener less.
Digital
o Budget: $1,100,000
o We recommend running a display and search campaign throughout the entirety
of phase one and strongly recommend continuing a digital presence for phase
two. We will have a flighting approach with heavy up on the holidays to follow our
TV schedule. When we are not in our heavy up stages, we will have a minimum
spend of $30,000 spent on digital. Pausing digital campaigns completely could
result in a loss of data, so we strongly recommend a continuous campaign to
maintain accuracy.
OOH- Digital Billboards
o Budget: $262,500
o Digital billboards are a cheaper and more time efficient way of broadcasting our
message across major target markets. The major markets we want to hit are Los
Angeles and New York City. The first flight will take place during quarter four. The
first city we will target is Los Angeles for the weeks of October 24th and October
31st for Halloween. Then we will flight again in Los Angeles for the weeks of
November 21st and November 28th for Thanksgiving. Next, we will flight again in
quarter one in New York City. The first flight will occur during the Christmas
holiday season. The two week flight will be the week of December 19th and
December 26th. The next flight will be February 6th and February 13th for
Valentine’s Day. During all four flight periods, we will have 10 units displayed. A
digital billboard in the New York City market has the potential to reach 313,662
impressions. A digital billboard in the Los Angeles market has the potential to
reach 399,616 impressions. Since we will be flighting during the holiday season we
have the potential to reach these impressions.
Timeline for executing new creative:
TV commercial launch date: October 17th
o Editing and final cuts take about four weeks. A review with Spotify would be
scheduled to see if there are any changes they would like made. Overall process
can take up to six weeks.
Digital launch date: September 26th
o The assets needed for digital can take around three weeks to produce.
Digital Billboard launch date: October 17th
o This can take up to three weeks after filling out contracts with vendors and placing
the digital billboard ads.
9. 8
Case Studies
The Brand: Adore Me is a disruptive e-commerce startup that sells women’s intimates online. To
Adore Me, the 3rd fastest-growing company in NYC on the Inc. 500 list, TV is more than a branding
tool; it’s a direct response channel through which the lingerie brand acquires new customers,
from petite to plus.
The campaign: Recently, startups have been driven into the arms of offline advertising by the
ever-increasing costs of online advertising. Adore Me launched its first TV campaign in January
2015. TV has since proven to be an efficient direct response channel for the brand that’s targeting
millennials. Adore Me turned to R2C Group to manage its new TV campaign because both
companies revolve around the same values: data-driven, fast-paced and focused on optimization.
Compared to traditional TV advertising, R2C Group has an innovative way of managing TV
campaigns by providing very detailed performance KPIs down to the channel, program, day and
time – on a daily basis. Adore Me found this to be a great fit as it wanted to be able to get real-
time analysis of its ad performances in order to optimize and reduce its cost per acquisition.
The results: By going to R2C Group to manage and optimize its TV campaign, Adore Me was able
to noticeably increase its customer base, with the side benefit of growing brand recognition.
What R2C Group did for Adore Me: R2C group doubled Adore Me’s membership base and tripled
website traffic.
Why it is relevant to Spotify: Adore me and Spotify have a few things in common with one
another. First, they are both subscription based companies. Both drive membership/subscription
sales. Spotify strives to have new premium users and Adore me strives to have new VIP users.
Next, they both target millennials. Spotify has a slightly larger audience and also targets men, but
overall, they have very similar demographics.
10. 9
The Brand: Leesa was founded in 2015 with the mission to deliver comfortable bedding directly
to the consumer’s doorstep. The Leesa mattress adapts to all body shapes and sizes as well as
sleeping styles. One in every ten of their mattresses sold is given to the homeless.
The campaign: Leesa launched its first TV campaign in April 2015 with R2C Group. The campaign
features 30 and 60 second TV advertisements geared to target first time home owners in their
late 20s. The ads focus on technology, ease of order, and the impact of social media.
The results: R2C Group increased brand recognition for Leesa through their direct response TV
campaign, creating a passageway from the consumer to the company.
What R2C Group did for Leesa: Based on past sales projections combined with the new ad
campaign, there is an expected increase in sales for Presidents Day of 300% as well as 150% for
Memorial Day.
Why it is relevant to Spotify: Leesa and Spotify target a similar demographic and serve specific
needs. While Spotify targets the younger millennial generation, it also targets those in their
thirties and forties, giving them a large variety of music they can choose from. Similarly, Leesa
targets this same demographic and looks to satisfy the needs of the specific consumer through a
large variety of mattress and bedding choices based upon personal preference.
11. 10
The Brand: Spark Networks was not afraid to claim a spot in an already established online dating
market, practically invented by eHarmony.com and Match.com. Spark’s flagship relationship site,
Christian Mingle, is now the largest resource in the Christian dating community.
The campaign: In the early stages of Christian Mingle’s existence, the focus was on growing the
member pool. This was accomplished with direct response messaging tactics, including real-life
success story testimonials and frequent registered member count updates.
The results: Christian Mingle was at two million members when TV launched in 2011. That
community has grown to 14 million.
What R2C group did for Christian Mingle: R2C Group was able to increase membership by 7x.
The awareness increased by 3x.
Why it is relevant to Spotify: Christian Mingle is an online dating service that can only be used if
a user signs up for a membership. The target market is similar (25-49 years old). R2C Group
serviced a fully integrated approach for Christian Mingle using digital and TV and it was very
successful. We hope to see similar results using digital and TV for Spotify.
12. 11
Media Analytics
Phase one:
We recommend a flighting approach for the media plan. In our allocation of the budget,
we placed a heavy emphasis on TV, with digital efforts being slightly secondary. Time and
again, we have seen TV drive digital performance, and our budget follows that plan. The
flighting plan spends $0 on TV for the first three weeks, then ramps up to $200,000
leading up to the holiday, with an increase to $300,000 for the week of the holiday. Digital
will continue to run throughout the entire campaign. Out of home digital billboards will
run during the holidays. The first billboard will be for Halloween in Los Angeles airing for
two weeks. Secondly we will post another digital billboard ad for Thanksgiving for two
weeks in the Los Angeles market. For quarter one we will post digital billboards for
Christmas and Valentine’s Day in the New York market. Both holidays will run for a two
week flight. We recommend testing two different markets because both are high traffic
areas that will provide us with high impressions. The purpose of phase one is to test
holidays. Halloween is a holiday known for parties, and we want Spotify to be the music
service that provides the perfect playlist for every party. The TV strategy will remind
viewers about the services Spotify Premium offers, and our digital billboards will
encourage consumers to explore holiday related playlists and share them with their
friends. Holidays like Thanksgiving and Christmas are known for family gatherings and
traveling. Because Spotify Premium offers users the ability to listen to playlists offline, we
would want to stress this pain point in our messaging. Often when traveling, consumers
don’t want to waste cellular data or risk having a poor internet connection that interrupts
the streaming experience. Our audience profile shows that the target audience has a busy
lifestyle, and when holidays are added to the mix, the busyness intensifies. Educating
them on Spotify’s offline capabilities would convert more consumers and allow them to
get through the holidays with the perfect playlists.
Utilizing tools like MRI, we were able to pull data from different audience demographics.
Then we pulled data based on television stations that these specific demographics watch.
The three different audiences we pulled are:
o Male/Female Age 18-49
o Male/Female Age 25-34
o ( Adults - Gender and 18-49 - Age - Respondent and Listened to Internet-only radio
or other online music or audio services - Activities done on the Internet in the past
30 days or Listened to radio on the Internet - Activities done on the Internet in the
past 30 days or iTunes.com - Entertainment: Websites visited in last 30 days or
iTunes Radio - Entertainment: Websites visited in last 30 days or Pandora.com -
Entertainment: Websites visited in last 30 days or Spotify.com - Entertainment:
Websites visited in last 30 days).
After pulling the MRI data, we determined that the best performing stations are: MTV 2,
MTV, Comedy Central, E!, FX, Adult Swim, Discovery Family, Spike TV, and Bravo. MRI
showed excellent results with reach and household size.
13. 12
Next, we pulled a response index from Tracker to see where our internal clients spend
their media dollars. We pulled data from Christian Mingle, because they have a similar
target market and are also membership based. We saw that Comedy Central performed
well for them with a media spend of $4,782,780 and an index of 177. We also pulled a
response index for Adore Me. They have spent their advertising dollars on, E!, MTV, MTV
2, Adult Swim, and Bravo. All of these stations performed well for the brand. Lastly, since
the media plan consists of mostly larger networks, it is important to add lower funnel
media. Looking at our competitors, it was clear that VH1 Classic and MTV Live were strong
performers for these brands.
Overall, the TV media plan consists of MTV 2, MTV, Comedy central, E!, FX, Adult Swim,
Discovery family, Spike TV, and Bravo. We do not recommend adding upper funnel media
at this time. We want to focus on adding mid-funnel media because it has a good
combination of reach and frequency. Stations considered mid-funnel are response drivers
and have a solid audience and efficient rates. The mid-funnel stations are MTV 2, MTV,
Comedy central, E!, FX, Adult Swim, Spike TV, and Bravo. We would shoot to have prime
local spots in these stations since prime is expensive and locals tend to be inexpensive.
For our mid-funnel media, we would buy a mix of locals and nationals. We also want to
add in our lower funnel stations, Discovery Family, MTV Live and VH1 classic. Adding in
the lower funnel channels will make our plan more diverse and reach an extended
audience. We would buy Adult Swim, Discovery Family and E! locals, because we could
buy more expensive dayparts to increase frequency. We would buy all other dayparts as
nationals and focus on locals where the local cover up is low. In our initial testing stages,
we want to hold off on adding any upper funnel media. After the initial testing, we would
slowly add in more upper funnel stations. We want to have as much of a mixed approach
as possible, then eventually find our core stations and dayparts that work best.
For the Digital display and search strategy, we recommend taking a mid-funnel approach
in order to capture a decent balance of reach and targeting. Quantcast, Rocketfuel, and
Taboola have all delivered successful campaigns for past and present clients. We
recommend running both banner and box advertisements for display. We also
recommend utilizing Facebook, because the target market uses the site daily and it is a
cost efficient way to reach a significant amount of people. For search, we recommend
utilizing the three major engines: Google, Yahoo, and Bing. Google typically drives the
most conversions, but Yahoo and Bing have the potential to drive a lower cost per
conversion.
Phase two:
This is an expansion of phase 1 that will take place in 2017 for Quarters 2, 3, and 4. We
hope to scale Spotify as a brand and have people convert from free users to premium
users.
We recommend more out-of-home opportunities for Spotify, like sponsorships and pop-
up events. In quarter three, we believe Spotify could benefit from a pop-up interaction
event in New York City. Spotify will be celebrating their eleven year anniversary on July
14, 2017. This could be a day to celebrate Spotify’s anniversary, but it could also be a way
14. 13
to interact with and celebrate its users. This past year, Spotify’s event at the SXSW
conference in Austin, TX featured a house with a mosaic wall of playlists that people could
interact with to play music. The event also had music trivia and audio booths where
attendees could collaborate and listen to different playlists. For quarter three, we would
like to expand upon the “Spotify House” idea for an event in New York City where people
on the street can come together, collaborate, and listen to music. The purpose of this
event is for Spotify to “share the moment” with its users and fans. We also want to
incorporate the music trivia game - if a player gets a certain amount right they could be
entered into a drawing to win a free, year-long premium membership. Audio booths could
be available for groups of friends to create and listen to playlists. To increase the level of
interaction, attendees could also be provided with chalk to create images or write about
the music they feel inspired by. Lastly, we hope to pair up with sponsors, like Starbucks,
in order to further scale the event. Starbucks could offer promotional drinks related to
the event and have booths where attendees purchase refreshments.
o Hosting a large event like this has the potential to build awareness and convert
new customers. Many people, especially the older consumers within the target
audience, are not aware of how Spotify works, so this event could educate
consumers on the all of the benefits and offerings of the service. This a way to
engage the audience and gain new members in a fun and creative way. We could
also use the event as a means of gathering future promotional material. Creating
commercials or other advertisements about the experience offered by Spotify
could encourage others to convert to the service.
There is also an opportunity to promote Spotify through ESPN College Football during
game breaks to encourage fan engagement. Fans could tweet at Spotify their favorite
song with the hashtag #Iwantatouchdown, which would instantly be added to the
“Touchdown Playlist”. During game breaks, Spotify could play a song that was recently
added. This will encourage fans to download Spotify so they can access the playlist they
helped create.
o The goal of this promotion is to build awareness, encourage users to interact with
the service, and drive conversions to the Premium service. People who attend a
college football game are likely tailgating beforehand, so the playlist could also be
listened to as attendees prepare for the game.
15. 14
Competitive Research
Using Kantar, we were able to analyze Spotify’s main competitors, which included: Apple Music,
Google Play Music, Pandora Radio, SoundCloud, Tidal, and Youtube Red.
Where others are spending on TV:
TV Mix (000)
12 months ending 5/16/16
Networks Apple Music
Pandora
Radio
Spotify
YouTube
Red
Grand
Total
% of
Total
FOX $12,717 $0 $0 $0 $12,717 22%
ABC $6,528 $696 $338 $0 $7,562 13%
CBS $1,940 $3,084 $0 $0 $5,024 9%
NBC $4,256 $0 $0 $66 $4,322 8%
TNT $2,608 $1,047 $0 $53 $3,708 7%
MTV $1,481 $1,331 $0 $0 $2,811 5%
WARNER BROS.
DOMESTIC TV
$2,036 $0 $0 $0 $2,036
4%
COM $749 $779 $0 $18 $1,545 3%
CW $1,428 $0 $0 $0 $1,428 3%
ESPN $539 $563 $0 $0 $1,102 2%
TBS $488 $607 $0 $0 $1,095 2%
BET $545 $544 $0 $0 $1,088 2%
VH-1 $214 $846 $0 $0 $1,060 2%
E! $0 $759 $0 $0 $759 1%
AMC $9 $711 $0 $3 $723 1%
MTV2 $123 $394 $0 $0 $516 1%
FRFM $149 $320 $0 $0 $469 1%
USA $132 $332 $0 $0 $464 1%
ESP2 $0 $396 $0 $0 $396 1%
ADSM $150 $194 $0 $0 $343 1%
All Others $2,270 $1,668 $3,580 $14 $7,532 13%
Grand Total $38,359 $14,269 $3,919 $154 $56,700
% of Total 68% 25% 7% 0%
16. 15
Where others are spending their Media Budget:
Media Mix (000)
12 months ending 5/16/16
Media Type
Apple
Music
Google
Play
Music
Pandora
Radio
SoundCloud Spotify Tidal
YouTube
Red
Grand
Total
% of
Total
Network TV $26,869 $2,707 $3,780 $338 $66 $33,759 34%
Spot TV $1,772 $174 $15 $3,580 $14 $5,555 6%
Cable TV $7,658 $629 $10,475 $74 $18,836 19%
Syndication $2,060 $2,060 2%
Magazines $5,379 $5,379 5%
National Spot
Radio
$6 $3 $8
0%
Local Radio $22 $5 $27 0%
Internet-
Display
$1,341 $1,787 $566 $21 $340 $900 $78 $5,033
5%
Internet-
Search
$4,062 $222 $20,815 $99 $25,199
25%
Outdoor $41 $779 $25 $185 $1,993 $3,024 3%
Grand Total $39,768 $11,455 $18,922 $243 $25,266$2,993 $232 $98,880
Media Type
Apple
Music
Google
Play
Music
Pandora
Radio
SoundCloud Spotify Tidal
YouTube
Red
Grand
Total
% of
Total
TV $38,359 $3,510 $14,269 $0 $3,919 $0 $154 $60,210 61%
Online $1,341 $1,787 $4,628 $243 $21,155$1,000 $78 $30,232 31%
Print $0 $5,379 $0 $0 $0 $0 $0 $5,379 5%
Radio $27 $0 $0 $0 $7 $0 $0 $35 0%
Outdoor $41 $779 $25 $185 $1,993 $0 $3,024 3%
Grand Total $39,768 $11,455 $18,922 $243 $25,266$2,993 $232 $98,880
% of Total 40% 12% 19% 0% 26% 3% 0%
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Reporting
Dashboard: Your secure, online portal to access campaign performance is updated daily by one
of our analysts. Widgets can be customized to report the results you want to see by product,
creative, medium, and offer. Date ranges can be specified to show daily, weekly, monthly,
quarterly, and yearly results. Reports can be downloaded in Excel or PDF format. Nielsen and MRI
feeds, as well as call center data, can be imported.
SignalLink: Detects spikes in immediate upper funnel consumer actions as they correspond to
media airings.
Lift Analysis: Internal week-over-week analysis of business trends from media investment to
revenue. Given proper data feeds, R2C Group will perform similar analysis for sharing learnings.
Success
Explanation of the media team’s approach to buying media and your creative optimization
process for TV:
Client goals are a very important part of R2C Group’s core values. Goals are managed by building
long term relationships and participating in a weekly dialogue. Through weekly meetings, results
per media station are calculated and reviewed, and can be altered to fit the client's needs. The
media team utilizes the pre-logs to as well as MRI, and Kantar to increase frequency for the client.
There is also a 50/50 creative rotation - the creative that generates the most leads for the client
is the one that R2C Group will utilize further. The media team is structured in a way to plan,
strategize, and optimize specific client goals. It is a hands-on process from the start to finish. The
team is managed to specific performance goals through the KPI’s and follow client requests to
increase or decrease frequency.
Existing examples of analytical reports you use to identify the right target audience and
optimize campaigns over time. Explain how you model initially and adjust media mix on as
close to a real-time basis as possible. If relevant, highlight how you manage multiple channels
and achieve a more focused and effective voice.
R2C Group utilizes MRI to determine the appropriate target audience. MRI data gives us insights
that allow us to better target audiences through online radio or TV. When pulling a report, we
are able to select audience demographics and certain categories. Kantar is a tool to show where
our competitors are placing media. This lets us determine what media mix we should use.
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The example above is pulled from a Zulily audience sizing report from MRI. The gray box is a
visual display of 238 million U.S adults. Inside the blue box this represents 166 million of the U.S
adults who online shop. Next, the three boxes represent three different demographics,
grandmothers, millennial moms, and moms. To the left we specifically state who is the core
target and our secondary target.
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The image listed above explains the television mix month by month for Zulily. The orange
represents cable TV, the blue represents syndication, the dark green represents network TV,
and light green represents spot TV. As October 2015 approached we saw a significant increase
in TV spend. Most of Zulily’s TV dollars were spent on cable and syndication.
This image represents Zulily’s competitors and where they are spending their television media
dollars. For instance Amazon spends an equal amount on TV and online. Whereas Zulilly is
spending close to 80% on online media compared to about 20% on TV. This chart lets Zulily see
that they should spend their media dollars in other media locations such as print and radio.
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Highlight media tools used in our process. Clearly express those that are complementary with
agency relationship versus those that require additional fees whether in the form of new third-
party services/relationships or additional agency service fees. Also state what expectations
Spotify should have from an implementation standpoint in providing the necessary access or
wiring to our databases or technology layers to provide media buying and optimization.
Providing accurate and frequent feedback from our creative work is important to our agency to
keep our clients up to date and aware of the performance. We provide these tools to our
clients as they need it no matter where they are in the process. During the measurement plan
stage in our preparation for launch, we work with our client to establish relevant KPIs, define
channel diagnostic measures, define baseline and projections, and develop a media plan. The
client dashboard is a complementary tool sent out every day. Dashboard displays relevant
information including current media spend, agency spend, direct MER, and total conversions
broken out in various ways. It is customized based on our client for reviewing campaign metrics.
This information will be reviewed on a weekly status call as well as used in a presentation at
campaign conclusion.
WaveCast is a proprietary media planning and buying tool which is relatively new. We currently
are not billing extra for this service. This tool reveals the impact of TV investment and buyer
driven optimization insights. These insights can include how consumers are responding to the
TV investment made, what the best performing channel tactics are, and the impact and
opportunity to scale.
In order to best analyze our successes, we may request access to data from our clients. The data
needed changes based on the type of analyses. Pre-campaign launch, metrics are needed for
baseline establishments which include previous media spend by channel. During the media
optimization stages of the campaign, daily data may be requested from client.
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Lastly, we do use third party tools as listed above in the research and digital analytics section.
There is no additional charge for the use of these third party tools. R2C Group strives to bring
accurate and complete results to our clients.