Adv mktg comm media plan

ozretailer Early July Stock Take Sale 2014

MEDIA PLAN

25370197 Hongsheng Zhang

22630473 Caitlin O’Dwyer

22690808 Tanya Tjahjosarwono

22649387 Grace Kingsford

24878693 Gabriela Goldfarb

Table of Contents

01

Executive Summary

02

Media Objective

02

Media Mix

04

Budget Allocation

08

Media Plan

09

Advertisement vs. Vehicle Exposure

10

Advertisement Content

12

Reference

14

Appendices

Executive Summary

This report was commissioned to provide an analysis of the media plan for OzRetailer with a target audience of women between the age of 25 to 54 years old in Melbourne Area with reach chosen as the measure of advertising effectiveness. The objective of this media plan is to provide to reach 90% of women aged 25 to 54 at least three times over the one week campaign period.

With the allocated budget of two million dollars, the cost was effectively distributed among the most used media vehicle, which include catalogue, TV, newspapers, magazine, internet and radio. It is believed that the combination of these vehicles leads to an exposure distribution with 100% coverage to all targeted audience, and at least 90.5% audience exposed 11+ times in that one week period, which certainly goes beyond the stated three times exposure objective.

Based on SPSS and Excel Spreadsheet data OzRetailer’s has been able to effectively plan media vehicle exposure and insertions in order to achieve an optimal spend of the allocated budget in the process of achieving the media objective.

The result of this media plan highlights a total spend of $1,358,526 from the two million dollar OzRetailer budget, this indicates an underspend of approximately $640,000 from the allocated budget.

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Media Objective For the purpose of OzRetailer’s upcoming stock-take advertising campaign, the following objective will guide the Media Plan: To reach 90% of women aged 25 to 54 at least three times over the one week campaign period.

Reach was chosen as the measure of advertising effectiveness, as it is believed that for the purpose of a short-term promotional campaign, this will enable a greater percentage of the one million target audience of women aged between 25 to 54 the opportunity to see (OTS) the advertising message. It is therefore necessary to saturate the market through a variety of media vehicles and various insertions in order to the reach the targeted 90% of the population at least three times.

Furthermore, due to the increasing behaviour of advertising avoidance among of media consumers, including the target audience, it is therefore necessary to ensure that the advertising message is actually seen by the audience. For this reason, the media plan will aim to provide the target audience with the OTS the advertisement message around 10 times, in order to achieve the desired effective reach of 90% at least three times. The continuity of this campaign will consist of a Short-Fad pattern.

Media Mix Catalogue Catalogues have a large capacity for information, opposed to other media such as television commercials and print ads, in which there are time and content restraints.

Catalogues contain lots of product information, which can target a larger audience and ultimately lead to achieving the objective. Additionally, catalogues are sought by the target audience as they are generally picked up by individuals interested in their content, minimsing the possibility readership from non-targeted individuals.

The tangible nature of catalogues means that there is the potential for repeat exposures as individuals can carry it with them, increasing frequency of exposures and more OTS leading to increased reach. Furthermore, readership may increase as catalogues can be passed on to friends, family and co-workers.

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Internet The current socio-environmental shift of retail into online shopping means that the target audience are now spending time online, thus making this media vehicle suitable for assisting in achieving the objective of 90% reach within the target audience. A major benefit of this vehicle is it’s ability to a create a two-way flow of information between the consumer and seller, this means firms can not only interact with their audiences, but are also able retrieve valuable information on demographics and buyer behavior.

Furthermore, there is a huge amount of information available to consumers online. In fact, the internet is an endless source of information. If an advertisement interests a person, they are one click away from information regarding that message. This is beneficial compared to other media vehicles, which can have limited capacity for information.

Furthermore, this information is available to them 24/7, which means firms can reach a large audience within a short-time frame, which is suitable for the time constraint of a one week campaign. An additional benefit of this vehicle is the potential for re-targeting (i.e. when an ad is clicked, similar ads pop up on future sites for that individual), which can increase the frequency of OTS. Finally, the internet is a relatively inexpensive media vehicle, which potentially could be utilised in this campaign considering budget constraints and reaching the objective.

TV Television is a suitable media vehicle to achieve the objective due to its ability to effectively reach a large proportion of the target audience within the selected timeframe. This is supported in recent years by a number of retailers use of Free-To-Air TV programs to place advertisements for upcoming Stock Take sales using “screamers” in Blitz and Short-Fad patterns. For example, Myer have been known to use this media vehicle for spring stock-take sales in order to drive sales. It is therefore believed that due to other retailers success with this media vehicle, that OzRetailer could also capitalise on this vehicle’s ability to achieve a broad reach and the objective. Additionally, it is believed that due to the very visual nature of the products being sold in the stock-take sale, this vehicle will successfully highlight the product attributes and benefits to the target market.

Radio Although radio is not a particularly visual media vehicle, it has the potential to assist in achieving the reach objective of this campaign. With a wide variety of different channels evident across Melbourne radio, this vehicle gives the ability to reach a high number of the target audience through their different preference of music. This media vehicle could therefore be used a reminder to the target audience across a range of different radio station throughout Melbourne. It is also believed that this vehicle would be helpful in creating a call to action for potential customers to visit the OzRetailer website, and act as a prompt for the upcoming sale.

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Magazine This media vehicle would be suitable for achieving the objective of this campaign due to its highly targeted nature. This is supported by the range magazine options available to consumers throughout supermarkets, news agencies and retailers across Melbourne. This gives OzRetailer the ability to analyse the consumers of these magazines, match these demographics with the target audience, and choose insertions based on this information.

However hesitation surrounds use of this vehicle due to its slow readership, and potentially long shelf life making the advertisement out-of-date. This for example, can be seen with magazines sitting in waiting areas for long periods of time with outdated content.

However, this problem could be managed by placing insertions in weekly magazines.

Additionally, due to magazines being associated with a high pass along, it is believed that advertisements placed in this media will achieve the objective of high reach for a reasonable amount of the budget.

Social Media Social media is very prominent in today’s society, having the potentially to reach huge global audiences. However, due to the less visual nature of this vehicle, limited space and move towards the use of social media on hand held devices, it is therefore concluded that this media vehicle will be less effective in achieving our objective than other media previously stated.

Google Search This vehicle will be ineffective for achieving this objective as it is not as highly targeted as other media vehicles. Furthermore, Google search has the ability to reach a far boarder market, which is not relevant to this highly targeted and short campaign.

Budget Allocation Catalogue This vehicle has been selected after analysis of Q115 highlighting that the categories of Cosmetics and Fragrances, Women’s Clothes, Children’s Clothing, Intimate Apparel, Fashion Accessories, Footwear and Homewares, indicated catalogue as their main source for finding information and advice regarding their category (Refer to Appendix 1). This will therefore be effective in assisting to achieve the objective as the catalogue distribution will reach 79.3% of the target audience of women aged between 25 and 54, and expose them to the advertising message of a stock-take sale (Refer to Table 1).

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The allocation of the budget, $400,000, is therefore optimally spent here due the extremely high reach presented as a result of expenditure. With less than a quarter of the budget, catalogue is effectively about to reach 79.3% one time as highlighted in the above table. This is a very convincing number considering the reach, frequency and budget of other media vehicles and insertions.

Table 1: Catalogue Readership Among Target Audience

TV Based on the information presented in the excel spreadsheet, it is evident that TV provides the most effective way of achieving the highest level of exposure distribution. We reached this conclusion, through an analysis of the SPSS highlighting a range of shows that should be targeted with insertions.

Furthermore, using this data allowed for other insertions to be incorporated in order to reach a larger audience by creating reduced levels of duplication. So although shows such as World’s Strictest Parents may have higher viewing as indicated in the SPSS than the Thursday Night Movie, this the Thursday Night Move was selected due to its ability to increase the overall exposure distribution, and contribute to more effectively achieving the reach objective than other programs with higher viewership. This was discovered through testing the spreadsheet with a range of different insertions.

Furthermore, SPSS data for question 96 highlights that Nine, Seven and Ten News have the highest audience viewing ratings (Refer to Appendix 2). Additionally, insertions into all other news program have been applied to our budget as they assisted in increasing the exposure distribution for a reasonable expenditure. Question 97 demonstrates that Deal or not Deal, Hot Seat and The Amazing Race have the highest audience ratings in comparison to competing shows, and are therefore effectively indicate that our budget allocation can be optimal spent here in order to achieve increased reach within the target audience (Refer to Appendix 3). Following that, question 98 highlights Junior Masterchef, The Ellen Degenneres, and Oprah Winfrey Show to have the highest viewership among the audience, we have therefore distributed our budget in accordance with this data to achieve an optimal spend in reaching this audience (Refer to Appendix 4).

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Question 99 has highlighted The 60 minutes, The Postcards and Four weddings as the most frequently viewed show at least once within the target audience, supporting placement of the insertions for this vehicle (Refer to Appendix 5). Furthermore, question 100 the shows Two and a Half Man, Top Gear and How I Met Your Mother to be the most prominent (Refer to Appendix 6). And finally, question 101 with NCIS, Law & Order S.V.U, and Rush (Refer to Appendix 7). The total optimal spends for this vehicle is therefore $827,297.

Newspaper Question 71 indicates that Herald Sun the highest readership among the category (Refer to Appendix 8), followed by the Melbourne Age, with MX having the lowest readership.

Furthermore the data highlights that particular days of the week have higher viewership, than others. This is supported by the Melbourne Age and Herald Sun having the higher readership on Saturdays, rather weekdays (Refer to Appendix 9).

According to the data, Herald Sun and Melbourne Age are the best choice based on viewership. Optimal allocation of the budget is therefore highlighted by placing insertions in the Herald Sun and Melbourne Age every day of the campaign period in order to maximize reach. This media vehicle therefore accounts for $64,800 of the two million dollar budget.

Radio From survey question 57, the data suggests the Fox 101.9 FM has the highest amount of listeners from the target audience, followed by Nova 100.3 FM, and Mix 101.1 FM (Refer to Appendix 10). The data indicates that listeners from these three stations, very frequently tune in on the same day, or multiple times a week. With 57.6% of the audiences listening to the Fox (101.9 FM) more than 5 days a week, 41.3% and 48% of the audience listening to the Mix and Nova more than 5 days a week.

The optimal allocation of our budget is therefore to have 10 insertions for the Fox and Nova, in order to capitalise on listener loyalty and increase our exposure distribution.

Furthermore, this budget has been optimally as the excel sheet has suggested by increasing our reach and frequency with a relative low cost to the budget, $50,614.

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Magazines Based information present in question 108, it is demonstrated that over 90% of the target audience have read one of the listed magazines once in the past 4 weeks (Refer to Appendix 8). This numbers suggest that readership levels between the different magazines is minimal. However Woman’s Day, and Australia Woman’s Weekly are the most popular magazine both having 97.2% of the target audience read their magazine at least once in the past four weeks. This is closely followed by New Idea and Who magazine come after with 96.8% and 96.1%.

Based on the data, insertions will be placed in Woman’s Day, Australia Woman’s Weekly, New Idea, and Who in order to achieve an optimal budget whilst achieving the objective.

This will effectively assist in increasing reach as all four magazines will be published at the same time during our campaign period. The total optimal spends for this vehicle is $12,577.

Online Questions 108 results present theage.com.au as the most visited site among the target audience, this is followed by heraldsun.com.au and NineMSN (Refer to Appendix 12).

Because this, the campaign will place insertions in these media vehicles in order to effectively achieve the objective with an optimal budget. The optimal budget was achieved with 92 insertions on theage.com.au, and 68 insertions on heraldsun.com.

Furthermore, with its low efficiency and low viewership, only 11 insertions are placed in NineMSN. These numbers were effectively created through testing the result of expenditure on the excel spreadsheet and measuring the impact on reach and frequency.

The total optimal spend for this vehicle is $3,238

Google Search The Google Search behavior of the target audience discovered that only 21.8% of the audience are searching for OzRetailer (Refer to Appendix 13), furthermore only 2.9% of them are searching it more than four times in the past four weeks. These figures indicate a relatively low reach and frequency, although the cost is relatively low, having tested spending in this vehicle, it has been decided that this vehicle will not be suitable, and therefore not used in this campaign.

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Social Media The data demonstrates that only 1.9% of target audience access OzRetailer’s Facebook page, and only 0.7% have accessed OzRetailer’s tweeter site in the past four weeks (refer to Appendix 14). This low number can be caused by lack of regular maintenance and updates, so without regular viewers placing insertions here would be wasteful spending, because of this it has been decided that social media is not a suitable vehicle for this campaign.

Media Plan Media Expenditure The media expenditure distribution is relative to both research and literature on the different vehicles, SPSS data and the results from the media planning calculator. See Appendix 15 for a full summary of media expenditure across vehicles and insertions. The highest expenditure of the budget is in television (60.97% of total budget). It was not unexpected that TV would have the highest expenditure. Insertions in popular TV shows (such as nightly news, Two and a Half Men and 60 minutes) were considered vital as the reach objective justified their use. Furthermore, insertions in many different shows assisted in increasing reach. The second most costly vehicle is catalogue (29.50%). Subsequently newspaper (4.70%), Radio (3.70%), Magazines (0.90%) and internet (0.23%) were much less expensive. See Appendix 16 for an overview of the media expenditure by vehicle. With a target audience of one million, and an expenditure of $1,358,526, there is a Cost Per Thousand (CPM) of $1,358.53. Spending was limited to this amount as GRPs and frequency were approaching a plateau (Refer to Appendix 17 and 18), meaning that more insertions would have limited influence.

Media Schedule From the expenditure pattern (Refer to Appendix 19), we can see the highest spending is on the launch day of the campaign, this is to maximize the reach in the early stages of the campaign. During the week, the plan is to carry over the effect of the first day of insertions and explore different media vehicles to reach a broader range of target audience. Keeping in mind that that Friday shows incur a higher cost due to the increased viewership. On the last two days of the campaign, radio will be used in order to increase the awareness immediately before the stock-take sale begins.

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Conclusion The objective of 90% target audience reach, with at least three OTS has been achieved.

Analysis of the SPSS data lead to the use and disuse of certain media vehicles, however, the media calculator was the ultimate determinant of media communications placement and spending.

It is an exceptional advantage that the target was reached considerably under the budget of $2 million. The decision to discontinue spending resulted from the inability to create substantial increases in average frequency and GRPs with more insertions. The target audience will see the media message about the stock-take sale and average of 10.65 times (average frequency) and 90.5% of the target audience will see the message eleven or more times. Such high frequencies and OTS will influence brand recall and increase the “likelihood that the brand will be in the consumers’ consideration set” (Schiffman et al.

2008). Furthermore, it was necessary to maximize frequency because of communications inhibiting factors such as ad avoidance and miscommunications. This media campaign will be economically and effectively communicate the message to the target audience, resulting in achievement of the objective.

Advertisement vs. Vehicle Exposure Based on intuition and experience, it was predicted that television would be the most suitable media vehicle for grabbing the attention of, and effectively distributing communication to the large target audience. Television is a powerful medium for mass communication, which would support the reach strategy and Short-Fad pattern of this campaign. Furthermore, there are many techniques that can be used in television commercials that are effective in grabbing an audience’s attention. For example humour or “screamers” are methods for enticing people to engage in an advertisement, and emotional branding tactics can be very effective in persuading a target audience. The ability to include lots of visual and audio information means that lots of information can be communicated efficiently. Additionally, television is a media that has the possibility of repetition. According to Schiffman et al. (2008), “repetition or frequency of an ad, affects persuasion, ad recall, brand name recall and brand preferences”. With the campaigns time frame, there is minimal opportunity for repetition to cause wear out.

A heavily noted limitation associated with this media vehicle is high costs. In order to achieve desired reach and frequency there must be multiple OTS and costs can increase very quickly as more insertions are added to the media mix. With budget constraints, this factor was thoroughly considered in media vehicle selection process. Another limitation has come with the ability to stop, pause, rewind and record live television. Greater “zipping”, “zapping” and other means of ad avoidance have reduced ad viewership.

However, TV is still widely considered “the media king” and it was predicted that this media vehicle would be the most effective and efficient means of grabbing the target audience’s attention and achieving the objective of reach.

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Advertisement Content The aim of OzRetailer’s advertising message is to take an informational approach, by conveying a sense of urgency, and appealing to the target audiences desire to receive top of the line products at a heavily discounted price for a limited time only. This can be achieved through an advertising message highlighting the sale to be an exclusive event that customers are ‘invited’ personally to attend. The proposed message carried across the media vehicles will be an ‘exclusive red carpet sale event’.

Catalogue As the SPSS data suggests the majority of our target audience uses this media vehicle to seek information regarding the products they are want to purchase. For this reason all products featured in OzRetailers’ upcoming sale will feature in the catalogue advertising content. This includes: women’s clothing, fashion accessories, homewares, cosmetics and fragrances, footwear, intimate apparel and children’s clothing. The message displayed in this form of media vehicle will highlight a range of products in a very visual manner, coupled with an exclusive invitation to attend the sale. Furthermore, the ad content will emphasis the drastically reduced prices, and the limited nature of the sale.

TV Creating advertising content for this media vehicle will relate to which program the ad features in relation to. This will therefore determine what products will be visually demonstrated to the target audience. So for example for the Thursday Night Family movie insertion this ad will relate directly to homewares and children products as it is believe this program will be viewed by not only the target audience but also their family members which will assist in eliciting a need for the related product, whereas in programs such as The Ellen Show where it is believe the target audience will be watching alone this will be targeted to their specific needs, for example women’s clothing and intimate apparel.

The content again for this vehicle will be centred about inviting the audience to the attend this exclusive event. The visual nature of the media vehicle will allow for the creative to feature content of champagne, red carpet, where the woman will feel like she being treated like royalty, rather than the traditionally association of a stocktake sale which is general chaos, crowds and limited stock availability.

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Internet Internet banner will be used as a click-through to a landing page where customers will be able to explore a range of products, prices and information.

Magazine Spreads across the different magazines in Melbourne will feature a range of best-selling products, with key product information and benefits. As magazines are a visual source of information this will allow OzRetailers to provide some detailed information about products that are on sale. The ad content for this will again be featured around the idea of attending an exclusive high class sale, rather the traditional red sticker stock sale.

Radio As radio is intended to be used as reminder to the target audience on the final days of the campaign period. This ad will serve as a reminder across the radio network the day before and the day of the sale in order draw last minute customers in. This ad will be centred around the idea escaping the stress of traffic and school pick ups, and attend the stocktake sales of the year. Although this is not a very visual media vehicle it will draw on customers to act immediately and attend the sale.

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References Bakir, A. (2012). A cross-national analysis of advertisement content. Journal Of International Consumer Marketing, 24(3), 186-202.

Schiffman, L., Bednall, D., O’Cass, A., Paladino, A., Ward, S., & Kanuk, L. (2008). Counsumer Behaviour (4th ed.). Sydney: Pearson Education.

Rossiter, J. R., Danaher, P. J. (1998). Advanced Media Planning. Massachusetts: Kluwer Academic Publishers.

Zhang, P., Ma, J., & Sun, X. (2008). Intelligent delivery of interactive advertisement content. Bell Labs Technical Journal, 13(3), 143-158.

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Appendices Appendix 1 – Main source for shopping information by category and media vehicle (question 115)

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Appendix 2 – Number of target audience members who view News programs at least once over a typical week (question 96)

Appendix 3 – Number of target audience members who view TV programs at least once over a typical week (question 97)

15

Appendix 4 - Number of target audience members who view TV programs at least once over a typical week (question 98)

Appendix 5 – Number of target audience members who view TV programs at least once over a typical month (question 99)

16

Appendix 6 – Number of target audience members who view TV programs at least once over a typical month (question 100)

Appendix 7 - Number of target audience members who view TV programs at least once over a typical month (question 101)

17

Appendix 8 – Newspaper readership among target audience

Appendix 9 - Newspaper readership by day of the week

18

Appendix 10 - Radio Numbers of data listening from the target audience

Appendix 11 - Magazine readership at least once in the past month

19

Appendix 12 – Website visiting of the target audience at least once in the past month

Appendix 14– Target audience social media behaviour in the last 4 weeks

Appendix 13 – Google search for OzRetailers in the past 4 weeks

Yes 22% No 78%

20

Fracebook

Yes 19 No 981

Twitter

Yes 7 No 993

Appendix 15 – Media Expenditure Table Media Vehicle

No. of Insertion

Cost per media vehicle

Catalogue

1

400,000

Total

400,000

Catalogue

TV Nine News

3

90,000

Seven News

3

66,898

Ten News

2

40,033

Sunrise

2

24,604

The Morning Show

1

4,580

Today

1

15,367

A Current Affair

1

18,939

Entertainment Tonigh t

1

5,408

Today Tonight

1

15,068

Deal or no Deal

2

25,054

Hot Seat

1

7,860

The Amazing Race

1

6,662

The Ellen Degeneres Show

2

23,247

The Oprah Winfrey Show

2

12,608

Junior Master Chef

2

27,464

60 Minutes

2

44,765

Postcard

1

17,984

Four Wedding

1

13,139

Undercover Boss

2

35,234

Thursday Night Family Movie

1

5,536

Beauty and The Geek

2

5,359

The Big Bang

2

34,466 Continued on Next Page...

Media Vehicle

No. of Insertion

Cost per media vehicle

Top Gear

3

70,557

Two and a Half Man

3

118,771

How I Met Your Mother

3

64,151

NCIS

2

33,544

Total

827,297

Newspaper Melbourne Age

6

31,500

Herald Sun

6

33,300

Total

64,800

Radio Fox (101.9 FM)

10

22,000

Nova (100.3 FM

10

28,614

Total

50,614

Magazine Woman’ s Day

1

3,039

New Idea

1

3,352

Who

1

3,138

Australian Woman ’ s Weekly

1

3,048

Total

12,577

Website Theage.com.au

92

1,971

NineMSN

11

120

Herald Sun.com.au

68

1147

Total

3238

Total Budget

1,358,526

Appendix 16– Overview of Media Expenditure

Appendix 17– Frequency relating to Media Schedule

Appendix 18 – GRPs relating to Media Schedule

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Appendix 19 (1) – Media Schedule Schedule

Mon

Tue

Wed

Thu

Fri

Sat

Sun

Catalogue Catalogue

1

TV Nine News

1

Seven News

1 1

Ten News

1

1

Sunrise

1

1

The Morning Show

1

Today

1

A Current Affair

1

Entertainment Tonigh t

1

Today Tonight

1

1 1

Deal or no Deal

1

Hot Seat

1 1

The Amazing Race The Ellen Degeneres Show

1

1 1

1

The Oprah Winfrey

1

1

Show Junior Master Chef

1

60 Minutes

2

Postcard

1

Four Wedding Undercover Boss

24

1

1 2

Thursday Night Family Movie

1

Beauty and The Geek

2

Schedule

Mon

The Big Bang Top Gear

Tue

Wed

Thu

Sat

Sun

2 3

Two and a Half Man How I Met Your Mother

Fri

3 3

NCIS

2

Newspaper Melbourne Age

1

1

1

1

1

1

Herald Sun

1

1

1

1

1

1

Radio Fox (101.9 FM)

5

5

Nova (100.3 FM)

5

5

20

22

5

6

10

10

60,559

88,761

Magazine Woman’ s Day

1

New Idea

1

Who

1

Australian Woman ’ s

1

Weekly

Website Theage.com.au

10

10

10

10

10

NineMSN

Heraldsun.com.au Daily Budget Spending

10

10

10

8

10

726,706 158,273 47,187 83,268 193,772

Cumulative GRP

730.2

834.9

900.9

933

972.5

1051.2

1064.5

Cumulative Average

7.32

8.37

9.01

9.33

9.73

10.51

10.65

Frequency

25

Appendix 19 (2) – Media Schedule (Daily Expenditure Pattern)

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