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Communication, Planning and Advertisement Assignment 2 Leonie Wünker

I- Identify a product/company in any market that engages in online advertising. This product must belong to a clearly defined category, and sales details for both the product and its categories should be available through their yearly sales reports or trusted websites. The company that you select could be selling items on a national or global scale, so it is important that you identify clearly your target market versus your benchmark before engaging in the calculations (California vs USA, USA vs world, Madrid vs. Spain…). For this assignment I’ve selected the museum MOCO Museum (https://mocomuseum.com/moco-museum-barcelona-en/). I find this a very interesting company, as they have a very agressive and in-your-face marketing campaign. The company just opened their second branch, in Barcelona, so I found it very interesting to see the differences between Barcelona and their museum in Amsterdam. 1- Find an advertisement for the selected product and identify the number of impressions it got, along with any useful analytics you could find (5 points). I was a little unsure how to go about this, as I can not make an ad for the company appear on my feed organically, therefore I couldn’t reach a specific ad for a product. Baja Bikes uses a lot of search enging marketing and are great optimizers, but I cannot figure out the number of impressions, as I am not the one who made the ad. As was discussed on the Q&A forum, I, therefore, took the Reels post of the company on

Instagram and compared their number of views. The company has 259.000 followers on Instagram at this time. They receive about 30.000 views on their reels. These are posts showing the museum, accessories of the gift shop, and one-time shows in their museum. You can see some reels below.

Image 1: Screenshot Reels on Instagram

Image 2: Collaboration with Netflix

As you can see in Image 2, one of the reels was in collaboration with Netflix. They got 721 likes on this post and 26.100 views. So on this ad, about 10% of their followers viewed the reel. 2- Identify your target market and benchmark and calculate the Brand

Development Index and Category Development Index of your chosen product and its category in the target market. To do so you need to: a. Find net sales of the product in its target market and the benchmark In 2019, the MOCO museum in Amsterdam had 638.000 visitors, and in 2020 245.000. This is of course influenced by the COVID-19 pandemic.

Figure 1: Most visited museums in the Netherlands in 2019 and 2020 (https://www.statista.com/statistics/616640/ten-most-popular-museums-in-the-netherlands/)

We divide the total amount over 12 months, to get the average. 638.000/12 = 53.167 average visitors monthly. We do this to compare this number to the visitors in the Barcelona branch. The Barcelona branch has been open now for 2 months and has had 35.000 visitors in the month of October (D&B Business Directory, 2021). b. Find the net sales of the category in the target market and the benchmark The number of net sales couldn’t be found, therefore the number of visitors is used. For Amsterdam, the above figure was used for 2019 as this is the most representative year. The visitor totals of the museums located in Amsterdam were added together to get this number. These are the Rijksmuseum, Van Gogh museum, Anne Frank House, Amsterdam Museum,

Stedelijk Museum, NEMO Science museum, and Moco Museum. These are: 2.678.000 + 2.135.000 + 1.305.000 + 689.000 + 670.000 + 665.000 + 638.000 = 8.780.000 visitors to the biggest museums in Amsterdam in 2019. Divided by 12: 731.667. For Barcelona, there are more museums than in Amsterdam. In Figure 2 there is an overview of visitors to the top museums in Barcelona. As seen in Figure 3, the total amount of visitors is 13.833.882. Shared by 12, this gives us: 1.152.824 visitors per month.

Figure 2: Visitantes de museos y colecctiones Barcelona ciutat page 1 (https://ajuntament.barcelona.cat/turisme/sites/default/files/iat19_1.pdf)

Figure 3: Visitantes de museos y colecctiones Barcelona ciutat page 2

c. Find the population in the target market and the benchmark For this number, the population the total number of tourists in Amsterdam have to be used to get a good view. A museum is visited by locals, but most of all by tourists (Najbrt and Kapounova, 2014). This number should therefore be used for the BDI and CDI.

Figure 2: Number of inbound tourists in the Netherlands (https://www.cbs.nl/nl-nl/nieuws/2020/10/aantal-toeristen-in-logiesaccommodaties-naar-46-miljoen-in-2019)

The number of tourists that visited Amsterdam was about 9.500.000 in 2019. This number divided by 12 gives us the average per month: 79.1667. This will be used as the population of our target market.

The number of tourists visiting the Barcelona region in 2019 is seen in Figure 3. This was 14.592.997 visitors in the year 2019. Divided by 12 gives us: 1.216.083. This will be used as the target market of our benchmark.

Figure 3: Demanda turistica (https://ajuntament.barcelona.cat/turisme/sites/default/files/iat19_1.pdf)

d. Calculate the BDI & CDI (22 points) BDI = Percent of brand sales in the area x 100 Percent of population in the area Amount of tourists in Amsterdam = 9.500.000 Amount of tourists in the Netherlands = 46.000.000 Percent of population in area = 20,65% Amount of tourists in Barcelona = 14.592.997 Amount of tourists in Cataluna = 83.700.000 Percent of population in area = 17,43% BDI for the target market = (60,30%/20,65%) x 100 = 292 BDI for benchmark market = (39,7%/17,43%) x 100 = 227 CDI = Percent of category sales in the area x 100 Percent of population in the area CDI for target market = (38,83%/20,65%) x 100 = 188 CDI for benchmark market = (61,17%/17,43%) x 100 =350 e. Analyze the performance of the brand (7 points) When looking at the BDI’s calculated, you see that all numbers are above 100. It’s a high BDI, there is good potential. The same for Barcelona. The market in Amsterdam is at this moment slightly more interesting than in Barcelona. f. Analyze the performance of the category (7 points)

When looking at the CDI’s calculated, you see that all numbers are above 100, and very high. There is a big market potential for this product. In Barcelona, this market is much higher than in Amsterdam. g. Provide them with advice related to their advertising investments (10 points). In Barcelona, there is a huge opportunity for Moco Museum to reach more sales. The museum has a high market share and good market potential in both the target market and the benchmark market. The museum is doing a great job and should continue to advertise the way the company is doing. They should keep advertising in a surprising way, and change the exhibitions a lot, to get the customers to come back many times to see the ‘new product’ they are offering at that time. They could use to new exhibitions to get a lot of repeat clients. Every time the tourists are in Barcelona or Amsterdam, they have to visit the new exhibition at Moco Museum.

II This question is about Cost Per Thousand measurements

1- Explain the different types of (CPM) in detail. (6 points) The CPM number shows the cost of reaching 1000 of the target audience either with an individual media vehicle or the complete media schedule. There are 3 different types of CPM. They are eCPM and vCPM. The eCPM is the cost per thousand. It considers the cost for advertisers for serving 1000 ad impressions. It’s the amount of advertising revenue earnings in comparison to the total impressions the ad received (https://vungle.com/blog/what-is-ecpm-how-to-calculateeffective-cost-per-mille/). vCPM is the cost-per-thousand viewable impressions. It shows more precise numbers of the number of views a video for example got and how much you paid per 1000 clicks. This could for example be a banner that has to be viewed for a minimum of 2 seconds to be a ‘view’. (https://adwolves.nl/kennisbank/wat-is-vcpm/) 2- What are the benefits of CPM? (8 points) The benefits are brand building, target audience identification, strategic reinvestment, and overall better performance. The company can very clearly see where their money goes, and how the ads perform. They precisely see how their ad performed and they can use this to create better ads for the future and allocate their money even more efficiently. The managing of the marketing budgets gets a lot more clear (Zhu, H. et al., 2019). 3- When is CPM most useful? (5 points) CPM is mostly used to compare the cost of various media vehicles. It’s very useful when you don’t know as a planner what vehicle to use and to compare the budget needed. (Arens, 2018).

III- You decided to open a new consultancy firm for SMEs, dedicated to providing them with advertising strategies for improving their sales. You are operating in a small country with a total population of 5 million citizens. Your first challenge was locating

experienced media buyers who have experience in both new and old media.

1- Explain which online advertising tool will you select to support you in your quest? (5 points) To find new experienced media buyers, LinkedIn would be used. The correct people could be targeted directly, experience in new and old media can be taken into account, and the ad money would be best spent. The Cost per Click would be higher, but the clicks would most likely be effective (Arends, 2018). 2- How much will you invest and in which bidding option, if you are interested in employing one media buyer? (5 points): As we are a new consulting firm, starting up, and having a target market of 5 million citizens, the investment should not be to large and not to small. I would choose CPO as my bid. This way I pay when the sponsored email I sent is opened, and I am sure the person I would like to reach, has seen my message. With 5 million people living in the country and we are looking specifically for media buyers with old and new media experience, we would set the investment at $5.100, to reach $5.100/1.70 = 3.000 people in our target field.

Image 3: Advertising on LinkedIn, (Merhi, 2021).

You were successful in locating the required media buyer, and you just received your first major customer. ABC is one of the biggest garages in your country that fix everything in the automotive industry: from cars, bikes, bicycles, and tractors… they realized that they are witnessing a major decrease in sales, specifically with the new generation of automobile users who make 10% of the total population. You decided to create an online campaign in order to improve their sales and regain their market share amongst this specific category. You realized that their main competitors have bought every keyword on the SEO that is related to fixing cars in your country. You are looking for an alternative way to target these consumers who are browsing the internet in order to get answers to questions like what is wrong with my vehicle? and how can I fix it? You own % 40 of the market share, and you realized that the industry as a whole is spending $100,000 in total in advertising.

3- Explain how much advertising dollars would you allocate for such a campaign? (6 points) The new generation of automotive users is 10% of 5 million, so 500.000 people. These are the people we are trying to target with this campaign. The industry as a whole is spending $100.000 and you own 40%, so logically, the company should be spending $40.000 in advertising. As we want to reach 500.000 people, when we use CPV on Youtube, this would cost us at most $0.30 x 500.000 = $150.000. This is the amount of advertising dollars we would allocate. 4- Explain which advertising tool will you use? (7 points) As we want to reach the ‘new generation’ of automotive users, we will become active on social media. We will be starting a vlog on Youtube and sharing tips and tricks on how to clean your car, bike, tractor, etc. We will show the way we work and make people familiar with ABC. When you google questions regarding your car, bike, etc. the first hits are Youtube videos. If we make clear, useful videos, we will generate a lot of views and the advertising campaign will be very successful. 5- Explain which bidding option will you choose? (7 points) We will be using CPV. This way we pay when someone views the video ad for 30 seconds or until the end. When using CPV we will get meaningful audience interest and this promises us as advertisers a good return on our advertisement spending.

References: Aantal toeristen in Logiesaccommodaties naar 46 miljoen in 2019. Retrieved from: https://www.cbs.nl/nl-nl/nieuws/2020/10/aantal-toeristen-in-logiesaccommodaties-naar-46-

miljoen-in-2019 on 22nd of November, 15:46. D&B Business Directory (2021). Dun & Bradstreet. Moco Museum Barcelona S.L. retrieved https://www.dnb.com/business-directory/companyfrom: profiles.moco_museum_barcelona_sl.503949d0a2de847fbf29ea849cd7dbec.html at 22nd of November, 20:15. Informe de l’activitat turistica Barcelona (2019). https://ajuntament.barcelona.cat/turisme/sites/default/files/iat19_1.pdf

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from:

M.F. Arens, W.F. Weigold (2018). Advertising. 3rd edition. Most visited museums in the Netherlands in 2019 and 2020. Retrieved from: https://www.statista.com/statistics/616640/ten-most-popular-museums-in-the-netherlands/ on 21st of November, 10:15. Najbrt, L. and Kapounova, J. (2014). Categorization of Museum Visitors as Part of System for Personalized Museum Tour. Internation Journal of Information and Communication Technologies in Education. 3(1). Number of overnight tourists up to 46 million in 2019. Retrieved from: https://www.cbs.nl/en-gb/news/2020/10/number-of-overnight-tourists-up-to-46-million-in2019, on 22nd of November, 14:23. Ten most popular museums in the Netherlands. Retrieved from: https://www.statista.com/statistics/616640/ten-most-popular-museums-in-the-netherlands/ on 21st of November, 11:00. Travel and tourism in Spain. Retrieved from: https://www.statista.com/topics/3867/travel-and-tourism-in-spain/, on November 22nd, 16:34. Wat is vCMP? Retrieved from: https://adwolves.nl/kennisbank/wat-is-vcpm/, on November 22nd, 17:23. What are the benefits of a CPM Pricing Model? Retrieved from: https://trafficroots.com/benefits-cpm-vs-cpc-ad-pricing-models/ on November 22nd, 17:31. What is eCPM? How to calculate Effective Cost Per Mille. Retrieved from: https://vungle.com/blog/what-is-ecpm-how-to-calculate-effective-cost-per-mille/, on November 22nd, 17:15. Zhu, H., Jin, J., Tan, C., Pan, F., Zeng, Y., Li, H. and Gai, K. (2019). Optimized Cost per Click in Taobao Disply Advertising....