Media terminology

Media Terminology Basics

Contents

Target Audience & Universe

TV– Ratings

– GRPs

– Coverage (Reach)

– Average Frequency

– Cost per GRP

– CPT

– Frequency Distribution

– Effective Reach

Quick Quiz How TV Ratings are

Measured Print Media

– Key terminology

Advantages & disadvantages by media

Introductory Terms

Introductory Terms TARGET AUDIENCE Definition : The demographic group that has been identified as

the key consumer group for the brand. All

marketing/advertising activity is concentrated on

reaching/appealing to this group.

reaching/appealing to this group. In Practice : The Nice n’Easy target audience is 16-60 year old

Women.

The Mama Sustagen target audience is Women aged

18-40 yrs.

reaching/appealing to this group. In Practice : The Nice n’Easy target audience is 16-60 year old

Women.

18-40 yrs. UNIVERSE Definition : The actual number of individuals within the

defined target audience.

reaching/appealing to this group. In Practice : The Nice n’Easy target audience is 16-60 year old Women.

18-40 yrs. UNIVERSE Definition : The actual number of individuals within the

defined target audience. In Practice : The 16-60 yr Women universe is 5,000,000.

(Market X) The 18-40 yrs universe is 2,750,000.

Television

A Rating

Definition : The percentage of the target audience who saw

the programme/commercial

1 rating point = 1% of the target audience.

Formula : Audience Achieved ÷ Defined Universe (x 100) = Rating

A Rating

In Practice : 18-40 yrs Women watching Friends - 1,110,000

18-40 yrs Universe - 2,750,000

Rating - 40%

A Rating

18-40 yrs Universe - 2,750,000

Rating - 40%

Question: If 900,000 Housewives saw our commercial during

“Dynasty” and the universe for Housewives is 3.6m, what

rating did we achieve?

A Rating

18-40 yrs Universe - 2,750,000

Rating - 40%

Question: If 900,000 Housewives saw our commercial during

“Dynasty” and the universe for Housewives is 3.6m, what

A Rating

Gross Rating Points (GRP’s)

Definition : The sum of all ratings achieved in a campaign. (Note : GRP levels are generally measured andreported on a 4 week basis.)

In Practice : Our commercial appeared in the followingprogrammes :Programme RatingFriends 32%Dynasty 21%Movie 18%Sport 24%News 15%

110%- 110 GRPs achieved (or 110% of defined universe)

Gross Rating Points (GRP’s)Definition : The sum of all ratings achieved in a campaign.

(Note : GRP levels are generally measured andreported on a 4 week basis.)

Question:How many GRP’s would be achieved by a campaign with two spots in a movie (achieving 21% rating on one occasion

& 25% rating on the other), a spot in Dynasty(achieving a 18% rating) & a spot in the News (achieving 16% rating)?

Question:How many GRP’s would be achieved by a campaign with two spots in a movie (achieving 21% rating on one occasion

& 25% rating on the other), a spot in Dynasty(achieving a 18% rating) & a spot in the News (achieving 16% rating)?

Coverage (Reach)

the commercial at least once during a given campaign period.

Coverage (Reach)

In Practice : ProgrammeFriendsDynastyMovieSportNews

Rating3221182415

110 GRPs

Unduplicated Reach3211974

Cumulative Reach3243525963

63% Reach

Coverage (Reach)

Rating3221182415

110 GRPs

63% Reach

Question:If we did not have the News on the above schedule, how many GRPs and what Reach would this campaign achieve?

Coverage (Reach)

Rating3221182415

110 GRPs

63% Reach

Question:If we did not have the News on the above schedule, how many GRPs and what Reach would this campaign achieve?

Coverage (Reach)

GRPs -95Reach -59%

Average Frequency

Definition : The number of times, on average, the audiencereached sees the commercial during a given period.

Formula : Average Frequency = Total GRPs ÷ Reach orGRPs = Reach x Average Frequency

Average Frequency

In Practice : 110 GRPs ÷ 63% Reach = 1.75 Average FrequencyTherefore, 63% of the target audience will seethe commercial on average 1.75 times during thegiven period.

Average Frequency

Question:350 GRPs and 7.0 Av Frequency = ? % Reach 80% Reach and 5.0 Av Frequency = ? GRPs

400 GRPs and 80% Reach = ? Av Frequency 300 GRPs and 55% Reach = ? Av Frequency 350 GRPs and 60% Reach = ? Av Frequency

Average Frequency

50Definition : The number of times, on average, the audience

reached sees the commercial during a given period.Formula : Average Frequency = Total GRPs ÷ Reach or

GRPs = Reach x Average FrequencyIn Practice : 110 GRPs ÷ 63% Reach = 1.75 Average Frequency

Therefore, 63% of the target audience will seethe commercial on average 1.75 times during thegiven period.

Question:350 GRPs and 7.0 Av Frequency = ? % Reach 80% Reach and 5.0 Av Frequency = ? GRPs

Average Frequency

400Definition : The number of times, on average, the audience

Question:350 GRPs and 7.0 Av Frequency = ? % Reach 50 80% Reach and 5.0 Av Frequency = ? GRPs

Average Frequency

5.0Definition : The number of times, on average, the audience

Question:350 GRPs and 7.0 Av Frequency = ? % Reach 50 80% Reach and 5.0 Av Frequency = ? GRPs 400

Average Frequency

5.45Definition : The number of times, on average, the audience

400 GRPs and 80% Reach = ? Av Frequency 5 300 GRPs and 55% Reach = ? Av Frequency 350 GRPs and 60% Reach = ? Av Frequency

400 GRPs and 80% Reach = ? Av Frequency 5 300 GRPs and 55% Reach = ? Av Frequency 5.45 350 GRPs and 60% Reach = ? Av Frequency

Average Frequency

Cost Per GRP

Definition : The cost of buying one rating point.

Formula : Cost ÷ GRPs = Cost per GRP

Cost Per GRP

In Practice : $220,000 ÷ 55 GRPs = $400 cost per GRP

Cost Per GRP

Question: If your cost per GRP was $475 and your budget was $237,500 for the month, how many GRPs would you

expect to buy?

Cost Per GRP

Question: If your cost per GRP was $475 and your budget was $237,500 for the month, how many GRPs would you

expect to buy?

Cost Per GRP

Cost Per Thousand (CPT)

Definition : The cost of reaching 1000 individuals within thecampaign target audience.

Formula : CostGRPs (÷ 100) x Universex 1000 = CPT

Formula : CostGRPs (÷ 100) x Universe

In Practice : $24,750 cost; 110 GRPs; 5,000,000 Universe 24,7501.1 x 5,000,000

x 1000 = CPT

x 1000 = $4.50 CPT

Question: Work out the CPT given the following components :Universe 6,500,000Campaign Cost $58,500Eight spots on the schedule that achieved the followingindividual ratings : 23, 18, 24, 16, 9, 31, 17 and 12

x 1000 = CPT

x 1000 = $4.50 CPT

Question: Work out the CPT given the following components :Universe 6,500,000Campaign Cost $58,500Eight spots on the schedule that achieved the followingindividual ratings : 23, 18, 24, 16, 9, 31, 17 and 12

$6.00Cost Per Thousand (CPT)

Frequency Distribution

Definition : The coverage delivered at actual frequency levels.Not to be confused with average frequency

In Practice :

010203040506070

1+ 2+ 3+ 4+ 5+ 6+ 7+ 8+

Frequency 1+ 2+ 3+ 4+ 5+ 6+ 7+ 8+Reach% 63% 55% 44% 31% 23% 15% 11% 7%

Effective Reach

Definition : The percentage of the target audience who have

seen the commercial at the defined optimum

frequency levels.

Effective Reach

Definition : The percentage of the target audience who have

seen the commercial at the defined optimum

frequency levels.

In Practice : The optimum frequency level to achieve brand

awareness may be 2+. The effective reach in the

example below is therefore 55%.

Frequency 1+ 2+ 3+ 4+ 5+ 6+ 7+ 8+Reach% 63% 55% 44% 31% 23% 15% 11% 7%

Effective Reach

Quiz Summary

The following schedule was constructed against the target audience Housewives 18-49 years. The universe for the target audience is 7,800,000 and the campaign cost is $110,000.

ProgrammeMusic CountdownBaywatchMovieRoseanneDynastyL.A. LawCheersDallas

Rating19149

Quiz Summary

Rating19149

Quiz SummaryThe following schedule was constructed against the target audience Housewives 18-49 years. The universe for the target audience is 7,800,000 and the campaign cost is $110,000.

1) What GRP’s did this campaign achieve?2) What is the Average Frequency? 3) What is the cost per GRP? 4) What is the CPT? 5) If Dallas was not on the schedule, how many GRPs would the campaign have achieved and what would the campaign reach have been?

116ProgrammeMusic CountdownBaywatchMovieRoseanneDynastyL.A. LawCheersDallas

Rating19149

63%1) What GRP’s did this campaign achieve?2) What is the Average Frequency? 3) What is the cost per GRP? 4) What is the CPT? 5) If Dallas was not on the schedule, how many GRPs would the campaign have achieved and what would the campaign reach have been?

Quiz Summary

19+14+9+13+21+7+15+18=116 GRPs

Rating19149

1.841) What GRP’s did this campaign achieve? 116 GRPs2) What is the Average Frequency? 3) What is the cost per GRP? 4) What is the CPT? 5) If Dallas was not on the schedule, how many GRPs would the campaign have achieved and what would the campaign reach have been?

Quiz Summary

116/63 = 1.84

Rating19149

$9481) What GRP’s did this campaign achieve? 116 GRPs2) What is the Average Frequency? 1.843) What is the cost per GRP? 4) What is the CPT? 5) If Dallas was not on the schedule, how many GRPs would the campaign have achieved and what would the campaign reach have been?

Quiz Summary

$110,000/116 = $948

Rating19149

$12.161) What GRP’s did this campaign achieve? 116 GRPs2) What is the Average Frequency? 1.843) What is the cost per GRP? $948 4) What is the CPT? 5) If Dallas was not on the schedule, how many GRPs would the campaign have achieved and what would the campaign reach have been?

Quiz Summary

$110,000(116/100) x 7,800,000

x 1,000

=$12.16

Rating19149

1) What GRP’s did this campaign achieve? 116 GRPs2) What is the Average Frequency? 1.843) What is the cost per GRP? $948 4) What is the CPT? $12.16 5) If Dallas was not on the schedule, how many GRPs would the campaign have achieved and what would the campaign reach have been?

GRPs- 98Reach-55%

Quiz Summary

116 - 18 = 98 GRPs

63 - 8 = 55%

How a TV Rating is measured .......

Using Peoplemeters:-

Using Peoplemeters:-Meter

Research Company

* Research company determines representative sample

* “Meters” installed

* Individual householder details recorded

* Householder “pushes button” when watching.

Recorded as a viewer

* Data on-line to research companyHandset

Using the Diary Method :-

– Research company determines representative sample

– Weekly diaries circulated

– Panel members complete diary» Instructed to complete on a daily basis

» Research company has no control over panel

» Could be completed just prior to collection

» Accuracy dependent upon memorising viewing habits

– Diaries collected and processed by research company

Peoplemeter vs Diary

Peoplemeter vs Diary PEOPLE METER

– Based on actual viewing

– Push button technology

» High degree of Accuracy

» Minute by minute GRPs

– Immediate Results

» Ability to monitor new stations quickly

– Guest Viewing Facility

– On-line access providing cross tabulations

» Increased targeting options

» Reach & frequency data

Peoplemeter vs Diary PEOPLE METER

– Based on actual viewing

– Push button technology

» High degree of Accuracy

» Minute by minute GRPs

– Immediate Results

» Ability to monitor new stations quickly

– Guest Viewing Facility

– On-line access providing cross tabulations

» Increased targeting options

» Reach & frequency data

DIARY– Based on recalled viewing– Manual self completion

» Less accurate» 1/4 hour GRPs

– 2/3 week delay in reporting results

– Panel viewing only– Paper access only– Delay in reporting new stations– Lack of targeting options– Limited reach & frequency data

Transition from Diaries to Peoplemeters

Change should be made as soon as possible

– Desirable to both advertisers & agencies» Greater accuracy» Facilitates reporting on new stations

– Less desirable to broadcasters (especially monopolies) High costs involved

– Broadcasters are unlikely to meet all of the costs Lobby broadcasters and research companies

– Form partnerships with other advertisers Understand and question existing research

– Demand to see questionnaire

Print Media

Newspapers / Magazines

Newspapers / MagazinesCirculationDefinitions : The number of copies each edition sells.In Practice : The Readers Digest has a circulation of 58,000 copies.

ReadershipDefinition : The total number of adult readers for each title.In Practice : The Readers Digest has a circulation of 58,000, but an average

of 8.5 readers per copy. Total Readership = 8.5 x 58,000 = 493,000

Newspapers / MagazinesCirculationDefinitions : The number of copies each edition sells. In Practice : The Readers Digest has a circulation of 58,000 copies.

ReadershipDefinition : The total number of adult readers for each title.In Practice : The Readers Digest has a circulation of 58,000, but an average

of 8.5 readers per copy. Total Readership = 8.5 x 58,000 = 493,000

CompositionDefinition : The number of readers per title who fall into our target

audience - expressed as a percentage of the readership.In Practice : Readership - 493,000

: Composition of Housewife Readers 14% : Total Housewives reading Readers Digest = 493,000 x 14% = 69,020

A Rating

A RatingDefinition : The percentage of the target audience who saw

the insertion..

In Practice : All Men reading S.China Morning Post - 750,000

All Men Universe - 3,000,000

Rating - 25%

A Rating

A RatingDefinition : The percentage of the target audience who saw

the insertion..

Rating - 25%

Question: If 550,000 Women saw our insertion in “The Straits Times” & the universe for Women is 1.5m, what

A Rating

36Definition : The percentage of the target audience who saw

the insertion..

Rating - 25%

Question: If 550,000 Women saw our insertion in “The Straits Times” & the universe for Women is 1.5m, what

Advantages & Disadvantages by Medium

Available media

Television Print Radio Cinema Outdoor Direct Marketing/Mail ‘New’ Media Sponsorship

Television

Television Advantages

– High impact

» Dynamics of sight, sound & movement

– High coverage

– Swift coverage build

– Low CPT

– Powerful ‘sell in’ medium to the trade

– Mass medium

Television Advantages

– High impact

» Dynamics of sight, sound & movement

– High coverage

– Swift coverage build

– Low CPT

– Powerful ‘sell in’ medium to the trade

– Mass medium

– Reliable research

Disadvantages

– Difficult to target precisely

» High wastage

– High production costs

– High capital cost

Print Advantages

– Mass & niche targeting opportunities

– Educational

» Long copy facility

– Lower capital cost

– Longevity

– Ad placement opportunities

– Pass on readership

Print Advantages

– Mass & niche targeting opportunities

– Educational

» Long copy facility

– Lower capital cost

– Longevity

– Ad placement opportunities

– Pass on readership

Disadvantages

– Slow to build coverage

– Variable reproduction quality

– Low impact

– Lack of verified circulation / variable research

Radio Advantages

– Skew towards desirable demographics

» Housewives/young adults

– Local market opportunities

– High frequency

– Low CPT

– Low production costs

» Minimise wearout with many executions

Radio Advantages

– Skew towards desirable demographics

» Housewives/young adults

– High frequency

– Low CPT

– Low production costs

» Minimise wearout with many executions

Disadvantages

– Low impact

– Low coverage

– More difficult creative sell

– Limited research

Cinema

Cinema Advantages

– Young profile

– Captive audience

– High impact

– Ability to follow films

– Local market flexibility

Cinema Advantages

– Young profile

– Captive audience

– High impact

– Ability to follow films

– Local market flexibility

Disadvantages

– Very high production costs

– Slow coverage build

– Poor research

Outdoor

Outdoor Advantages

– Good awareness builder

» Brand advertising

– High frequency

– Tactical medium

Outdoor Advantages

– Good awareness builder

» Brand advertising

– High frequency

– Tactical medium

Disadvantages

– Limited communication

– Massive wastage

– Little targetting sophistication

– High capital cost

– Very limited research

Direct Marketing

Direct Marketing Advantages

– One on one communication

– Targeting precision

– Detailed communication

Direct Marketing Advantages

– One on one communication

– Targeting precision

Disadvantages

– One chance

– Hostility to unsolicited approach

– No pass on readership

» Inserts in magazines

New media

New media Advantages

– Young profile

– At the cutting edge

– Chance to obtain user information

» Get to know the consumer

– Unsurpassed creative opportunity

New media Advantages

– Young profile

– At the cutting edge

– Chance to obtain user information

» Get to know the consumer

– Unsurpassed creative opportunity

Disadvantages

– Unproven

– Low coverage

– User as editor

– Communication not advertising

Sponsorship

Sponsorship Advantages

– Inherit sponsorship vehicles attributes

– Creative association/ opportunities with sponsorship vehicle

– Promotional competition associations

– Build data through sponsorship

Sponsorship Advantages

– Inherit sponsorship vehicles attributes

– Creative association/ opportunities with sponsorship vehicle

– Promotional competition associations

– Build data through sponsorship

Disadvantages

– Limited creative communication

– Long term investment needed to obtain maximum benefit

– Limited research

Creative Media Placement

Topping & Tailing Repeat spots Consecutive pages Editorial linkage Teasers ‘Roadblocking’ ‘Stand Out’ sizes Finding a new medium

Media terminology

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