Media Planning & Brand Management - Stella Romagnoli · 2020-01-25 · Frequency • If reach is...

Media Planning & Brand Management

Stella RomagnoliMarketing & Digital Communication

LUMSA 2018-2019

Stella RomagnoliMedia Planning & Brand Management - LUMSA 2019 2

Lesson 6.Key media metrics

Agenda

Key media planning metrics• Impressions• Reach and rating points

• Frequency• GRP’s (& TRP’s)

• C/GRP’sOnline media metrics:

• Impressions and viewability• Clicks and CTR

• Visitors, page views, conversion, hits


• Advertising is placed in media in order to reach specific, defined target audiences.

• But how can we «translate» this capability?

• Which is the currency?


Key planning metrics

Target audience


Let’s imagine to plan aTV Campaign


What are these?


Contactsor impressions


How many impressions?


Gross impressions and Net Contacts

5 gross impressions3 net contacts

(people)


REACH


Reachrefers to the number or

percentage% of people in the target audience who will be

exposed to the medium where the message appears


Let’s make an example

• Target = 100 people


• Target = 100 people

• The medium that I plan (e.g. newspaper) is viewed by 50 people in target

Which will be my reach?


What’s the math?

• 50 reached people/100 target audience=50/100= 50%

Reach%= 50%


The higher the reach,The better


Reach

From impressions to reach%


From impressions to reach%

Reach%?


Calculations: from impressions to reach%

Reach%?

Net contacts x 100 / target = 3/6 x 100 = 50%Stella RomagnoliMedia Planning & Brand Management - LUMSA 2019 20


RATING POINTS

Understanding rating points

• Rating, especially in USA, is used as the baseline measurefor all media concept

• One rating point equals 1 percent of a particular target group

• It is the same as 1% reach



FREQUENCY

Frequency

• If reach is the net percentage of the target universereached one or more times by a medium, frequency is the average number of times those persons are reached

• It’s «how many times» our target audience has the Opportunity To See (OTS) the message


We need to repeat the messagein order to have it remembered


How can we chose the right frequency?

Effective Frequency’s doctrine

• Herbert Krugman’s idea is that 3 sequential psychologicalimpressions are necessary for advertising to induce consumers to act:

1. The first is to stimulate UNDERSTANDING (and to prompt the respondent to ask: «what is it?»

2. The second is to cause the respondent to EVALUATE(«what of it?») and RECOGNITION («I’ve seen thisbefore»)

3. The third exposure REMINDS: a process that leads to buying (and also to disengagement: «I’m not longerinterested»)



But there is not a scientific rule.

Effective frequency

How to decide the optimal frequency? How many times do we need to repeat the message?It depends on many factors: the message relevancy, the creativity and the media


q new product/service?q very interesting product/service?q new advertising campaign?q Very impactful creativity?q Young and «quick to grab messages» target

audience?q Crowded media?


AVERAGE FREQUENCY reports

the average number of times a person is exposed to an advertising schedule

Average frequency

30

Averagefrequency?

How to calculate average frequency

Gross impressions/Net contacts= 6/3 = 231

Averagefrequency


Let’s try with some examples

Try and calculate

• Target audience: 100 • Gross Impressions 400• People who saw the message: 50

Which is the average frequency?


Try and calculate



400 grossimpressions

How many net contacts?

Try and calculate


Gross impressions: 400 /Net contacts: 50 =

400/50 = 8Average Frequency= 8


Try and calculate


Which is the REACH%?


Try and calculate


Net contacts: 50 /Target audience: 100 =

50x100/100 = 50%Reach%= 50%



And now the mostimportant metric of advertising planning


GRP’sGross Rating Points

GRP’s

• We can define GRP’s as the units of the advertising «pressure»

• They are the result of

REACH% (X100) X AVERAGE FREQUENCY


GRP’s: Gross Rating Points


GRP’s?

Reach% x 100 x Frequency = 50 x 2 = 100

GRP’s


If the frequency is 1GRP’s = ?

GRP’s


If the frequency is 1GRP’s = ?

Reach%

Example

• Target audience: 100 people

• I buy an advertisment on the newspaper that is read by 20 people in target


Which reach% do I get?

Example





20%

How many GRP’s?

Example





20%

How many GRP’s? 20

GRP’s: another way to calculate them

• GROSS IMPRESSIONS x 100 / TARGET =

• (net contacts x average frequency x 100) / target =

• (net contacts x 100 / target) x average frequency =

• REACH% (x100) X AVERAGE FREQUENCY

• 6 x 100 / 6 = 100

• 50% x 100 x 2 = 100

It’s really an easy way to calculate GRP’s, since weusually don’t know the duplication of exposure (and so the net contacts)



But the easies way to calculate GRP’s is…


Adding up all the rating points of each media

GRP’s: adding up all the rating points

Adding up all the rating points (reach%) of each AD

• 1� spot = 50 (rating points = reach)

• 2� spot = 33 (rating points = reach)

• 3� spot = 17 (rating points = reach)• Total = 100 GRP’s (GROSS rating points)



Let’s see if youunderstood


• 1 advertisment on La Repubblica is read by 20 people in target


Which is the REACH%?

How many GRP’s?


• 1 advertisment on La Repubblica that is read by 20 peoplein target


Which is the REACH%?10%

How many GRP’s?10

A more complex media plan

Target audience: 100 people

1 advertisment on Messaggero that is read by 10 people in

target +1 advertisment on Corriere della Sera that is read by 20 peoplein target


Which is the REACH%?How many GRP’s?






Which is the REACH%?I CANNOT KNOW.

I don’t know the duplications of exposure






But I can calculate GRP’s:10 + 20 = 30


So,how can we calculate reach%?


With specific softwareUsed by media agencies

Media agencies

• Media agencies are specialized in media strategy, planning and buying media

• They use special softwares (Kubik or Galileo / Supernova by Memis) that elaborate data from media audience surveys and calculate exposure duplications

• So that we can estimate net contacts and reach%.


1. We start with target audience definition


Using media audience research segmentation variables


Target audience definition

2. Than we get the in-target audience ranking

Cover: net contacts Reach%

TRPs?


TRP= Target Rating Pointsame thing as GRP’s

TV audience ranking

GRP’s

impressions


3. Then we choose a combination of media vehicles


Quantity of differentplanned ads

Frequency on target audience Reach% TRPs = reach% x freq.

And we have the plan


Quantity of differentplanned ads= 18 Average frequency = 4 Reach% =59,9%

TRPs = 260,1

There may be discrepancies due to rounding (frequency…)

GRP’s are the most importantmetric in advertising planning

(together with the budget)


TV planning is measured in GRP’s


We track our competitors’ GRP’s to calculate Share of Voice and forecast their strategy



Let’s see some metricsrelated to media costs

Media buying: net and «net net»

Rate card:

• 150.000 €

Discount:50.000 €

Net Price:100.000 €

Agency Commission 15%

Net net price:85.000 €


invoice

Net and Net Net

• Net price is the price calculated after the negotiation(rate card – discount)

• Net net price is the price of the invoice (net price minus15% of Agency commission.


Media efficiency: costs Vs. rating points

To compare media vehicle, we can use the ratio betweencost and GRP’s, that’s called:

C/GRP’s (Cost/GRP’s)


Or we can use cost Vs. contacts (usualy for print, consideringCirculation),:

C/C (Cost/Contacts)

But let’s do some practice…

1.

• I prepare a media plan with newspapers. La Repubblica has 10% target reach and Corriere della Sera 5%.

• If I plan 2 ads on Repubblica and 3 on Corriere della Sera, how many GRP’s will I get?


2.

• With 300 gross impressions and 50 net contacts on a target of 100 people

1. Which is the REACH%?

2. Which is the average FREQUENCY?3. How many GRP’s?


3.

• I have a target of 100 people. My media plan gets a reach% of 30%.

• How many net contacts I get?


4.

• My media plan costs 100.000€• If I have planned 100 GRP’s, which is my C/GRP’s?


GOOD WORK!


Now let’s go on with online metrics


IMPRESSION

LUMSA - Pianificazione e Controllo della ComunicazioneStella Romagnoli

We find «impressions» also on the web• Internet impressions represent persons potentially

exposed to our ad or sponsored link visible on a web page.

Web impressions

We count an impression when a web page is uploaded by a browser• Nobody can assure us that there is a person and not a

robot

• Nobody can say if the message is really seen by thatperson



When do we consider an ad seen?

Viewability (5’55”)

Viewability

The Internet Advertising Bureau (IAB), defines a «viewable» impression as the one that at least 50% of pixels of a display ad be visible for at least 1 second• For desktop video the standard is to be 50% visible for at

least 2 second• For Large Display: 30% of the pixels for at least 1second.


Viewability: desktop, IAS report 2018

Fonte IAS, Report sulla Media Quality 1 semestre 2018

Viewability: mobile


Time-in-view?



CLICKS

Clicks

When a mouse clicks on an ad or a link, it takes the user to a page on the website.

CTR (clicks-through-rate) = is the ratio between

CLICKSIMPRESSIONS

It’s a measure of our ad’s ability to provoke interest


CTR =


VISITOR

Visitors

• VISITORS refer to the total number of internet users whoarrive at a website, some of whom may have visited the site more than once.

• Visitors behaviour on a site varies: some stay only verybriefly, while others may navigate around the site examining its content.

• It’s important to consider the «time per person»

• UNIQUE VISITORS (or UNIQUE AUDIENCE) are who visitthe web site counting each person only once during the reporting period.



PAGE VIEWS

Page Views

• PAGE VIEWS are the gross number of times particularpages are accessed - Without regards to the number of different individuals accessing the page.



CONVERSION

Conversion

• CONVERSION is the number or the percentage of visitors to a website who go on to take action, a more useful measure than page views.

• The action could be making a purchase while on the website or filling out a form to request information.



HITS

Hits

• HITS are easily confused with clicks and website visits.

• When someone visits a website and clicks on its content(links, graphics, or text) that is a HIT

• Hits are NOT clicks or visitors! They are useful to assessusers’ interests (e.g. what content gets a lot of hits?)



Avilable data depends on the research

Audiweb January 2019 report


LUMSA - Pianificazione e Controllo della Comunicazione

In Italy Audiweb measures internet audience

• Unique audience (net contacts)

• Total digital audience (gross impressions)• Total page view• Time per person

Stella Romagnoli

But today these are jurassic data…

Next lesson we’ll talk aboutplanning and buying internet

advertising


ThanksSources:

The media handbook - Helen Katz – 2017

Media planning & buying in the 21st century – Ronald Geskey – 2017

When Ads work – John Philip Jones – 1995

Online Marketing Foundation – Ted Batesole – Lynda.com


Media Planning & Brand Management - Stella Romagnoli · 2020-01-25 · Frequency • If reach is...

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