Media Basics

(Caveat – This ppt was built in 2004, but the basics and theories of Media plan, are timeless)

Part I : Media TerminologyPart I : Media Terminology

– TG & Universe– Reach, TVR & GRPs– Freq. Distribution & Effective Reach– Duplication & Avg, Frequency– Cost per GRP– Share of Voice– Discrete reach– Selectivity

Part II : Media Planning ConceptsPart II : Media Planning Concepts– C&S penetration– GRP Projections– Technique to apportion spends– Benchmarking– The optimization problem– Channel buys– Duplication analysis– Daypart Viewership & Channel Shares– Generic Strategies– Recency & Frequency– Value Additions– Scheduling– EF Estimator

Part I :Media Terminology

Introductory TermsIntroductory 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.Usually defined in demographics/ media consumption/ product consumption

UNIVERSE

Definition :The actual number of individuals within the defined target audience.

ReachReach

Definition : The percentage of the target audience who saw the commercial at least once during a given campaign period.

In Practice :

ProgrammeFriendsDynastyMovieSportNews

Rating3221182415

110 GRPs

Unduplicated Reach

3211974

63%

Cumulative Reach

3243525963

63% Reach

TVR v/s ReachTVR v/s Reach

A B C D E

1 # #2 # # #3 # # #4 #5 # #

Individuals

Minutes

People that saw the programme for atleast 1

minute :

A + B+D+E =4

Therefore, Reach=4/5

Reach=80%

Person Minutes Viewed Minutes Available

A 3 5

B 1 5

C 0 5

D 2 5

E 5 5

5 (A+B+C+D+E)

x 100

Ratings = On an average 44% of universe of the TG saw the entire Time band

TVRs :(3/5)+(1/5)+(0/5)+(2/5)+(5/5)

TVR v/s ReachTVR v/s Reach

Gross Rating Points ( GRPs )Gross Rating Points ( GRPs )

Definition : The sum of all ratings achieved in a given period. In Practice : Our commercial appeared in the following

programmes :

Programme RatingFriends 32%Dynasty 21%Movie 18%Sport 24%News 15%

110%

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

GRPsGRPs

GRPs = (TRPs in a media schedule)

GRPs = (S x TRPs) where S is #spots

GRPs = Reach x AOTS

Normalising GRPsNormalising GRPs How do we evaluate plans/ buying across

different brands:

– Eg. Brand A budget INR Rs 1mn- 200 GRPs with a 20 sec commercial

– Brand B budget INR Rs 1.2 mn - 125 GRPs with a 30 second commercial

– GRPs need to be normalized to the same duration in order to calculate CPGRP.

– Normalising A -1000000/(200*20/10)- CPGRP= 2500– Normalising B- 1200000/(125*30/10)- CPGRP 3200

The Brand A buy/plan is more efficient

Definition : The reach delivered at actual frequency levels.

In Practice :

Frequency Distribution

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%

Reach%

Frequency Distribution

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 Distribution

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

Effective Reach

1765

2852

103

836

148

Channel 1

ZEE Channel 2

Weekdays

TG-Females, 25-34 Sec ABC

•Duplication- It is the number of people who view a set of channels for a given period of time.Formula- Dup= Cum. Build- Unique cover(Note- Duplication is calculated on a weekday/weekend basis due to the difference in programming.)

•Cumulative Build- Build up of reach as the series progressesIt takes into account the duplication factor

Duplication and Cumulative build

Plan 1

Plan 2

Kendra Program C ost/30" Spots G R PsN etw or k C h itrahaar 405000 2 60

F ri .Fi lm 345000 2 78

DD M etr o Sunday Fi lm 135000 2 50

Su perhit M uquabla 345000 2 80

Total 1230000 8 268

Kendra Program Cost/30" Spots G RPsN etw ork Y ug 80000 4 60

Sw abhimaan 200000 8 80

D D M etro Sunday Fi lm 90000 2 50

A ankhon D ekhi 120000 4 80

T otal 490000 18 270

Why Reach . . . & why not GRPs ?

Kendra Program Cost/30" Spots Reach%Network Chitrahaar 405000 2

Fri.Film 345000 2

DD Metro Sunday Film 135000 2

Superhit Muquabla 345000 2

Total 1230000 8 55%

Kendra Program Cost/30" Spots Reach%Network Y ug 80000 4

Swabhimaan 200000 8

DD Metro Sunday Film 90000 2

A ankhon Dekhi 120000 4

Total 490000 18 25%

Plan 1

Plan 2

Why Reach . . . & why not GRPs ?

Plan 1 Costly268 GRPsOnly 8 spots

Plan 2 Cheaper270 GRPsA total of 18 spots

But the most important element is that Plan-2 reaches out to 30% 30% lesser potential target audience lesser potential target audience than Plan-1

Therefore Plan 1 is better optimised plan, and with lower Cost per Reach to reach the TG.

Why Reach . . . & why not GRPs ?

Average FrequencyAverage 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

In 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.

reach reachAOTS

When the duplication is lower the reach increases and average OTS decreases

(When dupln. is 10, reach goes up to 63% and AOTS becomes 3.15)

AOTS.rch rch

When the duplication goes up reach decreases and average OTS increases

(When dupln. is 40, reach decreases to 53% and AOTS is now 3.75)

Definition : The cost of buying one rating point.

Formula : Cost ÷ GRPs = Cost per GRP

In Practice : INR Rs.220,000 ÷ 55 GRPs = Rs.400cost per GRP

Cost Per GRP ( “cost per point” )

Share of Voice ( SOV )Share of Voice ( SOV )

A measure of media weight distribution as a % of the

total GRPs delivered by the category

A more reliable measure of relative weights because :

– measures a parameter that directly links media to TG

– smooths out differences in media buying among

brands in the category

Discrete Reach vs Effective Reach

78

62

49

40

29

2318

1411

8

0

10

20

30

40

50

60

70

80

90

1+ 2+ 3+ 4+ 5+ 6+ 7+ 8+ 9+ 10+

Discrete Reach at 1 = % TA who saw the ad exactly once = 78

Maximizing at 3+

0

10

20

30

40

50

60

70

80

90

1+ 2+ 3+ 4+ 5+

Undesirable1

Undesirable2

Ideal

Other TermsOther Terms

Share of Spends:Brand spends/ Category spends

*100

Selectivity: The profile of a channel/ medium

– Formula= Total Reach in (000) of the channel or

medium / reach in (000) of the same in the TG

– Usually done on market basis, as viewing habits are

different: eg. North West/ TN/ AP/ Karnataka/Kerala-

viewing habits is the key factor.

– Also, selectivity is done on a weekday/weekend basis.

Reach Selectivity-North-West Weekdays

0

200

400

600

800

1000

1200

1400

1600

1800C

h 1

Ch

2

Ch

3

Ch

4

Ch

5

Ch

6

Ch

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Ch

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Ch

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Ch

10

Ch

11

Ch

12

Ch

13

Reach

0

2

4

6

8

10

12

14

16

Selectivity

4Weeks 8Weeks SI

TG-Females, 25-34 Sec AB

Part II : Media Planning Concepts

C&S penetrationC&S penetration

C&S penetration is many time used to understand channel mixes required

It is also referred to see if there are certain markets where C&S/n C&S inputs are not required due to negligible target audience size

GRP projectionsGRP projections

TAM does not provide GRPs for all the geographies across India

Projection factors are used to project GRP s from centres that are reported to the centres that are not

This helps get a feel of the media weights aligned across India

Technique to apportion spendsTechnique to apportion spends A logical connection from GRP distributions

across India Enables us to gauge the amount of money

spent on each market Uses the principle of Gross Impressions

rather than plain population size GI = (GRP x TA size) /100 The spends will be apportioned in

accordance with the GI salience across the geographies

BenchmarkingBenchmarking

Benchmarking of effective frequencies

– Estimation of possible planning levels

Benchmarking channel CPGRP s for buying

– For a particular programme mix, for a TA each channel will have a typical CPGRP

– This will be used as benchmarks for negotiating

The optimization problemThe optimization problem

Having defined EF objectives , do we go all out?

6+/60 % might be inefficient to achieve

Develop a method to estimate most efficient reach point to cut off at

Channel buysChannel buys

The amount of GRP s bought on a channel

For example in the case of Zee TV , channel buy would be the total GRP s delivered across the north/west and eastern belt as an aggregate

A combined GRP figure in the n/w/e belt would lead to different GRP s delivered in the areas that form part of the combination

Duplication analysis Duplication analysis

Application of set theory

Used in order to build upon outputs of optimizers

Leads to day part buying decisions

Daypart viewership and channel Daypart viewership and channel shareshare

Day part viewership traces the viewing habits of the target audience

Usually peaks are chosen to advertise

During the peak the channel shares are plotted in order to determine the dominant channel

Used for cross channel scheduling

Generic strategiesGeneric strategies

Maximize reach

– Buy in channels/dayparts that increase the absolute number of people reached

Maximize frequency

– Identify channels/dayparts that lead to maximization of duplication

Recency and frequencyRecency and frequency

Recency

– Maximize reach at 1+ at a weekly level

– Optimize reach level to be attained

Frequency

– EF levels set at anything above 1

– AOTS tends to be high in these kind of plans

– Optimization is done on this also

Value additionsValue additions

Free of cost innovative media presence subject to bulk spending

Innovative presence that are charged at a lower rate than standard advertising

SchedulingScheduling

Continuity Pulsing Drip

EF estimatorEF estimator

Thank you