Spot TV and Radio Media Review with Agency Response 4Q ... · 2 Texas Lottery –LatinWorks –4Q13...

Spot TV and Radio Media Review with Agency Response4Q 2013LatinWorks

2 Texas Lottery – LatinWorks – 4Q13 – Spot TV and Radio

Notice to Recipients

• The information and data contained herein are confidential and may not be divulged to any person or entity or reproduced, disseminated or disclosed, in whole or in part, except as required by applicable law or regulation, as requested by regulatory authorities, or with the consent of Media Management, Inc.

This material is expressly subject to any Non-Disclosure Agreements in force

• The research data contained herein are the copyrighted property of Nielsen Media Research and Spot Quotations and Data (SQAD). Unauthorized use of this copyrighted material is expressly prohibited. All Rights Reserved.

• Circle Audit™ is a registered trademark of Media Management, Inc. Unauthorized use of this trademark is expressly prohibited. All Rights Reserved.


Media Review Report for The Texas Lottery Commission-Conclusions

Media Management Inc. (MMi) was contracted through an IFB to review two TV and radio campaigns on behalf of The Texas

Lottery Commission airing from September to December 2013. The campaigns were titled Weekly Grand and Holiday.

LatinWorks was the agency responsible for the placement and stewardship of these campaigns.

As a general overview, LatinWorks did a very good job of executing the media for these two campaigns.

When reviewing media, MMi answers three basic questions.

Delivery-Did I get what I paid for?

Efficiency-Did I pay a fair price?

Responsibility-Were my buys and finances managed appropriately?

For both spot TV and spot radio the delivery can be considered very good. Overall, the TV campaigns delivered 102% to planned

rating points and the radio campaigns came in at 107.8% against planned rating points.

As part of the delivery question, stations are expected to compensate for any UD (under delivery) of guaranteed ratings delivery.

It’s the difference between what was ordered (estimated) and what was actually delivered(post). Anything under 3% of spend is

considered excellent and LatinWorks achieved 0.7% for TV and 2.8% for radio.


Report Conclusions- continued

SQAD (Spot Quotation and Data) is the industry benchmark standard to compare costs of what an average advertiser spends in a

market by daypart (time range ie. 7-10P is the prime daypart). A figure above the average may be able to be improved upon.

Overall weighted average costs for spot TV, the campaigns were 5.8% above the benchmark. The radio campaigns were 13.9%

above the benchmark. Several factors can contribute to costs coming in above the benchmarks, including the purchase of

schedules close to start dates or high demand in markets purchased. These are out of the agency’s control. We would recommend

giving the agency more lead time to purchase their broadcast buys if at all possible and consider negotiating annual contract with

vendor stations where pre-planning allows. In addition, the agency should keep informed on market conditions (ie. heavy political

spending) that might affect costs in an adverse manner.

The agency did a very good job with stewardship of the buys and finances. Both TV and radio invoices were paid in a timely

manner. The Lottery Commission publishes buying guidelines for the agency to follow. The radio buys had no guideline violations.

TV had negligible violations. 1.8% of the TV spend was considered unspecified, which occurs when an ordered commercial does

not match a station invoice. Under 3% is considered good. We would recommend the agency fully match all purchased buy lines

in their buying platform to station invoices when reconciling.


Circle Audit® Process Map

• Data from Agency to MMI

• MMI Confirmation to Agency

• Data mapping

• Daypart Coding

• Over-ride Managing

• Spot Matching / Unmatching

• Bucketizing (National)

Quality Controls

• Delivery

• Cost Efficiency

• Buying Guideline Compliance

• Identification, tracking, verification of recovery of ADU/UD owed per quarter per media property

• ISCI/Ad-Id

Analytics • Flexible – 100+ performance based KPI’s

• Delivery

• Cost Benchmarking

• Buying Guideline Compliance

• Agency specific performance

• Reviewd outputs for econometric models

Outputs

One week

Three to four weeks


Circle Audit® Key Differentiators


Process Overview

•Client approves MMI for US media review initiative

Engagement

•Initial informational agency call; Agency NDA executed (if required)

•Elements requested in writing and reviewed in detail on callData Acquisition

•MMI receives agency data; Project Manager facilitates data mapping and integration into Circle Audit® and generates Data Confirmation to agencyQuality Assurance 1

•Circle Audit® generates analytics across pertinent KPIs

•Media Analyst and Engagement Lead mine and organize key insightsAnalysis

•Additional Media Analyst(s) validates input and conclusions

•Review undergoes MMI panel review to assess identification of Client insights

Quality Assurance 2

•Publish initial findings / recommendations to client

•Solicit feedback from agency; publish conclusions and improvement agenda

Publication of Findings

Stage Key Milestones

Spot TV


• Overall Posted Buy Delivery vs. Planned TRPs 102.4%

• Overall Posted Buy Delivery vs. Final Buy TRPs 105.0%

• Four of eight (50%) Buys posted to Final Buy within tolerance (90-110% of Final TRPs)

• UD Value Owed $12,915.75 (0.7% of spend versus MMi norm 3-5%)

1Delivery

Did I get what I paid for?

• Overall weighted average variance of Posted costs 5.8% above Average SQAD marketplace benchmark

• Six out of eight schedules posted over benchmark

2Efficiency

Did I pay a fair price?

• $1,079.50 (0.1% of spend) did not meet 30-minute separation guideline• $31,096.40 (1.8% of spend) Unspecified (buy does not match invoice)• All vendor invoices paid in a timely fashion

3Responsibility

Were my buys and finances managed

appropriately?

4Q13 – Spot TV Executive Summary$1,759,080.10 Net Reviewed Spend


$1,713,988.4597.4%

$12,915.750.7%

$1,079.500.1%

$31,096.401.8%$45,091.65

2.6%

Net Reviewed Spending

Compliant Value ADU Value Owed

Spot Separation Unspecified

97% of $2.0 Million Spot TV Spend in Compliance($1,759,080.10 net reviewed spend)

• Actionable Delivery Shortfall

• Under-Delivery (UD)

• 0.7% of spend, valued at $12,915.75

• Weekly Grand: $8,546.75

• Holiday: $4,369.00

• Guideline Buy Management

• Unspecified spots

• $31,096.40 (1.8% of spend)

• Weekly Grand: $12,517.10

• Holiday: $18,579.30

• Spot Separation

• $1,079.50 (0.1% of spend)


Delivery: 4Q13 Spot TV Post Performance by Campaign

96.5

108.3102.4101.1

108.9105.0

0.9%0.6% 0.7%

0%

1%

2%

3%

4%

5%

50

60

70

80

90

100

110

Weekly Grand Holiday All Buys

% U

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Post vs. Plan Post vs. Final UD Owed

4 DMAs$774,588.85$4369.00

4 DMAs$984,491.25$8546.75

Total Reviewed DMAs:Net Dollars:

UD Net Value Owed:

4 DMA/8 Reviews$1,759,080.10$12,915.75

• Weekly Grand posted -3.5% below planned and 1.1% over Final Buy • Holiday campaign posted 8.3% over planned and 8.9% over Final Buy

1Delivery


Delivery: 4Q13 Spot TV Post Performance by Campaign, by Market

77.5

100.3

118.7

89.696.5

77.6

108.3

122.8

95.8101.1

12.4%

0.7%0.0%

2.6%

0.9%

-1%

4%

9%

14%

5060708090

100110120130

Corpus Christi Dallas-Ft. Worth Houston Waco-Temple-Bryan All Buys (Average)

% U

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1Delivery

86.5

104.2133.7 108.8

108.3

86.4

104.1134.8 110.4

108.9

5.7%

0.9%

0.0% 1.1%

0.6%

0%

2%

4%

6%

50

60

70

80

90

100

110

Corpus Christi Dallas-Ft. Worth Houston Waco-Temple-Bryan All Buys (Average)

% U

D V

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Ho

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nd • Corpus Christi TRPs

under-posted for both campaigns

• Corpus Christi only market with significant UD owed

• Houston over-posted TRPs for both campaigns

Total Reviewed Net $s:UD Net Value Owed:

$32,120.65$3,983.10

$426,338.75$3,190.90

$473,747.50$0

$52,284.35$1,372.75

$984,491.25$8,546.75

Total Reviewed Net $s:UD Net Value Owed:

$20,918.50$1,182.35

$330,631.30$2,816.05

$388,747.50$0

$34,291.55$371.45

$774,588.85$4,369.85


Efficiency: 4Q13 Spot TV Weighted Final Buy CPP Variance to Average SQAD by Market – Weekly Grand Campaign

2Efficiency

102.6%

14.2%8.2%

31.7%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

Corpus Christi Dallas Ft.Worth

Houston Waco

Variance to Average SQAD

Corpus Christi,

3.3%

Dallas Ft. Worth, 43.3%

Houston, 48.1%

Waco, 5.3%

% of Spend

Non-benchmarked Dayparts: Sports, Billboards, Bonus, UD weight, Unspecified, Weekend, ROS

• Overall weighted average of Posted costs 13.8% above Average SQAD marketplace benchmark

• Corpus Christi costs significantly over benchmark; however only 3.3% of total TV dollars spent in this market


Efficiency: 4Q13 Spot TV Weighted Final Buy CPP Variance to Average SQAD by Market – Holiday Campaign

2Efficiency

126.5%

-2.6%-9.6%

13.5%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

Corpus Christi Dallas Ft.Worth

Houston Waco

Variance to Average SQAD

Corpus Christi,

2.7%

Dallas Ft. Worth, 42.7%

Houston, 50.2%

Waco, 4.4%

% of Spend

Non-benchmarked Dayparts: Sports, Billboards, Bonus, UD weight, Unspecified, Weekend, ROS

• Overall weighted average of Posted costs -3.5% below Average SQAD marketplace benchmark

• Corpus Christi costs significantly over benchmark; however only 2.7% of total TV dollars spent in this market


Responsibility: Guideline Observations

Buying Guidelines

Weekly Grand Holiday

Restricted Programs $0 $0

Overnight Spots (12a-5a)*

$0 (103 spots) $0 (28 spots)

Spot Separation $1,079.50 (4 pairs) $0

Unspecified Spots**$12,517.10 (14 spots)

$18,579.30 (14 spots)

Minimum Ratings ***

$192,646.55 (422 spots)

$145,610.10 (242 spots)

Total $ Violation $206,243.15 $164,189.40

3Responsibility

* Overnight Spots - No violations, all Bonus and Added Value spots** Violations appear to be due to rate splitting*** Agency informed TLC that they would have to violate the minimum rating guidelines in order to achieve ratings goals

in many dayparts. TLC approved and directed the agency to only purchase programs with the same or higher rating than the daypart rating average.

• Total paid cost of 4Q13 non-compliance is $370,432.55• None of compliance violations represent recoverable dollars


MMi Improvement Agenda – Spot TV

Easier/Faster to Implement

Harder/Slower to Implement

HigherValue

LowerValue

6. TX Lottery/LatinWorks - Review Buying Guidelines to incorporate all delivery and stewardship expectations

7. TX Lottery/LatinWorks - Discuss pricing performance and ways to improve cost efficiencies

1. LatinWorks - Recover UD values owed.2. LatinWorks - Unspecified Spots: for future campaigns,

create a separate buy line for every spot so that invoices match buy lines in buying platform.

3. TX Lottery/LatinWorks - Re-examine minimum ratings requirement. This may mean either excluding dayparts and/or lowering the minimum.

4. LatinWorks – Track UD on a separate estimate, clearly indicate what UD spots are to ensure proper restitution tracking.

5. LatinWorks - Adhere to planned daypart mix and maintain consistency in how dayparts are used (UD, Credit, AV, BS should not be used interchangeably).


Spot Radio


• Overall Posted Buy Delivery vs. Planned TRPs 107.8%

• Overall Posted Buy Delivery vs. Final Buy TRPs 112.4%

• UD Value Owed $13,930.65 (2.8% of spend)

1Delivery

Did I get what I paid for?

• Overall weighted average variance of Posted costs 13.9% above Average SQAD marketplace benchmark

• Five of ten buys were below benchmark

• Corpus Christi and Dallas-Ft. Worth above benchmarks

2Efficiency

Did I pay a fair price?

• No violations• All vendor invoices paid in a timely fashion

3Responsibility

Were my buys and finances managed

appropriately?

4Q13 – Spot Radio Executive Summary$491,132.55 Net Reviewed Spend


• Actionable Delivery Shortfall• Under-Delivery (UD)

• 2.8% of spend, valued at $13,930.65• Weekly Grand: $4,581.50 • Holiday: $9,349.15

• No Buying Guideline Violations

$477,201.997%

$13,930.653%

Net Reviewed Spending

Compliant Value Under Delivery

97% of $491K Spot Radio Spend in Compliance($491,132.55 net reviewed spend)


Delivery: 4Q13 Spot Radio Post Performance

101.1

114.5107.8

104.9

119.9 112.4

1.7%

4.1%

2.8%

0%

1%

2%

3%

4%

5%

50

60

70

80

90

100

110

Weekly Grand Holiday All Buys

% U

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5 Markets$226,007.35$9,350.00

5 Markets$265,125.20$4,581.50

Total Reviewed Markets:Reviewed Net Dollars:

UD Net Value Owed:

5 Markets/10 Reviews$491,132.55$13,931.50

• Both campaigns posted above Plan and Final Buy • Holiday Posted TRPs considerably higher than planned

1Delivery

HolidayWeekly Grand All Buys


Delivery: 4Q13 Spot Radio Post Performance by Campaign, by Market

80.8

97.4 112.7 103.3 111.4101.1

84.6

101.5 118.0108.8 111.8 104.95.5%

2.9%0.0% 0.0% 0.0%

1.7%

0%

2%

4%

6%

8%

50

60

70

80

90

100

Corpus Christi Dallas-Ft. Worth Houston Killeen-Temple Waco All Buys % U

D V

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1Delivery

83.986.3

106.1

123.4 172.9114.5

89.4 91.2

113.1 129.9 175.9119.9

2.4%

6.9%

0.3% 0.0% 0.0%

4.1%

0%

2%

4%

6%

8%

50

60

70

80

90

100

110

Corpus Christi Dallas-Ft. Worth Houston Killeen-Temple Waco All Buys % U

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Ho

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Efficiency: 4Q13 Spot Radio Weighted Final BuyCPP Variance to Average SQAD – Weekly Grand 2

Efficiency

9.8%

22.6%

-3.3%

-13.3%

-17.9%-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Corpus Christi Dallas-Ft. Worth Houston Killeen-Temple Waco

Weighted Final Buy Variance to Average SQAD

• Overall weighted average of Posted costs 8.1% above Average SQAD

Reviewed Net Spend:UD Net $ Owed:

$5,559.00$304.30

$149,425.75$4,277.20

$97,597.00$0

$5,581.95$0

$6,961.50$0


Efficiency: 4Q13 Spot Radio Weighted Final BuyCPP Variance to Average SQAD - Holiday 2

Efficiency

12.4%

43.1%

1.2%

-11.5%

-22.6%-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Corpus Christi Dallas-Ft. Worth Houston Killeen-Temple Waco

Weighted Final Buy Variance to Average SQAD

• Overall weighted average of Posted costs 19.8% above Average SQAD

Reviewed Net Spend:UD Net Owed:

$4,627.40$111.35

$130,208.95$9,010.00

$80,282.50$228.65

$4,589.15$0

$6,299.35$0


Billing Reconciliation

• Agency paid vendors in a timely fashion

3Responsibility

Media Month/Yr

Average Vendor

Days Payable # Invoices

# Invoices

Paid 90 days

% Invoices Paid

>90 days

Spot TV Sept 59 20 1 5%

Spot Radio Sept 57 17 0 0%

Sept Total 37 1 3%

Spot TV Oct 48 19 0 0%

Spot Radio Oct 53 17 0 0%

Oct Total 36 0 0%

Spot TV Nov 53 17 0 0%

Spot Radio Nov 53 21 0 0%

Nov Total 38 0 0%

Spot TV Dec 71 20 0 0%

Spot Radio Dec 63 21 0 0%

Dec Total 41 0 0%

Spot TV 4Q13 58 76 1 1%

Spot Radio 4Q13 57 76 0 0%

4Q13 Total 58 152 1 1%

Industry Standard Timelines: Spot TV = 60 days Spot Radio = 60 days


Finding MMi Recommendation Responsible Party

Agree—Has Already

Been Resolved

Agree—Needs Action

Plan

Disagree with #s—

Agency/ MMi to discuss

Disagree—Agency/ Client to discuss

Resolution (Next Steps)

Timing

UD Owed $15,195 1. Recover TV UD Values owed LatinWorks

UD Owed $16,389 2. Recover Radio UD Values owed LatinWorks

Unspecified Spots 3. For future campaigns, create a separate buy line for every spot so that invoices match buy lines in buying platform.

LatinWorks

Minimum Ratings 4. Re-examine requirement. This may mean either excluding dayparts and/or lowering the minimum.

TX Lottery/LatinWorks

UD Tracking 5. Track UD on a separate estimate; clearly indicate what UD spots are to ensure proper restitution tracking

LatinWorks

Buy Maintenance 6. Adhere to planned daypart mix and maintain consistency in how dayparts are used (UD, Credit, AV, BS should not be used interchangeably).

LatinWorks

Limited Detail 7. Review Buying Guidelines to incorporate all delivery and stewardship expectations


8. Discuss TV and Radio pricing performance and ways to improve cost efficiencies


Resolution – Spot TV and RadioE

asie

r to

Fix

Lo

ng

er T

erm

Agency Response


LatinWorks Response

FINDING MMI RECOMMENDATION AGENCY RESPONSE

TV UD Owed $15,195 Recover TV UD values owed.

LatinWorks agrees with findings and process is in place to monitor and recover owed values.

LW has worked with Lottery to establish a process that upon conclusion of each quarter’s

posting results, agency will collect UD schedules from all stations for UD owed.

Radio UD Owed $16,389 Recover Radio UD values owed.

LatinWorks agrees with findings and process is in place to monitor and recover owed values.

LW has worked with Lottery to establish a process that upon conclusion of each quarter’s

posting results, agency will collect UD schedules from all stations for UD owed.

Unspecified Spots

For future campaigns, create a

separate buy line for every spot

so that invoices match buy lines

in buying platform.

LatinWorks agrees with findings and has already been resolved.

With new buying system MediaOcean, LatinWorks will have the capability to match station

invoices and buy lines specifically when these instances occur. In the example sighted by

MMI regarding the cost of bookend spots invoiced by stations, LatinWorks will have the

capability to now match rate changes based upon individual nuances on station invoices.

Minimum Ratings

Re-examine requirement. This

may mean either excluding

dayparts and/or lowering the

minimum.

LatinWorks agrees needs action plan.

LatinWorks to revisit FY’15 buy guideline requirements for minimum ratings in collaboration

with Texas Lottery.

UD Tracking

Track UD on a separate

estimate; clearly indicate what

UD spots are to ensure proper

restitution tracking.


LatinWorks to discuss implementation of moving recovered UD spots/GRP weight to

separate estimates upon completion of posts to ensure proper tracking of recovered UD

weight.


LatinWorks Response

FINDING MMI RECOMMENDATION AGENCY RESPONSE

Buy Maintenance

Adhere to planned daypart mix

and maintain consistency in how

dayparts are used (UD, Credit,

AV, BS should not be used

interchangeably).


LatinWorks will continue to maintain purchased daypart mix, although upgrade makegoods

following guideline rules will be considered during maintenance of each campaign.

LatinWorks buying system will allow for additional codes to be used to keep consistency of

dayparts for UD, Credit, AV, BS. Updates to UD tracking will also assist with buy

maintenance.

Limited Detail

Review Buying Guidelines to

incorporate all delivery and

stewardship expectations.


LatinWorks and Texas Lottery to collaborate and align on FY'15 Media Buying Guidelines,

inclusive of maintenance and stewardship expectations.

Limited Detail

Discuss TV and Radio pricing

performance and ways to

improve cost efficiencies.


LatinWorks will continue to monitor each market and report to the Texas Lottery any

instances that may impact cost efficiencies.


Thank You!


Appendix


MMi Buying Guidelines Top 10

1. Who do you most want to advertise to and what do you want them to do? A brief target audience and media objectives overview including

considerations beyond gender/age, secondary targets, recommended buying demographic or metrics, reach versus frequency or engagement

priorities

2. What level of vendor contracts is required on your behalf? Detailed, current (and signed) orders should protect your investment for every media

property order and include the relevant terms and conditions.

• Are your billion-dollar Network TV investments still executed Mad Men-style with a handshake and martini? (See MMi’s Anatomy of an

Order Letter)

• Do your Digital orders include cancelation policies that allow for ongoing agency optimization to maximize KPIs?

3. What are your delivery expectations versus Planned and Purchased?

• Have you stated an expectation to 100% overall and within what time period?

• Have you added and differentiated an acceptable lower threshold per vendor as media type may dictate (i.e. Spot TV delivery should be

100% per DMA, but each station is held to 100% if Nielsen measurement is Local People Meter, 95% if Metered, 90% if Diary)?

4. What are your delivery tolerances per week/flight/brand/message/commercial length (+/- 10% for example) within what may be broader annual or

corporate buys.

• Is every buyer and media property representative aware of your key seasons/events and relative priority, and stewarding buys accordingly?

5. How are post-performance methodologies defined? Provide definitions and timing for reporting as appropriate per media type: broadcast media

posting rules, circulation analysis methodology, buy types and count-of-record source for Digital payments.

1. Is there a control mechanism to prevent buyers and/or media outlets from fishing for numbers? Are you comfortable with the degree you

are paying for DVR viewing or publisher-reported audience figures?


MMi Buying Guidelines Top 10

6. What are the provisions and timing for recovery of delivery shortfalls or missed requirements: credits, makegoods, bonus weight, under delivery

recovery, etc.?

• Are you hearing about audience shortfalls months after advertising ran and recovery opportunities have expired or are buyers given a guide

how to handle and manage on-the-fly?

7. Do you have time of day and other placement requirements and preferences including definitions? Some examples include: TV Primetime

composition 8-11pm EST, TV Pod positioning, Search bid management maximize 12n-1p EST, no local commercials after 2am EST, magazine ads to

run opposite full editorial regular column first 50% of book, etc.

• Are local TV buyers allowed to buy Sanford & Son weekend re-runs for Primetime?

• Can radio buyers load up in the 5-6am portion of Morning Drive?

8. What other effectiveness parameters will help support overall objectives? Preferred or Hit List Media Properties and Content/Programming,

Commercial Separation Requirements, High-Rated/High-Profile versus Efficient buys may all influence consumer impact.

9. Have you defined expectations for financial management including timely invoice reconciliations?

• Is the agency force-matching in order to pay vendors for out-of spec commercials? Are you getting adjustment billing six months after

activity ran and driving accrual headaches?

10. What are your reporting requirements that support appropriate and timely performance feedback loop?

• Are you getting review/approve rights on buy schedules or is agency planning managing on your behalf? Who has review/approve rights

over exception reports for any deviations from specs and guidelines?

• Do you need multiple data sets: Is your brand target Women 18-49 but National TV corporate guarantee Adults 25-54? Is your Digital goal 1

Million Clicks but buys are CPM?

Spot TV and Radio Media Review with Agency Response 4Q ... · 2 Texas Lottery –LatinWorks –4Q13...

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Transcript of Spot TV and Radio Media Review with Agency Response 4Q ... · 2 Texas Lottery –LatinWorks –4Q13...