Media toolset

Imagine you are trading beer

How would you settle payments with beer manufacturer?

Will you pay him all the cost even if no one approached your stall?

Obviously you must pay in proportion to those bottles that were bought

The fairest payment model

You pay for what was demanded

Sale not presence on a stall has value and initiates payment

The same is with media

Contacts not emissions define the effectiveness

and cost of the campaign (for most measurable media TV)

Beer sale Commercial exposure

1 rating denotes a number of exposures equivalent to 1% of the target audience exposed to commercial

If there are 200.000 M25-54 then 1 rating = 2.000 (a number equivalent to 1% of the M25-54 were exposed to an ad)

To calculate turnover you simply total transactions

When you add exposures you get gross exposures (Gross Rating Points = GRPs)

If you ran 4 spots, and they ALL earned a 10 rating, we can declare that campaign earned 40 GRPs

Equal amount of bottles may be sold in different ways

The same is with exposures

To many consumers

In media it refers to REACH

Reach is % of the target population that have received

the message at least once

Factors that add to high reach

Beer trade industry

A stall at hypermarket

At different hypermarkets

Trade the whole day

Trade the whole week

Different brands

Have mobile stall at beer festival, …

Media industry

High rating station

Use wide range of stations

More day-parts

More week days

Different program genres

Use high-rating one-time events (World Cup, …)

You may sell every item into different hands

Thus having more exclusive consumers

55 of the 100 GRPs may reach viewers for the first time

The remaining 45 GRPs are duplicated exposures

So it depends on your goals and skills

…these poor someone may consume extra

If you know how many beers you have sold and the number

of consumers

You can tell how many bottles everyone drinks on average

In media it refers to FREQUENCY

Frequency denotes the number of times that the average member of the target (who’s been reached) is

exposed to a message

Factors that confine reach and add frequency

Beer trade industry

Local small pub

At one sleeping district

Trade only at noon

Trade only on Sundays

Trade only one brand

Media industry

Low rating station

Limited amount of stations

Limited day-parts

Limited week days

Limited program genres

In media it refers to duplication

Because of duplications reach is always lower than 100%!

High capacity plant may produce annual amount of bottles that exceed population

Heavy campaign may have over 100 GRPs

Monetary value of exposures and GRP

CPP is the cost of exposing 1% of the target

audience

CPT (CPM) is the cost of delivering 1.000 exposures among a target audience

Factors that influence cost

Beer trade industry

Cost may vary by outlet

Cost may vary

Peak and off seasons

Cost may vary by brands

Media industry

Cost may vary by stations

Cost may vary by day-parts

Cost may vary by months

Cost may vary by programs

Liter is a standard in beer industry…

Draughts/bottles of different size have different value to consumer - thus must have different cost as well

…Eq.GRP in media

To assess communication and monetary value of TV commercials correctly we need to adjust them to a certain

standard - usually 30”

Affinity

Men are heavier beer drinkers than women

To assess how heavier you simply calculate sales for men and women and compare them

The same in media - calculate exposures (GRPs) for diff. audiences and compare them

Dividend of GRPs for two audiences is AFFINITY

So what? What can we obtain of it?

Affinity reflects addiction & popularity of the program among the target

Moreover it is important buying variable when

related to buying audience

Affinity as a buying variable

The station sells ratings for P16-49, CPP is $1.000

The target group is W20-45

The program delivers 10 GRPs for P16-49, 8 GRPs for W20-45

What is the cost of buying 1 GRP for W20-45?

What is the affinity of W20-45 to P16-49?

Why affinity is so important?

Can GRPs be added for different target groups?

1 GRP is a percent of specific target, adding diff. %% is incorrect

Can GRPs be added across different media?

Practically Yes. But note you are adding ‘saw the ad’ vs. ‘in the room’, etc.

Other questions…