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Media Planning & Buying in the 21st Century

CHAPTER 5

Audience concepts


WHAT IS AUDIENCE?MULTI-MEDIA AUDIENCE CONCEPTS

BROADCAST AUDIENCESPRINT AUDIENCES

AUDIENCE MEASUREMENT

Agenda


What is Audience?

Audience is the number of pairs of eyeballs or ears that is exposed to a media vehicle: broadcast, print, or digital

Audience may be exposed to vehicle for seconds, minutes, or hours

Audience may be paying attention or notAudience may or may not be exposed to any

advertising in the media vehicleAudience may or may not be involved with

the content of the media vehicle.


Audience = People Exposed to Media


Audience = Key Criterion for Media Selection

Audience Cost

Impact

Media Selection Criteria


How Media Generate Audiences

Coverage

Circulation

Vehicle Audience

Advertising Audience


Coverage

“Coverage” is potential audience, not actual audience

The definition of coverage varies by medium:

In broadcast media, coverage is the geographic area covered by the station’s signals or distribution; coverage has nothing to do with whether anyone is watching or listening in the coverage area

For newspapers, coverage is the number of copies distributed by the newspaper in a defined geographic, divided by the number of households in that area

For magazines, coverage is the percentage of a demographic group in the average issue audience of the magazine.

Circulation

Print Media

Number of copies printed/distributed by print media Paid or free Audited or unaudited

OutdoorIn outdoor, traffic passing by a location (#

vehicles/foot traffic) Circulation is necessary to generate an audience, but is not

itself real audience


Vehicle Audience

Vehicle audience is a measure of the number of people (ideally in target group) which is exposed to a media vehicle, however briefly or intently

In television (as measured by a Nielsen meter hooked up to the TV), vehicle audience is the number of sets tuned in during the average minute

In magazines, vehicle audience is the number of people who claim to have picked up and looked into an issue of a magazine

In newspapers, the number of people who claim they read the newspaper

In outdoor, an estimate of exposure based on circulation and research projections (Eyes On)


Advertising Audience

Advertising audience is the number of persons (total or by demographic group) who were in the average vehicle audience and were exposed to the ad or commercial

There are many reasons why advertising audience is always lower than vehicle audience. TV viewers may channel surf, leave the room, or look at a magazine when a commercial comes on. A magazine reader may spend only five minutes looking through a 150 page magazine


Gross Impressions

Gross Impressions are the total number of potential eye ball contacts with one or more media vehicles carrying an ad(s)

Impressions are a gross measure of total exposure because they include duplicated audience

Impressions represent a count of the number of exposures or contacts with media vehicles, regardless of the number of times the individuals were exposed to the vehicles

10 individuals exposed once = 10 impressions 1 individual exposed 10 times = 10 impressions


Reach & Frequency

Purpose Media planners and clients usually want to know

whether a campaign has had a good opportunity to be seen– by enough different people and often enough to have an impact

Reach Reach is the net percentage of the target universe

reached one or more times by a media schedule.Frequency

Frequency is the average number of times those persons are “reached” by media vehicles in media schedule


Net Reach

ABC

TargetUniverse

C = Duplicated Audience

Net Reach = Vehicle A + Vehicle B – Duplication (C)

Media Vehicle A

Media Vehicle B

What’s the Reach & Frequency?

# Homes GRPS

Universe 1000

Program A 200 20

Program B 300 30

Program C 100 10

GRPS 60

Reach Frequency

40% 1.5


Reach & Frequency

GRPS = Reach x Frequency

Frequency = GRPS/Reach

Reach = GRPS/Frequency


Reach & Frequency Example


GRPS = Reach x Frequency

TRPS = Reach x Frequency

Broadcast Audience Concepts

Rating- Average Rating (AA) - % of universe (HH, people) in defined area viewing/listening to TV program/station during an average time

Super Bowl: 44 average HH rating, 34.0 A25-54 rating

Radio: 1.5 A18-34 Average Quarter Hour rating

- Total Audience Rating (TA) – cumulative % who watched some of the program

Super Bowl: 60+ TA rating Radio station: A18-34 cume rating during 6-

10 AM drive period = 7.7


Broadcast Ratings

Average Audience Rating (AA) The percentage of a universe tuned, viewing or

listening to a station or program during an average time.

If 10 million of 100 million households are tuned to Media 101 on the Smart Channel, the program’s rating would be 10.

10,000,000/100,000,000 = 10 %

Total Audience Rating (TA) The percentage of a program’s audience which is

tuned for five minutes or more This explains why the Super Bowl may have a 44

average audience rating and a 60 total audience rating


Ratings

Super Bowl Audience(40 rating)

HHI

< $30M

$30-40M

$41-50M

Over $50M


Share of Audience

Share of audience is each viewing/listening alternative’s share of the total available viewing or listening audience at a given time.

Unlike Ratings, which are based on the total viewing/listening universe, share measures how the viewing or listening pie is divided up among the various options

Network/station people have to try to figure out why their share is bad or what could be done to improve it Run program on different day/time Run program against vulnerable competition


Share of Audience

Share by Program

As the Universe

Turns

60%30%

10%

10%

Share of Audience

Share

Share of available viewing/listening audience (HUTS/PUTS) tuned to a particular program at a particular time:

Example:

Rating Share

A 5.0 28.6

B 10.0 57.1

C 2.5 14.3

Total 17.5% 100.0%


HUTS & PUTS

9PM SaturdayMarch Dates

HHI

< $30M

$30-40M

$41-50M

Over $50M


Gross Rating Points (GRPS)

Gross Rating Points (GRPS) = Sum of Ratings

The universe for GRPS is households with television sets (99%)

If you purchased 10 spots with an average household rating of 5, GRPS = 50 (10 spots x 5 rating)

Of the five media vehicles, some people may see a vehicle once, twice, three times or more.

So, like gross impressions, gross rating points include duplicated audience.


Rating = HUTS/PUTS x Share

Example: HUTS at 9 PM on Friday night average 55% (of TV households)

You are trying to decide whether to buy into a new show, Student Scene, which you believe, given the weak competition, should get at least a 10% share of audience

The question is, how much commercial audience would Student Scene likely generate for the money spent?

If HUTS are 55% and the estimated share is 10%, the projected rating would be 5.5 in your geographic area.

If there are 100,000 households in your area and 5.5% watch Student Scene, it would reach, on average, 5,500 households


Target Rating Points (TRPS)

TRPS = Sum of Target Audience Ratings The population universe is based on target audience

definition, e.g., Demographics: men, women, adults 18-24, Product Users, e.g., Ford owners, Generational: Boomers Or other

TRPS are the preferred measure (people buy stuff, not households)

Must calculate target rating for each media vehicle The math is the same:

If you purchased 10 spots with an average target rating of 4, GRPS = 40 (10 spots x 4 rating)


GRPS vs. TRPS

HH Target Rating Rating

IndexProgram A 10.0 7.0 70Program B 11.0 6.6 60Program C 10.0 12.0

120 Total 31.0 25.6 83


Frequency Distribution

Beware of Average FrequencySome people are reached with more than the

average frequency, while others are reached with below average frequency

Reach Avg. Frequency

TRPS

90% 10.0 900

10 35.0 350

20 15.0 300

30 6.0 180

20 3.0 60

10 1.0 10


Print Audiences

Average Issue Audience Average issue audience is a measure of the number of people who are

estimated to be in the audience of the average issue of a publication

Primary Audience Purchasers of a publication and their families Have been found to read more of the publication

Pass-Along Audience Audience generated from exposure in public places, other people’s

homes, etc. These readers are exposed to a smaller percentage of pages, spend less

time

Total Audience The sum of primary and pass-along audience Unfortunately, most planners use this measure to compare magazines


Generating Print Audiences

Publication A Publication B

Circulation 1,000,000 2,500,000

Readers per Copy 15.0 4.0

Total Audience 15,000,000 10,000,000

If cost was not a consideration, which of these publicationswould provide the greatest communication value? Why?


Out of Home Audiences

Historically estimated by traffic counts and surveys defining the number and demographics of passengers who pass by different outdoor locations

Had no credibility with media professionals who questioned the validity of the audience measures which justified paying very low prices

Media people have been concerned about whether the outdoor audience actually saw outdoor boards

Today, the outdoor industry has launched a new measurement methodology (Eyes On) which on the basis of perceptual research and modeling, attempts to project advertising exposure to each outdoor board

Audience Measurement

Apples & Oranges

Number Who Picked Up/Looked into “Average Issue” of Magazine

vs.

Number of TV Sets Tuned During the Average Minute

Audience Research Sources

Media Type Measures Source

National Marketing & Multi Media Users, Profiles MRI & SMRB

Network & Cable Television Audience Nielsen Media Research

Spot Television Audience Nielsen Media Research

Network & Spot Radio Audience Arbitron

Magazines Audience Mediamark (MRI)Experian-Simmons

Newspapers Audience Scarborough

Outdoor Circulation TAB/”Eyes On”

Internet Page Exposure Nielsen, comScore, others

Local – Multi Media MarketingAudience

Scarborough, Media Audit


Nielsen People Meter for Local Markets

How Are Audiences Measured?

Television Programs HH tuned during average minute/electronically measured, plus diaries

Radio Stations/Dayparts Station/day/time listening recorded in diary

Magazines Readership recall (survey)

Outdoor Circulation – government traffic counts

Internet Nielsen Net Ratings: combines Nielsen panel data with site metrics. Provides

Audience demographics, reach & frequency, etc. available for other media


Unmeasured Audiences

For many media, audience measurements simply are not available. These media are too new, too small, or too specialized to fund audience measurement.

To make decisions about these media, planners and buyers must attempt to project audiences based on data that might be applicable about similar media and any information that is available about the unmeasured medium.

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