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While this could be a slightly dated presentation, (built in 2004)...the principles and theories highlighted in the document are timeles.
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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
7
Ch
8
Ch
9
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