Metrics Credentials For Slideshare December 29, 2008


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Media Auditing in Japan

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Metrics Credentials For Slideshare December 29, 2008

  1. 1. METRICS Helping bring “Fair trade” to Japan’s marketing services industry
  2. 2. Mission <ul><li>METRICS is Japan’s first consultancy designed to Audit the performance of marketing communications for both internal and outbound clients </li></ul>Marketing Management Consulting using Measurement, Evaluation and Benchmarking
  3. 3. Purpose <ul><li>This presents a basic outline of Metrics, a Japan based marketing consultancy that helps both Japanese and international marketers to better manage their marketing investments and their various marketing suppliers in Japan and for outbound business from Japan. </li></ul><ul><ul><li>Above the line (ATL) and below the line (BTL) communications </li></ul></ul><ul><ul><li>Creative and Production </li></ul></ul><ul><ul><li>Public Relations </li></ul></ul><ul><ul><li>Digital communications </li></ul></ul><ul><ul><li>Social media and Reputation management </li></ul></ul><ul><ul><li>Agency and suppliers </li></ul></ul><ul><ul><li>Organization and People </li></ul></ul><ul><ul><li>Overall Marketing ROI </li></ul></ul><ul><ul><li>Pitch consulting for the marketing partners listed above </li></ul></ul>
  4. 4. Needs of marketers globally and in Japan <ul><li>“ How difficult are each of the elements in the marketing process?”* </li></ul><ul><li>Measuring advertising and brand impact – 63% </li></ul><ul><li>Managing marketing activities – 58% </li></ul><ul><li>Providing visibility into all marketing activities – 51% </li></ul><ul><li>Coordinating internal workflow – 45% </li></ul><ul><li>Maintaining consistency across all media channels – 41% </li></ul><ul><li>Gaining insights into consumers – 38% </li></ul><ul><li>Identifying media vehicles – 38% </li></ul><ul><li>Managing and tracking expenses against budgets – 35% </li></ul><ul><li>Identifying audience segments – 34% </li></ul><ul><li>Managing creative content – 34% </li></ul><ul><li>Managing project details – 32% </li></ul><ul><ul><li>* Forrester study commissioned by Aegis Media – global sample - 136 </li></ul></ul>
  5. 5. Why Audits are necessary in Japan? <ul><li>Example: How Japan’s TV Buying markets Differs from Western Markets* </li></ul>*TV Spot buying <ul><li>Western Markets </li></ul><ul><li>Buyers’ market (advertisers) </li></ul><ul><li>Transparent process for deals </li></ul><ul><li>Target GRP can be use as a currency for buying </li></ul><ul><li>Clear cost information can be provided by TV stations </li></ul><ul><li>Pinpoint buying is often possible </li></ul><ul><li>On-air schedule can be changed before aired </li></ul><ul><li>Some compensation for under-delivery of GRP </li></ul><ul><li>Media auditors aim to investigate buying cost performance by comparing with other advertisers </li></ul><ul><li>Japan </li></ul><ul><li>Sellers’ market (media) </li></ul><ul><li>Opaque process for deals </li></ul><ul><li>Only household GRP or number of CMs are allowed as units for buying </li></ul><ul><li>No cost information to compare with other clients is given to anyone </li></ul><ul><li>Only package buying is offered </li></ul><ul><li>Difficult to change the on-air schedule before aired </li></ul><ul><li>Rare for compensation for under- delivery of GRP </li></ul><ul><li>Media auditor (METRICS) aims to improve target cost efficiency with avoiding under-delivery and improve spot positions </li></ul>
  6. 6. Our Service Line-up <ul><li>Marketing Management Consulting by using the following Auditing Services </li></ul><ul><ul><li>Media Performance Assessment (Media Audit) </li></ul></ul><ul><ul><li>Creative Performance Assessment (Creative Production Audit) </li></ul></ul><ul><ul><li>PR Performance Assessment (PR Audit) </li></ul></ul><ul><ul><li>Agency Performance Assessment (Agency Audit) </li></ul></ul><ul><ul><li>Management System Performance Assessment (Mgt. System Audit) </li></ul></ul><ul><ul><li>Digital ROI </li></ul></ul><ul><ul><li>Social Media and Reputation Tracking </li></ul></ul><ul><ul><li>Marketing ROI Assessment (M-ROI Audit) </li></ul></ul>Media Audit Creative Audit PR Audit Agency Audit Management System Audit Marketing Management Consulting M-ROI Audit Creative Audit Digital Audit Reputation Audit
  7. 7. Media Audit – our core business <ul><li>Media Performance Assessment Services </li></ul><ul><ul><li>Exposure validation </li></ul></ul><ul><ul><ul><li>Did our clients get what they paid for? </li></ul></ul></ul><ul><ul><ul><li>Did you do better than you expected? </li></ul></ul></ul><ul><ul><ul><li>Do you do worse than you bargained for? </li></ul></ul></ul><ul><ul><li>Cost and quality benchmarking & evaluation </li></ul></ul><ul><ul><li>Covered media: </li></ul></ul><ul><ul><ul><li>TV Audit (spot and program) </li></ul></ul></ul><ul><ul><ul><li>Print Audit (newspaper and magazine) </li></ul></ul></ul><ul><ul><ul><li>Web Audit (banner, listing and website) </li></ul></ul></ul><ul><ul><ul><li>Outdoor Audit (OOH and transit) </li></ul></ul></ul>
  8. 8. Media Audit <ul><li>Two types of Media Performance Assessment Services </li></ul><ul><ul><ul><li>Global Audit </li></ul></ul></ul><ul><ul><ul><ul><li>Based in Japan but coordinated globally through global partners </li></ul></ul></ul></ul><ul><ul><ul><li>National Audit for Japan </li></ul></ul></ul><ul><li>Benchmark Evaluation </li></ul><ul><li>Problem Extraction </li></ul><ul><li>Solution & Implication </li></ul><ul><li>Benchmark Evaluation </li></ul><ul><li>Global Comparisons </li></ul><ul><li>On-going tracking </li></ul>Global Audit National Audit
  9. 9. Global Audit METRICS has made alliances with worldwide media consulting companies to monitor media performance across the world USA Canada Brazil UK & Ireland Italy Spain Benelux Germany France Mexico CEE/Russia Korea India, Pakistan Australia, NZ SE Asia China Greece/Turkey Global Audit Australia
  10. 10. Global Audit – Common Methodology <ul><li>Two Criteria for Global Audit </li></ul><ul><ul><li>Quality </li></ul></ul><ul><ul><ul><li>Quality includes the following criteria </li></ul></ul></ul><ul><ul><ul><ul><li>GRP Delivery </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Targeting </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Programming </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Day Parts </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Coverage </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Weekly Weight, etc., </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Quality score will be evaluated against the competitive panel (CP) </li></ul></ul></ul></ul></ul><ul><ul><li>Cost </li></ul></ul><ul><ul><ul><li>Evaluate against a local cost benchmark </li></ul></ul></ul><ul><li>Designed to evaluate the balance of Quality and Cost and find strengths and weaknesses to apply strategic adjustments for each region </li></ul>
  11. 11. Global Audit – Scoring Process Your Performance CP Market Performance Your Cost Performance Local Cost Benchmark Quality Score Cost Score Compare with each benchmark Overall Score Evaluate the balance of Quality and Price/Cost Remark: Local Cost Benchmark is deduce from Cost Pool
  12. 12. National Audit – target cost efficiency Qualities Costs Buying Cost Stable HH GRP Achievement Conversion Ratio × <ul><li>GRP buying costs </li></ul><ul><li>10 Factors </li></ul><ul><li>monitored </li></ul>Target Cost-efficiency Improvement National Audit (Japan) These elements should be compared with market benchmark and past record benchmark to improve ‘target cost efficiency’.
  13. 13. National audit - coverage <ul><li>Data coverage is available for the following markets in Japan </li></ul><ul><li>Kanto </li></ul><ul><li>Kansai </li></ul><ul><li>Chukyo </li></ul><ul><li>Fukuoka </li></ul><ul><li>Hokkaido </li></ul><ul><li>Miyagi </li></ul><ul><li>Hiroshima </li></ul><ul><li>Shizuoka </li></ul><ul><li>Oka/Taka </li></ul><ul><li>Fukushima </li></ul><ul><li>Niigata </li></ul>
  14. 14. National Audit - example <ul><li>GRP Achievement Assessment Mechanism: </li></ul><ul><ul><li>Actual Household GRP’s can be assessed with 10 Measures to pinpoint GRP Gain/Loss </li></ul></ul><ul><ul><ul><li>M1 – Applied buying week M6 – Program timetable change </li></ul></ul></ul><ul><ul><ul><li>M4 - Spot position M8 – Moved spots </li></ul></ul></ul>Major Loss Factor -9.8% (-293.5 GRP) Improvement for Loss Factor 95.8% Achievement can be reached -419.9 0.0 0.0 -45.8 0.0 -69.5 0.0 -123.7 -45.0 -35.6 100.3 GRP 86 0.0 0.0 -1.5 0.0 -2.3 0.0 -4.1 -1.5 -1.2 -3.3 GRP% % Achiev M10 M9 M8 M7 M6 M5 M4 M3 M2 M1
  15. 15. National Audit <ul><li>Other Improvements: </li></ul><ul><ul><li>Target Conversion Ratio: </li></ul></ul><ul><ul><ul><li>Considering the quality of attention rate/Reach and with an average zone conversion as an objective, Conversion Ratio will sustain or improve </li></ul></ul></ul><ul><ul><li>Cost/GRP: </li></ul></ul><ul><ul><ul><li>Negotiations using the cost benchmark lead to the buying cost reduction </li></ul></ul></ul><ul><ul><ul><ul><li>Actual Guarantee Contract, etc., </li></ul></ul></ul></ul>
  16. 16. Media Audit <ul><li>TV Spot Performance Assessment Service </li></ul><ul><li>Cost benchmarking methodology based on our proprietary pool of data </li></ul>Expenditure Index Quality Index Zoning Index Actual GRP = × M-Index (Cost benchmark)
  17. 17. Media Audit <ul><li>TV Spot Performance Assessment Service </li></ul><ul><ul><li>Have experiences over 50 clients/brands </li></ul></ul><ul><ul><li>Generally improve 5-10% of target cost efficiency </li></ul></ul><ul><ul><li>GRP achievement of 95% at least and possible to achieve more than 100% </li></ul></ul><ul><ul><li>Improve and sustain conversion ratio by balancing reach/audience quality elements </li></ul></ul><ul><ul><li>Endorse a transparent media buying environment </li></ul></ul>
  18. 18. Background <ul><li>1995: Founded SPI as Japan’s first media specialist </li></ul><ul><ul><li>Started an only professional media (TV) audit service in Japan </li></ul></ul><ul><ul><li>Diversified into </li></ul></ul><ul><ul><ul><li>Communications planning </li></ul></ul></ul><ul><ul><ul><li>Analytics </li></ul></ul></ul><ul><ul><ul><li>Marketing Modeling </li></ul></ul></ul><ul><li>1999: SPI joined Japan Advertisers Association (JAA) for its unique proposition </li></ul><ul><li>2008: Founded METRICS as a subsidiary of SPI, Japan’s first and only company to focus media and marketing communication auditing services </li></ul><ul><li>Separated as separate company to give arm’s length consulting. </li></ul>
  19. 19. Helping bring fair trade to Japan’s marketing communications industry For more information email or call Blair Currie, Representative Director for SPI and Metrics at [email_address] or call at +8190 7824 0396