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### Media concepts

1. 1. Media Terminologies: Definition & Calculation By Prof Indrani Sen SIMC 20/7/11
2. 2. Media Concepts <ul><li>Universe </li></ul><ul><li>Reach </li></ul><ul><li>Maximum Possible Reach </li></ul><ul><li>Readership </li></ul><ul><li>Viewership </li></ul><ul><li>TRP/ TVR </li></ul><ul><li>GRP </li></ul><ul><li>CPRP </li></ul><ul><li>CPT </li></ul><ul><li>Gross Reach </li></ul><ul><li>Net Reach </li></ul><ul><li>OTS </li></ul><ul><li>Effective Frequency </li></ul><ul><li>Effective Reach </li></ul><ul><li>Share of Voice </li></ul><ul><li>Share of Spends </li></ul><ul><li>Media Weights </li></ul>
3. 3. The universe <ul><li>The Total/Actual number of people in a defined target audience </li></ul>
4. 4. MPR Maximum Possible Reach <ul><li>Maximum % of Target Audience reached by any particular medium </li></ul>
5. 5. Print Reach <ul><li>Readership of a particular Press Vehicle as % of Target Audience who read any print vehicle </li></ul><ul><li>Or </li></ul><ul><li>% of Target Audience/ Universe reached by any particular print vehicle </li></ul>
6. 6. Gross Reach <ul><li>It is mathematically equal to the number of insertions/ spots per vehicle multiplied by the reach in numbers of that particular vehicle </li></ul><ul><li>Hence this may count each individual more than once </li></ul>
7. 7. Net Reach <ul><li>It is equal to the total number of individuals reached after eliminating duplication </li></ul>
8. 8. OTS : Opportunities To See <ul><li>Equals Gross Reach in numbers divided by Net Reach Reach in numbers </li></ul><ul><li>OTS = Gross Reach (‘000s) </li></ul><ul><li> Net Reach (‘000s) </li></ul>
9. 9. Gross Reach, Net Reach, OTS Wwomens Era (1) Femina (1) 20,000 20,000 30,000 Gross Reach in numbers = ? Net Reach = ? OTS = ?
10. 10. Gross Reach, Net Reach, OTS Wwomens Era (1) Femina (1) 20,000 20,000 30,000 Gross Reach in numbers = 90,000 Net Reach = 40,000 + 50,000 - 20,000 = 70,000 OTS = 90,000 / 70,000 = 1.29
11. 11. CPT <ul><li>Cost per every thousand Target Audience reached </li></ul>
12. 12. TV Reach / Coverage <ul><li>Number of individuals from the universe who are exposed to the medium or vehicle for atleast 1 minute </li></ul><ul><ul><li>TV reach </li></ul></ul><ul><ul><li>Channel reach </li></ul></ul><ul><ul><li>Programme reach </li></ul></ul><ul><li>It is normally expressed in % terms </li></ul><ul><li>n+ reach is the % of the universe who have seen the ad n or more times </li></ul>
13. 13. Calculation of TV Reach <ul><li>Universe: 10 individuals </li></ul><ul><li>For a single episode of Kyun ki Saas…, if out of the above 10 people 6 saw atleast 1 minute of the programme then, </li></ul><ul><ul><li>Reach is 6 out of 10 = 60% </li></ul></ul>
14. 14. Variations of the TV Reach <ul><li>Gross Reach </li></ul><ul><li>Net Reach </li></ul><ul><li>Cumulative Reach </li></ul>
15. 15. Gross Reach in TV <ul><li>Gross Reach = Summation of all audiences who have been exposed to the vehicle </li></ul><ul><li>Week 1 : 1000 </li></ul><ul><li>Week 2 : 2000 </li></ul><ul><li>Week 3 : 1500 </li></ul><ul><li>Week 4 : 1200 </li></ul><ul><li>Hence, Gross Reach = ? </li></ul><ul><li>1000+2000+1500+1200=5700 </li></ul>
16. 16. Net Reach in TV <ul><li>Week 1 : 1000 -- 1000 </li></ul><ul><li>Week 2 : 2000 (300) 1700 </li></ul><ul><li>Week 3 : 1500 (900) 600 </li></ul><ul><li>Week 4 : 1200 (1000) 200 </li></ul>1000+1700+600+200 = 3500 Hence, Net Reach of 4 weeks= ? Net Reach Duplication Gross Reach
17. 17. Cumulative Net Reach <ul><li>Principle : Audiences accumulate over time </li></ul><ul><li>The number of individuals within the TG who are exposed to the medium/vehicle over a certain period of time </li></ul>
18. 18. Calculation of the Net Reach build-up <ul><li>Week 1 : 1000 -- 1000 </li></ul><ul><li>Week 2 : 2000 (300) 2700 </li></ul><ul><li>Week 3 : 1500 (900) 3300 </li></ul><ul><li>Week 4 : 1200 (1000) 3500 </li></ul>Cumulative reach over 4 weeks Net Reach build up Duplication Gross Reach
19. 19. Opportunities to see in TV <ul><li>OTS describes the number of times on an average a viewer sees the ad </li></ul>
20. 20. Calculation of Average OTS Spot 1 KBC Spot 2 Heena Spot 3 News 50% see ad in total. 10% see ad twice. AOTS = Gross reach / Net reach = 60 / 50 =1.2 Average O.T.S Reach 30% Reach 20% Reach 10%
21. 21. Average Time Spent <ul><li>Principle : Different individuals within the TG spend different amount of time on a vehicle </li></ul><ul><li>Two concepts : </li></ul><ul><li>Average Time Spent Per Universe </li></ul><ul><li>Average Time Spent Per Viewer </li></ul>
22. 22. Average Time Spent Per Viewer <ul><li>Total time spent by all viewers / Reach </li></ul>Average Time Spent Per Universe <ul><li>Takes into account both viewers and non-viewers </li></ul><ul><li>Principle : Different vehicles have differing reach </li></ul><ul><ul><li>Total Time Spent / Universe </li></ul></ul>
23. 23. Universe : 11089000 Calculation Explained Average Minutes (viewer) =Total Viewing Time / Reach = (1056 x 11089000) / 10314000= 1135 Average minutes ( universe) = Total Viewing Time / Universe can be calculated similarly
24. 24. <ul><li>Is there a term that encompasses both Reach and Time Spent ? </li></ul><ul><li>Yes, it is TVR or TV Viewrership Rating </li></ul>
25. 25. TRP has been replaced by TVR <ul><li>TRP: % of Target Audience in a particular market who have viewed any particular episode of a TV programme (0nly Reach) </li></ul><ul><li>TVR: % of Target Audience in a particular market who have viewed any particular episode of a TV programme for at least one minute </li></ul><ul><li>(Reach x Time Spent) </li></ul>
26. 26. TVRs v/s Reach
27. 27. TVRs v/s Reach <ul><li>People who saw the programme for at least 1 continuous minute : </li></ul><ul><li>A + B+D+E =4 </li></ul><ul><li>Therefore, Reach=4/5 </li></ul><ul><li>Reach=80% </li></ul>
28. 28. TVRs v/s Reach
29. 29. TVR vs Reach Person Minutes Viewed Minutes Available A 3 5 B 1 5 C 0 5 D 2 5 E 5 5 5 (i.e., A+B+C+D+E) x 100 TVR = On an average 44% of universe of the TG saw the entire time band of 5 minutes TVRs : (3/5)+(1/5)+(0/5)+(2/5)+(5/5)
30. 30. TVRs v/s Reach
31. 31. The other way of looking at TVR Minute No. of viewers Total viewers 1 2 5 2 3 5 3 3 5 4 1 5 5 2 5 5 (mins ) x 100 TVR = 44% of universe of the TG saw the programme on an average per minute TVRs : (2/5)+(3/5)+(3/5)+(1/5)+(2/5)
32. 32. Difference Between Reach & TVR <ul><li>Reach: Just a count of no. of people meeting the criterion of viewership threshold (e.g. 1 min) </li></ul><ul><li>Rating : Count of no. of people meeting the viewership threshold criterion </li></ul><ul><ul><ul><ul><ul><li> PLUS </li></ul></ul></ul></ul></ul><ul><ul><li>Proportion of the total time consumed </li></ul></ul><ul><ul><li>OR </li></ul></ul><ul><ul><li>Count of people watching a programme / channel on an average per minute </li></ul></ul>
33. 33. Why look at both Reach & TVR ? <ul><li>If Reach is much higher than TVR ? </li></ul><ul><ul><li>It implies that viewers are watching the programme but switching channels more frequently……….seen in case of movies </li></ul></ul><ul><li>If programme TVR is close to Reach ? </li></ul><ul><ul><li>It shows higher viewership loyalty………seen in case of premiere serials like Kyunki Saas….. </li></ul></ul>
34. 34. What is Channel Share ? <ul><li>What percentage of total viewing time a particular channel is watched </li></ul><ul><li>Indicates how much a channel is watched </li></ul><ul><li>Higher the channel share greater the probability of commercials been seen in the channel </li></ul>
35. 35. Revisiting TVR !! Person Minutes Viewed Minutes Available A 3 5 B 1 5 C 0 5 D 2 5 E 5 5 5 (i.e., A+B+C+D+E) x 100 TVR = 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)
36. 36. The other way of looking at channel share <ul><li>We have seen TVR of a channel = </li></ul><ul><li>Total viewing time / ( Total universe X Total duration ) </li></ul><ul><li>TVR of Star Plus = S </li></ul><ul><li>TVR of all channels = T </li></ul><ul><li>Channel Share of Star Plus = S / T </li></ul><ul><li>= Total viewing time of Star Plus / Total viewing time of all channels </li></ul><ul><li>( total universe & total duration being common factor cancels out ) </li></ul><ul><li>Channel Share also indicator of how TVR of Star Plus compares with respect to total TVR of all channels </li></ul>
37. 37. Gross Rating Points (GRPs) <ul><li>The sum of all ratings (TVR) achieved in a campaign </li></ul><ul><li>GRP levels are generally measured and reported on a 4 week basis </li></ul><ul><li>It is a measure of the media plan’s thrust </li></ul>
38. 38. <ul><li>Our commercial appeared in the following programmes: </li></ul><ul><li>Programme Rating </li></ul><ul><li>X 32 </li></ul><ul><li>Y 21 </li></ul><ul><li>Z 18 </li></ul><ul><li>A 24 </li></ul><ul><li>B 15 </li></ul><ul><li> 110 </li></ul>Gross Rating Points (GRPs)
39. 39. Normalization of GRP <ul><li>Usually done for 30 seconds or 10 seconds </li></ul><ul><li>The aim here is to find out, if my total GRP with 10 six-second spots is xxx, what will be the GRP equivalence of spots of 30 second duration </li></ul><ul><li>Just a reminder, that the reach is defined at 1 minute level and hence a TVR will be read as audiences on an average that are available for that MINUTE </li></ul><ul><ul><li>i.e., reach weighted by the no. of seconds spent by viewers that minute </li></ul></ul>
40. 40. Normalization <ul><li> TVR Dur (Secs) </li></ul><ul><li>0.32 60 </li></ul><ul><li>1.21 60 </li></ul><ul><li>0.23 60 </li></ul><ul><li>0.5 60 </li></ul><ul><li>0.5 60 </li></ul><ul><li>0.32 60 </li></ul><ul><li>1.21 60 </li></ul><ul><li>0.23 60 </li></ul><ul><li>0.5 60 </li></ul><ul><li>0.5 60 </li></ul><ul><li> GRP = 5.52 for the above 10 spots which represent 10 different minutes </li></ul>
41. 41. Normalization <ul><li>Hence in every minute in which these 60 seconders appeared, there were on an average audiences of 5.52/10 = 0.552 for the whole minute for each spot ie. GRP per spot is 0.552 </li></ul><ul><li>To find out if there were only 30 second spots, the entire duration of all the spots will have to be summed and divided by 30 to get the number of spots, hence 60/30=2 spots in the above case </li></ul><ul><li>Since we already know that the per spot GRP is 0.552, multiply 0.552 by 2 (no.of spots) to find out the GRP for 30 seconders = 0.552*2 = 1.10 </li></ul>
42. 42. CPRP (Cost per Ratings Point) CPRP = Cost / GRP ( how cost effective is the buy to generate GRP ) CPT (Cost per 000s Audience) CPT = Cost / (TVR * Universe in 000s) ( how cost effective is the buy in reaching out to more viewers )
43. 43. Effective Frequency <ul><li>Number of times an individual needs to be exposed to a communication in a fixed time frame for him to react in a desired way </li></ul><ul><li>Example : Effective frequency of 5+ means reaching an individual at least 5 times </li></ul>
44. 44. Factors determining effective frequency <ul><li>Proposition - New/Old </li></ul><ul><li>Product life cycles stage </li></ul><ul><li>Message - Simple/Complex </li></ul><ul><li>Audience - Receptive/Non-receptive </li></ul><ul><li>Attitude - Reinforce/Change </li></ul><ul><li>Brand image in relation to competition - Strong/Weak </li></ul>
45. 45. Factors determining effective frequency <ul><li>Creatives - Existing/New </li></ul><ul><li>Market clutter - Low/High </li></ul><ul><li>Category clutter - Low/High </li></ul><ul><li>Mixed-media support - Low/High </li></ul><ul><li>Brand Consumption: Low/High </li></ul><ul><li>Brand value perception: Low/High </li></ul><ul><li>Brand switch: Low/High </li></ul><ul><li>Residual awareness: Low/High </li></ul><ul><li>Awareness - Low/High </li></ul><ul><li>Marketing imperative - Defend/Attack </li></ul><ul><li>Brand share - Low/High </li></ul>
46. 46. Effective Reach <ul><li>% of Target Audience who have been reached at least Effective Frequency number of times </li></ul><ul><li>Example : If 50% have been reached at least 5 times, then 50% is the Effective Reach at 5+ </li></ul>
47. 47. Typical Reach Distribution Effective Frequency % Rch
48. 48. SOV : Share of Voice <ul><li>GRPs for a particular brand expressed as a percentage of the GRP for the defined category </li></ul><ul><li>Example : GRPs for Coke in May = 1000 </li></ul><ul><li>GRPs for the Soft Drink Category in May = 4000 </li></ul><ul><li>Hence SOV for Coke = 1000 / 4000 = 25% </li></ul>
49. 49. SOS : Share of Spends <ul><li>Spends for a particular brand expressed as a percentage of the Spends for the defined category </li></ul><ul><li>Example : Spends for Coke in May = Rs 3 Crores </li></ul><ul><li> Spends for the Soft Drink Category in May = Rs10 cr Hence SOS for Coke = 3 / 10 =30 % </li></ul>
50. 50. Media Weight Setting <ul><li>Primary role of the media function </li></ul><ul><li>Reach specific number of people specific number of times </li></ul>Number of people refers to “How many ?” Number of times refers to “With what impact ?” Basic constituents of Media Weights
51. 51. Thank You.