Media Principles - Context to Indian Market


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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 Principles - Context to Indian Market

  1. 1. Media Basics (Caveat – This ppt was built in 2004, but the basics and theories of Media plan, are timeless)
  2. 2. Part I : Media Terminology <ul><ul><li>TG & Universe </li></ul></ul><ul><ul><li>Reach, TVR & GRPs </li></ul></ul><ul><ul><li>Freq. Distribution & Effective Reach </li></ul></ul><ul><ul><li>Duplication & Avg, Frequency </li></ul></ul><ul><ul><li>Cost per GRP </li></ul></ul><ul><ul><li>Share of Voice </li></ul></ul><ul><ul><li>Discrete reach </li></ul></ul><ul><ul><li>Selectivity </li></ul></ul>
  3. 3. Part II : Media Planning Concepts <ul><ul><li>C&S penetration </li></ul></ul><ul><ul><li>GRP Projections </li></ul></ul><ul><ul><li>Technique to apportion spends </li></ul></ul><ul><ul><li>Benchmarking </li></ul></ul><ul><ul><li>The optimization problem </li></ul></ul><ul><ul><li>Channel buys </li></ul></ul><ul><ul><li>Duplication analysis </li></ul></ul><ul><ul><li>Daypart Viewership & Channel Shares </li></ul></ul><ul><ul><li>Generic Strategies </li></ul></ul><ul><ul><li>Recency & Frequency </li></ul></ul><ul><ul><li>Value Additions </li></ul></ul><ul><ul><li>Scheduling </li></ul></ul><ul><ul><li>EF Estimator </li></ul></ul>
  4. 4. Part I : Media Terminology
  5. 5. Introductory Terms <ul><li>TARGET AUDIENCE </li></ul><ul><ul><li>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 </li></ul></ul><ul><li>UNIVERSE </li></ul><ul><ul><li>Definition : The actual number of individuals within the defined target audience. </li></ul></ul>
  6. 6. Reach Definition : The percentage of the target audience who saw the commercial at least once during a given campaign period. In Practice : Programme Friends Dynasty Movie Sport News Rating 32 21 18 24 15 110 GRPs Unduplicated Reach 32 11 9 7 4 63% Cumulative Reach 32 43 52 59 63 63% Reach
  7. 7. TVR v/s Reach Individuals Minutes People that saw the programme for atleast 1 minute : A + B+D+E =4 Therefore, Reach=4/5 Reach=80%
  8. 8. TVR v/s Reach 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)
  9. 9. 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 Rating Friends 32% Dynasty 21% Movie 18% Sport 24% News 15% 110% - 110 GRPs achieved (or 110% of defined universe)
  10. 10. GRPs GRPs =  (TRPs in a media schedule) GRPs =  (S x TRPs) where S is #spots GRPs = Reach x AOTS
  11. 11. Normalising GRPs <ul><li>How do we evaluate plans/ buying across different brands: </li></ul><ul><ul><li>Eg. Brand A budget INR Rs 1mn- 200 GRPs with a 20 sec commercial </li></ul></ul><ul><ul><li>Brand B budget INR Rs 1.2 mn - 125 GRPs with a 30 second commercial </li></ul></ul><ul><ul><li>GRPs need to be normalized to the same duration in order to calculate CPGRP. </li></ul></ul><ul><ul><li>Normalising A -1000000/(200*20/10)- CPGRP= 2500 </li></ul></ul><ul><ul><li>Normalising B- 1200000/(125*30/10)- CPGRP 3200 </li></ul></ul><ul><li>The Brand A buy/plan is more efficient </li></ul>
  12. 12. Definition : The reach delivered at actual frequency levels. In Practice : Frequency Distribution Reach% Frequency Distribution
  13. 13. 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 Effective Reach
  14. 14. 1765 2852 103 836 148 Channel 1 ZEE Channel 2 Weekdays TG-Females, 25-34 Sec ABC <ul><li>Duplication- It is the number of people who view a set of channels for a given period of time. </li></ul><ul><li>Formula- Dup= Cum. Build- Unique cover </li></ul><ul><li>( Note- Duplication is calculated on a weekday/weekend basis due to the difference in programming.) </li></ul><ul><li>Cumulative Build- Build up of reach as the series progresses </li></ul><ul><li>It takes into account the duplication factor </li></ul>Duplication and Cumulative build
  15. 15. Plan 1 Plan 2 Why Reach . . . & why not GRPs ?
  16. 16. Plan 1 Plan 2 Why Reach . . . & why not GRPs ?
  17. 17. Plan 1 Costly 268 GRPs Only 8 spots Plan 2 Cheaper 270 GRPs A total of 18 spots But the most important element is that Plan-2 reaches out to 30% 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 ?
  18. 18. Average Frequency Definition : The number of times, on average, the audience reached sees the commercial during a given period. Formula : Average Frequency = Total GRPs ÷ Reach or GRPs = Reach x Average Frequency In Practice : 110 GRPs ÷ 63% Reach = 1.75 Average Frequency Therefore, 63% of the target audience will see the commercial on average 1.75 times during the given period.
  19. 19. reach reach AOTS 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)
  20. 20. 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)
  21. 21. <ul><li>Definition : The cost of buying one rating point. </li></ul><ul><li>Formula : Cost ÷ GRPs = Cost per GRP </li></ul><ul><li>In Practice : INR Rs.220,000 ÷ 55 GRPs = Rs.400 </li></ul><ul><li>cost per GRP </li></ul>Cost Per GRP ( “cost per point” )
  22. 22. Share of Voice ( SOV ) <ul><li>A measure of media weight distribution as a % of the total GRPs delivered by the category </li></ul><ul><li>A more reliable measure of relative weights because : </li></ul><ul><ul><li>measures a parameter that directly links media to TG </li></ul></ul><ul><ul><li>smooths out differences in media buying among brands in the category </li></ul></ul>
  23. 23. Discrete Reach vs Effective Reach Discrete Reach at 1 = % TA who saw the ad exactly once = 78
  24. 24. Maximizing at 3+
  25. 25. Other Terms <ul><li>Share of Spends:Brand spends/ Category spends *100 </li></ul><ul><li>Selectivity: The profile of a channel/ medium </li></ul><ul><ul><li>Formula= Total Reach in (000) of the channel or medium / reach in (000) of the same in the TG </li></ul></ul><ul><ul><li>Usually done on market basis, as viewing habits are different: eg. North West/ TN/ AP/ Karnataka/Kerala- viewing habits is the key factor. </li></ul></ul><ul><ul><li>Also, selectivity is done on a weekday/weekend basis. </li></ul></ul>
  26. 26. Reach Selectivity-North-West Weekdays TG-Females, 25-34 Sec AB
  27. 27. Part II : Media Planning Concepts
  28. 28. C&S penetration <ul><li>C&S penetration is many time used to understand channel mixes required </li></ul><ul><li>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 </li></ul>
  29. 29. GRP projections <ul><li>TAM does not provide GRPs for all the geographies across India </li></ul><ul><li>Projection factors are used to project GRP s from centres that are reported to the centres that are not </li></ul><ul><li>This helps get a feel of the media weights aligned across India </li></ul>
  30. 30. Technique to apportion spends <ul><li>A logical connection from GRP distributions across India </li></ul><ul><li>Enables us to gauge the amount of money spent on each market </li></ul><ul><li>Uses the principle of Gross Impressions rather than plain population size </li></ul><ul><li>GI = (GRP x TA size) /100 </li></ul><ul><li>The spends will be apportioned in accordance with the GI salience across the geographies </li></ul>
  31. 31. Benchmarking <ul><li>Benchmarking of effective frequencies </li></ul><ul><ul><li>Estimation of possible planning levels </li></ul></ul><ul><li>Benchmarking channel CPGRP s for buying </li></ul><ul><ul><li>For a particular programme mix, for a TA each channel will have a typical CPGRP </li></ul></ul><ul><ul><li>This will be used as benchmarks for negotiating </li></ul></ul>
  32. 32. The optimization problem <ul><li>Having defined EF objectives , do we go all out? </li></ul><ul><li>6+/60 % might be inefficient to achieve </li></ul><ul><li>Develop a method to estimate most efficient reach point to cut off at </li></ul>
  33. 33. Channel buys <ul><li>The amount of GRP s bought on a channel </li></ul><ul><li>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 </li></ul><ul><li>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 </li></ul>
  34. 34. Duplication analysis <ul><li>Application of set theory </li></ul><ul><li>Used in order to build upon outputs of optimizers </li></ul><ul><li>Leads to day part buying decisions </li></ul>
  35. 35. Daypart viewership and channel share <ul><li>Day part viewership traces the viewing habits of the target audience </li></ul><ul><li>Usually peaks are chosen to advertise </li></ul><ul><li>During the peak the channel shares are plotted in order to determine the dominant channel </li></ul><ul><li>Used for cross channel scheduling </li></ul>
  36. 36. Generic strategies <ul><li>Maximize reach </li></ul><ul><ul><li>Buy in channels/dayparts that increase the absolute number of people reached </li></ul></ul><ul><li>Maximize frequency </li></ul><ul><ul><li>Identify channels/dayparts that lead to maximization of duplication </li></ul></ul>
  37. 37. Recency and frequency <ul><li>Recency </li></ul><ul><ul><li>Maximize reach at 1+ at a weekly level </li></ul></ul><ul><ul><li>Optimize reach level to be attained </li></ul></ul><ul><li>Frequency </li></ul><ul><ul><li>EF levels set at anything above 1 </li></ul></ul><ul><ul><li>AOTS tends to be high in these kind of plans </li></ul></ul><ul><ul><li>Optimization is done on this also </li></ul></ul>
  38. 38. Value additions <ul><li>Free of cost innovative media presence subject to bulk spending </li></ul><ul><li>Innovative presence that are charged at a lower rate than standard advertising </li></ul>
  39. 39. Scheduling <ul><li>Continuity </li></ul><ul><li>Pulsing </li></ul><ul><li>Drip </li></ul>
  40. 40. EF estimator
  41. 41. Thank you