Mp Lt5

Media Planning
Lecture 6

Sunday, 27 December 2009

Advanced
Measurements and
Calculations


Various Concepts of
Audience
Measurements


Base Vs Audience
Number


• A base is a demographic group, such as
women or men aged 35-49.

• Audience number, e.g. no. of readers of
Next Magazine, is the no. of exposure of
the vehicle, which depends on how the
media vehicle measures.

• Different vehicles may have same target
base but different audience numbers.


Circulation Vs
Audience Number


• Circulation is the number of distribution
of a publication, which does not tell any
about the demographics of the audience,
e.g. age, sex, household income, education,
etc.

• It is always less than the audience number
because one copy of the publication can be
viewed by several readers.


• Audit Bureau of Circulations (ABC) (http://
www.hkabc.com.hk/en/index.htm) is a non-
proﬁt, cooperative association which audits
and reports the circulations of world-wide
publications at regular intervals.


• Audit Bureau of Circulations (ABC) (http://
www.hkabc.com.hk/en/index.htm) is a non-
proﬁt, cooperative association which audits
and reports the circulations of world-wide
publications at regular intervals.

• It is widely accepted throughout the
advertising agency. Again, it does not tell
any about demographic data.


• Media planners are more interested in the
number of demographic targets who will
buy the product than any above-mentioned
measures, i.e. base, circulation or audience
number.

MEDIA PLANNER
TA
(Demographic Data of TA)


Advertising Exposure
Vs Vehicle Exposure
(Audience Number)


• Advertising exposure, or advertising page
exposure, is the number of readers actually
saw the advertisement.


• It is the utmost important ( ) data
for media planners. However, like vehicle
exposure, it may not be accurately
measured and readily available as
circulation.

...
predict
~!! ...


• As a result, advertising exposure, vehicle
exposure and circulation are used
complementarily ( ) when the related
information is required.


Audience Accumulation


• Media vehicle or advertisement cannot be
exposed to ALL audiences at one time.

• Audience accumulation is the buildup of
total audiences over different media
vehicles for an advertisement over time,
usually in a month.

~!!!

advertising accumulation...


in Magazines


• When the ad is placed in successive
( ) issues of the same magazine

• When the ad is placed in the same
month’s issue of different magazines

• Pass along the magazine to as many
readers as possible


• Primary readers are those who either have
purchased the magazine themselves or are
members of the purchaser’s household.

• Secondary, or pass-along, readers are those
not in the purchaser’s household. They can
be the purchaser’s friends, or those reading
the publication in clinics, hair salon or the
airplanes, i.e. out-of-home readers.


• In-home reader, whether a primary or pass-
along reader, reads more pages of a
publication and spends more time reading
than the person outside the home.


in Broadcast


• While a program is being broadcast for a
period, audiences are tuning in.

• When the commercial is aired with same
program within a four-week period

• When the commercial is aired with
different programs targeting the same
audiences within the same four-week
period.


• For broadcast media, there is no pass-along
audience as with magazines.

...
Pass
...



• Time is a major element in broadcast
accumulation.


tune-in
• For broadcast media, there is no~~
pass-along

accumulation.

• Research shows that there are more tune-
in audiences than tune-out audience for a
program.



accumulation.

• Research shows that there are more tune-
in audiences than tune-out audience for a
program.

• Therefore, broadcast audiences can be
accumulated.


Reach Vs Frequency


• The number of different people who see an
ad at least once is called reach.

• Some people who are reached will see an
ad only once; others will see it many times.
The number of times the average person
sees the ad is called frequency.


Coverage


• Coverage is the number or percentage of
the population or households of the target
market that is exposed to the media.

• It measures the degree of delivery that a
media vehicle can reach the target
audience.
TA
...


Newspaper Coverage


• Newspaper coverage is the number of
copies circulated (i.e. circulation) compared
to the number of households in the
circulation area.


• Suppose the average circulation of Apple
Daily is 360,000, the no. of household in
Hong Kong is 1.2 millions.

Newspaper Coverage
= 360,000 / 1,200,000
= 30%


Magazine Coverage


• Magazine Coverage is the number of
audience compared to the population size
of the target market (segment).


TV and Radio Coverage


• It is the number or percentage of homes
with radio or televisions sets within the
signal area of a given station.


• Whether a household choose to tune in
depends on:


• The programming of the station (i.e. whether it is
interesting enough to attract them)

...
~~!! ...


• The programming of the station (i.e. whether it is
interesting enough to attract them)

• The power of the station (more powerful stations can
cover more homes than weaker stations)

• The height of a station’s antenna ( ) and the pull of
the home’s antenna which affect reception of signals

• The number and nature of obstructions ( ) that
might prevent the broadcast signal from being received,
such as mountains, tall buildings, or bridges.

• The service area of cable systems that carry a station’s
signal

Cable TV Coverage


• Cable TV does not share the signal problems
as mentioned above for ordinary TV or
radio station. Local examples of Cable TV
companies include Cable TV by Wharf,
NOW TV by PCCW. International examples
include ESPN and CNN.

• Cable TV coverage is the number or
percentage of homes that are installed with
the cable network.


Internet Coverage


• It is the percentage of a segment (usually
adults) that can access the Internet at
home or work.

• On the other hand, websites would like to
express their audience as a percent of
those active Internet users.


Outdoor Advertising
Coverage


• It is the percentage of
the population that
passes one or more of
the outdoor media
(depends on whether a
particular location or
outdoor advertising as
a whole is studied) in a
given period of time.


• One of the
characteristics of
outdoor advertising
is that it has very
high coverage
because the
advertisement is not
time-dependent with
the advertising
period (that’s unlike
publication or TV
program).

IMPORTANT


• While coverage for print media always
underestimate the audience numbers,
coverage for broadcast media, internet or
outdoor advertising tends to
overestimate the numbers.

• It is because there are secondary (pass-
along) readers for magazine or newspaper,
while some homes which can access to the
broadcast media or internet do not tune-in
the stations.


Composition Vs
Coverage


• Composition is the percentage of the audience
number of the publication that is within the target
market.

• For example, Oriental Daily News covers 50% of the
HK population aged 15-44 (Coverage = 50%), but
only 33% of its audience number is within age 15-44.
(Composition = 33%).

• Coverage is based on population of the universe,
while composition is based on audience number of
the publication.


• High-coverage publication can certainly
reach the target, but a signiﬁcant part of the
budget will be wasted on people who have no
interest in the product.

High-Coverage
...
Coverage

...

Next Magazine


• On the other hand, high-composition
magazine minimizes the waste but risks missing
people who buy the product but do not happen to
be readers of the publication.

• Planners typically use a mixture of high-coverage
and high-composition publications.

High-Composition

Coverage

TA only...


Broadcast Rating
(Audience Rating or
Rating)


• The rating estimates the audience that has
tune-in a program during a speciﬁc time
period. It is commonly expressed in
number of rating point, each of which
represents 1% of the household that can
receive the broadcast.


Household Using
Television (HUT)


• HUT represents the total percentage of
homes in a market that are watching
television at a given point in time.
Television viewing is affected by living
habits:


• In the morning, tune-in (HUT) tends to be
low, because many men and women at
work and children at school. Viewers are
primarily retirees, unemployed workers, and
stay-at-home parents with small children


• In the afternoon, HUT rises dramatically
because children return home form school


• In the evening, HUT rises to maximum
because adults return home from work


• At night, HUT drops sharply.


HUT
...

HUT~~


During summer, HUT rises a little bit in the
morning session because more students stay at
home.

But it drops in the evening session because more
adults go out for vacation trips.

If expressed in points, HUT is the sum of the
ratings of all programs broadcast within a given
time.

Gross Rating Points
(GRPs)
( )


Deﬁnition


• It is the sum of individual ratings
(percentage) of media vehicles in a media
plan, disregarding the duplication of
audience.

GRP

GRP
40
3 1
GRP ~!!!


GRPs in Broadcast
Media
( )


• The GRPs concept originates from broadcast
media, and it is best illustrated by an example:

• In a week, nine 30-sec TV commercials will be
broadcast at different time-slots. Then,


GRPs in Other Media
( )


• The GRPs concept has been extended to
other media such as magazine, newspapers,
and outdoor.


Gross Impressions
( )


• It is the sum of individual audience size of
media vehicles in a media plan, disregarding
the duplication of audience.

GRP x (Audience base /
Universe) x 100
= (Gross Impression)


Gross Impression for
Print Media


Reach ( )


• It is the number or percentage of targets
that will see the ad at least once over the
advertising period.

Reach
3
1 3


Reach and GRPs


• Unlike GRPs, reach is an unduplicated
number ( )–
each person is counted only once.

• Therefore, reach (if expressed in
percentage) can never exceed
100%, while GRPs can continue
building without limit.


Why audience is
counted only once?


1. Although it is controversial ( ) among
media planners to argue on the number of
advertising exposure that can make the ad
effective, there is a signiﬁcant difference
between being exposed and not being
exposed.

2. Radio and Television would parallel the
audience reach of a monthly magazine.


Reach
=
(4
/
10)
X
100
=
40


GRPs
=
(40
+
30
+
30
+
40)
=
140


Reach
=
(Number
of

/
Total
Viewers)
X
100
=
(7
/
10)
X
100
=
70


Frequency
=


Frequency
=

7 Viewers~!!!


Frequency
=
14
/
7
=
2

7 Viewers~!!!


Kinds of Reach


1. The four-week reach of an individual
vehicle, such as a television program

2. More commonly, the combined reach of
four or ﬁve vehicles that would be bought
as a single package in an ad campaign.

(Remember: Reach is a measure of vehicle
exposure, not advertising exposure.)


How Reach
Builds over Time


• When an ad is ﬁrst exposed, it accumulates
( ) large number of target audience.

• When the no. of exposure
increases, the number of
accumulated audience also
increases but at a decreasing rate.

• An example for a TV program is shown as
follows:


GRPs

(Reach)

Reach
Reach
~


Frequency ( )


Frequency ( )
• Frequency measures the average
number of times that the audiences are
exposed over a period to an ad campaign.

Reach

Frequency

(Reach)


Calculation


Frequency = GRPs / Reach (%)


Frequency = Total Duplicated Audience / Reach (number)

(Total Duplicated Audience = Gross Impression)

Reach
x
Frequency
=
GPRs

GRP

Reach

Frequency


For Example


GRPs = 80.1; Reach = 38 (%),
then

Frequency = 80.1/38
= 2.1 (times)


Frequency Distribution


Frequency Distribution

• The above calculation for frequency is only
an average number.
• In the following table, the number exposed
at any frequency is unduplicated,
meaning that these people are counted
only once.


Frequency = Total Duplicated Audience / Reach (number)

(Total Duplicated Audience = Gross Impression)


Relationship of Reach
and Frequency


GRPs = Reach x Frequency


Reach and Frequency
• If we increase GRPs, reach and frequency will
both increases but at different rates,
depending on which particular plan is being
used. ( GRPs Reach Frequency

plan)
• For example, some tends to increase the
reach, while some contributes to increase in
frequency.


Reach and Frequency
• Plan A delivers more audience members at 1
or 2 exposure level, but for 3 exposure level,
Plan B is superior.
• Plan B reaches more persons than does Plan
A at 3+ exposure level. If the advertising
effort requires higher frequency, then Plan B
is the obvious choice. About 75% of the
target will see the commercial at least once,
while 40% will see it 3 or more times.


• For any plan, reach rises more slowly when
GRPs keeps increasing. Meanwhile,
frequency increases and, after certain level,
rises more rapidly because reach increases
slower.
(Reach Frequency
-
)


Effective Frequency
( )


Effective Frequency
( )
• Effective frequency is deﬁned as the
amount of frequency (or repetition) the
planner judges to be necessary for
advertisements to be effective in
communicating.
• It is merely ( ) a judgment.


• One exposure of an advertisement to a
target consumer group (within a purchase
cycle) has little or no effect.

( ... )


• Because one exposure is usually ineffective,
the main thrust ( ) of media planning
should be on emphasizing frequency rather
than reach. (
)


vodafone

• Most of the research studies suggested that
two exposures within a purchase cycle are
an effective threshold ( ) level. (
)


• Three exposures within a purchase cycle,
however, are felt to be optimal. (
)


• After three exposures within a purchasing
cycle, advertising becomes more effective
as frequency is increased, but at a
decreasing rate. (
)


• Wear-out ( ) of an advertising campaign
is not caused by too much frequency. It is
caused by copy and content problems.


• Generally, small and less-known brands will
beneﬁt most from increased frequency. (

) Larger, well-known brands might or
might not be helped by increasing
frequency, depending on how close they are
to advertising saturation levels (
).


• Each brand might require a different level of
frequency of exposure (
). One cannot generalize from
a given brand’s experiences to some other
brand (
). Specialized ( ) research
is required to ﬁnd the unique ( )
frequency level for a brand


heineken

• Two brands spending on the same amount
of money for advertising can have different
responses to their frequencies. (

)


Mp Lt5

More Related Content

Viewers also liked

Similar to Mp Lt5

More from jackin

Mp Lt5