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Media Boot Camp: A Guide to Media Planning Professor Stacy Landreth 2005 General Concepts for Media Exposure is the basic unit of measurement used to determine whether a message is delivered; vehicle exposure. Five points of exposure: reach, frequency, gross impressions, gross rating points; targeted rating points. Reach = the number of different people or households exposed to a media vehicle within a given time period; usually a percentage. Frequency = the number of times a person or household is exposed to a media vehicle within a given time period; inversely related to reach. Effective frequency = number of repetitions to achieve desired effect Effective reach = the number of people who are reaching at the frequency level determined to be the most effective. “Effective” depends on the product, message, clutter, competition and the target audience. Gross impressions = occurs each time an individual or household is exposed to an ad. It is the total number of impressions obtained from a media schedule within a given time. Program A = 1 M reached x 4 ads = 4 M impressions\ Program B = 3 M reached x 4 ads = 12 M impressions Total gross impressions = 16 M impressions; gross impressions does not consider duplication Gross rating points = same as gross impressions; indicates the amount of exposure in a schedule expressed as a percentage (easier to use); TRP are the same. A rating point is the percentage of population tuned to a broadcast; REACH x FREQUENCY = TOTAL RATING POINTS Program A: 20 rating x 3 ads = 60 Program B: 15 rating x 3 ads = 45 Gross rating points = 105 Media schedules Continuous media schedule = same amount of money spent each period Flighted media schedule = various from period; sometimes there is no spending Pulsed media schedule = varies from period but at least some is scheduled always Seasonal media schedule Sites to check out for general media planning tools: Ephron Media www.ephrononmedia.com Advertising Media Internet Center www.amic.com The Media Planning Process Situation Media Media Media Media Budget Appendix Analysis Objectives Strategies Parameters Tactics & Flowchart Media Planning WHO Target Audience WHAT Media Mix WHERE Geographic Parameters WHEN Timing HOW Budget Situation Analysis The situation analysis is derived from the marketing plan & advertising plan. It covers the competitive situation, market share of firm and competitors, key differentiators, and the goals of the advertising plan. Much of this comes from truly understanding the firm (or client’s) business. Geographic analysis = physical area being targeted in a plan. This section can include: history of area, major industry, transit/roadways, terrain and climate. Tools to use: maps, county maps (SRDS), census, gale directories, internet sources Demographic analysis = information on the people of the area. This section can include: population, birth and death trends, income, education, purchasing indices, and employment. Tools to use: CCAC (census information), census, MRI, Simmons, Scarborough, Claritas and internet Media analysis = identifies what type of advertising vehicles are available in a target geographic area, costs and coverage. Tools to use: SRDS, Gale Directories, Internet, Local chambers of commerce, publicity guides etc. See Research Tools for ideas on where to find this information Media Objectives Media Objectives is what the plan will aim to accomplish. These are derived from the marketing objectives, the advertising or communication objectives. Media Strategies This is an overview of how the plan will achieve the objectives. These are detailed in the media parameters. It includes discussions of the following Type of media selected Strategy for allocating the media budget to type of media and/or specific vehicles Ranking of primary and secondary markets Message frequency and reach levels Criteria used for selecting and scheduling media. Media Parameters The Target Audience = this includes a demographic and psychographic profile; include sex, age, employment status, occupation, household income, marital status, number of children, geographic region and county size. o Research: Simmons, Mediamark, VALS Media Timing & Seasonality = this includes any timing issues, seasonality issues, any competitive issues, and availability of media; include start and finish dates (flight dates). o Research: This is an area where the planner can be creative with several types of research Competitive Spending = this is an analysis of competitive spending o Research: Competitive Media Research (CMR) Geography = this is an analysis of areas to concentrate on (national, regional, DMA/Metro, Specific Counties, Zip Codes) o Research: Budget = this is the budget from the client – the overall budget (annual, campaign, quarterly) Media Selection = media vehicles, cost efficiencies, reach, frequency, geography, static v motion, visual v audio, response capabilities, media intrusiveness and added media value. Also include stations, publications information. o Research: The planner can create indices based on the research (e.g. Brand Development Index, media spending, sales); and all media specific tools (e.g. SRDS – see chart). Media Tactics Tactics include: Type of media selected and rationale Geography GRPS/TRPS Frequency/number of inserts or spots Specific programs, dayparts, magazines etc. Budget & Flowchart It is important to include a budget breakdown (percentage of budget in TV, radio) and a specific breakdown (amount of money spent in a particular magazine). The flowchart is a calendar of media – it can include the recommended media, scheduled insertions by week or month, total cost per publication or station and total media costs. A monthly breakdown of costs can also be included on this flow chart. Types of Media Television Advantages of Television Disadvantages of Television Use TV for reach – to get a lot of people both geographically and Pricey – both in terms in placement and production demographically Can have some wasted coverage especially of the target market is Very high impact narrow Provides immediate reach Television can be purchased as (1) network (e.g. national programs that air everywhere), (2) spot (e.g. local ads on network channels). Cable television is also an option and good for building frequency. Usually you purchase cable in various regions or locales due to the coverage of different cable systems. NOTE: When buying cable (e.g. Comcast), understand that satellite viewers do not see these ads. Satellite ads are national or national direct response. So it is important to check cable coverage. Satellite viewers = 15% of population; cable viewers = 75% of population. In general, satellite coverage is increasing and cable coverage is decreasing. Nielsen surveys the television viewership levels in a given market. For all markets, this survey is conducted four times a year (November, February, May and July). In the major markets, there are three more surveys (October, January and March). In some markets, it is possible to get overnights. When planning the GRP levels, it is important to have an understanding of the costs in order to calculate cost per point. First find out the cost of the program and calculate the cost per point. Second, back this into an idea of the GRPS which is how the planner will base the overall percentage Terminology: o Rating = the percent of population viewing a program (there is also a different rating for various demographics – 18-49) o Share = the percent of TV usage attributable to a particular program (the percent of people watching the show) o PUT/HUT = (people using television/households using television) percentage of persons or households using television at a particular time o Share x PUT = Rating o TRP/GRP = (target rating point/gross rating point) o CPP = (cost per point) the cost of reaching 1% of a target demographic; used to evaluate a program’s cost efficiency. YOU CANNOT COMPARE ACROSS MARKETS DUE TO VARYING PRICES OF MEDIA. (Use CPM to compare across markets). o Spot cost x rating = CPP. Hints to remember: o First and third quarter buys are usually more efficient. Prime time is not terrible in the summer due to reruns. If you must plan for reruns, choose comedies because they rerun better than dramas. Fall and Winter are fairly good in terms of viewers. Watch for seasonal spikes (e.g. snowbirds in Florida will affect viewership). o TIVO will impact the :30 spot (Nielsen is conducting a usage study) o Rule of thumb – 2 frequency at 70% reach = 140 grps Dayparts Daypart Coverage Eastern/Pacific Central Early Morning M-F 6 am – 9 am 6 am – 9 am Daytime M-F 9 am – 4 pm 9 am – 3 pm Early Fringe M-F 4 pm – 7 pm 3 pm – 6:30 pm Early News M-F 5 pm – 7 pm 5 pm – 6:30 pm Access M-Sa 7 pm – 8 pm 6:30 pm – 7 pm Prime M-Sa 8 pm – 11 pm 7 pm – 10 pm Su 7 pm – 11 pm 6 pm – 10 pm Late News M-Su 11 pm – 11:35 pm 10 pm – 10:35 pm Late Fringe M-Su 11:35 pm – cc 10:35 – cc Sports Sa-Su All All Upgrades (if the station needs to move your original buy, this is where they can move you) Early Morning Early Fringe, Early News, Access, Prime, Late News, Late Fringe Daytime All Dayparts Early Fringe Early News, Access, Prime, Late News, Late Fringe Early News Access, Prime, Late News Prime Sports Late News Prime Late Fringe Late News, Prime Radio Advantages of Radio Disadvantages of Radio Allows advertisers to employ time of day or day of week scheduling Takes time to build reach because of fragmentation Selectively targets audiences through distinct formats Potential for cluttered environment Smaller coverage area provides less geographic waste Good frequency builder Radio is usually purchased on a local or regional basis although it is possible to buy national radio. Arbitron measures radio listeners. It is a quarterly survey (smaller markets = 2) Terminology: o AQH (Average Quarterly Hour) = the average number of people who listen to a station for at least five minutes within a quarter hour during a specific daypart o AQH rating = the AQH audience expressed as a percentage of the population o Multi Ranker = ranks radio stations in a market by daypart and by demographic o Cume Audience = the total number of different people (in a specific target) who listen to a station during a daypart o Reach = the total number of people delivered by a media schedule; usually expressed as a percentage o Frequency = the average number of times the target audience has been exposed to the message within a give time frame. o TSL (Time Spent Listening) = relates AQH and cume and is a measure of loyalty. Hints: o Satellite Radio is changing the landscape of radio (especially since it is commercial free). o Rule of thumb – 3 frequency in a given week with 50% reach = 150 grps Dayparts Morning Drive 6 am – 10 am Midday 10 am – 3 pm PM Drive 3 pm – 7 pm Evening 7 pm - midnight Newspaper Advantages of Newspaper Disadvantages of Newspaper Broad reach with local emphasis High cost for large size units Immediate Impact Low quality for reproduction Geographic flexibility (zoned editions) Skewed toward an older audience (35+) Excellent local penetration Only keep for a day or so Presentation of detailed message Decline in circulation Variety of sizes Erosion of young readers Credibility Ad rates increase as circulation decreases Use coupons, directions & map Ad clutter Ethnic appeal Limited readership Tangible medium Competition Newspaper can be (1) broadsheet (e.g. the NY Times) or (2) tabloid (e.g. Daily News). They can be (1) dailies or (2) weeklies and can be zoned geographically and can provide inserts. Terminology: o Standard Measurement = columns x inches (column inches) o SAU – Standard Advertising Unit o 1 column inch = 2 1/16” Magazine Advantages of Magazines Disadvantages of Magazines Selective – can segment demographically, psychographically, Early closing dates geographically Lack of immediacy Long shelf life; ad can be viewed at leisure Slow building of reach Excellent color reproduction Capacity for long message delivery/creative unit flexibility Editorial support Coupons and inserts Magazines can be (1) National (e.g. People, Vanity Fair), (2) Regional (e.g. Southern Living), (3) Local (e.g. Philadelphia Magazine), (4) International (e.g. The Economist). Terminology: o Circulation = number of copies printed and distributed o Rate base = guaranteed average issue circ upon which rates are based o Circulation is audited by ABC (Audit Bureau) o Pass along readership = readers who obtain a magazine second hand o Readers per copy = number of people who read a given issue of a magazine o Total audience = circulation x readers per copy o Bleed = design runs to the edge of the page o Non-bleed = designs stays within the margins of the page o Trim = Actual size (8.5 x 11) o Gutter – inside the margins o Color = 4 c, 2 c , 3 c (black + color) Evaluating Magazines: o Editorial content (see editorial calendar in the media kit) o Paper and reproduction o Ratio of ad pages to editorial (50/50 standard) o Target audience o Subscriptions v newsstand sales o Circulation trends o Geographic distribution and compatibility with target audience o Method of distribution to readers – mailed, delivered to door, bulk etc o Frequency of publication (monthly, weekly) o Rates Out of Home Advantages of Out of Home Disadvantages of Out of Home Campaign continuity Limited copy potential Increased reach and frequency Finite inventory Target geographically or demographically Has distinct seasonality Offers a visual component to campaign Market wide penetration Unique creative opportunities (promotions, sales near point of purchase, directional, direct response) Out of Home (OOH) encompasses a wide variety of media vehicles that carry advertising messages to consumers outside the home. Out of Home includes mall displays, phone kiosks, ariel signage, taxi cab displays, buses, subway/bus cards, station platform, smart boards Bulletins = Located on both major highways and secondary roads Bigger is better and bulletins are a dominate expressway coverage tool with rotation capabilities and continuity Usually more expensive and “permanent” than posters It is the largest OOH medium – often referred to as billboards (14 x 48 or 20 x 60) Most are illuminated and have creative options Poster Panels Provides immediate market saturation and target coverage Short term effectiveness High reach and frequency potential Called 30 sheet posters or posters (12 ¼ x 24 ½) or 8 sheets (5 x 11) Found on arterial roads, walls Transit Many different vehicles including: o full wrap buses o king size bus wraps (posters or wrap on sides on entire bus) o bus tail displays (posters on the back of bus) o bus shelter o rail station displays/platform posters Terminology: o Traffic audit bureau of media measurement (TAB) = provides audited circulation of boards (equivalent to Nielsen and Arbitron) o Daily Effective Circulation (DEC) = the audience likely to be exposed to the advertising board each day (not during rush hour) o Showings = the total number of impression delivered by a media schedule expressed as a percentage of the total universe on a daily basis (either #25, #50, #75, #100 percent of the market). For example, a 50 showing means 50% of the market is exposed to it. o Transit is usually sold as a half or full showing or on a per unit basis (e.g. number of buses). For example, 100 buses = 50 showing. It can also be based on the number of garages which are geographically segmented. o Measured as CPM but don’t talk about reach and frequency. Build reach quickly and frequency with amount of time the board is up. Example of Showings: #25 Reach = 78.9 Freq = 9.5 30 days Reach = 88.2 Freq = 17 60 days #50 Reach = 88.2 Freq = 17 30 days Reach = 93.8 Freq = 32 60 days #75 Reach = 91.8 Freq = 24.5 30 days Reach = 95.7 Freq = 47 60 days Interactive Advantages of Interactive Disadvantages of Interactive Very targeted; speaking to those with Internet access Limited reach potential Right environment for immediate delivery of traffic to site High CPMs, especially among the more targeted sites Flexible media, user can interact with site 24 hours a day, Limited creative expression seven days a week Provides for instant & measurable results Allows for data base collection Interactive media is best used for “call to action” commercials. Planners can target geographically on major search engines (AOL has 30-40% of all internet users). Terminology: Impressions = the number of times a web page is viewed. Corresponds to the net impressions in traditional media. All CPMS are guaranteed; costs between $15-70 CPM. Banner = ad on web page (usually top of page across) Tiles and buttons = smaller ads on the site Skyscrapers = the ads on the right side of the site Opt ins = newsletters or emails that people elect to receive based on a specific interest. Click through rate = percentage of uses clicking through an ad banner to a web site (average = .22% - .5%). For some sites engaging more “qualified leads”, the click through rate is higher. Search engine optimization = using meta filters in the HTML codes to maximize searching. There are also sponsored links (on Google) which are sold on a cost per click basis. Pop ups and pop unders Cost per clicks = Only pay when a consumers clicks on the ad; Planner sets a daily spending limit and once enough consumers “click through” it gets shut off. Usually cost per clicks (.15-.20 per click) are more efficient than cost per thousand impressions. Cost per action/lead = advertiser pays only when an action has been completed such as a purchase or a completion of a survey. Online Research: Online measurement include I-Pro, ABC, BPA, Media Metrix, and Nielsen NetRatings Competitive Spending include AdRelevance (Media Metrix), CMRi (Interent arm of CMR) Trend information sources include Ad Age, Ad Week/Media Week, Interactive Quarterly, Industry Standard, Business 2.0, Channelseven.com, Clickz.com Creative & Medial Selection: Banners, Buttons & Skyscrapers Key words Rich media Opt in Email & Newsletters Viral Marketing = word of mouth email marketing and websites (e.g. subservient chicken from Burger King) Sponsorships = sponsorships of magazines or sites (e.g. Business 2.0 Contest & Promotions Interstitials & SuperStitials = interruptive advertising Direct Response A direct response commercial promotes an immediate call to action to purchase a product or service or receive free information. Interested parties respond by calling an 800, 888, 877 or 900 number which is repeated on the commercial and the transaction is completed directly between the caller and the answering service. The objectives of direct response include (1) sell a product or service (2) offer free information (3) build brand awareness/image and (4) drive retail sales. The Direct Response Process (1) Consumer sees spot (2) consumer makes the call (3) telemarketing house answers the call and collects information and makes the sale (4) planner analyzes the lead and (5) eventually generates a cost per lead. Tracking responses using a dedicated phone number system: Planner can track the leads by station by the hour, day of the week, geographic area, creative code or lead to sale conversion. For the campaign: (1) answering service (2) assign the 800 numbers (3) dub house and (4) fulfillment house Buying for the Pure Direct Response Length of spot: :30, :60, :90 and :120 and 30 minute formats Rate structure – buy broad dayparts Seasonality is important (1st and 3rd qtr are best) Buying for Hybrid Direct Response Buy specific programs Rates between fixed and DR Media Options Paid programming = infomercials for half hour program on weekends and late night National cable = great for national clients, more cost effective than local cable and can focus on the target Local cable = not a good DR outlet, need frequency and local insertions are limited; markets too fragmented Syndication = can be expensive; talks shows, movies Radio = news, news/talk, sports; 10 am – 3 pm; 7 pm – midnight and overnights; live reads Guerilla Marketing Where to Get the Information: The Research For much of media planning, planners use secondary research. These are syndicated surveys, many of which require a subscription. Three primary types: Quantitative = population counts o CACI o Audit Bureau Circulation (ABC) o Arbitron o Nielsen Qualitative = combines behavioral and demographic information o Simmons o MRI o Scarborough o Media Audit Psychographic = attitudinal responses and value statements o Simmons o MRI o Scarborough – VALS Index Numbers = this is an indicator of relative occurrence of behavior in relation to its occurrence in the population defined by the table base. Index 100 = average; greater than 100 = higher propensity for the behavior; less than 100 = lower propensity for the behavior. Coverage = the percent of the total base population that a target audience represents (target audience / total population). This can result in waste. Composition = the percent of a target audience that is described by some characteristic (characteristic / target audience). This can limit reach. Tools: Simmons Study of Media and Markets (SMRB) and Mediamark Research (MRI) = reports on the usage of brands in 800 categories VALS = used for segmenting consumers and predicting behavior Nielsen and Information Resources Inc (IRI) = measures repurchase Sales and Marketing Management Survey of Buying Power Index (BPI) = predict sales potential Survey of Media Markets SRDS = media information Brand Development Index (BDI) = brand performance in a market (see glossary of terms) Category Development Index (CDI) = category performance in a market (see glossary of terms) Claritas (PRIZM) CACI Marketing Systems (ACORN) Lifestyle Market Analysis (SRDS) Sourcebook of ZIP Code Demographics (CACI) Sources of Media Information Belch & Belch 2004 Type General Information Competitive Info Market Info (Geographic) Audience Info Advertising Rates (target groups) Non media Ad Age, State & Metro Area Ad Age State & Metro Data Book; Editor MRI, MMR, Simmons information Data Book, MRI, MMR, & Publisher Market Guide; MRI, (general) Simmons Study of Media & MMR, PRIZM, Survey of Buying Markets; Standard directory Power; Standard Director of of advertisers; Standard Advertisers; Telmar directory of advertising agencies Multimedia or Ad Age, MRI, MMR, Ad Age; PRIZM Advertising Agency Advertising Agency Media intermedia Simmons M&M Competitive Media media estimating Estimating Guides Reporting guides Daily Audit Bureau of Advertising Agency Media newspapers Circulations; MRI; Estimating Guides; SRDS MMR; Simmons Weekly SRDS newspapers Consumer Magazine Publishers Competitive Media MRI, MMR, Simmons Advertising Agency Media magazines Association of America Reporting Estimating Guides; SRDS Farm Audit Bureau of Circ; Advertising Agency Media Publications Verified Audit Estimating Guides; SRDS Circulation Corporation Business Business/Professional Business/Professional Advertising Agency Media publications Advertising Association Media Advertising Association Estimating Guides; SRDS Data; Business Publication Audit Media Data; Verified of Circulation Audit Circulation Corporation Network TV Broadcast Arbitron Ratings; MRI, SRDS Advertiser Report; MMR. Nielson Media Competitive Media Research Company; Reporting Simmons Spot TV Broadcast Arbitron Ratings; MRI, Advertising Agency Media Advertiser Report; MMR. Nielson Media Estimating Guides; SRDS Competitive Media Research Company; Reporting Simmons Network radio Broadcast Survey of World SRDS Advertiser Report Advertising Expenditures; MRI; MMR; Nielsen: Simmons Spot radio Arbitron; Audit Bureau Advertising Agency Media of Circ; Survey of World Estimating Guides; SRDS Advertising Exp; Nielsen; Simmons Direct mail Advertising Agency Media Estimating Guides; SRDS Outdoor SRDS; Buyers Guide to Outdoor Advertising Transit SRDS General List: Advertising Age Advertising agency media estimating guides American Business Press (ABP) Arbitron Ratings Company Audit Bureau of Circulation (ABC) Business/Professional Advertising Association (B/PAA) Media Data Broadcast Advertisers Reports (BAR) Business Publications Audit of Circulation (BPA) Buyers Guide to Outdoor Advertising CACI (for Zip Codes State and Metropolitan Area Data Book Editor& Publisher Market Guide Survey of World Advertising Expenditures Stach/Inra/Hooper Competitive Media Reporting Magazine Publishers Association of America (MPA) Mediamark Research Inc (MRI) Mendelsohn Media Research Inc (MMR) Nielsen Media Research Company Prizm Sales and Marketing Management Survey of Buying Power Simmons Market Research Bureau Study of Media and Markets Standard Directory of Advertisers Standard Directory of Advertising Agencies Standard Rate and Data Services (SRDS): Provides map, newspaper penetration, population, households, retail sales (for newsp, B2B, C2B, TV, Radio, OOH) Telmar Verified Audit Circulation Corporation (VAC) Research Tools The Katz Media Group (radio information) www.krgspec.com Outdoor Advertisers of America www.oaaa.com Nielsen www.nielsenmedia.com Access Benchmark Communications www.bmcommunications.com www.top100radiosites.com Radio Advertising Bureau www.rab.com Lamar Outdoor Advertising www.lamar.com www.magazine.org B 2 B Advertising www.netb2b.com Advertising Age www.adage.com www.claritas.com www.genxpress.com www.marketingtools.com www.sric_bi.com/VALS Women Consumers www.women.com Hispanic Consumers www.hispaniconline.com African American Consumers www.targetmarketnews.com Gays and Lesbian Consumers www.planetout.com www.coupons.com www.couponcountry.com In store media system www.ismsi.net www.sweepstakesbuilder.com www.promotionactivators.com www.adpaccorp.com www.salespromo.com www.decisionanalyst.com www.roper.com www.mediametrix.com www.mriplus.com www.mediamanager.com www.sandboxexchange.com www.tvradioworld.com Glossary of Terms Accrual = The amount of co-operative advertising support money earned by a retailer through wholesaler purchases from a manufacturer distributor. Advertorial = Ad appearing in a magazine or a newspaper printed in the graphic style of the publication to closely resemble actual editorial material. Area of Cable Influence = Cable selling strategy that documents to advertisers that value of cable’s ability to target geographically and demonstrates the importance of the cable household’s purchasing power. Area of Dominant Influence = mutually exclusive media and marketing areas composed of counties that are usually contiguous. In general a county is assigned to an ADI based upon the predominance of viewing (by HH in the county) to home market stations. These television markets are defined by Arbitron. Audience = the number of persons (or homes) exposed to a particular media vehicles. TV = TV meter and diary sample; Radio = diary and people meter; Print = opened to or looked into any page of a magazine or newspaper. Audience Composition = describes the demographic makeup of the audience of a media vehicle or schedule (e.g. 45% women; 55% men). Average Frequency = the average number of times that each home or person is exposed to an advertising schedule or campaign. Example: In a total population of 100 homes, 20 were exposed to program A and 10 were exposed to both A & B. The frequency is obtained by computing weighted average: 20 x 1 = 20 40 GRPS/30 REACH = 1.3 Average frequency 10 x 2 = 20 30 40 (reach) (grps) Average Quarter-Hour Rating (AQH) = The average number of persons listening to a particular radio station for at least five minutes during a 15 minute period. Average Time Spent Listeing (TSL) = The amount of time the average persons listens to Radio in the course of the average day or week. Brand Development Index = the index of a brand’s per capita sales in a given local market as compared to national per capita sales for the brand. BDI’s are often used to identify markets of opportunity. BDI = % of brand sales in market area / % of US population in market area X 100 Bulldog = First edition of the day’s paper, especially of the morning paper, printed around midnight or sometimes earlier. Category Development Index = similar to BDI, the CDI is an index of category sales volume per capita for a particular area as compared to the national category sales volume per capita. CDI = % of category sales in market area / % of US population in market area X 100 Churn = The turnover of Cable TV subscribers due to disconnects and/or new customers. Circular = Special advertising supplement distributed to the consumer either by newspaper or direct mail. Generally in color and higher quality than ROP advertising. Conversion Factor = A television term that quantifies the relationship between Demographic GRP’s and Household GRP’s. This relationship can be derived for individual programs or for a schedule of programs. Cost Per Point (CPP) = The cost of delivering one rating point (one percent of a population group). The most common application for CPPs is during the development of a media plan when they are used to help determine levels of advertising support. CPP = Media Cost (In Dollars)/GRPs Cost Per Thousand (CPM) = The cost of delivering one thousand impressions within a defined population group. CPMs are used to compare the efficiencies of media vehicles or schedules. CPM = Media Cost (In Dollars)/Gross Target Impressions (In Thousands) County Size = All counties in the U.S. are designated A, B, C, or D. A county’s classification is determined by the population of the county. The following describes each of the four counties. A County: All counties located within the 25 largest metros. B County: All counties not included under A with a population over 150,000 or located within a metro with a population over 40,000. C County: All counties with a population between 40,000 and 150,000 or located within a metro with a population over 40,000. D County: All counties with a population less than 40,000. Coverage = The percent of the total U.S. population that a vehicle’s audience represents. % Coverage = Audience/Total Population Vehicle A: 2/6 = 33.3% Coverage Vehicle B: 1/6 = 16.7% Coverage Vehicle C: 1/6 = 16.7% Coverage Cume Rating = The cume persons expressed as a percentage of the population being measured. Designated Market Area (DMA) = Mutually exclusive media/marketing areas composed of counties that are usually contiguous. In general, a county is assigned to a DMA based upon the predominance of viewing (by households in the county) to home market stations. These television markets are defined by A.C. Nielsen. Duplication = The number or percent of people in one vehicle’s audience who are also exposed to another vehicle (i.e. cross duplication). Also the number of people who are exposed to different issues of the same publication or episodes to different issues of the same publication or episodes of the same program, over time (i.e. self-duplication). Direct Response = Consumer replies to advertising offer either by mail, phone, or fax rather than going to store directly. Display Advertising = Newspaper ad including artwork as well as copy for a national or local client. Double Truck = Ad run on two facing pages. Also called a spread. Effective Frequency = The number of advertising exposures that are judged necessary to produce a positive change in awareness, attitude, or purchasing action. Effective Reach = The percentage of the target audience that is exposed to the advertising schedule a sufficient number of times to produce a positive change in awareness, attitude, or purchasing action----based on the concept that exposure below the effective frequency has little or no value. If effective reach is defined as exposure to 2 or more programs, and there are 17 homes out of 100 exposed to 2 or more programs, an effective reach of 17 percent is generated. Homes exposed to only 1 program have no value in this example. Frequency Distribution = Quantifies the number of people (or homes) exposed to a schedule based on the exact number of times that they have seen the media vehicle. The number of people reached at each frequency level is expressed as a percentage of the population base. The number of homes that have seen exactly one program in a three program schedule is: Only Program A: 8% Only Program B: 5% Only Program C: 7% 20% The number of homes that have seen exactly two programs in a schedule is: Only Program A & Program B: 4% Only Program A & Program C: 2% Only Program B & Program C: 5% 11% Free Standing Insert (FSI) = Ad printed by the advertiser and bound or stuffed loosely into a publication. Most often included with Sunday newspaper editions. Geo-Demographics = This term refers to segmentation systems that are based on the demographic characteristics of very small geographic areas such as Census Block groups or ZIP codes. Typically, these systems work with detailed Census data that sort geographic units into statistically homogeneous “clusters.” This permits all forms of geo-coded marketing or media data to be linked , profiled, and evaluated across the cluster groups. Four major geo-demographic clustering packages are ACORN, PRIZM, CLUSTER PLUS, and VISION. Grazing = A style of television viewing where the viewer switches channels often either looking for alternative programming or watching multiple programs simultaneously. Gross Rating Points (GRP’s) = The aggregate number of rating points in a given schedule or advertising campaign. GRP’s may also be computed by multiplying the reach of a given schedule (or advertising campaign) by the average frequency. Program HH Rating A 24 B 22 C 14 D 20 E 22 102 HH RTG Head-End/Hubs = Each cable TV System has a primary site that receives or originates video information and then distributes it to subscribing households. This primary site is the system’s “head-end,” which is equipped with an earth dish, antennae, etc. When the area served by a cable system is too large to be handled from the head-end without significant loss in signal quality, additional sites, called “hubs”, are needed. Video information is sent from the head-end to one or more hubs via microwave transmission. The signals received at the hub(s) are then placed on coaxial cable and distributed to homes located near the hub. Homes Using Television (HUT) = The percentage of total television homes that are viewing television during a given time period. A commonly used formula to compute HUT is: HUT = Rating/Share x 100 Infomercial = Long-form (usually 30 minutes) TV/Cable program designed to promote a product or service, often by direct response. Magazine Audiences: Primary Reader = A reader who lives in a household that obtained the magazine wither by subscription or newsstand purchase. Pass-Along or Secondary Readers = Those readers who read the magazine secondhand: in a waiting room, at a neighbor’s in an office or business place, etc. Market = The potential universe for a product’s use, sales, or ownership. Usually stated in units, dollars, persons, or outlets. Metropolitan Statistical Area (MSA) = Determined by the U.S. Office of Management and Budget. The MSA is a geographic area with a large population nucleus along with any adjacent communities that have a high degree of economic and social integration with that nucleus. An area can qualify as an MSA in one of two ways: 1. If it contains a city with a population of at least 50,000. 2. If it contains an “urbanized” area of at least 50,000 and the total metro area population is 100,000 or more. Newspaper Designated Market (NDM) = The market area served by the newspaper, as defined by the publisher (alternative to City/Retal Trading Zones defined by the Audit Bureau of Circulation). Page 3 = The newspaper’s equivalent of “morning drive,” a coveted position typically occupied by the largest display advertiser (department store, etc.) Penetration = The percentage of homes in a given area that own television or radio sets. For example, 98 percent of U.S. homes own TV sets. Pennysaver = Free weekly, all-ad neighborhood papers. People Using Television (PUT) = The percentage of persons within a particular demographic category who are viewing television during a specific time period. P.O.P = Point-of-purchase, or in-store media. Quintile Analysis = A quintile analysis is computed by dividing the number of people reached by a schedule into five equal groups. The average frequency is then computed for each sub-group. (Tercile analyses summarize the average frequency levels in three equal sub-groups, quartiles in four equal sub-groups, etc.) Rating = The number of homes or people exposed to a media vehicle expressed as a percentage of the population base. A commonly used formula to compute average rating is: Rating = Share x HUT/100 Reach (Cume) = The number of different homes of people exposed to a brand’s advertising one or more times. Reach is expressed as a percentage of a population base. For example, 10 homes are exposed to Program A, 10 homes are exposed to Program B, and 10 homes are exposed to both programs---out of a universe of 100 homes, 30 homes, or 30 percent of the universe, are reached. Readers-Per-Copy = The average number of readers-per-copy of a publication is computed by dividing the total number of different people who read or looked into an average issue of a magazine by the magazine’s total circulation. RPC = Number of Readers/Circulation Retail Trading Zone = The area surrounding the City Zone from which people came to trade regularly in the City Zone retailers. Defined by the Audit Bureau of Circulations. Run-of-Paper (ROP) = Ads which may appear on any page or in one particular section. Sometimes also referred to as “Run-of-Press.” Schedule = Organized plan of print or broadcast advertisements as arranged by contract. Share = The percent of the total viewing or listening audience in a specific time period tuned to a particular station, network, or program. A frequently used formula for computing share is: Share = Rating x 100/HUT Spade = The half-page pf advertising wrapped around the Sunday Comics section of many newspapers. Specialty Media = Novelty or place-based items, such as calendars, T-Shirts, mugs, pens, skywriting, etc. Syndication = Radio/TV programs and newspaper features independently produced and sold on a market-to-market basis to the media. They, in turn, sell them to advertisers as sponsors. Tabloid = Newspaper with smaller size than broadcast sheet. Usually 14” deep, and between 9-3/8” and 11” wide. TMC Product = Alternative medium developed to allow newspapers to sell Total Market Coverage. Sent to non-subscribers by mail or alternative home delivery. Frequently laden with inserts. Zone Selection = Limited-geography special-interest section included with the daily paper. Gives dailies the opportunity to compete with direct mail and weeklies for low-rate advertising by single-location or geographically-limited businesses. References Much of this document is based on training received at Harmelin Media in Bala Cynwyd, PA June 21-24, 2004 during interviews with Scott Davis, Andrea Ferrino and Brad Youtz.
"Media Planning Boot Camp Handout - Villanova University"