MediaMedia

Back to the basicsBack to the basics

Introductory Terms

Like …

– Medium/Vehicle– Universe– Target Audience– Rating– Duplication– CPRP– GRP/TRP

– Reach– Frequency– Frequency Distribution– Effective Reach & frequency

What is a medium ?• Media : Carriers and deliverers of advertisements.

• Medium : A broad general category of carriers

• Vehicle : A specific carrier within a mediumMedium VehicleTelevision KkusumNewspaper Times of IndiaMagazines India TodayRadio Good Morning Mumbai Outdoor Patel Bridge Video Cassette of a movie

Internet Indiatimes.com

Target Audience“The particular segment of the population that our

campaign is trying to reach”

Universe

“The number of individuals within a given target”

Example : Working women 25-40, MHI 10,000 +

Broadly three ways in which targeting can be approached

Demographics

Psychographics

Mindset, Affinity group

What we will cover in the next few slides

• Plan Reach• Average Frequency• GRP’s• Gross OTS

Lets see how these 3 concepts are related to each other

Reach

Frequency GRPs

For instance, assuming we have a Target Audience of 10 people...

– 1 in Programme A

– 1 in Programme B

– 1 in Programme C

… And our campaign is made of 3 spots

1 TV SPOTTRP = 50Reach = 50 %Average Frequency TRP/R = 50/50 = 1Frequency Unique Reach

1 50 %2 0 %3 0 %

5 people watched programme Aand saw the commercial...

Rating = 5/10%=50%

Programme AProgramme A

Rating = 50%

Programme AProgramme A

We add Programme Band 6 people watch this programme and our ad

Rating =6/10%=60%

Programme BProgramme BUnique Audience(Building REACH)

Duplicated audience(Building FREQUENCY)

2 TV SPOTSGRPs = 110Prog B adds 60 TRPs but not 60% reach as 30% is duplicatedReach =50+30= 80 %Average Frequency = 1.4

Spot Unique Reach Cum Reach1 50 % 50%2 30 % 80%

Rating = 50%

Programme AProgramme A

Rating = 60%

Programme BProgramme B

3 TV SPOTSProgramme C adds 50 TRPs but only 10% reach as the other 40% is duplicated with Programme A or/and BGRPs = 160 Reach = 80+10 = 90 %Average Frequency = 1.8

Frequency Unique Reach1 40 %2 30 %3 20 %

Programme CProgramme CRating = 50%

Rating = 50%

Programme AProgramme A Programme BProgramme B

Rating = 60%Did not watch

Plan Reach“Percentage of our target universe that was exposed at least

once to an advertising schedule.”

Usually measured over 1 or 4 week period

Hence, in the previous example,Target Universe = 10A campaign achieves 90% reach, which means that 90% of the target (i.e. 9 out of 10 TA) have seen the commercial at least once

Reach Caveats• As insertions are added to the media schedule, only the

audience not previously exposed to the message are added to the reach total.

• Thus, once a person is counted in the reach, that person is not counted again no matter how many times the person is exposed.

• Reach can never be greater than 100%.

Average Frequency“The number of times, on average, the audience reached sees the

commercial during a given period. ”

Again, in the previous example, Average Frequency of 1.8 means that, as an average, every person reached has seen the commercial 1.8 times. This is an average, which means that some people will have seen the commercial more times, and some less. The average gives us a general idea of the campaign frequency performance.

Gross Rating Points (GRP’s)“The sum of all ratings achieved in a given period.”

• GRPs or TRPs are results of the reach and frequency goals we set

• GRPs or TRPs are not goals by themselves

• GRPs or TRPs alone don’t tell us what we really achieve

GRPs / TRPs

GRPs / TRPs , Reach & FrequencyFormulae

GRPsGRPs

FrequencyFrequency ReachReach

Frequency x Reach = Frequency x Reach = GRPsGRPs

GRPGRPFrequencyFrequency = = ReachReach GRPGRP

ReachReachFrequency Frequency = =

Rules• Never add GRPs/TRPs that belong to different target definitions (will have to use weighted

averages)

• Never add GRPs/TRPs that belong to different markets (will have to use weighted averages)

• GRP’s can be added by brands, by durations and by weeks/months.(as long as TA and markets are identical)

• GRPs /TRPs can be calculated adding the ratings of the advertising campaign spots

• Reach and Average Frequency can only be calculated with computer software

• Reach can never be higher than 100

GRPs / TRPs , Reach & Frequency

Same GRP levels Reach Freq.

• Increasing day parts

• Buying same kind of programming, usually

• Increasing # TV channels/publication

• Buying only 3 days of the week

A general guideline on how to increase Reach or FrequencyA general guideline on how to increase Reach or FrequencyGRPs / TRPs, Reach & Frequency

Cost Per Rating Point (CPRP)“Cost of reaching 1% of my target with a specific medium.”

Formula :Medium or Vehichle Total Cost ÷ GRPs or Rating = CPRP

In the previous example, assuming it costs Rs 3,00,000/ to buy those 3 spots (= 160 GRP’s)

CPRP = 300000/160= 1875.

Cost Per Thousand (CPT)“The cost of reaching 1000 individuals within my target

with a given medium or specific vehicle”

Formula :Medium or Vehicle Total Cost ÷ Target Audience (in 000’s) = CPT

An ExerciseTG

No of times commercial

seen1st spot 2nd 3rd 4th 5th 6th 7th 8th

1 2 2 6 3 1 4 4 5 5 6 1 7 -8 -9 4 10 3 11 1 12 5 13 6 14 7 15 1

What is … • Reach• GRP’s• Gross OTS• Avg OTS

What we knowUniverse : 15

Reach (seen atleast once): 13/15% = 87%

Step 1- Reorganise dataSeen # people

0 21 42 13 14 25 26 27 1

Step 2

Seen # people

1 4 42 1 23 1 34 2 85 2 106 2 127 1 7

13 46

Universe =15

Reach = 13/15%= 87%

Gross OTS = 46

Avg OTS = 46/13= 3.5

GRP’s = 87X3.5=307

QUIZ TIME!

Q 1

A = 100B = 80

C = 90

D= 35

E=25

G = 10

F= 30

H = 30Office Office

JassiKasauti Plan:

Kasauti 1 spotJassi 1 spotOffice…1 spot

Find Reach & AOTS

Plan Reach = 370/400% =92.5

Plan A OTS = 1.30

Seen # Audience1 270 2702 90 1803 10 30

370 480

REACH 370/400%92.5

AOTS 480/3701.30

GRP's 92.5 X 1.3120

Q 2

A = 100B = 80

C = 90

D= 35

E=25

G = 10

F= 30

H = 30Office Office

JassiKasauti Plan:

Kasauti 2 spotJassi 1 spotOffice…1 spot

Find Reach & AOTS

Plan Reach = 92.5

Plan A OTS = 1.77

Seen # Audience1 170 1702 125 2503 65 1954 10 40

370 655

REACH 370/400%92.5

AOTS 655/3701.77

GRP's 92.5 X 1.77163.75

Q 3

A = 100B = 80

C = 90

D= 35

E=25

G = 10

F= 30

H = 30Office Office

JassiKasauti Plan:

Kasauti 1spotJassi 2 spotOffice…1 spot

Find Reach & AOTS

Plan Reach = 92.5

Plan A OTS = 1.70

Seen # Audience1 190 1902 110 2203 60 1804 10 40

370 630

REACH 370/400%92.5

AOTS 630/3701.70

GRP's 92.5 X 1.70157.5

Q 4

A = 100B = 80

C = 90

D= 35

E=25

G = 10

F= 30

H = 30Office Office

JassiKasauti Plan:

Kasauti 1spotJassi 1 spotOffice…3 spot

Find Reach & AOTS

Plan Reach = 92.5

Plan A OTS = 2.14

Seen # Audience1 180 1802 35 703 90 2704 55 2205 10 50

370 790

REACH 370/400%92.5

AOTS 790/3702.14

GRP's 92.5 X 2.14197.5

Other related concepts

Frequency Distribution• Average Frequency represents the average number of times the target

was exposed to a commercial message

• But, we know that people are exposed at different rates. Some will see 1 message, some 2 messages, some 4, and some may even see all of them

Frequency Distribution describes the number orpercent of population exposed at each

frequency level

Frequency % Reached0 31.71 22.32 15.43 10.54 7.15 4.76 3.17 2.08 1.39 0.810+ 1.2

Thus,32% were not exposed at all68% saw at least one message22.3% saw one and only one message15.4% saw two and only two & so on

1.2% saw 10 or more messages

Frequency DistributionSCHEDULE A GRPs - 200

Reach - 68%Avg OTS - 2.9

Frequency % Reached

Frequency Distribution

0 29.21 24.82 13.23 9.0 4 8.05 6.76 5.27 2.18 1.39 0.510 0.3

However the same 200 GRPs in another schedule yield very different results !

GRPs - 200Reach - 71%Avg OTS - 2.8

SCHEDULE B

Effective Frequency“The number of potential commercial exposures necessary” to communicate the advertising message effectively

Generally expressed in terms of 2+, 3+, 4+, etc.

“Percentage(%) of target universe reached by the commercial the number of times set as Effective Frequency or more”

Effective Reach

Frequency % Reached0 31.71 22.32 15.43 10.54 7.15 4.76 3.17 2.08 1.39 0.810+ 1.2

Frequency % Reached

0 29.21 24.82 13.23 9.0 4 8.05 6.76 5.27 2.18 1.39 0.510 0.3

Effective Reach & FrequencyIf we set 4 as Effective FrequencyWhat is the Effective Reach in Schedule A and B ?

Effective Reach @ 4+Schedule A = 20%Schedule B = 24.2%

A B

Planning Principles

Forecast future trends• Normally, we plan for the future using past data. Hence there

is a time lag of almost 2 months between planning and implementation

• Idea is to simulate the future TV viewing behavior using old data.

• One of the most important function of a planner is to predict –– Trends in channels/programs deliveries– Trends in daypart performance

Always apply 4/6 week averages for planning. Apply 8-12 wks averages, in case of aberration

Optimise cost per reach point• Three planning variables (R, F and GRP) are

interdependent– Hence, objective should be to MINIMISE GRP’s(and

thus cost) for given Reach/Frequency– OR, MAXIMISE REACH for given GRP (cost)

• Objective must be to minimize Cost per reach point and not minimizing CPRP

Reflect buying realities

Must reflect TG viewership behavior• Since we are operating in one TV HH scenario, data reflects

similar viewership pattern across different TG’s.

• There is a need to identify particular characteristics of target group and their involvement levels.

Know your benchmarks• It is good to know GRP and R/F benchmarks for your

TG/brand

• Also, know CPRP benchmarks for your TG/brand..

Thank You