Media toolset

Imagine you are trading beer

How would you settle payments with beer manufacturer?

Will you pay him all the cost even if no one approached your stall? .

Obviously you must pay in proportion to those bottles that were bought .

The fairest payment model You pay for what was demanded  Sale not presence on a stall has value and initiates payment The same is with media  Contacts not emissions define the effectiveness  and cost of the campaign (for most measurable media TV) .

Beer sale Commercial exposure .

1 rating denotes a number of exposures equivalent to 1% of the target audience exposed to commercial If there are 200.000 M25-54 then 1 rating = 2.000 (a number equivalent to 1% of the M25-54 were exposed to an ad) .

To calculate turnover you simply total transactions When you add exposures you get gross exposures (Gross Rating Points = GRPs) If you ran 4 spots. we can declare that campaign earned 40 GRPs . and they ALL earned a 10 rating.

Equal amount of bottles may be sold in different ways The same is with exposures .

To many consumers .

In media it refers to REACH Reach is % of the target population that have received the message at least once .

… Media industry  High rating station  Use wide range of stations  More day-parts  More week days  Different program genres  Use high-rating one-time events (World Cup. …) .Factors that add to high reach Beer trade industry  A stall at hypermarket  At different hypermarkets  Trade the whole day  Trade the whole week  Different brands  Have mobile stall at beer festival.

So it depends on your goals and skills You may sell every item into different hands  Thus having more exclusive consumers 55 of the 100 GRPs may reach viewers for the first time  The remaining 45 GRPs are duplicated exposures .

…these poor someone may consume extra .

If you know how many beers you have sold and the number of consumers You can tell how many bottles everyone drinks on average .

In media it refers to FREQUENCY Frequency denotes the number of times that the average member of the target (who’s been reached) is exposed to a message .

Factors that confine reach and add frequency Beer trade industry  Local small pub  At one sleeping district  Trade only at noon  Trade only on Sundays  Trade only one brand Media industry  Low rating station  Limited amount of stations  Limited day-parts  Limited week days  Limited program genres .

In media it refers to duplication Because of duplications reach is always lower than 100%! .

High capacity plant may produce annual amount of bottles that exceed population Heavy campaign may have over 100 GRPs .

Monetary value of exposures and GRP CPT (CPM) is the cost of delivering 1.000 exposures among a target audience CPP is the cost of exposing 1% of the target audience .

Factors that influence cost Beer trade industry  Cost may vary by outlet  Cost may vary  Peak and off seasons  Cost may vary by brands Media industry  Cost may vary by stations  Cost may vary by day-parts  Cost may vary by months  Cost may vary by programs .

Liter is a standard in beer industry… Draughts/bottles of different size have different value to consumer .thus must have different cost as well .

GRP in media To assess communication and monetary value of TV commercials correctly we need to adjust them to a certain standard .…Eq.usually 30” .

Affinity  Men are heavier beer drinkers than women  To assess how heavier you simply calculate sales for men and women and compare them  The same in media calculate exposures (GRPs) for diff. audiences and compare them  Dividend of GRPs for two audiences is AFFINITY So what? What can we obtain of it? .

Affinity reflects addiction & popularity of the program among the target Moreover it is important buying variable when related to buying audience .

Affinity as a buying variable  The station sells ratings for P16-49. 8 GRPs for W20-45  What is the cost of buying 1 GRP for W20-45?  What is the affinity of W20-45 to P16-49?  Why affinity is so important? .000  The target group is W20-45  The program delivers 10 GRPs for P16-49. CPP is $1.

adding diff. Other questions… . etc.Can GRPs be added for different target groups?  1 GRP is a percent of specific target. ‘in the room’. %% is incorrect Can GRPs be added across different media?  Practically Yes. But note you are adding ‘saw the ad’ vs.

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