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, and they ALL earned a 10 rating, we can declare that campaign earned 40 GRPs

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

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, … 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, …)

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

…Eq.GRP in media

To assess communication and monetary value of TV commercials correctly we need to adjust them to a certain standard - usually 30”

 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, CPP is $1.000  The target group is W20-45  The program delivers 10 GRPs 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?

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

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