You are on page 1of 63

Audience Measurement & Sales

Its essential for media outlets to understand their audiences, because after all, the media are in the business of selling audiences to their advertisers. - Medoff & Kaye

History of Audience Measurement

1920s-Two methods  Telephone recall  Telephone coincidental 1930s-Audiometer: a metering device attached to radios 1940s-Diary: supplemented telephone coincidental data 2000s-Diary: used in most broadcast areas (markets) 1-4 Ratings periods per year

Trends in the world of advertising

Media more communications channels fragmentation of audiences content via digital & mobile platforms Better educated and demanding actively choose media content different attitude toward advertising Legal barriers technical options financial alternatives mental switch-off

The Consumer

Ad Avoidance

90% of global ad spend

Audience Measurement and cost


Ad costs are traditionally determined by audience sizes Ad time/space is priced based on number of viewers/readers When buying ad time/space, key metrics include

Impressions Rating Points Share Reach Frequency CPM

Changing Focus of Media Research

The major weakness (of audience research) is the lack of consumer focus and the silo approach Research must start with the consumer and look where and when they are receptive across all the different communications channels. Bernhard Glock Manager of Global Communications, P&G

Its not about more precise counting Its about more Insight and better understanding of consumers and credibility of measurement/analyses

Media Planning Today

Media planning today is no longer just about media and the counting of readers, viewers or listeners. It is about consumers and their relationship with media and marketing channels. It is about identifying those communication channels that can deliver consumer attention through compelling content. It is about identifying where and when consumers are receptive to commercial messages


What Advertisers Want to Know


When/where/how we consume media Media usage a single or shared activity (multi-tasking) Frame of mind when consuming media Relationship between consumers and their media Receptivity of advertising messages The optimum frequency one, two or three plus exposures Multi-media scheduling . and standard measurements, such as net reach, audience profile, duplication and CPM as an accepted trading currency between vendors and buyers


Changing Media Research


Passive vs. Active measurement Developments in Print Online and emerging channels JICs can they be drivers of change?

TV und Radio Audience Measurement

Arbitron Portable People Meter (US TV and Radio Measurement)


IHA/GfK Radio Control (Swiss Radio Measurement)

Other Suppliers: NOP/Eurisko (Italy) pager-type meter Ipsos (UK) possible use of mobile phones


Passive & Portable Data Collection

Television Household panel using meters with on/off button for each household member Weekly diary or by telephone (day after recall) based on random sample Passive and portable meters carried by panel of individuals (PPM)


TV und Radio Audience Measurement

Passive, Portable People Meter
Phone Line Internet/PC Radio Sets


Overnight download to base station

Transmitter Signal from TV or Radio Station

Meter Satellite Link TV Sets

Cable Head

Car Radio


Passive & Portable Data Collection

Television Household panel using meters with on/off button for each household member Weekly diary or by telephone (day after recall) based on random sample Travel statistics, route selection with or without Visibility Adjustments Passive and portable meters carried by a panel of individuals (PPM)



Passive measurement electronic navigation systems (GPS)


Passive Audience Measurement

Perceived Benefits:  Not memory based  Less respondents overload  Easier multi-channel/multi-platform measurement  Better understanding of audience duplication between channels  Better capture of out-of-home media consumption


Passive Measurements

Does not rely on respondents memory Implementation initially for Television, Radio and Outdoor measurement Ability to measure the increasingly important out-of-home media usage  Drive-time radio  In-store radio/TV  Bars/Pubs for TV sports programmes Ability to measure distribution via different platforms  conventional TV/Radio set  Digital sets  Online  Recorded and time-shifted viewing Multi-media evaluation

Passive Measurement Reality Check!



Provides a different currency Measures passive rather then active media usage

Automatically picks-up audio signals Smaller, less frequently used media tend to gain

Winners and Losers

Significant difference in performance between meter technologies


Financial considerations

Passive Measurement Reality Check!

Australia, Belgium, Brazil, Canada (Quebec), Chile, France, Island, Colombia, Mexico, The Netherlands, Norway, Poland, Portugal, Russia, Singapore, Switzerland, Spain, USA (Philadelphia, Houston)



Switzerland, USA (Chicago), Canada (Toronto) South Africa, Italy, Germany


Alternative: Data Integration


Media-specific surveys still dominate (Silo approach) True Single Source:  Switzerland, Sweden, South Africa, TGI Surveys Data Integration involving Currencies:  Belgium, Denmark, Germany, France (Newspapers), UK (BARB+TGI), Japan, New Zealand, Austria, Portugal, Latin America (TV+TGI) Total Integration  Canada (Project Unity)  UK (TouchPoints)  USA (Project Apollo)


Changing Media Research


Passive vs. Active measurement Developments in Print Online and emerging channels JICs can they be drivers of change?


What About Print?


Print still measures exposure to the carrier (magazine, newspapers, section) and NOT the advertisement It measures OPPORTUNITIES to see, not actual exposure Global Standard (recent reading) says nothing about message delivery Passive measurement still difficult


Weekly Print Ratings

US (MRS), UK (NRS), Netherlands (NOM), Belgium (Sanoma Magazines) Supports the concept of recency planning, where when is more important than how many Prints is speaking the language of Television


Weekly GRPs
120 100 80 60 40 20 0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

original schedule
NOM 2002/PointLogic

revised "Ideal" schedule


Changing Methodologies?

Personal Interviewing still dominates, with more use CAPI or DS-CAPI Product/brand/lifestyle data usually measured with self completion questionnaire CATI not as widely used as previously anticipated Usage of online access panels and other forms (SMS) likely to increase


Changing Media Research


Passive vs. Active measurement Developments in Print Online and emerging channels JICs can they be drivers of change?



No intl standard definition of Internet Use Site-centric measurement (standard counts of page traffic - ABC) User-centric measurements (NielsenNetRatings, comScore) Ad-Server measurement (US IAB) Emergence of JICs to provide acceptable standards of R&F scores

Belgium (CIM Web) Germany (AGOF) Italy (AudiWeb) Netherlands (STIR)


Word of Mouth Marketing

Aka Consumer Generated Media (CGM) Blogs, Chatrooms, Forums, Online diaries, personal Websites etc.. Buzzmetrics, Intelliseek Youth market, Food and Pharmaceutical Industry, political parties




Branded Entertainment



Aka Product Placement, Product Integration etc.. Key channels are Television and Film Sponsorship (dominates Europe) Branded Entertainment (strong in USA, India) Emerging metrics such as Q Ratio (quality of product placement vs. 30 commercial), viewer impact Beyond mere delivery of eyeballs Example: Penta-Gration


Extending Standard TVRs

Penta-Gration (TAM Media Research India)  13,000 brands use 250 TV channels  Increasing evidence of ad avoidance  Additional TV measurements: TV ratings (200 channels, 73 cities, minuteby-minute ratings) Programme and Commercial Logs (number/lengths of breaks, programme credits, sponsor credits etc..) Content Diagnostics (impact of celebrities, events or storylines on TV Ratings) Placement Monitor (frame-by-frame capture of product placements) Recall values for standard commercials and product placement


$35 billion market

Platforms (console, online, mobile etc) Type of game and time spent Demographics of gamers Brand exposure (product placement) Emotion and Impact


Changing Media Research


Passive vs. Active measurement Developments in Print Online and emerging channels JICs can they be drivers of change?


The Future?
1. 2. 3.




Demand for more ROI and multi-channel planning tools Demand for single source data continues to grow Demand to be met either through  Passive measurement: TV, Radio, Outdoor, Internet  Fusion/Xmedia analysis software will continue to evolve but without the emergence of a single industry standard Move toward multi-channel planning tools not replicated by move toward multi-country planning tools (national standards will prevail) Emerging channels acknowledge the need for currencies and ROI measurement but industry standards are still in the future Advertisers will play a more prominent part

Criticism of Audience Measurement


Insufficient sample households surveyed to determine national audience size & traits. Only home reception surveyed. Is self-reporting, especially in diaries, truthful or accurate?


Often completed after the fact. Often votes for favorites rather than actual behavior. Recall often in error. Subject may distort diary to hide certain behaviors. Some demographics require statistical manipulation.

Criticism of Internet Audience Measurement

No single standard; multiple data collection methods yield contradictory reports.

Click-through counts as an ad view by some people, not by others. No guarantee of attention, perception, comprehension or recall.

Some ratings firms count duplicate website visits; others dont.

Types of TV Audience Measurement

Rating: The number of households tuned

to a particular program/the total number of households owning a TV set.

Share: The number of households tuned

to a particular program/the total number of households using a TV set at the time of the programs broadcast.

Extrapolate to estimate number of total viewers.

Types of Radio Audience Measurement

Rating: The number of persons tuned to

a particular program/the total number of persons owning a radio.

Share: The number of persons tuned to a

particular program/the total number of persons listening to radio at the time of the programs broadcast.

Minimum unit of audience attention: 15:00.

Learning More About Broadcast Audiences


Radio stations measure song preferences Call-out research & Group research Play hooks for listeners and chart feedback More dependence on national trends, less on local research Ratings used to determine: DJ hirings, firings, format adjustments, wholesale changes

Learning More About Broadcast Audiences

TV networks test programs

Subjects view pilots or season finales for current shows in theaters. Meters record their attitude toward the program shown.

Learning More About Broadcast Audiences

Program-makers can then re-shoot shows to make them more likeable TVQ: A measurement of audience attitude toward tv actors

Types of Internet Audience Measurement

Cookies record data from your computer each time you visit a website. Operators also offer discounts or prizes for information about you.

Audience Measurement Terms: Advertiser Costs


Cost Per Thousand (CPM): How much an advertiser spends to reach 1000 potential consumers? Audience of 200,000 over a month of ads Cost of advertising program $10,000 $10,000/200,000 = $.05 (5 cents per exposure) Gross ratings points: The number of spots x the average rating.

Audience Measurement Terms: Advertiser Costs

Cost Per Point (CPP): The cost of reaching an audience equal to one ratings point in a given market.

Audience Measurement Terms: Dayparts

A radio stations spot rates vary based on time of day (daypart) & average # of listeners during that daypart.

A TV stations rates vary based on daypart & the # of viewers for a particular program

Types of Spot Buys


Fixed: Spots must air @ specific times. Run-of-Schedule: Spots aired whenever a station sees fit. Frequency Discounts: The more time bought, the lower the cost per time a spot airs. Barter: Advertiser pays a station not in dollars but in goods or services. Cooperative Advertising: Manufacturer of a good sold by a local or national retailer pays part of a retailers time costs. Local Discount: Benefits local companies

Internet Advertising: Problems of Measurement


Fifteen hits could mean several things. Technology fails to account for repeat visits. Push programs visit sites but no human sees sites hit. Site visitors who click-through a banner ad can be counted, as opposed to all site visitors.

Site operators can charge a click-through rate. But a click-through rate higher than 2% is rare.

Internet Advertising: Types of Buys


Time spent online: The more time a visitor spends on a site screen, the more likely shell click through. Size: Rates may be based on ad size, measured in pixels. Cost per transaction: Rates may be based on a percentage of sales. Auction: A third party sells unused site space. Exchange: Site operators advertise on each others site. Co-op: In exchange for a piece of click-through sales, a site operator promotes a good or service.

New Ways to Track Audiences

Radio-Portable People Meter: A device

designed to track both in- & out-of-home reception to radio.

technology: GPS tech used to track out-ofhome reception of stationary messages, such as billboards.  TV- Sets can be equipped with meters that record transmissions of signals that transcend human senses.

Radio-TV-Global Position Satellite (GPS)

Television Audience Measurement

Measures and Vocabulary  Share: analogous to market share; refers to the success a program has in attracting viewers

Share = % of the total current viewing audience tuned into a particular program If there are 1M households watching tv, and 100,000 are watching a program, that programs share is 10

Rating: a measure of total eyeballs, therefore interpretation varies with total viewing audience (TVA)

Rating = % of the total potential viewing audience tuned into a particular program If there are 10M households with access to a television (have a tv in their home) and 100,000 watch a program, that programs rating is 1

Media Selection Procedures

Reach Number of Different People Exposed to the Message

Frequency Degree of Exposure Repetition

Factors to Consider When Selecting Advertising Media

Cost Per Thousand Efficiency of Selected Vehicles

Reach, Frequency and Media Planning

% of the Target Population Exposed At Least Once to the Advertising Message During a Specific Time Frame.


Number of Times the Target Population Is Exposed to the Advertising Message During a Specific Time Frame. Methods Include: Average Frequency Frequency Distribution

Combining Reach and Frequency Goals

Reach of an audience is not sufficient measure of an advertisings schedules strength. For anyone to be considered part of the reached audience, he or she must have been exposed more than once. This theory combines reach and frequency elements into one factor known as effective frequency.

Media planning for a target market

There are two different measures involved: Gross: Includes all members of a population regardless of their characteristics Gross Impressions (GIMP): total number of impressions across a total population Target: Includes only members of a specifically identified target market Target Impressions (TIMP): total number of impressions within a target population, e.g. impressions by 12-17 year old boys in Scottsdale, AZ Reach, CPM, Impressions, and Rating Points can be expressed as either Gross or Target. Assume Gross unless specifically stated to be Target.

Audience Measures Used in Media Planning

Gross (Target) Impressions: Total number of exposures, regardless of audience size or makeup If 1000 people are exposed to an ad 1 time, total impressions is 1000 If 100 people are exposed to an ad 10 times each, total impressions is 1000 Gross (Target) Rating Points: (Impressions Population) 100 While it looks like a percentage, it CAN be more than 100. Reach: Percentage of population exposed at least once Total Unique Audience Population Frequency: Average number of time a person in the reached audience is exposed to the ad Total impressions total unique audience CPM: Cost per thousand impressions (Ad Cost Impressions) 1000 OR Ad Cost Impressions (000)

What advertisers want

So we explained our vision

Additional research to enable advertisers to deliver messages optimally Quantitative, passive measurement system Multi-media audience research. Including new media & in-store Not tied to one technical research solution Large sample sizes Better target group descriptions Flexible and adaptive Single-source: Link between multi-media use and purchase behaviour
See the blueprint at

and initiatives started to happen

The single source approach Project Apollo

Media-research partners:
Arbitron: Portable People Meter ( PPM ) ACNielsen and Nielsen Media Research: Homescan

Pilot sponsors:
Kraft, Pepsi, Procter & Gamble, Pfizer, SC Johnson, Unilever

Media participation in encoding:

U.S. nationwide TV broadcasters, TV cable networks, Radio networks: Encoding signals Advertisers: Encoding ads

5,000 households, 11,000+ people ages 6+

PPM, Scanning, Surveys

Decision on panel expansion expected Q1 2008

Relate back to sales

The hub approach TouchPoints

Led by the IPA (agency asscoiation) Over 5,000 adults 15+ A tool which evaluates mixed media schedules, both for planning and post campaign evaluation. Time based study: Week in the life of consumer tracking;
where with whom main activities media usage and attitudes shopping habits mood..

Targeting on real consumer behaviour.. not basic demos

W25-54* Cable Network News Channel A News Channel B Lifestyle/Info Channel Rank (reach) 35 30 5 Brand X Purchasers Rank (reach) 1 2 3

Source: Project Apollo, Arbitron Inc & The Nielsen Company. Shows traditional sex/ age demo versus Apollo behavioral index (US data)

Syndicated Audience Data Collection

Diary: Ask people to keep a diary of what they watch Meter: records what channel a tv is tuned to People Meter: Records what channel is being watched as well as who is watching it

Syndicated Data Reporting

Nielsen Ratings are the most common Nielsen Television Index (NTI) for national ratings Nielsen Station Index (NSI) for local ratings Nielsen handout shows a typical NTI Report