media priniciplescontext to indian market 1212154937208855 8

8/2/2019 Media Priniciplescontext to Indian Market 1212154937208855 8

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Media Basics

(Caveat This ppt was built in 2004, but the basics andtheories of Media plan, are timeless)


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Part I : Media Terminology

TG & Universe

Reach, TVR & GRPs

Freq. Distribution & Effective Reach Duplication & Avg, Frequency

Cost per GRP

Share of Voice

Discrete reach

Selectivity


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Part II : Media Planning Concepts

C&S penetration

GRP Projections

Technique to apportion spends

Benchmarking

The optimization problem Channel buys

Duplication analysis

Daypart Viewership & Channel Shares

Generic Strategies Recency & Frequency

Value Additions

Scheduling

EF Estimator


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Part I :

Media Terminology


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Introductory Terms

TARGET AUDIENCE

Definition :The demographic group that has been

identified as-the key consumer group for the brand.

All marketing/advertising activity is concentrated on

reaching/appealing to this group.Usually defined in

demographics/ media consumption/ product

consumption

UNIVERSE

Definition :The actual number of individuals within the

defined target audience.


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Reach

Definition : The percentage of the target audience who

saw the commercial at least once during a given

campaign period.

In Practice :

Programme

Friends

Dynasty

MovieSport

News

Rating

32

21

1824

15

110 GRPs

UnduplicatedReach

32

11

9

7

4

63%

Cumulative Reach

32

43

52

5963

63% Reach


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TVR v/s Reach

A B C D E

1 # #

2 # # #

3 # # #

4 #

5 # #

Individuals

Minutes

People that saw the programme for atleast 1 minute :

A + B+D+E =4Therefore, Reach=4/5

Reach=80%


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Person Minutes Viewed Minutes AvailableA 3 5

B 1 5

C 0 5

D 2 5E 5 5

5 (A+B+C+D+E)

x 100

Ratings = On an average 44% of universe of the TG saw the entire

Time band

TVRs :(3/5)+(1/5)+(0/5)+(2/5)+(5/5)

TVR v/s Reach


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Gross Rating Points ( GRPs )

Definition : The sum of all ratings achieved in a given period.

In Practice : Our commercial appeared in the following programmes :

Programme RatingFriends 32%

Dynasty 21%

Movie 18%

Sport 24%

News 15%

110%

- 110 GRPs achieved (or 110% of defined universe)


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GRPs

GRPs = (TRPs in a media schedule)

GRPs = (S x TRPs) where S is #spots

GRPs = Reach x AOTS


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Normalising GRPs

How do we evaluate plans/ buying across differentbrands:

Eg. Brand A budget INR Rs 1mn- 200 GRPs with a 20sec commercial

Brand B budget INR Rs 1.2 mn - 125 GRPs with a 30second commercial

GRPs need to be normalized to the same duration inorder to calculate CPGRP.

Normalising A -1000000/(200*20/10)- CPGRP= 2500

Normalising B- 1200000/(125*30/10)- CPGRP 3200

The Brand A buy/plan is more efficient


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Definition : The reach delivered at actual frequency levels.

In Practice :

Frequency Distribution

0

10

20

30

40

50

60

70

1+ 2+ 3+ 4+ 5+ 6+ 7+ 8+

Frequency 1+ 2+ 3+ 4+ 5+ 6+ 7+ 8+

Reach% 63% 55% 44% 31% 23% 15% 11% 7%

Reach%

Frequency Distribution


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Definition : The percentage of the target audience who have

seen the commercial at the defined optimum

frequency levels.

In Practice : The optimum frequency level to achieve brandawareness may be 2+. The effective reach in the

example below is therefore 55%.

FrequencyDistribution

Frequency 1+ 2+ 3+ 4+ 5+ 6+ 7+ 8+

Reach% 63% 55% 44% 31% 23% 15% 11% 7%

Effective Reach


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1765

2852

103

836

148

Channel 1

ZEE Channel 2

Weekdays

TG-Females, 25-34 Sec ABC

Duplication- It is the number of people whoview a set of channels for a given period of

time.

Formula- Dup= Cum. Build- Unique cover

(Note- Duplication is calculated on a

weekday/weekend basis due to the differencein programming.)

Cumulative Build- Build up of reach as the

series progresses

It takes into account the duplication factor

Duplication and Cumulative build


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Plan 1

Plan 2

Ke n dr a P ro g r am C o st/ 30 " S po ts G R Ps

N etw or k C h itra h aa r 4 05 00 0 2 6 0

F ri .Fi lm 3 45 00 0 2 7 8

D D M etr o S u n d a y Fi lm 1 35 00 0 2 5 0

Su p erh it M u qu a b la 3 45 00 0 2 8 0

T o ta l 1 2 30 00 0 8 26 8

K e n dr a P r og r am C ost /30 " Sp o ts G R Ps

Netw or k Y ug 8 0 00 0 4 6 0

Sw abh im a an 20 0 00 0 8 8 0

D D M etr o S unda y Fi lm 9 0 00 0 2 5 0

A an kh o n D ekh i 12 0 00 0 4 8 0

T otal 49 0 00 0 1 8 27 0

Why Reach . . . & why not GRPs ?


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Kendra Program Cost/30" Spots Reach%Network Chitrahaar 405000 2

Fri.Film 345000 2

DD Metro Sunday Film 135000 2

Superhit Muquabla 345000 2

T otal 1230000 8 55%

Kendra Program Cost/30" Spots Reach%

Network Yug 80000 4

Swabhima an 200000 8

D D Metro Sunday Film 90000 2

Aa nkhon Dekhi 120000 4

T otal 490000 18 25%

Plan 1

Plan 2



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Plan 1 Costly268 GRPs

Only 8 spots

Plan 2 Cheaper270 GRPs

A total of 18 spots

But the most important element is that Plan-2 reaches out to 30% lesser potential target audience than Plan-1

Therefore Plan 1 is better optimised plan, and with lower Cost per Reach to reach the TG.



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Average Frequency

Definition : The number of times, on average, the audience

reached sees the commercial during a given period.

Formula : Average Frequency = Total GRPs Reach or

GRPs = Reach x Average Frequency

In Practice : 110 GRPs 63% Reach = 1.75 Average Frequency

Therefore, 63% of the target audience will see

the commercial on average 1.75 times during thegiven period.


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reach reachAOTS

When the duplication is lower the reach increases

and average OTS decreases(When dupln. is 10, reach goes up to 63% and AOTS becomes 3.15)


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AOTS.rch rch

When the duplication goes up reach decreases

and average OTS increases

(When dupln. is 40, reach decreases to 53% and AOTS is now 3.75)


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Definition : The cost of buying one rating point.

Formula : Cost GRPs = Cost per GRP

In Practice : INR Rs.220,000 55 GRPs = Rs.400

cost per GRP

Cost Per GRP ( cost per point )


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Share of Voice ( SOV )

A measure of media weight distribution as a % of the total

GRPs delivered by the category

A more reliable measure of relative weights because :

measures a parameter that directly links media to TG

smooths out differences in media buying among brands in

the category


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Discrete Reach vs Effective Reach

78

62

49

40

29

23

18

1411

8

0

10

20

30

40

50

60

70

80

90

1+ 2+ 3+ 4+ 5+ 6+ 7+ 8+ 9+ 10+

Discrete Reach at 1 =

% TA who saw the ad exactly once = 78


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Maximizing at 3+

0

10

20

30

40

50

60

70

80

90

1+ 2+ 3+ 4+ 5+

Undesirable1

Undesirable2

Ideal


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Other Terms

Share of Spends:Brand spends/ Category spends*100

Selectivity: The profile of a channel/ medium

Formula= Total Reach in (000) of the channel or

medium / reach in (000) of the same in the TG

Usually done on market basis, as viewing habits

are different: eg. North West/ TN/ AP/

Karnataka/Kerala- viewing habits is the key

factor.

Also, selectivity is done on a weekday/weekend

basis.


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Reach Selectivity-North-West Weekdays

0

200

400

600

800

1000

1200

1400

1600

1800

Ch1

Ch2

Ch3

Ch4

Ch5

Ch6

Ch7

Ch8

Ch9

Ch10

Ch11

Ch12

Ch13

R

each

0

2

4

6

8

10

12

14

16

Sele

ctivity

4Weeks 8Weeks SI

TG-Females, 25-34 Sec AB


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Part II :

Media Planning Concepts


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C&S penetration

C&S penetration is many time used to understand

channel mixes required

It is also referred to see if there are certain marketswhere C&S/n C&S inputs are not required due to

negligible target audience size


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GRP projections

TAM does not provide GRPs for all the geographies

across India

Projection factors are used to project GRP s fromcentres that are reported to the centres that are

not

This helps get a feel of the media weights aligned

across India


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Technique to apportion spends A logical connection from GRP distributions

across India

Enables us to gauge the amount of money spent

on each market

Uses the principle of Gross Impressions rather

than plain population size GI = (GRP x TA size) /100

The spends will be apportioned in accordance

with the GI salience across the geographies


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Benchmarking

Benchmarking of effective frequencies

Estimation of possible planning levels

Benchmarking channel CPGRP s for buying

For a particular programme mix, for a TA each

channel will have a typical CPGRP

This will be used as benchmarks for negotiating


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The optimization problem

Having defined EF objectives , do we go all out?

6+/60 % might be inefficient to achieve

Develop a method to estimate most efficient reachpoint to cut off at


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Channel buys

The amount of GRP s bought on a channel

For example in the case of Zee TV , channel buy

would be the total GRP s delivered across thenorth/west and eastern belt as an aggregate

A combined GRP figure in the n/w/e belt would lead

to different GRP s delivered in the areas that form

part of the combination


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Duplication analysis

Application of set theory

Used in order to build upon outputs of optimizers

Leads to day part buying decisions


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Daypart viewership and channel

share Day part viewership traces the viewing habits of the

target audience

Usually peaks are chosen to advertise During the peak the channel shares are plotted in

order to determine the dominant channel

Used for cross channel scheduling


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Generic strategies

Maximize reach

Buy in channels/dayparts that increase the

absolute number of people reached

Maximize frequency

Identify channels/dayparts that lead tomaximization of duplication


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Recency and frequency

Recency

Maximize reach at 1+ at a weekly level

Optimize reach level to be attained

Frequency

EF levels set at anything above 1

AOTS tends to be high in these kind of plans Optimization is done on this also


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Value additions

Free of cost innovative media presence subject to

bulk spending

Innovative presence that are charged at a lowerrate than standard advertising


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Scheduling

Continuity

Pulsing

Drip


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EF estimator


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Thank you

media priniciplescontext to indian market 1212154937208855 8

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