Media strategyMedia strategy

• ReachReach– Unduplicated exposures – gross impressionsUnduplicated exposures – gross impressions– Number of different people exposed to the Number of different people exposed to the

messagemessage

• FrequencyFrequency– Average number of exposuresAverage number of exposures– How many times audience is exposed to How many times audience is exposed to

messagemessage

Media strategyMedia strategy

• Best frequencyBest frequency– Outdoor, newspapers, magazinesOutdoor, newspapers, magazines

• Best ReachBest Reach– Network advertising, magazinesNetwork advertising, magazines

• Best combinationBest combination– RadioRadio

Media strategyMedia strategy

• Calculating cost efficiencyCalculating cost efficiency

• Cost per thousand (CPM)Cost per thousand (CPM)– How much it costs to deliver 1000 gross How much it costs to deliver 1000 gross

impressionsimpressions– How much to reach 1000 listeners, viewers, How much to reach 1000 listeners, viewers,

readers, households, etc.readers, households, etc.

CPMCPM

Cost of ScheduleCost of ScheduleGross ImpressionsGross Impressions

2 spots @ $8.00 each2 spots @ $8.00 each1 reaches 4500 QHP1 reaches 4500 QHP1 reaches 3500 QHP1 reaches 3500 QHP

1000 = Cost Per Thousand1000 = Cost Per Thousand

CPMCPM

• 4500 + 3500 = 8000 gross impressions4500 + 3500 = 8000 gross impressions• 2 spots @ $8 = $16 – cost of the schedule2 spots @ $8 = $16 – cost of the schedule

• $16$16 ÷ ÷ 8000 =8000 =

• .002 .002

• .002.002¢ ¢ per personper person

• X 1000 = 2.00 X 1000 = 2.00 • $2 per 1000 QHP$2 per 1000 QHP

CPMCPM

Number of spots Cost per spot Total cost QHP Total QHP1 80 34008 10 29134 10 5825

Totals

CPMCPM

Number of spots Cost per spot Total cost QHP Total QHP1 80 80 3400 34008 10 80 2913 233004 10 40 5825 23300

Totals $200 50000

200 200 ÷ 50000 = .004÷ 50000 = .004

CPMCPM

Number of spots Cost per spot Total cost QHP Total QHP4 11 265008 15 3000

10 19 4700Totals

CPMCPM

Number of spots Cost per spot Total cost QHP Total QHP4 11 44 26500 1060008 15 120 3000 24000

10 19 190 4700 47000Totals $354 177000

354 354 ÷ 177000 = .002÷ 177000 = .002

Waste circulationWaste circulation

• Reaching people who are not the desired Reaching people who are not the desired audienceaudience

• Demographics = age, gender, incomeDemographics = age, gender, income

• Psychographics = “lifestyle”Psychographics = “lifestyle”

Audience researchAudience research

• How we know the size of the audience How we know the size of the audience reachedreached

• Rating = percentage of all possible Rating = percentage of all possible viewers or listenersviewers or listeners

• Share = percentage of people using mediaShare = percentage of people using media

• Share is always a larger numberShare is always a larger number

Audience researchAudience research

All possible viewers or listenersAll possible viewers or listeners

100%100%

Audience researchAudience research

TVHHTVHH

100%100%

Audience researchAudience research

HUTHUTNot viewingNot viewing

HUT level = 50HUT level = 50

50%50%

Audience researchAudience research

Tuned to our spotTuned to our spot

Not viewingNot viewing

Audience researchAudience research

25% of TVHH – 50% of HUT25% of TVHH – 50% of HUT

Audience researchAudience research

Rating = 25 Rating = 25 Share = 50Share = 50

Audience research termsAudience research terms

• Gross ratings points Gross ratings points

• Average quarter hour people (QHP)Average quarter hour people (QHP)

Audience researchAudience research

• Began in the 1920s with radio listenershipBegan in the 1920s with radio listenership

• Archibald Crossley personal interviewsArchibald Crossley personal interviews

• C. E. Hooper – C. E. Hooper – Hooperatings Hooperatings – personal– personal

• A. C. NielsenA. C. Nielsen– DiariesDiaries– AudimeterAudimeter

AudimeterAudimeter

A.C. NielsenA.C. Nielsen

• Now only television ratingsNow only television ratings

• Use diaries, audimeters and “people Use diaries, audimeters and “people meters”meters”

• Meters used for “overnights”Meters used for “overnights”

A.C. Nielsen terminologyA.C. Nielsen terminology

• Total survey area (TSA)Total survey area (TSA)

• Designated market area (DMA)Designated market area (DMA)– Every county in the U.S. assigned to a DMAEvery county in the U.S. assigned to a DMA

• Metro survey area (MSA)Metro survey area (MSA)

Market areasMarket areasTSATSA

TSATSA

DMA/ADIDMA/ADI

DMA/ADIDMA/ADI

MSAMSA

ArbitronArbitron

• Radio researchRadio research

• DairiesDairies

• Developing the “personal people meter” Developing the “personal people meter” (PPM)(PPM)

Arbitron terminologyArbitron terminology

• Total survey area (TSA)Total survey area (TSA)

• Area of Dominant Influence (ADI)Area of Dominant Influence (ADI)– Every county assigned to an ADIEvery county assigned to an ADI

• Metro survey area (MSA)Metro survey area (MSA)

Problems in audience researchProblems in audience research

• Poor return rates of diariesPoor return rates of diaries

• Absenteeism – controlled by PMsAbsenteeism – controlled by PMs

• HypingHyping

• What does “listening” or “viewing” really What does “listening” or “viewing” really mean as it relates to advertising?mean as it relates to advertising?