MEDIA BUYING 101RADIO TV CABLE

Cyndy Murrieta

SOME TOPICS IN

We’ll cover General Media Terminology

What’s the lingo? How is broadcast planned? Basics of TV, Radio and Cable

TODAY’S PRESENTATION

WHAT IS A RATING POINT?

So, if The Voice does a 5 rating in Atlanta with Women 25-54 on one particular night, that means......?

...that 5 % of all women 25-54 in Atlanta are watching The Voice on that night.

WHAT IS A SHARE?

And so...If Scandal does a 12 share in Orlando with Women 25-54 on one particular night, that means......?

The percentage (%) of the target universe who are watching TV at that moment and who are watching that particular show.

1 Share Point =1% of the target universe actually watching TV at that moment

...that 12% of all women 25-54 in Orlando who are watching TV that night are watching Scandal.

RADIO AND TVGRPS Gross Rating Points

GRP is umbrella term, you might hear TRP which is “Targeted Rating Points” used for demos. But really no difference between GRPs and TRPs.

If we are buying 5 spots in a show that does a 2 rating, that is 10 GRPs

If we are buying 100 GRPs/week for 4 weeks, that is 400 GRPs for the total campaign.

Can the Rating be higher than 100%?No, maximum of 100% of the target audience can watch a program at a particular time

AND THE GRPs?Yes, as a cumulative figure, can easily go above 100

RADIO AND TVREACH AND FREQUENCYREACHPercentage of our target universe that was exposed at least once to an advertising schedule. Usually measured over 1 or 4 week period, and only for the whole campaign, not one station. Measures different viewers with no duplication. Example:

Target Universe = 1,000,000 A campaign achieves 80% reach in 1 week 80% of the target have seen the commercial at least once 800,000 of the target have seen the commercial at least once

FREQUENCYThe average number of times that each person is exposed to a brand’s advertising campaign or schedule. Example:

Average Frequency of 4.0 means that, as an average, every person reached has seen the commercial 4 times.

This is an average, which means that some people have seen the commercial more times, and some less.

IMPRESSIONSTHE GREAT EQUALIZER

Once we know how many GRPs we are buying in a market, and we know the population for our demo, we can calculate the gross impressions

1% of the Population of the target audience in the market x GRPs

There are 426,500 age 25-54 women in Orlando

We reach 1% of that number with 1 rating point, or 4,265

4,265 x our total GRPs in our campaign of 400 = 1,706,000 Gross Impressions

Impressions are the one measurement that can be used across all mediums

RADIO AND TV

Reach X Frequency = Gross Rating Points GRPs / Reach = average frequency Examples:

100 GRPs divided by 33% reach = 3 times average frequency impact

65 reach x 4 frequency = 260 GRPs

BORING MEDIA MATHWe want to reach listeners at least three times, for effective frequency impact.

PLANSO HERE’S HOW WE

Knowing our CPP in the market, we can estimate costs for a schedule in that market General rules of thumb that most media planners believe:

You should plan for no less than 100 GRPs/week in a market for TV You should plan for no less than 75 GRPs/week in a market for radio

If TV is in the plan, generally you would price out the TV first before looking at all media allocations because it will gobble up the most money

Variables such as extra promotion can help “fluff up” lower GRP levels

So we know that if a CPP for radio in Atlanta is $325, and we buy 100 GRPs for 4 weeks, that will cost us...?

ENTER STAGE LEFT: THE FLOWCHART

CALCULATORS!

$130,000

(Adds up, doesn’t it?)

BUT BEFORE WE BUY

First: Quantitative Research A radio ranker of

Orlando stations This lists top 20

stations for Women 25-54

We can have this report run for any combination of dayparts and demographics Example: who

has the top morning drive show?

WE NARROW OUR OPTIONS

QUALITATIVE RESEARCH

Station rankings could change substantially when we add qualitative factors

NEXT:

BUT BEFORE WE BUY TV CAN BE MUCH MORE COMPLICATED

QUALITAP™ Target ProfileATLANTA - Release 1 2013 Feb12-Jan13 ScarboroughQualitative Criteria: Adults 65 +DMA Survey AreaVisited Florida Panhandle (yr)

Profile ranked by index Target Persons Base Persons IndexTypically watched television programs are reality - adventure 8,137 51,028 162Typically watched television programs are sports 41,767 282,172 151Typically watched television programs are Mystery/suspense/crime 37,844 259,406 148Typically watched television programs are national/network news 31,888 224,067 145Typically watched television programs are documentaries 26,622 210,345 129Typically watched television programs are comedies 24,741 207,896 121Typically watched television programs are movies 44,184 400,654 112Typically watched television programs are local news - morning 41,598 384,699 110Typically watched television programs are reality - talent 8,416 83,323 103Typically watched television programs are game shows 17,159 174,265 100Typically watched television programs are local news - evening 42,809 473,971 92Typically watched television programs are dramas 19,312 214,084 92Typically watched television programs are local news - late 17,378 209,558 84Typically watched television programs are science fiction 6,839 85,912 81Typically watched television programs are daytime soap operas 5,293 73,520 73

Programming selection varies substantially by demographic

CABLE BY NETWORKBEFORE WE BUY

QUALITAP™ Target ProfileDALLAS-FT. WORTH - Release 1 2013 Mar12-Feb13 ScarboroughQualitative Criteria: Women 25 - 49 DMA Survey AreaVisited Orlando (yr) or visited other places in Florida (yr)

Profile ranked by index. Target Persons Base Persons IndexWatched We TV (wk) 24,091 70,526 260Watched TCM (Turner Classic Movies) (wk) 26,200 78,828 253Watched Golf Channel (wk) 6,359 22,680 213Watched Hallmark Channel (wk) 35,226 126,031 213Watched FS Southwest/FOX Sports Southwest (wk) 14,229 51,160 212Watched FSN/FOX Sports Net (wk) 14,229 51,160 212Watched Boomerang (wk) 7,820 28,302 210Watched GSN (Game Show Network) (wk) 4,877 17,706 210Watched CMT (Country Music Television) (wk) 16,786 61,037 209Watched AMC (wk) 39,337 147,916 202Watched VH1 (wk) 41,705 167,143 190Watched Spike (wk) 28,593 117,666 185Watched NFL Network (wk) 12,335 51,784 181Watched CN (Cartoon Network) (wk) 15,370 65,795 178

Network selection, and individual programming selection, varies substantially by demographic

RADIO

RADIO Arbitron was for years the primary

radio research firm but was bought by Nielsen in 2013

Methodology Diaries in smaller markets PPMs in 48 larger markets

PPMs Portable People Meters Looks like a pager Detects radio stations that PPM carriers

are exposed to Passive data collection, versus trying to

remember what you actually listened to

 In December, Nielsen announced an increase in the panel in 48 Portable People Meter (PPM) markets as part of its ongoing efforts to advance audio measurement.

Will increase by 10% across all markets and demographics starting mid-2017.

NIELSEN

RADIO

Dayparts Morning Drive: 6a-

10a Midday: 10a-3p PM Drive: 3p-7p Evening: 7p-12m Overnights: 12m-6a Weekends ROS = run of station

LINGO - DAYPARTS

Primetime for radio is 6am-7pm

RADIO

Radio is purchased in Nielsen-designated metro areas.

There are 302 radio metros in the U.S. Most radio metros cover two to four

counties Some rural areas of the U.S. are not in

radio metros. Those areas are called “non-metro.”

LINGO - GEOGRAPHY

QUESTION:WHO CAN GUESS WHAT RANK ATLANTA IS?

NIELSEN RADIO MARKETRANKINGS

NIELSEN RADIO COVERAGEATLANTA

Atlanta radio metro cover 20 counties in the Metro area: Fulton, Cobb, DeKalb, Gwinnett, Barrow, Walton, Newton, Henry, Clayton, Spalding, Fayette, Coweta, Carrell,Rockdale,Douglas, Paulding, Bartow, Cherokee, Forsyth, and Pickens

The MSA goes into a couple counties in Alabama and up into North Carolina!

RADIO AC = adult contemporary CHR = contemporary hits Hot AC, Jack, Alice, Bob etc. Rhythmic CHR (includes HipHop,

Rap) Urban Contemporary Country, Young Country, Modern

Country, Classic Country Rock, Album Rock (aka AOR),

Classic Rock, AAA, Alternative News/Talk, Talk, All News Christian – music, ministry,

gospel Classic Hits, aka Oldies

LINGO - FORMATS

QUESTION:What is the top radio format in the US for Adults 25-54?

RADIO Young audiences

CHR, Mix, Alice, Jack, urban, rock Females

CHR, AC, Mix Males

Rock, classic rock, sports talk Broad reach

Country Older listeners

AC, classic hits, news/talk, talk Niche

Fine arts/classical Christian/various religious National Public Radio (underwriting

mentions only)

TARGETING BY FORMAT

RADIO Bigger the market, higher the CPP Different target demos, different CPPs CPP varies by daypart. Drive times

cost more. Weekends and evenings cost less.

Examples from SQAD, our cost per point service Atlanta: Adults 25-54, AM Drive:

$533 Chicago: Adults 25-54 PM Drive:

$659 NYC: Adults 25-54, AM drive:

$1,142 Birmingham: Adults 25-54, PM

Drive: $72

SQAD CPPs are usually very high; radio is usually somewhat negotiable

PRICING, COST PER POINT

RADIO

“Tight market” = not much availability, high prices. Typically Apr-Jun and Nov-Dec. Prices are high during these times.

Political campaigns could affect demand

Low-demand periods – usually first quarter, January through early March. Prices are negotiable in low-demand periods.

Demand periods vary by market Jan-Feb – low demand in cold

weather markets Jan-Feb – could be high

demand in destinations that have seasonal population fluctuations

PRICING, SUPPLY & DEMAND

SPOT RADIO VS.

Spot – specific markets, stations individually purchased, or purchased in ownership groups.

Local networks – typically news/weather/traffic networks

Regional – statewide networks, agricultural networks, sports

National – coast-to-coast coverage, such as ABC Radio Networks, Westwood One, Sirius/XM

RADIO NETWORKS

RADIO Strong medium for promotions Live endorsements are a possibility Nimble with messaging/creative Frequent, loyal listening can lead to

high frequency impact Emotional connection to listeners Works well in conjunction with other

media – digital, TV, print, etc. Low production cost compared to

many other media. Stations will often produce spots at no charge, if we supply a script.

WHY RADIO?Radio reaches

91% of Americans 12+

every week

RADIO The percentage of Americans 12 years of age or older who have

listened to online radio in the past month has once again continued to grow – rising from 53% in 2015 to 57% in 2016. * That share is about double the percentage of Americans

who had done so in 2010 (27%). 73% listened on smartphones, while 61% listened on desktops and

laptops (2015 data)

DIGITAL AND IN-CAR LISTENING

*Edison Research

Satellite and web-based listening in cars• Sirius XM – the only satellite radio platform in the U.S. – reported an uptick in subscribers every quarter

since 2015.• Web-based radio listening in cars held about steady – so starting to level off• 37% of U.S. adult cellphone owners have listened to online radio in the car, about six times the share (6%)

who had done so in 2010.• Traditional AM/FM radio is – and by a large margin – the most common form of in-car listening.

• Just 8% of listeners in the car named online radio as the source they used most often and 12% named satellite radio, compared with 63% who named AM/FM radio as the audio source they turned to most often.

Bonus question:

Netflix has 86 MILLION subscribers!

How many subscribers does Sirius/XM have? (closest wins!)

31.3 Million

Everyone loves

charts!

TELEVISION

TELEVISION Nielsen is the primary TV research firm The world’s largest market research firm It’s spelled N-I-E-L-S-E-N Methodology

LPMs in 25 larger markets Meters and diaries in 31 medium-size markets Diaries in 154 smaller markets

LPMs Local People Meters Passive viewing measurement, similar to

Arbitron’s PPMs Since Nielsen recently purchased Arbitron, it’s

expected that very soon the PPM and LPM technology will merge

NIELSEN

TELEVISION

Dayparts Early Morning: 6a-9a Daytime: 9a-3p Early Fringe: 3p-5p Early News: 5p-6:30p / 6p-7:30p Prime Access: 6p-7p / 7p-8p Prime Time: 7p-10p / 8p-11p Late News: 10p-10:30p / 11p-

11:30p Late Fringe: 10:30p-12m /

11:30p-1a Overnight: 12m-6a / 1a-6a Weekend a.m. news: 6a-11a

Daypart definitions change by time zone

LINGO - DAYPARTS

Definitions are a little loose.

Early news can run at 4p, early morning can start at 5a, Late fringe can start at 11pm on

stations with no 11pm news, etc.

TELEVISION

TV is purchased in Nielsen-designated DMAs – “Designated Market Areas”

DMA essentially means “this is where you get your TV from.” For example, Wilmington, Delaware is in the Philadelphia DMA.

There are 210 TV DMAs in the U.S. TV DMAs can range from just one or two

counties (St. Joseph, MO) to entire states (Salt Lake City, UT).

LINGO - GEOGRAPHY

WHO WANTS TO TRY AND NAME 5 OF THE TOP 10 RANKED MARKETS?

NIELSEN MARKETRANKINGS

TELEVISION

Network – usually refers to national networks, such as NBC, CBS, ABC, Fox

Regional networks – typically sports networks

Spot – runs in one market A spot that runs on the CBS affiliate

in Indianapolis is not a “network spot.” More correctly, that’s a spot that ran on a “network affiliate.”

SPOT VS. NETWORK

TELEVISION Many options, much more refined targeting than

radio Local stations have limited avails in prime time

and other network-feed areas, which often leads to high prices.

Local programming, such as news areas, usually has much more inventory and rate flexibility.

Questions to be addressed: Does this program reach the right

demographic? What is the tone of this program? Is it correct

for what we’re selling? Is it image-appropriate? Are we paying an efficient rate to be in this

specific show?

TARGETING BY PROGRAM

Who can guess the top rated

show for the 2015-2016 season

for Adults 18-49?

How about the top sitcom for

Adults 18-49?

All the averages  (with a couple of exceptions, noted with asterisks) include live viewing plus seven days of DVR and on-demand playback, and are for original telecasts only.

TELEVISION

“Tight market” = not much availability, high prices.

Typically tight during ratings sweeps periods, when the best new programming is on: May and November.

Political seasons can be HELL to local TV markets

Inventory can also be tight in September-October, when the new shows are rolled out, and December, prior to holidays

Other sweeps: February and July. Low-demand periods – usually first

quarter, January through early March, and summer, June through August, when lots of reruns are aired. Prices are negotiable in low-demand periods.

PRICING, SUPPLY & DEMAND

TELEVISION

Bigger the market, higher the CPP Different target demos, different

CPPs CPP varies by daypart. Prime time

costs the most. Late news can often be pricey. Early morning, daytime, and early fringe cost less.

Examples from SQAD, our cost per point service Orlando: Late News $560 New York: Prime $5,696 Chicago: Early News $1,059 Kansas City: Prime $311

SQAD CPPs are usually very high; TV is usually somewhat negotiable

PRICING, COST PER POINT

TELEVISION

TV avails – essentially, a menu of what’s available, listing costs and projected ratings per spot

I usually ask for a proposal as well for the rep to give it their best shot

We negotiate down to a level that will run. . . …because if we negotiate too low,

our spots will get bumped out by advertisers who pay higher rates for that time.

Work on the buy in our media software system (Strata, MediaOcean, etc.) to finesse all the stations submissions to meet the “specs” of CPP and total GRPs

BUYING PROCESS

TELEVISION

Reps contact buyer regarding preemptions – spots that didn’t run Sports programs that ran long Weather bulletins Other advertisers willing to pay

more for the time We negotiate make-goods – equal or

better programs and ratings to make sure we deliver GRPs and impressions in the end

POST-BUY

TELEVISION Vivid imagery – color, sound, motion A strong direct response medium – you

can see the URL or phone number Wide array of programming selections

= high degree of target-ability Good creative can lead to strong

viewer engagement TV remains the #1 influencer across

the purchase funnel

WHY TV?

Source: TVB/The Futures Company; “Purchase Funnel 2012”

A WEEK IN THE LIFE FOR THE TOTAL U.S. POPULATION

Q1 2014: Weekly Time Spent (Hrs:Min)

So, to sum up: Young people watch much less TV than older people, and they are watching less every year. But! Young people still watch a ton of TV, and Americans as a whole watch so much TV that it is literally unbelievable.

CABLE TELEVISION

CABLE TV Nielsen is “challenged” by cable

measurement. Many individual shows do not meet

minimum reporting standards; it is difficult to obtain viewership data.

Cable “footprint” does not match TV DMA, making ratings calculation difficult – leading to “Cable DMA” ratings.

You can buy entire interconnect (full market) or you can buy zones based on where you need to reach. When you are buying zones, you

would look at impressions vs. GRPs generally because of universe variations.

MEASUREMENT

CABLE TV Dayparts

Same as TV Cable prime time ROS is 6p-12m.. Cable is often sold on a broad rotation

basis. Limited local avails make it difficult to

purchase specific shows – but it IS possible to do so and with the popularity of some cable shows now it’s very important to look at

Interconnect – a consortium of local cable operators. Example: the cable operator that covers the east side of town, purchased in conjunction with the operator that covers the west side. Atlanta example: Interconnect includes

both AT&T U-Verse and Direct TV

LINGO

CABLE TV

National network – runs nationwide on networks such as USA, A&E, ESPN

Regional networks – typically sports networks; occasionally news networks

Spot – runs in one market Cable networks are always

referred to as “networks” rather than “stations”

SPOT VS NETWORK

Who can guess the top ad-

supported rated cable

network in 2016?

Homecoming Court:

WHY CABLE? Spot cable CPPs are usually much higher

than broadcast CPPs. . .

. . . But there are several reasons why we buy local cable:• Generally, lower out-of-pocket cost can

lead to greater frequency impact• Can target specific neighborhoods/areas

of a large DMA - the orginal “geo-targeting”

• Niche networks or programming can be a good fit

• If broadcast availability is tight, cable can be a reasonable alternative

• Much of hot prime time programming now is on cable vs. broadcast – and prime is more affordable.

PLANNING PROCESS

Ideation: Decide on ideal media mix based on goals and strategy

Costing: If broadcast is on the plan, price out TV and radio first

Allocate: Determine what other media should bring to table

and allocate budgets for each

Develop: Think about how you should maximize each medium

(tactics, meet with various vendors to explore options)

THIS is the part that takes the longest and where the creativity comes in!

Finesse: Finalize to budget goal, ensure final plan is on

strategy, obsess about flowchart and formulas, answer questions from

Account Service why it’s taking so long