January 24, 2008 Marketing and Media Planning
Week 3
Objective: The students will take a short quiz to see if they can identify popular advertising slogans. The students will discuss why people could remember products names. The students will learn about media ratings, shares, huts, puts, impressions and demographic target audiences. The students will learn what a Standard Broadcast Calendar is and how it is used. The students will learn how to calculate gross rating points and impressions. The students will discuss seasonality and the difference in viewing patterns due to weather, vacations, etc. The students will be introduced to the concepts of Reach and Frequency. The students will learn the formulas for Reach and Frequency. The students will learn that Reach and frequency are generally calculated over a 4 week or month long period.
The students will create a chart, divide it into 3 columns in order to discover places they see ads, specific vehicles the see the ads on and specific products they see on those vehicles. The students will determine who is buying and who is selling. The students will break up into informal groups, will appoint a group leader, determine who should be advertising in the Superbowl and make one group list of those advertisers. The students will exchange papers with another group and we will discuss in class what advertisers they have on their list. Part of their homework assignment is to compare the list with advertisers who actually advertised in the Superbowl.
Materials needed: Focus, Pencil, paper or computer., Standard Broadcast Calendars, quiz
Focus: The students will take a short quiz to determine if they can recall who the advertiser is.
Explanation: I will tell the students that we are going to review ratings from last week. I will tell the students that we are going to learn about various advertising terms and how they relate to each other such as shares, impression, huts, puts, and target audiences. I will tell the students that we are going to learn about the concepts of Reach and Frequency. I will tell the students that they are going to learn formulas for Reach and Frequency. I will tell the students that they are going to learn about the Standard Broadcast Calendar what it stands for, how it is different from a regular calendar and how it is used. I will tell students that we are going to do some in class exercises to look at different places advertisers advertise and that we are going to discuss who is buying and who is selling.
Review:What is the most important broadcast term (rating) What do buyers and sellers negotiate costs on? (rating). What are the five things that every media plan must address? Who, what, where, when, how.
Give me an example of a medium-TV, Radio, Outdoor. Of a vehicle-Dallas Morning News, The Today Show, Soap operas, Talk shows, KZPS-FM, KISS-FM, WBAP-AM
Questions:
- What is a rating?
- What is a share?
- What is HUT/PUT?
- What is Reach?
- What is Frequency?
- How does advertising work?
- How does it make you buy things?
- Do you have to hear/see the advertisement several/many times before you remember it?
- Do you always/ever believe advertising? Why or why not?
- Does it matter where you hear/see an ad as to its believeability…Do you believe the internet and not the TV?
- Have you ever been the victim of false advertising? How? How did it make you feel?
Share: Percent of HUT/PUR tuned to a particular program
GRP-Gross Rating Point. The sum of ratings delivered by a list of vehicles. Duplicated
Impressions are numbers of people. Duplicated
Exclusive Reach-The number of DIFFERENT individuals or homes exposed to an advertising campaign over a given period (usually 4 weeks). It is unduplicated and expressed as a Percentage.
Frequency-the average number of times individuals or homes are exposed to a broadcast program within a 4 week period. It is a measure of repetition.
The Teacher Teaches: I will pass out the homes in the baggies and go over these terms: HUT- means Households using Television. This is the % of homes using TV at a given time of day. Pull out your homes. In the first 2 homes they are viewing Greys Anatomy. In the 3rd home they are viewing CSI. In the 4th home MTV videos. The 5th house is not watching anything. Of the 5 TV homes in your universe, 4 are viewing TV. The HUT is 4/5 or 80%. We say that this is an 80 HUT. Reviewing, Greys Anatomy has a 40 rating (2/5 or 40% or a 40 rating) CSI=20 rating, MTV=20 rating. Total ratings 80 HUT. (The same can be applied to radio, but the term is PUR (Persons using radio)) When we are talking about people instead of households, the term is PUT (People using Television. The difference comes from the population base. Lets assume like last week that in your HH 1 we have 1 person watching Greys and one not watching anything. In HH 1 person is watching Greys and the other person not watching TV. In HH 3, 1 person is watching CSI and 1 person is not watching TV. In HH4, 1 person is watching MTV and the other person is not watchint TV. In HH5, neither person is watching TV. Although 80% of the Households or Homes are using TV we only have 1 person per household in 4 of the 5 homes watching TV. While the HUT is 80, the Put is? (40…40%. 4 people viewing divided by a population base of 10. The % always refers to the available Universe with a TV or radio in their homes, as opposed to the total population…although most people have TV’s in their home, not ALL do, so those people cannot be counted in the universe.
Seasonality-HUT levels vary by season? Why? (weather, reruns, livestyles, holidays, work habits, writers strikes) HUT levels vary gy geographic areas. TV useage levels generally are lower in the morning, daytime and late night. Why? (Work, sleep) and lower in warm weather…why? (vacation, outdoor activities) When TV viewing is at its lowest, radio listenership (and now IPOD) useage is usually at its highest…in summer months. People are outdoors, at the beach, having barbeques, going to events and they want to take their music with them.
HUT levels by quarter-----Put HUT Levels on board
Q1 64%, Q2 53% Q3 48%, Q4 61% (Average M-Su 6a-12m)
HUT levels by T.O.D. Primetime is highest.
HUT levels by Region---NE 28%, Central 36%, South 25%, West 22%, National average 29% (M-Su 6a-12m) Can any one guess why Central time zone is highest? Earlier Prime time 7-10 instead of 8-11.
HUT levels by Market- New York 30 Portland ME 11 Chicago 42, Des Moines 33 Miami 21.
The terms HUT and PUT are often interchanged by clients , agency people and other people in the industry, but important to remember that HUT is Households and PUT is people.
Like HUT levels, PUT levels also vary and the variations are different from one group to another. Can anyone guess what group of people consistently watch more TV than any other group? Women…They watch more…and they also keep track better.
For Radio, PUR levels also vary. (Not a term HUR –households using radio) Adult listening is highest in what is called Drive Time 6-10a and 3-7P. Teen PUR is highest in PM drive (except summer when teens not in school. Some stations still program to school being in and out of session, however computers and IPODS are changing the radio landscape and less and less stations are programming to young people.
Radio time bought and sold also in ratings and in the following time periods:
6-10a AM Drive 10-3P Midday (formerly Housewifes time) 3-7P PM Drive, 7p-12m Evening 12m-6a Overnight and weekends the same as above.
Generally the highest listening timeperiods are M-F 6-10A and Sat 10a-3P.
Talked about Ratings, Talked about HUT/PUT/PUR, now we’re going to talk about SHARE. Share is the % of HUT tuned to a particular program. Share also applies to PUT and PUR. In the business world, “Market share” is used as a benchmark to express % of total industry sales dollars a company has. Share in TV or radio is similar. It states what % a program or station has of the total viewing or listening audience. Go to your little houses.
Home 1 and 2 are watching Greys anatomy. Home 3 CSI, Home 4 MTV and Home 5 not watching.
4 out of 5 homes are using TV in this example.
Greys anatomy has 2 out of 4 homes watchong or 2/4 or a 50 share. CSI has 1 out of 4 homes watching or ¼ or a 25share. MTV has the same. *****Share is not about the total homes that have TV. Its about the the total homes that have TV that are turned on. So, in this example, Home 5counts when we are talking about HUT, but it does not count when we are talking about share.
Ratings, Shares and HUTS are all interrelated. By knowing any 2 we can calculate the third and this is what media buyers and sellers do before they negotiate rates for shows.
The first media formula you need to know IMPORTANTSHARE X HUT =RATING. Going back to one of our former examples:
If 4 out of 5 homes are using tv, 4/5 or 80% or 80 is the HUT. If 2 homes are watching Greys, 1 home CSI, 1 Home MTV and 1 home not watching we have the following:
Program GREYS CSI MTV OFF
Rating 40 20 20
Share 50 25 25
HUT 80 80 80
Our HUT is 4 out of 5 or 80% or 80 because we drop the %.
Greys rating is 2 out of 4 or 40 Rating
Greys share is 2 out of 4 sets on or 50%
.50 x 80 =40 Share X Hut =Rating.
Remember when we talked about seasonality? If HUTS go up and down with the seasons, and shares stay stable, the ratings will also go up and down with the seasons. (shares will not usually stay stable, but wanted to show how this is relevant) As the projected ratings go up and down, so do costs.
One thing to always remember is that Ratings, shares, Huts, PUTs and PURs are estimates. They are NEVER exact. The data comes from sampling and as we talked about last week, it is very imperfect.
While it is imperfect, it is data that can be used to help planners and buyers work with approximations and give direction. All rating information is based on media consumption habits of a small portion of the population.
Another important thing to know
GROSS Rating Points or GRP’s are:
The SUM of ratings delivered by a list of media vehicles. GRP’s are a % . Target Rating Points (TRP’s) are the same thing as GRP’s but is more accurate because it defines a specific target (M18-49, Teens, etc.) but the terms are totally interchangeable with each other. GRP’s describe the total ratings without regard to duplication…(one person might see the commercial 1 time while another person might see it 2 times, 3 times or 50 times) When talking about GRP’s or TRP’s, individuals are counted as many times as the see the add>
- They are the sum of ratings delivered by a given list of media vehicles
- They are how loud your “voice” is over all
- They are a rough estimate of how much ads are needed
- They are a duplicated number (overlapped audience)
Example: If a program has a 20 rating and it is purchased twice, the total GRP’s are 40 2 x 20.
PROGRAM AVERAGE RATING # TIMES Purchased GRP’s
Greys 20 2 40
CSI 15 4 60
Bachelor 25 2 50
Law and Order 10 5 50
Total 13 spots 200 GRP’s
GRP’s in Print media
For Magazines, GRP’s = coverage x # insertions (last week I told you that Coverage and ratings are similar…coverage refers to print, GRP’s to broadcast)
Example: People magazine’s target reach of dieters is 21.3%. The number of ads to be placed in People is 5. Gross rating points =106.5 (21.3 x 5)
Lets say you are trying to reach Women 25-54.
Peoples coverage of W 2554 is 26.1
Readers Digest is 26.1
Shape’s is 5.3
New Yorkers is 1.6
Total women 2554 GRP’s is 59.1 GRP’s or 59.1 coverage of our target.
IMPRESSIONS is next media term you need to know
GRP’s are one way to express total audience delivery. Impressions is another. Gross impressions are the sum of all advertising exposures in DUPLICATED form. It shows the gross weight of the plan, but there is no indication of how many different people will be exposed because some will be exposed 1 time, some 2, some 3 or more.
Impressions are the same thing as GRP’s/TRP’s EXCEPT that they are expressed in numbers instead of %’s. From our last example of 200 GRP’s, is the same thing as 190,000 impressions. There are 2 ways to calculate impressions:
- Add the audience delivered for each announcement in a schedule.
Program HH (000) Announcements Impressions (000)
Grey’s 19,000 2 38,000
CSI 14,250 4 57,000
Bachelor 23,750 2 47,500
L & O 9,500 5 47,500
Total 13 spots 190,000 impressions
- Multiply the TRP delivered to a given population group by the number of people in the population group.
GRP’s and Impressions are useful tools for analyzing and buying media, but neither show how many DIFFERENT people will be exposed to the ads or how many times they will be exposed. We’re going to talk about that (Reach and Frequency) next, but before we do I want to make sure everyone understands what we’ve been talking about with regard to GRP’s and impressions. So I’m going to hand out an in class exercise and ask you to do it independently and we’ll go over it to make sure everyone understands. Do In Class Exercise
Exclusive Reachnext term we are going to talk about and the next one you need to know. Exclusive Reach is the number of DIFFERENT individuals or homes exposed to an ad schedule within a given time frame (usually 4 weeks for broadcast, a month for outdoor, life of a publication…1 month, 1 day) It is UNDUPLICATED and expressed as a % . IMPORTANT
It is a measure of dispersion.
Reach operates in two different modes:
- within the same vehicle…3 different magazines
- across media vehiclesTV
Magazines
SHOW GRAPH of 100 TV HOMES
This graph shows 100 homes. Each box =1 home. Let’s say you purchase a TV schedule of 4 spots; 1 in Grey’s Anatomy, 1 in Bachelor, 1 in Law and Order and 1 in My Name is Earl. In this example, some people saw more than 1 announcement or spot. Some people that watched Grey’s also saw Earl. You will see every possible combination of the programs on this chart.
In this example, 40 homes viewed at least 1 of these programs. The reach of the 4 programs combined is 40%...40 homes saw one of these commercials out of 100 possible TV homes.
Each one of these shows has a 20 rating (20 boxes out of 100) This schedule of 4 spots produced 80 gross rating points:
Greys Anatomy 20
Bachelor20
Law and Order20
My Name is Earl20
80
To calculate EXCLUSIVE Reach, each viewer is only counted 1 time (unduplicated) no matter how many programs they watched.
The dynamics of reach apply to all media forms with the only variation being in the time frame…example: For broadcast (TV, radio, cable) reach is expressed over a 4 week period)…”With this TV schedule, I will reach 40% of the market over a 4 week period” This is because it is how the research companies collect and tabulate the data.
Reach refers to the % of people who will be exposed to the programs.
2 different terms that are often used by media planners are Reach and Coverage. The terms can be and often are interchangeable because Coverage often is synonymous with Reach. A more accurate explanation is that coverage and reach can be different because Coverage could mean POTENTIAL to be exposed to the advertising and Reach refers to those people who are actually exposed. KNOW THIS
Reach VS Coverage
- Reach:Those who are actually exposed to an ad message. Example: Television program Grey’s Anatomy reaches 9 million women Aged 25-34 within a four week period…or Time magazine has a reach of 25% of women aged 25-34 within an average issue
- Coverage: Those who only have the potential to be exposed to an ad message. Example: Grey’s Anatomy has a coverage of 95% of TV homes in the United States…or Time Magazine has a 25% coverage of women aged 25-34 (in this came it means the same as reach)
Outdoor is generally a 1 month reach/coverage….”With the outdoor schedule I purchased for ALLSTATE, I will (have the potential to) reach 30% of the population over a 1 month period.”
With Print, reach is usually calculated over the life of the issue…a weekly magazine has an average live of 4-5 weeks (how long it takes everyone who is going to read the magazine to do so) Daily newspapers usually have a 1 day reach.
Here is an example of how reach/coverage would be calculated for magazines: SHOW CHART:
TIME is read by 20% of my target…some of those people also read Prevention and/or Sports Illustrated.