Media strategy ReachReach –Unduplicated exposures – gross impressions –Number of different people exposed to the message FrequencyFrequency –Average number of exposures –How many times audience is exposed to message

Media strategy Best frequencyBest frequency –Outdoor, newspapers, magazines Best ReachBest Reach –Network advertising, magazines Best combinationBest combination –Radio

Media strategy Calculating cost efficiencyCalculating cost efficiency Cost per thousand (CPM)Cost per thousand (CPM) –How much it costs to deliver 1000 gross impressions –How much to reach 1000 listeners, viewers, readers, households, etc.

CPM Cost of Schedule Gross Impressions 2 $8.00 each 1 reaches 4500 QHP 1 reaches 3500 QHP 1000 = Cost Per Thousand

CPM = 8000 gross impressions = 8000 gross impressions 2 $8 = $16 – cost of the schedule2 $8 = $16 – cost of the schedule $16 ÷ 8000 =$16 ÷ 8000 = ¢ per person.002 ¢ per person X 1000 = 2.00X 1000 = 2.00 $2 per 1000 QHP$2 per 1000 QHP

CPM

CPM 200 ÷ =.004

CPM

CPM 354 ÷ =.002

Waste circulation Reaching people who are not the desired audienceReaching people who are not the desired audience Demographics = age, gender, incomeDemographics = age, gender, income Psychographics = “lifestyle”Psychographics = “lifestyle”

Audience research How we know the size of the audience reachedHow we know the size of the audience reached Rating = percentage of all possible viewers or listenersRating = percentage of all possible viewers 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 research All possible viewers or listeners 100%

Audience research TVHH 100%

HUT Not viewing HUT level = 50 50%

Audience research Tuned to our spot Not viewing

Audience research 25% of TVHH – 50% of HUT

Audience research Rating = 25 Share = 50

Audience research terms Gross ratings pointsGross ratings points Average quarter hour people (QHP)Average quarter hour people (QHP)

Audience research Began in the 1920s with radio listenershipBegan in the 1920s with radio listenership Archibald Crossley personal interviewsArchibald Crossley personal interviews C. E. Hooper – Hooperatings – personalC. E. Hooper – Hooperatings – personal A. C. NielsenA. C. Nielsen –Diaries –Audimeter

Audimeter

A.C. Nielsen Now only television ratingsNow only television ratings Use diaries, audimeters and “people meters”Use diaries, audimeters and “people meters” Meters used for “overnights”Meters used for “overnights”

A.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 DMA Metro survey area (MSA)Metro survey area (MSA)

Market areas TSA TSA DMA/ADI DMA/ADI MSA

Arbitron Radio researchRadio research DairiesDairies Developing the “personal people meter” (PPM)Developing the “personal people meter” (PPM)

Arbitron terminology Total survey area (TSA)Total survey area (TSA) Area of Dominant Influence (ADI)Area of Dominant Influence (ADI) –Every county assigned to an ADI Metro survey area (MSA)Metro survey area (MSA)

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