UNIT – 5: DEVELOPMENTS IN INTERNATIONAL MARKETING

MEDIA MEASUREMENT

Definition:

media measurement process starts with defining a goal that needs to be achieved and defining the
expected outcome of the process.

Media Cost

Media Cost is the price you pay to present your advertisement. There are many different ways to
price media including points, impressions, clicks, leads, actions, days, weeks, months, etc.
However, it ultimately boils down to the amount you pay to present your advertisement, which is
Media Cost.  Media Cost excludes the cost to create the advertisement and other costs.

Media Market

Media Market or Market describes the set of people that could potentially be exposed to your
advertisement. The media market is often described using Designated Market Areas or DMAs,
which are trademarked by Nielsen. However, Media Market can be any market you define. More
on Media Markets…

Population

Population is the total number of people in your Media Market.

Rating

Rating is the percentage (0 to 100) of the Media Market that will likely be exposed to your
advertisement. Rating is an estimate based on past performance often sourced from surveys. 
More on Ratings…

Average Persons

Average Persons is the number of people that, on average, will be exposed to each Spot. Average
Persons is calculated by multiplying Population by Rating then dividing by 100.

Spot

A Spot is a single broadcast of an advertisement. Typically, an advertising placement includes

multiple spots.

Gross Rating Points (GRPs)

Gross Rating Point (GRP) is a measure of the size of an advertising campaign by a specific
medium or schedule. GRP is calculated by multiplying the number of Spots by Rating. More on
GRPs…

Cost per Point (CPP)

Cost per Point (CPP) is a measure of cost efficiency which enables you to compare the cost of
this advertisement to other advertisements. CPP is calculated as Media Cost divided by Gross
Rating Points (GRPs)

Impressions

Impressions are the total number of exposures to your advertisement.  One person can receive
multiple exposures over time.  If one person was exposed to an advertisement five times, this
would count as five impressions. Impressions are calculated by multiplying the number of Spots
by Average Persons.

Cost per Thousand Impressions (CPM)

Cost per Thousand Impressions (CPM) is another measure of cost efficiency which enables you
to compare the cost of this ad to other advertisements. CPM is calculated as the Media Cost
divided by Impressions divided by 1,000.

Reach

Reach is the number of people in the Media Market that will likely be exposed to one Spot.
Estimating reach is tricky because when you run an ad multiple times, the same person may see
the ad more than once but you only want to count them once in Reach. There are many different
methods to estimate reach. Most rely on software, such as Bionic’s Media Planning Software, to
calculate reach.

Reach Percentage

Reach can also be expressed as a percentage, which indicates the percentage of the Population
that is exposed to at least one Spot.

Frequency

Frequency is the average number of times the advertisement will be presented to the Reached
Population. One way to calculate frequency is to divide the number of Impressions by the Reach.
Another way is to divide GRPs by Reach Percentage.

AVERAGE OPPORTUNITY TO SEE

Average opportunities to see (OTS) – Average OTS is the number of times on average that a
member of your target audience will see your ad.
Opportunity To See or OTS is a measure in advertising media which denotes number of times the
viewer is most likely to see the advertisement.

Television Metrics

Reach is one of the primary metrics for measuring any TV advertising campaign. It refers to the
number of viewers that have the opportunity to view an ad during a given time period.

Dairy vs people meter

Before the People Meter advances, Nielsen used the diary method, which consisted of viewers
physically recording the shows they watched. However, there were setbacks with the system. ...
The People Meter is an electronic method of television measurement that moved from active
and diary-based to passive and meter-monitored.

Television Rating Point (TRP)/Television Viewership Rating (TVR) :

It is the percentage of target audience in a particular market who have viewed any particular
episode of a programme. For example, if there is a 30 min serial, and there are five people who
watched this serial, then all of them might not have seen for the same period and amount of time.
Let us say, the five people have watched for 5, 10, 15, 20 and 30 minutes of the serial. Then the
TRP/TVR will be 80/150*100, where 150 is the ideal watching time for all five of us. In this
theoretical example, the TRP is 53.

Reach and Time Spent

One thing that does get a bit lost in this debate is engagement, or time spent and what role that
plays in highlighting the quality of the audience and the audience experience with content (and
advertising). Time spent is the key ingredient for ratings. The more time people spend watching
a show, the higher its ratings will be.

Stickiness Index

"That's what 'stickiness' is: It's the percent of a program watched on an index basis." ... The
index, which is part of its TV Essentials products, is the average percent of a program viewed,
divided by the average percentage viewed for all programs of that duration: 30 minutes, 60
minutes or 120 minutes.

Ad Viewership

According to Digiday, a rating point is one percent of the potential audience, meaning a show
that has a rating of 10 points gets 10 percent of the viewers. So, if a TV ad has a reach of 30
percent of its target audience, and the ad shows four time, the ad campaign has 120 gross
ratings points.
Radio Metrics

Arbitron Radio Rating

Nielsen Audio (formerly Arbitron) is a consumer research company in the United States that
collects listener data on radio broadcasting audiences. ... Deployed in New York City, it gave
instant ratings data on what people were watching. A reporting board lit up to indicate which
homes were listening to which broadcasts.

Print Media Metrics

For print media, the two main measures of audience are readership and circulation.
Circulation relates to the number of copies circulated to the public. Readership is the number
of readers - either of a specific issue of the publication, or over a certain time period, such as 3
months.

Average Issue Readership

Average Issue Readership (AIR) is an indication of potential audience, rather than a measure of
how many people will have seen a particular advertisement within a specific edition.

Total or claimed reader

A statement essentially arguable, but used as a primary point to support or prove an argument is
called a claim. If somebody gives an argument to support his position, it is called “making a
claim.” Different reasons are usually presented to prove why a certain point should be accepted
as logical.