Professional Documents
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Strategic Media Planning
Strategic Media Planning
Strategic Media Planning
Introduction
Market Definitions
Planning Metrics
Establishing Benchmarks
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Introduction
For more than 75 years, the Out of Home industry has used DECs
(Daily Effective Circulation) to define the number of people who pass
an outdoor display.
Unfortunately, we had been speaking a different language than the
rest of the advertising industry. Without ratings, out of home media
was not a part of the most critical part of the advertising process:
strategic media planning. Living in our own world of showings, out of
home at worst did not make the budget, or at best, received a small
portion of the budget after the primary budget was established. We
were a “below the line” medium.
TAB Out Of Home Ratings is a giant step forward. They are audience
measures that advertisers understand and can utilize as they plan
and build their advertising campaigns. They provide an opportunity
to make Out of Home an above the line medium.
Most general planners have low awareness of our media and its new
ratings. Therefore, out of home specialists and media vendors have a
vital evangelical role to play. But first, you must be prepared. You
need to fully understand what the strategic media planning process is
and how ratings are utilized within that process.
As the process continues from planning to buying and selling,
consistency builds confidence, value, and trust. That is why ratings
must be the only audience metric used throughout the entire
process.
For those of us who have used DECs over the years, the transition
can be daunting. But it is time to stop using these antiquated
numbers and move on.
This workbook begins by illustrating how general planning leads into
the overall advertising process. It also focuses on specific transitional
steps that will help you migrate to the successful use of ratings in
your day to day business practices.
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General Planning & the Buy/Sell Process
For most of you, what is new in the process outlined below is General
Planning. Your knowledge of general planning objectives will help
you communicate out of home’s value more strategically; thus
enhancing out of home’s role in advertising campaigns. Ratings play
an integral part of an enhanced dialogue with current, as well as new
advertisers to the medium.
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From DECs to TAB Out of Home Ratings
A Comment on TAB Out Of Home Ratings
TAB's ratings estimates are built on a solid foundation. They originate with an accurate count
of traffic and people passing out of home media displays. Trip information is then used to
identify the demographic composition of the people passing each display. Then visibility
adjustments are made to convert the number of people passing a display to the audience who
actually sees its advertising. That makes TAB Ratings the first measurement system based on
commercial audiences who see advertising.
The triangle below provides an example of how numbers change as we move from gross traffic
counts to a measure of audience. Here are a few things to consider about DECs:
The continued use of DECs disadvantages the industry. Some plants feel the need to use DECs
to compete with plants who are not members of the TAB. This can disadvantage the audited
plant. Non-audited circulation counts, as shown above, range from the correct DEC of 40,666
to a gross count of traffic, 57,013. Buyers lose confidence in out of home when comparable
numbers vary widely.
Two numbers do not make a measurement currency. All other media have a primary
measurement currency. The use of two numbers confuses both buyers and sellers. Ratings are
more refined and a true measure of audiences who see the ad. They are more credible and
can be used in combination with the ratings of other local media. Most importantly, only
ratings can be used in general planning.
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From Showings to Audience Delivery
What is a Showing?
Everyone in the Out of Home industry knows what a showing is. However, hardly anyone in the
world of general advertising is familiar with this term. Here is the common definition from the
OAAA’s glossary of industry terms:
Showing : The traditional way of selling Out of Home media; a level of delivery that directly
relates to the population of the market. Typical showing levels are: #100, #75, #50 and # 25
GRP/Showings. The number of panels involved in the actual showing varies by market
population and the average DEC of the market’s inventory.
Every plant used its own definitions of the market. This made it nearly impossible for buyers to
evaluate their Out of Home media options. An even bigger problem was that advertisers could
not use DECs nor the GRPs calculated from DECs in their media plans. Most showings were
based on Adults 18+, whereas planners tend to use smaller demographic breaks. Also, the
numbers they were presented were so large they weren’t trusted
The first step to embracing ratings is the conversion from legacy showing levels to rating
point delivery goals. It really isn’t that difficult because historical daily Showings have a
number of displays used in a campaign. The number of panels is all you need to make the
conversion using the Showing Converter available at tabonline.com.
Establishing Benchmarks
The transition from DECs and Showings will take time. As buyers and sellers begin to use TAB
Out Of Home Ratings, they will need to develop new, corresponding benchmarks of audience
weight required to meet a brand’s advertising objectives. Agencies already have these
objectives for other media. Now, for the first time, they can be built for Out of Home. The
process begins with developing an understanding of the components of the new system.
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Market Definitions
DMAs and CBSAs
Market Selection
Examine the impressions and ratings for the three demographics targets in these tables and you will note
how the numbers vary using the DMA and CBSA definitions.
The use of established definitions that are meaningful to advertisers provides a standardization and
consistency that is required to assess available media options.
Note: Media companies and advertisers will also use smaller custom definitions of markets, defined as a
county or a group of counties to highlight more targeted geographic delivery.
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Planning Metrics
The Planner’s Numbers
General planners need to assess all options to determine what combination of media will best meet the
advertising objectives of a brand. The following example from the Nielsen/IMS Outdoor Planner
identifies the planning metrics.
Market: Planners can select DMAs or CBSA. A list of markets can be examined altogether and they
can be combined to form regions.
Formats: All Out of Home formats (measured by TAB) are available. They can be examined
independently or in combinations (mixes) of formats.
Demographics: The demographics include age/sex, race and ethnicity, and income. These categories
can also be combined.
Panels: The average number of panels required to deliver the media weight (e.g. 100 GRPs, Adults 18+).
Weeks: The number of weeks in the schedule. The default value is 4 weeks (the common unit for selling
Out of Home media). Planners can use any length of time (e.g. 4, 8, 12 weeks).
Estimated Cost: Costs in the Nielsen/IMS and Telmar systems were supplied by TAB. They are based on
rate cards. It should be noted that the costs are market averages across all suppliers. Some costs were
statistically adjusted to align with market norms and will vary from actual rate cards.
Inventory: The total number of units of the specified format in the market.
Weekly GRPs: Gross Rating Points delivered for a specified demographic audience for a week. Weekly
GRPs replace Showings as the new standard for defining a basic out of home package
Total Impressions: Total Impressions is the total number of times people who pass out of home displays
in the schedule are likely to see an ad on the display. Total Impressions include all persons who notice
the ad, regardless of the origin of their trips.
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Planning Metrics
In-Market Impressions: In-market Impressions are a subset of total impressions that include only those
from people who live in the specified markets. In-market Impressions are used to calculate ratings and
GRPs.
Target GRPs: The total number of In-market Impressions delivered by an out of home campaign
expressed as a percentage of the market population. One GRP represents impressions equal to 1% of
the population.
CPM: Cost per Thousand is the cost required to deliver 1,000 impressions. Note CPP or Cost Per
rating Point can also be reported
Target Reach: The number of unique people (that live in the market) who see an ad at least one time
during the campaign. Reach is expressed as a percent of the market population.
Average Frequency: The average number of times a person will see the ad
3+ Reach: The number of unique people (that live in the market) who will see an ad three or more
times during the campaign. 3+ Reach is expressed as a percent of the market population.
Multi-Media Planning
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Establishing Benchmarks
The Need for Benchmarks
When any new audience measurement system is introduced, the industry must establish new
benchmarks. Advertisers have had to re-calibrate their historical standards and objectives in
radio and television as their measurement systems changed from diaries to meters.
The exiting “news” for out of home is that it can now be part of every planner’s media mix.
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From Planning to Buying
Most planners are not familiar with Out of Home media. Its unique capabilities are best understood by
out of home specialists and the sales representatives of out of home media companies. Their knowledge
of the medium and local markets can insure that an actual buy meets or exceeds the objectives set by
planners.
This is dramatically illustrated by the reach curves where reach for Adults 25-54 and Adults Income $75K+
increased 12 and 23% respectively.
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New Ratings-Based Media Plan Award
In recognition of the importance of integrating out of home into the general planning process,
TAB and OAAA are pleased to announce a new category in the OAAA’s Media Plan of the Year
Awards.
A new level of accountability!
This year, TAB's Out of Home advertising exposure ratings became the industry's official currency, bringing
an unprecedented level of accountability to the medium. The level of evaluation made possible by TAB's
out of home advertising exposure ratings increases our knowledge of the medium's true communication
potential. In doing so, it benefits current Out of Home advertisers while opening the door for new
advertisers to the medium to build more effective and more profitable multimedia campaigns.
Actual exposures to each board in an Out of Home campaign are measured and reflected in demographic
audience, $CPM, and multi-media reach and frequency systems used by advertising agencies for media
planning. These data also may be used to fuel major national and local marketers' media mix modeling of
return on investments (ROI) which help make future advertising campaigns even more effective.
A new challenge!
There is a unique challenge associated with making the most out of this opportunity ... advertising agency
multi-media planning strategists and Out of Home media specialists are each masters of only half of the new
equation.
The new data and evaluation tools empower multi-media planning strategists to discover the true value and
power out of home will bring to their media plan. And media specialists' knowledge of each market's own
out of home jewels can help design custom tailored uniquely powerful solutions to achieve advertisers'
goals. Working together, OOH specialists and agency media planners are in the best position to deliver true
innovation and creativity for their clients.
To encourage this collaboration, and to honor accountability-driven media planning creativity, the TAB
created the OOH Ratings Innovation Award.
This award is designed to recognize when innovative use of the new ratings system reveals eye-opening
strategic insight resulting in more effective media campaigns using Out of Home. It also celebrates agency
media planning and OOH specialist "teams" whose collaborative efforts lead to these breakthroughs.
For more information, contact Larry Hennessy at the TAB or Stephen Frietas at the OAAA.
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