Media Basics

(Caveat – This ppt was built in 2004, but the basics and
theories of Media plan, are timeless)
 Part I : Media Terminology

– TG & Universe
– Reach, TVR & GRPs
– Freq. Distribution & Effective Reach
– Duplication & Avg, Frequency
– Cost per GRP
– Share of Voice
– Discrete reach
– Selectivity
Part II : Media Planning Concepts
– C&S penetration
– GRP Projections
– Technique to apportion spends
– Benchmarking
– The optimization problem
– Channel buys
– Duplication analysis
– Daypart Viewership & Channel Shares
– Generic Strategies
– Recency & Frequency
– Value Additions
– Scheduling
– EF Estimator
 Part I :
Media Terminology
Introductory Terms
TARGET AUDIENCE

Definition :The demographic group that has been

identified as-the key consumer group for the brand.
All marketing/advertising activity is
concentrated on reaching/appealing to this
group.Usually defined in demographics/ media
consumption/ product consumption

UNIVERSE
Definition :The actual number of individuals within the
defined target audience.
 Reach

Definition : The percentage of the target audience who

saw the commercial at least once during a given
campaign period.
In Practice :
Unduplicated Cumulative Reach
Programme Rating Reach
32 32
Friends 32
11 43
Dynasty 21
9 52
Movie 18
7 59
Sport 24
4 63
News 15
63% 63% Reach
110 GRPs
 TVR v/s Reach
Individuals

Minutes
A B C D E
1 # #
2 # # #
3 # # #
4 #
5 # #

People that saw the programme for atleast 1 minute :

A + B+D+E =4
Therefore, Reach=4/5
Reach=80%
 TVR v/s Reach
Person Minutes Viewed Minutes Available
A 3 5
B 1 5
C 0 5
D 2 5
E 5 5

(3/5)+(1/5)+(0/5)+(2/5)+(5/5)
TVRs : x 100
5 (A+B+C+D+E)

Ratings = On an average 44% of universe of the TG saw the entire

Time band
 Gross Rating Points ( GRPs )

Definition : The sum of all ratings achieved in a given period.

In Practice : Our commercial appeared in the following programmes :

Programme Rating
Friends 32%
Dynasty 21%
Movie 18%
Sport 24%
News 15%
110%

- 110 GRPs achieved (or 110% of defined universe)

 GRPs

GRPs =  (TRPs in a media schedule)

GRPs =  (S x TRPs) where S is #spots

GRPs = Reach x AOTS

Normalising GRPs
 How do we evaluate plans/ buying across different
brands:

– Eg. Brand A budget INR Rs 1mn- 200 GRPs with a 20 sec

commercial
– Brand B budget INR Rs 1.2 mn - 125 GRPs with a 30
second commercial
– GRPs need to be normalized to the same duration in order
to calculate CPGRP.
– Normalising A -1000000/(200*20/10)- CPGRP= 2500
– Normalising B- 1200000/(125*30/10)- CPGRP 3200

 The Brand A buy/plan is more efficient

 Frequency Distribution

Definition : The reach delivered at actual frequency levels.

In Practice :
Frequency 1+ 2+ 3+ 4+ 5+ 6+ 7+ 8+
Reach% 63% 55% 44% 31% 23% 15% 11% 7%

70
60
50
Reach% 40
30
20
10
0
1+ 2+ 3+ 4+ 5+ 6+ 7+ 8+

Frequency Distribution
 Effective Reach

Definition : The percentage of the target audience who have

seen the commercial at the defined optimum
frequency levels.
In Practice : The optimum frequency level to achieve brand
awareness may be 2+. The effective reach in the
example below is therefore 55%.
Frequency 1+ 2+ 3+ 4+ 5+ 6+ 7+ 8+
Reach% 63% 55% 44% 31% 23% 15% 11% 7%

Frequency Distribution
 Duplication and Cumulative build
Channel 1
•Duplication- It is the number of people who
view a set of channels for a given period of
836 time.
Formula- Dup= Cum. Build- Unique cover
(Note- Duplication is calculated on a
weekday/weekend basis due to the difference
1765 in programming.)
103 148
•Cumulative Build- Build up of reach as the
series progresses
ZEE 2852 Channel 2 It takes into account the duplication factor
Weekdays

TG-Females, 25-34 Sec ABC

 Why Reach . . . & why not GRPs ?

Ke n d r a P ro g r am C o s t/ 30 " S po ts G R Ps
N e tw or k C h itra h aa r 4 05 00 0 2 60
Plan 1 F ri .Fi lm 3 45 00 0 2 78
D D M e tr o S u n d a y Fi lm 1 35 00 0 2 50
Su p e rh it M u qu a b la 3 45 00 0 2 80

T o ta l 1 2 30 00 0 8 26 8

K e n dr a Pr og r am C ost /30 " Sp o ts G R Ps

N etw or k Yug 8 0 00 0 4 60
Sw abh im a an 20 0 00 0 8 80
Plan 2 D D M etr o S u nd a y Fi lm 9 0 00 0 2 50
A an kh o n D ekh i 12 0 00 0 4 80

T otal 490 00 0 18 27 0
 Why Reach . . . & why not GRPs ?
Kendra Program Cost/30" Spots Reach%
Network Chitrahaar 405000 2
Fri.Film 345000 2
Plan 1 DD Metro Sunday Film 135000 2
Superhit Muquabla 345000 2

Total 1230000 8 55%

Kendra Program Cost/30" Spots Reach%
Network Y ug 80000 4
Swabhima an 200000 8
Plan 2 D D Metro Sunday Film 90000 2
Aa nkh on Dekh i 120000 4

T otal 490000 18 25%

 Why Reach . . . & why not GRPs ?

Plan 1 Costly Plan 2 Cheaper

268 GRPs 270 GRPs
Only 8 spots A total of 18 spots

But the most important element is that Plan-2 reaches out to 30% lesser potential
target audience than Plan-1

Therefore Plan 1 is better optimised plan, and with lower Cost per Reach to
reach the TG.
 Average Frequency

Definition : The number of times, on average, the audience

reached sees the commercial during a given period.

Formula : Average Frequency = Total GRPs ÷ Reach or

GRPs = Reach x Average Frequency

In Practice : 110 GRPs ÷ 63% Reach = 1.75 Average Frequency

Therefore, 63% of the target audience will see
the commercial on average 1.75 times during the
given period.
 reach AOTS reach

When the duplication is lower the reach increases

and average OTS decreases
(When dupln. is 10, reach goes up to 63% and AOTS becomes 3.15)
 rch AOTS. rch

When the duplication goes up reach decreases

and average OTS increases
(When dupln. is 40, reach decreases to 53% and AOTS is now 3.75)
 Cost Per GRP ( “cost per point” )

Definition : The cost of buying one rating point.

Formula : Cost ÷ GRPs = Cost per GRP

In Practice : INR Rs.220,000 ÷ 55 GRPs = Rs.400

cost per GRP
 Share of Voice ( SOV )

 A measure of media weight distribution as a % of the total

GRPs delivered by the category
 A more reliable measure of relative weights because :
– measures a parameter that directly links media to TG

– smooths out differences in media buying among brands in

the category
 Discrete Reach vs Effective Reach
90

80
78
70

60 62

50 49

40 40

30 29
23
20
18
14
10 11
8
0
1+ 2+ 3+ 4+ 5+ 6+ 7+ 8+ 9+ 10+

Discrete Reach at 1 =
% TA who saw the ad exactly once = 78
 Maximizing at 3+
90
Undesirable1
80
Undesirable2
70 Ideal

60

50

40

30

20

10

0
1+ 2+ 3+ 4+ 5+
 Other Terms

 Share of Spends:Brand spends/ Category spends *100

 Selectivity: The profile of a channel/ medium

– Formula= Total Reach in (000) of the channel or
medium / reach in (000) of the same in the TG
– Usually done on market basis, as viewing habits are
different: eg. North West/ TN/ AP/ Karnataka/Kerala-
viewing habits is the key factor.
– Also, selectivity is done on a weekday/weekend basis.
 Reach Selectivity-North-West Weekdays
1800 16
1600 14
1400 12
1200
10

Selectivity
Reach

1000
8
800
6
600
400 4

200 2
0 0
Ch 1

Ch 2

Ch 3

Ch 5

Ch 6

Ch 7

Ch 8

Ch 10

Ch 11

Ch 12

Ch 13
Ch 4

4Weeks 8Weeks Ch 9 SI

TG-Females, 25-34 Sec AB

 Part II :
Media Planning Concepts
 C&S penetration

 C&S penetration is many time used to understand

channel mixes required
 It is also referred to see if there are certain markets
where C&S/n C&S inputs are not required due to
negligible target audience size
 GRP projections

 TAM does not provide GRPs for all the geographies

across India
 Projection factors are used to project GRP s from
centres that are reported to the centres that are not
 This helps get a feel of the media weights aligned
across India
Technique to apportion spends
 A logical connection from GRP distributions
across India
 Enables us to gauge the amount of money spent
on each market
 Uses the principle of Gross Impressions rather
than plain population size
 GI = (GRP x TA size) /100
 The spends will be apportioned in accordance
with the GI salience across the geographies
 Benchmarking

 Benchmarking of effective frequencies

– Estimation of possible planning levels
 Benchmarking channel CPGRP s for buying
– For a particular programme mix, for a TA each
channel will have a typical CPGRP
– This will be used as benchmarks for negotiating
 The optimization problem

 Having defined EF objectives , do we go all out?

 6+/60 % might be inefficient to achieve
 Develop a method to estimate most efficient reach
point to cut off at
 Channel buys

 The amount of GRP s bought on a channel

 For example in the case of Zee TV , channel buy
would be the total GRP s delivered across the
north/west and eastern belt as an aggregate
 A combined GRP figure in the n/w/e belt would lead
to different GRP s delivered in the areas that form
part of the combination
 Duplication analysis

 Application of set theory

 Used in order to build upon outputs of optimizers
 Leads to day part buying decisions
 Daypart viewership and channel
share
 Day part viewership traces the viewing habits of the
target audience
 Usually peaks are chosen to advertise
 During the peak the channel shares are plotted in
order to determine the dominant channel
 Used for cross channel scheduling
 Generic strategies

 Maximize reach
– Buy in channels/dayparts that increase the
absolute number of people reached

 Maximize frequency
– Identify channels/dayparts that lead to
maximization of duplication
 Recency and frequency

 Recency
– Maximize reach at 1+ at a weekly level
– Optimize reach level to be attained
 Frequency
– EF levels set at anything above 1
– AOTS tends to be high in these kind of plans
– Optimization is done on this also
 Value additions

 Free of cost innovative media presence subject to

bulk spending
 Innovative presence that are charged at a lower rate
than standard advertising
 Scheduling

 Continuity
 Pulsing
 Drip
EF estimator
Thank you