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ADMA – What I want & what you get – (Media Sales & Planning) ?

 Reference Books
1. Strategic Media Planning – Kent M. Lancaster & Helen E. Katz.
(Edn. : 1990)
2. Media Planning – Jim Surmanek. (Edn. : 1992)

 Additional Reference
1. The Indian Media Business – Vanita Kohli (Edn. : 2003)

Media Sales Project Submission


Proposed date : 15th January 2010
Actual date : 22nd January 2010 by 1730 hrs.
Presentation : Date & Time TBC.
Written Test : Date & Time TBC.

© Arnob Mukherji
- Media Planning –
simplifying complexities
Arnob M
“I know ½ of my advertising money is wasted…I just don’t know which ½.”

John Wanamaker

© Arnob Mukherji
Why Media Planning ?

 Thumb Rule # 1: 80% - 85% of advertising budget is spent buying


media space.

The Rule of Rights


Reaching the Right number of the Right audience at the Right
time & the Right number of times

 Thumb Rule # 2 : You can’t sell all the products to all people all
the time. (sorry Mr. Abraham Lincoln)

© Arnob Mukherji
The media process

Environment

Competition
Marketing Mix

Media GRPs

Sales of the Brand

Reach

Intent/
Creative Awareness Consumer
Disposition

SOV

Duration of Ad

No. of Executions Other Media

© Arnob Mukherji
A host of things to manage and measure

Media Agency

Client

Media GRPs Reach/Frequency Awareness Intent Sales

Ad-agency

© Arnob Mukherji
Concerns of the players

How am I delivering audience?

Where is my money going?

This in essence is the core of the business of Media


Delivering audience at optimal cost

Media Agency

Client

© Arnob Mukherji
Planner connects products & consumers using media

Planner

Consumers

Products

© Arnob Mukherji Media


A typical question faced by a planner!!

© Arnob Mukherji
Multiple media options add to the clutter

Radio
Direct Satellite
Mrktng. Bus TV
In-store sides Terrestrial
TV News
papers
Sponsorship
Product
Events
placement Internet Supps

Cinema
Advertising in
Hospitals POS
Lifestyle
mags
Coupons Satellite Outdoor
Radio

© Arnob Mukherji
Media planner needs to know. . .

 What profile of consumers consume what products/ brands?

 Consumers prefer which media?

 What are the media consumption patterns of the consumers?

 How many consumers can be reached by which media?

 What is the cost of reaching consumers by different media?

As is apparent, measurability of media is a major concern for a planner

© Arnob Mukherji
Media Map

High Measurability

SMS TV
Personal Contact Newspapers
Internet Radio
Magazines

Personal Mass

Loose Inserts

Direct Mailers

Events

Road Shows
Word-of-mouth

Low Measurability

© Arnob Mukherji
Media measurement and systems
Anything that can be measured can be controlled
Urban & Rural

 Urban & Rural Classification


 According to the Census of India 1991, the following criteria
were adopted for treating a place as urban
 All statutory towns, i.e., all places with a municipality,
corporation, cantonment board or notified town area
committee, etc.
 All other places which satisfied the following criteria :
 A minimum population of 5000
 At least 75% of the male working population engaged
in non-agricultural pursuits, and
 A density of population of at least 400 per sq km
 Apart from these, the outgrowths of cities and towns
have also been treated as urban.
 All areas not identified as Urban, are classified as Rural

© Arnob Mukherji
Socio-Economic Classification - Urban

 A demographic indicator designed by the Market Research Society


of India to study consumer behaviour

 It is based on 2 parameters - Education and Occupation of the


Chief Wage Earner of the Household.

 The SEC of the CWE determines the SEC of the family members.

 SEC A1+ is one category which also has an income filter (Rs
10,000 + per month)

© Arnob Mukherji
Socio-Economic Classification
EDUCATION
Illiterate School School HSC / Some Graduate Graduate /
upto 4 yrs / 5-9yrs SSC college / Post Post
literate but but not Grad. Grad.
no formal graduat General Profession
OCCUPATION schooling e al
Unskilled Workers E2 E2 E1 D D D D
Skilled Workers E2 E1 D C C B2 B2
Petty Traders E2 D D C C B2 B2
Shop Owners D D C B2 B1 A2 A2
Businessmen / Industrialists None D C B2 B1 A2 A2 A1

No. of Employees 1-9 C B2 B2 B1 A2 A1 A1


10+ B1 B1 A2 A2 A1 A1 A1
Self Employed Professionals D D D B2 B1 A2 A1

Clerical / Salesmen D D D C B2 B1 B1
Supervisory Level D D C C B2 B1 A2
Officers / Executives – Junior C C C B2 B1 A2 A2

Officers / Executives - Senior B1 B1 B1 B1 A2 A1 A1

© Arnob Mukherji
Broad SEC Classification Grid - Rural

SEC By Education By Type of House

R1 Some College but not Grad., Pucca


Grads & Post Grads

R2 SSC/HSC Semi Pucca

R3 No formal school, Semi Pucca


Schooling upto 9th Std

R4 Illiterate Kuchha

© Arnob Mukherji
Research terms

 Household
 A person living alone or a group of persons related by blood
staying together & sharing food from the same kitchen
 CWE
 The member of the family who makes highest contribution to
the HH expenditure
 Housewife
 The female or the male member of the HH who is chiefly
responsible for HH tasks and decides what should be
purchased for the HH, for products such as soaps/
toothpastes, etc.
 MHI
 The sum of income of all members of the family

© Arnob Mukherji
Audience

 ‘Audience’ is usually often referred to as the Target Audience or


Target Group for a particular brand

 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.

© Arnob Mukherji
Universe

 Universe

 Definition
 Universe is the actual number of individuals within the
defined target audience

© Arnob Mukherji
Planners concern: How do I deliver Audience?

 Deliveries in Media are measured through


 Reach (% of people )
 Frequency ( # of times )

 Though these get translated in different forms for different


media the principle remains the same

© Arnob Mukherji
Concept of R&F

 Advertising generates two media effects

 Reach: The total number of different people who have been


exposed to the campaign expressed as a percentage of the
total target audience

 Frequency: The average number of times the target audience


was exposed to the campaign (Average Frequency/ Average
OTS)

© Arnob Mukherji
Frequency Distribution

 Average Frequency / AOTS is the


60
average exposures to the
audience
AOTS = 3.4
Reach (% of Audience exposed)

40
 Reach = 46%; AOTS = 3.4

 Reach and Frequency exist in a


relationship such that when one
20 goes up, the other goes down
(for a finite amount of
advertising)

0  As reach ; AOTS
1 2 3 4 5

Frequency (No. of ad exposures)  As reach ; AOTS

© Arnob Mukherji
Together Reach & Frequency

 The product of reach and frequency is constant - GRP

 GRP = % Reach X AOTS

 GRP is a measure of the media weight delivered by a media plan

 400 GRPs v/s 200 GRPs

 Gross Impressions
 Reach in Numbers X Average Frequency
 One impression is the equivalent of one person being exposed
to one vehicle

© Arnob Mukherji
Example
Universe : 1500 people
Campaign : 10 ads released in Newspapers
The frequency distribution (FD)

Frequency Number
of Exposure Exposed
0 150
1 300
2 200
3 180
4 160 Exposed to campaign at
5 140 least
once = 1350
6 120
7 100
8 80
9 60
10 10

© Arnob Mukherji
Calculating Reach

Reach
= No. of people exposed to campaign at least once/ Universe X
100
= 1350/1500 X 100 = 90%

© Arnob Mukherji
Gross Impressions / Gross OTS

Frequency Number Gross Impressions/


of Exposure Exposed Gross OTS
0 150 0
1 300 300
2 200 400
3 180 540
4 160 640
5 140 700
6 120 720
7 100 700
8 80 640
9 60 540
10 10 100
5280

© Arnob Mukherji
Calculating AOTS

Avg Frequency/Avg OTS =

Gross Impressions or Gross OTS

Total no. of different people reached by campaign

The campaign has been seen 5280 times by 1350 people


On an average one person has been exposed 5280/1350 times
AOTS = 3.9 times

© Arnob Mukherji
Calculating GRP

GRPs = % Reach X Frequency


= 90 X 3.9
= 351

© Arnob Mukherji
The campaign results

 % Reach = 90%
 Reach in numbers = 1350
 Gross Impressions = 5280
 AOTS = 3.9
 GRP = 351

© Arnob Mukherji
Effective Frequency

 Effective frequency is the level of frequency at which


communication takes place.

© Arnob Mukherji
Effective Reach

 Effective Reach is the reach at the level of Effective Frequency

© Arnob Mukherji
What is the level of effective frequency?

 There are no readymade answers


 The frequency levels will vary from brand to brand, situation to
situation.
 Therefore, we need to understand the factors that influence
Effective Frequency

© Arnob Mukherji
Factors influencing Effective Frequency

 Marketing Factors
 The stage of of Product Lifecycle of the brand
 Marketing objectives
 Strength of brand in the market
 Category salience
 Creative Factors
 Impact of advertising
 The communication task
 Complexity of message
 Media Factors
 The level of media clutter
 The level of category clutter
 The level of competitive activity
 Recent level of support
 Support in other media

© Arnob Mukherji
Print
Print terms

 Circulation
 The average net paid sales of publications over a period of 6 months

 Readership
 The total number of persons who are exposed to a publication as
distinguished from the circulation or the number of copies
distributed

 Average Issue Readership (AIR)


 The no. of people who have read any issue of the publication within
a specified time interval which is equal to the periodicity of the
publication

 Claimed Readership (CR)


 No. of people who claim to have read a publication

© Arnob Mukherji
 Readers per Copy
 Readership/ Circulation

 CPT (Cost per Thousand)


 Cost / Readership in’000

© Arnob Mukherji
Readership Characteristics

 Readership
 is an individual phenomenon
 is an anywhere phenomenon
 has a ‘time’ dimension
 does not indicate time spent/ intensity of reading
 does not account for source of copy

© Arnob Mukherji
Research Providers

 NRS (National Readership Survey)


 Survey commissioned by NRSC - a body constituted by AAAI,
INA & ABC in 1995
 Research Conducted by IMRB , AC Nielsen, TNS Mode

 IRS (Indian Readership Survey)


 Survey Commissioned by MRUC
 Research Conducted by ORG MARG/ NFO/ Hansa Research

© Arnob Mukherji
Masthead Readership

© Arnob Mukherji
Standard Questioning Technique

…….. go through this Booklet with me and tell me, for each
Publication, roughly how many issues you have read or looked
at…..

© Arnob Mukherji
….read or looked at

 By ‘read or looked at’, I mean not only careful reading but it


could also be glancing through its pages. However, just looking at
the cover does not mean ‘looking at’.

 It does not matter where you may have looked at it, for e.g. a
train or in a doctor’s clinic or at a hair dresser’s/ barber’s shop,
in an office or a library or at a friend’s place or borrowed it

 It does not matter which issue of the publication you have looked
at

© Arnob Mukherji
Market - Kerala

SEC
SEC -- A,B,C
A,B,C
Owners
Owners ofof TV
TV

© Arnob Mukherji
Television
Reach / Coverage on TV

 Number of individuals from the universe who are exposed to the


medium or vehicle for atleast 1 minute
 TV reach
 channel reach
 programme reach

 It is normally expressed in % terms


 Thus : 3+ 50% means 50% of the universe has seen the ad 3 or
more times

© Arnob Mukherji
Calculation of Reach

 Universe: 10 individuals

 For a single episode of Bidaai, if out of the above 10 people 6 saw


at least 1 minute of the program then,

 Reach is 6 out of 10 = 60%

 But,each person would have spent different time watching

 Hence, we need a measure that takes into account the time


spent too
 Television Rating Points (TVR / TRP)

© Arnob Mukherji
TVRs v/s Reach

Individuals
A B C D E
Minutes

1 X X
2 X X X
3 X X X
4 X
5 X X

© Arnob Mukherji
TVRs v/s Reach

 People that saw the programme for atleast 1 continuous minute :


A + B+D+E =4
Therefore, Reach=4/5
Reach=80%

© Arnob Mukherji
TVR vs 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 (i.e., A+B+C+D+E)

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


entire Time band
© Arnob Mukherji
Gross Rating Points (GRPs)

 The sum of all ratings achieved in a campaign

 GRP levels are generally measured and reported on a 4 week


basis

 It is a measure of the media plan’s thrust

© Arnob Mukherji
Gross Rating Points (GRPs)

 Our commercial appeared in the following programmes:

Programme Rating
X 32
Y 21
Z 18
A 24
B 15
Thus GRP 110

© Arnob Mukherji
Gross Rating Points (GRPs)

 How many GRP’s would be achieved by a campaign with


 Two spots in Shararat (achieving 8% rating on one occasion &
6% rating on the other)
 One spot on Devi with a rating of 2%
 One spot on Kahin Kissi Roz with a rating of 2%
 A 23% spot in Kyunki Saas Bhi Kabhi Bahu Thi?

41

© Arnob Mukherji
Average Opportunities to See

 AOTS describes the number of times on an average a viewer sees


the ad

 Formula : Average Frequency = Total GRPs ÷ Reach

 In Practice : 110 GRPs ÷ 63% Reach = 1.75 AOTS

 Therefore, 63% of the target audience will see the commercial an


average 1.75 times during the given period

© Arnob Mukherji
Cost Per GRP

 Definition : The cost of buying one rating point.

 Formula : Cost ÷ GRPs = Cost per GRP

 In Practice : Rs.220,000 ÷ 55 GRPs = Rs.400 cost per GRP

 Question: If your cost per GRP was Rs. 475 and your budget was
Rs.237,500 for the month, how many GRPs would you expect to
buy?

500
© Arnob Mukherji
Measuring Television Viewership

 Day After Recall

 The Diary Method

 The Electronic Measurement


 People Meter System
 Personal People Meter

© Arnob Mukherji
Research Databases
Research Databases Available
 Press
 Readership Research - NRS, IRS, Platinum
 Circulation - ABC
 Press Spends - TAM Press Adex
 SPARR
 TV
 Viewership Research - TAM, AMAP
 Channel Distribution - OTS
 TV Spends - Time Monitoring, TAM TV Adex
 Radio
 Radio Spends - Time Monitoring
 MRUC Radio Research - ILT
 Others
 P:SNAP, TGI
 Census, NCAER, RK Swamy Guide
 ATP, Marketmind, P:PULSE

© Arnob Mukherji
Data run process (TV)
Metering Technology - ACN 6000 system

Set Monitoring Unit

Module

TAM Run

Detector Sensors

TV Tuner

© Arnob Mukherji
Technologies

 Picture matching
 Sample of signal collected at regular intervals
 This sample ‘matched’ with master recording at ‘site’
 Accordingly Channel, Programme attributed

 Frequency matching
 Set up ‘Frequency HHs’ in each panel area to establish
channel-frequency
 Frequency of signal recorded every min
 The frequency ‘matched’ with the frequency HH data for
channel attributes
 Channel recorded at ‘site’ for the timewise programme logs

© Arnob Mukherji
Internet
Impression

 An impression happens when an ad banner is served

 If one page has 4 ads , that counts as 4 impressions

© Arnob Mukherji
Click Rate

 It is the % of times an ad is clicked divided by the number of


times it is served

 A visitor interaction with an advertisement that leads to an


advertisers destination

 If an ad is served 200 times and 10 visitors actually click on the


ad, the banner has a click rate of 5 %

© Arnob Mukherji
Click Through

 It is when a site visitor actually clicks on a banner ad and is


transported to the site of the banner advertiser

 Number of impressions served

© Arnob Mukherji
Eyeballs

 The number of ‘eyes’ which view a web page, or the number of


people who visit a site

© Arnob Mukherji
Hits

 The number of files contained in a web page , which are


successfully served to a visitor

© Arnob Mukherji
Unique Visitor

 Is the unduplicated reach of a website over a certain period of


time

 tracked through cookies

© Arnob Mukherji
Visitor

 Unlike unique visitors which is the a net number, a visitor is a


gross number, meaning two ‘sessions’ by a single user would
count as two visitors

© Arnob Mukherji
Runglee Rungliot
That’s it & no more…

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