ALPHABET SOUP TV PLANNING TERMINOLOGY FOR ALL CLIENTS

ALPHABET SOUP TV PLANNING TERMINOLOGYFOR ALL CLIENTS

TV PLANNING TERMINOLOGY

REACH

The number of people within the defined target market who are potentially exposed to the message at least once. This is usually reflected as a % or ‘000s; and is often referred to as coverage, cover or penetration.

EFFECTIVE REACH

The number of persons, within your target market, who are exposed to the advertiser’s message sufficient times to ensure meaningful and lasting retention of that message. Usually measured at 3+ frequency.

FREQUENCY

The number of times, on average that a person within the target market is supposed to have been exposed to the advertisers message.

AWARENESS

Acknowledgement that a product or brand has been advertised but without specific recall of the advertising message.


AMPS RATINGS (AR’S)

AR’s are a time weighted measurement which look at the potential reach of a

programme against a specified target audience.

4AR’s Means that 4% of the target audience will be reached (of the total TV viewing population).

However this is a duplicated figure and therefore if you have a number of spots, some people within the defined target market may be counted more than once, which makes AR’s a combination of reach and frequency.


IMPACT

The relative degree of assumed awareness, or measured ad noting, achieved by a particular creative execution in any given medium.

LSM – Living Standard Measures

A series of groupings that segment the South African Adult population based on living standards rather than any single demographic discriminator. Essentially a wealth measure ranging from LSM 1 to LSM 10.

LOADING

A premium added to the normal advertising rate to either secure a position or recognise a high demand period.

COST PER THOUSAND

The cost of reaching 1000 members of the defined target market.

This is often reflected as CPM or CPT, but R/000 is the most widely utilized notation.

CPP

This is the average cost of one AR/GRP.– The investment required to buy one rating point (1 AR)– Spot Rate = R 12 500– AR’s = 8– CPP = R1 562.50 (R12 500/ 8)


GROSS RATING POINTS

GRP’s represent the duplicated reach of a campaign, therefore combining both the reach and frequency variables.

UNIVERSE

The number of people within the defined target audience.

ADTRACK

A survey conducted on request by Impact Information which tracks verified notings and liking scores for a television commercial. Based on three results, a computer model is constructed which allows the performance of future burst strategies to be determined in advance. It is not a measure of commercial creativity, but a valuable media planning tool in determining optimum exposure and burst frequency levels.

ADVERTISING WEIGHT

The amount of advertising being planned for, or used by a brand. While it is not limited to a particular measurement, it is most frequently stated in terms of the number of messages or impressions delivered or broadcasts/ insertions placed over a period of time.

AMPS

The All Media and Products Survey is conducted annually by Market Research Africa for SAARF. The survey examines the readership, listnership, television and cinema viewing levels, as well as product and service consumption usage and purchase habits.


The relationship between AR’s, % Reach and Ave. Frequency:

– AR’s = % Reach x Ave Freq

– % Reach = AR’s div. by Ave Freq

– Ave Freq = AR’s div. by Reach

% R

each

Ratings

Ave. Freq.

Definition of TV Viewing

“Television viewing is being in a position where you are able to see the screen of a television set which is switched on to a television station or video tape playback.”

How is Viewership Measured?

SAARF AMPS Main Report and Diaries.

SAARF TAMS.

Methods are different therefore results do differ.

Viewership According to AMPS

Past Seven Day Viewership.

– Here is a list of TV services. Which of these services, if any, have you watched in the past seven days? By watching TV, we mean that you personally have watched all or part of a programme - it doesn’t matter where you watched it.

Yesterday Viewership.

Now I would like you to think about yesterday. Which, if any, of these TV services did you personally watch yesterday?

AMPS DIARIESAt this point the respondent completes a diary page which breaks down a 24 hour period in 15 minute segments.

This data then provides the basis for the average quarter hour viewership.

Despite the fact that the information is not published, the collection of TV viewing data is still collected via the diary method in parallel to TAMS.

Station Coverage of Total Population

42.8%

27.2%

16.8%

10.7%

15.7%

2.6%

0%

10%

20%

30%

40%

50%

S1 S2 S3 M-Net eTV Satellite

SAARF TAMS

In 1990 SAARF introduced a peoplemeter device into the WCI market. This device is also known as an AMPS Meter.

By 1993 the panel of peoplemeter households had been extended to include urban black households.

Diaries ceased to provide the basic day-by-day planning data used by agencies.

Why Meters?

The SAARF technical report lists a number of key benefits…

– Reports available more frequently. Weekly reports contain daily details, with information being available on individual events, programme episodes, commercial breaks or even actual spots broadcast.

– More detailed information can be provided, which is linked to extensive information about households and individuals within the panel.

– Given that there is good co-operation from panel members, data should be more reliable and accurate than the diary method.

What is a Peoplemeter?

Simply put, the peoplemeter is a microcomputer that continuously records the following data in a sampled household:

– The status of the TV set/s, M-Net decoders and VCR’s in the home.

– The channel and programme being watched.– Who in the household is watching.– The time and duration of viewership.

Viewers in the measured household log in by means of a remote control.

Visitors in the home are also measured, however not taken into account in the calculation of reach and frequency data.

In The Interest of Long-Term Patterns…

The panelists are not forcibly rotated.

However, approximately 10% change every year:

– Move residential address– Become tired of pushing buttons– Removal of panelists who co-operation levels prove

consistently poor

What Does it Measure?

Measures specific TV audiences, by demographic and provides planners with second-by-second data. It is not limited to quarter hours like the old diaries.

Consequently, it can measure audiences of:

– Programmes– Breaks– Spots– Campaigns

Makes post-broadcast campaign analysis possible.

How is the Data Collected?

Data is transferred by telephone to central collection point, where data is analysed and collated.

In non-telephone homes data is transferred to nearby telephone home by two way radio signals.

Current Situation

The number of metered homes will be increased to 1200 by April 2001, which should address the current under-representation of black households.

Now there are some 1330 meters able to report. In the latest week 1250 reported.

Currently two kinds of meters are used, the Mark 1 and Mark 2. The former can only be used in households with electricity and a telephone, serviced by an automatic exchange. The latter also requires electricity but has the ability to relay information from a non-telephone household to a base meter that is in-turn connected to a telephone.

The new Euro-Meter has been introduced into the market, and has the ability to measure the viewership of satellite TV.

Are Meters Infallible?

No! But they are No! But they are certainly more reliable certainly more reliable than the diary method!than the diary method!

The real problem lies not with The real problem lies not with the data generation, so much the data generation, so much

as with the management of the as with the management of the data and the use thereof…data and the use thereof…

namely sampling error!namely sampling error!

AMPS Ratings

“Never before in the field of media planning, has something so small confused so many!!”

Audience Measure

Audience (AMPS) Rating.

This is in essence a measure of how many people you reach on TV when you advertise.

On a simple level, 1 AR represents 1% of the target market.

AR = Time Viewed x 100 Available Time 1

Calculating an AR

Universe = 4 Time Viewed Event Duration

Viewer 1 20 mins 30 mins




Total 60 mins 120 mins

AR = 60 minutes x 100 120 minutes

AR = 50 AR’s

Difference Between AR’s and GRP’s

A GRP is simply the product of reach and frequency.A GRP is simply the product of reach and frequency.A GRP is simply the product of reach and frequency.A GRP is simply the product of reach and frequency.

An AMPS Rating is the proportion of viewers, averaged An AMPS Rating is the proportion of viewers, averaged across a time period i.e. single commercial, ad break, across a time period i.e. single commercial, ad break, quarter hour or programme, and then reflected as a quarter hour or programme, and then reflected as a

percentage of the total number of individual panel members percentage of the total number of individual panel members in the relevant group, for example, Men Age 25-49.in the relevant group, for example, Men Age 25-49.

An AMPS Rating is the proportion of viewers, averaged An AMPS Rating is the proportion of viewers, averaged across a time period i.e. single commercial, ad break, across a time period i.e. single commercial, ad break, quarter hour or programme, and then reflected as a quarter hour or programme, and then reflected as a

percentage of the total number of individual panel members percentage of the total number of individual panel members in the relevant group, for example, Men Age 25-49.in the relevant group, for example, Men Age 25-49.

An Example…

Let us assume that we have a sample of four viewers and each of them watches a variable amount of a 15 minute TV programme.

What is the difference between calculating viewership on Diaries and Meters?

Based on the Diary…

Universe = 4 Time Viewed % Reached (GRP's)

Viewer 1 5 mins 25.00%




30 mins 75.0%

Diary Method = 75% Reach

Considers all viewers to the 15 minute segment to be full viewers, regardless of the actual amount of time spent viewing.

Based on the Meters…

Universe = 4 Time Viewed % Reached (AR's)





30 mins 50.0%

Meter Method = 50% Reach

Weights viewers in proportion to the actual amount of time spent viewing, producing a reduced overall viewership or reach of 50%.

How Does Buying Lots of AR’s Work?

If we buy one TV spot of 8 AR’s we will speak to approximately 8% of our target market.

In other words, 8% of the target market will see the ad once.

The circle on the right represents one TV advert.

8 AR’s8 AR’s

Spot 1 = 8 AR’sSpot 1 = 8 AR’s

Buying a Further Spot of 10 AR’s…

Total AR’s will be 18. (Spot 1Spot 1 at 8 AR’s plus Spot 2Spot 2 at 10 AR’s)

This will reach 8% of our target market ONCE. (3% from Spot 1Spot 1 plus 5% from Spot 2Spot 2)

And it will reach 5% of our target market TWICE.(5% overlap from Spot 1Spot 1 and Spot 2Spot 2)

In total we will reach 13% of our target market. (8% once and 5% twice)



3%3%

5%5%

5%5%

Buying a Third and Final Spot of 7 AR’s…

Total AR’s will be 25. (Spot 1Spot 1 at 8 AR’s plus Spot 2Spot 2 at 10 AR’s plus Spot 3Spot 3 at 7 AR’s)

5%5% of the market will see the ad once. (2% Spot 1Spot 1, 2% Spot 2Spot 2 and 1% Spot 3Spot 3)

7%7% will see the ad twice, and 2%2% will see the ad three times.

A total of 14% of our market will be exposed to the ad. (5%5% once, 7%7% twice and 2%2% three times)


Spot 2 = 10 AR’sSpot 2 = 10 AR’sSpot 2 = 7 AR’sSpot 2 = 7 AR’s

2%2%

2%2%1%1%2%2%

3%3%

3%3%

1%1%

Terminology

TV Planning Terminology

AR’s (Audience / AMPS Ratings)– The standard measurement for TV viewing. On a simple

level, 1 AR represents approximately 1% of the TV target market

Reach or Coverage– The percentage of viewers within the target market who

potentially saw the ad at least once i.e. one or more times.

Average Frequency– The AVERAGE number of times the target market is

potentially exposed to the commercial

Reach

Using the previous example…

A total of 14% of our market will be exposed to the ad regardless of how many times.

5%5% saw it once, 7%7% saw it twice and 2%2% saw it three times.


Spot 2 = 10 AR’sSpot 2 = 10 AR’sSpot 2 = 7 AR’sSpot 2 = 7 AR’s

2%2%

2%2%1%1%2%2%

3%3%

3%3%

1%1%

Average Frequency

From the previous diagram it is apparent that in this example 14% of the target market saw the commercial.

The next question is how many times on average did they see it?

Some saw it once (5%), some saw it twice (7%) and some saw it three times (2%).

To calculate frequency the simple formula is…

– Number of AR’s = Reach x Frequency

So Let’s Work it Out…

So in this example…

– 25 AR’s = 14% Reach x Frequency– Therefore Frequency is 1.8

So, even though some people see the ad once, some twice and some three times, on average people will see the ad 1.8 times.

The average of how many times people see your ad is what The average of how many times people see your ad is what we call the average frequency!we call the average frequency!

The average of how many times people see your ad is what The average of how many times people see your ad is what we call the average frequency!we call the average frequency!

Relationship Between Reach and Frequency

As we saw in the previous example, any TV campaign consisting of a number of AR’s, is made up of a mix of reach and frequency.

For the same number of AR’s you may have a different breakdown…

For a campaign of 100 AR’sFor a campaign of 100 AR’s

100 AR’s = 50% Reach x 2 Frequencyor

100 AR’s = 75% Reach x 1.25 Frequency

For a campaign of 100 AR’sFor a campaign of 100 AR’s

100 AR’s = 50% Reach x 2 Frequencyor

100 AR’s = 75% Reach x 1.25 Frequency

What Does This Mean?

TV advertising using higher reach means that more peoplemore people in your target market will see the ad, but fewer timesfewer times.

TV advertising using higher frequency means that less peopleless people in your market will exposed to the ad, but more timesmore times.

This concept has major implications for the TV strategies that you use. This will be discussed in more detail next time!

A Simple Guide…

The Calculation ModelThe Calculation Model

If an AR is the product of reach times frequency, then…

Reach = AR’s / Frequency

Frequency = AR’s / Reach

RatingsRatings

FrequencyFrequencyReachReach

The investment required to buy one rating point (1 AR)

– Spot Rate = R 12 500– AR’s = 8– CPP = R12 500 / 8 AR’s = R 1 562.50– For every rating bought you pay R1 562.50

Cost Per Point

How to use CPP

Indicates cost effectiveness of a programme against a specific market, it cannot replace all other variables.

Programme content and environment.

Reach and frequency contribution of the programme.

Programmes might demand a premium - good quality and consistent audiences.

Using CPP’s

When planning and buying TV spots, CPP’s help us to establish how cost effective a TV programme is…

Programme Projected AR Cost CPP

Generations 10.0 R 60,000 R 6,000

Days of our Lives 8.0 R 40,000 R 5,000

Sunset Beach 5.0 R 15,000 R 3,000

Egoli 5.0 R 25,000 R 5,000

Don’t always Don’t always look at capital look at capital

cost!!cost!!

Calculating TV Budgets

A TV budget is calculated by multiplying the number of AR’s that you want to achieve for the campaign, by the cost to buy one AR i.e. the cost per point.

Rating Objective x CPP = Budget

– 300 (AR Target) x R 2 500 (CPP Target) = R 750 000 Budget

– 180 (AR Target) x R 4 000 (CPP Target) = R 720 000 Budget

The All Adult CPP for a 30” commercial in the peak time period i.e. between 18h00 and 22h00 can vary from:

– ± R2,400 in January– ± R4,700 in November

A 100% Variance!!A 100% Variance!!

CPP and Media Inflation

TV Planning Tools

The Programmes we utilise to plan TV are provided by TELMAR, an international company that develops and markets media planning software.

The data is supplied on a weekly basis from the SAARF Peoplemeter panels (AMPS meter weekly reports).

These tools enable us to…

– Develop TV plans against Reach and Frequency objectives– Do post campaign evaluations– Do Channel & Programme Analyses

This is a typical slide (with bold title)

And this is what the text looks like. It can either build point by point as it does here, or you can adjust the animation to suit your specific requirements (difficult to fuck up too much).

– You can do bullet points...– We prefer them simple in style, like this.– Or, as with any of this, adjust as you see fit.

All very simple really, the rest I am sure you can figure out for yourself.

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ALPHABET SOUP TV PLANNING TERMINOLOGY FOR ALL CLIENTS