Media toolset

Imagine you are

trading beer

How would you settle payments

with beer manufacturer?
Will you pay him all the cost
even if no one approached
your stall?
Obviously you must pay in
proportion to those bottles
that were bought
The fairest payment model
You pay for what was demanded
 Sale not presence on a stall
has value and initiates
payment
The same is with media
 Contacts not emissions define
the effectiveness
 and cost of the campaign (for
most measurable media TV)
Beer sale Commercial exposure
 1 rating denotes a number of exposures equivalent to
1% of the target audience exposed to commercial

If there are 200.000 M25-54 then 1 rating = 2.000 (a number

equivalent to 1% of the M25-54 were exposed to an ad)
To calculate turnover you
simply total transactions

When you add exposures you

get gross exposures (Gross
Rating Points = GRPs)

If you ran 4 spots, and they

ALL earned a 10 rating, we
can declare that campaign
earned 40 GRPs
Equal amount of bottles may
be sold in different ways

The same is with exposures

To many consumers
 In media it refers to REACH

Reach is % of the target

population that have received
the message at least once
Factors that add to high reach

Beer trade industry Media industry

 A stall at hypermarket  High rating station

 At different hypermarkets  Use wide range of stations

 Trade the whole day  More day-parts

 Trade the whole week  More week days

 Different brands  Different program genres

 Have mobile stall at beer  Use high-rating one-time

festival, … events (World Cup, …)
So it depends on your goals and skills

You may sell every item into 55 of the 100 GRPs may reach
different hands viewers for the first time
 Thus having more  The remaining 45 GRPs are
exclusive consumers duplicated exposures
…these poor someone may consume extra
 If you know how many beers
you have sold and the number
of consumers

You can tell how many bottles

everyone drinks on average
In media it refers to FREQUENCY

Frequency denotes the number of

times that the average member of
the target (who’s been reached) is
exposed to a message
Factors that confine reach and add frequency

Beer trade industry Media industry

 Local small pub  Low rating station

 At one sleeping district  Limited amount of stations

 Trade only at noon  Limited day-parts

 Trade only on Sundays  Limited week days

 Trade only one brand  Limited program genres

In media it refers to duplication

Because of duplications reach

is always lower than 100%!
High capacity plant may
produce annual amount of
bottles that exceed population

Heavy campaign may have

over 100 GRPs
 Monetary value of exposures and GRP

CPT (CPM) is the cost of CPP is the cost of

delivering 1.000 exposures exposing 1% of the target
among a target audience audience
Factors that influence cost

Beer trade industry Media industry

 Cost may vary by outlet  Cost may vary by stations

 Cost may vary  Cost may vary by day-parts

 Peak and off seasons  Cost may vary by months

 Cost may vary by brands  Cost may vary by programs

Liter is a standard in beer industry…

Draughts/bottles of different size have different value to

consumer - thus must have different cost as well
 …Eq.GRP in media

To assess communication and monetary value of TV

commercials correctly we need to adjust them to a certain
standard - usually 30”
Affinity

 Men are heavier beer  The same in media -

drinkers than women calculate exposures (GRPs)
for diff. audiences and
 To assess how heavier you compare them
simply calculate sales for
men and women and  Dividend of GRPs for two
compare them audiences is AFFINITY

So what? What can we obtain of it?

Affinity reflects addiction
& popularity of the
program among the
target

Moreover it is important
buying variable when
related to buying
audience
Affinity as a buying variable

 The station sells ratings for P16-49, CPP is $1.000

 The target group is W20-45

 The program delivers 10 GRPs for P16-49, 8 GRPs for W20-45

 What is the cost of buying 1 GRP for W20-45?

 What is the affinity of W20-45 to P16-49?

 Why affinity is so important?

Can GRPs be added for
different target groups?
 1 GRP is a percent of
specific target, adding
diff. %% is incorrect

Can GRPs be added across

different media?
 Practically Yes. But note
you are adding ‘saw the
ad’ vs. ‘in the room’, etc.

Other questions…