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PROGRAMME RATING

Programme rating is a measure of potential reach of broadcast media and is expressed as a percentage.

Program rating}

= No. of households viewing the programme x 100

Total no. of households owning TV sets

Gross Rating Point

GRP is a measure of frequency of exposure and is expressed as GRP = Reach x Frequency.

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EFFECTIVE FREQUENCY & REACH

Effective Frequency’ is the number of exposures, in an advertising cycle, assumed to be able to maximize the target audience’s temperament to act.

‘Effective Reach’ is the number of target audience individuals reached at the effective frequency level in an advertising cycle.

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Media Scheduling Results Should be

Reach+

Frequency

+Continuity

(how long the campaign runs—

continuous vs. flighting vs. pulsation)________________

Results should be 100%

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ADVERTISING IMPACT

No one really knows the exact number of exposures necessary for an ad to make an impact.

‘Impact’ is the ad message actually being perceived by the audience.

Impact is taken into consideration while measuring effective frequency.

Most advertisers have settled on three exposures as the least number; fewer than three is assumed to give insufficient reach, and more than ten are considered overexposure and thus ineffective reach.

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Budget Consideration

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One of the important decisions in the development of media strategy is cost estimating.

The value of any strategy can be determined by how well it delivers the message to the audience with the lowest cost and least waste.

Advertising and Promotional cost can be categorized in two ways. The Absolute cost and Relative Cost

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Absolute cost

The absolute cost of the medium or vehicle is the actual total cost required to place the message.

for example a full page four color ad in the Newsweek magazine cost about Rs.1,83,000…is an absolute cost.

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Relative Cost Relative Cost refers to the relationship

between the price paid for advertising time or space and size of audience delivered (it is used to compare media vehicles.

Relative Cost are important as Managers must try to optimize audience delivery within budget constraints

Relative cost must be evaluated of the media vehicles used for delivering the message.

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Determining Relative Costs of Media.

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Relative Costs1. CPM (Cost Per Thousand)

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Relative Costs1. CPM (Cost Per Thousand)

Cost per mille (CPM) is also called as cost per thousand (CPT), is a commonly used measurement in advertising.

In Latin mille means thousand, therefore, CPM means cost per thousand.

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Radio,TV,Newspaper,Magazines,advertising can be purchased on the basis of what it costs to show the ad to one thousand viewers (CPM). For years the magazines industry has provided cost breakdowns on the bases of cost per thousand reached.

It is used in marketing as a standard to calculate the relative cost of an advertising campaign or an ad message in a given medium. Rather than an absolute cost.

CPM estimates the cost per 1000 views of the advertisement.

Relative Costs CPM (Cost Per Thousand)

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CPM (Cost Per Thousand)

Circulaton

000,1 cost) (absolute space ad ofCost CPM

Readers Digest and Success Review

Refer page 273

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Which is more cost efficient on a CPM basis?

Readers Digest 8000 Cost per page

CPM = ------------------------x 1000 = 2 .14 3725000 Circulation____________________________________________________________

Competition Success Review 6000 Cost per page

CPM = ---------------------------x 1000 = 1.7

3536,000 Circulation __________________________________Here we see that all other things being more or

less equal Competition Success Review is more cost

effective media vehicle than readers digest.

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CPM Formula and Example

A-- :30 TV Commercial in “Friends”

Which is more cost efficient on a CPM basis?

CPM = $250,000

20,000,000X 1,000 = $12.50

B-- :30 TV Commercial in “Monday Night Football”

CPM = $300,000

30,000,000X 1,000 = $10.00

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CPM Practice Problem

CirculationTime

MegazineNews Week

Per-page cost Rs.202000 Rs.183,000

Circulation 4,000,000 3,100,000

CPM ? ?

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Relative CostsCPM (Cost Per Thousand)

Allows to marketers to compare all media classes and vehicles using the same yardstick

Used for all mediums, but primarily print “M” stands for 1,000 “CPM” Should not be the only

consideration when selecting media “CPM” Measures cost efficiency, not

effectiveness Be careful of inter media comparisons. CPM may over estimate or underestimate

the actual cost effectiveness. (page 325) B&B

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Relative Costs:CPRP Cost Per Rating Point is used to compare cost figures of Broadcast media.

The broadcast media provide a different comparative cost figure, is referred as Cost Per Rating Point.

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Relative Costs:2. CPRP Cost Per Rating Point

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Relative Costs:2. CPRP Cost Per Rating Point

CPRP Cost Per Rating Points formula is ..

Cost of Commercial Time CPRP = --------------------------------------------- X 1000 Programmer Rating

(120,000)Cost of Commercial Time CPRP = --------------------------------------------------------x 1000 = 4000 ( 30) Programmer Rating

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CPRP Practice Problem

Sas bhi kabhi

Discovery

Cost per spot ad $10,000 $7,500

Rating Point 18 17

Reach (households)

197,100 186,150

CPRP ? ?

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Relative Costs (Newspapers)For News Paper cost effectiveness is based on Daily Inch Rate

News India Times Rs.257

Deccan News Rs.352

For News papers cost effectiveness is on the daily inch rates.. Cost per column inch of the paper

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(Media Selection : Television)

HUT (Households Using Television)—Households Using Television for five or more minutes as a percentage of all homes with a TV (also known as TV Households)

100)Households TV (All Estimate Universe

in Use TVSets with Households of No. HUT

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Media SelectionTelevision

Rating—Estimated percentage of the universe of TV households (or other specified group) tuned to a program at once. Ratings are expressed as a percent.

Current Nielsen Ratings

DMA Rank

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Programme Rating PR is a measure of potential reach of

broadcast media and is expressed as percentage.

30PR_____X 100 = 30 100

100)Households TV (All Estimate Universe

Program Viewing Households Rating

Current Nielsen Ratings

DMA Rank

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Rating Practice Problem

Assume there are 10 TV households in the tiny hamlet of Kompally, AP. Four of those households are watching “ Sasbhi Kabhi Bahu thi” on Chanel 7

Two other homes are watching “DON " - a reality show, in which viewers are forced to locate bags of chips and open PEPSI cans - all without any outside help!

What is the Rating for that Channel 7 show in Kompally?

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KOMPALLY,SECUNDERABAD

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Share

Share—The percent of households (or persons) using television who are tuned to a specific program, station or network in a specific area at a specific time.

100)Television Usings(Household HUT

RatingShare

100TV UsingHouseholds ofNumber

Program Viewing HouseholdsShare

or

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HUT, Rating, Share Examples

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GRPs (Gross Rating Points) Gross Rating Points—measures the impact or

weight delivered by a particular media schedule. A duplicated rating (reach), so the number

can exceed 100 Gives an idea about the odds of the target

audience actually viewing ad

Guidelines 2500 GRPs = 70% awareness 1000-2500 GRPs = 33% awareness <1000 = almost no awareness

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GRPs (Gross Rating Points)

If GRPs for a certain media schedule are 90 then.. 45% of target market saw ad twice or 90% of target market saw ad once or 10% of target market saw ad 9 times, etc.

spots) of no. x rating (average ratings all of sumGRPs

FrequencyReachGRPs OR

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Calculating GRPs and Frequency