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How auditing radio campaigns helps improve planning and buying efficiency Paola Furlanetto Paola Furlanetto Managing Director & Founding Partner Managing Director & Founding Partner A+ Advertising Audit A+ Advertising Audit Copyright A+ Copyright A+ Ad Audit Ad Audit 2007 2007

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Radio auditing Most Common inefficiency in Planning and Buying Radio Fine Tuning Radio Planning and Buying: 5 guidelines

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Page 1: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

How auditing radio campaigns helps improve planning and buying efficiency

Paola FurlanettoPaola FurlanettoManaging Director & Founding PartnerManaging Director & Founding PartnerA+ Advertising AuditA+ Advertising Audit

Copyright A+ Copyright A+ Ad AuditAd Audit

20072007

Page 2: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Contents

1.

Introduction Media Auditing in a snapshotThe Italian Scenario

2.

The Importance of building and maintaining Pools for radio auditing.

3.

Planning and Buying Radio: Most common Inefficiencies

4.

Fine tuning Radio Planning and buying : 5 guidelines

5.

Auditing the future: key trend

Page 3: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Media Auditing in a Snapshot

Page 4: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Media Auditing in Brief

What is itA systematic, constant control activity

of media costs & communication results

GoalAssess (the most) relevant part of company communication expenditures

PeculiarityConducted by third party Institutes,

having specific know how in the media planning business

When it is doneex-post (at the end of FY or every quarter/six months)

Page 5: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Stock Exchange listings require cost item analyses

Multinationals need to exercise control/authority over regional offices

Factors that have contributed to its development

Propensity, typically Anglo-Saxon, to measure 1. Cultural

2. Formal

3. Management

Page 6: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Today in Italy

Media Auditing is a fast growing market. Key perceived benefits are:

1. Knowledge“

I want to check my own performance

supported by an objective, third party institute”

2

Formal Assessment “

I want to be certified for a job done properly”

3.

Anticipate the future “

I want to be proactive and anticipate requests that will sooner or

later come from procurement / my boss”

Page 7: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Radio Auditing

Page 8: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Radio Auditing as it is

Not commonMainly based on cost checks

forgetting that, for the same price, radio advertisements of different performance / effectiveness may be bought.

Page 9: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

In line with other media, take into consideration:

Radio Auditing as we believe it should be

Cost and Quality

Page 10: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Company Compared toCompared toPool’s

Average

How Auditing Works

Pool = All radio campaignsaddressed towards the same target

Not as expectation but in reality

Page 11: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Methodology

The comparison is carried out on the basis of parameters: -

frequently used in media planning/buying

-

consolidated in international auditing methodologies

Page 12: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Qualitative Parameters (Media Planning)

1. Effective ReachPercentage of people -in target-

reached a minimum number of times

(e.g. 3, 6,)

2. Position in breakPercentage of pressure in qualitative positions (e.g. first position in break or stand-alone position)

3. AffinityConcentration of target audience among overall contacts

4. Peak Time Share of advertising pressure developed by the highest audience time bands

(time bands definitions varies according to target: late morning HWS, afternoon teens, drive time for adults ..etc)

Page 13: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Cost Parameter (Media Buying)

5. Net CPPCost of a unit of advertising pressure (Campaign cost/GRP)

Page 14: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Radio: The Italian Scenario

Page 15: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Radio in Numbers

BroadcastingBroadcastingMore than 1.100 stations650 of them are represented by an association 218 Monitored by Audiradio,18 with Nielsen data on advertising campaigns (6am to 12pm).

InvestmentsInvestments5% of Advertising expenditureVery much influenced by TV overbooking

SurveySurveyAudiradio: Consistent, reliable

Page 16: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Audiradio

Survey in Brief

Page 17: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

2 Issues

Page 18: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

“Frequency confusion”

Stations broadcast on more than one frequency and change frequencies according to the area. -> Same frequency, many broadcasters.

Page 19: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

“Lack of transparency”

An official Census of Broadcasters and Frequencies

does not exist

Page 20: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Feasibility National and Local Auditing

National stationsSyndications/Commercial

packages Local stations

CNR: N.1 station monitored (Gamma Radio MI)

Nr.1 station (Lattemiele) included in CNR,

thus not monitored

B) Commercial Position Inside the Break

D) Effective Reach

E) Share of Pressure (GRP) in peak time

# Stations with all info (a,b,c,d,e)

#13 stations: RAI1,2,3 - RTL -105 -RDS - RISMI-DJ -RMC-KK-101-

CAPITAL -24 - m2o

Not available (round table with Nielsen / Sales House professionals

would be suitable)

LatteMIele, Gamma station, RItalia anni 60 MI.

Others: Commercial emission monitoring needed

Available for all the stations surveyed by Audiradio

Available for all the stations surveyed by Audiradio

Source: Nielsen (Adex Survey)

A) Commercial Emission Monitoring

Nr.15 stations: RAI1,2,3 - RTL -105 -RDS -

RISMI-DJ -RMC-KK-101-CAPITAL-24-PLAY-m2o (RISMI/KK

included in Italia5, KK included in Radio5, thus not "tracked" by

Nielsen)

Italia 5: Nr.1 station monitored (station Italia Anni 60 MI)

Available for all the stations monitored by Nielsen

Source: Audiradio

C) GRP (Pressure) on target

Nr. 13 stations: (no Play station, no Italia 5)

CNR: all (38 + 2 multireg:LatteMilele e Cuore)

Italia 5: Rismi and KK (national), all the local stations: Subasio, Zeta, KK, Company, Bruno, Norba +multireg RItalia anni 60

Page 21: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

2. Building and maintaining a balanced cost and quality pool

Page 22: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Company Compared toCompared toPool’s

Average

How Auditing Works

Pool = All campaigns on airaddressed to the same target

Not as expectation but in reality

Page 23: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Building Pools: 3 phases

1.

Interviews Market Professionals

2.

Software Run and Mechanic attribution

3.

Manual check

Page 24: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Building Pools: Phase 1) Interviews

ObjectiveObjectiveDefine key radio planning targetsEstimate their share on overall radio expenditures

InterviewsInterviewsTo media agencies, sales houses , software houses

ResultsResults6 Broad Targets

Page 25: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

ObjectiveObjectiveSet up 6 target pools. Attribute flights to their proper target

ProcessProcess1. Establish Average Radio Affinity Index per target 2. Define thresholds for “Adults” attribution3. Attributes remaining flights to their pool

ResultsResultsPool entity to be fine tuned.

Building Pools: Phase 2) Mechanics

Page 26: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Building Pools: Phase 3) Manual Check

ObjectiveObjectiveOverall Consistency (coherence between phase 1 and 2)

ProcessProcess1. Manual Check of 5.524 flights (in 2006), if doubts arise

-> either the evaluation committee agreed on the attribution-> or they were rejected (less than 0,6% of total radio flights).

2. In order to attribute a correct number of flights to Adult +18 pool- which is a quite common target (interviews point out 20-25%)-the affinity threshold shifted from 103 to 115

3. In case of 2 different target options available flights were attributes to their elective target (e.g detergent to HW, make up to women etc.)

ResultsResultsProcedure in line with both experts expectations and methodology requirements

Page 27: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Pools Aged Share Flight Share GRP (+11yo)

Adults +18 23% 42%

Young and Young Adults 11-34 28% 26%

Housewives +18 11% 12%

Men all 4% 5%

Women all 12% 7%

Entrepreneurs, Managers etc

All 23% 9%

Base Total

5.524

Total

656.176

2006 Pools

Page 28: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Trend 06 vs

05 (comparable data)

Pools 2005 2006 Trend

Adults

+11yoFlight

Grp

Adults+11

Grp

TG

21%

41%20%

39% -

Young &

Young AdultsFlight

Grp

Adults+11

Grp

TG

28%

28%

37%

30%

30%

39%

+

Housewives Flight

Grp

Adults+11

Grp

TG

16%

14%

17%

12%

13%

16%

-

Men Flight

Grp

Ind

Grp

TG

4%

6%4%

5% =

Women Flight

Grp

Ind

Grp

TG

10%

5%

6%

11%

5%

7%

+

Entrepreneurs

Managers etc.Flight

Grp

Ind

Grp

TG

21%

7%

10%

23%

7%

11%

+

Page 29: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Why are Pools so important?

They compare similar realitiescompare similar realities(target A flight is compared with all campaigns aimed at target A)

They provide info on what has been feasible, on averageprovide info on what has been feasible, on average.-> feasibility

(instead of media potential, real market feasibility)-> average

(we’re not talking about best in class, in brief you don’t need extra skill to do it)

Page 30: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Market analysis with and w/o a pool

Page 31: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

N e t w e ig h te d C P G - f lig h ts 2 0 -9 0 0 g rp 's - ta rg e t 1 1 -3 4

0

2 0 0

4 0 0

6 0 0

8 0 0

1.0 0 0

1.2 0 0

1.4 0 0

1.6 0 0

1.8 0 0

2 .0 0 0

0 10 0 2 0 0 3 0 0 4 0 0 5 0 0 6 0 0 7 0 0 8 0 0 9 0 0

G rps

C pG

How

auditing improves

buying: comparing

CPP

Sources

Audiradio, Nielsen AdEx

Software: Soglie Media Soft

ad hoc release

for

A+

For

confidentiality

reasons

the exemple

on discount

Is

based

on Nielsen net data (estimate) and do not

take into

consideration

A+

info on real

market price.

All Flights All Flights (20(20--900grps)900grps)

3.5113.511

Average

Cpp 515,8

Average

Cpp 515,8

Page 32: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

N e t w e ig h te d C p g - f lig h ts 2 0 -9 0 0 g rp 's - P O O L 1 1 -3 4

0

2 0 0

4 0 0

6 0 0

8 0 0

1 .0 0 0

1 .2 0 0

1 .4 0 0

1 .6 0 0

1 .8 0 0

2 .0 0 0

0 1 0 0 2 0 0 3 0 0 4 0 0 5 0 0 6 0 0 7 0 0 8 0 0 9 0 0

G rp s

C p g

N e t w e ig h te d C P G - f lig h ts 2 0 -9 0 0 g rp 's - ta rg e t 1 1 -3 4

0

2 0 0

4 0 0

6 0 0

8 0 0

1.0 0 0

1.2 0 0

1.4 0 0

1.6 0 0

1.8 0 0

2 .0 0 0

0 10 0 2 0 0 3 0 0 4 0 0 5 0 0 6 0 0 7 0 0 8 0 0 9 0 0

G rps

C pG

How

auditing improves

buying: comparing

CPP

Average

Cpp 515,8

Average

Cpp 515,8

Average

Cpp 387,8

Average

Cpp 387,8

Sources

Audiradio, Nielsen AdEx

Software: Soglie Media Soft

ad hoc release

for

A+

For

confidentiality

reasons

the exemple

on discount

Is

based

on Nielsen net data (estimate) and do not

take into

consideration

A+

info on real

market price.

All Flights: 3.511All Flights: 3.511

Pool 11-34yo Flights: 1.253Pool 11Pool 11--34yo Flights: 1.25334yo Flights: 1.253

CPP are index. A+ pool costs kept confidential

Page 33: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Affinity

Index

on Target 11-34 yoN e t w e ig h te d C p g - f lig h ts > 2 0 g rp 's - T a rg e t 1 1 -3 4

0

2 0 04 0 0

6 0 08 0 0

1 .0 0 01 .2 0 0

1 .4 0 01 .6 0 0

1 .8 0 0

2 .0 0 02 .2 0 0

2 .4 0 02 .6 0 0

2 .8 0 0

3 .0 0 03 .2 0 0

3 .4 0 03 .6 0 03 .8 0 04 .0 0 0

0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 1 0 0 1 1 0 1 2 0 1 3 0 1 4 0 1 5 0 1 6 0 1 7 0 1 8 0 1 9 0 2 0 0 2 1 0 2 2 0 2 3 0

A ffin ity

C pg

Net w eighted Cpg - flights>20 grp's - PO O L 11-34

0

2 004 00

6 00

8 001 .0 00

1 .2 00

1 .4 001 .6 00

1 .8 00

2 .0 002 .2 00

2 .4 002 .6 00

2 .8 00

3 .0 003 .2 00

3 .4 00

3 .6 003 .8 00

4 .0 00

12 0 13 0 14 0 15 0 1 60 1 70 1 80 1 90 2 00 21 0 2 20 23 0

Affin ity

Cp g

All Flights: 3.511All Flights: 3.511

Pool 11-34yo Flights: 1.253Pool 11Pool 11--34yo Flights: 1.25334yo Flights: 1.253

3030 220220

140140 220220

Sources

Audiradio, Nielsen AdEx

Software: Soglie Media Soft

ad hoc release

for

A+

For

confidentiality

reasons

the exemple

on discount

Is

based

on Nielsen net data (estimate) and do not

take into

consideration

A+

info on real

market price.

800800

200200

4.0004.000

200200

Affinity

CPP

Page 34: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

How many GRPs

do we need to get 60% Reach 3+?

Target and Pool: Adults +11

Target and Pool: 11-34 yo

Page 35: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

How many GRPs

do we need to get 60% Reach 3+?

Reach 3+ - flights>20 grp's - POOL 11-34

0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600

Grp's

Reach +3

Reach 3+ - flights>20 grp's - Target Individuals +11

0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600

Grp's

Reach 3+ Target and Pool: Adults +11

Target and Pool: 11-34yo

60%

60%

Adults700-800 grp

to get 60% reach 3+

Adults700-800 grp

to get 60% reach 3+

11-34 yo500-600 grp

to get 60% reach 3+

11-34 yo500-600 grp

to get 60% reach 3+

Target and Pool: 11-34 yo

Page 36: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Highlights on 2006 Radio Planning

Page 37: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Pools and KPIs

I Pool % First

positiond

& stand

alone

%

prime time

DT 7-9

N° stations per

40-60% reach

3ots

Adults +18 Grp

Ind

Grp

TG20%-

3% 21% Min 7

Average 12

Young

Young Adults

Grp

Ind

Grp

TG15%-

2% 12%

11%

Min 2

Average 6

HW Grp

Ind

Grp

TG23%-

3% 27%

29%

Min 9

Average 12

Men Grp

Ind

Grp

TG22% -

4% 21% Min 6

Average 11

women Grp

Ind

Grp

TG14% -3 % 14% Min 11

Average 14

Entrepreneurs, Managers etc

Grp

Ind

Grp

TG18% -

2% 29%

30%

Min 8

Average 5

1.

Top positions are mainly used by HW or Male1.1.

Top positions are mainly used by HW or MaleTop positions are mainly used by HW or Male

Page 38: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

I Pool % First

positiond

& stand

alone

%

prime time

DT 7-9

N° stations per

40-60% reach

3ots

Adults +18 Grp

Ind

Grp

TG20%-

3% 21% Min 7

Average 12

Young

Young Adults

Grp

Ind

Grp

TG15%-

2% 12%

11%

Min 2

Average 6

HW Grp

Ind

Grp

TG23%-

3% 27%

29%

Min 9

Average 12

Men Grp

Ind

Grp

TG22% -

4% 21% Min 6

Average 11

women Grp

Ind

Grp

TG14% -3 % 14% Min 11

Average 14

Entrepreneurs, Managers etc

Grp

Ind

Grp

TG18% -

2% 29%

30%

Min 8

Average 5

Pools and KPIs

2. Campaigns targeted to Males have also the highest percentage

of stand-alone positions

2. Campaigns targeted to Males 2. Campaigns targeted to Males have also the highest percentagehave also the highest percentage

of standof stand--alone positionsalone positions

Page 39: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

I Pool % First

positiond

& stand

alone

%

prime time

DT 7-9

N° stations per

40-60% reach

3ots

Adults +18 Grp

Ind

Grp

TG20%-

3% 21% Min 7

Average 12

Young

Young Adults

Grp

Ind

Grp

TG15%-

2% 12%

11%

Min 2

Average 6

HW Grp

Ind

Grp

TG23%-

3% 27%

29%

Min 9

Average 12

Men Grp

Ind

Grp

TG22% -

4% 21% Min 6

Average 11

women Grp

Ind

Grp

TG14% -3 % 14% Min 11

Average 14

Entrepreneurs, Managers etc

Grp

Ind

Grp

TG18% -

2% 29%

30%

Min 8

Average 5

Pools and KPIs3. To reach 50%+ of the target at least 3 times, we needAn average of …-

5/6 stations for Young and Entrepreneurs targets

3. To reach 50%+ of the target at least 3 times, we need3. To reach 50%+ of the target at least 3 times, we needAn average of An average of ……--

5/6 stations for Young and Entrepreneurs targets 5/6 stations for Young and Entrepreneurs targets

Page 40: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

I Pool % prime

posizioni

e singole

%

prime time

DT 7-9

N° emittenti

per

40-60% reach

3-5 ots

Adults +18 Grp

Ind

Grp

TG20%-

3% 21% Min 7

Media 12

Young

Young Adults

Grp

Ind

Grp

TG15%-

2% 12%

11%

Min 2

Media 6

HW Grp

Ind

Grp

TG23%-

3% 27%

29%

Min 9

Media 12

Men Grp

Ind

Grp

TG22% -

4% 21% Min 6

Media 11

women Grp

Ind

Grp

TG14% -3 % 14% Min 11

Media 14

Entrepreneurs, Managers etc

Grp

Ind

Grp

TG18% -

2% 29%

30%

Min 8

Media 5

Pools and KPIs3. To reach 50%+ of the target at least 3 times, we needAn average of …-

5/6 stations for Young and Entrepreneurs targets

-

14 stations for the Women target

3. To reach 50%+ of the target at least 3 times, we need3. To reach 50%+ of the target at least 3 times, we needAn average of An average of ……--

5/6 stations for Young and Entrepreneurs targets5/6 stations for Young and Entrepreneurs targets

--

14 stations for the Women target14 stations for the Women target

Page 41: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

IntroductionMost common Inefficiencies in Radio Planning and Buying

Page 42: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

1. No check on commercials

FactFactThere is rarely a check on commercials’

broadcasting

(# of aired commercials, scheduling )

ConsequencesConsequencesUn-successful campaigns improperly attributed to radio inefficiency

while due to partially aired commercials

VarianceVariance+/-

50% in number of grp

Page 43: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

2. Missing Post Analysis

FactFactPost analysis hardly conducted.

ConsequencesConsequencesGRP may change consistently according to station listening evolution.

VarianceVariance+/-

25% in number of grp

Page 44: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Post Analysis Top 20 flights 1 sem

07 Audience variance vs

1 sem

0 (comparable data)*

Campaign Advertiserbegin of

flight end of flightNr.

SpotsNr.

Radios

Grp's Audiradio

1 H 07

Grp's Audiradio

1 H 06 Delta1 DMC GIORNO E NOTTE PRO. PROD.D. DMC SA ROVERETA F.RSM 20070208 20070630 1372 3 2.365,4 2.154,9 9,8%2 BLOCKBUSTER PRO. NOLEGG.VCR BLOCKBUSTER ITALIA MILANO 20070108 20070630 5639 14 2.348,8 2.052,6 14,4%3 ZERO F PROD. ANTIFUMO FUTURA SHOP SRL PADOVA 20070119 20070615 589 1 1.775,8 1.506,4 17,9%4 EXPERT ELETTR. ANNIV. GA NON AL. EXPERT ITALY SPA MILANO 20070503 20070526 3039 13 1.622,8 1.466,0 10,7%5 DURACELL CO. PILE GILLETTE DIV.DURACELL MILANO 20070520 20070630 1830 12 1.559,9 1.432,5 8,9%6 EXPERT ELETTR. PRO. GA NON ALIM. EXPERT ITALY SPA MILANO 20070608 20070623 2693 13 1.426,7 1.288,3 10,7%7 EXPERT ELETTR. PRO. GA NON ALIM. EXPERT ITALY SPA MILANO 20070108 20070128 2348 11 1.371,3 1.247,3 9,9%8 GILLETTE FUSION RASOI GILLETTE GROUP IT.SPA MILANO 20070124 20070325 1304 9 1.227,4 1.165,1 5,3%9 ALFA 147+GT PRO. FIAT DIV.ALFA TORINO 20070408 20070514 2118 8 1.192,7 1.085,2 9,9%

10 GILLETTE FUSION CO.RASOI GILLETTE GROUP IT.SPA MILANO 20070422 20070630 1452 10 1.179,1 1.070,4 10,2%11 CALIFORNIA 3 PROD.DIMAGR. FUTURA SHOP SRL PADOVA 20070209 20070629 389 1 1.176,2 956,4 23,0%12 FIAT PRO. FIAT DIV.FIAT AUTO TORINO 20070107 20070120 1466 16 1.175,5 1.089,9 7,9%13 DISCOTECHE RADIO COMM. DISCOTECHE RADIO COMM. 20070101 20070630 1610 3 1.149,5 1.077,6 6,7%14 EXPERT ELETTR. PRO. GA NON ALIM. EXPERT ITALY SPA MILANO 20070316 20070331 2188 11 1.138,8 1.023,7 11,2%15 EXPERT ELETTR. PRO. GA NON ALIM. EXPERT ITALY SPA MILANO 20070216 20070303 2086 11 1.136,3 1.035,7 9,7%16 AGIP YOU & AGIP PRO. CARTE FED. ENI ROMA 20070311 20070405 2260 16 1.090,8 988,0 10,4%17 EURIZON VITA PROG.PENS.BIS EURIZON VITA SPA TORINO 20070606 20070626 1338 9 988,4 892,3 10,8%18 CARREFOUR ANNIV. ALTRI IPER SSC SOC.SVIL.COMM.SRL MILANO 20070423 20070523 1649 13 967,4 863,0 12,1%19 LEGGO QUOT. ED.LEGGO SPA ROMA 20070324 20070610 1718 4 909,7 801,6 13,5%20 FIAT PRO. FIAT DIV.FIAT AUTO TORINO 20070218 20070303 1448 16 886,0 822,4 7,7%

2. Missing Post Analysis

*escluding

italia

5 and M20 data in 2007

07 07 vsvs

0606

Page 45: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

3. Cost per Commercial instead of CPP based on GRP

Fact Fact Radio deals based on cost per commercial

Consequences:Consequences:Qualitative Planning not feasibleOverall campaign performance may be at riskRadio cost efficiency is damaged

VarianceVarianceContacting the right target may cost 3 times more

Page 46: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

3. Cost per Spot instead of CPP based on GRP

Page 47: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

4. # planned stations per flight

FactFactEven robust campaigns (based on at least 10 stations) plan single flights only on 1-3 stations in order to:

-

increase flight impact -

overcome attention threshold

ConsequencesConsequencesHigh Impact and responsiveness on small entity sub-target No evidence of radio effectiveness in tracking studiesOverall target reach at risk

Page 48: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Radio Audit 2005: Car Company Overall Campaign Results

- - - Average + + +

CGRP

Reach

Peak TimeH06-09 + H18-21

Position*

Qualitative idxTo be defined

-22%-22%

-1%-1%

+18%+18%

+8%+8%

Based on 14 Nielsen stations - * first o stand alone positions Pool : Adullts +18 yo – GRP: Adults +18.

Page 49: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

- - - Average + + +

Reach

Peak TimeH06-09 + H18-21

Position

Qualitative idxTo be defined

-17%-17%

+18%+18%

+13%+13%

Based on 14 Nielsen stations - * first o stand alone positions Pool : Adullts +18 yo – GRP: Adults +18.

Radio Audit 2005: Car Company Flight # 1 Results

Page 50: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

- - - Average + + +

Reach

Peak TimeH06-09 + H18-21

Position

Qualitative idxTo be defined

+19%+19%

+25%+25%

-20%-20%

Based on 14 Nielsen stations - * first o stand alone positions Pool : Adullts +18 yo – GRP: Adults +18.

Radio Audit 2005: Car Company Flight # 2 Results

Page 51: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

- - - Average + + +

Reach

Peak TimeH06-09 + H18-21

Position

Qualitative idxTo be defined

+2%+2%

+26%+26%

-1%-1%

Based on 14 Nielsen stations - * first o stand alone positions Pool : Adullts +18 yo – GRP: Adults +18.

Radio Audit 2005: Car Company Flight # 3 Results

Page 52: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

5. Effective reach should be implemented

FactFactReach is often 1+, or 3+.No focused objectives for launch / maintenance campaigns

Consequences: Consequences: -

diminished effectiveness

-

overspending

Page 53: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

5 Guide5 Guide--LinesLines To FineTo Fine--Tune Radio PlanningTune Radio Planning

Page 54: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

5 Recommendations

1. Always check actual communication results 1. Always check actual communication results (post analysis), in order to maintain the requested effectiveness

2. Be prepared to pay a little extra money to get random checks on get random checks on commercial airingcommercial airing. Spending time in efficient planning may be useless if commercials are not transmitted. Benefits are higher than cost

3. Never accept cost per commercialNever accept cost per commercial. Audience, if not available, should be at least estimated

4. To ensure proper support to company goal, evaluate communications results for each planned flight.evaluate communications results for each planned flight.If concentration in few stations still considered suitable, cut by age or geographical areas and then test results with over-sampled tracking studies

5. Effective reachEffective reach is an important asset that makes the difference between radio campaigns and other media: enhance the radio power by making customized making customized reach goals per flightreach goals per flight (e.g.: launch or maintenance, TOM et).Try to work on corridors in order to optimize expenditure.

Page 55: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

..and 3 considerations

Media Auditing take a picture of the reality as it is, in radio planning and buying we have detected:

1. Consistent discrepancy between knowing and doing: strong radio expertise in media agenciesnot always mirrored in media plans-> better, easier procedure to be established -> media planner to be properly instructed

2. Deals often focused on apparent savings:both :- checking commercial airing- basic attention to effectivenesswould improve radio campaign results and get performance higher than expected.

Media Auditors may help

Media Auditors may help

Broadcaster& Agencies

to be committed

Broadcaster& Agencies

to be committed

Page 56: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

..and 3 considerations

3. Media Pitches are setting benchmarksfor media planning and buying

The more auditors and advertisers will include radio in -

pitch exercises and

- cost& quality

guarantees The higher will be radio advertising effectiveness future

The more auditors and advertisers will include radio in -

pitch exercises and

- cost& qualityquality

guaranteesThe higher will be radio advertising effectiveness future

… and differences between Knowing and Doing fade away!… and differences between Knowing and Doing fade away!

Page 57: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Contents

Introduction Media Auditing in a snapshotThe Italian Scenario

The Importance of building and maintaining Pools for radio auditing.

Planning and Buying Radio: Most common Inefficiencies

5 guidelines

-- Auditing the future: key trend

Page 58: ASI 2007 European Radio Symposium - Furlanetto - How auditing radio campaigns helps improve planning and buying efficiency

Future Scenarios

Advertisers are moving towards. Total advertising expenditure control/audit. Consistent and measurable Innovation

Advertisers are moving towards. Total advertising expenditure control/audit. Consistent and measurable Innovation

Media Auditors should step into:. Audited Engagement

(from auditing traditional advertising to auditing all kinds of advertising)

Media Auditors should step into:. Audited Engagement

(from auditing traditional advertising to auditing all kinds of advertising)