Media concepts

Media Terminologies: Definition & Calculation

By Prof Indrani Sen

SIMC20/7/11

Media Concepts

• Universe• Reach• Maximum Possible

Reach• Readership• Viewership• TRP/ TVR• GRP• CPRP• CPT

• Gross Reach• Net Reach• OTS• Effective Frequency• Effective Reach• Share of Voice• Share of Spends• Media Weights

The universe

• The Total/Actual number of people in a defined target audience

MPRMaximum Possible Reach

• Maximum % of Target Audience reached by any particular medium

Print Reach

• Readership of a particular Press Vehicle as % of Target Audience who read any print vehicle

Or % of Target Audience/ Universe reached by

any particular print vehicle

Gross Reach

• It is mathematically equal to the number of insertions/ spots per vehicle multiplied by the reach in numbers of that particular vehicle

• Hence this may count each individual more than once

Net Reach

• It is equal to the total number of individuals reached after eliminating duplication

OTS : Opportunities To See

Equals Gross Reach in numbers divided by Net Reach Reach in numbers

OTS = Gross Reach (‘000s) Net Reach (‘000s)

Gross Reach, Net Reach, OTS

Wwomens Era (1)Wwomens Era (1) Femina (1)Femina (1)

20,00020,00020,00020,000 30,00030,000

Gross Reach in numbers Gross Reach in numbers = ?= ?Net ReachNet Reach = ?= ?OTSOTS = ?= ?

Gross Reach, Net Reach, OTS

Wwomens Era (1)Wwomens Era (1) Femina (1)Femina (1)

20,00020,00020,00020,000 30,00030,000

Gross Reach in numbers Gross Reach in numbers = 90,000= 90,000Net ReachNet Reach = 40,000 + 50,000 - 20,000 = 70,000= 40,000 + 50,000 - 20,000 = 70,000

OTSOTS = 90,000 / 70,000 = 1.29= 90,000 / 70,000 = 1.29

CPT

Cost per every thousand Target Audience reached

TV Reach / Coverage• 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

• n+ reach is the % of the universe who have seen the ad n or more times

Calculation of TV Reach

Universe: 10 individuals

For a single episode of Kyun ki Saas…, if out of the above 10 people 6 saw atleast 1 minute of the programme then,

Reach is 6 out of 10 = 60%

Variations of the TV Reach

• Gross Reach

• Net Reach

• Cumulative Reach

Gross Reach in TVGross Reach = Summation of all audiences who

have been exposed to the vehicle

Week 1 : 1000

Week 2 : 2000

Week 3 : 1500

Week 4 : 1200

Hence, Gross Reach = ?

1000+2000+1500+1200=5700

Net Reach in TV

• Week 1 : 1000 -- 1000

• Week 2 : 2000 (300) 1700

• Week 3 : 1500 (900) 600

• Week 4 : 1200 (1000) 200

Net ReachDuplicationGross Reach

1000+1700+600+200 = 3500

Hence, Net Reach of 4 weeks= ?

Cumulative Net Reach

• Principle : Audiences accumulate over time

• The number of individuals within the TG who are

exposed to the medium/vehicle over a certain

period of time

Calculation of the Net Reach build-up

• Week 1 : 1000 -- 1000

• Week 2 : 2000 (300) 2700

• Week 3 : 1500 (900) 3300

• Week 4 : 1200 (1000) 3500

Net Reach build upDuplicationGross Reach

Cumulative reach over 4 weeks

Opportunities to see in TV

• OTS describes the number of times on an average a viewer sees the ad

Calculation of Average OTS

Spot 1KBC

Spot 2Heena

Spot 3News

50% see ad in total. 10% see ad twice. AOTS = Gross reach / Net reach

= 60 / 50 =1.2 Average O.T.S

Reach30%

Reach20%

Reach10%

Average Time Spent

• Principle : Different individuals within the

TG spend different amount of time on a

vehicle

Two concepts :

• Average Time Spent Per Universe

• Average Time Spent Per Viewer

Average Time Spent Per Viewer

Total time spent by all viewers / Reach

Average Time Spent Per Universe

• Takes into account both viewers and non-viewers

• Principle : Different vehicles have differing reach

• Total Time Spent / Universe

ChannelAvgMins {Universe}

AvgMins {Viewer}

Reach OOOs

Star Plus 1056 1135 10314

Sony 739 807 10157

Zee TV 358 401 9904

Total ( Any Channel) 6910 7112 10773

Universe : 11089000

Calculation Explained

Average Minutes (viewer) =Total Viewing Time / Reach

= (1056 x 11089000) / 10314000= 1135

Average minutes ( universe) = Total Viewing Time / Universe can be calculated similarly

Is there a term that encompasses both Reach and Time Spent ?

Yes, it is TVR or TV Viewrership Rating

TRP has been replaced by TVR

TRP: % of Target Audience in a particular market who have viewed any particular episode of a TV programme (0nly Reach)

TVR: % of Target Audience in a particular market who have viewed any particular episode of a TV programme for at least one minute

(Reach x Time Spent)

TVRs v/s Reach

A B C D E

1 X X

2 X X X

3 X X X

4 X

5 X X

Individuals

Min

ute

s

TVRs v/s Reach

• People who saw the programme for at least 1

continuous minute :

A + B+D+E =4

Therefore, Reach=4/5

Reach=80%

TVRs v/s Reach

A B C D E

1 X X

2 X X X

3 X X X

4 X

5 X X

Individuals

Min

ute

s

TVR vs ReachPerson Minutes Viewed Minutes Available

A 3 5

B 1 5

C 0 5

D 2 5

E 5 5

5 (i.e., A+B+C+D+E)x 100

TVR = On an average 44% of universe of the TG saw the entire time band of 5 minutes

TVRs :(3/5)+(1/5)+(0/5)+(2/5)+(5/5)

TVRs v/s Reach

A B C D E

1 X X

2 X X X

3 X X X

4 X

5 X X

Individuals

Min

ute

s

The other way of looking at TVRMinute No. of viewers Total viewers

1 2 5

2 3 5

3 3 5

4 1 5

5 2 5

5 (mins )x 100

TVR = 44% of universe of the TG saw the programme on an average per minute

TVRs :(2/5)+(3/5)+(3/5)+(1/5)+(2/5)

Difference Between Reach & TVR• Reach: Just a count of no. of people meeting the criterion

of viewership threshold (e.g. 1 min)

• Rating : Count of no. of people meeting the viewership threshold criterion

PLUS

Proportion of the total time consumed OR

Count of people watching a programme / channel on an average per minute

Why look at both Reach & TVR ?

• If Reach is much higher than TVR ?– It implies that viewers are watching the

programme but switching channels more frequently……….seen in case of movies

• If programme TVR is close to Reach ?– It shows higher viewership loyalty………seen in

case of premiere serials like Kyunki Saas…..

What is Channel Share ?

• What percentage of total viewing time a particular channel is watched

• Indicates how much a channel is watched

• Higher the channel share greater the probability of commercials been seen in the channel

Revisiting TVR !!Person Minutes Viewed Minutes Available

A 3 5

B 1 5

C 0 5

D 2 5

E 5 5

5 (i.e., A+B+C+D+E)x 100

TVR = On an average 44% of universe of the TG saw the entire Time band

TVRs :(3/5)+(1/5)+(0/5)+(2/5)+(5/5)

The other way of looking at channel share

• We have seen TVR of a channel =

Total viewing time / ( Total universe X Total duration )

• TVR of Star Plus = S • TVR of all channels = T• Channel Share of Star Plus = S / T

= Total viewing time of Star Plus / Total viewing time of all channels ( total universe & total duration being common factor cancels out )

• Channel Share also indicator of how TVR of Star Plus compares with respect to total TVR of all channels

Gross Rating Points (GRPs)

• The sum of all ratings (TVR) 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

Our commercial appeared in the following programmes:

Programme Rating

X 32

Y 21

Z 18

A 24

B 15

110

Gross Rating Points (GRPs)

Normalization of GRP• Usually done for 30 seconds or 10 seconds

• The aim here is to find out, if my total GRP with 10 six-second spots is xxx, what will be the GRP equivalence of spots of 30 second duration

• Just a reminder, that the reach is defined at 1 minute level and hence a TVR will be read as audiences on an average that are available for that MINUTE– i.e., reach weighted by the no. of seconds spent by viewers that minute

Normalization TVR Dur

(Secs)0.32 601.21 600.23 600.5 600.5 600.32 601.21 600.23 600.5 600.5 60

GRP = 5.52 for the above 10 spots which represent 10 different

minutes

Normalization• Hence in every minute in which these 60 seconders appeared, there were on an average audiences of 5.52/10 = 0.552 for the whole minute for each spot ie. GRP per spot is 0.552

• To find out if there were only 30 second spots, the entire duration of all the spots will have to be summed and divided by 30 to get the number of spots, hence 60/30=2 spots in the above case

• Since we already know that the per spot GRP is 0.552, multiply 0.552 by 2 (no.of spots) to find out the GRP for 30 seconders = 0.552*2 = 1.10

CPRP (Cost per Ratings Point)

CPRP = Cost / GRP ( how cost effective is the buy to generate GRP )

CPT (Cost per 000s Audience)

CPT = Cost / (TVR * Universe in 000s) ( how cost effective is the buy in reaching out to more viewers )

Effective Frequency

Number of times an individual needs to be exposed to a communication in a fixed time frame for him to react in a desired

way

Example : Effective frequency of 5+ means reaching an individual at least 5 times

Factors determining effective frequency

• Proposition - New/Old• Product life cycles stage• Message -

Simple/Complex

• Audience - Receptive/Non-receptive

• Attitude - Reinforce/Change

• Brand image in relation to competition - Strong/Weak

Factors determining effective frequency

• Creatives - Existing/New

• Market clutter - Low/High

• Category clutter - Low/High

• Mixed-media support - Low/High

• Brand Consumption: Low/High

• Brand value perception: Low/High

• Brand switch: Low/High• Residual awareness:

Low/High• Awareness - Low/High• Marketing imperative -

Defend/Attack• Brand share - Low/High

Effective Reach

% of Target Audience who have been reached at least Effective Frequency

number of times

Example : If 50% have been reached at least 5 times, then 50% is the Effective Reach at

5+

Typical Reach Distribution

0102030405060708090

1+ 2+ 3+ 4+ 5+ 6+ 7+ 8+ 9+ 10+

Effective Frequency

%Rch

SOV : Share of Voice

GRPs for a particular brand expressed as a percentage of the GRP for the defined category

Example : GRPs for Coke in May = 1000GRPs for the Soft Drink Category in May = 4000

Hence SOV for Coke = 1000 / 4000 = 25%

SOS : Share of Spends

Spends for a particular brand expressed as a percentage of the Spends for the defined category

Example : Spends for Coke in May = Rs 3 Crores Spends for the Soft Drink Category in May = Rs10 cr

Hence SOS for Coke = 3 / 10 =30 %

Media Weight Setting

Primary role of the media function

Reach specific number of people specific number of times

Number of people refers to “How many ?”Number of people refers to “How many ?”Number of times refers to “With what impact ?” Number of times refers to “With what impact ?”

Basic Basic constituentsconstituentsof Media of Media WeightsWeights

Thank You.