MEDIA BUYING 101 RADIO TV CABLE Presented by: Cyndy Murrieta, BVK October 21, 2014
Nov 22, 2014
SOME TOPICS IN
We’ll cover General Media Terminology
What’s the lingo? How is broadcast planned? Basics of TV, Radio and Cable
TODAY’S PRESENTATION
WHAT IS A RATING POINT?
So, if The Voice does a 5 rating in Orlando with Women 25-54 on one particular night, that means......?
WHAT IS A SHARE?
And so...If Scandal does a 12 share in Orlando with Women 25-54 on one particular night, that means......?
The percentage (%) of the target universe that are watching TV at that moment who are watching that particular show.
1 Share Point =1% of the target universe actually watching TV at that moment
...that 12% of all women 25-54 in Orlando who are watching TV that night are watching Scandal that night.
RADIO AND TVGRPS
Gross Rating Points If we are buying 5 spots in a show that
does a 2 rating, that is 10 GRPs If we are buying 100 GRPs/week for 4
weeks, that is 400 GRPs for the total campaign.
Can the Rating be higher than 100%?No, maximum of 100% of the target audience can watch a program at a particular time
AND THE GRPs?Yes, as a cumulative figure, can easily go above 100
RADIO AND TVREACH AND FREQUENCYREACHPercentage of our target universe that was exposed at least once to an advertising schedule. Usually measured over 1 or 4 week period, and only for the whole campaign, not one station. Measure different viewers with no duplication. Example:
Target Universe = 1,000,000 A campaign achieves 80% reach in 1 week 80% of the target have seen the commercial at least once 800,000 of the target have seen the commercial at least once
FREQUENCYThe average number of times that each person is exposed to a brand’s advertising campaign or schedule. Example:
Average Frequency of 4.0 means that, as an average, every person reached has seen the commercial 4 times.
This is an average, which means that some people have seen the commercial more times, and some less.
IMPRESSIONSTHE GREAT EQUALIZER
Once we know how many GRPs we are buying in a market, and we know the population for our demo, we can calculate the gross impressions
1% of the Population of the target audience in the market x GRPs
There are 426,500 age 25-54 women in Orlando
We reach 1% of that number with 1 rating point, or 4,265
4,265 x our total GRPs in our campaign of 400 = 1,706,000 Gross Impressions
Impressions are the one measurement that can be used across all mediums
RADIO AND TV
Reach X Frequency = Gross Rating Points GRPs / Reach = average frequency Examples:
100 GRPs divided by 33% reach = 3 times average frequency impact
65 reach x 4 frequency = 260 GRPs
BORING MEDIA MATHWe want to reach listeners at least three times, for effective frequency impact.
Knowing our CPP in the market, we can estimate costs for a schedule in that market General rules of thumb that most media planners believe:
You should plan for no less than 100 GRPs/week in a market for TV You should plan for no less than 75 GRPs/week in a market for radio
If TV is in the plan, generally you would price out the TV first before looking at all media allocations because it will gobble up the most money
Variables such as extra promotion can help “fluff up” lower GRP levels
So we know that if a CPP for radio in Atlanta is $325, and we buy 100 GRPs for 4 weeks, that will cost us...?
ENTER STAGE LEFT: THE FLOWCHART
BUT BEFORE WE BUY
First: Quantitative Research A radio ranker of
Orlando stations This lists top 20
stations for Women 25-54
We can have this report run for any combination of dayparts and demographics Example: who
has the top morning drive show?
WE NARROW OUR OPTIONS
QUALITATIVE RESEARCH
Station rankings could change substantially when we add qualitative factors
NEXT:
BUT BEFORE WE BUY TV CAN BE MUCH MORE COMPLICATED
QUALITAP™ Target ProfileATLANTA - Release 1 2013 Feb12-Jan13 ScarboroughQualitative Criteria: Adults 65 +DMA Survey AreaVisited Florida Panhandle (yr)
Profile ranked by index Target Persons Base Persons IndexTypically watched television programs are reality - adventure 8,137 51,028 162Typically watched television programs are sports 41,767 282,172 151Typically watched television programs are Mystery/suspense/crime 37,844 259,406 148Typically watched television programs are national/network news 31,888 224,067 145Typically watched television programs are documentaries 26,622 210,345 129Typically watched television programs are comedies 24,741 207,896 121Typically watched television programs are movies 44,184 400,654 112Typically watched television programs are local news - morning 41,598 384,699 110Typically watched television programs are reality - talent 8,416 83,323 103Typically watched television programs are game shows 17,159 174,265 100Typically watched television programs are local news - evening 42,809 473,971 92Typically watched television programs are dramas 19,312 214,084 92Typically watched television programs are local news - late 17,378 209,558 84Typically watched television programs are science fiction 6,839 85,912 81Typically watched television programs are daytime soap operas 5,293 73,520 73
Programming selection varies substantially by demographic
CABLE BY NETWORKBEFORE WE BUY
QUALITAP™ Target ProfileDALLAS-FT. WORTH - Release 1 2013 Mar12-Feb13 ScarboroughQualitative Criteria: Women 25 - 49 DMA Survey AreaVisited Orlando (yr) or visited other places in Florida (yr)
Profile ranked by index. Target Persons Base Persons IndexWatched We TV (wk) 24,091 70,526 260Watched TCM (Turner Classic Movies) (wk) 26,200 78,828 253Watched Golf Channel (wk) 6,359 22,680 213Watched Hallmark Channel (wk) 35,226 126,031 213Watched FS Southwest/FOX Sports Southwest (wk) 14,229 51,160 212Watched FSN/FOX Sports Net (wk) 14,229 51,160 212Watched Boomerang (wk) 7,820 28,302 210Watched GSN (Game Show Network) (wk) 4,877 17,706 210Watched CMT (Country Music Television) (wk) 16,786 61,037 209Watched AMC (wk) 39,337 147,916 202Watched VH1 (wk) 41,705 167,143 190Watched Spike (wk) 28,593 117,666 185Watched NFL Network (wk) 12,335 51,784 181Watched CN (Cartoon Network) (wk) 15,370 65,795 178
Network selection, and individual programming selection, varies substantially by demographic
RADIO Arbitron was for years the primary
radio research firm but was bought by Nielsen last year
Methodology Diaries in smaller markets PPMs in larger markets
PPMs Portable People Meters Looks like a pager Detects radio stations that PPM
carriers are exposed to Passive data collection, versus
trying to remember what you actually listened to
NIELSEN
RADIO
Dayparts Morning Drive: 6a-
10a Midday: 10a-3p PM Drive: 3p-7p Evening: 7p-12m Overnights: 12m-6a Weekends ROS = run of station
LINGO - DAYPARTS
Primetime for radio is 6am-7pm
RADIO
Radio is purchased in Nielsen-designated metro areas.
There are 302 radio metros in the U.S. Most radio metros cover two to four
counties Some rural areas of the U.S. are not in
radio metros. Those areas are called “non-metro.”
LINGO - GEOGRAPHY
QUESTION:WHO CAN GUESS WHAT RANK ORLANDO IS?
NIELSEN RADIO MARKETRANKINGS
Radio metro covers Orlando; Daytona, Melbourne, etc. are separate radio metros.
RADIO
AC = adult contemporary CHR = contemporary hits Hot AC, Jack, Alice, etc. Rhythmic CHR (includes HipHop,
Rap) Urban Contemporary Country, Young Country, Modern
Country, Classic Country Rock, Album Rock (aka AOR),
Classic Rock, AAA, Alternative News/Talk, Talk, All News Christian – music, ministry,
gospel Classic Hits, aka Oldies
LINGO - FORMATS
QUESTION:What is the top radio format in the US?
HISPANICFORMATS
There are about 15 Hispanic radio formats, including;• Mexican Regional• Spanish AC• Pop• Spanish CHR• Rhythmic• Reggaeton• Rhythmic Crossover • Caribbean Tropical• Tejano
• Popularity of formats varies widely by region
RADIO
Young audiences CHR, Mix, Alice, Jack, urban, rock
Females CHR, AC, Mix
Males Rock, classic rock, sports talk
Broad reach Country
Older listeners AC, classic hits, news/talk, talk
Niche Fine arts/classical Christian/various religious National Public Radio (underwriting
mentions only)
TARGETING BY FORMAT
RADIO
Bigger the market, higher the CPP Different target demos, different CPPs CPP varies by daypart. Drive times
cost more. Weekends and evenings cost less.
Examples from SQAD, our cost per point service Orlando: Adults 25-54, AM Drive:
$162 Chicago: Adults 25-54 PM Drive:
$642 NYC: Adults 25-54, AM drive:
$1,188 Daytona Beach: Adults 25-54, PM
Drive: $53
SQAD CPPs are usually very high; radio is usually somewhat negotiable
PRICING, COST PER POINT
RADIO
“Tight market” = not much availability, high prices. Typically Apr-Jun and Nov-Dec. Prices are high during these times.Political campaigns could affect demandLow-demand periods – usually first quarter, January through early March. Prices are negotiable in low-demand periods.Demand periods vary by market
Jan-Feb – low demand in cold weather markets
Jan-Feb – could be high demand in destinations that have seasonal population fluctuations
PRICING, SUPPLY & DEMAND
SPOT RADIO VS.
Spot – specific markets, stations individually purchased, or purchased in ownership groups.
Local networks – typically news/weather/traffic networks
Regional – statewide networks, agricultural networks, sports
National – coast-to-coast coverage, such as ABC Radio Networks, Westwood One, Siriux/XM
RADIO NETWORKS
RADIO
Strong medium for promotions Live endorsements are a possibility Nimble with messaging/creative Frequent, loyal listening can lead to
high frequency impact Emotional connection to listeners Works well in conjunction with other
media – digital, TV, print, etc. Low production cost compared to
many other media. Stations will often produce spots at no charge, if we supply a script.
WHY RADIO?Radio reaches
91% of Americans 12+
every week
TELEVISION
Nielsen is the primary TV research firm
The world’s largest market research firm
It’s spelled N-I-E-L-S-E-N Methodology
Diaries in smaller markets Meters and diaries in medium-size
markets LPMs in larger markets
LPMs Local People Meters Passive viewing measurement,
similar to Arbitron’s PPMs Since Nielsen recently purchased
Arbitron, it’s expected that very soon the PPM and LPM technology will merge
NIELSEN
TELEVISION
Dayparts Early Morning: 6a-9a Daytime: 9a-3p Early Fringe: 3p-5p Early News: 5p-6:30p / 6p-7:30p Prime Access: 6p-7p / 7p-8p Prime Time: 7p-10p / 8p-11p Late News: 10p-10:30p / 11p-11:30p Late Fringe: 10:30p-12m / 11:30p-1a Overnight: 12m-6a / 1a-6a Weekend a.m. news: 6a-11a
Daypart definitions change by time zone
LINGO - DAYPARTS
Definitions are a little loose.
Early news can run at 4p, early morning can start at 5a, Late fringe can start at 11pm on
stations with no 11pm news, etc.
TELEVISION
TV is purchased in Nielsen-designated DMAs – “Designated Market Areas”
DMA essentially means “this is where you get your TV from.” For example, Wilmington, Delaware is in the Philadelphia DMA.
There are 210 TV DMAs in the U.S. TV DMAs can range from just one or two
counties (St. Joseph, MO) to entire states (Salt Lake City, UT).
LINGO - GEOGRAPHY
WHO CAN GUESS WHAT RANK ORLANDO IS?
NIELSEN MARKETRANKINGS
TV DMA covers 9 counties, Orange, Seminole, Osceola, , Flagler, Volusia, Brevard, Lake, Marion, and Sumter
HOW ABOUT FOR HISPANIC MARKET RANKINGS?
TELEVISION
Network – usually refers to national networks, such as NBC, CBS, ABC, Fox
Regional networks – typically sports networks
Spot – runs in one market A spot that runs on the CBS affiliate
in Indianapolis is not a “network spot.” More correctly, that’s a spot that ran on a “network affiliate.”
SPOT VS NETWORK
TELEVISION
Many options, much more refined targeting than radio
Local stations have limited avails in prime time and other network-feed areas, which often leads to high prices.
Local programming, such as news areas, usually has much more inventory and rate flexibility.
Questions to be addressed: Does this program reach the right demographic? What is the tone of this program? Is it correct for
what we’re selling? Is it image-appropriate? Are we paying an efficient rate to be in this specific
show?
TARGETING BY PROGRAM
Sunday Night Football was the
top rated show on broadcast TV
last week. Who can guess the
top rated sitcom last week?
TELEVISION
“Tight market” = not much availability, high prices. Typically tight during ratings sweeps periods, when the best new programming is on: May and November. Political seasons can be HELL to local TV marketsInventory can also be tight in September-October, when the new shows are rolled out, and December, prior to holidaysOther sweeps: February and July.Low-demand periods – usually first quarter, January through early March, and summer, June through August, when lots of reruns are aired. Prices are negotiable in low-demand periods.
PRICING, SUPPLY & DEMAND
TELEVISION
Bigger the market, higher the CPPDifferent target demos, different CPPsCPP varies by daypart. Prime time costs the most. Late news can often be pricey. Early morning, daytime, and early fringe cost less.Examples from SQAD, our cost per point service
Orlando: Late News $560New York: Prime $5,696Chicago: Early News $1,059Kansas City: Prime $311
SQAD CPPs are usually very high; TV is usually somewhat negotiable
PRICING, COST PER POINT
TELEVISION
TV avails – essentially, a menu of what’s available, listing costs and projected ratings per spot
I usually ask for a proposal as well for the rep to give it their best shot
We negotiate down to a level that will run. . . . . . because if we negotiate too low, our
spots will get bumped out by advertisers who pay higher rates for that time.
Work on the buy in our media software system (Strata) to finesse all the stations submissions to meet the “specs” of CPP and total GRPs
BUYING PROCESS
TELEVISION
Reps contact buyer regarding preemptions – spots that didn’t run sports programs that ran long weather bulletins other advertisers willing to pay more
for the time We negotiate make-goods – equal or
better programs and ratings to make sure we deliver GRPs and impressions in the end
POST-BUY
TELEVISION Vivid imagery – color, sound, motion A strong direct response medium – you
can see the URL or phone number Wide array of programming selections
= high degree of target-ability Good creative can lead to strong
viewer engagement TV remains the #1 influencer across
the purchase funnel
WHY TV?
Source: TVB/The Futures Company; “Purchase Funnel 2012”
CABLE TV
Nielsen is “challenged” by cable measurement.
Many individual shows do not meet minimum reporting standards; it is difficult to obtain viewership data.
Cable “footprint” does not match TV DMA, making ratings calculation difficult – leading to “Cable DMA” ratings.
MEASUREMENT
CABLE TV
Dayparts Same as TV Cable prime time ROS is 6p-12m.. Cable is often sold on a broad rotation
basis. Limited local avails make it difficult to
purchase specific shows.
Interconnect – a consortium of local cable operators. Example: the cable operator that covers the east side of town, purchased in conjunction with the operator that covers the west side.
LINGO
Comcast just bought Time Warner Cable.
CABLE TV
National network – runs nationwide on networks such as USA, A&E, ESPN
Regional networks – typically sports networks; occasionally news networks
Spot – runs in one market Cable networks are always referred to
as “networks” rather than “stations”
SPOT VS NETWORK
Targeting by Program Great way to target specific
audiences Local operators have limited avails. It can be very high CPPs to buy
individual shows, especially if they’re top-rated.
Cable operators often sell in broad rotations, to help with inventory issues.
WHY CABLE?
Who can guess the top ad-
supported rated cable
program last week?
CABLE TV
Spot cable CPPs are usually much higher than broadcast CPMs. . .
. . . But there are several reasons why we buy local cable:• Lower out-of-pocket cost can lead
to greater frequency impact• Can target specific neighborhoods• Niche networks or programming
can be a good fit• If broadcast availability is tight,
cable can be a reasonable alternative
PRICING, WHY BUY LOCAL?
SO..... Ideation: Decide on ideal media mix based on goals and strategy
Costing: If broadcast is on the plan, price out TV and
radio first
Allocate: Determine what other media should bring to table and
allocate budgets for each
Develop: Think about how you should maximize each medium
(tactics, meet with various vendors to explore options)
Finesse: Finalize to budget goal, ensure final plan is on strategy,
obsess about flowchart and formulas
THIS is the part that takes the longest and where the creativity comes in!