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Audience Measurement and programme Ratings
PREPARED BY: ABDUL MATHEE FEBRUARY 2016
BROADCASTERS VIEW
Audience Measurement and programme Ratings
BROADCASTERS VIEW
The doyen of black broadcasters, King Edward Masinga
One of three SABC Mobile Recording Units, which accompanied the South African troops to North Africa, during the second World War
MEDIUM SALES RESEARCH ADVERTISER AUDIENCES
RADIO
1 May 1950
Springbok Radio made
its first broadcast.1952,
SPRINGBOK RADIO
WAS BRINGING IN R
MILLIONS WORTH OF
ADVERTISING
REVENUE.
THE FIRST NATIONAL
MARKET RESEARCH
SURVEY INTO A RADIO
STATION WAS DONE IN
1952, TWO YEARS AFTER
THE BIRTH OF SPRINGBOK
RADIO
FIRST COMMERCIAL EVER TO BE BROADCAST ON THE SABC RADIO WAS A TEN WORD SLOGAN FOR EDBLO MATTRESSES ON SPRINGBOK RADIO
SPRINGBOK HAD 632 000 ADULTS LISTENING TO IT ON AN AVERAGE DAY – AT THE HEIGHT OF ITS POPULARITY, IT HAD AN AUDIENCE OF OVER TWO MILLION!
TV
1 JANUARY 1978
THE SABC INTRODUCED
TV COMMERCIALS ON.
OVERNIGHT AUDIENCE
DATA IS AVAILABLE ON TV
PLATFORMS
JUST AFTER 18:00, THE FIRST EVER 30 SECOND TV COMMERCIAL FOR BIG T BURGERS WAS FLIGHTED ON SABC TV
SABC called for tenders to bid for the first slot.
4
Audience Measurement and programme Ratings
JOURNEY OF SA RADIO
0%
20%
40%
60%
80%
100%
120%
140%
1940 1950 1960 1970 1980 1990 2000 2010 2020 2030
% Share
Linear (% Share)
BROADCASTERS VIEW
Challenges with reliable measurement and ratings data
PROGRAMME
TIMEBAND S1 18:30 S1 18:30 S2 21:00 S2 21:00
D.O.W TVR CPP TVR CPP
Mon 15,8 7344 18,5 8892
Tue 20,6 7479 18,1 9136
Wed 16,7 7396 15,7 10185
Thu 19,4 7998 14,7 10975
Fri 15,1 8290 15 10856
SKEEM SAAM MUVHANGO
Average %AR Deviation -27%
Average CPP Inflation -11%
Average
%AR
Deviation
-19%
Average
CPP
Inflation
-18%
SOURCE: AMPS
In the 12 years, since 2001, significant upward mobility is evident. In the 2013A report some 61% of the Adult population resides in the upper LSM 6+ segment, compared to only 35% in 2001. Notably the most disenfranchised LSM 1-2 segment has dwindled to below 5% of the Total Adult Population. Good news for the economic prognosis of South Africa is continued strong growth in the Upwardly Mobile LSM 6/7 sector. The LSM trends encapsulate the basis for a variety of phenomena evident in shifts in media consumption and adoption of increasingly more sophisticated lifestyles and purchase behaviour overall.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2001 2005 2007B 2010A 2012A 2013A
24.5 19.3 13.9 8.7 5.5 4.4
40.741.6
39.137.8 36.7 34.4
18.5 22.026.6
30.2 34.3 36.3
16.3 17.1 20.4 23.3 23.5 24.9
LSM 8-10
LSM 6/7
LSM 3-5
LSM 1/2
% Adults
Adults (000s): 30,656 31,109 34,018 34,934 37,214
BROADCASTERS VIEW
Challenges with reliable measurement and ratings data (LSM Trends 2001 to 2013
Disparity between the weightings
Affluent vs lower income levels:
•A single panel member in an affluent target group could be weighted to represent 6,000 viewers in the TV Universe, whilst a panel member in a low income group could be weighted to represent as many as 99,000 viewers.
•Weightings per panel member were 'capped' at 99,000. As such a potential for lower income groups to be under-read which worsened as the TV Universe grew YOY.
TAMS RESEARCH :
Challenges with reliable measurement and ratings data (Issues Uncovered by the TAMS Audit)
Source: SABC Pricing Grid
9
Importance of Ratings for Revenue Generation
BROADCASTERS VIEW
FORMULAE
Base CPP/CPT/CPM AR/Share Rate
INFLUENCES
Demand Demographs Seasonality
EXTERNAL FACTORS
Media Inflation Fragmentation
What
HOW
HOW
IMPORTANCE OF RATINGS FOR REVENUE GENERATION
Trading Models
FIXED RATES OR RATINGS AUCTION &
SCATTER STATION PRICE
COST PER SHARE MODEL
COMPETITIVE CHERRY PICK DEALS
Marketing to Niche audiences is expensive.
Audience fragmentation
Demand for premium spots impacts inventory and revenue
INTERNALLY
Equilibrium price
Less flexibility: need to compensate for errors
Inventory – purely based on negotiation power
Requires schedule stability
COMPETITIVE AUDIENCE DEALS
Packaging strategy: Ability to offer niche audience market offering
with low wastage to advertisers.
Inventory on terrestrials channels limited to available ratings
Predictive Modeling
Difficult to forecast: Skills needed
Audience Guarantees: Risk of running out of Ratings
Predictive modelling can become very labour and statistically
intensive require vast amounts of resource.
Create a database of trends. (i.e. by Genre and audience profile).
Spot v Audience Selling
Importance of Ratings for Revenue Generation
ADVERTISERS AND MEDIA AGENCIES
Push for lower CPP’s/CPT’s
Demand forecasting
Audience forecasting
Price linked to universe / CPT
Flexibility on inventory management
INTERNALLY
Less criticality to forecast audiences accurately
No audience guarantee
Advertisers feel in control, especially for effective reach
Push for higher discounting
WO
RK
S B
EST
WIT
H: A
UD
IEN
CE
& S
TATI
ON
AV
ERA
GE
PR
ICE
WO
RK
S B
EST
WIT
H: C
HEE
RY
PIC
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PO
T B
UY
ING
SPOT vs. AUDIENCE DEALS) STATION /SHARE PRICE AUCTION / SCATTER
Reactive Value Demand
Proactive Value Creation A period during which inventory is sold
on spot basis, in bulk with ratings
guaranteed
Value Proposition Dissemination
Proactive Value Demand Identification
TRADING MODELS
12
Audience Measurement and programme Ratings
BROADCASTERS VIEW
Electronic “stock-market” model
based on eBay approach
Inventory is sold on spot or
audience basis,
MODELS SELLING SPOTS
Ratings not guaranteed
MODELS SELLING AUDIECES
Ratings guaranteed
Electronic “stock-market” model based
on eBay approach
Continue the Brand/Content discussion across radio stations the next day via Live reads etc.
Audience Measurement and programme Ratings
INNOVATIVE SOLUTIONS
Brand integration across platforms.
Commercial is replicated across platforms
Instantly start the social media conversation, by being
exposed to the story line in advance.
INTERGRATED MEDIA
V.O.D / MOBILITY
ON DEMAND
CONTENT CONSUMTION ON THE GO
INNOVATION
USER GENERATED CONTENT
FIXED PLAYLISTS STREAMING
AUDIENCE MEASUREMENT IN A DIGITAL AGE
…Creating an environment for a sustainable future
TV VIEWERSHIP RADIO LISTENING
STRATEGIC PARTNERSHIPS