MKTG 477 1st Edition Exam 3 Study Guide Lectures 26 38 April 3 2015 Reach Frequency GRP problems handout Media of all the topics covered in this class media tends to be the one most foreign to students even though it appears to be intuitively simple Lingo Reach Gross impressions Frequency GRPs Rating Share Flighting Pulsing CPM CPM TM Up front Scatter Sweeps Spot buys Typical media decisions 1 How can I effectively reach my target market a Matching target markets to media audiences considering costs and relative effectiveness 2 Which media should I use a Media mix proportion of ads placed on in TV radio magazines newspapers outdoors web etc b Considering strengths and weaknesses of each medium 3 Which media vehicles should I use a Vehicles TV programs magazine titles radio shows etc 4 When should I run place my ads a Time of year b Time of day 5 How often should I run place my ads a How many times b Frequency of exposures Media relationships Advertiser Ad agency or media buyer Media representative Reach the number or percentage of homes or individuals from a target market that have been exposed to an ad at least once during a certain time period Unduplicated audience not double counting individuals who have been exposed more than once Expressed as either a raw number number of homes or individuals or expressed as a percent a of the target market April 6 2015 Media part 2 A Reach of households 17 million households B Reach of the target market 17 30 56 7 of the target market was reached at least one time using this media plan C Frequency 29 17 1 7 times D GRP 56 7 x 1 7 times 96 4 GRPs Frequency Of the homes individuals reached frequency is the average number of times they have been exposed to the ad frequency can never be less than one Of those households that were exposed to the ad they were exposed an average of 1 7 times To understand frequency we must first understand gross impressions Gross impressions the total number of exposures in a media schedule o Duplicated audience o 29 million Gross ratings points GRP a summary measure of the intensity of a media schedule GRP Reach x Frequency The GRP figure is a relative number that is influenced by both reach and frequency bigger doesn t always mean better o Consider a GRP of 300 o Reach 100 of the target market 3 times o Reach 50 of the target market 6 times o Reach 25 of the target market 12 times o Reach 10 of the target market 30 times It may be compared to other media schedules generating greater or few GRPs Reach strategy a media strategy that attempts to reach as many individuals or households from the target market as possible Place ads in multiple vehicles multiple times Frequency strategy a media strategy that attempts to reach individuals or households from the target market as many times as possible Place the ad in a couple media running it all the time April 8 2015 Media part 3 Answers to question 2 of handout A B C D 6 million 6 17 35 3 270 35 3 7 6 times 270 Answers to question 3 of handout A B C D E 13 million 13 27 48 1 2 27 7 4 23 13 1 8 times 48 1 x 1 8 86 6 Media concepts Rating the percentage of all TV homes in America tuned to a particular program o of homes tuned to a particular program of TV homes in America o Denominator includes homes with TVs on or off o Sunday Night Football 10 7 rating 12 3 million 114 9 million 10 7 Share of all homes with TVs turned on a specific time share is the percentage of these homes tuned to a particular program o of homes tuned to a program of homes in America with TVs on o Sunday Night Football 17 share 12 3 million 72 4 million 17 17 April 13 2015 Interpreting a rate card Grey s Anatomy P18 persons 18 years old Rate of 2 000 cost of showing one 30 second ad o Rate is a lot less than a national buy Rtg of 10 5 percentage of homes in the Spokane area tuned in to Grey s Anatomy Shr Of 25 percentage of homes in Spokane area tuned into Grey s Anatomy out of those with TVs turned on o Of the homes that have a TV turned on between 9 and 10 o clock on Thursday 25 of those homes were watching Grey s Anatomy Rating Share National example not on rate card TV viewing households millions at 8pm on Thursday o ABC 20 o CBS 16 o NBC 31 o Fox 8 o Others 4 Assume there are 114 9 million households with TVs in America What is ABC s rating o 20 114 9 17 4 What is ABC s share o 20 20 16 31 8 4 25 3 Back to the rate card Designated Market Area DMA 210 in the United States Spokane is the 73rd largest o TV households 426 690 o Percentage of total US households 0 372 426 690 114 700 000 Approximately how many households in the Spokane DMA watch Grey s Anatomy o 10 5 x 426 690 44 802 households How many individuals 82 000 given Share of 25 o 25 44 802 x o Homes watching anything 179 208 CPP of 190 48 o Media cost program rating o 2 000 10 5 190 48 000 of 82 o 82 000 individuals watching CPM of 24 39 o The media cost to reach 1000 customers o Cost of placing the ad in the medium of individuals reached x 1000 o 2 000 82 000 x 1000 24 39 or 2 000 82 April 15 2015 Media 1 What other media concept is a rating equivalent to a Rating of individuals homes tuned into a program of homes with a TV on or off i This is the same as Reach as a percent Reach 2 GRP Reach x Frequency a Reach same thing as rating 3 CPM cost per thousand a The media cost to reach 1 000 consumers i Grey s Anatomy on rating sheet handout 1 2 000 82 000 x 1000 24 39 2 2 000 82 24 39 b Note how the cost to reach 1 000 viewers increases as you refine more narrowly define your target market i e g P25 54 vs P18 on rating sheet 1 2 000 55 000 x 1 000 36 36 4 CPM TM cost per thousand target market a Media cost to reach 1 000 consumers from target market TM i Cost of placing ad in medium of target market individuals reached x 1 000 ii Always going to more expensive than CPM 1 CPM TM CPM 5 Calculate GRP for the following media plan for Spokane market a Target market is Men and Women ages 25 54 b Buy 4 ads on Grey s …