Bus 50 Advertising for Small Business
Class Session #3

Measuring Efficiency and Effectiveness in Advertising Media


Measurements of efficiency & effectiveness for advertising media.
Media Costs - determined by potential audience exposure, + supply & demand.
Audience Size - measured by exposure (potential to see or hear it)

Broadcast measures

  • ratings, tv = % of all households with tv's (whether on or off) watching show.
  • ratings, radio = % of all people with radios on or off, listening to station.
  • share, TV % of only households with TV's on, watching show.
  • share, radio - % of all people with radios on, listening to the show.
  • reach - % of the total audience exposed to the message at least once over a relevant time period; aka market penetration not counting duplication.
  • HUT - Households Using Television (with the TV on)
  • PVT - People Viewing Television

 

Print measures - generally measured by a count of the circulation and copies printed.

  • distribution/circulation (different businesses may measure differently)
    • # printed
    • subscribers (mail, carrier)
    • newsstand
    • mailed, handed out, posted
  • passalong = average # of people reading a single copy.
  • drive by/walk by

Media Measures

  • INSERTIONS - each single buying of media time or placement for one ad.
  • GROSS IMPRESSIONS - total number of times the ad(s) are seen/heard in a relevant period of time counting every duplication.
  • FREQUENCY - repetition of the message to the average audience member over a time period. (G.I./Reach)
  • DUPLICATED VS. UNDUPLICATED REACH - audience penetration planned to so that it does or does not have audience frequency/repetition.
  • Rating = HUT watching your show/Total HH's
  • Share = HUT watching your show/HUT
  • GROSS RATINGS POINTS - overall measure of a campaigns impact:
    R x F = GRP's or Sum of all rating points
  • C.P.M. (cost per thousand) - allows comparison of differing media.
    CPM = cost of the insertions/# of HH's (or circulation) x 1000
  • C.P.P. (Cost per Point, aka, cost per rating point or CPRP) where point equals 1 rating point)
    CPP = Total Cost (budget)/GRP's

Example

In San David County there are 10200 HH's; 10,000 with televisions with an average of 2.5 people per HH.

You run an ad on KSBW TV once a week for 4 consecutive weeks. Each week it gets a rating of 10. For weeks 2 & 3 one half the audience is duplicated each week (regular viewers each week) and the other half is new viewers that week. In week 4 one half the audience is seeing the ad a second time and the other half (the regular viewers) is seeing the ad for the 4th time. The cost of the campaign is $400.

The four week media plan is:
medium rating wk1 rating wk2 rating wk3 rating wk4
KSBW TV 10 10 10 10

1. How many insertions are there in this media plan? ______________

 

2. What is the reach for this media plan? ______________

 

3. A rating of 10 is how many HH's? ______________

 

4. If week 1 has a rating of 10 and there are 6,000 HUT's, what is the share for that ad insertion? ______________

 

5. How many gross impressions for this media plan? ______________
Note: for TV you typically measure in HH's not PVT

 

6. What is the frequency for this media plan? ______________

 

7. What are the GRP's for this media plan? ______________

 

8. A rating of 10 is how many PVT? ______________

 

9. What is the CPM for this media plan? ______________

 

10. What is the CPP for this media plan? ______________

 

 

 

 

 

Example Solution

In San David County there are 10200 HH's; 10,000 with televisions with an average of 2.5 people per HH.

You run an ad on KSBW TV once a week for 4 consecutive weeks. Each week it gets a rating of 10. For weeks 2 & 3 one half the audience is duplicated each week (regular viewers each week) and the other half is new viewers that week. In week 4 one half the audience is seeing the ad a second time and the other half (the regular viewers) is seeing the ad for the 4th time. The cost of the campaign is $400.

The four week media plan is:
medium rating wk1 rating wk2 rating wk3 rating wk4
KSBW TV 10 10 10 10

1. How many insertions are there in this media plan? ______4_______

1 each in four weeks formula: add insertions

2. What is the reach for this media plan? ____20________

10 + 5 + 5 + 0 = 20 formula: is add unduplicated reach

3. A rating of 10 is how many HH's? ______1,000___

.10 x 10,000 = 1,000 formula: rating % x TV HH's

4. If week 1 has a rating of 10 and there are 6,000 HUT's, what is the share for that ad insertion? _____16.67____

1000 HH's/6,000 TV HH's formula: is # of veiling HH's / HUT's

5. How many gross impressions for this media plan? ___4,000_____
Note: for TV you typically measure in HH's not PVT

4 x 1000 = 4000formula: is total of duplicated reach

6. What is the frequency for this media plan? _____2.0______

4000/2000 = 2.0 formula: Gross Impressions/reach

7. What are the GRP's for this media plan? _____40_______

20 x 2.0 -OR- 10+10+10+10 = 40 formula: R x F or Sum of ratings

8. A rating of 10 is how many PVT? _____2,500___

1000 x 2.5 = 2500 formula: viewing HH's x average people per HH

9. What is the CPM for this media plan? ____$200______

$400/2000 x 1000 = $400 in HH's (note 400/(2.5x2000) = $0.08 per person)
formula: total cost/viewing HH's x 1000

10. What is the CPP in HH's for this media plan? ___$10________
(Note: aka CPRP)

$400/40 = $10 formula: total cost/GRP's